“Nearly all of the biggest challenges in America are, at some level, a housing problem. Rising home costs are a major driver of segregation, inequality, and racial and generational wealth gaps.“
The ultimate irony of that is housing prices started their run after the government got involved to help increase home ownership. That was the stated purpose of created Freddie/Fannie and increasing mortgage term from 15 years to 30 years. They’ve been trying for almost 5 decades now. The only time home ownership rates increased was right before the Great Recession when lending standards were destroyed. We all saw how that ended. All that Fannie/Freddie have accomplished is inflating home prices to make Americans home debtors instead of home owners.
It also created a boom in local property taxes collected. I’m sure people will point to prop 13, but even with that property tax revenue growing at 5%+ a year. Property tax revenue has grown faster than income tax revenue since prop 13 was passed.
Now we look for the government to solve another government created crisis. I’m sure people will be shocked when government solutions only make it worse. Maybe some day people will realize government is the problem and the areas where inflation is highest (housing, healthcare, and education) have such high inflation because of the government. I’m not hopeful, so I expect more “solutions” that increase the problem.
You have already lost the battle of the mind when you accept and use the language proposed by your adversary.
One word from that language is the “housing crisis”. Just a few days ago I argued there is no housing crisis in California. The housing market in California is healthy. Anyone willing to pay the right price can find a home. Home Prices are expensive in the Bay Area. But, that is all. An expensive home does not mean a crisis.
I hope the residents of the CA will vote out the state legislatures and the governors before they are able to cause irreversible damage to the state.
When the transfer of Hongkong to China was announced, a lot of rich people started selling their ownership in Hongkong and buying in places like Vancouver, BC.
15 min later: I have not been to those neighborhoods in Vancouver. But, I have heard that many homes bought by rich from China/hongkong remain empty. They do not care about the rents. Safety of asset is more important.
Don’t know about Vancouver. In Singapore, those huge bungalows owned by rich mainland Chinese only few Singaporeans can afford are vacant. Anyhoo, a few rich Singaporeans bought many houses/ condos for their parking lots to park their prized sport cars. Where I am staying now, a few SFHs are vacant, they are bought by rich mainland Chinese as vacation homes.
So? Are you there yet? How many $M to go? @wuqijun could be ahead of you, possibly attain the target already.
For a family of 4 members, only need $26M, less than an UHNWI. Billionaires should define an Atherton within Atherton so as not to be associated with those working millionaires.
So disappointed with those Atherton guys, thought they are very rich, only so-so.
As of 2018, the UHNWI population was 226,450, up from 172,850 in 2015, a number 70% higher than a dozen years earlier. Some 2,170 of these individuals have more than $1 billion, an 85% increase over the number of billionaires in the previous decade.
Among families with more than $200 million in assets, only 20% give their financial advisers full discretion to make portfolio changes; 44% give limited discretion, and 36% gave no discretion to their advisers and portfolio managers.
So I’m rich but no rich enough to still be rich in the next severe bear market. Unless it’s bad enough to lower the bar for rich.
Surprised to read that ultra-rich is only 5x rich. Thought it would be 10x or even 100x. Kind of disappointing. If it was 10x or 100x I wouldn’t feel so bad about being risk-averse because the title would have been unobtainable anyhow. But 5x - being obtainable - causes me some regret. But just a little
I’m in the 6 range, a bit higher w/real estate, but that’s after a more than 50% move up in equities since Trump. Some of that increase is justified by fundamentals but not all of it. So, I’m not exactly letting it go to my head.
I’m a firm believer that in a debt laden near-zero interest world (in real terms) cash is a really bad place to be long term. I don’t view it as a “safe haven.” Nor do I think I’m savvy enough to time things after living through so many bubbles (Japan, dot com, etc.) So - hold, collect dividends, and live a little below my means. With valuations as stretched as they are that last part is likely to be the biggest factor in further increases, at least in the short to medium term.
Of course I suppose I could do a mid-life crisis thing and go for that coveted ultra-rich title. Just 5x what I have now. Shorting the crap out of financials right before the next crash ought to do it. But - I don’t have the balls Maybe I need a health scare - a close brush with death or something. SO easy to be long - you only need to be right in the long run as long as you don’t put too many of your eggs in one basket. Shorts have to be right in the short run. VERY HARD.
So shorts are in general sophisticated fundamental analysts, sometimes they underestimate people who overestimate themselves herd mentality is powerful, you can be trampled alive.
I am trying to remodel (under plan) and my arch says appx $350/sqft assuming average finish goods cost (not expensive, not least expensive) just for good look and feel, flip project.
Maybe I need a health scare - a close brush with death or something. SO easy to be long - you only need to be right in the long run as long as you don’t put too many of your eggs in one basket. Shorts have to be right in the short run. VERY HARD.
herd mentality is powerful, you can be trampled alive.