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They are preparing for a drop in land prices. Also presumably anyone applying for a HELOC right now is doing so to tide them over, and banks reason that many w
by amiga_500 6y ago
They are preparing for a drop in land prices.
Also presumably anyone applying for a HELOC right now is doing so to tide them over, and banks reason that many will just burn through the debt and then default with less equity.
- rcpt 6y agoWe just printed $6T but the amount of land didn't change. Why would land prices go down?
- lotsofpulp 6y agoIt depends how much of that $6T lands in the hands of people buying land (in the near future).
- toomuchtodo 6y agoLand prices are tied to wages. Wages and employment goes down, value of land goes down. Unless the Fed starts buying up land directly, or using REITs.
- nostromo 6y ago> Unless the Fed starts buying up land directly, or using REITs. This is happening. The Fed is buying mortgage backed securities. In other words: the Fed is buying real estate.
- amiga_500 6y agoBecause much of the "value" presently seen is speculative, and there are many reasons not to be bullish for the next couple of years.
- bolasanibk 6y agoI agree. Individuals might not be able to afford land. But large corporations will definitely be able and more than willing to.
- saati 6y agoApple won't buy up a lot of residential real estate.
- adrr 6y agoNeeds to end up in people's pockets for land prices to go up.
- defertoreptar 6y agoIf there were no worry of a recession, then land and other asset values would increase. The $6 trillion is meant to offset possible deflation and keep inflation on course for 2%.
- kyleblarson 6y agoSlightly unrelated but my guess is that we will see a flight out of urban areas as working remotely becomes significantly more prevalent. People will realize that they can't justify the insane prices, traffic, crime etc. in large urban areas. Smaller cities and remote communities will see an influx of new residents and home and land prices will increase in those areas.
- amiga_500 6y agoThe problem is people with kids need access to good schools. Even if "good" is just "perceived as good by the next rung on the ladder, for entrance requirements". These are typically available only centrally.
- toomuchtodo 6y agoSome people do. Some people with a stay at home parent homeschool. I don’t want my kids going to subpar public schools, so would rather have their education happen at home, which allows us to live anywhere with my remote job. A counter point to your central schooling argument is Chicago Public Schools, which are terrible.
- scarface74 6y agoIs the person homeschooling your child more of a subject matter expert in all of the areas that the public school teaches? Many parents have found out first hand that they either didn’t know what they were doing or weren’t patient enough to teach their own kids.
- toomuchtodo 6y agoNope. We learn the material over (having been out of school for at least two decades) from the home school material, and then teach it. If you don’t have patience, but also can’t afford private education of some sort and have to resort to broken public institutions, there's not much hope (imho). Patience is cheap (comparatively speaking). I've learned how to weld, sail, wrench on diesel engines and my Teslas, perform wilderness EMT procedures, woodwork, and build houses/perform large scale home improvement on my own. K-12 is a cake walk. Don't doubt your vibe, you're a fellow human and you can do it too.