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> Real estate prices have rocketed to outer space for the past year In the Netherlands it's about 20% YoY. And this is starting to become true all throughout t

> Real estate prices have rocketed to outer space for the past year In the Netherlands it's about 20% YoY. And this is starting to become true all throughout the country even though it started in urban areas. I really feel bad for people who aren't homeowners yet, because becoming one right now is getting damn near impossible.

kipchak 5y ago
I fall into that category, and am still mildly hopeful there might be one or two more chances to hop on board. My rent increased by close to 20% this year (US, FL) to the point where paying my old rent with a $250 month to month penalty is actually cheaper. I think this is part of the rampant speculation on crypto and the like - $1,000 isn't really going to do me that much good, but if I hit a 100x I could be a homeowner.
- lotsofpulp 5y ago
  > My rent increased by close to 20% this year (US, FL) to the point where paying my old rent with a $250 month to month penalty is actually cheaper. I have never heard of this type of rental agreement. Your contract says you can stay indefinitely if you pay $250 per month extra over the expired contract’s rent?
  - kipchak 5y ago
    The lease automatically converted to a month to month after the one year term ended. This thread seems to cover a similar scenario.[1] I suppose the downside is they could give me the boot with 30 days notice. FWIW I've contacted them several times to try and just sign a lease but the property has been bought out and had it's management office staff swapped out a few times so the whole thing is a mess. [1]https://www.city-data.com/forum/renting/1261828-fixed-term-lease-converted-month-month.html https://www.city-data.com/forum/renting/1261828-fixed-term-l...
01100011 5y ago
I don't know how the 'average joe' is tolerating it right now. I rent, but I also work in tech so there's still a chance I'll be able to buy a house one day(not anywhere near my job, but still). If I were middle class and saving for a home, I think I would be angry to the point of revolution and violence right now. There are people who have worked like crazy their whole lives and they just had their hopes and dreams set on fire by runaway money creation and the resulting inflation.
- vkou 5y ago
  > There are people who have worked like crazy their whole lives and they just had their hopes and dreams set on fire by runaway money creation and the resulting inflation. Would they be happier under a repeat of 2008 or 1928 instead?
  - kipchak 5y ago
    I would figure from a self interested perspective a repeat of 2008 would be pretty advantageous to an aspiring homeowner. Home prices peaked at $262,600 median in March 2007 and bottomed at $205,100 in March of 2009.[1] Rates were even about a % lower in 2009.[2][3] Of course if the hypothetical aspiring homeowner with excellent market timing lost their job the point would be moot, but if their income stayed the same and they put 20,000 down their monthly payments would have gone from $1,302 to $994. [1]http://www.fedprimerate.com/new_home_sales_price_history.htm http://www.fedprimerate.com/new_home_sales_price_history.htm [2]https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Reports-Mortgage-Interest-Rates-March-2009.aspx https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Reports-... [3]https://www.marketwatch.com/story/us-mortgage-rates-hit-2007-lows https://www.marketwatch.com/story/us-mortgage-rates-hit-2007...
    - vkou 5y ago
      Is it pretty advantageous to new retiree who has followed orthodox investment advice, and has started to live off their investments, only to see the value of half of them crash? Even if they recover in six years, they have still lost a mountain of principal in the meantime. Is it advantageous to a new graduate who will see no work, and maybe a decade of depressed wages (which, between loans and compounding interest in savings, is devastating to their future prospects)? Is it advantageous to a new homeowner that just lost their job? Some people got burnt by that flood of money that stabilized the economy. Some people benefited. Some people avoided harm. Focusing on the first group without regard for the latter is missing a large part of the picture - which was that the economy as a whole remained more or less stable through this crisis.

kipchak 5y ago

I fall into that category, and am still mildly hopeful there might be one or two more chances to hop on board. My rent increased by close to 20% this year (US, FL) to the point where paying my old rent with a $250 month to month penalty is actually cheaper. I think this is part of the rampant speculation on crypto and the like - $1,000 isn't really going to do me that much good, but if I hit a 100x I could be a homeowner.

lotsofpulp 5y ago
> My rent increased by close to 20% this year (US, FL) to the point where paying my old rent with a $250 month to month penalty is actually cheaper. I have never heard of this type of rental agreement. Your contract says you can stay indefinitely if you pay $250 per month extra over the expired contract’s rent?
- kipchak 5y ago
  The lease automatically converted to a month to month after the one year term ended. This thread seems to cover a similar scenario.[1] I suppose the downside is they could give me the boot with 30 days notice. FWIW I've contacted them several times to try and just sign a lease but the property has been bought out and had it's management office staff swapped out a few times so the whole thing is a mess. [1]https://www.city-data.com/forum/renting/1261828-fixed-term-lease-converted-month-month.html https://www.city-data.com/forum/renting/1261828-fixed-term-l...

01100011 5y ago

I don't know how the 'average joe' is tolerating it right now. I rent, but I also work in tech so there's still a chance I'll be able to buy a house one day(not anywhere near my job, but still). If I were middle class and saving for a home, I think I would be angry to the point of revolution and violence right now. There are people who have worked like crazy their whole lives and they just had their hopes and dreams set on fire by runaway money creation and the resulting inflation.

vkou 5y ago
> There are people who have worked like crazy their whole lives and they just had their hopes and dreams set on fire by runaway money creation and the resulting inflation. Would they be happier under a repeat of 2008 or 1928 instead?
- kipchak 5y ago
  I would figure from a self interested perspective a repeat of 2008 would be pretty advantageous to an aspiring homeowner. Home prices peaked at $262,600 median in March 2007 and bottomed at $205,100 in March of 2009.[1] Rates were even about a % lower in 2009.[2][3] Of course if the hypothetical aspiring homeowner with excellent market timing lost their job the point would be moot, but if their income stayed the same and they put 20,000 down their monthly payments would have gone from $1,302 to $994. [1]http://www.fedprimerate.com/new_home_sales_price_history.htm http://www.fedprimerate.com/new_home_sales_price_history.htm [2]https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Reports-Mortgage-Interest-Rates-March-2009.aspx https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Reports-... [3]https://www.marketwatch.com/story/us-mortgage-rates-hit-2007-lows https://www.marketwatch.com/story/us-mortgage-rates-hit-2007...
  - vkou 5y ago
    Is it pretty advantageous to new retiree who has followed orthodox investment advice, and has started to live off their investments, only to see the value of half of them crash? Even if they recover in six years, they have still lost a mountain of principal in the meantime. Is it advantageous to a new graduate who will see no work, and maybe a decade of depressed wages (which, between loans and compounding interest in savings, is devastating to their future prospects)? Is it advantageous to a new homeowner that just lost their job? Some people got burnt by that flood of money that stabilized the economy. Some people benefited. Some people avoided harm. Focusing on the first group without regard for the latter is missing a large part of the picture - which was that the economy as a whole remained more or less stable through this crisis.