There has been mixed write ups on the U.S real estate markets as of late and for the past couple years actually. While the markets are artificially propelled and the interest rates are staying at all time lows this time around is different. Write ups state the markets will collapse and we are in another real estate bubble and much bigger than the last bubble and so on. However, while it’s true that a crash is very likely with the inflated worthless dollar and the massive bailed out industries along with the middle class, small business killing corruption the housing market is poised to go one direction and that is up.
Why will the dollar collapse and the housing sustain?
It is pretty simple and most people that have lived any amount of time in almost any other country can vouch for the fact that in the third world or developing nations you have 2 types of real estate. You have the extreme low end in tough to get to dangerous areas, and you have the extreme high end and nothing in between. You have cash only buyers even though there are still mortgages, the regulations imposed by the corrupt governments usually make it impossible for the little guys to buy anything. Let’s use South America for example, if you want a mortgage it is available for a very short term and a very high interest rate and for very little cash. Eventually this will happen in the USA as well. Banks will no longer be able to give conventional mortgages and in extreme circumstances they will lend a small portion of the money for a very high interest rate that any rational thinking individual will walk away from.
With the increasing open borders and the complete disregard for the west, the middle class and it’s property, foreign buyers come in and pay cash. After the great western mortgage crisis that has affected the entire west of the world from Ireland, England, France, Italy, Canada and finally USA among others, the real estate that has foreclosed has been eaten up by hedge funds that are usually government controlled or at least connected of which they contrary to popular belief will not sell anytime soon, they are storing these homes for the huge pricing increases poised to come soon. Investors are coming in from all over the world buying all the inventory on the market, leaving what’s left to skyrocket price wise. So for example a condo or house that is an average size of around 1700 to 200 square foot that sold 5 years ago for 150k will be forced to sell for a half million plus moving forward.
Is this a bubble? Some say it is while I really feel it isn’t. I feel this is perhaps the end of the west as we all know it. But a bubble no. How could it be a new housing bubble? Many properties are owned by cash so no more foreclosures. If there are foreclosures, they will likely be scooped by foreign investors joining in on the new rental societies of the west where the old middle class will never be able to afford to buy a home again. Look at third world or other socialist type nations and one of the first things noticed is how expensive real estate is. Take a look at Moscow real estate, some of the most expensive in the world which is a society of rich and poor.
A recent article that I came across, just one of many is the fact that in Vancouver, Canada home prices have skyrocketed so much that the locals will never be able to purchase a home in their home town again. A normal 200k home is now priced at over 1.2 million. They claim this to be from allowing too many foreign buyers in. I do have to say that the United States are by far the stupidest or the most carefree for its own citizens as other countries. Even some kingdoms allow real estate ownership but put a time limit on it for foreign buyers like 100 years or something. There are many scenarios where countries protect themselves from being over ran by foreign groups having clauses in place not allowing complete business ownership, must be partners with local people.
In this case the west is being taken over completely and will eventually lead to unpleasant, painful lives.
The effect this might have to people that get caught in the middle of home ownership
While this may sounds great if you own your home that you are living in as the values will likely skyrocket but the eventual goal of the elites is to eliminate home ownership across the board, this is another reason why I feel mortgage brokers are going broke moving forward. Real estate brokers will do well in the beginning but the inventories won’t take long to dry up and they will be following not too far after. Especially foreign born real estate agents as most foreigners do not like to deal with non foreigners.
Yes, it is great if your home goes from 200k to over 1.2 million, problem is if you plan on keeping that home you must be prepared to pay a new assessed tax value on the home of the massive increase that suddenly got added. So you might be paying 2k and the next year it may go to 10k and that would cause another typhoon of foreclosures among the poor. Perhaps taxes will be locked in or only be allowed to raise a certain amount each year. If not I would recommend speaking to your local rep about adding that in for future pricing.
USA, the new third world coming soon. It’s actually already here but the whole real estate, immigrant, working, small business, banana republic takes time to actually go into effect, but if you look closely you too will see it closing in on all of us. Godspeed.