Real estate
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Posted Feb 7, 2021, 6:25 AM UTC · edited
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With interests so low house are easier to afford. How does your logic make sense that they won’t be able to afford them? Unless they are getting a variable rate mortgage. I don't know anyone who does variable rates( interests fluctuates). Everyone I know does fixed rates( interests stays the Same). Once things go back to normal interest rates should raise but it won't effect people with fixed mortgage rates. If you want to invest in properties there is ways to do so. Me personally I purchase one house a year, fix it and flip it as side gig to retire sooner rather than later. The current house I purchased for 10k putting in 20-30k into it. Selling it for around 150k. Mind you I do 90% of the work myself. But how I got started was a friend asked me to go look at houses with her because she was moving back to the area. Started looking at houses and thought man I could make money fixing these up. Now I'm doing my third house. I was able to build my house mortgage free.
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You have to renegotiate the interest rates periodically typically every five years even in a fixed rate mortgage. At least that’s true where I live. This is why I mention that in five or six years there will be a run of people who can’t afford their homes.
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Do you live in the US? Read this article Here definitely sounds like you are thinking of variable rate loan
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Maybe I’m wrong I’ve been wrong before and I will be again, but what we are looking at is a 25 year mortgage on a fixed rate 5 year term. I live in Canada.
25 Year Mortgage Principal $150,000.00 Monthly Mortgage Payment (P & I)(5 yr Term @ 4.00%) $789.04 Interests Costs for Full Amortization $86,707.04
For example, sorry I copypasta the grid on my phone and it’s terrible.
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Ahhh ok. It may be different there. I live in the US. I don't know. But do a little bit of research. There's definitely money in real estate. If I was you. Id look for house that you could repair and flip or possibly rent them out. Just do a little bit of research. Just way I got started I went and looked a house then looked at what houses have sold for in the area and seen if there is money to be made if I fix it. So I look at the house get dimensions, note everything that needs fixed or replaced. Go home and see much that would cost.
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Buy low, sell high.
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Get some nice flat land. Make it into commercial real estate to open up a GameStop store or AMC Theatre.
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Pivot to a career in property law?
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