Sell Your Suburban Houses, However, I Do Not Know If This Will Save Your Wealth
Most suburban house values are going to zero. Like ghost towns.
It is really hard to imagine that something that costs a million dollars each today, will be left abandoned. Left abandoned because no one wants to live there and/or no one can afford to live there (even at $0).
We are already on the downward slope in many places. The housing market isn't showing huge drops in prices yet because the houses are just sitting on the market. However, real estate agents are seeing zero buyers show up at open houses. Or, they have to drop the price $200,000 to get any nibbles.
And we aren't even at the place where we really get to see what is going to destroy the housing market.
A small list of things that will cause the suburban housing market to disappear.
- Boomer are moving to care facilities or mortuary plots.
- Blackrock wants to build 15 minute cities, and you are in the way.
- Fiery but mostly peaceful protests are coming to your suburbs.
- Forces are deciding that a civil war will be great, and your suburb is where the battle line goes.
- VAXXX die-offs are still increasing.
- Banks are being driven out of business in order to consolidate the industry. Meaning less mortgages, if any.
- More layoffs are coming. Higher interest rates are coming.
- If you do not grow your own food, in your own greenhouse, you are going to starve.
Or, in other words, everything we knew, all our plans on work/career, housing, car is all going away. Everything is changing. Flow with the changes and you will end up in a better life.
Demographic change
1 in 4 people in The US are boomers. And they are getting old. Meaning 25% of homes are soon (within a decade) going to be vacant. This would be disaster in a normal housing market.
Do not bet against demographics.
And the actuarial tables are still showing that our already bad die-off is still increasing. The VAXXX gave everyone heart "disease" and now it just takes one bad spell, and a lot of people will croak. Stress is already way high. Obesity is already way high. A really cold winter may push a lot of people over the edge.
Meaning, we are going to see a lot more empty houses.
The Financial Situation.
Jerome Powell said there will be a lot of pain. He said it thrice. Maybe we should believe him.
The Fed says they are going to continue raising interest rates until inflation stops. But with them also printing money like mad, inflation isn't going to stop. So, this is a plan to destroy all the people who need credit to keep their business or life afloat.
The plan to eliminate all banks except for a handful of them looks to be going full steam ahead.
This will create a situation where mortgages will be hard to get and expensive.
There is even theories that say mortgages won't be available at all. Easy to see when the banksters want to own everything. How dare you go buy up what is rightfully theirs.
The only way house prices are so high is because of mortgages.
Think of the house price when you have to pay with cash in your pocket.
Protests and mostly peaceful looting of grocery stores
As things get worse in the cities, the already entitled / welfare population will become more entitled to stores stuff.
Targét is already pulling out of SF. More stores will follow.
I am surprised that stores in this area are not concrete block bunkers with only a bullet proof kiosk to ask for stuff.
There will be more protests. More "mostly peaceful" protests, with an accompanying preparing the grounds for new construction will happen.
Anyone who can leave, will leave.
And it will spread into the surrounding burbs.
If you live anywhere near the previous hot spots, leave.
No part of your normal life will exist soon, do not try to hold onto it.
Heating costs, the real killer of suburban housing
All of the houses we build today should be designed with passive solar heating. They should be well insulated. But really, all we have done is gone from R-11 to R-19 in half a century. Such a big improvement.
Our houses are not designed for the really cold temperatures that are coming.
Our houses are not designed to deal with golf ball sized hail.
Our houses are not designed to grow our own food.
And these things will be very important in the future.
As in, you won't be able to afford heating your poorly insulated house.
And with food become more and more costly, you will need to grow that in and around your house. You need a greenhouse. And not a little hobby thing.
The typical McMansion doesn't have any of these things, and so its value will be for materials to build a real house. How much oil can you afford to heat it when gasoline prices are over $10 a gallon? A 10x on your heating and cooling bills will be surpassed in the times ahead.
You won't be able to afford to live there, even if the house is free.
The problem here is, what to do?
Will selling your suburban house work? You will probably lose money lowering the price enough to find a buyer. And then what will you do with that cash? The cash will not survive till the bottom of the market. So, selling with the plans to buy back in will not work. It may be better to sit in your house until you find a homestead or community to move to.
If your house is already worth less than the note (what you can actually sell it for, not the asking price) than stay there until you find a better place to go. It may be a plan to stop paying the mortgage and put all that money into crypto. The problem is, the real crash isn't here yet, and may still be further off than you think. Banks are already hiring teams of people to handle foreclosures.
Plan your life as if your house is already gone. There is no equity there. It isn't worth anything except as shelter right now.
It is radical thinking like this that will get you through these times.
Accept the new, discard the old as it becomes useless.