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comment by uhsguy

Better buy that huge house now. To bad there is no inventory. Also not a fixer upper because material costs will murder you





kleinbl00  ·  1310 days ago  ·  link  ·  

    Better buy that huge house now.

Have been watching the market. Big check.

    To bad there is no inventory.

Not too many assets where you can buy it low and be assured that you'll be able to make progressively more in rent.

    Also not a fixer upper because material costs will murder you

Yeah but if you take out a HELOC you're golden.

I realized dropping off my kid that my family's livelihood is tied to (A) union contracts, which are negotiated on like 3-4 year timeframes (B) insurance payouts, which are renegotiated on like 5 year timeframes and (C) medicaid contracts, which were renegotiated in 2015 and 1988.

Looks like I need to get gud at lobbying.

uhsguy  ·  1310 days ago  ·  link  ·  

Looks like you need to buy a new/bigger house because built in adjustments in those contracts increase your wage a nominal 2.5- 3% a years. With the interest rate at 3 you basically aren’t paying anything in interest it’s free money. You have an upside risk if rates ever hit 5%+ but I’m pretty sure the us government will not be able to survive rates above 6 without some sort of massive printing and inflation.

kleinbl00  ·  1310 days ago  ·  link  ·  

There are no adjustments in those contracts. WE just re-upped three of them and the prices are exactly what they were. And insurance contracts are like buying diamonds from DeBeers - you take it or you leave it and if you leave it you have to recertify.

uhsguy  ·  1310 days ago  ·  link  ·  

Ours adjusts like 2.5% a year or so. The company plays games with the pool but generally you still get around 2-3%. If I knew I would keep my job I’d feel secure buying a million dollar house, unfortunately our company will likely lay off 50-60 % of the workforce and while I’m on good terms with my boss we don’t go to the same church or do regular dinner parties so I may or may not survive that large of a cut

kleinbl00  ·  1310 days ago  ·  link  ·  

You're consumer-side. Vendor-side is a whole 'nuther world. Know that they might be hitting you for 2.5-3% a year?

but they're keeping all of it.