Comments by "Andy Hughes" (@andyhughes1776) on "Real Estate Mindset" channel.

  1. Even BEFORE the Pandemic free money and low interest, the housing market in most areas was inflated. The cause: beginning around 2012, foreign buyers (mostly Chinese) bought up properties in places like Southern California, which drove up prices beyond affordability for many locals. About 1/4 of all homes sold in the U.S. were to Chinese foreign buyers - 80% in places like Irvine, California. Did you know that China's Middle Class (those who could afford to invest in U.S. property) equals the entire U.S. population - 300 million! Local Americans were then driven out to cheaper places such as Arizona, Nevada, Texas, etc.....which caused prices to inflate there (domino effect). The Pandemic remote work, low interest, and free money allow even more to do that. Any time the median price of a house is 5 or more times the median annual salary of the area the house is located, there is a Bubble.
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  2. What goes up must come down. The housing bubble in places like California began forming since 2014 when foreign buyers bought up all the homes in cash. The only reason why the housing bubble hadn't popped yet was because some other forces kept propping it up - foreign buyers, corporate buyers, high tech bubble money, low interest rates, free Pandemic money, etc. But now, they ran out of tricks to pull out of the hat. Therefore, housing prices must come tumbling down. Just wait until foreign Chinese owners start to dump their properties in the U.S. when China invades Taiwan and start a war with the U.S. Places like Southern California and NYC are 80% owned by foreign Chinese.
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  3. Let's not forget that Airbnb stock went from $220 a share in 2021 to $93 now. Brutal!
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  4.  @DataOne-t5e  Biden's pocket.
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  5. Only 5% drop in the U.S.? That's average. Some regions will see 30% drop or more. The higher it went beyond local salary, the steeper the drop. In some areas such as Southern California, the median price of a house is now 10 times the median household income. How could that not collapse.....unless some other forces keep propping it up such as corporate buyers, foreign buyers, etc.
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  6.  @ladycactus110  Biden kickback policies.
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  7. The biggest factor that no one talks about is foreign buyers (mainly Chinese) to invest and/or to use as future homes for their "Anchor Babies". (Is this why you have a picture of Xi Jinping at the beginning of this video?) This is especially true in California, which pushed local Americans out to other states hence the price of homes there rose too. I am currently renting from such an investor from China. He owns 4 other homes in the same community in Irvine, California. Since around 2014, about 80% of homes in Irvine were sold to investors from China. Indeed, I believe that it was the buying of so many hones by these Chinese investors that pulled the U.S. out of the Great Recession. But now, as the U.S. government put more and more sanctions on China, I anticipate that many Chinese investors will dump these homes, which will cause a housing crash.
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  8.  @laura-zu4yz  The solution is to tax foreign buyers and use that tax revenue to offset local Americans' purchase. That way, builders still get paid the market price (hence, they can build more and hire more workers, thereby get our economy going), local Americans could still afford the home, the free market is maintained. Another way to protect Americans is to require foreign buyers to be sponsored by an American citizen in order to own property (the local American owns 51% of said property). Or, the land underneath the property must be owned by an American - it's our land, after all! There are many ways to help ensure that Americans are protected from being stripped clean by foreign investors. But our government did none of it.
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  9. Like food, housing is a neccessity, not a luxury. As such, it should not go to the highest bidder. No wonder we have an unstable and violent society today - when people have nothing else to lose, why should they care anymore?
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  10. These two things might be the trigger that will finally crash the housing market back to its fundamental numbers.
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  11.  @laura-zu4yz  Yes...but common sense doesn't seem to be common for many.
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  12.  @singlefather01  Not anymore - 67% of high tech companies lose money. Look at high tech stocks right now. Massive high tech unemployment is already under way. There is nowhere to run to.
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  13. Bad idea! Ending property tax across the board will cause housing price to spike again, which will continue to price the middle class out of home ownership. Better solution: end property tax ONLY for buyers who LIVE IN the home they bought, NOT for investors and foreign buyers.
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  14.  @realestatemindset  The reason why you couldn't find any data is because these investors paid cash for their homes - can't track using mortgage data. And because they paid cash, they appear to be U.S. institutional investors (after all, what ordinary American could pay cash for a house?) There are U.S. institutional investors but I think there are less of them and they only recently began (they copy the Chinese, who has been doing it since 2014).
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  15.  @cameron1988  Yep, along with high-tech entrepreneurs from India, I heard. But at least those guys work locally hence pay local taxes and buy local stuff to help the local economy. Chinese nationals live in China. They earn their money there and spend there. Doesn't contribute to our local economy. No wonder there are so many homeless people in America today.
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  16. Soon, this will result in an entirely new class of homeless people. This and the end of rent moratorium will increase the homeless population to much larger than it already is. Today's homelessness are no longer for the lazy druggies.
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  17. If your income is $100k, it is considered low income in Irvine, California. That's because a starter townhouse here costs $1.2 million. Most people share homes in Irvine.
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  18.  @shirwaikar1  But not 10 times. In 2008, home prices in California dropped 35%.
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  19. I agree but if it wasn't for Chinese investors buying U.S. homes starting in 2012, we wouldn't have been able to get out of the Great Recession. At that time, no one could qualify for a mortgage. Their house buying in cash stimulated the U.S. economy. Problem is, it also jacked up home prices beyond local affordability...and that was BEFORE the health crisis even hit, much less the free money and zero interest rate that made it worse. Truth is, our economy is nothing but hype - going from bubble to bubble without producing anything. The next big bubble is the NFT craze that is building up right now.
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  20. Karma is very real. They cannot devastate people's lives in the name of profit and not suffer the consequences. I am a landlord myself and I never raised rent on my tenant since she began renting my property 4 years ago. One can never prosper in the long run if he profits at the detriment of others. Opendoor, Zillow, and others like them found out the hard way recently.
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  21. Also, areas that have inherent values such as the beach, high paying and stable jobs, good weather such as Southern California will go down later and go down less. Desert areas such as Las Vegas will collapse early and collapse big because there is nothing inherently valuable about barren desert land. Indeed, during the last housing bubble burst in 2008, Las Vegas home prices went down by as much as 70%.
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  22. Good, let them fall!
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  23. Being that everything is overpriced right now, if you invest today, expect to lose it all in the next few months. Wait until the market crashes, then enter PROVEN LONG TERM companies. After 5 to 10 years, you will gain a bunch. That is how Warren Buffet made all his money. Doesn't sound racy but it's a proven strategy. Buffet also said he wouldn't buy Bitcoin even if they sold all of it to him for only $25. That says a lot from the Oracle of Omaha.
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  24. You guys pointed out HOW the housing bubble formed (low interest rates) but not WHY. Here's why: The Feds kept interest rates so low for so long in order to stimulate the economy. Problem is, without manufacturing, all that did was create bubbles from the Dot Com craze to the first housing bubble to the high tech bubble to the second housing bubble now. Everything were based on hot air. Meanwhile, China became truly rich because they manufacture stuff. Finally realizing, the U.S. began to dismantle China's manufacturing might via high Tariffs and sanctions on key high tech companies, not to mention moving factories out of China. That is what "decoupling" means. Now, the U.S. is trying to bring back key manufacturing products, namely, computer chip production (because American workers are still too costly for other products). But that will take time to prop our economy back up with something tangible. Meanwhile, the bubble burst and our economy will come tumbling down. That is where we are at right now.
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  25. Sounds like my story too.
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  26. It's called Karma, people! Opendoor pushed so many hardworking locals out into the streets for the last few years. Now, nature's Law of Opposites is pushing them into bankruptcy. What goes around, comes around!
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  27. End property tax for local homeowners who live in that home and whose income is tied to the local economy, NOT FOR FOREIGN and CORPORATE investors! The outrageously high price of homes today was precisely due to these investors.
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  28. Elane, I also live in SoCal (Irvine) and yes homes here actually stay high or even went up. I suspect another force at play here: Foreign Chinese Communist officials are buying up SoCal using the money they seized from their people's bank accounts (bank closures in China are rampant now - people can't get their money out and their accounts are frozen and zeroed out). As China's economy collapses, Communist Party Officials are stealing money from their people and transfer it overseas to save their own buttocks. They then hide it by buying up real estate. But the people will have the last laugh when China invades Taiwan, which will cause the U.S. to seize their assets in America (like we did to the Japanese in WWII). This is going to get very interesting in the next few months.
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  29.  @bridgetbesherse6788  They will. My cousin was born, raised, and graduated college in in SoCal. In 2005, he decided to move to Vegas to invest in real estate full time. At first, he was riding high - he made hundreds of thousands flipping homes. He was living in a 6,000 sq ft house. You can guess what happened to him when the bubble burst in 2008. Let me put it this way, he now drives for Uber. Last I saw him, he changed a lot - he dresses very shabby now. He hates rich people and his view of life is not the same as before. Any time the median price of a house is 5 or more times the median annual salary of the area that house is located, there is a Bubble. That means, do not buy. Homes should ideally be not much more than 3 times your annual salary. More than that and the area becomes unstable and will correct sooner or later especially at places like Vegas where there is nothing inherently valuable about that area.
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  30.  @bridgetbesherse6788  Much luck to you. Buy at the dip and you'll be fine. My guess is that dip will begin by end of this Summer because our economy will tank by then. Whenever the economy tanks, less tourists will go to Vegas. Less tourists means more layoffs at Casinos. More layoffs mean less people can buy / keep their homes there. Voila - housing crash!
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  31.  @bridgetbesherse6788  Glad I could provide some perspective. Also, note that when the housing bubble burst in 2008, it took about 5 - 6 years for the price to reach absolute bottom basement level. The biggest drop is during the first 1 to 3 years, so use that as a gauge of when you want to buy. So, say, the Vegas housing market begins to crash this Fall, then you can buy around 2025. Of course, you can wait until it reaches absolute rock bottom in 2028 but who wants to wait that long!😁
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  32.  @jc1979af  I often wonder that myself. During WWII, the U.S. government did something like that when they put over 100,000 American citizens of Japanese descent into "internment camps". They forced these folks to sell their homes and businesses quick or face confiscation. The law that allows our government to seize private property is called Emminent Domain. Then the government can sell the confiscated properties to private citizens for cheap. I think priority should be given to military personnel (to help their family have a home while they defend America).
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  33. It's not that the Feds are evil, but they don't have any other choices but to raise interest rates. They kicked the can down the road for too long now, and simply ran out of rabbits to pull out of a hat.
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  34. According to ALL realtors, the best time to buy is always now. That is always true.....FOR THEM as a realtor. Never for their clients. Buy hey, they gotta eat too! Better for you to overspend and go hungry than for them.
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  35. What your realtor said was true....but she didn't tell you best for whom? It's best alright, just not for you!
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  36. Whatever the mainstream media (which is just the propaganda arm of the government) claims, the opposite is true. And if they censor you, you can bet that you have hit the truth jackpot!
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  37.  @MrHossain2357  Many companies will, especially those that had been destroying hard-working people's lives. Example: Opendoor stock went down by 94%! More will follow suit. Karma is alive and well. "Oh mine eyes have seen the glory of the coming of the Lord...."
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  38.  @stephaniemiller5165  A $1.1 million house in some areas of the country such as California is only 1,700 square feet or smaller. Is that big to you?
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  39. Housing crashes don't happen immediately like stock market crashes. It takes years. However, the initial crash will drop the most in the first year or two then tapers off after that to reach rock bottom at the 5th or 6th year after the crash first begins. The crash of 2008 looked like this and reached rock bottom around 2014 then began to rise again after that. So, you could profit handsomely if you buy next year but I'd rather wait until at least 2024 - 2025 to take full advantage of the even lower drop. Good luck guys - cheers to that!
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  40. Deep State coffers for kickbacks to DemoRats.
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  41. Where is your house located?
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  42. My post just got deleted. That tells me our economy just collapsed...
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  43. You mean the Department of Indoctrination!
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  44.  @markme4  I got that 80% from a Real Estate agent in Great Park Irvine a few years ago whe I tried to buy a house and was out-bidded by Chinese buyers. I ended up renting from a Chinese owner who owns 5 more homes in Great Park; yet, he never sat foot in the U.S. So, 80% is believable. But we'll see just how much they impact the U.S. housing market soon after China invades Taiwan and the U.S. starts shooting in response.
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  45.  @curtgomes  Concerning housing market, it doesn't matter who start the war. If there is a war involving the U.S. and China, foreign Chinese owners of U.S. properties will dump their assets. Reason: they fear that the U.S. government will seize their properties if they don't sell (via Eminent Domain). Uncle Sam did exactly that to Japanese-Americans in WWII (not just Japanese nationals). This time, I don't think the U.S. will do that to Chinese-Americans but they could do that to foreign Chinese owners of properties in the U.S.
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  46.  @markme4  Not just Great Park but most of Irvine, LA, Diamond Bar, San Francisco, etc - enough to collapse the California housing market if they decide to sell en masse. Indeed, it was Chinese foreign buyers that caused home prices to go up so high that many Californians had to move out of state and buy homes in Arizona, Nevada, Texas, and as far away as North Carolina these past few years. Again, let's see just how far reaching the effect is when a war breaks out between China and the U.S. in the South China Sea.
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  47.  @curtgomes  Their hypersonic missiles had made U.S. ICBMs obsolete. So, a nuclear exchange is not likely. The upcoming war over Taiwan would be isolated to that area only....and will involve conventional weapons or tactical nukes (battlefield nukes) at worse. Russia recently demonstrated their hypersonic missile hitting a satellite in orbit. If they can do that, they can knock out U.S. ICBMs while enroute to their targets. China has similar technology. Of course, they can put nukes on their hypersonic missiles but they have no need to do that if they already could neutralize U.S. nukes. Bottom line: this war involving China will be isolated to the South China Sea and the Pacific only. But many lives will be lost on both sides....AND the economic cost will be enormous, starting with housing.
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  48.  @curtgomes  LoL...that's because I served in the U.S. Air Force for 20 years - 6 of which were at the Pentagon and D.C. area. I was also the Executive Officer for a China expert at Pacific Command so I got to review China military strength and strategy since the late 1990's.
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  49.  @raymondreiff8170  EVEN BIGGER if China invades Taiwan because foreign Chinese owned assets will be seized by the West just like what happened to Russian Oligarchs when Putin invaded Ukraine. This threat of property seizures will cause all foreign Chinese property owners to dump their properties into the market. Bam - collapse of prices!
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  50.  @Zhuzhup  Actually, it was foreign investors that brought the U.S. out of the Great Recession. Remember, after the housing bubble burst in 2008, no one in the U.S. had the money to buy a house. Credit was very tight. But starting in 2014, Chinese Foreign buyers began snatching up properties in NYC, SoCal, Washington State, etc. That kickstarted the U.S. economy because house construction drove other industries. So, if we outlaw foreign buyers, our economy wouldn't have recovered so quickly. A better way is to tax foreign buyers and use that tax revenue to help offset the higher price for local American buyers. That way, it still stimulates the economy, yet not cause hardship for local Americans.
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