Comments by "Echo Sierra" (@SignalCorps1) on "Real Estate Mindset" channel.

  1.  @FeelingPeculiar  No that’s wrong. Someone making $100k cannot afford an $800k house at 3% interest. Even assuming a 20% down and 30-year mortgage would have a $4,200 monthly payment plus $1,800/mo for taxes and insurance (on the low side). That’s $6,000/mo or 72,000/year vs a take home pay of about $75,000. You would need to be making $200,000/year to even be considered for a loan of $640k (80% of $800k) and that really isn’t enough to make it a sound purchase.
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  2. That’s not right. A recession is not defined by increased employment at all. A recession is a contraction in the economy and the follow on effect is often increased unemployment. Recessions and unemployment are highly correlated but it very important to understand which is the cause and which is the effect. Also a recession by its very nature brings deflationary pressures and is inherently not inflationary at all. When the economy contracts, the desire for good decreases. If the recession also bring unemployment increases that further reduces the demand side for goods. All of this is deflationary. Any inflationary component of a recession is solely a function of government response designed to kick-start the economy, such as lowered fed rates or stimulus programs.
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  3. Thanks for your comment. Just curious, how do you advise your clients that are looking to purchase a house to be their primary residence? I have my real estate license in CA too, but I use it just to buy and sell my own properties, so I’m not a professional, but I have some young friends that have been waiting to buy their first home.
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  4.  @grownupgaming  Its only part of definition as something that is ‘normally visible’ which means is a byproduct of a recession, not part of the definition itself. Anyway i don’t want to argue about. Have a good day
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