Only 8% Regret Buying a Home… That Will Change Faster Than Ever!
Harry Dent | October 23, 2019 | There's one thing that is always true: Most people are not good investors. They buy the most near a long-term top and they sell the most near the bottoms that follow. We have lived in a rare period since World War II wherein housing was first boosted by the first middle class generation (The Bob Hope) who could more broadly afford homes and mortgages, and then by the unprecedented and massive Baby Boom generation's demand. These two trends will not repeat and real estate is the greatest bubble in all of history – and globally. Hence, there will be a larger and more global reset than in the 2008-09 recession that saw a nine-year decline of 34% in U.S. housing prices – worse than the 26% decline in the Great Depression. | Free book reveals how to crash-proof your portfolio  According to controversial economist Harry Dent, the economy is on the verge of collapse. And anyone who is not prepared will be wiped out. Which is why for a short time, Dent is giving away a limited number of free copies of his bestselling book Zero Hour: How to Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage. Inside you'll discover exactly how to protect yourself… including the #1 thing you need to do to crash-proof your portfolio in 2018 and beyond. Click here now to claim your free copy.
| Zillow just did a survey that showed that 55% of buyers now have to make a substantial financial sacrifice to buy a home at these bubble prices. The top four are: - 25% reducing spending on entertainment
- 18% picking up additional work
- 16% postponing or cancelling vacation plans, and
- 13% reduced or eliminated saving for retirement
These burdens fall most on younger new households. Since housing has gone up seemingly forever, only 8% regret buying over renting. Only 25% say they would buy a different home, with 86% of the oldest saying they would buy the same house. I would like to see Zillow do such a survey in Japan after their "Great Reset" in the 90s. Home prices have hardly even bounced from a 60%+ crash two-and-a-half decades later, despite the rise of its Millennial generation that is already peaking in 2020 in their spending. So, it only gets worse. My "Net Demand" model that subtracts die-ers from buyers shows real estate is 40% overvalued today vs. 20% in 2006, and projects a slowing market until 2039 in the U.S. Real estate is as high now as it will be for many decades and due for as much as a 50% overall decline in the next several years. After being overvalued 20% last time, the actual crash was 34% as such crashes always overcompensate. So, a 50% crash with overvaluation of 40% would be totally in line. After this great reset, real estate "will never be the same." It will return historically to going up on average at the rate of inflation (replacement costs), and hence deliver a zero real return. It will still generate rents and saved rents. No longer will it be the number one path to building wealth. People will learn the hard way that everything goes in cycles – even real estate! That 8% no regret reply will skyrocket by 2023… A 75-year bull market in real estate since World War II will come to an end – 87 years if you go back to the bottom in 1933 – during the last 90-Year Super Bubble and Great Reset Cycle. 
Harry Dent Trending Stories... My family moved a lot when I was a kid. In our travels, we spent a couple of years near where I live now, on the Texas coast south of Houston. Back then, we lived on the beach where cable was something you could only dream of. We spent this part of our youth flipping... The only Phd economist I allow to speak each year at the Irrational Economic Summit is Dr. Lacy Hunt. (You can watch his presentation from this year's conference here.) Lacy can take that complex science and still see the forest for the trees. He can still find reality from all of that great theory to... The week's gone by and markets are still doing just what I predicted: bounding forward sideways until something breaks up or down. My Money Is on down Partially because of Bitcoin and partly because of politics. What's happening in Washington cannot be good for your money right now – between the Trump administration's dealings with... I'm stupid about the cost of a lot of things. I don't mean uneducated, or lacking knowledge. I'm talking about downright dumb as a stump. Thank goodness the Bureau of Labor Statistics (BLS) is around to set me straight. Take my television, for instance. Thank Goodness for BLS I have a 46" flat screen TV,... In the September issue of Boom & Bust, I talked about corporate debt being the greatest threat globally this time around. The worst is in the emerging world that used cheap printed dollars from the developed countries, primarily the U.S., to fund a debt binge concentrated in the corporate sectors. But our corporate sector also... | 
No comments:
Post a Comment