Quote:
Originally Posted by spazzyfry123
I own property that I plan to build on. It is BANANAS what it costs to build a home right now compared to just a couple years ago. Combine that with the hike in interest and the monthly cash flow needed to build an identical home has tripled, nevermind what I'd ultimately spend should the loan see term.
I'm actually backed into a corner right now. I make good money, have no debt, own the land outright, perfect credit, plenty in reserves and investments... And I can't "afford" a very basic home plan. Can I pay for it? Sure. Will I spend that percentage of my income for a place to sleep? Nope. We're just renting a place right now after we sold our home in a different state to move back for the job. Not really sure what to do other than keep renting or approach the build in a very non-traditional way.
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Exactly - the other danger is that as rates have risen... cash flow has dropped very significantly on rentals... now that may be good in some situations, as rental property purchases have probably dropped significantly.
The negative to that is... if you own a home and say lose your job or want to rent your own home out to rent something cheaper in times of dire straights... you may not be able to rent it out for remotely what your mortgage is... which puts people in another quandry.