Anybody Buying Yet? Where’s the Bottom?

[Bonasababy]

Gas has been and is up what 60% since then? ( I acknowledge gas was an all time low in 2020 but it's still has been and remains up )

30% for vehichles. And before jack ryan the ultra boomer butts in not everyone has to buy a new vehichle but we all need transportation for work so I think.that number is relevant whether buying new buying used or repairing your current mode of transportation. We can't all ride a $*)Q!#@$ tabogan to work like I'm sure he did.

Homeowners and vehichle insurance has risen 50%

Those are just 3 other things that come to mind of things we have to buy everyday.
I'm pretty sure Icoukld keep the list going. But I'll try to tell the kids there eating too much.

Insurance costs vary a lot by state. Mine have gone down recently. Granted there have been changes that raise the price of some claims...for example a first ever hail and wind deductible of 5k for us.

 

[SAJ-99]

Gas has been and is up what 60% since then? ( I acknowledge gas was an all time low in 2020 but it's still has been and remains up )

30% for vehichles. And before jack ryan the ultra boomer butts in not everyone has to buy a new vehichle but we all need transportation for work so I think.that number is relevant whether buying new buying used or repairing your current mode of transportation. We can't all ride a $*)Q!#@$ tabogan to work like I'm sure he did.

Homeowners and vehichle insurance has risen 50%

Those are just 3 other things that come to mind of things we have to buy everyday.
I'm pretty sure Icoukld keep the list going. But I'll try to tell the kids there eating too much.

I don't dispute the numbers. I look at them every week/month and experience them same as you. Keep in mind that one man's expense is another's income. Even if the rate of change falls to 2%, prices won't come down. At least until people start losing jobs. Everyone looks at it through their own lens, buy you don't realize how cheap things are.

 

[Nick87]

I don't dispute the numbers. I look at them every week/month and experience them same as you. Keep in mind that one man's expense is another's income. Even if the rate of change falls to 2%, prices won't come down. At least until people start losing jobs. Everyone looks at it through their own lens, buy you don't realize how cheap things are.

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Thats very true, and my chart only starts around 2008 probably in my head. So you can appreciate the frustration.

 

[Nick87]

I also have to remember that most every year I go on a hinting trip that a couple generations ago was OIL.

 

[Exhausted]

LOL, BTDT. I know how that feels but it is still true. Inflationary times, I've often had my "house" make more in year than I did.

Pay off that mortgage if you have one. It is like an investment guaranteed to pay 10% dividend every year.

Rich people don't sit around lounging on top of piles of cash or debt either. Does anyone think Elon Musk is keeping an old mortgage load "just for the tax savings"?

I’m not totally sure what this means. But I work in finance and the wealthiest people I analyze have loads and loads of debt. Total assets obviously outweigh, but the ultra wealthy have no aversion to debt.

 

[Wildabeest]

Pay off that mortgage if you have one. It is like an investment guaranteed to pay 10% dividend every year.

My mortgage is a tax deductible 2-5/8%. That effectively puts it at 2% net. I can earn 4% in a CD. Why would I pay down my mortgage? I understand peace of mind of being debt free, but it would not make sense for me from a pure financial logic standpoint.

 

[Nick87]

My mortgage is a tax deductible 2-5/8%. That effectively puts it at 2% net. I can earn 4% in a CD. Why would I pay down my mortgage? I understand peace of mind of being debt free, but it would not make sense for me from a pure financial logic standpoint.

Thats the way I look at it. Not to mention the cd is liquid, worst case scenario if o get hurt or work gets slow.the bank isn't gonna float me because I've been making extra payments.

 

[406dn]

Everyone has their own take on how to manage their income. I'm reluctant to say there is only one correct answer.

One thing that, I think, worked well for us, is we took out a 15 year mortgage, to buy our first home. You build equity more quickly. It also put us debt free, as our two children finished high school. This enabled us to get them thru college without outstanding debt, either their's or our's.

It also freed up the budget enough to enjoy the luxury of owning horses. I do not think I could justify owning horses, while still having a mortgage.

In addition to becoming debt free, having liquid assets that would cover a job loss, is a good place to be.

I think the best thing we have done, since becoming married, is we have, always consciously lived below our means. Over time, it is almost inevitable that you will pull ahead.

 

[mevertsen]

Gas has been and is up what 60% since then? ( I acknowledge gas was an all time low in 2020 but it's still has been and remains up )

30% for vehichles. And before jack ryan the ultra boomer butts in not everyone has to buy a new vehichle but we all need transportation for work so I think.that number is relevant whether buying new buying used or repairing your current mode of transportation. We can't all ride a $*)Q!#@$ tabogan to work like I'm sure he did.

Homeowners and vehichle insurance has risen 50%

Those are just 3 other things that come to mind of things we have to buy everyday.
I'm pretty sure Icoukld keep the list going. But I'll try to tell the kids there eating too much.

Agreed

Some of the costs for sure

Hamburger 80/20 was under $4 at the start of 25 at our local grocery. Last time we bought a few weeks ago was $6.49. And thats cheaper than Walmart 73/27.

Previous car rate hike was 40 percent starting December of last year. I dropped full coverage on my 2011 F150. Signed up for driver IQ this June for a 10 percent drop, which would have been about $30 more per 6 months otherwise.

Health for my wife and daughter almost identical at about 40 percent increase as well 2025 to 2026. Previous year 24 to 25 was less than 10 percent.

We drive old cars, but even an oil change is now topping $65 for our 13 year old RAV 4 just for oil and filters.

There seems to be no winning.

 

[Nick87]

Agreed

Some of the costs for sure

Hamburger 80/20 was under $4 at the start of 25 at our local grocery. Last time we bought a few weeks ago was $6.49. And thats cheaper than Walmart 73/27.

Previous car rate hike was 40 percent starting December of last year. I dropped full coverage on my 2011 F150. Signed up for driver IQ this June for a 10 percent drop, which would have been about $30 more per 6 months otherwise.

Health for my wife and daughter almost identical at about 40 percent increase as well 2025 to 2026. Previous year 24 to 25 was less than 10 percent.

We drive old cars, but even an oil change is now topping $65 for our 13 year old RAV 4 just for oil and filters.

There sees to be no winning.

Its gone up in the last year for sure. Nothing compared to what it's gone up in total since 2020.

 

[Wildabeest]

I think the best thing we have done, since becoming married, is we have, always consciously lived below our means. Over time, it is almost inevitable that you will pull ahead.

That’s the golden rule right there! Sure wish our politicians would figure that out.

 

[Nick87]

That’s the golden rule right there! Sure wish our politicians would figure that out.

Yah instead they live above OUR means.

 

[Nick87]

One thing that, I think, worked well for us, is we took out a 15 year mortgage

One thing I messed up on was moving around a lot. Id guide my kids to buy a house even if it cost a a little more that they think they will stay in. Compounding interest works that way too. I can't t ake it back but I can teach them, hopefully.

 

[406dn]

Yah instead they live above OUR means.

I look at it as we are getting the government we want.

Collectively, we want the services, but do no want to pay for them.

 

[mtmuley]

One thing I messed up on was moving around a lot. Id guide my kids to buy a house even if it cost a a little more that they think they will stay in. Compounding interest works that way too. I can't t ake it back but I can teach them, hopefully.

I messed up big not doing this. And I could have built the home myself. Young and dumb. mtmuley

 

[Nick87]

look at it as we are getting the government we want.

No were getting the government the powers that be let's us pick from.

 

[Forkyfinder]

I messed up big not doing this. And I could have built the home myself. Young and dumb. mtmuley

One thing I messed up on was moving around a lot. Id guide my kids to buy a house even if it cost a a little more that they think they will stay in. Compounding interest works that way too. I can't t ake it back but I can teach them, hopefully.

Are you both referring to the amoriziation schedule of the loan? In other words - the early years are less interest.

Just wanting to see if i reached the same conclusion.

 

[Nick87]

Are you both referring to the amoriziation schedule of the loan? In other words - the early years are less interest.

Just wanting to see if i reached the same conclusion.

Yes and no. Depends how long you plan on living there.

 

[mevertsen]

One thing I messed up on was moving around a lot. Id guide my kids to buy a house even if it cost a a little more that they think they will stay in. Compounding interest works that way too. I can't t ake it back but I can teach them, hopefully.

I bought our house in 2013 just before my wife and I Married.

We refinanced in 2020 just before the shut down at 5 percent (previous 30 year FHA was 4.25%) 10 year local credit union loan. Less than 4 years to go amd we'll be 45. Times are tough month to month sometimes compared to when it was 450 less per month, all told, but we have the end of the tunnel in sight now... March of 2030, here we come.

I could not buy my house today, nor could we sell, and buy the same setup anywhere without a minimum 150k new mortgage.

The house alone will save us.

Also, we've never been able to claim our interest on taxes. Its never been big enough. So we just do the standard deduction.

 

[Forkyfinder]

Yes and no. Depends how long you plan on living there.

Yeah. I bought to own at least 10 and always hated the idea of starting over on the high interest side.

I couldnt have a swung a 15 year. But im glad i bought with a 30, and now owned 10, because if i had bought a place that was a big compromise with a 15 year id have paid the bank fees, realtors, and interest all again and lost out on a lot of appreciation. No immediate plans to leave, but its certainly possible with the equity.

Lots of people talk about 15 year loans with the privelage of buying at a time when a decent property was affordable with one.