Century 21 CEO warns of 'problem' for upcoming generations in real estate

[kmakar]

 

[JohnC]

Interesting. I had a debate on the internet about paying a “living wage.” Essentially that an adult should be able to support themselves with literally any job that they choose to hold, from sacking groceries to wrapping burgers. My stance is when you start to paying $20 an hour to wrap burgers (which btw you can get in the Bay Area), $20 an hour will no longer be a living wage because the cost of goods and services will go up. So the future of unskilled labor is not making 80k to parks cars, it’s living at home with your parents until they pass on and leave you their home, because you can’t afford to live on your own doing those type of jobs. That is already a fact of life where I live.

Not to make everything political, but this make it all the more reprehensible that Biden’s people have expressed interest in taxing the appreciation of property willed to you when your parents die. So if you can’t pay that tax, you are forced to sell the home your parents willed to you and it’s back to living in an apartment with roommates.

 

[kmakar]

Interesting. I had a debate on the internet about paying a “living wage.” Essentially that an adult should be able to support themselves with literally any job that they choose to hold, from sacking groceries to wrapping burgers. My stance is when you start to paying $20 an hour to wrap burgers (which btw you can get in the Bay Area), $20 an hour will no longer be a living wage because the cost of goods and services will go up. So the future of unskilled labor is not making 80k to parks cars, it’s living at home with your parents until they pass on and leave you their home, because you can’t afford to live on your own doing those type of jobs. That is already a fact of life where I live.

Not to make everything political, but this make it all the more reprehensible that Biden’s people have expressed interest in taxing the appreciation of property willed to you when your parents die. So if you can’t pay that tax, you are forced to sell the home your parents willed to you and it’s back to living in an apartment with roommates.

I agree with your state in its entirety, but those who are smart enough to enlist the services of a good elder law estate attorney (like my wife and I have), if that house is in an estate (as mine is along with all of my assets), government can't touch anything.

We were prompted by my attorney (also a close friend) because we have an autistic son and wanted to make sure he always had a home. We also have a special needs trust buried in the estate that locks any of his assets in with the estate, and when we die (my wife and I), my son can get governmental benefits and nothing in the estate can count as assets, so he qualifies for everything, but he won't need it because my wife and I have provided for him for the remainder of his life.

 

[JohnC]

Makes sense. We already have a trust too.
I don’t know much about real estate but wonder if there aren’t going to be a bunch of people upside down on their mortgages again in the future. Friends who bought recently seemed to have to pay more than they were comfortable with and although these people can ultimately afford it, many can’t. I could see a (financial) market correction in the future too, but that’s just an uneducated guess.

 

[kmakar]

Makes sense. We already have a trust too.
I don’t know much about real estate but wonder if there aren’t going to be a bunch of people upside down on their mortgages again in the future. Friends who bought recently seemed to have to pay more than they were comfortable with and although these people can ultimately afford it, many can’t. I could see a (financial) market correction in the future too, but that’s just an uneducated guess.

You hit the nail on the head. The market is overinflated and those who bought within the last year will pay a heavy price when the market crashes. It's already on the downslide. I have a client who owns 4 ReMax offices and they have seen the trend drop off in the past 2 months and it'll only get worse. As far as the market goes, I anticipate there will be a market correction, but I'm only speculating as I'm not a financial guy and depend on others to watch for me.

 

[68Chevele]

If it's my time I will mortgage my house to the max give all the money to my son and the bank can have the place back. One way or another I will screw them before they screw me.