Is there going to be panic selling?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes! I’m freaking out. I was a probationary. I know I’m just a GS-14 but was able to buy a $2M house in McLean. But I can’t ask whoever gave me the money for the house so actually putting it on the market this weekend for $1M. That way instead of trying to ride it out I can immediately be sure to lose money.

This makes no sense.

It's a troll.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Vance’s house is listed, not a mystery. He’s in public housing now.

Yes, but if he wanted to hold it he could.

Eh. Maybe, maybe not. He’s currently making less than $300k and his wife is no longer working. Obviously they should have money saved but neither of them come from money so who knows how much he’s doling out to his family members.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Yeah, if you have a low rate you stand a better chance of getting a renter to pay your mortgage for you.

What renters? Remember, no one is hiring.

It'll come down to when you bought your house. It's tough to find a renter for your 2022 era price mortgage.

This. We bought 10 years ago and have a sub 3% rate. We can sustain PITI on one income for a while. And I'd cut everything else before selling the house. I can't get a comparable place for what our payment is. But our house was well under $1m when we bought it.

[Anonymous]

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Why do people keep saying this??

Cash now pays 4.2% and you have to pay taxes on that interest. The typical DC-area homeowner is at least in the 24% tax bracket. Tack on 8% for Maryland and you’re now at 32%, which reduces your after-tax return on cash to 2.8%.

This means that a 3% mortgage is NOT a “cling on for dear life” asset. Paying it off is probably the highest risk-free return out there for most people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Vance’s house is listed, not a mystery. He’s in public housing now.

Ha ha imagining the Secret Service motorcade pulling up to Syphax Gardens each morning.

The Syphax family are direct descendants of Martha Washington through her grandson George Washington Parke Custis. He had a sexual relationship with a slave at his Arlington House plantation. The daughter born if that relationship Mariah Carter, became the maid to her white half sister Mary Anna Custis who married Confederate general Robert E Lee. Mariah married John Syphax from the prominent family of educators. In 1845 Custis manumitted Carter’s enslavement and gave her 17 acres of land. He similarly manumitted 10 other enslaved children he likely fathered.

Unlike some, JD Vance and his family understood the history of one of the most prominent families in Virginia

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Why do people keep saying this??

Cash now pays 4.2% and you have to pay taxes on that interest. The typical DC-area homeowner is at least in the 24% tax bracket. Tack on 8% for Maryland and you’re now at 32%, which reduces your after-tax return on cash to 2.8%.

This means that a 3% mortgage is NOT a “cling on for dear life” asset. Paying it off is probably the highest risk-free return out there for most people.

I think the poster means more that they'll cling to it as opposed to being forced to sell and buy with a near 7% mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Why do people keep saying this??

Cash now pays 4.2% and you have to pay taxes on that interest. The typical DC-area homeowner is at least in the 24% tax bracket. Tack on 8% for Maryland and you’re now at 32%, which reduces your after-tax return on cash to 2.8%.

This means that a 3% mortgage is NOT a “cling on for dear life” asset. Paying it off is probably the highest risk-free return out there for most people.

If you pay off your mortgage right now, that's probably hundreds of thousands you don't have to live off of for other expenses. You still have to pay your property tax and insurance, eat, pay for utilities.

No one is going to lend an unemployed person a loan to pay for living expenses. A 2 or 3% interest is probably not that much on an annual basis, depending on the size of your mortgage obviously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Why do people keep saying this??

Cash now pays 4.2% and you have to pay taxes on that interest. The typical DC-area homeowner is at least in the 24% tax bracket. Tack on 8% for Maryland and you’re now at 32%, which reduces your after-tax return on cash to 2.8%.

This means that a 3% mortgage is NOT a “cling on for dear life” asset. Paying it off is probably the highest risk-free return out there for most people.

They are saying that because once you sell a house, you lose that rate and have to either rent or pay a much higher rate.

[Anonymous]

If this happens, it could be a great opportunity for others. Snatch up some properties while the price is low. The government will only get bloated again over time and the jobs will only increase from the new rock bottom low. When was the last time the budget was balance? Was it Clinton? Think of the expansion since then. I know you are close to this and it sucks but try to step back and analyze the big picture and the patterns over time. You are strangling yourself with your myopic viewpoint.

[Anonymous]

Anonymous wrote:If this happens, it could be a great opportunity for others. Snatch up some properties while the price is low. The government will only get bloated again over time and the jobs will only increase from the new rock bottom low. When was the last time the budget was balance? Was it Clinton? Think of the expansion since then. I know you are close to this and it sucks but try to step back and analyze the big picture and the patterns over time. You are strangling yourself with your myopic viewpoint.

Wow, vulture.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can’t imagine having this man for a neighbor. But on topic, I think people will cling to their 2-3% mortgages with everything they have. Some people who overextended in the past couple years with crazy rates and crazy prices might walk away but most people have tons of equity and low rates.

Why do people keep saying this??

Cash now pays 4.2% and you have to pay taxes on that interest. The typical DC-area homeowner is at least in the 24% tax bracket. Tack on 8% for Maryland and you’re now at 32%, which reduces your after-tax return on cash to 2.8%.

This means that a 3% mortgage is NOT a “cling on for dear life” asset. Paying it off is probably the highest risk-free return out there for most people.

Why would you pay it off if housing prices are expected to drop? You don't want to end up with a ton of equity in a property that could end up being underwater if this region really plummets like Detroit.

[Anonymous]

You still gotta live somewhere.

[Anonymous]

Anonymous wrote:If this happens, it could be a great opportunity for others. Snatch up some properties while the price is low. The government will only get bloated again over time and the jobs will only increase from the new rock bottom low. When was the last time the budget was balance? Was it Clinton? Think of the expansion since then. I know you are close to this and it sucks but try to step back and analyze the big picture and the patterns over time. You are strangling yourself with your myopic viewpoint.

The number of people estimated to lose their jobs in this area (40-50k) will find this advice useless.

[Anonymous]

It’s often that one person’s loss is another’s gain.

[Anonymous]

Anonymous wrote:My friend is panic selling. They are not feds but know the DC market will go down so they want to get the most amount out of their house.

Where will they go? Rent or move away from the area and abandon their jobs here?