Will inflation impact the value of your home?
Tanya Marchiol tells us why your home may be at risk
- Duration 5:37
- Date Feb 8, 2013
Tanya Marchiol tells us why your home may be at risk
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Welcome back everybody okay I just wanna quickly do some more on the housing market has been talking about inflation as it affects home prices and home values right now and real estate expert and investment -- -- Tonya -- you know.
Joining us sunset they must not never got to easily print -- serious things DO so rallies inflation is -- now.
So basically real estate is one of them only assets that is really kind of protected from inflation only because as property values rise so do -- -- so when people are buying as an investment.
It's really proportionate and so you're a little bit not totally but a little bit more -- I think what scares me more is there's so many cash buyers in the market today fine -- -- for cash for and you just American dollars to IRA -- There it is good but what people need to understand is that with inflation they almost need to reverse that and now and a mortgage on and leverage it.
Because as cash goes down with inflation so -- your dollar value so all those dollars that you purchased a home with now are worth this much.
When you have a mortgage on it you have less of dollars on its worth more I see so it's really interesting because we've had so many cash buyers right now.
What those people should really looking -- with the inflation -- we know it's going to come.
Is how -- -- leverage this now let me pull my cash back out put it back in the bank investing in other assets.
And have a mortgage on this particular property but it says that -- did you -- and eat all over again.
Not at all first of all property values are much slower and lending criteria is still so difficult.
That you have to give the qualified for that took so they're really when you look at lending you have to lend against the property even more so than a firework.
When somebody has a completely paid off ask that you could give them 50% loan to value and senate.
A 100% loan to value which is part of the reason why we -- in the mess everywhere and you're still sitting in the seat position as the bank.
And has the power.
He defined housing market yeah right now that there is -- national housing market and they think I'm -- number one thing that everybody has -- -- -- They're states that judicially park -- indicate that non judicially for close those nonjudicial foreclosures them.
-- really are states where they're rebounding Arizona.
Nevada we're gonna see a lot of Nevada this year because they're lifting the moratorium.
State like Florida and New York.
Where they judicially are close they -- backlog 930 some days.
It's gonna be awhile and we're gonna see -- -- for the next two or three years because of it I.
When you think V.
Industries related tied to the housing industry starts were -- like building building materials.
Construction which kind of already is right but what's so IDC they're starting to see those -- -- come out the mire re.
Not -- but just barely come out of the -- Only because it really does bring everything -- as people get back into housing.
For every new home built three jobs are created whether it be at Home Depot -- someone doing the -- You know a bookkeeper so as housing comes back.
Three jobs are created for every new homes it's them so we're gonna start seeing that expects that the builders cut back okay.
I went to China spot okay Phoenix Erica chatter right thing your house can't be worth fifty million dollars ten years from now it has to stop somewhere.
-- and I agree.
It won't be worth fifty million dollars and if it isn't gonna go buyer right yeah.
I -- exactly update I have no problem.
But what you have to look at is the relationship so if you're buying at.
50000 dollars and it goes up to 70000 dollars and you have that as an investment.
And you're not looking at the appreciation but you're looking at the monthly cash flow and that as a property that is -- -- out at 600 dollars a month.
You are maintaining.
That tax flat out doesn't even matter -- appreciates because -- the cash flow -- -- PetSmart yeah absolutely I'm reading them now and as you're -- -- -- problem lady right and says.
But if you pay cash you not to worry about a monthly payment.
When life happens.
Quotes you still have absolutely agree with her 150%.
The safest bet that you can do.
What we're talking that is inflation.
So that house that you paid cash -- isn't worth this much because unfortunately inflation has taken -- says she is correct.
But it about leprosy could go by two houses and Latvian mortgage payment of the -- and pay your first.
That take a look at these numbers on the screen right now these are some.
He's hot -- right now.
Let's -- if so -- in California as a little scary for the fact that we're looking at Los Angeles.
And San Diego even though -- -- you need to be careful because.
Real -- is not just about house's re it's about jobs and what am I buying in LA for what -- -- buying in San Diego for so.
Those markets went so far down that -- they're going to come back 10% they're going to come back 3%.
But we have to really look and see what are people buying four in airs -- a lot of people are buying -- investments because there's a ton of jobs.
So the housing market just isn't exploding in Arizona.
There's jobs you have to look at why those numbers are going up and -- sustain.
That up to.
OK but it's gonna be nice to see some seller is finally saying.
What's been up for sale will get something back and -- -- qualified to be a buyer at.
Exactly right and we're going to see more of that because just as the market organically -- People are gonna wanna sell because they they're not and it distressed situation in people awesome thank you much couldn't -- you had to -- On the screen team investments.
Ink dot com -- -- anti.