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Updated almost 3 years ago,

User Stats

20
Posts
9
Votes
David Taylor
  • New to Real Estate
  • Wisconsin
9
Votes |
20
Posts

Fears & Your Predictions?

David Taylor
  • New to Real Estate
  • Wisconsin
Posted

So my wife and I are reaching our saving's goal for our first STR investment property. We have around $25k saved up for initial money, and will soon have over $12k for emergency funds.

How are you dealing with fears (if you have them) of how the housing market is behaving? Obviously, inflation is at an all time high, inventory is low, prices continue to increase, and interest rates are rising. As a first time investor, I'm having difficulty trusting the market to correct itself through increased rate hikes by the Fed. If inflation continues to outpace wages, and housing prices continue to rise (and everyone ALWAYS wants more for their house, especially seeing how sellers made out over the past couple years) along with high interest rates - how will anyone be able to afford to buy a home or invest in the real estate market? 

The difference in monthly mortgage payments is significant when moving from 3% to 5.25%, and it looks like interest rates will continue to rise. 

This doesn't seem like it will end well. I don't know how we can avoid another recession, or perhaps more likely, a depression. And if that does happen, who will be able to afford to travel and book all these AirBnB?

Someone, tell me I'm crazy - and that my concerns are unfounded. My wife and I are in our mid-40's and desperately want to leave our regular W2's. But we certainly don't want to be forced to return to them with our tails tucked between our legs because the market fell out from beneath us.

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