future of real Estate
Thinking About Selling Your Home When Real Estate Sales Pick Up?
It may be a good idea to start the process now, before AI takes away jobs that would enable many Americans to Buy Your Home!
If your House is worth $500,000 or MORE, we encourage you to pay attention to my logic for advising people to strongly consider Selling Their Home Sooner, Rather Than Later!
We keep hearing about the exciting growth of AI lately, ALL the exciting things it will bring to our lives, however, it’s my opinion that not enough focus is on the impact to American Jobs, preventing Millions of Americans from Buying $500,000+ Homes.
Mortgage Rates are currently Elevated based on Recent Averages, and those rates have negatively impacted the amount of Homes Bought & Sold in America the past few years.
When Mortgage Rates finally start coming down, AI will have experienced even more time to grow, allowing companies to reduce employees for this new AI technology.
I have no doubt AI will be a Tremendous Benefit to Society, especially in Health Care, Research & Science, however, it will also Eliminate Millions of American Jobs.
Currently, CEOs of publicly traded companies are announcing every quarter, during earnings announcements, how AI productivity is far superior than human productivity, which is much better for their company, and their shareholders. We do not see them changing that opinion in the future!
If the Stock Market starts Declining Soon due to Slowing Economic & Jobs Data, as being reported NOW, Federal Reserve Doesn’t Cut Rates Fast Enough to Jump-Start the Economy, publicly traded companies WILL accelerate Job Cuts to Stabilize Stock Prices.
These publicly traded companies Always Have & Always Will adopt this strategy when their Stock Price Declines, as they recently demonstrated in 2022!
To learn more about why publicly traded companies utilize this strategy, we encourage you to search or ask AI about Price to Earnings Ratios, also known as P/E Ratios.
The Federal Reserve looks at Unemployment Rates to Help with Policy, however, how are they going to put forward the right Policy to help with a Rising Unemployment Rate due to AI taking American Jobs at an Accelerated Pace?
Currently, There is Nothing Showing Us This Trend Will Slow or Reverse Any Time Soon!
If you remember back from 2004-2007, Interest-Only Mortgage Loans & No Doc Loans allowed people to Buy homes which may have been a little more than they wanted to pay.
However, they were able to Afford bigger ticket homes by the loan types available at that time, allowing Lower More Affordable Monthly Payments on Higher Priced Homes!
In order to comfortably Afford a $500,000+ Home, your Monthly Costs would generally be around $4,500, including; Principal & Interest, Mortgage Insurance, HOA fees, Property Taxes, Home Owners Insurance, School Costs, etc.
If you remain responsible with Income to Debt Ratios, you would need an annual income around $185,000 to $200,000, assuming responsible 401k Contributions, Health Insurance Premiums, Life Insurance Premiums, Childcare Costs, Savings Account Contributions, Car Expenses, and other Survival & Necessary Monthly Expenses.
As AI continues to grow, companies will keep Downsizing Human Jobs, and even if AI creates NEW JOBS, as people say it will, which we don’t agree with, those JOBS will most likely NOT pay $185,000 to $200,000 per year.
If we are correct, there is going to be FAR FEWER Americans that will earn enough money to Afford a $500,000+ Home, leaving MILLIONS of Americans with Tremendous DOWNSIDE when their Home Value Declines, thus, their NET WORTH DECLINES!
We are trying to spread the word NOW, to help Millions of Americans avoid being caught watching their Home Value Dramatically Come Down in Price, their Net Worth Dramatically Decline & their Feelings of Happiness & Security Vanish!
A Few Things That Could Happen Making This Strategy WRONG
The U.S. Govt. decides to Move Away from 30 year Mortgages, adds 50 or 100 year Mortgage Options, helping make Home Buying More Affordable with Lower Monthly Payments, as the Loan is Amortized over a much Longer Period of Time,
Interest-Only Loans come back to help Reduce Monthly Payments, at least for 10 years or so, as available in 2005 before the Credit Crises Burst in October of 2007,
AI technology turns out to be far less superior to human productivity in most industries, impacting fewer job losses and occupations than expected in 2025,
Americans are allowed to use their Home as Collateral to issue Stablecoins or Alt Coins, and Sell Fractional Ownership to Investors in order to Capitalize on the Equity built up in their Home, which would not be Selling their Home, simply Generating Income from Selling Fractional Ownership of their Home to Investors.
If you would like to talk about your specific situation, please contact us, and we will find an EXPERT to discuss your situation in detail.