The big elephant is the money from narcotics trafficking, and the second one is from oil rich countries.
And from other rich individuals as well, though not so much as the others.
They do not affect their steady cash flows, and can afford to speculate, or leave property unused for many years.
And from other rich individuals as well, though not so much as the others.
They do not affect their steady cash flows, and can afford to speculate, or leave property unused for many years.
In Detroit, Chinese investors bought up bundles of distressed properties. There was a time when you could buy a bundle of 10 distressed houses for less than $20,000 (sometimes a lot less). There might only be 3 salvageable houses in the bundle, but that's still a good deal.
Much of the old housing in Detroit has been rehabbed and converted to Section 8. There was money to be made, and some local investors got into the business. People that previously lived in subsidized rent units became homeowners and landlords. Cottage industries popped up to cater to the Chinese investor's needs. It redefined Detroit and helped some people recover from the economic ruin. It provided opportunities for ambitious people that could never break into a higher priced market.
Much of the old housing in Detroit has been rehabbed and converted to Section 8. There was money to be made, and some local investors got into the business. People that previously lived in subsidized rent units became homeowners and landlords. Cottage industries popped up to cater to the Chinese investor's needs. It redefined Detroit and helped some people recover from the economic ruin. It provided opportunities for ambitious people that could never break into a higher priced market.
Just saw an article in the UK press today - young qualified Kiwis are leaving in droves why - they cannot afford to rent and will never be able to buy a house. So now NZ has a labour shortage that will only get worse.
Any sensible society would make it impossible for speculators to get involved in residential property, it makes total economic sense. to keep the carpetbaggers out. If ruthless rent controls and rigidly enforced maintenance programmes and capital gains tax laws had been made in 97, the UK now would be a very,very competitive country. As it is, even well paid professional people cannot afford to buy a home and people are being evicted from grossly over priced rental property, I believe this is the same in he USA. This can only lead to unrest and upheaval on a grand scale - insane economics.
Any sensible society would make it impossible for speculators to get involved in residential property, it makes total economic sense. to keep the carpetbaggers out. If ruthless rent controls and rigidly enforced maintenance programmes and capital gains tax laws had been made in 97, the UK now would be a very,very competitive country. As it is, even well paid professional people cannot afford to buy a home and people are being evicted from grossly over priced rental property, I believe this is the same in he USA. This can only lead to unrest and upheaval on a grand scale - insane economics.
I've just seen the fertility in New Zealand ( births per female ) is 1.86 and declining, combine that with people leaving, surly house prices will begin to fall eventually ?
Fertility rate of 2.2 per female is needed to sustain the population.
As the natives get older, the lower and then later higher end jobs will go to new immigrants.
Population is less than our 3rd largest city.
Attractive salaries too, and the Indians going there are better qualified than the locals for the most part.
They can afford to buy houses.
I never understood the logic of paying rent unless your stay was temporary.
As the natives get older, the lower and then later higher end jobs will go to new immigrants.
Population is less than our 3rd largest city.
Attractive salaries too, and the Indians going there are better qualified than the locals for the most part.
They can afford to buy houses.
I never understood the logic of paying rent unless your stay was temporary.
In the US, every city with rigorously enforced rent controls has seen a significant deterioration of their housing stock. On the other hand, when NYC liberalized its rent control regimen, new housing bloomed all over the city.
Hint: property price is way too high.
WAY more people rent than buy property, now you know why.
Very true.
It is also true that new housing in the most part is NOT being bought by average people but by wealthy investors ... who will later RENT them 😉
IF US largest employer is Wal Mart or similar, followed by Mc D and similar, WHO among their low wage employees can BUY?
At best, rent, and even that is a problem.
To boot 20% or more of young adults are staying at their parent´s homes, maybe that means something.
The health care industry is actually the largest private sector employer in the United States, and wages are quite competitive. Average "Registered Nurse" made $75,000 in 2020, while the average doc made $243,000 with specialists making twice that.
WalMart is promising college grads $210,000 as management trainees after 5 years, WalMart truck drivers make in the vicinity of $80,000 to $110,000.
To put it in perspective, could you tell us the median price of a two bedroom apartment and a house in a second tier city (not top ten in population)?
How many years of wages would be needed to buy a house?
How many years of wages would be needed to buy a house?
When I bought my first house, it cost ~3x my annual pretax income. I had an 8.5% 30 year mortgage.
A good chunk of the operating costs are the property taxes and most these support school, police and fire.
That was cheap, here about 10 years of gross for a relatively well equipped house.
Our taxes are negligible, no tracking to local, they are funded partly by the state (police and schools), and fire department is city funded.
Fire engines are paid sometimes by state, and sometimes by corporations as gifts (they are given benefits at times).
Can you tell us the comparison now, as the wages for Wal-Mart, and medical professionals are mentioned above?
Our taxes are negligible, no tracking to local, they are funded partly by the state (police and schools), and fire department is city funded.
Fire engines are paid sometimes by state, and sometimes by corporations as gifts (they are given benefits at times).
Can you tell us the comparison now, as the wages for Wal-Mart, and medical professionals are mentioned above?
That was 25 years back, when price multiples were different.
I was talking about how long a fresh or slightly experienced person, about 30, who has settled into a steady position, would need to work so as to buy a house now...
I was talking about how long a fresh or slightly experienced person, about 30, who has settled into a steady position, would need to work so as to buy a house now...
Sorry jackinjj but Management comprises about 2% of Walmart workforce, can´t be considered an average by any means.
Let alone the "promising" and "in 5 years" qualifying bits, but that´s not the main point.
And truckers anywhere have a POWERFUL Union, they are the top of the crop amongst blue collar workers.
From official statistics:
So a salesman (sorry, "sales associate") earns U$618 per 40 hour week, $2475 a Month ... is that enough to pay a mortgage? Even worse, do those $29702 per year qualify to even apply for one?
Besides "toxic" 2008 style mortgages of course, we all know how that ended.
Won´t bore everybody repeating same Math to all others shown, except being surprised that a stressed cashier earns even less.
Warehouse workers and package handlers earn a little more but they always complain at the abusive backbreaking work conditions, so they are not getting a free lunch by any means.
Much respect to Nurses of any kind, registered or not, but the average Medical worker (apart from Doctors, of course, which are a completely different class) are so-called "Paramedics" ... what may mean "anything", no guarantee of high training, no guarantee of high salaries either.
As of who is the largest employer, BY FAR, judge by yourself:
I rest my case.
The median house price around here (Pittsburgh, PA. USA) is $225,000. The average household income is just under $74,000. Median income is lower as in the city there are many high paid professions. It is $50,500 or so.
So the median house would have a $1,200 a month mortgage. A bit of a reach but under the $1,400 desirable maximum level for a $50,500 income.
Juan, a Walmart sales associate, with a wife doing a part time job could afford the median house. By themselves they could afford a smaller one or one in a less desirable location!
I paid $40,000 for a fix-er-upper in one of the nicer suburbs. It is now worth about the average. I did spend $12,000 redoing it. Originally missing 2 windows etc. Now all new windows and sills, fully insulated. Taxes, utilities etc. run a few thousand dollars a year.
So the median house would have a $1,200 a month mortgage. A bit of a reach but under the $1,400 desirable maximum level for a $50,500 income.
Juan, a Walmart sales associate, with a wife doing a part time job could afford the median house. By themselves they could afford a smaller one or one in a less desirable location!
I paid $40,000 for a fix-er-upper in one of the nicer suburbs. It is now worth about the average. I did spend $12,000 redoing it. Originally missing 2 windows etc. Now all new windows and sills, fully insulated. Taxes, utilities etc. run a few thousand dollars a year.
Health care accounts for ~17% of US GDP -- it is the largest private employment sector. Retail and restaurants are next largest. You won't find (conveniently) the data as most health care businesses are privately held, and the hospitals themselves are parts of foundations.
Teamsters is the largest trucking union, and two of the largest truckers (UPS and FDX) are unionized, but most unionized trucking employees are in short haul. Long haul truckers are largely non-unionized. In the last months of the Carter Administration steps were taken to de-regulate trucking and rail. Trucking is a tough job.
For a long time, McDonalds had created more millionaires than any US business...now it is believed to be Microsoft with WalMart not far behind...
We know that, keep saying that, but healthcare does not show in national charts like the one in post #76 above. US healthcare is splintered so finely that even the majors don't compare to industrial has-beens like IBM. "Blue Cross" is many small companies- the shop in Maine will hardly talk to my New Jersey franchise. Before a recent conglomeration, we had separate clinics or hospitals in every small town along the coast: Bucksport, Blue Hill, Ellsworth, Bar Harbor, all up to Calais.
To my knowledge, the FedEx deliverymen here are all "contractors". Our last guy made a point of telling me he was sorry to leave but he had bid on a better route and apparently he got it. This apparently also covers line-haul, also Amazon.link. Since FedEx dictates everything from shorts to truck (but not hours), there is agitation to call them "employees", with overtime and benefits. (But there may be an ample supply of hustlers who would rather own their own route than be wage-slaves).
US health costs are wildly high compared to India, but it seems the UAE and other countries are not far behind.
Here a cortisone / anti fungal / antibiotic skin cream costs 30 cents and up to $1.20 for a 20-30 gram tube, in the US it would need a prescription from an ordinary doctor, who will refer you to a specialist, who will then give a prescription valid for one transaction (the pharmacy retains it, next time bring a new scrip), costs almost $300 or more.
I paid 80 cents for 6 tablets of Amoxicillin 500 mg + 125 mg Clavulanate, my sister paid $28 for 14 tablets of 1000 + 250 combination in Dubai.
So my take is that since many of the base ingredients are in fact sourced from India and China, the health industry is very lucrative indeed in the USA.
And other countries as well.
Here a cortisone / anti fungal / antibiotic skin cream costs 30 cents and up to $1.20 for a 20-30 gram tube, in the US it would need a prescription from an ordinary doctor, who will refer you to a specialist, who will then give a prescription valid for one transaction (the pharmacy retains it, next time bring a new scrip), costs almost $300 or more.
I paid 80 cents for 6 tablets of Amoxicillin 500 mg + 125 mg Clavulanate, my sister paid $28 for 14 tablets of 1000 + 250 combination in Dubai.
So my take is that since many of the base ingredients are in fact sourced from India and China, the health industry is very lucrative indeed in the USA.
And other countries as well.
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