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Rising Mortgage Costs & Inflation - Andrew Ragusa- #6174 · Financial Survival Network

• 0:00
  Speaker 1: I'm perplexed because you're watching some of these houses sell
• 0:03
  Speaker 1: for prices that just don't make sense. We have old,
• 0:06
  Speaker 1: old houses that need lots of work selling for a
• 0:09
  Speaker 1: lot of money, and you're watching the average mortgage payment
• 0:13
  Speaker 1: just climb.
• 0:13
  Speaker 2: You're listening to Carrie Lutz's Financial Survival Network, where you
• 0:17
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• 0:21
  Speaker 2: thrive in today's trying times. You need the Financial Survival
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• 0:30
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• 0:35
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• 0:41
  Speaker 3: And welcome you are listening to the Financial Survival Network.
• 0:45
  Speaker 3: I'm your host, Terry Lutz. Well, here we are in
• 0:47
  Speaker 3: the last days of October. We've gotten our long awaited
• 0:52
  Speaker 3: rate cut fifty basis points more probably on the way.
• 0:57
  Speaker 3: What effect, if any, is that having on the real
• 1:00
  Speaker 3: estate market, particularly in my old state, New York. And
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  Speaker 3: our good friend Andrew Ragusa, real estate expert in the
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  Speaker 3: Metro area, is with us now. Great to have you back, Andrew.
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  Speaker 3: So what is going on with real estate in my
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  Speaker 3: old state there?
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  Speaker 1: Well, Garry, I'm glad to be back. Thank you for
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  Speaker 1: bringing me here, and you know, as we were discussing
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  Speaker 1: earlier before we started recording, I'm perplexed because you're watching
• 1:28
  Speaker 1: some of these houses sell for prices that just don't
• 1:31
  Speaker 1: make sense. We have old, old houses that need lots
• 1:35
  Speaker 1: of work selling for a lot of money, and you're
• 1:37
  Speaker 1: watching the average mortgage payment just climb. And now I'm
• 1:41
  Speaker 1: seeing people pay like what you know, about five thousand
• 1:43
  Speaker 1: to five fifty a month just on their mortgage to
• 1:46
  Speaker 1: purchase something, because you know, the average purchase price is
• 1:49
  Speaker 1: probably about six hundred to six fifty, and you got
• 1:52
  Speaker 1: property taxes that are going to be anywhere from twelve
• 1:55
  Speaker 1: to fifteen thousand on average, which is pretty high.
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  Speaker 3: Wow, So you're.
• 2:00
  Speaker 1: Looking at a very high cost of living. I don't
• 2:02
  Speaker 1: know how people are doing it.
• 2:03
  Speaker 3: And to be honest, me neither man me neither. It's
• 2:07
  Speaker 3: you know, you hear about the election. All they're talking
• 2:11
  Speaker 3: about with the election, and you know, cost of buying groceries,
• 2:16
  Speaker 3: cost of buying homes, and how do we bring it down?
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  Speaker 3: And I'm a little skeptical. I don't think anybody has
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  Speaker 3: it in their power to just roll back prices or
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  Speaker 3: even stabilize them, because I remember the last bout of
• 2:30
  Speaker 3: inflation we had from the sixties to the seventies, and man,
• 2:35
  Speaker 3: you know this was like it.
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  Speaker 4: Went on and on for a couple of decades. Yeah,
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  Speaker 4: it's true. And you know what inflation is cumulative. It
• 2:43
  Speaker 4: doesn't just disappear. It has never disappeared. It's always gone
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  Speaker 4: one direction. You may be able to slow down the rate.
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  Speaker 1: At which is it accumulates, but it does not go back,
• 2:53
  Speaker 1: It does not go unreversed. The only way to fix
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  Speaker 1: this problem at this point is to change the money system,
• 3:00
  Speaker 1: talking about going back to sound money, having a gold
• 3:02
  Speaker 1: and silver back currency similar to what the bricks are doing.
• 3:05
  Speaker 1: And it's the only way the United States is going
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  Speaker 1: to be able to survive, frankly, because you have too
• 3:10
  Speaker 1: big of an alliance of all these other countries around
• 3:13
  Speaker 1: the world which have no incentive anymore to use the
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  Speaker 1: United States federal reserve note not dollar federal reserve note.
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  Speaker 1: So now the only thing, the only move we have
• 3:24
  Speaker 1: is to move back to that money.
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  Speaker 3: Yeah yeah, well, but you know they don't want to
• 3:29
  Speaker 3: do it, so they absolutely have to because then they
• 3:33
  Speaker 3: lose their power.
• 3:34
  Speaker 1: Right, Yeah, it's true, it's true. Well, I really like
• 3:38
  Speaker 1: the idea that Trump has been flirting with getting rid
• 3:42
  Speaker 1: of income Tact altogether. He's been talking about it a
• 3:45
  Speaker 1: lot at his rallies and says that he wants to
• 3:48
  Speaker 1: move to a tariff based you know, economy or tariff based, Yeah,
• 3:53
  Speaker 1: to bring in revenue for the government. And that sounds
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  Speaker 1: like a dream, a dream come true. Though, We'll think, Yeah, well,
• 4:02
  Speaker 1: I'll believe it what I see it. What about those
• 4:04
  Speaker 1: new eighty seven thousand new IRS agents, They're all going
• 4:08
  Speaker 1: to be out of a job. You know, he's going
• 4:12
  Speaker 1: to be like the guy from Argentina there, you know
• 4:16
  Speaker 1: how the r malay cut cut, cut, cut cut.
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  Speaker 3: Right.
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  Speaker 1: Hey, you're not going to hear any any empathy from me.
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  Speaker 1: I'm all for it. Goodbye eighty seven thousand of ir
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  Speaker 1: S agents, goodbye high rs. All those government jobs that
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  Speaker 1: are created do nothing but create tax burden anyway, they
• 4:32
  Speaker 1: don't actually, you know, those jobs are not you know,
• 4:35
  Speaker 1: gross jobs. They cost money to have government jobs anyway.
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  Speaker 3: Wait, remember the most fearsome words in the English language.
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  Speaker 3: I am from the government. I'm here to help you, right,
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  Speaker 3: Regan was at that the nightmare. Yeah, so but in
• 4:53
  Speaker 3: your market, like you say, these shacks are going for
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  Speaker 3: big bucks. People are lie, cheating and lying, cheating and stealing.
• 5:01
  Speaker 3: But you know, you know what the upshot is. Even
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  Speaker 3: when mortgage rates are at six seven percent here Andrew,
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  Speaker 3: the real inflation rate probably is double digits. So you're
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  Speaker 3: still coming out ahead if you've got any kind of
• 5:15
  Speaker 3: income and you can lock in the rates and then
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  Speaker 3: pay god willing in a while the rates go down
• 5:21
  Speaker 3: and you refinance, right.
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  Speaker 1: Yeah, I mean, look, I think no matter how you
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  Speaker 1: slice this, FI it's better to have something that you
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  Speaker 1: can own then, not just it's just simply for the
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  Speaker 1: security of the fact that you know your property taxes
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  Speaker 1: may fluctuate. You can't do anything about that, but at
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  Speaker 1: least you won't if you lock in a mortgage rate
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  Speaker 1: at whatever rate it is, it's thick. You can budget
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  Speaker 1: yourself and that just goes through you know, good financial
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  Speaker 1: practice for yourself your family. And then yes, there's the
• 5:47
  Speaker 1: possibility of refining later to lower it. So I still
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  Speaker 1: I understand why people try to make it work. It
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  Speaker 1: just seems to be harder to do on a single income.
• 5:55
  Speaker 1: It's usually a double income that are tackling this.
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  Speaker 3: Now. Yeah, yep, and you know, just buy that inflation's
• 6:02
  Speaker 3: been tamed and it's down to just three percent, right,
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  Speaker 3: so we should all be be dancing and celebrating in
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  Speaker 3: the streets. Right.
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  Speaker 1: Oh yeah, it's absolute nonsense. You know. You know how
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  Speaker 1: I can tell personally when I go grocery shopping, and
• 6:17
  Speaker 1: I watched in the last year, Like, I'm a big
• 6:20
  Speaker 1: red meat guy. I love red meat. I buy steaks,
• 6:22
  Speaker 1: I buy rib eyes all the time. I buy short
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  Speaker 1: ribs and everything. I love it. I can't get enough
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  Speaker 1: of it. But I've watched those prices just creep up
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  Speaker 1: and creep up. It used to be a stale price
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  Speaker 1: was nine to ninety nine a pound, and now the
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  Speaker 1: sale price, all of a sudden, it's fourteen ninety nine
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  Speaker 1: a pound. I'm like, that's the sale price, right, So
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  Speaker 1: then the regular price has gone up to almost eighteen
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  Speaker 1: ninety nine pound. Yeah, and like you can't anyone would
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  Speaker 1: actually have for a functioning green who eats food, you
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  Speaker 1: tell that the inflation is still there and climbing.
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  Speaker 3: If you go to a Holier than thou foods for
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  Speaker 3: your meat like I do because I'm single, so it's
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  Speaker 3: just me, it's even more expensive. It's through the roof. Yeah,
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  Speaker 3: it's true, all right, so is there any movement on
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  Speaker 3: supply though, or more houses coming on the market now,
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  Speaker 3: Andrew or it's still tight.
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  Speaker 1: So it's it's still very tight. But you know what
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  Speaker 1: interesting is people are becoming a little less picky about
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  Speaker 1: what they're buying. And you know, if you're a seller,
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  Speaker 1: you put your house on the market, you don't even
• 7:25
  Speaker 1: have to do any work to it anymore, and you
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  Speaker 1: can literally just put it on and see what you get. Now,
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  Speaker 1: it doesn't mean that people are going to necessarily overpay,
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  Speaker 1: but the chances of it getting sold at the product
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  Speaker 1: of proper price, like I got a ripe, you know,
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  Speaker 1: fair price is very high because someone will take it,
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  Speaker 1: someone will do the work.
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  Speaker 3: You know.
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  Speaker 1: It used to be something buyers would say was, you know,
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  Speaker 1: I love the house, but I have to do a
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  Speaker 1: new kitchen, I have to do a new bathroom, I
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  Speaker 1: have to do new roof. And that was that was
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  Speaker 1: the standard rhetoric every realtor heard every time if someone
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  Speaker 1: wanted to make an offer. Nowadays, it's just what are
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  Speaker 1: you offering them? Because someone else is saying exact same thing,
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  Speaker 1: and they're all willing to do the work. So it's like, Okay,
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  Speaker 1: here's the number, take it or leave it, right, So
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  Speaker 1: if you're a seller, you're in a good position right now.
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  Speaker 3: Mm hmmm. So it's still a seller's market. Huh yeah, absolutely, yeah, amazing,
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  Speaker 3: And it's been that way for so long now.
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  Speaker 1: Well, you know, between us, I don't think it would
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  Speaker 1: be beneficial for anyone if the market switched over to
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  Speaker 1: a buyer's market, because even if you're a buyer and
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  Speaker 1: you're buying a buyer's market, you're not building equity. A
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  Speaker 1: buyer's market means that the price value goes down and
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  Speaker 1: then you're purchasing purchasing something that's not going up in value.
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  Speaker 1: Then you know that's that's not good either. Yeah, I
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  Speaker 1: think it's overall better to be in a seller's market,
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  Speaker 1: but we are way overdue for a price correction where
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  Speaker 1: the prices have to come down to something that's just
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  Speaker 1: a little bit more affordable. Otherwise people are eventually just
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  Speaker 1: going to have to move and list somewhere else because
• 8:57
  Speaker 1: you know, mortgage rate they go up in a little
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  Speaker 1: higher and we start touching six thousand dollars a month
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  Speaker 1: to just live in some areas of Long Island. That
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  Speaker 1: it's crazy. People are going to say, why am I
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  Speaker 1: going to live this kind of lifestyle, especially if they
• 9:11
  Speaker 1: can work remotely?
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  Speaker 3: Yeah, so remote work, You've see people move out to
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  Speaker 3: further suburbs now in New York. Now that even if
• 9:20
  Speaker 3: you can't work one hundred percent remotely, if you can
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  Speaker 3: work you know, fifty sixty seventy percent remotely, go in
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  Speaker 3: two days a week, three days a week to the office.
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  Speaker 3: Makes that commute a lot less backbreaking, doesn't it?
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  Speaker 1: It does. And you know what the biggest change was
• 9:39
  Speaker 1: recently is that a lot of the employers started demanding
• 9:43
  Speaker 1: that their employees come back. And what was interesting is
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  Speaker 1: in twenty one and in twenty two, we've had a
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  Speaker 1: lot of migration out of big cities towards the suburbs.
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  Speaker 1: And then in twenty three and most of the twenty
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  Speaker 1: four there's people going right back, right back into the
• 10:00
  Speaker 1: city because their jobs are demanding that they go back in.
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  Speaker 1: So I think a lot of people made some hasty
• 10:07
  Speaker 1: decisions when they moved the first time, thinking that this
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  Speaker 1: would be a permanent thing. And you know that's part
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  Speaker 1: of what's you know, keeping the market moving and making
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  Speaker 1: sales possible is just people are just still moving around.
• 10:21
  Speaker 3: Yeah, people are still moving. But I know, like my
• 10:25
  Speaker 3: kids who are in their prime earning years, even for them,
• 10:30
  Speaker 3: they are like you know, two three days a week
• 10:33
  Speaker 3: they go to the office. The rest of the time
• 10:35
  Speaker 3: they work from home. So I've noticed that a lot
• 10:39
  Speaker 3: of people are doing that hybrid thing, right.
• 10:42
  Speaker 1: Yeah, well, listen, if you get that opportunity, and it
• 10:46
  Speaker 1: comes down to a personal decision, if you like that,
• 10:48
  Speaker 1: if you're good with that. Me, I would love that
• 10:50
  Speaker 1: opportunity where I can live a little further away. I
• 10:54
  Speaker 1: don't have to go in every day, but I could
• 10:55
  Speaker 1: have a much bigger place. I could have an easier,
• 10:57
  Speaker 1: more affortable budget, and the trade off for that is
• 11:01
  Speaker 1: a little extra driving time a few days a week.
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  Speaker 1: You know, that doesn't sound like a bad plan. But
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  Speaker 1: if it comes down to what each person individually is
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  Speaker 1: willing to do.
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  Speaker 3: Yeah, well, you know, if you have got kids, younger kids,
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  Speaker 3: you want to be there for their events and stuff,
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  Speaker 3: you know it, it really can be a plus. But
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  Speaker 3: like you say, each his own. So any other trends
• 11:27
  Speaker 3: that you're seeing there, like are knockdowns becoming more prevalent
• 11:32
  Speaker 3: to what's your take there?
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  Speaker 1: Well, I can tell you that the houses that are
• 11:36
  Speaker 1: fully renovated and beautiful condition will sell so fast your
• 11:40
  Speaker 1: head will spend will get it done in one weekend.
• 11:42
  Speaker 1: You just put it on the market and one weekend
• 11:44
  Speaker 1: of open houses, it's gone. And yeah, the offers will
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  Speaker 1: be really high. But when even the houses that need work,
• 11:51
  Speaker 1: they may take a little time, but they will get sold.
• 11:54
  Speaker 1: And I was just explaining to Carry, like before we
• 11:56
  Speaker 1: got on his call, I saw our house this weekend
• 11:58
  Speaker 1: for four hundreds hours and that was just over eight
• 12:01
  Speaker 1: hundred square feet total, And I said, I can't believe
• 12:04
  Speaker 1: this house is four hundred thousand And it was a knockdown.
• 12:08
  Speaker 1: It needed to be completely knocked down. It was nothing
• 12:11
  Speaker 1: was savable. Maybe just a concrete foundation could be reused.
• 12:15
  Speaker 1: That just goes to show you what people are spending
• 12:18
  Speaker 1: to live out here in all Island.
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  Speaker 3: And the land, the value of the land, right, you know,
• 12:22
  Speaker 3: that's ye pretty amazing.
• 12:24
  Speaker 1: But you know what, Garry, I also think that some
• 12:27
  Speaker 1: people who are financially savvy know that there is a
• 12:30
  Speaker 1: little bit of a kind of like a flock to
• 12:33
  Speaker 1: hard asset where they're saying, you know, they're not feeling
• 12:35
  Speaker 1: very secure about their cash, their dollar. Some people that
• 12:38
  Speaker 1: don't have the stomach for a stock market that sees
• 12:40
  Speaker 1: record highs every week. It's like, you know, they're saying
• 12:44
  Speaker 1: to themselves, you know, and I'm going to put money
• 12:46
  Speaker 1: in some sort of hard asset, whether it's going to
• 12:48
  Speaker 1: be a home or even gold and silver, which is
• 12:51
  Speaker 1: climbing like crazy, gold hitting record all time highs. Silver
• 12:55
  Speaker 1: is creeping up, and I think this should becoming the
• 12:58
  Speaker 1: trend where a lot of people buying for the sake
• 13:01
  Speaker 1: of just having their money investing into something that's real.
• 13:05
  Speaker 1: So then the event that something bad does happen economically,
• 13:08
  Speaker 1: they do own something that you know, is a safer investment,
• 13:12
  Speaker 1: a lot more security come like an insurance program on
• 13:15
  Speaker 1: their money.
• 13:15
  Speaker 3: It's talking like a libertarian here. I'm through. I've been
• 13:20
  Speaker 3: buying gold and silver since nineteen ninety nine and never
• 13:24
  Speaker 3: looked back. You know, had to sell some stuff on occasion,
• 13:27
  Speaker 3: pay a tax bill, weddings and all that good stuff.
• 13:31
  Speaker 3: But you know, it's like gold's at over twenty seven
• 13:36
  Speaker 3: hundred the ounce going to twenty eight hundred, silver hit
• 13:40
  Speaker 3: thirty five. Of course it had a pullback to be expected,
• 13:44
  Speaker 3: but it's going higher. Everyone is expecting it too. Oh yeah,
• 13:50
  Speaker 3: but you've still got to have a roof over your head, right, absolutely.
• 13:54
  Speaker 1: And that's just why I'm saying these hard assets, these
• 13:57
  Speaker 1: tysnical assets, that's a better term, physical assets are becoming
• 14:02
  Speaker 1: very very wealthy and i'm sorry, very very popular because
• 14:07
  Speaker 1: of the security that they bring. And I think that's
• 14:10
  Speaker 1: also driving the market and people know that they got
• 14:12
  Speaker 1: to own something real.
• 14:13
  Speaker 3: Yeah, and so you got to have a roof over
• 14:16
  Speaker 3: your head, even if you only own a portion of it.
• 14:18
  Speaker 3: The more inflation you have, actually, the more of it
• 14:21
  Speaker 3: you own, and the less the bank ouns.
• 14:23
  Speaker 1: Right, right, roof over your head. Land and things that
• 14:27
  Speaker 1: are of utility. For example, silver had the best utility
• 14:31
  Speaker 1: of all the metals, at least in my opinion. It's
• 14:33
  Speaker 1: using everything electronic solar batteries. You see that. Samsung came
• 14:39
  Speaker 1: out with a massive battery that can hold the charge.
• 14:41
  Speaker 1: I think if they said like five days or something
• 14:43
  Speaker 1: like that, and it usually double the amount of silver.
• 14:46
  Speaker 1: Did you see that?
• 14:47
  Speaker 3: Yeah? Do you know how much how much silver one
• 14:50
  Speaker 3: cruise mistile uses it?
• 14:53
  Speaker 1: Thirteen thirteen million or something.
• 14:55
  Speaker 3: Like that, or five hundred ounces.
• 14:58
  Speaker 1: Oh, I thought it was a lot more than that. Okay, fun, but.
• 15:01
  Speaker 3: Silver, you know, yeah, up that times ten thousand of
• 15:05
  Speaker 3: them and you got like five million ounces there, you know,
• 15:09
  Speaker 3: so right, and that's not just that, it's everything.
• 15:12
  Speaker 1: Right, everything solar, you know, cell phones, cars, computers, everything,
• 15:17
  Speaker 1: and we're we're in a digital age. It's not like
• 15:19
  Speaker 1: technology is going to stop and silver is going to
• 15:22
  Speaker 1: run out. They're going to have to you know it
• 15:24
  Speaker 1: right now, doesn't make sense to even.
• 15:25
  Speaker 3: Dig for it because it's the price is so low, exactly,
• 15:28
  Speaker 3: it's all a byproduct market. All right, Andrew, Hey, we
• 15:31
  Speaker 3: got to run. Just tell us how do we find you?
• 15:34
  Speaker 3: How do we connect with you on the web.
• 15:36
  Speaker 1: So you can find me on Instagram. My name is
• 15:38
  Speaker 1: just Andrew Ragusa. It's A and D R E W
• 15:40
  Speaker 1: R A g U S A. And then also the
• 15:42
  Speaker 1: best way to reach me is just call me five
• 15:44
  Speaker 1: one six eight, five eight nine four three four excellent.
• 15:47
  Speaker 3: All right, Andrew, always a pleasure. We'll talk to you
• 15:49
  Speaker 3: in real soon. Be well.
• 15:50
  Speaker 2: Thanks Gerry, thanks for listening to carry lets this Financial
• 15:54
  Speaker 2: Survival Network your solution to today's trying times. For the latest,
• 15:59
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• 16:05
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