Dealing With The High Cost of Housing and Rental Prices (#185)

Financial Advisors Say The Darndest Things

Episode Summary:

In this episode of "Financial Advisor: Say the Darndest Things," host AB Ridgeway delves into the alarming rise in housing prices and the underlying factors contributing to this trend. He discusses the impact of increasing delinquencies on mortgages and other loans despite low unemployment rates. AB explores the root causes of the housing affordability crisis and offers insights into potential solutions.

Key Takeaways:

1. Rising Delinquencies and Unemployment: AB highlights the paradox of rising delinquency rates amidst low unemployment, signaling underlying economic challenges. He emphasizes the potential consequences if unemployment rates increase, leading to further spikes in delinquency rates.
2. Past Housing Purchasing Practices: AB reflects on past housing market behaviors, noting instances where individuals purchased homes beyond their means. He underscores the importance of prudent financial strategies, such as bi-weekly mortgage payments, to alleviate financial burdens.
3. Impact of Government Policies: AB critiques the efficacy of government interventions in addressing the housing crisis, suggesting that market forces play a significant role in determining affordability. He advocates for individual responsibility and proactive financial management.
4. Market Rationality and Informed Decision-Making: AB discusses the irrationality of some investors and consumers, attributing market distortions to uninformed decision-making. He encourages listeners to educate themselves on effective financial strategies to navigate market challenges.
5. Empowering Christian Investors: AB concludes by empowering Christian investors with practical strategies to manage mortgage payments effectively. He emphasizes the potential long-term savings achievable through disciplined financial practices, urging listeners to take control of their financial future.

Quotes:

1. "Corporations have always been greedy. Joe Biden didn't suddenly make them greedy. It's supply and demand driving inflation, not just corporate greed." - AB Ridgeway
2. "As Christians, we need to focus on what we can change. By implementing strategies like bi-weekly mortgage payments, we can take control of our financial future." - AB Ridgeway
3. "The market is influenced by both rational and irrational actors. It's crucial for informed investors to make prudent decisions amidst market uncertainties." - AB Ridgeway

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.