Vacation Home Buying Fizzling. RV's too?

[harryjr]

How many think this article from the Washington Post could be reprinted substituting "RV's and Boats" for "Vacation Homes"? Those monthly payments are going to start looking ugly when you're finding it hard to pay for gas and food.

https://www.washingtonpost.com/business/2022/05/04/pandemics-vacation-home-buying-frenzy-beginning-fizzle/

[WinMinnie02]

Washington posts or any other media may have some good points but most is entertainment at best.

Gas shortage may be a problem, not price for those who can afford the RV lifestyle. In 2008 I was filling my propane gas tank, some idiot asked where I was heading, I said within 3 hours drive. They replied gas prices keeping you close to home, I said not really don't need to travel far in motorhome to avoid people and enjoy the outdoors. Going on 20+ years same unit.

[Wade44]

Inflation in a nut shell, or should I say a cardboard can.

Pringles Potato Chips, Walmart, Jan 2022, $0.97
Pringles Potato Chips, Walmart, May 2022, $1.78


There you have it LOL.

[cptqueeg]

cptqueeg wrote:

restlessways wrote:


If I may clarify, I wasn't talking about mortgage debt per se, so I'm not sure where you got that impression. snip....

Perhaps using the the phrases "zero debt" and "For somebody like me who purchases things in cash" would give one the impression that mortgage debt was included.

As for now people have mtg rates that are very cheap and they have jobs so as long as they stay on the treadmill it will work out. There isn't sufficient housing anywhere so that market is very stable.(read today there are only 2 places in the US with 10% or more of the housing stock under 150K)

Some will have health issues, and/or astronomical medical bills or lose their job, or gad forbid lose their partner but by in large most will get through it.

[monkey44]

When we bought our home five years ago, we picked one on the internet we liked a lot ... and called for a peek ... The agent that was selling it said, "You qualified for a house twice that expensive. I've got more to show you."

"No you don't," Genie said. "We want this one." So we bought it same day and did some interior renovation ourselves. Good bones to work with, and fine outside. Now we have a small mortgage, cars and RV paid for. No kids no more 🙂 Even grand kids are grown. And a few bucks to spend on RV'ing and vacations.

It takes a little planning, some luck with investments, and the ability to say "NO" and mean it.

[restlessways]

cptqueeg wrote:
"most will be completely wiped out" - That is some doom and gloom right there.

I'm conservative financially, but we've had mortgages and we've survived multiple layoffs, dot com bust, 9/11, the collapse of 2008, bad years in business, etc, etc. I'm blessed by a hard working wife that has strong business skills, I owned a dependable business, and good health. We now have zero debt, it feels great! (used to be a big Dave Ramsey fan, although he turned out to be a creep) Most people not only do fine w mtg debt they prosper. Those who have a mtg(s), college loans(theirs or kids), multiple car loans, and pile consumer debt on top of that, well they're reckless. And I've seen many others that take a lot more risks than me and they've actually come out way further ahead financially. Like they say "there is more than one way to skin a cat."

If I may clarify, I wasn't talking about mortgage debt per se, so I'm not sure where you got that impression. I'm talking about all the people who are leveraged to the teeth with all kinds of debt. 2nd and 3rd speculative houses, expensive vehicles, boats, RVs, crypto, stocks, etc. You would not believe how many gamblers there are out there right now. It's all crashing as I type.

[valhalla360]

cptqueeg wrote:
"most will be completely wiped out" - That is some doom and gloom right there.

I'm conservative financially, but we've had mortgages and we've survived multiple layoffs, dot com bust, 9/11, the collapse of 2008, bad years in business, etc, etc. I'm blessed by a hard working wife that has strong business skills, I owned a dependable business, and good health. We now have zero debt, it feels great! (used to be a big Dave Ramsey fan, although he turned out to be a creep) Most people not only do fine w mtg debt they prosper. Those who have a mtg(s), college loans(theirs or kids), multiple car loans, and pile consumer debt on top of that, well they're reckless. And I've seen many others that take a lot more risks than me and they've actually come out way further ahead financially. Like they say "there is more than one way to skin a cat."

"Completely wiped out" might be a bit of an exaggeration but it is the rare individual with lots of debt who does prosper and the current population skews heavily in that direction. When you have lots of monthly payments, it's much harder to weather a financial problem like a layoff, the damage is greater and it takes longer to get back to where you were.

On the other hand, those who stay debt free or close to it, tend to weather downturns better. They have more flexibility to pair back expenses and fewer mandatory payments going out.

There's always the exception. Occasionally the casino pays out big but much better to be on the house side with the odds in your favor. In the long run, it's very unusual for the house not to win.

[cptqueeg]

"most will be completely wiped out" - That is some doom and gloom right there.

I'm conservative financially, but we've had mortgages and we've survived multiple layoffs, dot com bust, 9/11, the collapse of 2008, bad years in business, etc, etc. I'm blessed by a hard working wife that has strong business skills, I owned a dependable business, and good health. We now have zero debt, it feels great! (used to be a big Dave Ramsey fan, although he turned out to be a creep) Most people not only do fine w mtg debt they prosper. Those who have a mtg(s), college loans(theirs or kids), multiple car loans, and pile consumer debt on top of that, well they're reckless. And I've seen many others that take a lot more risks than me and they've actually come out way further ahead financially. Like they say "there is more than one way to skin a cat."

[restlessways]

Grit dog wrote:
One thing is for certain, we have yet to fully realize the downstream effects of the mess created by the pandemic.
I don’t claim to be a smart man or have the answers and those that do claim to understand it are likely posturing, as we all should be in our own way.
Not a zombie apocalypse prepper. But also not an ostrich.
Been bit by recession and also capitalized on it, and yes something still smells a little different about the current situation. (Maybe it’s my sense of smell after having the Rona, but everyone would be well served to stay a bit aloof and protect their own interests the best way they see fit.) Remember, you can only control what YOU do.

I like to stick to the basics which have always served me well. Zero debt, and the belief that "it's never 'different' this time." I hear stories of new paradigms almost weekly from friends and acquaintances. I don't believe any of it. They're all just talking their book because they want to get rich without having to work hard. I work for what I have, and I don't gamble to try to get ahead. Sure, that's worked for some, but most will be completely wiped out.

[Gary45]

Hope just a recession and not a depression, every country in the world has massive debt and with never before low interest rates individuals have borrowed well beyond what they can ever repay.

[markandkim]

We're about to see the biggest recession we have ever seen in our lifetime. You need to enjoy this summer as much as you can. I believe the RV industry is only fooling themselves. It is going to crash hard soon. They make it sound like it's going to improve later this year. No way. I would not buy anything now if you don't want to regret it later. The RV sales lot that were near empty are now overflowing. Save your money if you don't need one now.

We are ready to pay cash for our fulltime truck and rig right now, but no freaking way. We will stay in our current set-up for now.

Protect everything you have.

Just try to find a truck right now and you'll know what I'm talking about.

Try getting warranty work, accident work or other major work done on what you have.

Even rental cars are through the roof, if your lucky to get one in some places.

Can anyone else see the writing on the wall?

Diesel near $7.00 in New England and still rising!!!

[cbshoestring]

My brother looked at a toy hauler listed at $40,000. Everyone told him dealers would not negotiate, because sales are sizzling.

He offered $30,000.

They came back at $35,000

He told them he really needed to be at 30, because he was going to need a WDH plus numerous accessories.

They settled on 31,500. Dealer provided/installed WDH. Plus gave him $250 in store credit for some goodies.

They are atleast back to recognizing the 30% markup that they don't really need.

[Grit_dog]

One thing is for certain, we have yet to fully realize the downstream effects of the mess created by the pandemic.
I don’t claim to be a smart man or have the answers and those that do claim to understand it are likely posturing, as we all should be in our own way.
Not a zombie apocalypse prepper. But also not an ostrich.
Been bit by recession and also capitalized on it, and yes something still smells a little different about the current situation. (Maybe it’s my sense of smell after having the Rona, but everyone would be well served to stay a bit aloof and protect their own interests the best way they see fit.) Remember, you can only control what YOU do.

[cptqueeg]

In our vacation area the WFH crowd and Air BandB investors and converters gobbled up all the inventory leaving the locals with no place to live. Any slight weakening of the market or increase in inventory will be met by demand from those locals(and in some cases their employers) that have been forced out of their rentals in the past 2 years.

[way2roll]

Wade44 wrote:

way2roll wrote:
Housing prices are up because there is a shortage of homes in desirable areas. Lots of demand, no supply. We see supply and demand issues affecting literally everything right now, mostly a fallout of Covid. This is a completely different and normal part of economics and the sky is not falling. The Fed is increasing rates to help curb inflation caused by this unpredicted supply and demand issue. Not to mention they haven't raised rates in a very long time. It's not doom and gloom.

I wonder what $11.00 2X6X93-5/8" studs and $37.00 sheets of 7/16" OSB have to do with it LOL. I never knew how much I enjoyed the Lowe's Saturday special every once in awhile with the $4.97 7/16" OSB.

I look at it all using other barometers however, such as my fertilizer costs, some of which are up over 400% which is unprecedented, it's new territory and its gotten / going to get ugly. I won't get started on diesel / fuel prices. The sky fell over a year ago and you're walking on it, it is soon going to crack. You can not eat your house.

I hear you on fuel costs. it's definitely a head scratcher. If supply and demand are supposed to be the factors in determining rising costs, that does NOT explain the continual rising cost of diesel. Plenty of supply, yet here we are. Coincidental there is a big push for EV's? And yes, building costs are up. That wouldn't explain the rising costs of resales though. It's pretty common knowledge inventory on pre existing homes is very low. That dictates the risings costs. This thread is about vacation homes fizzling. And my point through these posts is that it isn't. Not sure where the author got their facts but that's not the case in my area. For every home about to go on the market there are 30 offers waiting. Many sight un-seen and all over ask with heavy cash incentives. All of them under contract in a day. I could sell my house tomorrow for easily double what I paid a few years ago. Of course I'd have to have somewhere to go. Thought of hitting the road full time in my FW with my cash and wait til the market settles... We are actively looking for a piece of land to do just that.