TerryP
Staff
@It Takes Eleven where would I find those numbers?
| CURRENT EVENTS Cash purchases versus financed purchases.
- Thread starter TerryP
- Start date
Do you mean what percentage of homes are cash versus financing? That varies dramatically by market and property type. South Florida condos, due to it being a haven for Central and South American wealth, are as much as 80 percent cash sales.
TerryP
Staff
Wow. No. I was talking about overall debt. Overall spending. A rabbit hole I've fallen into...
Okay.
www.newyorkfed.org
This will give you consumer debt levels, which are at an all-time high, but it doesn't get to an estimate of total assets held in households or, depicted in another way, household net worth. Either of those, compared to the amounts above, would get you to an estimate of what's owned and what's owed.
This data (same site, just toggle between tables/charts) compares total assets, total debt, and resultant net worth. The rapid rise in residential real estate and financial asset values masks rising debt levels in many households. If you were to break that down into income or net worth quartiles, you'd probably see some negative trends for the lower end; however, this study below is from 2021 and shows the lower end getting a boost, I think from all of the transfer payments during Covid:
In terms of who pays cash and who finances, nationally about 30 percent of new car buyers pay cash, and 32 percent of home buyers pay cash.
Hope this helps.
Household Debt and Credit Report
Unique data and insight into the credit conditions and activity of U.S. households
This will give you consumer debt levels, which are at an all-time high, but it doesn't get to an estimate of total assets held in households or, depicted in another way, household net worth. Either of those, compared to the amounts above, would get you to an estimate of what's owned and what's owed.
The Fed - Chart: Balance Sheet of Households and Nonprofit Organizations, 1952 - 2024
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
The Fed - Table: Balance Sheet of Households and Nonprofit Organizations, 1952 - 2024
The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
This data (same site, just toggle between tables/charts) compares total assets, total debt, and resultant net worth. The rapid rise in residential real estate and financial asset values masks rising debt levels in many households. If you were to break that down into income or net worth quartiles, you'd probably see some negative trends for the lower end; however, this study below is from 2021 and shows the lower end getting a boost, I think from all of the transfer payments during Covid:
In terms of who pays cash and who finances, nationally about 30 percent of new car buyers pay cash, and 32 percent of home buyers pay cash.
Hope this helps.
TerryP
Staff
Great reads. It's the rabbit hole I've fallen into. Thanks!
TerryP
Staff
@It Takes Eleven I seem to recall we started a conversation about this recently. May not have been you?
I'm probably carrying about 10K in debt btwn Discover and Visa. Chippin' away, ya know? Things like an $800 dollar stove tend to add up. The decking I'me building on the east side of the house? The 4x4's are what...$12 a piece?
I'm building three levels, maybe four. I thing the deck planks were $8. The Cabot stain was around $50. I think the 2X4's were $4.
Gotta say it again. Make it makes sense.
I don't consider these purchases, charged, to be bad decisions versus spending the cash.
Here's some shit.
Cap One sent me an offer today for a card...at 29+%. No interest in the first year...but then. Bam. I'd have to go in the trash to tell you the actual rate...wanna say it was 29.86. Stupid. Just stupid.
Tim, this is literally as bad as those car title places taking 30% off of loans. Those check lending places.
I'm right back. Make it make sense.
I'm probably carrying about 10K in debt btwn Discover and Visa. Chippin' away, ya know? Things like an $800 dollar stove tend to add up. The decking I'me building on the east side of the house? The 4x4's are what...$12 a piece?
I'm building three levels, maybe four. I thing the deck planks were $8. The Cabot stain was around $50. I think the 2X4's were $4. Gotta say it again. Make it makes sense.
I don't consider these purchases, charged, to be bad decisions versus spending the cash.
Here's some shit.
Cap One sent me an offer today for a card...at 29+%. No interest in the first year...but then. Bam. I'd have to go in the trash to tell you the actual rate...wanna say it was 29.86. Stupid. Just stupid.
Tim, this is literally as bad as those car title places taking 30% off of loans. Those check lending places.
I'm right back. Make it make sense.
Paying the large banks' huge interest on their cards is a losing proposition. I'd find a local bank or credit union and bank with them, and get their lower interest credit card (I think the rate from one of my credit unions is 10 percent), or get a personal loan from them, again in the 10-12 range and pay off the cards. My rate on the Amex is stupid high, but I pay it off every month and have never paid interest on it, I funnel my monthly spending through it and the Costco Visa for the benefits/cash back. Again, if I carried a balance the value of those benefits would be wiped out, which is what they're banking on.@It Takes Eleven I seem to recall we started a conversation about this recently. May not have been you?
I'm probably carrying about 10K in debt btwn Discover and Visa. Chippin' away, ya know? Things like an $800 dollar stove tend to add up. The decking I'me building on the east side of the house? The 4x4's are what...$12 a piece?
Gotta say it again. Make it makes sense.
I don't consider these purchases, charged, to be bad decisions versus spending the cash.
Here's some shit.
Cap One sent me an offer today for a card...at 29+%. No interest in the first year...but then. Bam. I'd have to go in the trash to tell you the actual rate...wanna say it was 29.86. Stupid. Just stupid.
Tim, this is literally as bad as those car title places taking 30% off of loans. Those check lending places.
I'm right back. Make it make sense.
Lumber prices are down right now, so you'd have to decide if the additional interest your construction expenses, along with the opportunity cost of not decreasing your current debt level, is the move you'd like to make. Of course, you're balancing that with the utility that you'll get out of the deck over the same time, too.
footballer
Member
I paid off my $7000.00 Visa debt around a year and half ago. It took most of 2 years to do as I was still using it. I am now mostly a pay cash as I go with my stash cash or use my bank card and am still using my Visa sometimes. My only debt is my mortgage and utilities of course. My 2000 GMC paid off in 2004 and my 2007 Highlander was paid for when I drove it home in 2021.
My brother builds 50-60 a year, almost half of his are cash sales.
When the rates where lower it was about 75% finance according to him.
He built mine just before the rates went up, so I financed mine while my money was making more than the interest.
That's pretty high. Does he build in over-55 developments, or cater to individuals building their homes for retirement?
No, there’s a few retirees. Most people that pay cash are moving from areas that are just to expensive to live. Selling family homes and moving here.
