➡ Dan discusses the high cost of housing in Corona del Mar, California, and the financial stress many people are experiencing. He mentions that the Bank of Canada has lowered interest rates due to economic strain, and warns of a looming real estate crisis in Canada. He also talks about the increasing reliance on credit cards for daily expenses, and the rise in unpaid debts. Lastly, he advises people to cut costs, avoid debt, and be financially prepared for potential economic downturns.
➡ The text discusses the current state of the real estate market, focusing on two properties in California. The author criticizes the high prices of these properties, one being a townhouse development on a busy street and the other a house in Huntington Beach, both priced around $1.3 million. The author also mentions a significant number of real estate transaction cancellations and suggests that the market is in a bad state. He argues that these high prices, along with other costs like property taxes and insurance, make buying such properties a poor decision compared to renting.
➡ The text discusses the high costs of home ownership compared to renting, with monthly payments potentially exceeding $7,000, while rent is around $3,400. It warns of the financial risks involved, predicting many people will end up in financial trouble. It also criticizes a scheme where people were given $1,000 a month, stating it led to negative consequences as recipients did not use the money productively. Lastly, it mentions a new law in San Francisco to address homelessness and criticizes the high costs of real estate agents, suggesting direct deals between buyers and sellers could be more beneficial.

Hey, it’s Dan. Welcome back. This is I allegedly, and I’ve got a good one for you today because I’m going to start in Corona del Mar, California. Just a beautiful street. My favorite street. Used to think I wanted to live here until I saw it in summer and realized that everybody else comes up here to the rich neighborhood and parks their car and wreaks havoc during the summer months. Okay. This house behind me, $15,750,000. It can be yours if you financed it. Traditionally, you would have yourself a hundred thousand dollar a month mortgage payment. Yeah. Okay.

The rent, the zestimate for the rent. And I’ll leave the link below for this place. The zestimate said it would rent for about $16,000 a month. So enjoy, enjoy. And by the way, the Pacific Ocean is right behind you. It’s your front yard, you know, so just a beautiful street. But you’re seeing all this stress on the economy and on people’s pocketbooks and on borrowers and everything. So, like, subscribe if I didn’t say that. Share the video comment and let’s get right into it. You know, bank of Canada, for the second consecutive month, has lowered interest rates.

And the big deal with this is that, you know, the bank of Canada sees stress in people’s pocketbooks. You guys, I am telling you, Canada, Canada is going to have such a huge real estate crisis that’s been brewing for years because people cannot afford what’s coming. People cannot afford the fact that they don’t have the same amount of income. Housing prices have gone completely over the top. They’re not the only ones in the world that have had this, you know, credit card interest. We finally get these numbers that trickle in and nobody wants to sit there and think anything about it.

By the way, I’m an Ocean boulevard marigold. Somebody bought a house for millions of dollars. Millions. They’re ripping it down and building something new. Some people have money. Guys don’t, you know, forget that there’s a world that none of us are part of, that is super duper rich. They don’t care about us peasants, let’s put it that way. You know, got another house being built right up there. You can see that, the construction there. I don’t know if I’ll make it that far, but you can see down there the construction of this one house. And what these people do is they just rip the house down.

They’ll spend ten, $12 million on a piece of property and then rip it down and put another five, $8 million into it and build a dream house. Okay, 2nd, 3rd, 4th, whatever. But the one thing that you have to look at is we’ve talked a lot lately about, you know, credit card stress and people that don’t have any money and how people my age and older. I had a meeting this morning where I was talking with a guy who’s turned into a good friend. And we were talking about people our age that are just not prepared for the next five years of life and ten years of life that they have zero money to move forward.

Guys, this is very, very scary to be living like this right now. And you haven’t seen anything yet. But, man, these houses, they’re beautiful, you know? And again, 10 million, 15 million. You’ve got stuff on the street that goes as high as $22 million. Okay? Is it worth it? I don’t know. I don’t. You know, that’s your call if you think a house is worth that much money. The thing I don’t like is to spend $15 million and have no privacy. You’ve got some idiot in front of your house with a camera, filming your house and walking right in front of the house.

There’s nothing. This happens all the time. Get a lot of news crews out here this time of the year. Different real estate people, different people interviewing. You can see the park over here. They’ve got all this stuff happening. This is the same city where they do selling OC. And Josh Altman’s moving down here. The Altman brothers have a new location that’s open up in the next month. And for a million dollar listing, you know, it’s busy. It’s crazy. But here’s that one house I was pointing out to you guys. Look at that construction. Tilted it at an angle so that you have a constant 24 hours ocean view.

Okay, enjoy. But JP Morgan just said that borrowing stress is getting worse than ever. And the borrowing stress is such that people are going out and living on their credit cards right now. They’re not making purchases. They’re using the credit cards for incidentals. They know what you swipe your card for. How do they know that, Dan? You know, because it’s that simple, guys. They know if you’re buying a cruise, they know if you’re buying food from, you know, Kroger. It’s that simple. So look at this thing. See that? Now we got all the different film crews out here.

And what a novel idea to film anyways. But, uh, behind you, I get a kick out of the beach down there. It’s just absolutely stunning. But JP Morgan said two things. Number one, more people are borrowing money right now that are borrowing money just to get by. Plus, I, they’re seeing charge offs that have doubled over the course of the last year. Pace is going in the wrong direction. People that are not paying their bills, they’re borrowing to the hill and they are done. Okay? So, you know, guys filming different stuff. You got Fox eight news out here thinks Fox eight San Diego, but this is one of the southern cities in Orange county, so, you know.

Anyways, Jpe Morgan says charge offs are doubling. Look at this house. This house is there, the house next door, they ripped that down. Now here’s what’s crazy. Sometimes you will see a guy and a gal buy both lots. That’ll be the backyard, that’ll be the house. If you look at this thing and you go down there, this thing is huge. And they’ve built the entire house. So why not spend another $5 million and we can have ourselves a house. Nuts. It’s crazy, guys. It’s absolutely crazy. So the real estate market is completely upside down right now.

You’re going to see huge changes when it comes to buyers, contracts. I’m going to show you a house here in a minute. And I was subjected to this where I wanted to go tour the house. Well, listen, you need to stay, sign an agreement before we let you inside. Pass. Let me give you my attorney’s phone number. You can call him. No, no, no. We want to talk to you, but we just want you to understand that we’re going to have to start having these agreements signed. So we’re getting on it early. No, so what they want to do is you’re going to sign an agreement that if you buy the house, you’re going to pay them the commission.

Pass. You’re not going to represent, you’re not going to represent me and the seller. Why would anybody want to do that? But here is the thing, guys. Get yourself ready financially. Get ready, guys, I am telling you this right now. Nothing looks good right now. And in every business that I’ve talked to, you’ve got to do everything you can to cut back and save money right now and cut costs any possible way you can. So I know you guys want to see this more than ever, but that is Corona del Mar State beach down there. It’s just a beautiful, beautiful spot.

Really, really nice. So anyways, let me know, are you seeing this? Do you know people that are living off their credit cards? It’s a vicious cycle, guys. It’s a cycle you cannot get out of, once you’re in it. And the problem is people then eventually do things like go bankrupt and get charge offs and get their credit destroyed. And I don’t want to see anybody go through that. Just get yourself out of debt. It is a great place to live when you don’t have people that you owe money to every month. You don’t need a car payment.

Buy a car. You know, pay for it in cash. Buy a clunker. Just live through it, work through it. No one cares what you drive, okay? No one cares. A few other things right now that are ridiculous. I was the victim from a hacking through rite Aid, the drugstore, all of our data. If you have a rite aid customer service number, your data was compromised. And they had over a month where they tried to sell the information and give it out. It’s absolutely terrible that they did this. And they’re really, you know, they’re going to give us credit repair nonsense.

They’re going to get their brain suit out for this because what happened was an employee gave the information out that they said so. That is awful, guys. Absolutely terrible. And the Pentagon papers, there’s things from the Pentagon that were released online from a hacking. Read the story below because it’s absolutely fascinating. Isn’t that crazy? So with this, you have all this personal data that was out there and that we just, you know, look at it, guys. I mean, you can read all this stuff and it’s fascinating, but these hacks just happen on a daily basis. None of us are safe.

None of our data is safe. None of our information is safe. It’s just a matter of time until it gets worse. Now, one other thing I did today was I went out and looked at a couple of houses that I think, number one, are ridiculous. Okay? I just think both of these homes show you exactly what’s wrong with the real estate market right now. And let’s start with Tustin, California. Let me show you this. So to continue with our real estate theme, I am in Tustin, California, and I am on Irvine Boulevard. That is the junior high school I went to called Columbus Tustin, where I learned two things.

PE teachers are very weird. And I learned how to be quiet when a woman complimented me and don’t say a word at that point. So I did learn something. But there was an office building across the street from the school. An investor bought the office building and now they built townhomes here. Okay. Isn’t that crazy, guys? So they are building these townhouses directly on Irvine Boulevard. And we’re going to play a game. Gonna play a game. They listed two of these as low income houses. Everything’s attached except for two units that are. These two units right here are not attached, but the final phase is selling out.

And you can live on Irvine Boulevard. You can live right here. Okay? Come on. How much, guys, how much are these? Starting at? It’s absolutely insane. This is called the Jessa at Old Town, by the way. This is nowhere near old town Tustin. It is miles from old town Tustin, and they’re building this. So I’ll get a better shot for you guys. These three story units. Isn’t that nice? Guess, guess, guess, guess. Okay, ready? They start at $1.3 million for this. $1.3 million for the smallest unit. I am talking, guys. You would have to be a delusional fool to buy something like this with how bad the new construction is and how there’s nobody even in the sales office right now during the middle of the day.

This place is a joke, complete joke. Guys, run across the street without getting hit, but get you a better shot of this thing. That is insane, guys. That’s it. Look at those. Isn’t that beautiful? $1.3 million. Now, your house payment would be over $8,000 a month to live there. You understand how insane this is? This is what’s gotten nuts. So they took an office building and ripped it down. It’s the Jessup. Come on, guys. It’s the Jessup at Old Town in the end. The corner of Prospect and Irvine Boulevard in Tustin, California. This is an absolute joke.

You have no backyard. You’ve got a balcony and you’ve got parking, and it’s going to be insane. But that’s that, guys. $1.3 million. This is what’s wrong with everything right now. I don’t believe that they’re selling as quickly as they say they’re selling. They have people there right now. They’d be begging to take your money. But the final phase, you can buy it right now. So correct me if I’m wrong. Let me know, guys, what you think about this, because I think it’s insane. I think you’d have to be losing your mind to buy a place like this.

Now, they ripped down an office building like this. And next door, this is where you get to live, which was an office building. It’s right across the street from the junior high school. But look. Look at that, guys. Look at that boxed unit. Seriously, look at that. $1.3 million. You first guys, you first. Now, here is what’s disturbing, and you should think about this right now. You have houses sitting on the market longer than they have in the last ten years. That’s number one. Number two, since Redfin opened in 2017, we haven’t seen this many cancellations.

Four contracts in one month. Think about this. 56,000 people canceled their real estate transaction last month. That’s over 15%. That is a staggering number, guys. That is a number that is worrisome, because what is the main reason for cancellation? Well, that’s the thing. There are vague numbers. They are vague numbers that have read the article. The last minute of last minute reasons. People get cold feet. People realize that. Oh, my God. I have an association, by the way, this place has a homeowners association, too. Won’t that be nice to pay that for this place at $1.3 million now, principal, interest, taxes, and insurance.

I am telling you, you’re going to see this be such a debacle because nobody wants to look at the fact that we. Real estate sales, which, June is normally a hot month. It is normally a great month, and it was down in the first number, 6.2%. That is staggering, guys. July is a bad real estate month, and you haven’t seen anything yet. So good luck, guys. Good luck. But for those of you people that are out buying mortgages, the average sale, $432,000, which I don’t know, where the hell you buy a $432,000 house. Seriously, don’t start talking cities.

I want to see infrastructure. I want to see a city. I want to see restaurants. I want to see things to do in your community. I don’t want to live in a hut out in the middle of nowhere, because you guys send me that stuff, too. And it’s, hey, you could be my neighbor, and there’s no neighbors for 5 miles. Okay, kookaburra, I’d love to be your neighbor, but average mortgage rate for those sales, 6.92%. It’s the average mortgage rate. Oh. Now, again, you have to have stellar credit to be to get those great rates. Don’t forget that.

Don’t forget that. Don’t forget your property taxes, which, here, think about this. I want you to think about this number. Your property tax in this building would be well over $14,000 a year. Okay, so it’s over $1,000 a month for air for nothing. Don’t forget your homer’s insurance. Well, I can self insure. If you pay cash, maybe. But if you have a mortgage, they’re going to require you to have an insurance policy. Remember, dogs bite people. People trip and fall. You know, things happen. Guys doorknob falls off and lands on a guy’s foot and he wants to sue you.

You yelled at somebody, they got money coming. You know what I mean? It’s ridiculous. That’s the world that we live in. Remember, everything is great. And you could live there for $1.3 million and have everybody on top of you and look at, they have no backyard. So enjoy. You could be 1st first to be left. Okay. Selling fast. It says selling fast, so let me know. Okay. Imagine you live on that busy street. You have common walls. You’ve got very narrow driveways. You can’t have a pet. I mean, people do. And I think it’s cruel to have them inside these, you know, monstrosities where you don’t have a backyard and the dog can’t be left alone to go pee.

I think it’s terrible. But that being said, will you pay $1.3 million for a place like that? Now, the meeting I had this morning, they were talking about, isn’t it crazy that they’re trying to convince us that these places are selling out and you couldn’t get through the front door because nobody’s there. If they were selling like crazy, like hotcakes and just everybody’s got to get one, wouldn’t they be open on a regular basis? You would think so. So the next thing is Huntington Beach, California. I want to show you something else. It’s completely ridiculous. Take a look at this.

So I’m in Huntington Beach, California, and just to show you how crazy it has gotten, we have a friend that lives in the street and a house just became available. And this house right here is. Guess. Come on, guess, guess, guess. Okay. $1,350,000. It’s lunacy, guys. It’s got a pool. It’s got 1800 square feet. It’s got a patio. Right, I think should be ripped down. But the point is, is that this house right here at a million, 350,000. I want to tell you how off this is in the sense that you’re going to put down a down payment, pay closing costs, things like that, and then you’re going to have a payment.

If you just follow the zillow rules, you’re going to have a payment of about $8,600 a month. Wow, wow, wow, wow. Okay. Don’t forget your taxes. Don’t forget your, you know, your insurance, too. And again, it’s not a fire damage area. It’s not anything like that. Flood area, nothing like that. But that house right there, okay? You’re gonna have another $14,000 a year in property taxes. Hello. Now this street, right now, guys, street rents for $3,400 a month. So let’s do the math on that. You have a payment of about $9,000 a month, if not more.

Okay? And you can rent your house out or rent a house in the street for $3,400 a month. Guys, what would you rather do? Okay, right now it’s getting crazy. Now this is not everywhere. I understand the average house is, you know, under $500,000. But guys, this is nothing special. And my friend said, you’ve got to see this. You got to come over and check this out. Now there are two other people in the street that have closed escrow in the last year and a half and they both have payments well over $7,000 a month. And again, the rent, $3,400 a month.

So let me know what you think about that, guys, because it’s crazy. It’s crazy, guys, who’s going to pay for that? Think about this. You could rent on that street for in the $3,000 range, but your house payment could be $8,600. You first. Enjoy. Good luck. You’re going to see a tremendous amount of people that are going to be completely upside down and own properties. Their businesses will be destroyed, their marriages will be destroyed, their futures will be destroyed because this will be much worse than last time. Remember that? Huh? That guy’s crazy. Okay? They just did a survey and a report.

They gave over, you know, 1000 people, $1,000 a month to live on. And guess what? It had negative consequences. The people that were given the month that did not have to work, had no drive and didn’t excel themselves, did not move their self forward, did not spend money on their education, did not spend money on their healthcare. They pissed the money away. So isn’t that crazy, guys? Absolutely crazy. Imagine that. You give somebody free money and they just squander it. Wow. Imagine that. I’m gonna go buy a, you know, $400 pair of socks. Okay, enjoy. Final, final story is, and I love this because it’s too little, too late.

San Francisco’s just passed a law where they’re going to clean up the homeless encampments and get the homeless inside. We’re going to get them off the streets. No, people are not traveling to the city. Businesses are folding left and right. Businesses are starting to sue these municipalities for the work that they’ve done, because they are, you know, guys are upset because he’s running in the middle of the street. So anyways, you’re going to start seeing more of this where they’re going to start cleaning things up because it’s the right thing to do. No, it’s ridiculous. It never should have allowed this in the first place.

You’ve allowed chaos in your streets. You’ve allowed drugs to be sold, kids lives to be put in dangers, tourist lives we put in danger. And now, you know what? We’ve decided to clean it up. And people that are running for reelection are not going to get reelected because in the most liberal of towns, they are sick of this, fed up with it, and they’ve had enough. So hope you guys enjoyed this. Share your thoughts. And all this stuff. It’s interesting to look at this stuff, but I am telling you, you would have to be a glue sniffing fool to buy some of these properties right now.

Now, it’s one thing if you can afford a $15 million house in a neighborhood like this. Enjoy. Okay, that’s your, that’s your own deal. But the problem is, is that I, people are just getting by right now, and the kool aid that people are drinking right now is that they’re sitting there going, oh, don’t worry. We’re going to continue to make this money. It’s going to be great. Now, the guy I met today has a friend’s family. The mom passed away. There’s three siblings. They all own the house. And let’s go talk to the neighbor, my buddy, who’s always been nice to mom and see if he wants to buy the house first.

That’s the type of deal you guys need right now where you can get your own financing, not deal with a real estate agent, make an offer to the family. One guy once bought out, somebody wants just to put it off for a few years before they get their money. You could go buy the place and then get a second mortgage from a bank and go out and just have it. Sit there, have them earn interest on it, and then refinance it in three or five years or whatever. Okay. There’s a lot of things you can do.

But to pay top dollar, pay these agents, I think it’s going to be a thing of the past, guys. I really do. Let me know what you think about this. Okay. The real estate agents lose their minds every time I talk about this. Because why is it that this family is contemplating that sale? Because they won’t have to pay agents. Gosh, this thing will save 6%. We won’t have the closing costs. This guy will get his own financing. How great is that? Let’s do it. Okay. Okay. I know you guys are freaking out. It’s fantastic. Okay, write me helloedgedly.com.

and lots gonna happen, guys. Big changes in the economy. Bunch of announcements on the channel, too, but just beautiful, beautiful day. Okay, share your thoughts, guys. Let me know. Onward and upward. I’ll see you soon.
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