or Connect
Styleforum › Forums › Men's Style › Streetwear and Denim › Random fashion thoughts
New Posts  All Forums:Forum Nav:

Random fashion thoughts - Page 7083  

post #106231 of 109053
@Dbear the market we're in isn't the same as the rest of the country (not trying to stunt). People offer 20% over ask all cash in one weekend for houses even without visiting them. We're talking $1mil + asking for even town houses or small single family homes.
post #106232 of 109053
Quote:
Originally Posted by dieworkwear View Post

If you need to move because of family or career reasons, you might not be able to find a buyer at the time and price you need. So you can get stuck with mortgage payments and not even be living in the place. 
 
You just rent the place out then - until you feel comfortable with market prices and demand to sell it.   Rent should cover most of your mortgage payment with the crazy low interest rates these days.

 

 

Quote:

Originally Posted by dieworkwear View Post

My last apartment sold for $800k (I wasn't the buyer, obviously). My landlord was stuck trying to sell it for about two years. It was lowered from a million to $800k. He sold it cause he had to move his family back to the Philippines.
 

It may sound cynical but... the house did not sell for 1m because it was worth 800k.   Over-pricing real estate and letting it linger for two years is the best way to kill it on the market - potential buyers just dismiss the nosebleed pricing and don't come back.  It's hard enough to get attention, it's nearly impossible to get people to come back after it lingers at a high price for too long.  It's a MUCH better idea to underprice the ask, get a lot of interested parties and let a price war happen.

post #106233 of 109053
Quote:
Originally Posted by gdl203 View Post

It may sound cynical but... the house did not sell for 1m because it was worth 800k.   Over-pricing real estate and letting it linger for two years is the best way to kill it on the market - potential buyers just dismiss the nosebleed pricing and don't come back.  It's hard enough to get attention, it's nearly impossible to get people to come back after it lingers at a high price for too long

I don't know for sure what he paid for it, but when I was doing some research on it, I think he paid something around $650k. Which over the course of like 8-10 years of him owning it, seems like a small return once you account for property taxes, repairs, realtor commissions, etc.

I agree you can rent a place out. It just seems like it creates a lot of potential hassle. My friend current rents his home in PA out to a family and is trying to sell it. But getting people to move into a home that's also on the market for sale hasn't been easy, so he's had to take a loss on a few months of mortgage payments.
post #106234 of 109053

Housing bubble in my country (Spain) was huge, freaking huge. At some point in 2007 more houses were being built in Spain than in the UK, France and Germany together. Entire new cities were being built in the middle of nowhere. 16 year old guys were leaving school and working as construction workers for a salary that people with University degrees could only dream of. People were buying houses and selling them in a few days for a very good profit. It obviously all crashed.

 

I don't know how it is in other places, but the mantras here were:

 

- Renting a place is throwing money away.

- Prices will never decrease.

- You can sell whenever you want. Or at least rent it.

- Inflation will make it easier in time to pay off the debt.

 

Obviously all of them were blatantly wrong. Now prices have fallen a 50% or more, there's hundreds of evictions every week because people can't pay their mortgages (some commit suicide when it happens), unemployment rate has risen from 8-9% in 2007 to 25% and obviously those school drop outs blew all their money in cars and such because they thought it would last forever. There's true deflation so debt is growing and not getting smaller... a true disaster.

 

I could comfortably buy a house with no mortgage now. But I won't, simply because a) I don't know where I'll be living in a couple of years. I've lived in 4 different places in 3 years. b) I haven't really found a place where I'd like to settle. Buying and selling, even if it was relatively easy (and it isn't here right now as I've stated above), is a huge hassle compared to just calling your landlord/lady.

 

So for me paying a rent is definitely not throwing my money away. Now ask whoever bought a place for, say, 300k euro, in the peak of the housing bubble, and that is unable now to sell their place for 150k, what throwing money away is, they probably know.

 

And it's not just old houses in not-so-great locations that have fallen, also 5-6-7 million euro mansions in the coast (say Mallorca) for rich people (many from abroad, european or russian) are selling for half the price or less.

 

And beware the 'housing bubble is a thing of the past, it happened and it recovered' statement. It might be very well true, if the housing bubble in those areas was not as huge as in here. But where housing bubble has been big (like in Japan a few years ago or here), they follow a pattern:

 

 

So watch out for 'bull traps'.

post #106235 of 109053
Quote:
Originally Posted by Coldsnap View Post

I think I disagree with you guys. It's better to be building equity with that money than throwing it away for rent, plus some of it is tax deductible. Even if you loose some money in the end, you have to compare it to what you would have lost paying rent. Like my rent is over a thousand dollars. I could get something equivalen/better for $150,000, the mortgage on that would be about $600-700. In that situation I ask why do I bother renting.

I don't like in NYC or Cali though, which maybe that would make me more hesitant. And I'm not talking about $800,000 apartments.

If I could buy a place for $150K I would in a heart beat. Right now I rent a place worth about $600-$650K for $1575. Average home prices in my town are over $600k. Any place I would actually want for long term is closer to $800K. I'll be here for about 4 more years then probably back to my home county where I can at least buy bare land (20 acres or so) for about $250-$300K and improve as desired. Too little value where I am now.
post #106236 of 109053
Quote:
Originally Posted by dieworkwear View Post
I agree you can rent a place out. It just seems like it creates a lot of potential hassle. My friend current rents his home in PA out to a family and is trying to sell it. But getting people to move into a home that's also on the market for sale hasn't been easy, so he's had to take a loss on a few months of mortgage payments.

The "rent it out" scenario is much harder than it seems.  Apart from the difficulty of getting someone into a place that is also for sale, and the general undesirability of month-to-month leases and the client they attract, it's a full time job.  I have a friend (an ex landlord of mine, hah!) who owns over 50 properties in the Boston area, and is extremely successful.  He did it by having a small crew and being able to do a lot of the work himself (he was previously a contractor).  The margins, even in highly desirable areas, can be extremely tight, and you can pretty easily go from being in the black to being in the red.  A few properties don't rent, there is damage or need to do some heavy maintenance on a property, etc... and bam, you are losing money, especially if you have to hire externally.

 

I own a house in a pretty stable area, but I don't expect a huge return on it.  I do hope that I don't ever actually lose money on it.  I did think about the equity building part of things when we bought the place, but mostly, I like having my own place, and not having to deal with landlords, the uncertainties 12 month leases, especially with a young family, and also, because I hate moving (my parents live in the same house they bought in 1979, so... it's apparently hereditary)...  We got this at the very bottom of the market, and have a very good rate.  But even so, I try to not think about it as an investment.  That would just cause me a huge headache. 

post #106237 of 109053
Quote:
Originally Posted by Cacatfish View Post

There was quite a significant fail about 7 years ago.

Not in some parts of the bay
Quote:
Originally Posted by cyc wid it View Post

@Dbear the market we're in isn't the same as the rest of the country (not trying to stunt). People offer 20% over ask all cash in one weekend for houses even without visiting them. We're talking $1mil + asking for even town houses or small single family homes.

I don't think people will ever believe it unless they see it first hand
post #106238 of 109053
Quote:
Originally Posted by Cacatfish View Post

If I could buy a place for $150K I would in a heart beat. Right now I rent a place worth about $600-$650K for $1575. Average home prices in my town are over $600k. Any place I would actually want for long term is closer to $800K. I'll be here for about 4 more years then probably back to my home county where I can at least buy bare land (20 acres or so) for about $250-$300K and improve as desired. Too little value where I am now.

This area is great, RTP area of Raleigh NC. Places that affordable and jobs which pay good wages due to the tech industry out here.
post #106239 of 109053
Quote:
Originally Posted by cyc wid it View Post

@Dbear the market we're in isn't the same as the rest of the country (not trying to stunt). People offer 20% over ask all cash in one weekend for houses even without visiting them. We're talking $1mil + asking for even town houses or small single family homes.

This is absolutely a consideration.  And it's not "cali", it's San Francisco specifically, and some of the more desirable counties elsewhere, like Marin.  But it doesn't take too many BART stops to hit places where people are still underwater and where house values continue to decrease.

 

So, yes, if you have a big cushion and are the market for million dollar houses/apartments in really desirable areas, then buying is probably a good idea.  For more typical Americans, however, the answer is generally not so clear cut.

post #106240 of 109053
Quote:
Originally Posted by stevent View Post

Not in some parts of the bay
I don't think people will ever believe it unless they see it first hand

Not just the Bay. There are pockets around the country that didnt decline. Was responding to the idea that CA was overall fail-safe.

Most houses here go over asking also. Crazy. SF is just insane$ for what you get.
post #106241 of 109053
Quote:
Originally Posted by dieworkwear View Post
But getting people to move into a home that's also on the market for sale hasn't been easy, so he's had to take a loss on a few months of mortgage payments.
Quote:
Originally Posted by LA Guy View Post

The "rent it out" scenario is much harder than it seems.  Apart from the difficulty of getting someone into a place that is also for sale, and the general undesirability of month-to-month leases and the client they attract, it's a full time job.  

 

As I said above, you rent it out until the market is better for your property, at which point you can consider listing it again.   So (1) take it off the market, (2) rent it out for a year, (3) re-assess.  This is the normal MO when trying to sell a place one is looking to vacate and pulling it because the market isn't there.   Gotta make decisions in life, letting a piece of property on the market empty for 2 years because a buyer may show up next week is bad decision-making.  Changing course towards a lower risk path and re-assessing later is good decision-making.   Any trustworthy RE broker (not an oxymoron) would tell you to pull it off the market and rent it out. 

 

Renting out one apartment is not a full-time job...  

post #106242 of 109053
Quote:
Originally Posted by Ken P View Post

Found a couch from DWR on Craigslist for $100 dollars. Could stand to be reupholstered but I still consider it a good deal compared to retail.

Craigslist is great for furniture that has bedbugs.

Ftfy
post #106243 of 109053
Cupertino, Saratoga, Palo Alto (not East), Los Altos and a few other places were barely affected if at all 7 years ago. It's not just SF, San Mateo, Marin.
post #106244 of 109053
Quote:
Originally Posted by cyc wid it View Post

@Dbear the market we're in isn't the same as the rest of the country (not trying to stunt). People offer 20% over ask all cash in one weekend for houses even without visiting them. We're talking $1mil + asking for even town houses or small single family homes.

It's when people do crazy things like that when I'd seriously start worrying about.

 

And I'm guessing it's mostly due to Silicon Valley, so there's another potential bubble that can burst. Some people argue we're in a new .com bubble. While I hope it's not true (I work in IT too) I sometimes think some companies have outrageously inflated value in the stock market.

post #106245 of 109053
Quite a bit driven by tech, but it's been like that for years. Lots of foreign money too. Maybe not like NYC luxury apartment level, but there's quite a bit of that going on. HK people buying houses that get torn down and rebuilt or stay empty until their kid comes over here to attend community college. Etc.

Man.... 20 acres for $650k satisfied.gif
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Streetwear and Denim
This thread is locked  
Styleforum › Forums › Men's Style › Streetwear and Denim › Random fashion thoughts