Invest that money instead. No matter your tax bracket, your effective rate on that mortgage trails inflation.
More real estate doom and gloom
- Thread starter Toshi
- Start date
Good lord. I thought we'd gotten a smoking deal on a 15 year at 3.5. Congratulations on that.
While my ladies house is still about $45k underwater and she couldn't refi because of it so shes at like 5% or some crap.
On a lighter note, the douchebag neighbor just got notice from the bank that his house is for sale Jan 17th (he stopped making house payments about 18 months ago).
Now if only the bank would do something with the zombie house on the other side of us. Must be something to do with the fact he's in prison (child molester, no less) because it's been empty nearly 3 years now. Some landscapers came in and did the yard a few months ago, but there is still notices on the door about contacting the bank concerning the house. If someone would occupy it, that would help our value (I hope).
On a lighter note, the douchebag neighbor just got notice from the bank that his house is for sale Jan 17th (he stopped making house payments about 18 months ago).
Now if only the bank would do something with the zombie house on the other side of us. Must be something to do with the fact he's in prison (child molester, no less) because it's been empty nearly 3 years now. Some landscapers came in and did the yard a few months ago, but there is still notices on the door about contacting the bank concerning the house. If someone would occupy it, that would help our value (I hope).
There are 3 houses on my street (that I know of) that are in some stage of foreclosure. One has been empty for at least 2 years. I find that exceptionally odd given how strong the rental market is here, what with all the military people in this town.On a lighter note, the douchebag neighbor just got notice from the bank that his house is for sale Jan 17th (he stopped making house payments about 18 months ago).
Now if only the bank would do something with the zombie house on the other side of us. Must be something to do with the fact he's in prison (child molester, no less) because it's been empty nearly 3 years now. Some landscapers came in and did the yard a few months ago, but there is still notices on the door about contacting the bank concerning the house. If someone would occupy it, that would help our value (I hope).
I've run out of analogies for "history repeating itself":
http://www.bloomberg.com/news/articles/2015-03-26/u-s-home-prices-are-surging-13-times-faster-than-wages?hootPostID=1a958142d1e156b100c8797ff1df0396
http://www.bloomberg.com/news/articles/2015-03-26/u-s-home-prices-are-surging-13-times-faster-than-wages?hootPostID=1a958142d1e156b100c8797ff1df0396
Didn't read the whole article - but a lot of those markets were ones that were absolutely BURIED by the last explosion, weren't they? I'd guess that skews the numbers at least somewhat...
On a lighter note, the zombie house next door went to auction yesterday and sold to a flipper. I was at the house yesterday morning when a dude parked in front of my neighbors house. I thought he was going to put the eviction notice on his door when he came over to talk to me.
He says "Do you know anything about the house next to you? Nobody seems to know where the owner is."
I told him the owner went to prison about 4 years ago for molesting his step daughter. It's been empty ever since and minus the appliances and fixtures the family stole before they left, its actually a pretty nice house.
The bad news is the opening bid was $156k, he got it for $157,500. Apparently people didn't want to bid since they didn't know how to find the owner, he had the inside scoop. I hope he can sell it for at least $250k or I might be stuck in the sticks forever.
He says "Do you know anything about the house next to you? Nobody seems to know where the owner is."
I told him the owner went to prison about 4 years ago for molesting his step daughter. It's been empty ever since and minus the appliances and fixtures the family stole before they left, its actually a pretty nice house.
The bad news is the opening bid was $156k, he got it for $157,500. Apparently people didn't want to bid since they didn't know how to find the owner, he had the inside scoop. I hope he can sell it for at least $250k or I might be stuck in the sticks forever.
I have friends in PDX, people I love dearly that I've know since high school, but who have never once in their entire lives made a good finical decision and have always had the sort of luck that it's been safe to bet against. Today their house went on the market for 300k. A not great place, in a not great neighborhood and they are looking to move and "upgrade". The place in WA that we sold in 04 for 165k, shows a zillow estimate of 230k. Things are super dumb in DEN. My real estate buddy in LA is starting to run out of folks who can afford anything. Feels very 2006 to this neophyte. Thoughts?
I need to talk to @stoney on how I can bet on the inevitable collapse.
I need to talk to @stoney on how I can bet on the inevitable collapse.
Here in Mazzholistan, we have a massive influx of wealthy Chinese with tons of cash in their pockets who are killing mortgage-bound folks in the market, especially in places with good schools. As a result, my taxes doubled in the past 5 years. I am quite sure LA is similar.
Save up money and buy a rental property after the price drops? Or short REITs, perhaps?
Denver is a different environment currently. It is the fastest growing major city in the US. There is a huge number of people from CA moving here and they are bringing their CA housing market money with them. Getting into fall prices are pulling back, but for the 3-4br market it shouldn't drop more than 2-4%. However, the larger house markets are dropping quickly. I have seen some 10%+ drops in the last month in the 5+ space.
Houses for rental are very hard to find right now, as cash investors are buying up anything underpriced. Given we are moving back into a renter's society (renters paying <40% of income on rent), the opportunity there is getting expensive.
Realistically, unless you need to move, most will be better off staying where they are. I include myself in this list, as buying a new home right now is stupid.
I have no intention of going anywhere at this point. We're 7ish years from no mortgage. My point is only that's it's all starting to feel (to me) very "bubble-ish". Enough so that I could see myself speculating on the next bust.
I think most of you can just imagine what is happening here....
Talked to a buddy of mine the other day whose son just bought his first home in denver. He got a zero down, greater than the value of the house loan. He's 24.
Millennials - the future's so bright... something something something.
why do we need so many new homes? i call homebuilder bias bs. i've never owned a "new" one and don't plan to. call me stupid, but i don't get it.
Because of population growth, perhaps? Too bad homes aren't portable: there's a glut of homes in all the dead and dying cities in the rust belt...
It's quite common to transport whole houses down here..... Popular with people that want an old villa.
http://www.brittons.co.nz/Information/Movinga2-storeyhouse.html
https://alphaspecialisedmovers.wordpress.com/
http://www.brittons.co.nz/Information/Movinga2-storeyhouse.html
https://alphaspecialisedmovers.wordpress.com/
I don't want a new one, but if they build one that someone in a nice 50's Portland craftsman house (near U of P would be nice) buys and moves into so I could have theirs, that would be nice.
Something like this, maybe?
Something like this, maybe?
I personally love having a new house. Tall ceilings, open kitchen layout, all the insulation in the world, nice efficient 21 SEER AC. It's the little things.
Of course it'd be nice to have trees larger than 3" around in my neighborhood. That'll come with time.
Of course it'd be nice to have trees larger than 3" around in my neighborhood. That'll come with time.
Your lack of imagination disturbs me...
There was a house in Forest Grove that was right on the corner covered in trees. We thought it was condemned. A few years after we moved, we saw what they did. They cleared the lot (it's a HUGE lot), build a new foundation on a far edge, moved the house to the new foundation and built a garage.They aren't all old houses......
19th & Douglas You can see it in the google street view history (barely).
<edit> I think the house was built in 1901 or some crazy crap.
I love how short peoples' memories are.
Right? If the timing is right we might be mortgage free by the time the bottom falls out again.I love how short peoples' memories are.
If the market tanks again, we would probably just look to buy another rental property close to the bottom.
As long as I get to sell on the high, and buy on the low. I bought on the high and sold on the low first time, bought on the low and sold while still low last time. The wifey bought her place on the near peak last time ('06), so we hope it rebounds to get at least 20% out of to stash for the next buy.
What bank?
I don't recall. I'm not even sure I was told to be honest.