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Author Topic: House Buying  (Read 16529 times)

reinko

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Re: House Buying
« Reply #150 on: August 11, 2022, 06:04:41 PM »
Currently in a holding pattern hoping this is a bubble about to burst

The market by us has cooled, but inventory is still quite low. At least buyers generally aren’t going over 20-50K over ask, with waiving inspection…I think buyers have more  leverage than they did a few months back, and if houses sit more than 2-3 weeks you’ll see price reductions.

Lennys Tap

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Re: House Buying
« Reply #151 on: August 11, 2022, 06:28:44 PM »
I thought this a couple of years ago that we were in a bubble.  I have been seriously convinced otherwise.


A bubble a couple of years ago? LOL. That’s about the time real estate just began to explode.

MU82

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Re: House Buying
« Reply #152 on: August 11, 2022, 07:44:34 PM »
From the WSJ today:

In 184 out of 185 metro areas, the median sale price for an existing single-family home in the second quarter rose from a year earlier. According to the National Association of Realtors, the national median is a record $413,500.
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The Sultan of Semantics

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Re: House Buying
« Reply #153 on: August 11, 2022, 07:53:38 PM »
Reeks, listen ta Hards, Fluffy BM, Jockster, and Smithy cuz dem youngsters no everythin', hey?


 
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Still salty because you don't understand monthly inflation statistics?
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TAMU, Knower of Ball

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Re: House Buying
« Reply #154 on: August 11, 2022, 10:49:33 PM »
I thought this a couple of years ago that we were in a bubble.  I have been seriously convinced otherwise.

Your area may be different, but materials are very expensive still, and there isn't a ton of inventory.

We bought a second property a few years ago and are very glad we did.

I'm the opposite. I've been thinking that this wasn't a bubble and the best move was to grit my teeth and pull the trigger on a ridiculous offer. Lately, I've been reading some things that lead me to believe that we will see a significant correction in the next year or two. Hope I'm right, renting is a bitch.
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mu_hilltopper

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Re: House Buying
« Reply #155 on: August 11, 2022, 11:40:13 PM »
Agree on the concept of not being afraid of bidding high if you want the house.

Imagine the $400k house .. bidding $440k seems outrageous, but .. it's 10%.   Had you gotten the house at $400k, its value will be $440k in 1-2 years anyhow. .. Not withstanding a housing crash, of course.    It's hard to see a housing surplus any time soon.

As for getting a "good inspector" .. that's fine.  But no doubt, if you're buying in a location that has low inventory, unless the house has nuclear waste in the back yard, the seller will just wait for the next bidder.

The Sultan of Semantics

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Re: House Buying
« Reply #156 on: August 12, 2022, 04:26:15 AM »
Agree on the concept of not being afraid of bidding high if you want the house.

Imagine the $400k house .. bidding $440k seems outrageous, but .. it's 10%.   Had you gotten the house at $400k, its value will be $440k in 1-2 years anyhow. .. Not withstanding a housing crash, of course.    It's hard to see a housing surplus any time soon.

As for getting a "good inspector" .. that's fine.  But no doubt, if you're buying in a location that has low inventory, unless the house has nuclear waste in the back yard, the seller will just wait for the next bidder.

I bought a house in 2007 - just before the real estate crash. When I sold it 11 years later, I made a very modest gain. About 1.5% annual return if you include the commission. I likely would have had to sell at a loss if I had sold it any time within the first five or six years of ownership.

But we loved the house. If I had it all over, I wouldn’t have changed a thing. (I did make a killing on the house I sold to buy the one back in 2007. So that eases the pain a little.)
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4everwarriors

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Re: House Buying
« Reply #157 on: August 12, 2022, 05:35:10 AM »

Still salty because you don't understand monthly inflation statistics?





I understand my monthly grocery bill, hey?
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Hards Alumni

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Re: House Buying
« Reply #158 on: August 12, 2022, 06:12:32 AM »
A bubble a couple of years ago? LOL. That’s about the time real estate just began to explode.

8,000 members of your generation are dying every day and so I assumed that many of the homes that you've been sitting on would find their way to market.  Instead, investment firms have snatched up properties left and right and rent them instead of selling. 

Lenny, if you knew that the real estate market was only going to explode then why, pray tell, are you not wholly invested in real estate instead of the stock market?

I'll tell you.  Because hindsight is 20/20 and you knew as much as I did at the time.  So while you're attempt to make fun of my prognostications regarding real estate a decade ago seems hilarious, know that you are simply calling yourself and anyone who didn't chase real estate from that time period equally foolish.  Dumb take, as usual.

muwarrior69

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Re: House Buying
« Reply #159 on: August 12, 2022, 06:58:06 AM »
We just agreed terms on a duplex yesterday. Two 3BR units and in good shape. Strictly investment, got a 4.5% rate and will be inheriting two tenants both on month-to-month. Really hope to keep them (both have been there for 4+ years) but need to raise rents to cover the mortgage.

I am sure the mortgage also includes paying the property tax as well. Will your rental income also cover any maintenance or repairs when they come up (ie. central air/heating, kitchen appliances, plumbing, leaky roof etc.).

The Sultan of Semantics

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Re: House Buying
« Reply #160 on: August 12, 2022, 07:25:05 AM »
I understand my monthly grocery bill, hey?

So you don't understand monthly inflation stats. Thanks for the confirmation.
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4everwarriors

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Re: House Buying
« Reply #161 on: August 12, 2022, 08:49:55 AM »
O, bye da wey. Make sure ewe back da dude hoo didant dismantle da once grate skool system, hey?



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Uncle Rico

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Re: House Buying
« Reply #162 on: August 12, 2022, 08:52:41 AM »
O, bye da wey. Make sure ewe back da dude hoo didant dismantle da once grate skool system, hey?



#freerocket2022v2

#freeziggy2022

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Lennys Tap

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Re: House Buying
« Reply #163 on: August 12, 2022, 08:58:33 AM »
8,000 members of your generation are dying every day and so I assumed that many of the homes that you've been sitting on would find their way to market.  Instead, investment firms have snatched up properties left and right and rent them instead of selling. 

Lenny, if you knew that the real estate market was only going to explode then why, pray tell, are you not wholly invested in real estate instead of the stock market?

I'll tell you.  Because hindsight is 20/20 and you knew as much as I did at the time.  So while you're attempt to make fun of my prognostications regarding real estate a decade ago seems hilarious, know that you are simply calling yourself and anyone who didn't chase real estate from that time period equally foolish.  Dumb take, as usual.

You thought we were in a real estate “bubble” a couple of years ago. A couple of years ago the general economy/stock market had roared back from the crash. The real estate market had only limped backed, barely surpassing pre crash values. You saw this as a “bubble” because 8000 evil baby boomers were dying daily? Totally ignoring the supply side and value side of the equation? Lazy, simplistic analysis - while, as you point out, the smart money was buying.

As to my investments, I’m 73. It’s no longer prudent for me to chase trends. I’m fortunate that I don’t need to. I’m still somewhat over invested in real estate - I have some money with a private equity fund in that space - but I sold the rental home that I bought in 2012 this year.


Hards Alumni

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Re: House Buying
« Reply #164 on: August 12, 2022, 09:08:24 AM »
You thought we were in a real estate “bubble” a couple of years ago. A couple of years ago the general economy/stock market had roared back from the crash. The real estate market had only limped backed, barely surpassing pre crash values. You saw this as a “bubble” because 8000 evil baby boomers were dying daily? Totally ignoring the supply side and value side of the equation? Lazy, simplistic analysis - while, as you point out, the smart money was buying.

As to my investments, I’m 73. It’s no longer prudent for me to chase trends. I’m fortunate that I don’t need to. I’m still somewhat over invested in real estate - I have some money with a private equity fund in that space - but I sold the rental home that I bought in 2012 this year.

Glad to see you're predictions played out to your benefit.  Can I borrow a buck?

Skatastrophy

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Re: House Buying
« Reply #165 on: August 12, 2022, 09:10:11 AM »
Agree on the concept of not being afraid of bidding high if you want the house.

Imagine the $400k house .. bidding $440k seems outrageous, but .. it's 10%.   Had you gotten the house at $400k, its value will be $440k in 1-2 years anyhow. .. Not withstanding a housing crash, of course.    It's hard to see a housing surplus any time soon.

As for getting a "good inspector" .. that's fine.  But no doubt, if you're buying in a location that has low inventory, unless the house has nuclear waste in the back yard, the seller will just wait for the next bidder.

Unless I had $50k in cash (after accounting for downpayment/closing-costs), I would not waive an inspection.

Regarding low inventory: If you have a decent-sized network in the area you're looking, ask those people if they know anyone that's considering selling their homes. A lot of people are sitting on the sidelines instead of listing because of current economic uncertainty, and picking up an off-market home can save you a ton of money if you're comfortable closing the transaction with just attorneys and not agents.

wadesworld

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Re: House Buying
« Reply #166 on: August 12, 2022, 09:26:33 AM »
What are the thoughts on waiving the inspection for newer builds?  When we were looking it was pretty much at the height of the craziness and we missed out on the first house we put an offer on even though we put a pretty aggressive offer in, so we were considering waiving the inspection in future offers because we were looking at mostly newer houses.  We ended up not having to do that and had our offer accepted a couple hours after we submitted it on the second house we offered, but would people be somewhat comfortable waiving the inspection on a house that was built in 2019?
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Hards Alumni

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Re: House Buying
« Reply #167 on: August 12, 2022, 09:34:34 AM »
What are the thoughts on waiving the inspection for newer builds?  When we were looking it was pretty much at the height of the craziness and we missed out on the first house we put an offer on even though we put a pretty aggressive offer in, so we were considering waiving the inspection in future offers because we were looking at mostly newer houses.  We ended up not having to do that and had our offer accepted a couple hours after we submitted it on the second house we offered, but would people be somewhat comfortable waiving the inspection on a house that was built in 2019?

Define newer.  Under two years?  Sure why not.  The house had been fully inspected upon completion.  After five years?  Was the builder reputable?  I'd get it inspected.  The house has been fully lived in and any major problems will start to develop.  A 2019 build?  You'd probably be safe waiving, but the builder's reputation would be something to look into instead.

brewcity77

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Re: House Buying
« Reply #168 on: August 12, 2022, 09:44:01 AM »
I am sure the mortgage also includes paying the property tax as well. Will your rental income also cover any maintenance or repairs when they come up (ie. central air/heating, kitchen appliances, plumbing, leaky roof etc.).

By a little bit. It will take a little time for the property to build itself a maintenance fund, until then it'll be out of pocket and write-offs. We're factoring all the and hoping to make some improvements to hopefully keep the tenants even as we raise rents over the next 2-3 years.
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Uncle Rico

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Re: House Buying
« Reply #169 on: August 12, 2022, 09:52:26 AM »
What are the thoughts on waiving the inspection for newer builds?  When we were looking it was pretty much at the height of the craziness and we missed out on the first house we put an offer on even though we put a pretty aggressive offer in, so we were considering waiving the inspection in future offers because we were looking at mostly newer houses.  We ended up not having to do that and had our offer accepted a couple hours after we submitted it on the second house we offered, but would people be somewhat comfortable waiving the inspection on a house that was built in 2019?

Newer houses, yes, though as said, check the history of the builders.

In my neighborhood, the houses were built in the 50’s and people are waiving the inspection to buy and it’s insanity.  At least with newer houses you can hope the previous owners couldn’t do too much damage but houses with multiple owners or single, long-term owners, no way.  I’m selling a family members house who didn’t do any upkeep.  The house needs so much work and updating, anyone offering without an inspection?  Well, buyer beware
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muwarrior69

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Re: House Buying
« Reply #170 on: August 12, 2022, 10:15:04 AM »
Newer houses, yes, though as said, check the history of the builders.

In my neighborhood, the houses were built in the 50’s and people are waiving the inspection to buy and it’s insanity.  At least with newer houses you can hope the previous owners couldn’t do too much damage but houses with multiple owners or single, long-term owners, no way.  I’m selling a family members house who didn’t do any upkeep.  The house needs so much work and updating, anyone offering without an inspection?  Well, buyer beware

My In-law's home needed a lot of work as well. It is not only the buyer's inspectors but some townships won't let you sell until they issue a certificate of occupancy. We had more issues with the township getting everything up to code.

Uncle Rico

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Re: House Buying
« Reply #171 on: August 12, 2022, 10:19:37 AM »
My In-law's home needed a lot of work as well. It is not only the buyer's inspectors but some townships won't let you sell until they issue a certificate of occupancy. We had more issues with the township getting everything up to code.

I think we’re ok in that regard where the house is but other than the roof and furnace, it’s a whole project
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Hards Alumni

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Re: House Buying
« Reply #172 on: August 12, 2022, 10:21:01 AM »
By a little bit. It will take a little time for the property to build itself a maintenance fund, until then it'll be out of pocket and write-offs. We're factoring all the and hoping to make some improvements to hopefully keep the tenants even as we raise rents over the next 2-3 years.

I assume you've looked into this, but remember to depreciate your rental property.

https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp

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Re: House Buying
« Reply #173 on: August 12, 2022, 10:23:04 AM »
I think we’re ok in that regard where the house is but other than the roof and furnace, it’s a whole project

If the structure, electrical, and plumbing are fine... I would leave it up to the buyer to redo what they want. 

MU82

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Re: House Buying
« Reply #174 on: August 12, 2022, 03:16:15 PM »
I assume you've looked into this, but remember to depreciate your rental property.

https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp

Yep. My daughter and her husband have a couple of rental properties, and they say some of the best value they get is in the tax treatment of the properties.
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