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re: Cost to buy = $2,700/month. Cost to rent = $1,850/month
Posted on 5/24/23 at 2:18 pm to stout
Posted on 5/24/23 at 2:18 pm to stout
quote:
I just bought a flip that is a 12-year-old house that had storm damage but the people walked away from finishing the repairs on. It doesn't need a lot to finish up. A house 3 lots down that has been repaired was bought by a young couple that looked at both houses and didn't want to bother with the repairs. They could have saved $90K if they had motivation.
We have been over this exact situation with you.
It’s completely unreasonable to compare yourself, a real estate professional with decades of rehab and residential construction experience, to people with regular 9 to 5s.
I’m sure you pay out the arse for shite in your life that the provider thinks is “easy” or “not that hard”.
1
Posted on 5/24/23 at 2:23 pm to stout
Joe Biden's America
Posted on 5/24/23 at 2:23 pm to JohnnyKilroy
quote:
It’s completely unreasonable to compare yourself, a real estate professional with decades of rehab and residential construction experience, to people with regular 9 to 5s.
I am saying they could have saved $90 with a $50K allowable to repair this house. They could have easily hired someone to do what is left for that. I am doing it for less as a professional so I was being generous and giving them some room. They flat-out didn't want the hassle and said as much to the seller.
quote:
I’m sure you pay out the arse for shite in your life that the provider thinks is “easy” or “not that hard”.
Outside of a medical procedure, I doubt it. Growing up lower middle class in a rural area as I did you learn to DIY just about anything out of necessity and even as an adult when you have money you still appreciate the value of being able to DIY stuff.
This post was edited on 5/24/23 at 2:25 pm
Posted on 5/24/23 at 2:27 pm to stout
Never hired a lawyer? Accountant? Tax Advisor? Broker/Agent?
Posted on 5/24/23 at 2:27 pm to stout
Maybe they make enough money where $40K doesn’t really matter?
Posted on 5/24/23 at 2:27 pm to stout
quote:
How long do you think the housing market can handle 7% mortgage rates? Mortgage applications are way down
It was double digits in the 80's and 7% would have looked like a bargain. Give it time.
Posted on 5/24/23 at 2:28 pm to stout
This discrepancy is why Inflation has been higher than what's been reported.
When looking at the Shelter category of CPI, the federal government (starting in the 80s or 90s, I believe) stopped looking at actual home values but created this abomination called OER (Owner's Equivalent Rent). What this means is that instead of basing home value on... well... home value, they calculate how much a home-owner would be paying in rent if they were renting their home.
This has skewed Inflation down as rents haven't risen nearly as fast nor as far as home prices. As home sales shrink due to higher interest rates we should expect rent rates to increase due to increased demand for rentals (since people aren't buying homes). As home prices drop, inflation in the Shelter category should remain "sticky" as actual home values drop and rents increase.
When looking at the Shelter category of CPI, the federal government (starting in the 80s or 90s, I believe) stopped looking at actual home values but created this abomination called OER (Owner's Equivalent Rent). What this means is that instead of basing home value on... well... home value, they calculate how much a home-owner would be paying in rent if they were renting their home.
This has skewed Inflation down as rents haven't risen nearly as fast nor as far as home prices. As home sales shrink due to higher interest rates we should expect rent rates to increase due to increased demand for rentals (since people aren't buying homes). As home prices drop, inflation in the Shelter category should remain "sticky" as actual home values drop and rents increase.
Posted on 5/24/23 at 2:28 pm to GeorgeTheGreek
Who said $40K? They could have spent $50 and still saved $90. IDC who you are $90K matters. If they had that kind of money to spare they would be buying a nicer area.
Posted on 5/24/23 at 2:34 pm to stout
There's a whole lot of complaining in this thread instead of looking at ways to problem solve.
It is all I need to know about who is who and what is what.
3 billion years of successful, problem-solving procreation. And we have folks who throw their hands up at the first thought of "hard". It's so hard.
shite. I'd laugh if it wasn't so sad.
It is all I need to know about who is who and what is what.
3 billion years of successful, problem-solving procreation. And we have folks who throw their hands up at the first thought of "hard". It's so hard.
shite. I'd laugh if it wasn't so sad.
Posted on 5/24/23 at 2:36 pm to JohnnyKilroy
quote:
Never hired a lawyer?
Legal Zoom covers most of my legal needs outside of RE transactions but a title opinion is worth $350 and not greatly overpriced.
quote:
Accountant? Tax Advisor?
Are you really comparing hiring a specialist that has gone to school for something vs being able to install some cabinets, trim, paint, put down floating vinyl flooring, etc? A monkey could do those things but a monkey can't make sure all of my subs get a correct 1099 Misc
Those things aren't even in the same ballpark.
Posted on 5/24/23 at 2:39 pm to stout
In a perfect world, the interest rate should not matter too much as long as there is a corresponding shift in housing prices. The FED's unprecedented hike in interest rates should in theory result in a similar decline in housing prices, which has happened somewhat but not even remotely enough to get to equilibrium.
One of key key problems is on the supply side where inventory will remain stagnant as people who purchased houses on 2% rates will not move.
The only way I see housing normalizing is through a really bad recession that causes a spike in unemployment.
One of key key problems is on the supply side where inventory will remain stagnant as people who purchased houses on 2% rates will not move.
The only way I see housing normalizing is through a really bad recession that causes a spike in unemployment.
This post was edited on 5/24/23 at 2:43 pm
Posted on 5/24/23 at 2:40 pm to tigerinthebueche
quote:
Oh cry me a fricking river. People like you act as if you're the first one to have your experience. Every generation has its challenges. You just think you're special cause its happening to you. Get over yourself.
Right on queue.
Posted on 5/24/23 at 2:46 pm to PEwannabe
quote:
Thankfully I have a duplex with a nice (both looking and attitude) tenant that pays 60% of my mortgage in rent.
Pic of disposition?
Posted on 5/24/23 at 2:50 pm to Samso
quote:
The FED's unprecedented hike in interest rates should in theory result in a similar decline in housing prices,
Mortgage rates aren't based on the federal funds rate. They tend to follow the treasury yield of a pre-existing 10 year note on the open market.
Posted on 5/24/23 at 2:51 pm to stout
I paid 7% in the mid 90’s. It’s no big deal
Posted on 5/24/23 at 2:56 pm to stout
(no message)
This post was edited on 9/11/25 at 6:30 am
Posted on 5/24/23 at 2:56 pm to stout
People that bought investment properties outright or with low interest can undercut new homes. Housing prices being high themselves is not enough reason for me to think prices are going to crash.
Posted on 5/24/23 at 2:59 pm to CSinLC
Waiting on the foreclosures...
Posted on 5/24/23 at 3:05 pm to stout
quote:
Outside of a medical procedure, I doubt it. Growing up lower middle class in a rural area as I did you learn to DIY just about anything out of necessity and even as an adult when you have money you still appreciate the value of being able to DIY stuff.
That is exactly how it was for us. My hubby had just done some stuff helping his dad and another friend of our also just did stuff. My hubby and his friend just figured it out. Bathroom isn't finished out...ok, trip to Home Depot (and another 10, probably) talk to folks, try stuff, talk to more folks, try more stuff. Figure it out. Hell, this was 20 years before the internet and 30 before you tube.
This is what we did on the weekends. We did all the painting. We put in tile, fixtures, etc. We put in blinds, wallpaper, fans, etc. I do feel like people now think that's too much work and want their weekends for golf and fun stuff.
Posted on 5/24/23 at 3:05 pm to stout
Response to OP 10 pages ago-
I'm "lucky" that I bought my first (and current) house in 2017 after renting for 20+ years. In this current market, frick buying a house. Sure my house is literally double in value right now, but I can't chip off a piece of siding and take it to the grocery store, so it's not real money. But the property tax assessors don't care.
My property taxes now exceed my principal payment, my interest payment, and my insurance payment; in escrow.
Anyway, I advise anyone listening to not buy a house right now. "Rite of Passage" needs to be done at the "rite" time. We are in a bubble. It will pop.
I'm "lucky" that I bought my first (and current) house in 2017 after renting for 20+ years. In this current market, frick buying a house. Sure my house is literally double in value right now, but I can't chip off a piece of siding and take it to the grocery store, so it's not real money. But the property tax assessors don't care.
My property taxes now exceed my principal payment, my interest payment, and my insurance payment; in escrow.
Anyway, I advise anyone listening to not buy a house right now. "Rite of Passage" needs to be done at the "rite" time. We are in a bubble. It will pop.
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