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re: Every time I passed on a real estate purchase because the price was too high...
Posted on 10/12/23 at 11:26 am to Chad504boy
Posted on 10/12/23 at 11:26 am to Chad504boy
quote:
what's happening is people aren't selling/moving from what they have to hop into something a little bit better because of having to flip their mortgage interest rate from 3% to 7.75%.
Exactly, and because of that the supply of homes is still lagging behind demand. Before the rate increase I was always tentatively in the market, but I’m not trading in my 2.75% rate for a 7% rate unless I win the lottery that I don’t even play.
0
Posted on 10/12/23 at 11:31 am to sidewalkside
Just because people are passing on real estate right now doesn't mean they'll be in a worse situation down the road. That's an absurd thing to say and you are retarded.
Posted on 10/12/23 at 11:31 am to Epic Cajun
quote:
but what you can afford is what you can afford. It’s unlikely to get much better going forward. Do you think those houses that are 375k are going to magically drop back down to 275k?
I'm not going to buy a house just to buy a house. There's other ways to make money in this high-interest environment.
This post was edited on 10/12/23 at 11:32 am
Posted on 10/12/23 at 11:31 am to sidewalkside
"I'm not making any commissions right now because people aren't buying. Buy now and ignore high rates!" - sidewalksale
Posted on 10/12/23 at 11:31 am to sidewalkside
If I invested instead of buying in 2007 I’d be at least $150k richer.
Posted on 10/12/23 at 11:32 am to Chad504boy
quote:Hey Zeller...what do you think is going to happen when rates come down and people are more comfortable trading from 3 to 5 instead of 3 to 7? Everyone else will be doing the same thing and competing for housing and driving the price up. How is this so hard for you all to understand?
Chad504boy
Posted on 10/12/23 at 11:33 am to GetCocky11
quote:
I'm not going to buy a house just to buy a house.
I’m not saying you should buy just to buy, but if you’re not buying because of prices/interest rates, then you may be waiting a while.
Posted on 10/12/23 at 11:34 am to TheHarahanian
quote:Sounds like you bought in a poor neighborhood
If I invested instead of buying in 2007 I’d be at least $150k richer.
Posted on 10/12/23 at 11:39 am to Chad504boy
quote:
what's happening is people aren't selling/moving from what they have to hop into something a little bit better because of having to flip their mortgage interest rate from 3% to 7.75%.
This.
We bought our house 3 years ago and got a 2.25% interest rate. Got a 5 bedroom because we had 3 kids in high school.
Fast forward to now and we have 2 out the door due to graduation and our youngest will be gone in 2 and a half years.
Wife wants to downsize so I had to break out the calculator and show her how much money we are saving by staying put.
If I bought my house today, not what it is currently valued at but what I paid for it, my mortgage would increase $1,400 a month.
Posted on 10/12/23 at 11:42 am to sidewalkside
quote:
Hey Zeller...what do you think is going to happen when rates come down and people are more comfortable trading from 3 to 5 instead of 3 to 7? Everyone else will be doing the same thing and competing for housing and driving the price up. How is this so hard for you all to understand?
so you're saying what i'm selling then will be in more demand as well. Thanks.
Posted on 10/12/23 at 11:44 am to sidewalkside
Thinking of taking the plunge. I am happy with the location and size. I ran the numbers and am happy with the monthly payment. Figure just get in there and stop renting, also can’t cry about woulda, shoulda, coulda.
Posted on 10/12/23 at 11:45 am to GetCocky11
That $3300/mo comes with tax deductions of ~500/mo for income tax on mortgage interest at 7.45% mortgage if you're in 20% income tax bracket, and $200/mo property tax savings (based on $6K/yr prop tax)
Your net home ownership experience after tax is ~$2600/mo compared to $1800/mo rent.
Now for the savings side:
$5100/yr towards principle vs 18000+interest in your HYSA so you're "saving $13,800 difference in HYSA vs principle on mortgage.
Now consider if your home appreciates 5%/yr or up to 472,500 in yr 1, now you're down pmt of $16,875 + the principle in yr 1 is $21,975, but your real equity in your home is now $44,475 and you have 18,900 in HYSA.
This is where buying vs. renting builds wealth. No, i'm not in real estate or mortgage lending. My numbers above could certainly stand some refinement but in general, rent almost never beats owning.
Your net home ownership experience after tax is ~$2600/mo compared to $1800/mo rent.
Now for the savings side:
$5100/yr towards principle vs 18000+interest in your HYSA so you're "saving $13,800 difference in HYSA vs principle on mortgage.
Now consider if your home appreciates 5%/yr or up to 472,500 in yr 1, now you're down pmt of $16,875 + the principle in yr 1 is $21,975, but your real equity in your home is now $44,475 and you have 18,900 in HYSA.
This is where buying vs. renting builds wealth. No, i'm not in real estate or mortgage lending. My numbers above could certainly stand some refinement but in general, rent almost never beats owning.
Posted on 10/12/23 at 11:53 am to Epic Cajun
quote:
I don’t get the hesitation in the market currently. If you’re waiting on interest rates to drop, what do you think housing prices will do when that happens? You can always refinance to a lower rate later if rates drop, and if rates keep going up, you’re better off with the lower rate you have now.
This is a dumb tactic used by realtors. The bottom line is that nobody knows when rates will drop significantly. Therefore, why would I stretch my budget banking on a lower note at some undetermined time in the future?
Example: We almost moved in the spring and would have been giving up a 2.8% rate for a 6.5% rate and our monthly note would have doubled. Everyone from the realtor to the loan officer pushed the “refinance later” narrative and even said “rates are projected to be in the high 5’s by year end and low 5’s by mid next year.” Looking at current rates, there’s zero chance that happens.
Posted on 10/12/23 at 12:02 pm to sidewalkside
Same for me
I walked away from several that I thought were ridiculous and now they are double
I walked away from several that I thought were ridiculous and now they are double
Posted on 10/12/23 at 12:05 pm to Epic Cajun
quote:
Do you think those houses that are 375k are going to magically drop back down to 275k?
Not magically. But if people aren't buying houses, prices come down. It is simply supply and demand.
I am surprised prices haven't already dropped by noticeable amounts. Perhaps they never will. But it still seems silly to pretend it unreasonable that prices could come down in the next yr or two.
Posted on 10/12/23 at 12:08 pm to sidewalkside
Another boomer brag thread
At least y’all had the opportunity to buy a house. Nowadays if it’s looking like a millenial is going to buy a house the realtor calls blackrock and they buy it instead. Hopefully we’ll get more millineal representation in government and finally end gen crow
At least y’all had the opportunity to buy a house. Nowadays if it’s looking like a millenial is going to buy a house the realtor calls blackrock and they buy it instead. Hopefully we’ll get more millineal representation in government and finally end gen crow
Posted on 10/12/23 at 12:14 pm to danilo
if you want to discuss numbers let me know. My emails is my username @ gmail
Posted on 10/12/23 at 12:29 pm to Chef Curry
quote:
Therefore, why would I stretch my budget banking on a lower note at some undetermined time in the future?
I never once implied anyone should stretch their budget, I actually said the opposite. Buy what you can afford (what you can afford is what you can afford).
Posted on 10/12/23 at 12:50 pm to Epic Cajun
Bought first house in 2007 right before countrywide went BR. 0 down. 100% finance. Mtg rate was 5ish
Flooded in 16. Got sba 2nd lein as well as insurance money.
Sold home in 2020 for 40k more than purchase price with a principal balance reflective of 13 yrs of mtg payments.
Bought upgraded home that didnt flood and was remodeled . New mtg rate 2.85% for 25. Our house had sold in 2018 to the remodelers for like 50 or 7p less and took some heat for paying "that much"
Fast Fws to today..home is 40k valuation more than we paid in 3yrs instead ok 17 and the rate would be in the 7s
We could absolutely not afford it today. I am fully aware of how fortunate we were and would never ever swll what we have in this current market
Im a millenial :)
Flooded in 16. Got sba 2nd lein as well as insurance money.
Sold home in 2020 for 40k more than purchase price with a principal balance reflective of 13 yrs of mtg payments.
Bought upgraded home that didnt flood and was remodeled . New mtg rate 2.85% for 25. Our house had sold in 2018 to the remodelers for like 50 or 7p less and took some heat for paying "that much"
Fast Fws to today..home is 40k valuation more than we paid in 3yrs instead ok 17 and the rate would be in the 7s
We could absolutely not afford it today. I am fully aware of how fortunate we were and would never ever swll what we have in this current market
Im a millenial :)
Posted on 10/12/23 at 12:52 pm to Milesahead
quote:
I am surprised prices haven't already dropped by noticeable amounts. Perhaps they never will. But it still seems silly to pretend it unreasonable that prices could come down in the next yr or tw
I’m an agent and anything priced correctly and in a good area is still getting multiple offers.
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