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Thread Number: 86542
/ Tag: Other Home Products or Autos
Housing/real estate |
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Post# 1111254 , Reply# 1 3/13/2021 at 15:52 (1,132 days old) by wayupnorth  (On a lake between Bangor and Bar Harbor, Maine) |
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Post# 1111259 , Reply# 2 3/13/2021 at 16:44 (1,132 days old) by petek (Ontari ari ari O ) |
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Simplistic answer | ||
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Post# 1111262 , Reply# 3 3/13/2021 at 16:57 (1,132 days old) by gansky1 (Omaha, The Home of the TV Dinner!) |
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Post# 1111263 , Reply# 4 3/13/2021 at 16:58 (1,132 days old) by bradfordwhite (central U.S.) |
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Tim- Maine is basically a suburb of wealthy Mass. It's not a surprise. I can remember just a few years ago seeing listings in Maine that were incredibly affordable. Some of the properties were quite run down but solid. It's probably changed.
---- Cole-I share your concerns and position. I haven't been in the market since 2005. A lot has changed hasn't it? This time last year and about a month or two forward there was all this talk about how the market was going to tumble and banks were stopping lending.....and the bottom feeders were anxiously positioning to take advantage like they did in 2008 and 2009. That didn't happen like you pointed out and we've seen. Before Covid, the market was already in bubble territory. And it's a bubble because the prices have far exceeded what majority of people can comfortably afford. We were in a bubble before and now it's even more inflated. This market is the way it is because mortgage rates are low. It shows how artificial things are. If rates went up even 1%, things would no doubt stall. Mortgage applications have been declining they say. I've predidcted quite a while now what no one wants: Stagnation. No one wants to sell, and with limited inventory few can or want to buy. Baby boomers want to age in place they say so they aren't adding inventory for people to buy. This is pushing up prices because there is less inventory. FLA. has some good prices in some areas (not the beach) It depends what you're looking for. Unless I find a really good deal, I'm not buying. Not in this market. There needs to be some structural changes IMO. Whether it's zoning changes that take the hassle out of building homes people ACTUALLY want and sizes and prices that are workable, or a change in the tax code so people are less likely to hold properties for tax reasons, and thus open up inventory or ? I don't think interest rates are going to go way up. Just don't find yourself being house horny. You've made it all these years. Continue to position yourself so when an opportunity comes along, you can pounce. Get pre-qualed. Continue to save so that the more money you have , the sweeter the deal you can get. Know the market and where you should be looking and do indeed look regularly. | ||
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Post# 1111273 , Reply# 5 3/13/2021 at 17:56 (1,132 days old) by ea56 (Cotati, Calif.) |
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Cole Home ownership is your ticket to future financial security, provided you can afford to buy and don’t overextend yourself. I had thought that the rapidly rising prices of real estate would ultimately result in another crash like in 2008, but so far that hasn’t happened.
If you can afford to buy now with the extremely low interest rates I would recommend that you do so. Interview a few realtors until you find one you feel comfortable with and trust.
Get prequalified for a mortgage, then begin your search. I would suggest that you buy a home with good “bones” in a location that you will want to live in for a long time, maybe forever.
Over look the cosmetic details you may not like, like paint colors, flooring that isn’t your first choice, appliances and counters that “aren’t your style”, these can always be changed and updated overtime. The important thing is to get you foot in the door.
After you’ve lived in a home for a while often you will have different ideas about the changes you thought you just had to make right away. By waiting to remodel you will ultimately end up with just what you really want and not waste money.
Then, once you do buy, discipline yourself to make 1/12th of your monthly mortgage payment extra each and every month from the very beginning, and have this extra payment applied to the principal of your mortgage. This way you can pay a 30 year mortgage off in 15 to 22 years and save lots of money on interest.
We’ve been mortgage free as of next month for 11 years, and believe me with both of use being retired this is financial security that can’t be beat. We paid our home off in 16 years instead of 30. We waited 17 years to replace the carpeting and flooring we didn’t like, pouring all of our extra money into paying off the mortgage, and it was so worth the wait. Now our only housing costs are property taxes and HOA dues both of which amount to about $600.00 a month.
Comparable homes in our area now cost at least $2500 to $3000 per month, and we just couldn't afford to live here anymore at that price. And if and when we ever sell its pure profit, less the commission to the realtor. Rent payments are like flushing the dollars down the toilet, mortgage payments are eventually money in the bank. Yes, there are expenses in home ownership that don’t occur when you rent, but believe me its worth it.
I wish you good luck in your endeavor. Keep you eye on the prize and you’ll do just fine.
Eddie This post was last edited 03/13/2021 at 18:35 | ||
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Post# 1111280 , Reply# 6 3/13/2021 at 19:05 (1,132 days old) by bradfordwhite (central U.S.) |
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Is THIS the game you want to play?
"Rent payments are like flushing the dollars down the toilet,"
No, that it isn't. Paying (realistic) rent means paying only for what you use as you go. If you don't like the neighborhood= no problem just move tomorrow if you want. You're done. The foundation cracked and needs $40K in repairs and months worth of hassle=no problem just move tomorrow if you want. You're done. It's someone else problem. HOA is requiring every homeowner spend $10K to upgrade something=no problem You don't own it. It's not your problem. You don't even have to move. If the owner thinks they're going to pass on the cost to you by jacking up the rent. Just move. You're done. A tree fell on the house while you were at work, a wild fire blew through the area and made a mess, vandals are spray painting the outside at night, green goblins from Mars have landed on the roof and are starting another colony in the attic- no problem just move tomorrow if you want. You're done. It's not your problem. ---- It's a proven fact that home ownership is a dream scenario most people picture themselves in, including myself. I've def. been there. I should write a book and do videos. It's also a very expensive one. The full costs of which are not usually discussed because it would dis-way people from wanting to play the game. Sure, for people like Eddie, he's sitting pretty at the moment. He and hubby have put in a lot of years too. They sacrificed too. It doesn't always work out that way. And the market does not always go up. Ask yourself this: If you buy a home now and we continue to stagnate and in five years your home does not go up in value....are you still interested in buying? What if it declines in value? And I know places where this has happened in a big way. Is the fantasy of owning worth it? This is just a normal mcmansion that sold on the market. It wasn't a foreclosure or anything like that. There are thousands like this. And this is a nice neighborhood. This house was built around 2000. It's a nice house too. Originally sold for $525K in 2004 and sold last year for $385K. That's $140K LOSS plus the expensive ($10000+/- a year =$170K for 17 years) property taxes, HOA fees, ANY money spent on improvements or maintenance, insurance, etc. CLICK HERE TO GO TO bradfordwhite's LINK
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Post# 1111281 , Reply# 7 3/13/2021 at 19:16 (1,132 days old) by ea56 (Cotati, Calif.) |
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I have a brother and a sister, both in their late 60’s. They didn’t plan for their futures and now they are hard pressed to pay rent and be able to afford much of anything else. Their 40 plus years of rent receipts won’t even buy them a cup a’ coffee. Yes they can move anytime they want to. But they are finding it more difficult every year. There are lots of homeless people that didn’t plan for the future and now just can’t afford even a room.
No situation is perfect. There are risks to just about anything if you want to look at it that way. But one thing is for sure. If you’re lucky you’re gonna get old and one day either too worn out to work or you just don’t want to anymore. Having a paid for roof over your head lets us sleep at night, not worrying about how we’ll make ends meet.
Eddie | ||
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Post# 1111285 , Reply# 8 3/13/2021 at 20:21 (1,131 days old) by bradfordwhite (central U.S.) |
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forgot You know what was forgot from the illustration above?
-------
And WHAT if you rented for an average of $1200 a month during the last 17 years.
1200 x 12 month in a yr = $14,400 a year x 17 yrs = $244,800 total add in renters insurance which is quite affordable at about $250 a year = $4,250 + 244,800 = $249,050 That's ALL you'd have had to spend on housing.
Which means of the $537,000 that was collectively spent, if you'd paid the 249,000 on rent instead, you'd have $288,000 in cash in your bank, or hopefully it's earning you money in another way.
Ouch.
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Post# 1111306 , Reply# 10 3/14/2021 at 06:08 (1,131 days old) by polkanut (Wausau, WI ) |
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Property appreciation. We bought our home in 1998 for $60,000 to settle an estate before it hit the open market. We've updated the furnace, water heater, electrical service & wiring, and appliances. New windows, siding, garage door, front and back entrance doors, and roof. Converted what was the front enclosed porch into a first floor laundry room. Painted all the rooms, added a shower in the bathroom, and refinished all of the maple flooring. Our house is now appraised at $100, 000. Lots of work and $$$ but worth it in the long run. | ||
| Post# 1111318 , Reply# 12 3/14/2021 at 09:15 (1,131 days old) by Awooff (Peoria, Illinois) | ||
Home prices
In addition to low rates, few foreclosures have entered markets - soon evictions from non paid mortgages will start up again resulting in many good foreclosed homes at good prices - this will effect demand/values on non foreclosed homes.
Banks hold onto foreclosed homes and release them as the market rises, bringing overall prices down, which is where the states are at now - covid stopped a lot of the normal processes here which WILL SOON CHANGE! Additionally rates have huge effect on home prices / demand. -Typically housing prices have been stabilised by lowering rates, well rates cant go any lower which means home values can no longer be stabilized! I vote for the wait and see game as this all certainly seems to be the heighth of housing. | ||
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Post# 1111341 , Reply# 15 3/14/2021 at 11:48 (1,131 days old) by bradfordwhite (central U.S.) |
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Exactly
"I just don't want to buy a house at this "peak", if such it is, and then see prices tumble."
It is better in the long run to buy a cheap house at an expensive interest rate like 18% than it is to buy a bubble priced house with cheap credit, which is what we have now. If you got a 30 year : 75,000 mortgage at 18% interest the payment would be $1,130 a month 225,000 mortgage at 3% interest the payment would be $949 a month However, a high interest rate mtg can be refinanced at a later time to a lower rate AND it's a lot easier to pay off a $75,000 balance vs. the 225,000 That 225,000 loan You are stuck with unless there is some unusual forgiveness program. ---- The problem is people have more and more looked at real estate as a growth asset class instead of a place to live. That's one reason homelessness is rising. Stagnation is where I think we're at. There are too many people wanting to play the greed game and would bitch and complain if interest rates went up even a few points. But on the other side of that there are fewer and fewer people who can buy or want to buy. Rising interest rates would be best for the majority but with easy terms. As a country we need to change how properties are valued and held. The system now is so outdated and it's such a hassle. It's those looking for a simple place to live vs. those looking for an investment. ----- I would happily sign on to a plan that would guarantee my home would only maintain it's inflation adjusted value as time goes by. It would weed out these idiot Flippers that have screwed over the market and remodeled once nice houses into ugly gray and blue granite and particle board dumps that I would never live in. | ||
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Post# 1111342 , Reply# 16 3/14/2021 at 11:53 (1,131 days old) by bradfordwhite (central U.S.) |
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Post# 1111353 , Reply# 17 3/14/2021 at 12:33 (1,131 days old) by DADoES (TX, U.S. of A.) |
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 I have never considered my house(s) to be an investment. It's a place to live and (hopefully) be content. First in 1991 was a 9yo reasonably-nice brick 3br 2ba "starter"-type. Paid it early in 10y 7m. Sold in 2005 at an increase of $42K. The RE agent had a young couple waiting for a house on the street. It sold the next day after listing ... no actual listing or advertising was involved. Second was a 9mo new construction. More than 63% downpayment, no mortgage insurance or tax/insurance escrow required. Paid-off early in 8.5 yrs. | ||
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Post# 1111367 , Reply# 19 3/14/2021 at 14:15 (1,131 days old) by bradfordwhite (central U.S.) |
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I remember looking at new home developemnts in Orlands. They would have tract homes that were nothing special, and on standard sized lots, 2 car garage but
have 6 to 8 decent sized bedrooms that were attached to a bathroom. They'd have just one kitchen and one living room. I realized these are not what most would consider a luxury estate home. These are like for Air BNB or similiar where they are renting out the rooms. Probably to the low paid employees at Disney and Univ. Theme parks. ---- Even if Calif. relaxed their overly restrictive building laws, it would be UNlikely to see a lot of needed new homes because of the lack of water. I mean one could easily build out toward the central valley or Palm Springs but.... where's the water coming from, or NOT coming from. Under natural circumstance L.A. can only support about 1/2 million people wit the water that is/was there. If it weren't for shipping water in, there's no way L.A. could exist the way it does. But the Colorado river is increasingly under performing and other sources are tapped out. If California could build it would help cut prices, but that's not going to happen without some significant changes. | ||
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Post# 1111371 , Reply# 22 3/14/2021 at 14:34 (1,131 days old) by bradfordwhite (central U.S.) |
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Really?
If that's all it takes...
If you buy a single level house you can remove the roof and have new roof trusses delivered and a new roof put on. Hire a crane for a day or two to lift off the old roof in pieces and then lift the new trusses onto the walls. Then have new shingles or metal roof installed. It looks like a big job, but it's actually easy compared to foundation repairs, plumbing problems and things that require excavation. If you coordinate it right, you can be out and back into your home in about a week. I know someone that did this. They wanted not only vaulted ceilings but also a greater pitch on the roof. They also needed a new roof material so they were like 'we have to strip the old shingles anyway....' It also gives you a chance to beef up your ceiling insulation and change lighting arrangements if desired.
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| Post# 1111375 , Reply# 23 3/14/2021 at 16:13 (1,131 days old) by qsd-dan (West) | ||
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| Post# 1111399 , Reply# 24 3/14/2021 at 21:05 (1,130 days old) by fan-of-fans (Florida) | ||
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In way higher ceilings help in hotter environments - hot air rises, making the area above the floor feel cooler. Hence homes years ago in warmer climates had very high ceilings, whereas ones in very cold climates, such as New England had very low ceilings. | ||
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Post# 1111422 , Reply# 26 3/14/2021 at 22:21 (1,130 days old) by bradfordwhite (central U.S.) |
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I'm perfectly happy with 8' or even 7 1/2' ceilings. 7' is too short.
Do not like towering, breezy two story rooms either. I had that with the second home I built. It had a two story foyer and behind it was a two story breakfast room with curve top window above the patio door. The second story hallway was like a bridge to get from one side to the other. Don't get me wrong, I like mcmansions but it shouldn't be flashy, gaudy, nor have tall rooms. lol Tall rooms I've found are so sterile, impersonal, and it's breezy and uncomfortable. Lawyer Foyer is the name for these two story entries and I can't take credit for that name. lol. But each to their own. It's amazing how specific we can get when designing our perfect home. CLICK HERE TO GO TO bradfordwhite's LINK
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| Post# 1112094 , Reply# 29 3/19/2021 at 22:49 (1,125 days old) by fan-of-fans (Florida) | ||
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Also I take issue with people calling us stupid for being in FL... there was no need to bring that into this thread, IMO. | ||
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Post# 1112115 , Reply# 30 3/20/2021 at 09:46 (1,125 days old) by combo52 (50 Year Repair Tech Beltsville,Md) |
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Ceiling Heights High ceilings would probably help in hot climates BEFORE central A/C was the norm,
With C/A it is much cheaper to cool less CF of space, and vaulted ceilings are never insulated as well as a flat ceiling.
Hi Cole, if you have the down payment for a house in the 125,000-150,000 range in your area you would be crazy not to buy now while the interest rates are so low, even if the bottom drops out of the housing market when you are buying at a price so low you don't stand much chance of losing much.
John L. | ||
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Post# 1112145 , Reply# 32 3/20/2021 at 18:33 (1,125 days old) by Revvinkevin (Tinseltown - Shakey Town - La-La Land) |
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Adding to what John said above..... I agree completely, buy something while interest rates are LOW! If you try to wait for the perfect time/price to buy, you could miss it as values and interest rates start rising again. If you have been looking / planning to buy the last 8 years, I imagine this will be a “forever home” for you, yes? Just buy and enjoy being a homeowner! Some people get REALLY hung up on the idea of “oh I’ve lost so much money...” when home values in their area drop. But the reality is, if you DON’T sell your home, you haven’t actually lost ANYTHING! I have been in my home since 1999 when my ex and I bought it. Over the years I have seen it’s value fluctuate as much as $500,000, but as i have no plans to sell or move, it doesn’t matter to me. Kevin | ||
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Post# 1113409 , Reply# 34 3/31/2021 at 21:02 (1,113 days old) by DADoES (TX, U.S. of A.) |
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