Nonsense Thread

[DEV0 E30]

Thanks guys! Proper pictures likely this weekend, along with an actual post outside of off-topic!

The best thing to do is to buy ASAP, get your foot in the door. Since we can assume there are no Boomers on here, the rest of us just need to have some type of appreciating asset thats not an E30. I've owned my townhouse for ~3.5 years now and its increased by $100k already

It's rather insane everywhere, but especially in places like Phoenix/Arizona. I sold my house last year and did well but in some ways I wish I had sold sooner then purchased our next house before the spike, we thought we'd wait a little bit to buy... welp that backfired, now we can't get anything like we once could have. My wife and I are going to sell the one we are in, then combine our equity and buy our next house that should last us for some time here, maybe till we want to retire (hopefully) but everything has gone up 200k+ that we'd actually want to live in, which means we will still have a mortgage and aren't ahead of the people who have cali equity or investors who are beating people to the houses on the market. And we aren't talking insane houses, sure there is a wishlist but it was doable a few years ago. Thanks Cali and everyone else who moved or are moving here. Making a backup plan too. Looking at raw land as an investment/retirement property near family far away from the big cities that isn't exploding like it is in the metropolis that will likely combine Phoenix and Tucson. I know people who lived farther out than I'd like to live, their houses are up 200k more than what they paid.

[2mAn]

The real villain's are Hedge Funds who are buying up the properties. Cali-transplants arent the major issue, its the REIT market that are overbidding with their inflated cash offers. They want the rental income. They want renters. Rather than selling, use the equity you gain in your property to buy more property. Thats the only way to "win"...

Our Townhouse isnt a forever home, but our starter home. Im upgrading with the idea of spending in the right areas to make it a nicer place now for us, but a valuable rental when we're ready to upgrade.

People are quick to point their finger at CA when the real problem is on the other side of the coast... Wall St.

[DEV0 E30]

Oh I'm not blaming only California, but the statistics show that for the last 3 years we have been getting a pretty impressive number of transplants and buyers from California, Chicago, Texas, New York, and other places. The license plates I see don't lie either. I told a friend years ago to buy instead of rent but he wanted to wait. Now I'm happy he's going to stop renting, but only because he's forced to sadly, his rent is jumping something like $800 a month soon. He needs more space for his vehicles anyways and can take the next step. Rentals/investors are an issue, but I can count on both hands that friends have been out-bid by families moving here, not investors. It all contributes to the problem, and causes natives like myself and others to be at a major disadvantage, even if we have some equity. I did the slumlord thing for a short term with my place, but only because I knew the people, may do that again some day but just trying to get enough space for the next stage.

[2mAn]

Sounds like you have a pretty good gameplan overall. It should come as no surprise that people will look for more affordable options in their vicinity and as a neighboring state you guys are an attractive option.

My original point still remains the same. To buy ASAP. I have family members who have good jobs and enjoyed low rent for so long and kept postponing buying and suddenly all the 'cheap' housing was bought up by people leaving the larger, more expensive cities and now are complaining that the '$300k' houses are '500k'... well, you should've bought when it was there.

My parents retired (Mom really, Dads been retired) and when they moved out of San Jose (an extremely expensive area of CA) into Central California they were able to essentially 3 homes for the cost of the one they sold (1031 exchanged to avoid even more taxes). They now have multiple rental properties and just one small mortgage. Damn Boomers... lol

[It's Soda Not Pop]

Oh I'm not blaming only California, but the statistics show that for the last 3 years we have been getting a pretty impressive number of transplants and buyers from California, Chicago, Texas, New York, and other places. The license plates I see don't lie either. I told a friend years ago to buy instead of rent but he wanted to wait. Now I'm happy he's going to stop renting, but only because he's forced to sadly, his rent is jumping something like $800 a month soon. He needs more space for his vehicles anyways and can take the next step. Rentals/investors are an issue, but I can count on both hands that friends have been out-bid by families moving here, not investors. It all contributes to the problem, and causes natives like myself and others to be at a major disadvantage, even if we have some equity. I did the slumlord thing for a short term with my place, but only because I knew the people, may do that again some day but just trying to get enough space for the next stage.

This is happening everywhere. I'm from Simpsonville, SC. I have been priced out of my own town, for while now. All though I do own my house, I have for last 7 years. It's still crazy to see your small town blow up out of the blue.

[2mAn]

Think of this factor also. Los Angeles is and has been overflowing with people... yet people still want to come here. Sh!t, I’m a NorCal transplant via Seattle lol...

Anyways, there only so much space and so as LA continued to “spread out” eventually the areas around us overflow.

BTW don’t get me started with out of state plates lol

[McGyver]

The real villain's are Hedge Funds who are buying up the properties. ... People are quick to point their finger at CA when the real problem is on the other side of the coast... Wall St.

Shoot, doesn't Zillow own a shitload of houses? REIT's and tech companies are really the ones driving up and holding these inflated prices. That combined with a near 0% federal interest rate and global pandemic (making the stock market shakey), means that real estate is the no-lose option.

I'm moving to Philly on monday and plan to buy a place as soon as I find the right one. I'm honestly really nervous about rising interest rates making inflated prices even more unaffordable. Then again, I'm looking for an atypical type of housing (living + workshop), so maybe I'll only compete with developers instead of investors.

As much as im worried about a bust, I'm also thinking about a primary home as an expense and not an investment. Rent is just as expensive as a mortgage and owning a home lets me do car work without fear of being kicked out. Best case is that the value goes up, worst case is that I get to write-off the interest and I break even.

[2mAn]

Dont stress about rising rates. You can always refinance. Get your foot in the door. I hated the rate I got in 2018, similar to today they were low but rising and it locked right after it adjusted up... I dealt with it, paid extra on principal balance and am just about done refinancing now. Still going to make the same $$$$ payment and will save over $100k on interest and ~7 years on the 30 year term.

[McGyver]

My saving grace is that I used my college money to buy a house in 2009 to rent the other 3 rooms to other students. I had to take out some loans, but I've had the house for almost 15 years now, and other people have been paying my mortgage for the past 11 years. So although I've been renting, I still have some equity building and have collateral for a future purchase.


Yeah, interest rates may be less palatable, but $2500 to rent or $2500 to own with a higher rate? I'd rather own.

[roguetoaster]

I'm in what can only fairly be described as a rural part of MD, and my house, while larger than typical, isn't special. I bought in mid 2018, got a low rate, refinanced when rates were even lower, and costs were low to make it happen. Accounting for all expenses, including renovations, but aside from electric, internet, and heating oil, I have made a notional $1,200 each month I've lived here.

To think I only bought this place because it was a great deal in a marketplace where I was already worried about getting priced out in 2018.

Complete insanity, and I really don't know what I'd do in this market, when the place I was renting prior to buying is already $600 more a month than my current mortgage, yet a mortgage for my current home today might be out of practical reach.

[Northern]

I also took the "Slum lord" approach when my now wife and I bought our place in 2013. Had her brother, her friend, and Roysneon living with us paying rent for the first few years.
Basically our rent at the time was the cost of a mortgage, so it was easy to justify.

Houses/rent north of the border have also skyrocketed since then. Anything in or near the city is 2-3x the value of what we paid then.

Value jump sounds good on paper, but it's not like we could pocket any cash from the sale because it would just go into the next place.
The only positive is that we can get our mortgage reassessed to borrow for a garage build.
On the downside, all our friends have been priced out of the housing market so most live outside the city now.

[moatilliatta]

3 more years and my little house is paid. Can’t wait. Luckily got in around 3.25%. Not the lowest, but the refinance cost wasn't worth it fit having such little time left.

These hedge funds buy out car part companies and the been counters squeeze the years of building a quality product right out of them.

[McGyver]

Value jump sounds good on paper, but it's not like we could pocket any cash from the sale because it would just go into the next place.
The only positive is that we can get our mortgage reassessed to borrow for a garage build.

This is the real kicker. Sure, I've got a ton of equity in my rental, but that's fake money on paper until I sell, and it would all be used up on a new purchase. I'm hoping its a good enough asset to borrow against in the future. I did a cash-out refinance last time to get a little more cash for a future down payment. It was kind of a relatively cheap way to get a loan and roll the cost into the cost of business.

Side note, I think I need a real CPA / Financial advisor. I've been using Turbo Tax for the past decade, and I'm not confident that any of those returns have been correct.

[2mAn]

If you have equity you could get a HELOC ... its dangerous but it can help you expand

[Northern]

If you have equity you could get a HELOC ... its dangerous but it can help you expand

Basically my garage funding plan, otherwise it's piecemeal together a few lines of credit at higher interest.
Unless it takes me long enough to pull the trigger that I have saved something toward it lol