Chippy McChiperson
4 of a Kind
They pay people to live in Alaska, I think it's $5500. Just saying...
Selling Our House For 3x What We Paid (14 Viewers)
- Thread starter Anthony Martino
- Start date
Kain8
Flush
It's low hanging fruit, but damn it, go back where you came from!
I can attest, New Mexico is beautiful. If it were just a little closer to work, I would greatly considered living there full time.
I am considering investing in property there at some point in the future.
OP
OP
Anthony Martino
Royal Flush
Well, in my most recent VLOG I did consider selling feet pics....
And be surrounded by colluding Cubano-Mexicanos? NO THANK YOU! USA USA USA!
Stufflymcstuff
Flush
I’ve always thought it’s so crazy how high American rental return tends to be. It makes no sense at all.
That works out to over 10% of the value of the house in rent per year. how can people be well off enough to afford those rents but too broke to buy?
I’ve looked through tons of cities in Canada and nothing comes close unless you’re out in absolute boony land, with a multi unit property being rented to students.
MrCatPants
Full House
I was reading something though that the overheated nature of the housing market has been more driven by all cash offers and investor groups. So this time around interest rates may not have as much of a dampening effect.
When I see or hear the word “Cuban,” it just makes me want a cigar.
bergs
Royal Flush
Cuba is off Florida, not off New Mexico. Cuba is on the other side of Mexico from New Mexico - meaning, you would need to go clear across the entire country of Mexico (and the Gulf) to reach Cuba from New Mexico.
TrillAK
Two Pair
Alaska has been skimping us lately lol the biggest payment I’ve ever received is close to $4000 but the last few years it’s been closer to $1200. Not worth moving here for
plus the cost of a home here is more expensive than pretty much anywhere else in the U.S. other than Hawaii, Los Angeles, and NYC
Only x3, pssh. I remember my first time too.....
.....THANKS IDAHO.
.....THANKS IDAHO.
Interesting…I can say that on Long Island, much of the increase is city folk fleeing “en masse”.
They’re finding that the $1.5 million that they got selling their 1-bedroom Manhattan apartment goes quite a ways out here.
Nanook
Full House
That is precisely why prices will come down. 90% ish of people can only afford a certain payment/month and it does not really matter what the actual price of the property is. If they can afford, say $1800/month for a mortgage then that is what they can afford. It does not matter 1 bit if that is a $355k mortgage @ 3% or a $250k mortgage @ 6%. Oh, and by the way they are both accurate. I feel like a 6% interest rates environment is just about inevitable. If you do the math, a reduction of price from $355k down to $250k is $155k/355k = 44%. If you really want to know where I think housing prices are going this is closer to what is likely to happen, but when I said 25% that was a "Safe"#
That may be true, but when the all cash offers dry up and people that think that they can make 20%+ annually on Real Estate discover that this does not happen every year then things will be different.
OP
OP
Anthony Martino
Royal Flush
Don't try to confuse me with the truth, I'm American and I won't stand for it!
Stufflymcstuff
Flush
Interest rates are a part of it. But I know that for Toronto its a lot more about foreign money piling in and zoning laws / Taxes serving as a bottleneck for new developments. Ive heard rumblings that there’s a fair bit of bribery involved in the approval process as well which shouldn’t be a surprise, and I’m sure seals out many would be developers.
Every city has their own shtick.
By the sounds of things though, if rental rates are 10% return annually, it’s hard to imagine the price being all that inflated due to interest rates. It may go down but I wouldn’t be too worried about a price correction for structural reasons - if you’re going to get wrecked it would probably be by swings in demand from local industries that employ those renters relocating, or somethjbg along those lines.
Every city has their own shtick.
By the sounds of things though, if rental rates are 10% return annually, it’s hard to imagine the price being all that inflated due to interest rates. It may go down but I wouldn’t be too worried about a price correction for structural reasons - if you’re going to get wrecked it would probably be by swings in demand from local industries that employ those renters relocating, or somethjbg along those lines.
House across from me is a 1951 ranch. 3 bed, 1 bath. No renovations. 1400 SQ ft. Next to a freeway, under a airport, and in a car lot.
Current Assessed value is 260. They bought for 140 5 years ago. Sold for 459k cash, no inspection, no conditions or repairs.
They put it up for 399k and got 7 cash offers within 72 hours. Boise is fooking crazy right now. Homes with a Boise zip code are selling for 180% of accessed value.
my sister just learned this the hard way. i had to ask her "if you just accepted $35,000 over asking for your house, what makes you think offering $10,000 over asking when you were told there are 8 other offers is going to work out for you?"
interest rate hikes should help bring house prices back down relatively soon. people like anthony that can find a way to ride out that downswing and/or move to less expensive areas are going to make out the best.
MrCatPants
Full House
I work in corporate finance - there's piles of investment dollars looking for revenue generating assets right now, and not enough quality assets to go around, so "less traditional" paths like rental homes etc. are getting tons of attention.
For instance, the merger and acquisition market is similar - its like 30 to 40% more expensive for the same cash flow than it was in 2019. At least with housing rentals with generally somewhat follow woth home prices.
This housing bubble is different than 2008/2009. Interest rate increases are likely not going to have the same impact in home prices as they did in past cycles...the demand model is different.
In Boise, this markets is going to stay hot for a while. I can't wait to move out of this place.
MrCatPants
Full House
Where ya gonna go?
can you elaborate on this? i am curious.
To the middle of nowhere.
I'm a small town kinda guy, so give me a town of 500 and some air, and I'll be happy. I doubt I'll be able to make much sense of anything much bigger.
Main goal for years was to buy a motel in the middle of nowhere and just do it till I die. Still the plan.... Might not happen, but who knows.
It would give me plenty of time to Mill, Stamp, and make Knives.
buzzmonkey
Flush
If nobody can afford to buy those groups may look for better returns elsewhere and take their cash out of the market. The lack of cash buyers could dry up the market and bring prices down.
MrCatPants
Full House
It's more driven by investors with cash this time around versus homebuyers with mortgages (overstretched mortgages in 2008). There is so much investable money out there right now it's making most asset classes inflated. And commercial real estate is becoming more risky with the shift out of traditional offices and brick and mortar retail, so single family homes are getting a lot of attention.
Quick snippet of the trend.
Jackypoo
Two Pair
The way I understand the housing crisis is there is simply a shortage of supply. The pandemic allowed high earners living and working in cities to work remotely and live anywhere. Now I have to compete with people who make a lot more money than I do because they don't need to live near work anymore. Not sure if this is the real answer or an incomplete answer, just my hypothesis.
For sale in my neighborhood right now. https://www.realtor.com/realestateandhomes-detail/46-Highland-Ln_Canyon_TX_79015_M93144-55439
This home where I used to live in Virginia would easily top $600k.
This home where I used to live in Virginia would easily top $600k.
Legend5555
Full House
We bought our place in 2011 for $67k in the northwest burbs of Atl. ~1400sqft 3bd/2bth. We have put about 35-40k into in, finishing the basement, new gutters, new water line, driveway work. And there is still much to do, especially exterior. We have been getting investor offers for $300k+.
Jonesey07
Full House
Meanwhile this house is for sale near me. Anyone wanna chip in?
https://www.realtor.com/realestateandhomes-detail/4078-Webb-Rd_Murfreesboro_TN_37128_M98923-65409
https://www.realtor.com/realestateandhomes-detail/4078-Webb-Rd_Murfreesboro_TN_37128_M98923-65409
I just realized I wasted my life away. 1/4 acre same BRs and only 1.5 baths (add 300k
)NY sucks.
Legend5555
Full House
Cost of southern living has always been pretty good. Things are getting pushed farther and farther out these days though. The good deals are 60-90mins outside Atlanta now. With some in the 45min range if you get lucky.
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