Another Housing Bubble?

[chucklenut]

I'd consider renting instead of selling our current home, but not sure it's worth the headache. It's also a gamble that prices continue to rise. Repairs from crappy tenants could easily negate any money received in rent. We just looked at a house that was previously rented, and holy crap was that place in terrible shape.

ya, its hard to find good landlord and good tennants. i was a good one, in fact my landlord told the new tennants at my old place i was the best one he ever had

i was taken back by the comment because all i did was send him money in the form of a check once a month, didnt think i went above and beyond in any form

but the flip side is renting can be a good way of securing property. ideally, if the market wasnt ****ed, id get a small starter home and live in it for 5 or 10 years, maybe more, and then when/if i have a family and needed a larger house, use the first home as equity for the 2nd and rent out the first as a source of income added to my regular income. a form of estate building. but of course, that is if the market wasnt screwed up

 

[kuduman]

The only good news I've seen is that the youngsters being unwilling or unable to buy a home has greatly increased the quality of available tenants, compared to 5 years ago.

Rents are still depressed in a lot of areas, even though every article I read says the opposite. But the days of being forced to choose from deadbeats A, B, or C may be over. You new landlords can rent to them. : )

Helpful hint for the newbies: If their first question is "Do you conduct criminal background checks?", the answer is YES.

 

[albatros43]

ya, its hard to find good landlord and good tennants. i was a good one, in fact my landlord told the new tennants at my old place i was the best one he ever had

i was taken back by the comment because all i did was send him money in the form of a check once a month, didnt think i went above and beyond in any form

but the flip side is renting can be a good way of securing property. ideally, if the market wasnt ****ed, id get a small starter home and live in it for 5 or 10 years, maybe more, and then when/if i have a family and needed a larger house, use the first home as equity for the 2nd and rent out the first as a source of income added to my regular income. a form of estate building. but of course, that is if the market wasnt screwed up

If I was to rent I'd use a management company. I like the idea of estate building, but I'm still not sure if it's worth it. In my case, should I take all the proceeds (100% equity) from my current home and put almost all of that into a new home or keep all that money locked up in my current home and rent it out? I'd be paying a ton more in interest on the new home and have a much higher payment.

 

[chucklenut]

If I was to rent I'd use a management company. I like the idea of estate building, but I'm still not sure if it's worth it. In my case, should I take all the proceeds (100% equity) from my current home and put almost all of that into a new home or keep all that money locked up in my current home and rent it out? I'd be paying a ton more in interest on the new home and have a much higher payment.

i wouldnt take all of it, but if you needed that line of credit to get a better rate on the new mortgage it isnt a bad idea to consider

of course, that strategy has worked very well for members of my family. lucky for them though they got started in the 80s and 90s more so. in this time, im a bit more skittish to embark on such an endeavor, at least right now

 

[RugerRob]

So we seem to have a couple of distinct opinions here:

1 - There is no bubble. It's a supply and demand thing.

2 - Yes, there is a bubble and we're in a repeat of 2008 (or 2008 never stopped)

The demand was falsely created as well forclosures were bought up and turned into rental properties then hype "there's a housing shortage" and other hype to get people to sell, but then you list your house and it doesn't sell and the realtor says "you got to price it more aggressively to get it to sell" The supply/demand thing was also well constructed, no new houses being built, foreclosures snatched up by investors.

I looked at over 120 over priced, under maintained houses until I FINALLY found one that was suitable took 3 months! I have friends looking several months and the prices have been so insane they decided to just rent for awhile.

 

[RugerRob]

I'd consider renting instead of selling our current home, but not sure it's worth the headache. It's also a gamble that prices continue to rise. Repairs from crappy tenants could easily negate any money received in rent. We just looked at a house that was previously rented, and holy crap was that place in terrible shape.

yes, I bought a rental... awesome deal on it, screwed up yellow and green paint, bible verses wrote all over door frames, massive holes in the walls, busted shower tiles, overgrown everything outside... but I knew at the price, location, construction doing the work would still be worth it. 3200 sqft 3 sides brick, 3 car garage.

 

[batoncolle]

The demand was falsely created as well forclosures were bought up and turned into rental properties then hype "there's a housing shortage" and other hype to get people to sell, but then you list your house and it doesn't sell and the realtor says "you got to price it more aggressively to get it to sell" The supply/demand thing was also well constructed, no new houses being built, foreclosures snatched up by investors.

I looked at over 120 over priced, under maintained houses until I FINALLY found one that was suitable took 3 months! I have friends looking several months and the prices have been so insane they decided to just rent for awhile.

Yep. We don't have to have the same reasons to be in another bubble. Stupid alone can create a bubble, and there is a lot of that in the market today, along with a supposed housing shortage.

I'm at 1.5 months, and I have still yet to look at one single house. In fact I've given up on my original goal, and I've decided to just buy the land and build it myself when prices drop again. But I still need something to live in, and I can't even find a cheaper house that I can turn around and sell once I've finished building. The second a decently priced house hits the market, it's gone. But there's plenty of new construction going up, just at ridiculous bubble prices. Put a monster house on a small lot, throw in some granite counter tops, add some trey ceilings, call it custom, and these suckers are knocking each other down to pounce on these poorly constructed McMansions that they can't afford...

 

[Kman]

My neighbor is a slum lord of sorts. It's the only house on the couldesac that's a rental. The land lord doesn't do squat as far as the exterior, paints over rotten wood consistently. He has had consistent tenants paying $2400/month.

 

[RugerRob]

Yep. We don't have to have the same reasons to be in another bubble. Stupid alone can create a bubble, and there is a lot of that in the market today, along with a supposed housing shortage.

I'm at 1.5 months, and I have still yet to look at one single house. In fact I've given up on my original goal, and I've decided to just buy the land and build it myself when prices drop again. But I still need something to live in, and I can't even find a cheaper house that I can turn around and sell once I've finished building. The second a decently priced house hits the market, it's gone. But there's plenty of new construction going up, just at ridiculous bubble prices. Put a monster house on a small lot, throw in some granite counter tops, add some trey ceilings, call it custom, and these suckers are knocking each other down to pounce on these poorly constructed McMansions that they can't afford...

And this is the problem with sell high buy high... the intent is usually to sell and downsize to reduce your cost of living but when you sell you soon realize that finding a smaller house at a DECENT price that doesn't require 50K in repairs is a frustrating near impossible thing to do... very time consuming. I went through this and literally every day was on all the sites doing searches, alerts, making lists and not even having the realtor go with me to save time, just scout out the exterior and could instantly tell, crossed houses off and narrowed to ones we wanted to look inside on and then crossed those off over and over again due to repair costs... it was really bad and left me feeling like HOW DO PEOPLE LIVE like this?!?

Do like they do in south Carolina, part a mobile home on a piece of land, build the house next to it over a few years and once it's done sell the mobile home and move in.

 

[chucklenut]

And this is the problem with sell high buy high... the intent is usually to sell and downsize to reduce your cost of living but when you sell you soon realize that finding a smaller house at a DECENT price that doesn't require 50K in repairs is a frustrating near impossible thing to do... very time consuming. I went through this and literally every day was on all the sites doing searches, alerts, making lists and not even having the realtor go with me to save time, just scout out the exterior and could instantly tell, crossed houses off and narrowed to ones we wanted to look inside on and then crossed those off over and over again due to repair costs... it was really bad and left me feeling like HOW DO PEOPLE LIVE like this?!?

Do like they do in south Carolina, part a mobile home on a piece of land, build the house next to it over a few years and once it's done sell the mobile home and move in.

Buy high, sell high = hot and rotten potato