Real estate rant..... ************!

[GeauxLSU]

Let me explain via example. 3% appreciation on a $300K home is $9,000 per year. That same appreciation on a $600K home is $18,000. Maintenance on the $600K house is slightly higher over 10 years. Add leverage and this formula gets better.

Maintenance, and taxes, and insurance, and utilities and. ...
We all have different philosophies and I admit mine is ultra conservative. But that has allowed me to not have a mortgage and sleep well after "rainy days". No way I'd EVER encourage someone to try and leverage their way to a return. Imagine someone who did that in 2008. Well, we don't have to imagine....

 

[GeauxLSU]

1031's are a pain in the you know what. This exception is mostly used on moving large chunks around in the commercial realm. Quite the workload for a single family house.

I have one. Not a big hassle but in retrospect I should have just paid the tax back then....
People always assume their rate will be less. Bad assumption.

 

[GeauxLSU]

Double now will be an incredible bargain after two more years of Bumbles’ rule.

Sad truth I'm afraid.

 

[Control for Smilers]

Sad truth I'm afraid.

yeah more like 3-4x rates from the Trump lows.

 

[Control for Smilers]

IF we be lucky...

 

[Spas-12 Owner]

 

[lostchild]

Bumbles’ economy is gonna make Jimmy Carter’s look like ‘’the good ol’ days’’.
Miss those 15% CD rates, tho…

 

[NWSharpshooter]

Double now will be an incredible bargain after two more years of Bumbles’ rule.

I can imagine. Good thing I like where I live, and I owe less than most people owe on their vehicles.

 

[Joshua223]

I’m retired from banking career, but have maintained my real estate license for 40 years. I advise friends and family on real estate purchases that will maximize their net worth. Since January 2021, I’ve advised my clients to avoid the resale market and go with new construction. While the most recent property sold took 14 months to build, the buyer was locked in at $429,000 receiving $15,000 in free upgrades. The same house in the same neighborhood is $625,000ish now. That’s right, almost $200,000 in equity at the closing table. Another client will close later this year and benefit from an additional $100,000 in closing table equity. Those that paid over appraisal for resales will lose or have lost the excess paid over appraisal as rates rise.

The market will slow this year due to high prices and higher interest rates. The method above will not work as well. While you will be able to lock in new construction price, you will be subject to higher mortgage rates later this year and into 2023. I still prefer new as new property typically appreciates much faster in the first five years and has almost no maintenance cost.

Good luck to all seeking their next home!

I've thought a new house was probably the way to go, but the newer developments I've driven through had the houses packed too close for my liking. Most don't even have enough space to a put up a nice play set for a kid. It is frustrating.
They know what people are willing to pay now and I'm sure they are pricing accordingly. I think I saw one new construction listing get relisted at a higher price.
I want to try my hand at knife making and maybe do some wood work, so it would be nice if I had space for a shed. I don't have space in my apartment to restore straight razors, much less do the other stuff I'm interested in.

 

[republican]

Turns out all that free money wasn’t so free after all. Even the people who won’t have to pay it back on their tax returns are paying for it every time they buy something.