Not a good time to be playing real estate investor thinking of big returns... unless you are LOOONNNNNG...... Propped up markets will come down eventually!
Real estate remains a risk as long as jobs are at risk. Real estate ventures should be limited to areas showing job promise. It will be interesting to see if the FEDs QE3 purchases of MBS will help the log jam of unsold inventory. I'm watching a new ETF (MORL) that just could take off if the FED is successful. MORL may be a good indicator of FED success or failure with MBS purchases.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Market highly dependent on employment situation which I expect to get worse. I expect housing market will suffer further even though it will have its short term highlights in selected markets. If I were buying I would wait. If I were selling I would wait for one of those short term highlights. If I did sell I'd rent and purchase later. Strictly my personal opinion.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Depends on your investment horizon. With banks holding back many properties (read shadow inventory here), they are artificially inflating the prices of homes in certain areas. Most homes are being actively purchased by investors (large and small) with all cash offers. They are not looking for appreciation in the short term but looking for cash flow yields. Its not uncommon to earn 10-15% on an annualized basis based on cash flow along as current depressed prices are supporting this. If you add leverage (lets say 20% down, 80% debt) those cash on cash yields go upwards of 25% on an annualized basis. If you are in the market for a quick flip, be careful. If you are looking for yields and diversify out of Wall St. and PM's, cash flowing property is a good place to be.
The "Fiscal Cliff", I believe has a lot to do with this.........as long as I'm not voicing a for or against argument about it but, what's everyone's opinion on what's the best source to get the earliest info when and if congress reaches a compromise because I imagine that's when the PMS will take their plunge. Would it be C-Span? Market Watch? CNN? What you say? Not trying to derail anyone but didn't want to start another thread for a simple answer.
The more qualities observed in a coin, the more desirable that coin becomes!
I'm looking at buying a house, a fixer-upper. From what I've read, housing has dropped 35-40% meaning a 100,000 is worth now only 60 to $70,000......is that about right? The house I'm looking at needs a new roof, some new kitchen flooring and carpet throughout. The furnace is over 25 years old, 1986 I believe is what the seller said. What else? All windows are new and 70% of the walls have been reinsulated and rewalled. The upstairs still needs rewalled. I don't believe I can finish the upstairs until the roof is replaced. It's a bungalow type ceilings upstairs. The central air is old as well and I haven't checked the plumbing or for termites. He's asking $45,000 which is about 35% less what he thinks it's worth and there is a new 3 car garage that goes with it. The yard is extremely small, fenced in and badly in need of TLC. I'm guessing $25,000 is more of a fair price since I'm facing all these repairs. Anyone want to take a gander at how close I am to pricing the place? I don't want to end up with the most expensive house in the state after doing all the repairs. And throw in some new siding someday.
The more qualities observed in a coin, the more desirable that coin becomes!
<< <i>The "Fiscal Cliff", I believe has a lot to do with this.........as long as I'm not voicing a for or against argument about it but, what's everyone's opinion on what's the best source to get the earliest info when and if congress reaches a compromise because I imagine that's when the PMS will take their plunge. Would it be C-Span? Market Watch? CNN? What you say? Not trying to derail anyone but didn't want to start another thread for a simple answer. >>
They have to reach a compomise on raising the debt ceiling or its end of the game. Any drop in PMs (I don't agree) will be short lived because Washington based compromises are only good until needed again.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I'm looking at buying a house, a fixer-upper. From what I've read, housing has dropped 35-40% meaning a 100,000 is worth now only 60 to $70,000......is that about right? The house I'm looking at needs a new roof, some new kitchen flooring and carpet throughout. The furnace is over 25 years old, 1986 I believe is what the seller said. What else? All windows are new and 70% of the walls have been reinsulated and rewalled. The upstairs still needs rewalled. I don't believe I can finish the upstairs until the roof is replaced. It's a bungalow type ceilings upstairs. The central air is old as well and I haven't checked the plumbing or for termites. He's asking $45,000 which is about 35% less what he thinks it's worth and there is a new 3 car garage that goes with it. The yard is extremely small, fenced in and badly in need of TLC. I'm guessing $25,000 is more of a fair price since I'm facing all these repairs. Anyone want to take a gander at how close I am to pricing the place? I don't want to end up with the most expensive house in the state after doing all the repairs. And throw in some new siding someday. >>
I got heartburn just reading about that "home" Leo. Good luck to you, you've got energy!
Leo, check with your planned homeowner's insurance company. Here in FL most of them now require a roof under a certain age before they will cover the house with a policy.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Miles, got a chuckle out of that but I can't afford much more and I am trying to beat the system, snatching up a house before a bank gets hold of it. I'm reading a book, Home buying for dummies and that's me. And Derryb, it's hasn't yet mentioned home insurance is contingent to the house being up to par so again, I've learned something more. Thanks guys for your input.
And the 16 trillion debt will still be there after the fiscal cliff.
The more qualities observed in a coin, the more desirable that coin becomes!
<< <i>Miles, got a chuckle out of that but I can't afford much more and I am trying to beat the system, snatching up a house before a bank gets hold of it. I'm reading a book, Home buying for dummies and that's me. And Derryb, it's hasn't yet mentioned home insurance is contingent to the house being up to par so again, I've learned something more. Thanks guys for your input.
And the 16 trillion debt will still be there after the fiscal cliff. >>
The 16 trillion debt is a relic of the past! It will be 18 trillion in the blink of an eye.
There are financing programs where you can build in the renovation costs to the first mortgage if you were planning on taking out a mortgage. If this renovation means cash out of pocket in addition to the outright purchase, I'd really think hard about this project.
Ask yourself this question, "Do you envision yourself wanting to live in this house and neighborhood for the next 5-15 years after this house is renovated?" And that means no suprises with the neighborhood and it's direction...hopefully upward.
If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed.
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed. >>
Homer. The end. MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>I'm looking at buying a house, a fixer-upper. From what I've read, housing has dropped 35-40% meaning a 100,000 is worth now only 60 to $70,000......is that about right? The house I'm looking at needs a new roof, some new kitchen flooring and carpet throughout. The furnace is over 25 years old, 1986 I believe is what the seller said. What else? All windows are new and 70% of the walls have been reinsulated and rewalled. The upstairs still needs rewalled. I don't believe I can finish the upstairs until the roof is replaced. It's a bungalow type ceilings upstairs. The central air is old as well and I haven't checked the plumbing or for termites. He's asking $45,000 which is about 35% less what he thinks it's worth and there is a new 3 car garage that goes with it. The yard is extremely small, fenced in and badly in need of TLC. I'm guessing $25,000 is more of a fair price since I'm facing all these repairs. Anyone want to take a gander at how close I am to pricing the place? I don't want to end up with the most expensive house in the state after doing all the repairs. And throw in some new siding someday. >>
A lot of 'It depends" type questions occur to me. Are you allowed to re-roof it yourself? How big is roof? Are you capable of doing it yourself? Do you have friends who can/will help? We did a neighbor's stucco house that way. Everybody pitched in, one gal made and catered us lunch, several of us had sets of scaffolding and planks......you get the picture. The new furnace you buy will be a great improvement over what was available in the 80's in terms of efficiency. AC, I dunno but I suppose same like heat. Carpet and flooring is unlikely to 'just what I wanted' to potential buyer. Do the structural stuff and offer X dollars to buyer for their choice of counters, flooring, paint colors (you can just white prime). Ditto for yard, or just a quick manure and grasseed, rake it in. Done. 70% of walls are insulated? That's weird. Plumbing is a biggie. Big biggie. Termites we don't have but sound like no fun.
-------------- BTW, original post was about housing prices. IMO (and worth perhaps exactly what you are paying to receive it), there exists no other way out than to inflate the currencyy to more or less the point that the repo'd houses become worth something like what was owed on them. (plus or minus and obviously the lender has to take something of a haircut too. But not a Marine Corps recruit haircut either. More like the early Beatles). And it seems to be working. Here in Colorado sales are up in Denver metro area, Colorado Springs is re-building from the fires, rural areas are seeing fewer foreclosures and more building permits issued.
Many, many perfect transactions with other members. Ask please.
Ask yourself this question, "Do you envision yourself wanting to live in this house and neighborhood for the next 5-15 years after this house is renovated?" And that means no surprises with the neighborhood and it's direction...hopefully upward.
I'd be asking myself the above questions in bold.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed. >>
I just witnessed thousands of cheap homes in a city of 17 million, Cairo. You couldn't pay me to live in that (literal) "trash-heap." Nasty place. Gasoline is $1.60. One year of college costs $50! Yup, $50, but there's no work for the graduate. Yet the whole country can't figure out how to pick up their trash...for the last seven years!
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed. >>
I just witnessed thousands of cheap homes in a city of 17 million, Cairo. You couldn't pay me to live in that (literal) "trash-heap." Nasty place. Gasoline is $1.60. One year of college costs $50! Yup, $50, but there's no work for the graduate. Yet the whole country can't figure out how to pick up their trash...for the last seven years! >>
I was there 20 years ago. Seems nothing has changed.
Rental Property seems to be renting real quickly lately here in Florida. If I had access to more money, I'd borrow more to buy more rentals at these rates and prices.
<< <i>If I had access to more money, I'd borrow more >>
more debt?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>If I had access to more money, I'd borrow more >>
more debt? >>
I guess he's thinking of cashflowing it? Too risky for me in this market. >>
When one loses access to more money there is usually a reason for it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Here in Las Vegas we have over 50,000 vacant homes waiting to go on the block. But, back up to early 2011, when our state legislature approved our attorney generals request to prohibit foreclosures via "stamped" bank docs. Which means that now banks have to actually have the deed and mortgage in hand and be able to produce the same before they can legally foreclose. Well, banks have sold, resold, and sold again the papers and debt and cannot produce the original docs and therefore cannot foreclose, period.
So, the inventory has been building for over two years now and thus the 50,000+ homes ready for the block and the okay from the State of Nevada to go ahead with the foreclosures. So far, no go. Banks are just sitting on them and the homes are slowly rotting.
Las Vegas realized, quickly, that these home are vacant and outside maintenance including watering was being neglected. So, the city passed strict laws forcing banks to hire people to maintain these properties on the exterior and in the yards.
So, what is the result?
Well, my wife and I back in June 2011 bought a fixer upper for $115,000 and over the last two years have put $12k and a lot of sweat equity to rehab, whilst we are living in it. Job is done and the market has turned upward due to the lack of inventory (no foreclosures) and now we got an appraisal of $195,000. We are thinking of selling but cannot because there are no fixer uppers to buy as investors are way ahead of us on that front. They are buying with cash and we would have to sell to buy (selling is no problem but the wait to close is the problem). Sellers are accepting all cash offers and we cannot compete at this point in time. Normally there are enough home on the market to satisfy the investor and the homeowner.
I suspect that something will be worked out with the vacant homes but don't know when. Perhaps when the approval to allow the banks to sell comes they might all hit the market at once. This would perhaps give us another chance at a fixer upper and probably would indicate a big drop in prices again. Big mess. Biding our time and don't know if and when the chance will come again for us to do another fixer.
To give you an example: at any one time there is 2.5% of the home in our neighborhood (7,000) on the market and that equates to about 150-200 homes in all price ranges. Today there are 33 homes up for sale. Market is just stupid and the homes sell in a few days or less. Great if you are selling but horrible if you have to sell to buy. Nobody is taking offers contingent on sales as they just don't have to. We can't sell and then hope to buy as there is just not enough inventory to count on that happening, especially in our price range. Desirable neighborhood.
Oh well, rant button is now off.
bob
Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
The younger generation will not be able to buyout the senior generation. Wal Mart just doesn't pay that well. Add the additional taxes to pay interest on the national debt and additional social security to support the boomers and the working class, 20-40 group will not be buying homes at 1 million.
The youth in this country needs to rebel, cancel the national debt and take the guillotine down Wall Street.
It's amazing how a generation can grab all the assets , all the land and then write themselves trillions in IOUs (Treasuries) for their kids to pay off and still call themselves "The Greatest Generation"
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed. >>
Old threads are often more interesting than new threads. I'll leave "finding your first thread" up to you.
Housing continues to look regionally strong, the properties that I'm looking at are selling fast with multiple offers, sometimes over the initial asking price.
<< <i>Housing continues to look regionally strong, the properties that I'm looking at are selling fast with multiple offers, sometimes over the initial asking price. >>
That's usually what happens after a strong bounce off the bottom (ie 2011-2015). "Average" US housing should peak on this dead cat bounce in 2015-2016 along with the stock market. QE not only fueled a stock market rally but also home prices rallying and easy loans for new cars. Doesn't have to be a mania to experience a deeper correction. Should we expect that the housing boom from 1955-2007 is all done correcting after only 8 years? In any case wouldn't it be normal to retest a major low/bottom like 2009-2011 at some point in the future?
Housing bubble is great for the economy, vis a vis the last one helped fuel the recovery ....
People not paying any mortgage payments every month rolls straight into economy , goin out to eat, bars, more clothes, gadgets, cars, boats, vacations, etc...
<< <i>Housing bubble is great for the economy, vis a vis the last one helped fuel the recovery .... >>
wiser men have argued that housing caused the need for the recovery. lol
<< <i>People not paying any mortgage payments every month rolls straight into economy , goin out to eat, bars, more clothes, gadgets, cars, boats, vacations, etc... >>
Sounds like something that would drip out of Paul Krugman's mouth. People not paying any mortgage are living in their cars with no disposable income or they are paying rent. There is no extra money rolling into the economy. lol
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< People not paying any mortgage payments every month rolls straight into economy , goin out to eat, bars, more clothes, gadgets, cars, boats, vacations, etc... >>
Sounds like something that would drip out of Paul Krugman's mouth.
Well sorry you guys didn't know what was actually going on, but prolly read something somewhere you believed some nonsense... Lol
I knew many people/ family's that stayed in there homes up to 2-3 years without making a payment, they lived life large.... And if I knew a bunch of people then it was happening all over...
I figured it out when during a supposed collapse and recession the lines at all the restaurants during Monday's , Tuesday , etc were an hour long all the time ... They were always packed, as were the costco n sams clubs... All while Watching homes sell for 200k that sold for 800k...400k that was 1.2 mil... And so on....
I knew many people/ family's that stayed in there homes up to 2-3 years without making a payment, they lived life large
I knew many also in the Chicago area, but that didnt help the economy along and that situation willl not happen again in our lifetimes. The system was just overwhelmed and the landlords (banks) couldnt evict (forclose) fast enough.
Refinanced the primary residence for 30 years fixed at 3.875, and took out a new mortgage to finance 75% of a new vacation/seasonal rental, 30 year fixed at 3.625%
Refinanced the primary residence for 30 years fixed at 3.875, and took out a new mortgage to finance 75% of a new vacation/seasonal rental, 30 year fixed at 3.625% >>
Your vacation/seasonal rental was underwritten as a second home, no? Past year i have seen a steady drop in my rates. April 2014 was 5%, Nov 2014 was 4.875% and now Jan at 4.25% (all on investment property). Even if i wanted to buy down my rates I couldnt get near the rate you were offered unless it was underwritten as a second home vs investment property.
Ayup, second home and first out-of-state property. Our other rental property is leased full-time as Investment, this one we intend to use seasonally ourselves as well as offer as a short-term vacation rental.
Comments
Not a good time to be playing real estate investor thinking of big returns... unless you are LOOONNNNNG...... Propped up markets will come down eventually!
Here is a link to a good site about this subject. I look in on it every few days.
dr. housing bubble
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
<< <i>I think not - too many homes in default still need to come to market. >>
Agreed. When there are still random stories of year+ default squatters around there is still a lot more to be processed.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
I found this breakdown pretty interesting reading
buy or rent in southern california ?
this crunches some numbers and just touches on the idea of the impending fiscal cliff taking the mortgage deduction away.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
what's everyone's opinion on what's the best source to get the earliest info when and if congress reaches a compromise because
I imagine that's when the PMS will take their plunge. Would it be C-Span? Market Watch? CNN? What you say?
Not trying to derail anyone but didn't want to start another thread for a simple answer.
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
<< <i>The "Fiscal Cliff", I believe has a lot to do with this.........as long as I'm not voicing a for or against argument about it but,
what's everyone's opinion on what's the best source to get the earliest info when and if congress reaches a compromise because
I imagine that's when the PMS will take their plunge. Would it be C-Span? Market Watch? CNN? What you say?
Not trying to derail anyone but didn't want to start another thread for a simple answer.
They have to reach a compomise on raising the debt ceiling or its end of the game. Any drop in PMs (I don't agree) will be short lived because Washington based compromises are only good until needed again.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I'm looking at buying a house, a fixer-upper. From what I've read, housing has dropped 35-40% meaning a 100,000 is worth now only 60 to $70,000......is that about right? The house I'm looking at needs a new roof, some new kitchen flooring and carpet throughout. The furnace is over 25 years old, 1986 I believe is what the seller said. What else? All windows are new and 70% of the walls have been reinsulated and rewalled. The upstairs still needs rewalled. I don't believe I can finish the upstairs until the roof is replaced. It's a bungalow type ceilings upstairs. The central air is old as well and I haven't checked the plumbing or for termites. He's asking $45,000 which is about 35% less what he thinks it's worth and there is a new 3 car garage that goes with it. The yard is extremely small, fenced in and badly in need of TLC. I'm guessing $25,000 is more of a fair price since I'm facing all these repairs. Anyone want to take a gander at how close I am to pricing the place? I don't want to end up with the most expensive house in the state after doing all the repairs. And throw in some new siding someday.
I got heartburn just reading about that "home" Leo. Good luck to you, you've got energy!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'm reading a book, Home buying for dummies and that's me.
And Derryb, it's hasn't yet mentioned home insurance is contingent to the house being up to par so again, I've learned something more. Thanks guys for your input.
And the 16 trillion debt will still be there after the fiscal cliff.
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
<< <i>Miles, got a chuckle out of that but I can't afford much more and I am trying to beat the system, snatching up a house before a bank gets hold of it.
I'm reading a book, Home buying for dummies and that's me.
And Derryb, it's hasn't yet mentioned home insurance is contingent to the house being up to par so again, I've learned something more. Thanks guys for your input.
And the 16 trillion debt will still be there after the fiscal cliff. >>
The 16 trillion debt is a relic of the past! It will be 18 trillion in the blink of an eye.
There are financing programs where you can build in the renovation costs to the first mortgage if you were planning on taking out a mortgage. If this renovation means cash out of pocket in addition to the outright purchase, I'd really think hard about this project.
Ask yourself this question, "Do you envision yourself wanting to live in this house and neighborhood for the next 5-15 years after this house is renovated?" And that means no suprises with the neighborhood and it's direction...hopefully upward.
Knowledge is the enemy of fear
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed.
Homer. The end. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>I'm looking at buying a house, a fixer-upper. From what I've read, housing has dropped 35-40% meaning a 100,000 is worth now only 60 to $70,000......is that about right? The house I'm looking at needs a new roof, some new kitchen flooring and carpet throughout. The furnace is over 25 years old, 1986 I believe is what the seller said. What else? All windows are new and 70% of the walls have been reinsulated and rewalled. The upstairs still needs rewalled. I don't believe I can finish the upstairs until the roof is replaced. It's a bungalow type ceilings upstairs. The central air is old as well and I haven't checked the plumbing or for termites. He's asking $45,000 which is about 35% less what he thinks it's worth and there is a new 3 car garage that goes with it. The yard is extremely small, fenced in and badly in need of TLC. I'm guessing $25,000 is more of a fair price since I'm facing all these repairs. Anyone want to take a gander at how close I am to pricing the place? I don't want to end up with the most expensive house in the state after doing all the repairs. And throw in some new siding someday.
A lot of 'It depends" type questions occur to me.
Are you allowed to re-roof it yourself? How big is roof? Are you capable of doing it yourself? Do you have friends who can/will help? We did a neighbor's stucco house that way. Everybody pitched in, one gal made and catered us lunch, several of us had sets of scaffolding and planks......you get the picture.
The new furnace you buy will be a great improvement over what was available in the 80's in terms of efficiency. AC, I dunno but I suppose same like heat.
Carpet and flooring is unlikely to 'just what I wanted' to potential buyer. Do the structural stuff and offer X dollars to buyer for their choice of counters, flooring, paint colors (you can just white prime). Ditto for yard, or just a quick manure and grasseed, rake it in. Done.
70% of walls are insulated? That's weird.
Plumbing is a biggie. Big biggie.
Termites we don't have but sound like no fun.
--------------
BTW, original post was about housing prices. IMO (and worth perhaps exactly what you are paying to receive it), there exists no other way out than to inflate the currencyy to more or less the point that the repo'd houses become worth something like what was owed on them. (plus or minus and obviously the lender has to take something of a haircut too. But not a Marine Corps recruit haircut either. More like the early Beatles).
And it seems to be working. Here in Colorado sales are up in Denver metro area, Colorado Springs is re-building from the fires, rural areas are seeing fewer foreclosures and more building permits issued.
I'd be asking myself the above questions in bold.
I knew it would happen.
<< <i>I found this breakdown pretty interesting reading
buy or rent in southern california ?
this crunches some numbers and just touches on the idea of the impending fiscal cliff taking the mortgage deduction away. >>
Thanks for the link bronco. I've been pondering the same scenario, but to HI next Spring.
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed.
I just witnessed thousands of cheap homes in a city of 17 million, Cairo. You couldn't pay me to live in that (literal) "trash-heap." Nasty place. Gasoline is $1.60. One year of college costs $50! Yup, $50, but there's no work for the graduate. Yet the whole country can't figure out how to pick up their trash...for the last seven years!
<< <i>
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed.
I just witnessed thousands of cheap homes in a city of 17 million, Cairo. You couldn't pay me to live in that (literal) "trash-heap." Nasty place. Gasoline is $1.60. One year of college costs $50! Yup, $50, but there's no work for the graduate. Yet the whole country can't figure out how to pick up their trash...for the last seven years! >>
I was there 20 years ago. Seems nothing has changed.
Knowledge is the enemy of fear
<< <i>If I had access to more money, I'd borrow more >>
more debt?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>If I had access to more money, I'd borrow more >>
more debt? >>
I guess he's thinking of cashflowing it?
Too many positive BST transactions with too many members to list.
<< <i>
<< <i>
<< <i>If I had access to more money, I'd borrow more >>
more debt? >>
I guess he's thinking of cashflowing it?
When one loses access to more money there is usually a reason for it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Fewer Foreclosures
Smaller "shadow" inventory
Liberty: Parent of Science & Industry
state legislature approved our attorney generals request to prohibit foreclosures via "stamped" bank docs. Which means
that now banks have to actually have the deed and mortgage in hand and be able to produce the same before they can
legally foreclose. Well, banks have sold, resold, and sold again the papers and debt and cannot produce the original
docs and therefore cannot foreclose, period.
So, the inventory has been building for over two years now and thus the 50,000+ homes ready for the block and the
okay from the State of Nevada to go ahead with the foreclosures. So far, no go. Banks are just sitting on them and the
homes are slowly rotting.
Las Vegas realized, quickly, that these home are vacant and outside maintenance including watering was being neglected.
So, the city passed strict laws forcing banks to hire people to maintain these properties on the exterior and in the yards.
So, what is the result?
Well, my wife and I back in June 2011 bought a fixer upper for $115,000 and over the last two years have put $12k and a
lot of sweat equity to rehab, whilst we are living in it. Job is done and the market has turned upward due to the lack
of inventory (no foreclosures) and now we got an appraisal of $195,000. We are thinking of selling but cannot because
there are no fixer uppers to buy as investors are way ahead of us on that front. They are buying with cash and we would
have to sell to buy (selling is no problem but the wait to close is the problem). Sellers are accepting all cash offers and we
cannot compete at this point in time. Normally there are enough home on the market to satisfy the investor and the homeowner.
I suspect that something will be worked out with the vacant homes but don't know when. Perhaps when the approval to
allow the banks to sell comes they might all hit the market at once. This would perhaps give us another chance at a fixer
upper and probably would indicate a big drop in prices again. Big mess. Biding our time and don't know if and when the
chance will come again for us to do another fixer.
To give you an example: at any one time there is 2.5% of the home in our neighborhood (7,000) on the market and that
equates to about 150-200 homes in all price ranges. Today there are 33 homes up for sale. Market is just stupid and the
homes sell in a few days or less. Great if you are selling but horrible if you have to sell to buy. Nobody is taking offers
contingent on sales as they just don't have to. We can't sell and then hope to buy as there is just not enough inventory
to count on that happening, especially in our price range. Desirable neighborhood.
Oh well, rant button is now off.
bob
The youth in this country needs to rebel, cancel the national debt and take the guillotine down Wall Street.
It's amazing how a generation can grab all the assets , all the land and then write themselves trillions in IOUs (Treasuries) for their kids to pay off and still call themselves "The Greatest Generation"
<< <i>
<< <i>If you want to see a housing bubble, then you will have to look overseas. There is NO housing bubble in the USA. In fact, the USA has the cheapest RE on the planet. Same cant be said for Canada, Australia, Switzerland, Norway, Great Britain. Wow, interesting, all of those countries have currencies that constitute the basket which with the dollar compete. Interesting indeed.
Homer. The end. MJ >>
That would be Mr. Simpson to you.
Knowledge is the enemy of fear
Housing continues to look regionally strong, the properties that I'm looking at are selling fast with multiple offers, sometimes over the initial asking price.
Liberty: Parent of Science & Industry
Negative Gearing
<< <i>Housing continues to look regionally strong, the properties that I'm looking at are selling fast with multiple offers, sometimes over the initial asking price. >>
That's usually what happens after a strong bounce off the bottom (ie 2011-2015). "Average" US housing should peak on this dead cat bounce in 2015-2016 along with the stock market. QE not only fueled a stock market rally but also home prices rallying and easy loans for new cars. Doesn't have to be a mania to experience a deeper correction. Should we expect that the housing boom from 1955-2007 is all done correcting after only 8 years? In any case wouldn't it be normal to retest a major low/bottom like 2009-2011 at some point in the future?
People not paying any mortgage payments every month rolls straight into economy , goin out to eat, bars, more clothes, gadgets, cars, boats, vacations, etc...
<< <i>Housing bubble is great for the economy, vis a vis the last one helped fuel the recovery .... >>
wiser men have argued that housing caused the need for the recovery. lol
<< <i>People not paying any mortgage payments every month rolls straight into economy , goin out to eat, bars, more clothes, gadgets, cars, boats, vacations, etc... >>
Sounds like something that would drip out of Paul Krugman's mouth. People not paying any mortgage are living in their cars with no disposable income or they are paying rent. There is no extra money rolling into the economy. lol
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Sounds like something that would drip out of Paul Krugman's mouth.
Yeah, that doesnt make any sense.
Knowledge is the enemy of fear
I knew many people/ family's that stayed in there homes up to 2-3 years without making a payment, they lived life large.... And if I knew a bunch of people then it was happening all over...
I figured it out when during a supposed collapse and recession the lines at all the restaurants during Monday's , Tuesday , etc were an hour long all the time ... They were always packed, as were the costco n sams clubs... All while
Watching homes sell for 200k that sold for 800k...400k that was 1.2 mil... And so on....
I knew many also in the Chicago area, but that didnt help the economy along and that situation willl not happen again in our lifetimes. The system was just overwhelmed and the landlords (banks) couldnt evict (forclose) fast enough.
Knowledge is the enemy of fear
Refinanced the primary residence for 30 years fixed at 3.875, and took out a new mortgage to finance 75% of a new vacation/seasonal rental, 30 year fixed at 3.625%
Liberty: Parent of Science & Industry
<< <i>Something Weird in the Housing Numbers?
Refinanced the primary residence for 30 years fixed at 3.875, and took out a new mortgage to finance 75% of a new vacation/seasonal rental, 30 year fixed at 3.625% >>
Your vacation/seasonal rental was underwritten as a second home, no? Past year i have seen a steady drop in my rates. April 2014 was 5%, Nov 2014 was 4.875% and now Jan at 4.25% (all on investment property). Even if i wanted to buy down my rates I couldnt get near the rate you were offered unless it was underwritten as a second home vs investment property.
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
Liberty: Parent of Science & Industry
Congrats on the second home though!
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole