Um yeah. Im not going to spend $875,000 on a stupid house, ok?

[smack Down]

Originally posted by: puffff

Originally posted by: smack Down

Originally posted by: Fritzo

Originally posted by: Slew Foot

Originally posted by: FrankyJunior
That's why you buy a hosue is its value always goes up (at least under normal circumstances).

Wrong-o. House prices fluctuate like anything else. Up some years, down some years, just like the economy. On average, a house increases about 1% above the rate of inflation, a piss-poor return for an investment.

Unless you're a victim of urban blight, your house will increase in value 5-10%/year. Not many people lose money on a house sale.

How can home prices increase by 5-10% a year when income remains flat. How can people pay more for a house if they don't make more money?

rich people get richer, poor people become poorer. and so it only looks like incomes are remaining flat

There is a hell of alot more poor people then rich people. As poor people get poorer then the price of housing will decrease. Rich people only need so many houses.

 

[Slew Foot]

Originally posted by: Fritzo


Unless you're a victim of urban blight, your house will increase in value 5-10%/year. Not many people lose money on a house sale.

http://flippersintrouble.blogspot.com/

Do I have to keep posting this link? Page through the four counties main counties around Sacramento (Sacramento, Yolo, Placer, El Dorado) and youll find 1000s of people who are trying to sell for up to 25% less than what they bought for.

Same thing is true in San Diego and many other CA counties. Not really urban blight, it's the flight of the speculators combined with ARMs resetting.

 

[FelixDeCat]

This thread sorely needs some social justice commentary from
dmcowen!

 

[ponyo]

Originally posted by: EyeMWing

Originally posted by: smack Down

Originally posted by: EyeMWing

Originally posted by: FelixDeKat

Originally posted by: Geocentricity
My parents' house which I'm still living in is worth close to 950k.... either you want to live in the middle of nowhere or you're poor

And Ill bet dollars to donuts that home was probably worth $450k just five years ago. Damn flippers and speculators screwed up everything.

5 years ago, my parents bought our house for $150k. They recently recieved an offer for $1.5M - and the place isn't even for sale. And the 1.5M offer involved demolishing the ENTIRE preexisting structure.

Haha your parents are fools for not accepting the offer.

Not really, considering $1.5M would get them fvckall nothing comperable - the existing structure has been retrofitted into a 6BR/3Bath dormitory, sits on a beautiful spot, excellent public schools, and most importantly is located within commute distance of my father's place of work (he has no marketable skills and the benefits package is literally a lifeline in this situation). That, and as heartless as this is going to sound, I'd much prefer they not sell it, because I'm in a spot to make a RAGING FVCKTON of money from that place a few decades down the road.

Once the parents are gone, the place is mine. Around the same time, all the neighbors should be dying. A developer is already slowly buying the properties in the neighborhood as they become available. The key piece is really the property adjacent to the house, which is a MASSIVE chunk of farmland. The aging farmer is going to leave that land to my parents, who will continue leasing it out to commercial farms to pay for the property taxes. That also becomes mine. Being the sole holdout against a developer is a very lucrative position to be in - on top of the RIDICULOUS value of the farmland and house combined.

*cough* bull *cough*

 

[jadinolf]

Originally posted by: FelixDeKat

Originally posted by: jadinolf
My house is nothing to brag about but similar ones are on the market here for $850K or so.

Yes, IMHO they are overpriced. I paid $55K for mine in 1978 and I paid too much.

Yeah, California.

So I guess youre not interested in my $150k offer eh?

Make it $175K and we'll talk.

 

[Red]

I sell homes for a builder in central Florida. We dropped our prices about 20% four months ago.

IE... 1,600 SF 3/2 was selling around $195,000... is now at $165,000

 

[amol]

I paid $0 for my current dwelling. Hurrah for being a minor still under parental care!

 

[Corporate Thug]

Originally posted by: FelixDeKat

Originally posted by: Geocentricity
My parents' house which I'm still living in is worth close to 950k.... either you want to live in the middle of nowhere or you're poor

And Ill bet dollars to donuts that home was probably worth $450k just five years ago. Damn flippers and speculators screwed up everything.

I'm not sure that the value DOUBLED in 5 years...













it prolly quadrupled

 

[jagec]

Originally posted by: smack Down
There is a hell of alot more poor people then rich people. As poor people get poorer then the price of housing will decrease. Rich people only need so many houses.

Poor people can plan to allocate more of their $$$ toward housing as the cost goes up. Even the "poor" people who are buying houses aren't so poor that they can't trim a little from the car, eating-out, or "fun" budgets.

And rich people can certainly buy more houses than they need, and rent them out. They didn't get rich by not seizing opportunities when they come knocking.

Originally posted by: EyeMWing

5 years ago, my parents bought our house for $150k. They recently recieved an offer for $1.5M - and the place isn't even for sale. And the 1.5M offer involved demolishing the ENTIRE preexisting structure.

They paid $150k for it. That's what I said. Period. No further details. You assumed that the price fell in line with the value. Your mistake.

Do you even know the definition of "deceit", or do you just assume that if you're not full-on lying, it must be the other person's problem?:roll:

 

[gsethi]

Originally posted by: DCFife
My dad sold the house where I grew up in Venice, CA in 1988 at a peak in the housing market. He paid nothing for the house (it was his grand-fathers) and he sold it for $308k to the listing agent within 24 hours of listing it. The agent put $60k in upgrades into it and re-listed it for $540k. He wound up holding it for over 5 years because the market dropped out in 88/89. Of course, according to Zillow, that same house is now worth $1,049,383...all 1bd/1ba/913sf of it!

Assuming that money doubles every 5 years, your dad is still better off selling the house in 1988 for 308k as follows:
1988: $308k
1993: $616k
1998: $1.23 M
2003: $2.46 M
2008: $4.92 M

Now lets be more conservative and assume that money doubles every 7 years:
1988: $308k
1995: $616k
2002: $1.23 M
2009: $2.46 M

Just shows that housing market is NOT a good investment. It is GREAT if you are going to live in the same house though (as you save on monthly rent) but considering just investment, it is better to invest your $$$ elsewhere.

 

[bsobel]

Just shows that housing market is NOT a good investment. It is GREAT if you are going to live in the same house though (as you save on monthly rent) but considering just investment, it is better to invest your $$$ elsewhere.

No, what it shows (if you take your numbers without argument) is that it's not a good investment if housing prices rise monolthiclaly and evenly througout the country. The don't, buying into areas growing faster than the average (which is what most realestate speculators, including myself seek to do) completely changes the value proposition.

Bill

 

[Greenman]

Originally posted by: Red
I sell homes for a builder in central Florida. We dropped our prices about 20% four months ago.

IE... 1,600 SF 3/2 was selling around $195,000... is now at $165,000

Are there any left? How much dp would I need and what is the rental market like?

Around here, 165k won't get you into a 1 bedroom condo in the bad part of town.

 

[dxkj]

Originally posted by: FelixDeKat
Not $525,000,

Not $375,000,

Not even $215,000...

$150,000 take it or leave it. Thats right - I said $150 and your lucky I dont make it $125.

So stop thinking you can charge what-ever-the-fook you want for your stinkin' crown molding and wood flooring - 'cuz I aint payin for it, aight? I dont care if you resodded the yard or redid the kitchen or what ever. I dont care. So you can take your dream number and go jump in the lake. :laugh:

Am I crazy or what? Or do you agree that even with property values on the decline everything out there is still waaaaay overpriced.

If you want to pay $150k, then just get a piece of crap that is only worth 150k...

You think someone who is selling a house for 875k cares if one person is making a stand? lol

 

[Pabster]

Originally posted by: EyeMWing
Being the sole holdout against a developer is a very lucrative position to be in - on top of the RIDICULOUS value of the farmland and house combined.

Apparently, you missed that pesky little thing called eminent domain

 

[smack Down]

Originally posted by: Greenman

Originally posted by: Red
I sell homes for a builder in central Florida. We dropped our prices about 20% four months ago.

IE... 1,600 SF 3/2 was selling around $195,000... is now at $165,000

Are there any left? How much dp would I need and what is the rental market like?

Around here, 165k won't get you into a 1 bedroom condo in the bad part of town.

The rental market is great if your looking to pay rent.

 

[gsethi]

Originally posted by: bsobel

Just shows that housing market is NOT a good investment. It is GREAT if you are going to live in the same house though (as you save on monthly rent) but considering just investment, it is better to invest your $$$ elsewhere.

No, what it shows (if you take your numbers without argument) is that it's not a good investment if housing prices rise monolthiclaly and evenly througout the country. The don't, buying into areas growing faster than the average (which is what most realestate speculators, including myself seek to do) completely changes the value proposition.

Bill

Now thats true for any market, right ?

Even in the stock market, some stocks will rise much faster than the average while others wont. But look at the overall average.

Again, in the real estate market, its all about LOCATION LOCATION LOCATION.

 

[dxkj]

Originally posted by: EyeMWing

Originally posted by: dxkj
So they paid 150k for the house but it was valued at 400k, why try to deceive us?


The price went from 400k to 1.5 million , thats under 400% increase..... 150k to 1.5 million would have been a 1000% increase...

these are huge differences, what was the point of misleading, so we would go, oh wow! his parents are savvy!? ?

5 years ago, my parents bought our house for $150k. They recently recieved an offer for $1.5M - and the place isn't even for sale. And the 1.5M offer involved demolishing the ENTIRE preexisting structure.

They paid $150k for it. That's what I said. Period. No further details. You assumed that the price fell in line with the value. Your mistake.

And really, I should vacation myself again soon, because it's getting back to that point where every damned time I post in a thread, it turns into people riding my ass about somethingorother.

Right, we are discussing houses and their increase in value, and we should ask you 20 questions to get the truth out of you? Your comment was obviously misleading, so just suck it up.

what next? Your parents put 500k into repairs/improvements on it too? How many questions do we have to ask to get the simple truth out of you?

 

[bsobel]

Even in the stock market, some stocks will rise much faster than the average while others wont. But look at the overall average.

The overall average doesn't matter as it includes all of the people who bought a primary residence for their own housing. You really want to base your assertion on the rate of return of secondary/invesment homes nationwide, which will be different from primary homes.

Bill

 

[mattpegher]

Hell if you think its only worth 150K, I'm sure you can find some comps that will sell for only 150k.
They want a certain price if they don't get it then they'll drop their price or take it off the market.

The flippers didn't make the market jump they just rode the wave, sure they added to it but its changes in interest rates that made the market rise and new home builders that pushed the prices up the most.

The nice thing for those that already own is we got an instant jump in home equity and could refinance easier, but you wont make any money on it because the next house will be just as expensive unless you move to the sticks. Even the sticks house will have inflated in value.

 

[XZeroII]

Actually, building costs have skyrocketed as well, causing the prices of homes to go up. Drywall, copper pipe, lumber prices have all at least doubled in the past couple years (doubled or quadrupled in some cases). So it's not always just speculation that drives up the cost of homes. It's also the cost to build a new house and to repair an old house. Just something to keep in mind.

 

[JulesMaximus]

Whatever dude...

 

[tyler811]

We bought our house 2 years agos for $145,00 1250 sq ft 4bdm 1 bath (yes only 1 but soon 2),ca, 3 car heated garage on a private lake. Well the lake is across the street but the private beach and boat launch is 4 minuts walk/2 minute drive. We have added rain gutters with underground drainage, a ceiling fan in living room, outside security lighting, landscaped the front and side with white rock and assorted perinnials, bar between the living room and kitchen, outside electric receptacles, additional heating ducts in living room, new roof on the garage, took down a metal shed behind the garage for nice concrete patio area (15x20) new water conditioner, large 88 gallon water tank, and small assorted cosmetic work. I was told by a real estate agent I could sell it around $170,00


Sorry point being if you look around you will find something. Right now it is buyers market at here in MI

 

[Anubis]

Originally posted by: LikeLinus

Originally posted by: EyeMWing

Originally posted by: FelixDeKat

Originally posted by: Geocentricity
My parents' house which I'm still living in is worth close to 950k.... either you want to live in the middle of nowhere or you're poor

And Ill bet dollars to donuts that home was probably worth $450k just five years ago. Damn flippers and speculators screwed up everything.

5 years ago, my parents bought our house for $150k. They recently recieved an offer for $1.5M - and the place isn't even for sale. And the 1.5M offer involved demolishing the ENTIRE preexisting structure.

Maybe now you can afford an xBox 360 and HDTV?

So full of sh1t.

he might not be FOS, my friends rents sold their last house for 1.2 mill which they had for 20 odd years, and teh person that purchased it knocked it down because they also purchased the lot next to it for something liek 12 mill and "didnt want to have to see another house next to them"

this was in lincon Ma,

some people do strange things with their money

 

[tfcmasta97]

Originally posted by: mattocs
I just bought a house for $63k. We also borrowed another $10k for some improvments.

wow i didnt even know houses could be that cheap.

no im not rich, i live in a semi-detatched house we got for like $225 CAD 10 years ago, think its worth $350 now

do you live in the middle of nowhere? how many people live in your town?

 

[smack Down]

Originally posted by: tyler811
We bought our house 2 years agos for $145,00 1250 sq ft 4bdm 1 bath (yes only 1 but soon 2),ca, 3 car heated garage on a private lake. Well the lake is across the street but the private beach and boat launch is 4 minuts walk/2 minute drive. We have added rain gutters with underground drainage, a ceiling fan in living room, outside security lighting, landscaped the front and side with white rock and assorted perinnials, bar between the living room and kitchen, outside electric receptacles, additional heating ducts in living room, new roof on the garage, took down a metal shed behind the garage for nice concrete patio area (15x20) new water conditioner, large 88 gallon water tank, and small assorted cosmetic work. I was told by a real estate agent I could sell it around $170,00


Sorry point being if you look around you will find something. Right now it is buyers market at here in MI

I wouldn't call it a buyers market when house prices have jumped 17% in two years because you add a metal shed and patio. You would have to be a fool to buy right now.