I have family who have been owned a realty company for years in New England and they cant sell anything. Everytime they have clients, the banks wont give them loans. Its so bad right now to get a loan for a house that some are requiring a minimum of 40% down. Thats a big change from 2-5% during the housing boom.
I can't disagree with you on any of these points.
I for one was never invested into the real estate market. I've always bought to own and live in any home I got.
you always hear about people buying Real estate to leverage their portfolio
but there was a time i thought about Flipping .... there was a time and place when it was well worth it...
GMR what area?
Most of Greater Boston is doing pretty well because there are land issues because of ocean , strict zoning laws, nimbyism and of course the low rates.
I do agree about long-term migration patterns. They stalled out because of the bust in the sun belt after '08 but they've started to pick back up.
Most of Greater Boston is doing pretty well because there are land issues because of ocean , strict zoning laws, nimbyism and of course the low rates.
I do agree about long-term migration patterns. They stalled out because of the bust in the sun belt after '08 but they've started to pick back up.
umm if someone is asked for 40% down on a home then there is an outlier issue here. With a low 600's credit score, good DTI, and 5-10% you can buy a home. Someone needing 40% had a DTI (debt to income ratio) out of whack to sell the mortgage on the open market.
they also have to prove their income. Hard to prove Id they make a living by "investing" with advice on this forum. Haha
I still think it can be a really good investment if you are investing for cash flow/appreciation. If you are getting 6-8% on your $ then you don't really need the home to go up in value like gangbusters.
Housing might become a little more decentralized going forward thanks to technology and transportation advances. Also migration from North and East to South and West where land isn't as expensive.
Then there is just the simple fact that right now you can get 100k worth of loan for $475 a month with rates at 4%. If rates went to 7% that is an extra $190 per 100k a month. On 400k, that is 760 bucks. Considering housing as a % of budget mainly stays fixed in the 25-30% range then this would make it tough on price growth going forward. Cost of financing only got 1 way to go from here.
Or it could keep going up just like it has the last 60 years, stuff isn't easy to predict obviously.
I wonder if some people dont want to hold overnight right now and are selling towards the end of the day of late causing the declines at the end of recent sessions?
I have a pretty high risk tolerance and want to invest long term so i am going to continue buying in small on these dips but leaving a decent amount in reserve....did quite well in the last downturn by having some $ on the sidelines ready to go to work. I am about 65% equities and 35% cash/equivalents right now
Not in my area, shit is flying off the market...
Two houses in my town just sold in the high 900's, my best friend had one of the listings. Keep in mind nothing in my town has gone over 900K in the last 10 years.
And I'm in a slow growth town right now, towns closer to the city its ridiculous. Well qualified buyers can't buy because of the lack of buying options.
When I was telling BAS a few posts up I think returns won't be great going forward. This is mostly what I was referring to.
I think these are mostly bad purchases, similar to people buying at the top in '06-07 range after the big runup from '00 and on. I don't think real estate is necessarily going to collapse like last time but this idea that you need to hurry up and buy because the market is only going to go higher is clearly wrong. Rates aren't going to go any lower and prices just went parabolic since '08, people always make the mistake in bull markets that it will just go up in perpetuity.
In areas where the dynamics are truly changing (Cambridge becoming the Silicon Valley of the East Coast and the bump that whole surrounding area gets, the runups make sense) but in areas where pretty much nothing has changed other than it is cheaper to finance debt, it is a mistake.
100% agree.....never a good investment to buy at the very top end of a towns market. Especially when the towns housing market growth looks like a horizontal line.
Can't look to make any money on that property.
These people got around 970K, they bought for 899K 10 years ago, I know they have around 130K into the place. They lost....
They lost when lots of people around them are making money.
