Real Estate

[44Thrilla]

Anybody following the market closely? I bought when I thought it was rock bottom and I'm hoping for a nice turnaround. How long am I going to have to wait?

 

[Fez Hammersticks]

I think a lot of it depends on where you live.

Nevada, for example, is about 20 years away from breaking even.

 

[EL PRESIDENTE]

wait for what? You're not going to double your value. Prices will likely take 5-6 years to come up to make a noticeable profit I would guess.

 

[EL PRESIDENTE]

I was surprised, one of my relatives recently got an offer for about what they were asking on a $4million+ house. so that's a good sign I guess on the high end of the spectrum.

 

[44Thrilla]

Not looking to double, just make enough profit to have a good down payment on a real house.

 

[maxiep]

Where are you in Rhode Island? If you're in or near Providence, don't expect an increase any time soon. Also, what kind of place do you own and how does it compare to the rest of the houses in your neighborhood? In RE, it's all about location. Values can be radically different across the street or down the block.

 

[DynastYWarrioR6]

We've gotten offers $1 mil over what we had anticipated. We have an agents open house tomorrow, so we're waiting on more offers. I think the market is actually getting better (SLOWLY). Then again I live in Orange County (CA) by the beach. I really dunno how it is outside of CA.

 

[44Thrilla]

Where are you in Rhode Island? If you're in or near Providence, don't expect an increase any time soon. Also, what kind of place do you own and how does it compare to the rest of the houses in your neighborhood? In RE, it's all about location. Values can be radically different across the street or down the block.

No, I'm in North Kingstown, by Narragansett Bay. It's a nice area. I'm about 20-25 miles from Providence. It is a town house in a very small complex (only 6 of us). We're in a heavily wooded area, but I'm only a mile away from the main road. It was a foreclosure when I bought, got it for 109,000. Back in 04, it sold for 203,000. There aren't a lot of condos available in this town, so I think it's got decent value.

 

[BLAZER PROPHET]

Anybody following the market closely? I bought when I thought it was rock bottom and I'm hoping for a nice turnaround. How long am I going to have to wait?

Well, geeze, you live in the wilderness- so who knows or cares?

For the other 99.9% who live in the Pacific Northwest, I think housing prices will stay static for at least 10 years. Foreclosures are still high- as an example, my wife and I have tracked about 6 houses in our neighborhood lately (they are on our walking route). They were houses that 2-3 years ago would have sold for about $250/SF. They went on the market about 1 year ago at about $175/SF. All went into foreclosure and are now selling for about $140/SF. No takers, and the neighborhood is a good one. With so many foreclosures like these just sitting on the market, it will have a definitive effect on others. And, not to get all political on anyone, with the crappy things the libs are doing long-term to the economy (both nationally and locally), it's hard to think things will improve in the near future. Our economic situation in the NW is getting worse yet and the forecast is at least 8 more bad years before it starts to turn around. If houses are in the $160/SF area in 10 years, I'd say that was doing very well.

 

[Shapecity]

No, I'm in North Kingstown, by Narragansett Bay. It's a nice area. I'm about 20-25 miles from Providence. It is a town house in a very small complex (only 6 of us). We're in a heavily wooded area, but I'm only a mile away from the main road. It was a foreclosure when I bought, got it for 109,000. Back in 04, it sold for 203,000. There aren't a lot of condos available in this town, so I think it's got decent value.

What are the comparable rents in the area vs. your monthly mortgage payments? What kind of loan did you get standard 30 yr or 15 yr fixed or one of those exotic interest only 5 yr loans?

 

[Shapecity]

We've gotten offers $1 mil over what we had anticipated. We have an agents open house tomorrow, so we're waiting on more offers. I think the market is actually getting better (SLOWLY). Then again I live in Orange County (CA) by the beach. I really dunno how it is outside of CA.

You got offers over $1Million what you were anticipating? Why haven't you sold yet? CA real estate especially Irvine is going to get hammered in the next 2 years.

 

[EL PRESIDENTE]

You got offers over $1Million what you were anticipating? Why haven't you sold yet? CA real estate especially Irvine is going to get hammered in the next 2 years.

Beach homes aren't really affected too much by market swings because the land is scare and everyone wants to live by the beach.

 

[Shapecity]

Beach homes aren't really affected too much by market swings because the land is scare and everyone wants to live by the beach.

Yeah right. Go drive down Corona Del Mar, Laguna, and Newport Beach and view all the foreclosure signs. The beach front real estate has gotten killed in CA from peak pricing. Turtle Rock is the only area that has sustained its pricing.

 

[Shapecity]

Another reason you might want to consider selling now...

On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush's tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts.

 

[44Thrilla]

Well, geeze, you live in the wilderness- so who knows or cares?

Huh???

 

[44Thrilla]

What are the comparable rents in the area vs. your monthly mortgage payments? What kind of loan did you get standard 30 yr or 15 yr fixed or one of those exotic interest only 5 yr loans?

I could rent it out and bank like 200-400 a month, but I'm living here. I have a standard 30 year and I only put down about 4 grand at closing.

 

[Colonel Ronan]

Can I move in with you?

 

[BLAZER PROPHET]

Huh???

Just joking.

 

[44Thrilla]

Just joking.

you got me, you lezbo!

 

[EL PRESIDENTE]

It’s a new paradigm, and everybody who doesn’t buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $15,000,000 starter home in 15 years. They will live in tent cities, and Hondas. This asset bubble is different than all of the others – it will never slow down, or pop. The gains are permanent.

 

[Shapecity]

I could rent it out and bank like 200-400 a month, but I'm living here. I have a standard 30 year and I only put down about 4 grand at closing.

Sounds like you made a great purchase and should be able to continue building equity in the home which you can later use for a sizable down payment on another property. If you can rent out and be cash flow positive why not hold onto it and turn it into a rental property?