5 years from now you may regret not buying a house today...really?

Quote from Clubber Lang:

The problem with U.S. real estate is that most states are broke and have massive entitlements to keep paying out.

The only way to do it is to continue to raise property and other taxes.

My town tried raising my taxes 50% last year. 50%!

I hired an attorney who specializes in those cases and got my taxes back to where they were. Sure enough, I get my tax bill this year, and they tried another 50% raise!

Now I have to hire the lawyer again (who keeps 1/3 of what he saves me on the tax bill for the next 3 years). So even though my tax bill won't go up, I still have to lay out thousands of dollars to the lawyer.
More...

This is the primary reason i remain on the sidelines & have been fighting temptation to leg in again.

Ive been involved in speculation,rentals,multi families since early `90`s and have been pleased as punch with results despite the elbow grease & time consumption as i don`t mind getting my hands dirty.

I`ve legged out on everything except primary res & 1 multi family unit but have been reluctant this time around as i`m aware of what litigation costs to battle the tax man....& we are just scratching the surface on whats to come with legacy costs/entitlements...there is just no way around it.
 
Quote from wartrace:

No way would I "invest" in residential real estate. Why?

1) It isn't liquid.
2) Prices are dependent on interest rates. People buy payments, not the asset value. What happens to valuation when the fed raises interest rates?
3) Rental real estate is a business. You have to deal with "customers" and maintaining the property.
4) Transaction costs are high. Would you trade a stock if you had to pay a 6% transaction fee?
5) Limited market. You can only sell to buyers ready and willing to purchase in you area. Other assets have a "universal" buyer base.
6) Real estate is very local. What happens if they close the largest employer in the area? You have tremendous exposure to localized economic conditions.


Too many risks in my opinion. Have fun!:D
More...
================
Good warnings:cool:

Bear Stearns is [or was] plenty liquid/universal.
New Orleans[nickname NO] is plenty liquid/LOL;
but some people dont like to live below ''sea level'', right near the sea/below sea level..........................................Some do.

True, some do buy payments; but even that may be better than rent.Not a prediction.Some people think a 10 year or 30 years worth of payments means you have to take 30 years. to pay for it.LOL Well it takes all kinds to make a market.

Some did well when interest rates were 10%, but again not a prediction .LOL. Wisdom is profitable to direct.:cool:
 
like the man said
there's owners
and there's renters

and after 20 years of being an owner
I found out I am a renter

I'd much rather call the landlord than spend the weekend at Home Depot or looking through the yellow pages for a contractor

When I had kids we needed a lot of room

but now it is just me
2 bedrooms (one for sleeping one for trading)
1 bathroom (I share with nobody)
A nice living room (I never use)
And a great kitchen (more room than my old house had)

all things considered (mainly return on equity you can get on what would have been the down payment) over 30 years it comes out about the same financially depending on which way housing prices go. up and you would have been better buying, down better to rent.

not really a financal decision
just a lifestyle decision

If I had a wife and 3 kids, I'd be a buyer

funny thing is, we rented for many years and somehow always got a great deal on some kind of out of the ordinary house

one time, 5,000 square ft on 43 acres for $240 a month. Just one of those deals where the little old lady got too old to live out in the country and wanted to rent to a nice family. But when rates hit 10% I wanted to buy. She and I both cried when we moved out. Biggest mistake I made was not taking out an adjustable. I wanted a fixed rate, because I had many bad memories. Now same thing. I like rates here. That's good enough for me. 30 year fixed.
 
Quote from oldtime:

we rented for many years and somehow always got a great deal on some kind of out of the ordinary house

one time, 5,000 square ft on 43 acres for $240 a month
More...

What was life like in N. Dakota in 1945?
 
Quote from logikos:

Home ownership for personal use is a losing proposition unless you have a substantial rise in value between buying it and the time to sell. I've been there... a number of times.

Fees, property taxes, commissions, maintenance, yada yada yada. New houses are built with matchsticks. They can't even put a switch plate on straight! Old houses can be a bargain but a maintenance money pit. And please don't give me the tax deduction argument. It's like the tax deduction for a child - the total cost of raising a child by far outweighs the piddly deduction you get.

I love the privacy it brings, but at my age, my TIME is way more valuable. I've spent way too much time mowing, weeding, wacking, shoveling, digging, patching, fixing, furnishing, decorating, cleaning, and replacing!
More...

This is a great encapsulation of why I'm not buying, despite my parents being after me to buy. Also, I like being mobile and able to move around if I want to.
 
Quote from WS_MJH:

This is a great encapsulation of why I'm not buying, despite my parents being after me to buy. Also, I like being mobile and able to move around if I want to.
More...

Good for you! Enjoy your life.
 
He's likely right. Mother in law just bought a condo and she was out bid on a few and raise her bid to get the one she got. Buyers are coming back into the market b/c prices are so low. She paid 63k for a condo that sold for 140k a few years ago.

Quote from achilles28:

Marc Faber says now is a good time to invest in US real estate.

I think it's good advice...
More...
 
You must log in or register to reply here.
Back
Top