I'm in Real estate in one of the "safer" states and it still looks pretty damn bad. Prices still falling, not alot of buyers. Some but not enough to turn the tide.
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'Foreclosure King' Says Rent Now, and Buy In 2010
- Thread starter ByLoSellHi
- Start date
because of fha loans and only needing 3% down - there has been strong demand in first time home buyer priced homes. Many of the condos and the homes in that category are down 40% and people want them if they can get loans.
My brother just bought a home in San diego last month. There are actually multiple offers on some on properties below 400 in San Diego.
My post was directed to the fact that the higher end seems to be ready to pancake down on top of the 400 and under properties.
My brother just bought a home in San diego last month. There are actually multiple offers on some on properties below 400 in San Diego.
My post was directed to the fact that the higher end seems to be ready to pancake down on top of the 400 and under properties.
Quote from Sponger:
The fact that he drives a beat up truck, and that you find that to be evidence that he is not doing well, shows your ignorance of what it takes to amass great wealth. Typical American attitude that got us where we are in this country - the myth of "look rich" and have negative net worth.
Three of the five millionaires I know in this area buy and drive used vehicles... one bought my old truck 3 years ago.
Many more people I know, however, rent an $800 apartment and drive a new vehicle with a $1500 payment. Short-sighted and unsustainable.
Quote from GermanTrader:
Three of the five millionaires I know in this area buy and drive used vehicles... one bought my old truck 3 years ago.
Many more people I know, however, rent an $800 apartment and drive a new vehicle with a $1500 payment. Short-sighted and unsustainable.
$800 apartment not bad depending where you are. $1500 car payment? What the hell are they buying?
Quote from jem:
because of fha loans and only needing 3% down - there has been strong demand in first time home buyer priced homes. Many of the condos and the homes in that category are down 40% and people want them if they can get loans.
My brother just bought a home in San diego last month. There are actually multiple offers on some on properties below 400 in San Diego.
My post was directed to the fact that the higher end seems to be ready to pancake down on top of the 400 and under properties.
I'm in metro west Boston in a supposedly recesion proof area and I am seeing this too. I have been scouting for SFH to rent in the $400K range (median home price in the area is $680K), finally found a place that was halfway decent (would have been easy to spruce up for rental), good location and on a large level lot (rent now and when prices recover tear down and build a modern house and sell). Asking price was $425K (zillow had it at $527K), multiple offers (more than one from developers) within 3 days it was gone at $486K. If unemployment doesn't rise appreciably then we maybe close to the bottom. Two things that would help immensely is if there was a backstop of mortgages (work outs where terms were extended, rates lowered, and if need be principle reduced in extreme cases) and a stimulous package that addressed growth (like incentivizing corporate capitol expenditure, RD spending, small business investments etc in other words tax credits for things that will stimulate business activity/growth vs government works type programs that don't really promote growth, though having the treasury make cheap loans available to states to upgrade infrastructure, vital roads, bridges etc in addition to the corporate incentives would be good in addition to the more effective corporate incentives). Massive redistribution of wealth in to government services is exactly the opposite of what is needed.
Another area where prices are looking very good at the moment is high end properties in more rural areas, beyond the burbs. I have seen a 30 acre horse farm that is about an hour and a half out of Boston that has gone from $1.4-800K with new paddocks, barn with more thana dozen stalls, tack room and indoor arena etc, just to build all that and buy the land would cost more than $1-1.2. Even if land prices fall substantially further the place is still a good deal.
Used sailboats are also starting to become very attractively priced as are high end used cars.
Quote from GermanTrader:
Three of the five millionaires I know in this area buy and drive used vehicles... one bought my old truck 3 years ago.
Many more people I know, however, rent an $800 apartment and drive a new vehicle with a $1500 payment. Short-sighted and unsustainable.
So true. I've been saying for years that the biggest obstacle for the "average American" in aquiring wealth is strapping themselves with one or more car payments throughout most of their lives.
I can't tell you how many people that I know/see that I know don't make/have a lot of money, or make a lot, but are in debt up to their eyeballs and they get into their 08 Tahoe or BMW 5 series.
Meanwhile I get into my paid for, beat up Camry and I make 4x what they do.
Quote from clacy:
So true. I've been saying for years that the biggest obstacle for the "average American" in aquiring wealth is strapping themselves with one or more car payments throughout most of their lives.
I can't tell you how many people that I know/see that I know don't make/have a lot of money, or make a lot, but are in debt up to their eyeballs and they get into their 08 Tahoe or BMW 5 series.
Meanwhile I get into my paid for, beat up Camry and I make 4x what they do.
Well done. That's how you hold onto your money and not piss it away as the masses do under the spell of fashion and the Joneses. My '02 Honda just keeps purring right along. 210k miles. Driving my old car keeps the Realtors away... they're like flies on shit out here...
Quote from peilthetraveler:
I'm in CA and here we are pretty much at 2001 levels (in my area anyway) I just bought a few months ago (august)a house for 219k. Coincidently that was the average price for all 80+ homes sold so i actually bought at the EXACT average home price in my area. This month the average home price for the 89 homes sold so far this month is 226k. Meaning I've made 3% on my home in 2 1/2 months. I think his advice might be ok for the rest of the country, but the west side, things are starting to move fast. I'm surprised that he is from the west coast and said that.
I'm also guess he has made alot of mistakes. I mean if you are driving a beat up truck and wont even spring for a cell phone, I think he must be losing as much on some deals as he is making, especially going wild into buying forclosures where he cant possibly have time to examine in detail everything and must lose money on some of these deal. I wouldnt be surprised if he barely breaks even and is lying about being frugal...he probably just cant afford a cell phone or a new car.
No where in the article does it say that the truck is "beat up". Just because it is 8 years old doesnt mean it is a piece of crap. I own a 02 Tundra and it is in perfect condition, it does its job and that is all I am concerned about. Some people, myself included, buy quality and take care of it. We dont subscribe to the "keeping up with the Jones's" way of life of buying a bunch of shit we dont need just so we can "feel" fulfilled and "appear" to be well off....
My neighbor is "retired", i.e. out of work for a couple of years. I think he has most of his money long stocks. Last year he showed up with a brand new Mercedes SUV for his wife and a BMW for himself.
Last time I talked to him he said he was a few months behind on his mortgage.
Last time I talked to him he said he was a few months behind on his mortgage.
Quote from Mvic:
I'm in metro west Boston in a supposedly recesion proof area and I am seeing this too. I have been scouting for SFH to rent in the $400K range (median home price in the area is $680K), finally found a place that was halfway decent (would have been easy to spruce up for rental), good location and on a large level lot (rent now and when prices recover tear down and build a modern house and sell). Asking price was $425K (zillow had it at $527K), multiple offers (more than one from developers) within 3 days it was gone at $486K. If unemployment doesn't rise appreciably then we maybe close to the bottom. Two things that would help immensely is if there was a backstop of mortgages (work outs where terms were extended, rates lowered, and if need be principle reduced in extreme cases) and a stimulous package that addressed growth (like incentivizing corporate capitol expenditure, RD spending, small business investments etc in other words tax credits for things that will stimulate business activity/growth vs government works type programs that don't really promote growth, though having the treasury make cheap loans available to states to upgrade infrastructure, vital roads, bridges etc in addition to the corporate incentives would be good in addition to the more effective corporate incentives). Massive redistribution of wealth in to government services is exactly the opposite of what is needed.
Another area where prices are looking very good at the moment is high end properties in more rural areas, beyond the burbs. I have seen a 30 acre horse farm that is about an hour and a half out of Boston that has gone from $1.4-800K with new paddocks, barn with more thana dozen stalls, tack room and indoor arena etc, just to build all that and buy the land would cost more than $1-1.2. Even if land prices fall substantially further the place is still a good deal.
Used sailboats are also starting to become very attractively priced as are high end used cars.
good thoughts...
2-3 year luxury SUVS are down my 60-70% .