How do you think an upcoming recession may affect home prices?

[vanzandt]

Wow, what a lengthy waste of talk. Still not one reason to own single family over condo.

I was in construction as an electrician for 22 years so probably know far more than you about how housing is built. All my condos are less than 20 years old. I do all maintenance so don't need to hire unless it's for air conditioning.
No, I'm not a REIT. Just a guy buying condos.

Please, make 1 or 2 points about why single family is better than condos.
NO LONG RAMBLES. NO MENTION OF YOU'RE KNOWLEDGE OR MY LACK OF KNOWLEDGE. YOU CAN'T DO IT!

One reason... ok....

I can show you tons of condos that cost between $150K and $200K that the monthly HOA fee is $400 plus/month.
If you can't cut the the grass and sock away enough money to cover a furnace/ac, or worst case a complete roof once every 30 years.... to the tune of $4800/year saved... as I said... buy all the condos you can.

You talk about "no maintenance"... who do you thinks pays for the AC when it goes out, assuming you're not on a chiller system.... who pays for the hot water heater? Who pays for the carpet, the paint, the appliance upgrades.... to which I might add... add zero return.
You can buy a pos house in a nice area, put in granite countertops, stainless steel appliances, some hardwood floors.... and reap huge rewards on the return when you go to sell. You can't do that in a condo.... they sell in a channel. I don't give a f if you put in Trump autographed gold plated toilets... you only get back the prevailing sales price of those condos. If you knew anything about the business you would know how banks and appraisals work now. They don't give a f. If every condo in a complex is selling for $250K.... good luck finding a potential buyer that will get financed for $280K. It ain't happenin ace.

And this whole electrician thing.... BFD. How many homes have you built from the ground up. I can wire a f'ing house and I never worked a day as an electrician. I don't have to, its easy.

 

[vanzandt]

I'll play

With a condo you have given the hoa a blank check to raise monthly fees on you forever. On SFR you aren't prisoner to this. I know of one person with a condo and the fees increased from 200 a month to 600 a month over a span of 10 years. The issue is as the building gets older they have no choice but to jack them up to cover issues that may or not be at your unit. For me the best investment rental you can have are SFR in a college town. 4 or 5 bedroom house getting $600 per room with parents paying the rent. Kids will trash it but that's what the $2400 -$3000 deposit is for. If you rent to a family the same house will only bring around $400 a room.

Bingo. And you can allow the tenants to a own a German Shepard if you so chose. Or any other gd thing you feel like.

 

[vanzandt]

And this whole electrician thing.... BFD. How many homes have you built from the ground up. I can wire a f'ing house and I never worked a day as an electrician. I don't have to its easy. .

And I certainly do not mean to demean a fine, hard-working, profession. That's not my intention. And I apologize in advance for that. That came out wrong.

 

[Cuddles]

It's impossible to make the returns I make by building with rentals. Not even close.

you don't lose ownership of a rental property though? why lose on depreciation deductions & appreciation/equity of an asset you can borrow against?

 

[Overnight]

And I certainly do not mean to demean a fine, hard-working, profession. That's not my intention. And I apologize in advance for that. That came out wrong.

I've done a couple of wiring jobs on 240V, and they scare the shit out of me. I think it has to do with the outlets and plugs, while thinking of Tripods from Mr. Wells. (I can't imagine what the 480V jobs are like)...

 

[vanzandt]

I've done a couple of wiring jobs on 240V, and they scare the shit out of me. I think it has to do with the outlets and plugs, while thinking of Tripods from Mr. Wells. (I can't imagine what the 480V jobs are like)...

Pfff. 10/3 Romex, a 2 pole breaker with one leg on each side of your panel, your neutral, your ground. and pull the meter if you plan on standing in water.

 

[farmerjohn1324]

Pfff. 10/3 Romex, a 2 pole breaker with one leg on each side of your panel, your neutral, your ground. and pull the meter if you plan on standing in water.

Vastly oversimplifying.

 

[NY_HOOD]

A recession will hurt home prices. People wont feel secure about their jobs and income, its also psychological. The more you read about a recession and falling markets, the more you worry.
Mortgage applications will drop despite low rates. However, people will refinance.

 

[Sig]

The reduction of the SALT deduction murdered real estate here in the Chicago area.

?

 

[Sig]

You are aware the supply chain I'm referring to is China, India, SEA, and Latin America right? China is already going dark on supply, India will be next with SEA, and if it spreads any further Latin America will have supply problems as well. We live in a global economy and America hasn't produced anything for itself in years despite mango man claiming he's bringing jobs back. We are completely dependent on cheap foreign labor. It could never touch the US and our economy would tank if our cheap labor is suffering.

He's got it in his head that supply chain disruptions absolutely, positively can't cause global economic issues because no recession in the past has been caused by a supply chain disruption. And he insists on believing that the death rate is what matters because something like this can only really be bad if it's like the bubonic plague (his example not mine) and kills a significant percentage of the world's population. But he's an expert at macro, gleaned from building spec houses apparently and by his own admission he doesn't actually trade. Bizzare that he decided to suddenly grace us all with his infinite wisdom