Ug buy ulgy houses. Ug bite off more than he can chew! Poor Ug.
I'm about to make 100,000 dollars... how about you?
If you do not plan on living in a house for more than 5 years, why buy a 30 year fixed?
If you buy a 30 year fixed on a 300,000 dollar loan for 6% you would pay 1800 per month. The same house would fetch a rent for 1400 per month. For 400 dollars more you can own your own home.... what makes sense?????
Of course we've been over this time and again. There are localized bubbles. Buy smart, location location location.
This is reason # 8 why Illegals are allowed to pour in here,
Most in the housing sector benefit.
Naked self-interest/greed is changing America,and putting her at risk.
while there are good points here, to say that speculators are responsible for ALL new housing starts is ridiculous
the investors (around 40% from california) have ruined it for the rest of us trying to become 1st time home buyers. The average housing price in Chandler, Az, which used to be affordable, has gone up 43% in one year, making it darn near immpossible for a mom with 4 kids (dad is having a mid-life crisis and received the home, because the judge "wanted" him to have it), to buy a home. I can't do it, so, I have to stay in the same neighborhood, for the kids or the judge will (I'm a stay at home mom for 18 years), give primary custody to him, the houses have gone from very affordable to outrageous. I will never be able to own my own home again, in this neighborhood (same schools-mandatory for myself and the kids), or even own my own home without moving into a not-nice area, not suitable for children, or way out into another county, which I can not or won't do because of my kids' schools they attend. Even those houses in the counties just outside Phoenix Metro, are now becoming unaffordable. Thank the investor, I hope that the ones, esp, those who don't have a stake in Arizona, lost their shorts, and I AM A CAPITALIST, I JUST DON'T LIKE WHAT THEY HAVE DONE TO THE LITTLE GUY. I have tried to buy in the new (no yard) subdivisions, and the developers have told me, in answer to my question, NO, WE'RE NOT SELLING TO INVESTORS HERE, bull, after the subdivision sold out soooooooo quickly, when the houses started to get built, BINGO, the selling signs come out, and you guessed it, big companies representing investors, or the signs come out renting (houses bought by these big companies that do this in AZ and beyond), who loses out? We who are trying to buy houses. The prices are articficially inflated. What was built and sold for 128,000 4 years ago with 1750 sq ft., two story, double garage, small yard, gated community, is now selling for 250,000+, prior to all this, the appreciation was around 10%, I know this because I am a native of Tempe and have lived in Chandler for 17 years. What was affordable at 150,000 before this onslaught, now costs around 300,000. Can't do this on 3000 a month, with 4 kids and pets.
This exact scenario played out for both the people who bought my mom's house and for the property I am currently renting. The owners in both cases didn't care about the rental income, as long as they were getting that $10,000/month appreciation. They are about to learn a hard lesson...
I'll not sure the Ivana tower will actually get built - it may be a petty slap at Donald, whose previously announced (and shorter) tower has already sold out. But the high-rise trend in Vegas (as opposed to the wild overbuilding in the suburbs) may remain viable for a long time - there is a lot of Asian money flooding into the market as high-rollers are buying permanent bases of operations for their gambling trips.
Pinging you brother
Like to tap the collective FR brain...Assuming there is a bubble in the areas most frequently said to be bubble markets (NYC, BOS, SFO), and that it will go into decline, what do people think will happen to the more rural areas in the event of those markets declining? Is there an expected move of capital from those frothy regions to the rural areas, kicking up those prices? Or will the rural areas decline in price as well, as the urban bubbles deflate and become more affordable?
I'm interested in leaving my urban rental and buying into a rural area, perhaps an acreage. Not looking to 'speculate' as I actually want to live there, but also want it to be a good investment. Trying to figure out if thats a bad move at this time.
The statistic that only 20% of Californians can afford a house with a fixed-rate mortage is misleading because a high percentage of higher-priced houses in California are sold to affluent buyers from other states. I know because I lived in San Diego county for 25 years and many of the home buyers moving in to San Diego county are affluent people from the midwest, the northwest, and the eastern US who are looking for warmer weather and more of an outdoor lifestyle. A lot of real estate in Southern California is sold to affluent retirees from out of state who want a warm climate in their "golden years." The Palm Springs area is full of retired snowbirds from the midwest.
The author makes another odd statement where he says: "If over 20 percent of homes purchased are investor properties, it appears that practically all new housing starts in America are accounted for by speculative buying." Right in mid-sentence the author switches from the term "investor properties" to "speculative buying." Well which is it? Is he trying to say that all real estate investment is speculation. It's not all speculative. It depends where you buy and how much you pay for the properties. As we've seen repeatedly in the last fifty years, people are going to get burned if they buy properties in poor locations and pay too much for them. But I'm not expecting any kind of a slaughter. Our economy depends so much on housing that the Fed cannot raise interest rates more than about another 1 point without causing a recession. So you're not going to see major interest rate increases that will cause a slaughter among housing investors.
Online Bettors Find a New Love: Real Estate
http://www.nytimes.com/2005/08/22/technology/22consuming.html
Don't know if it's already been posted, but it fits in this thread as another sign of 'end times'.
Recent sale of new construction in Houston:
220 sqft: 136,000
There is no bubble in Houston. The values here are as good any in the nation and better than most, particularly for a large metro area.
California writers like to pretend that their particular madness is endemic to the nation. We don't live in California, partly for the reasons cited in the article and for others. Houston housing is a great buy and will stay that way for some time.
Som of these California real estate goobers are hard to take seriously.
OK, is this a treatise, a commentary, or a freaking poem.