Am I the only one feeling like we are due for a recession, that a quarter million is a crazy figure for the median house price, and that maybe this isn't such a good time to buy a house?
That sounds miserable.I can't wait to be a renter again.
Says the real estate agent....That sounds miserable.
Am I the only one feeling like we are due for a recession, that a quarter million is a crazy figure for the median house price, and that maybe this isn't such a good time to buy a house?
Are we due for a recession? Maybe. But the fact is that real estate is an excellent place to park money, and there is a LOT of money out there looking for places to park.
Yep, own because you want to own, or because you can make good cash flow on rent. Not because “it’s a good investment!”I will disagree the real estate is an excellent place to park money. It has a negative carrying cost (you pay taxes and insurance) to own it. If it has great cash flow, for instance if it is rented for considerably more than those costs - it can be good. Or if you live in it for a cost less than renting. But owning for the sake of owning? Lots of other assets can outperform real estate.
Yep, own because you want to own, or because you can make good cash flow on rent. Not because “it’s a good investment!”
When punjab isn't over drinking all your beer.Using myself as an example - my house sounds great in the last 7 years. Definitely worth more than I paid for it, but I've forked over $80,000 in interest, and $75,000 in taxes and insurance for the "investment." That's about the premium it would sell for over what I bought it for. Had I just bought it and not lived in it, it would be a substantial loss in real dollars. It's been a nice place to live though.
It's nice having control over my housing costs. With renting those go up without getting any of the benefit of appreciation.Says the real estate agent....
Sure if things always appreciate or if you plan on staying in the same house for the duration. I just don't want to get caught in a house i don't want to live in forever and have the market tank. Been there done that.It's nice having control over my housing costs. With renting those go up without getting any of the benefit of appreciation.
Sure if things always appreciate or if you plan on staying in the same house for the duration.
Same. If i was smart, and not ruling this out, my wife and i should sell our place here in seattle and goto the cologne base for a few years and come back when the market corrects.And, you know, the transaction costs of selling. Which are quite a bit more than zero. Renting a house in my neighborhood is currently cheaper than owning.
You first have to make a purchase before the market has hyperinflated. My total holding costs with utilities and repair reserve is $1,000. No way I would find similar to rent for under $1,500.Sure if things always appreciate or if you plan on staying in the same house for the duration. I just don't want to get caught in a house i don't want to live in forever and have the market tank. Been there done that.
Ok but what if you want to move in the current environment.You first have to make a purchase before the market has hyperinflated. My total holding costs with utilities and repair reserve is $1,000. No way I would find similar to rent for under $1,500.
I would rent the current place and look for another wholesale deal.Ok but what if you want to move in the current environment.