Housing prices

[Cessnaflyer]

That's horrible. Well, thanks for letting me know. When I get back we should talk.

For your location, short-term rentals will yield much more income! I usually shoot for a 10% cap rate on long-term rentals. With current prices though this is exceedingly difficult to do without a lot of work that I can't currently allot time for.

 

[renaissance2008]

Yes, for long-term rentals that would be the monthly net profit.

Is that based on having a mortgage on said property with 20% down ?

 

[Cessnaflyer]

Is that based on having a mortgage on said property with 20% down ?

Nearly all of the rules of thumb I have seen have debt servicing in there as one of the expenses.

 

[SlumTodd_Millionaire]

I honestly can’t recommend buying rental properties eight now unless you have some incredible source of cheap off-market deals. Prices are just too high.

 

[///AMG]

I only buy rental properties eight. I turn them into payday loans and then get $400/door. Suck it $200/door peasants

 

[Roger Roger]

I only buy rental properties eight. I turn them into payday loans and then get $400/door. Suck it $200/door peasants

Sigma grindset bro

 

[Roger Roger]

 

[🦈💜]

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?

While I agree this, like all of my similar predictions over the years, aged poorly.

 

[Autothrust Blue]

What recession?

 

[Richman]

Housing prices are like Crazy Eddie....they're insane!!!!!

 

[Cherokee_Cruiser]

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?

Old thread post, but I hope you bought in 2019. You'd be sitting like a king.

 

[///AMG]

Old thread post, but I hope you bought in 2019. You'd be sitting like a king.

Does Jan '20 count? Yes, I thought my wife was an idiot insisting we buy again ("OMG girl, the market is peaked, we will be underwater", etc etc). The first home purchase I doubted her too, and we sold and then paid off all her college debt, both my cars, her car, and still had money left over. So far, if the little "your house is worth this much now" from our lender monthly mailer is to be believe, we are up close to a 50% return. It is insanity. And pilots are horrible with money, case in point (she is not a pilot).

 

[Cherokee_Cruiser]

Does Jan '20 count? Yes, I thought my wife was an idiot insisting we buy again ("OMG girl, the market is peaked, we will be underwater", etc etc). The first home purchase I doubted her too, and we sold and then paid off all her college debt, both my cars, her car, and still had money left over. So far, if the little "your house is worth this much now" from our lender monthly mailer is to be believe, we are up close to a 50% return. It is insanity. And pilots are horrible with money, case in point (she is not a pilot).

Yes, anything in 2019, 2020, 2021 pretty much scored the housing lottery.

 

[killbilly]

We've been planning at some point in the future - don't know when - that we'll likely end up caring for my parents in FL. Originally that plan involved selling our house and moving, because we have a good chunk of equity in it. But we were able to lock in a mind-bogglingly low interest rate on a refi a few years ago and cut it from a 30 to a 15 year. The money is basically free at this point, and we've decided we aren't selling the house, ever.

We'll just keep it and rent it out when it's time to move. One nice thing about the DC area, it's very, very easy to find responsible, good tenants here.

 

[EIR]

Old thread post, but I hope you bought in 2019. You'd be sitting like a king.

We bought in ‘18 at 5%. Refinanced in late ‘19 at 2.5% (best $1000 I ever spent) and have 65-75% equity in the home.

 

[Cherokee_Cruiser]

We bought in ‘18 at 5%. Refinanced in late ‘19 at 2.5% (best $1000 I ever spent) and have 65-75% equity in the home.

Lucky!



First go:

4038 W 179th St, Torrance, CA 90504 | realtor.com®

See photos and price history of this 5 bed, 2 bath, 2,635 Sq. Ft. recently sold home located at 4038 W 179th St, Torrance, CA 90504 that was sold on 06/27/2023 for $1545000.

www.realtor.com

Listed 1.298m, I bid 1.380m, lost and sold at 1.545m


Second go:

2312 Santa Fe Ave, Torrance, CA 90501 | realtor.com®

See photos and price history of this 4 bed, 3 bath, 2,426 Sq. Ft. recently sold home located at 2312 Santa Fe Ave, Torrance, CA 90501 that was sold on 07/06/2023 for $1498000.

www.realtor.com

Listed 1.498m, bid list price, but too late someone had bid list price before us and the seller accepted that one. Sold 1.498m


Last one:

1610 Juniper Ave, Torrance, CA 90503 | realtor.com®

See photos and price history of this 5 bed, 4 bath, 3,212 Sq. Ft. recently sold home located at 1610 Juniper Ave, Torrance, CA 90503 that was sold on 07/17/2023 for $1858000.

www.realtor.com

Listed 1.795m, bid 1.805m, lost and sold at 1.858m



Pretty screwed up to be losing homes in the 1.8 million range in a bidding war. California - the eff you state.

 

[Cherokee_Cruiser]

Saw one in Palos Verdes that got me thinking.

Last sold in 1974 for 61,000. Today listed at 2 million.

I was curious and so looked it up. What was the average salary in California in 1974? Turns out it was about 13k-14k. Taking 61k / 13.5 means 4.5x annual salary for a house price in those days. And that was pre Prop 13. 1978 prop 13 passes and they lock in great property tax rates.

Today, 2 million. Average salary in California for 2023? $74k

4.5x of 74k = 333k

You can't even get a cardboard box under a bridge for 333k in 2023. 2 million house price versus a 74k average salary represents 27x annual salary.

When it comes to housing, the boomers did best - assuming they kept their homes 25-30 yrs. Post 2010 GFC did pretty good. And heck, even 2017-2021 did really good.

The biggest losers going forward are people like me, looking to buy in todays environment in a place like where I am.

https://www.cnn.com/2023/08/17/homes/mortgage-rates-august-17/index.html

And yeah, I shouldn't complain. At least I'm in a position to bid homes in the 1.5 to 1.8m range. I don't know how someone making 74k makes it in the LA area.

 

[EIR]

Lucky!



First go:

4038 W 179th St, Torrance, CA 90504 | realtor.com®

See photos and price history of this 5 bed, 2 bath, 2,635 Sq. Ft. recently sold home located at 4038 W 179th St, Torrance, CA 90504 that was sold on 06/27/2023 for $1545000.

www.realtor.com

Listed 1.298m, I bid 1.380m, lost and sold at 1.545m


Second go:

2312 Santa Fe Ave, Torrance, CA 90501 | realtor.com®

See photos and price history of this 4 bed, 3 bath, 2,426 Sq. Ft. recently sold home located at 2312 Santa Fe Ave, Torrance, CA 90501 that was sold on 07/06/2023 for $1498000.

www.realtor.com

Listed 1.498m, bid list price, but too late someone had bid list price before us and the seller accepted that one. Sold 1.498m


Last one:

1610 Juniper Ave, Torrance, CA 90503 | realtor.com®

See photos and price history of this 5 bed, 4 bath, 3,212 Sq. Ft. recently sold home located at 1610 Juniper Ave, Torrance, CA 90503 that was sold on 07/17/2023 for $1858000.

www.realtor.com

Listed 1.795m, bid 1.805m, lost and sold at 1.858m



Pretty screwed up to be losing homes in the 1.8 million range in a bidding war. California - the eff you state.

 

[alaskadrifter]

 

[BEEF SUPREME]

We've been planning at some point in the future - don't know when - that we'll likely end up caring for my parents in FL. Originally that plan involved selling our house and moving, because we have a good chunk of equity in it. But we were able to lock in a mind-bogglingly low interest rate on a refi a few years ago and cut it from a 30 to a 15 year. The money is basically free at this point, and we've decided we aren't selling the house, ever.

We'll just keep it and rent it out when it's time to move. One nice thing about the DC area, it's very, very easy to find responsible, good tenants here.

I hope you don't mind me making the suggestion but start looking for a reputable property management company early. Fix up the house per their requirements and let them manage the place if you are out of state. Yeah you'll lose some "income" but you'll probably be able to pocket some cash and put away money to fix up the house when things break. Also you'll avoid the nightmare scenario of people not paying rent and squatting etc.