Everyone I know is buying houses

[entropy91]

What's the endgame here? Are they going to dump the economy and fleece everyone out of "their" homes?

Was looking into buying a house awhile ago, but everyone buying makes me not want to buy.

[Destor]

That would be one of the economic benefits of low interest rates, they’re practically giving money away rn

I locked in 1.44% on my house, might even go as low as 1.34%

[katya422]

That would be one of the economic benefits of low interest rates, they’re practically giving money away rn

I locked in 1.44% on my house, might even go as low as 1.34%

This.

Also as a hedge against inflation.

It seems like players from small to massive are continuing to pour into rental housing also.

If you can purchase a property now w/low interest and then we see inflation (higher prices, maybe higher wages):

- you benefit by paying back the loan with less valuable dollars

- also potentially see a good positive cash flow on rent receipts less expenses as higher prices + stagnant wages leads to even fewer people being able to purchase a home > more people are forced to rent > rental prices are driven higher

IIRC realtor.com has the median rental for Fort Worth now at $1700 a month. Property taxes help push rents higher here too though. If the house is an owner occupied primary residence you can claim the homestead exemption. OTOH if the property is a known rental/used to generate a profit they tack on extra taxes above the standard rate.

[Droopdx]

Can’t even find a dump in portland under $450k smh

[guest89]

Everyone buying makes you not want to buy?

There are historic low interest rates on 30 year mortgages. That's why everyone is buying.

[Lefticle]

Hoping to buy another house in a year or two.

[All-Star11]

Just sold one of my houses (closed 2 days ago).
people are over paying like crazy. I couldn't say no lolerz

[Jestbrah]

lol at the logic "everyone is doing it so now I don't want to"

Home prices are low and interest rates are extremely low and both of these things will be going up.

It has nothing to do with how many people are/aren't doing something, its not the stock market. Buy in an area that should be appreciating in value, buy low, lock in a low interest, and its nothing but gains from there. It is a terrible time to be renting right now.

[IlChosenOne]

Everyone you know is an idiot


Rock bottom interest rates has led to massively inflated prices

Hoping to buy another house in a year or two.

This

[CaliSuperSport]

These interest rates are hilariously low.

[dcbone30]

My closer circle of friends have all bought within the last year except 1. That's 6 people. Rates are low, prices can be a bit high but I made 50k off selling my last house and I did 0 improvements to it over the last 4 years. Moved into a bigger one on more land, and my monthly payment is lower despite being a bigger loan

[rootcon]

My dad makes good money buying crap houses, gutting the insides, doing all the construction work himself, then selling for a huge profit. But to do this, one has to possess all the tradie knowledge, which all the different trades summed up, is actually immense

[Unstumpable]

Everything seems really overpriced in my area right now.

[Subaruski]

You could always look into REIT, real estate investment trusts.

Can’t even find a dump in portland under $450k smh

[chino3]

What's the endgame here? Are they going to dump the economy and fleece everyone out of "their" homes?

Was looking into buying a house awhile ago, but everyone buying makes me not want to buy.

Imagine being an edgelord when it comes to buying a house fukkin LMAO

[guest89]

lol at the logic "everyone is doing it so now I don't want to"

Home prices are low and interest rates are extremely low and both of these things will be going up.

It has nothing to do with how many people are/aren't doing something, its not the stock market. Buy in an area that should be appreciating in value, buy low, lock in a low interest, and its nothing but gains from there. It is a terrible time to be renting right now.

Rent goes up on average 3-5% per year. Home's appreciate on average 3-5% per year. Sub 3% interest rates on mortgages right now. GF just got 2.25%. Its basically a no brainer to buy for a long term hold assuming your financially able to.



I know there are a lot of social media financial guru's in places like NYC, Miami, California, etc. that talk about how renting is superior to buying. Invest your money in the market/business instead of in a single family home. Etc. But the simple truth is there is a massive opportunity in real estate right now.



I'm considering liquidating my hobby portfolio and going in on 4 new construction homes. I bounce out of this house into a new construction home. Rent out this house and 3 other new construction homes and live in the 5th. Should be able to cash-flow a conservative $3000-3200 per month after all expenses are paid.



Considering it heavily. But my hobby portfolio is long on TSLA and I really think its going to make massive gains in the future.

[Jestbrah]

Rent goes up on average 3-5% per year. Home's appreciate on average 3-5% per year. Sub 3% interest rates on mortgages right now. GF just got 2.25%. Its basically a no brainer to buy for a long term hold assuming your financially able to.



I know there are a lot of social media financial guru's in places like NYC, Miami, California, etc. that talk about how renting is superior to buying. Invest your money in the market/business instead of in a single family home. Etc. But the simple truth is there is a massive opportunity in real estate right now.



I'm considering liquidating my hobby portfolio and going in on 4 new construction homes. I bounce out of this house into a new construction home. Rent out this house and 3 other new construction homes and live in the 5th. Should be able to cash-flow a conservative $3000-3200 per month after all expenses are paid.



Considering it heavily. But my hobby portfolio is long on TSLA and I really think its going to make massive gains in the future.

I like the idea of renting out multiple unit houses, its a lot of work and tenants usually suck but more capital overall and for just single digit investors I have heard more success in that then single family home rentals.

[Ratfish]

Can’t even find a dump in portland under $450k smh

hehe

[guest89]

I like the idea of renting out multiple unit houses, its a lot of work and tenants usually suck but more capital overall and for just single digit investors I have heard more success in that then single family home rentals.

There are a ton of four plexes for sell in my area for 150K-200K, but they are ghetto AF. You can rent each unit for $500-600 per month. But the tenants aren't exactly reliable to pay rent and will destroy it when they leave. A lot of realtors won't handle the deal/show the houses or if they do its only from around Daybreak til 10:00-11:00AM. Property management businesses won't service these locations. I've talked to a few people that own some of these buildings and it seems like a lot of them operate at a loss.

As far as decent town-homes. They are an option. But they are expensive as hell when they are for sale. And there aren't exactly many to choose from because people either don't sell the or up charge their price.


I know it sounds crazy but I know a couple of realtors and they are buying new construction homes (3-4 bed - 2 bath with attached garage) as rentals. They are dumping 'older' rental properties in favor of brand new places with 30 years mortgages.

[eternalone423]

Everyone you know is an idiot


Rock bottom interest rates has led to massively inflated prices




This

The overpricing is why I just signed contract for new construction.

I am building a 5br 3.5b 4k sqft at a real good price compared to buying resale. House prices are crazy.

I also got 2.5% on the mortgage.

[eternalone423]

My closer circle of friends have all bought within the last year except 1. That's 6 people. Rates are low, prices can be a bit high but I made 50k off selling my last house and I did 0 improvements to it over the last 4 years. Moved into a bigger one on more land, and my monthly payment is lower despite being a bigger loan

That's it

[Jestbrah]

There are a ton of four plexes for sell in my area for 150K-200K, but they are ghetto AF. You can rent each unit for $500-600 per month. But the tenants aren't exactly reliable to pay rent and will destroy it when they leave. A lot of realtors won't handle the deal/show the houses or if they do its only from around Daybreak til 10:00-11:00AM. Property management businesses won't service these locations. I've talked to a few people that own some of these buildings and it seems like a lot of them operate at a loss.

As far as decent town-homes. They are an option. But they are expensive as hell when they are for sale. And there aren't exactly many to choose from because people either don't sell the or up charge their price.


I know it sounds crazy but I know a couple of realtors and they are buying new construction homes (3-4 bed - 2 bath with attached garage) as rentals. They are dumping 'older' rental properties in favor of brand new places with 30 years mortgages.

the benefit to that is the resale. I know a lot doing that too in my neighborhood and they are just doing it, waiting for the houses to increase by 100k in a couple years, then selling them and boom, 400-500k profit. They aren't really making any sort of sustainable income on the rental but its paying off the loan and a little spare change.

[ezra76]

We are in the process of a refi. We already bought at the "historic low" as an estate sale at 3.25% for 125K in 2012. Now refi is at 2.25% and house is worth $260K. If the appraisal goes through we are getting about $60k and the mortgage payment will be exactly the same. Plus we get rid of the PMI that the fha loan still has on it. Part of the deal was all vehicles and credit cards are being directly paid off, leaving us with $35K cash (and tier 1 credit score once everything is cleared).

Prices and demand are pretty high but still worth it if you can snag a decent property.

[katya422]

I know it sounds crazy but I know a couple of realtors and they are buying new construction homes (3-4 bed - 2 bath with attached garage) as rentals. They are dumping 'older' rental properties in favor of brand new places with 30 years mortgages.

Someone in this area has purchased multiple new construction homes, furnishes them, and then manages them as SROs charging $600 to $800 a month for each bedroom.

[BrotienShake]

Can’t even find a dump in portland under $450k smh

hehe

same hehe

[eternalone423]

We are in the process of a refi. We already bought at the "historic low" as an estate sale at 3.25% for 125K in 2012. Now refi is at 2.25% and house is worth $260K. If the appraisal goes through we are getting about $60k and the mortgage payment will be exactly the same. Plus we get rid of the PMI that the fha loan still has on it. Part of the deal was all vehicles and credit cards are being directly paid off, leaving us with $35K cash (and tier 1 credit score once everything is cleared).

Prices and demand are pretty high but still worth it if you can snag a decent property.

That's fukking it right there. Good job on this!

[MFarrar74]

do yourself a favor and buy a duplex as your primary residence. yeah yeah, you cant flex on your FB page as hard, but basically your neighbor will pay your for your house and investment while you live there for free. just do it in a decent neighborhood so you dont end up having to evict a bunch of crack heads.

[LtGoose]

same hehe

Love this for you

[BustaCapp]

rentcels

..when will they learn?

[Lefticle]

House crew. Bought my primary home for $345k in 2017. Now it’s worth at least $500k. Two of my neighbors (including next door neighbor) just sold their homes for over $600k.

On top of that, I rent a room out to my buddy in my basement and his rent covers my entire mortgage.

This house is one of the best investments I’ve ever made. Made about $215k in less than 4yrs off of it.