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/biz/ - Business & Finance

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9191145 No.9191145 [Reply] [Original]

Can we keep one of these up lads?

Has anyone been looking at buying a house?

>> No.9191189

Ive been looking at zillow alot, wondering where i stand..

I have about 60k saved..
Make about 50..
I also have my dad who is about to retire and bring a check in every month..
And he can sell his house and make 50k hopefully.

Am i stupid to look at a 500k house?
If i did, do i haggle it down to 450?

>> No.9191201

>>9191189
exactly what im trying to figure out.
Add on that I have good credit, and im good with money in general

>> No.9191203

>>9191145
Rent.

Housing prices where I live, (Los Angeles), have surpassed pre meltdown prices and have done so for a year.

Work in real estate. This is not going to last much longer. Interest rates up. People don't want to see to lose rates. Supply down and buyers are priced out. Should start to see some fractures with slowdown in consumer discretionary funds as oil spikes and cost of living goes higher.I think we're due for at least a 20-25% correction in home values if not more.

Saying this as someone who owns more than one home in LA and is prepared to see all my equity evaporate.

One is my primary not planning on selling. ever. One I got so cheap I don't care what the price is because I rent it at a 20 cap.

>> No.9191219

>>9191201
>>9191189
What's your income?

>> No.9191250

>>9191189
don't just look at the cost of the house, look at the taxes, and cost of heating/cooling.

i live in illinois, right outside of chimpcago. a 500k house around these parts would have ~15k a year in property taxes.

>> No.9191252

>>9191219
50k planning on rising

>> No.9191282

>>9191203
So hold out for a few years for prices to drop?

>>9191250
And yes im assuming 8k a year in taxes. I live in CT.

>> No.9191311

>>9191203
Oh and what is the usual discrepancy between listed price and selling price?

>> No.9191331

>>9191282
I would.

I'll put it this way... I honestly believe we're at the height of this bubble. At my peak I had 6 rental properties. I sold 5 of them to get back in after correction.

>> No.9191338

>>9191189
In what time frame are you planning on buying?
I think that sounds a bit out of your price range, and you're kind of putting all of your eggs into this basket. What makes the 500k house so valuable to you?

>> No.9191348

>>9191311
that honestly depends on the seller, their agent, and your agent. i saw some decent looking houses that sold for 70-80% of the list price. i think 90-95% is the typical accepted offer unless the house has been sitting for sale for a really long time.

>> No.9191393

>>9191331
Awesome.

>>9191338
A few years.. and being good with money i can see myself saving pretty well.

I just looked at decent sized houses with in law suites... 450 to 500 seems to be gopd quality range.

>>9191348
Excellent, that's helpful to know

>> No.9191480

>>9191311
Depends on the market. In alot of neighborhoods in LA it's asking price or GTFO. Some more peripheral areas you could pull down a property 10-20% under ask.

If you're looking for a seriously motivated seller, you can go to your county recorders office and get a copy of the NOD, (Notice of default), list and see all the homes that are up for foreclosure. Have your agent or yourself contact the owners and see if you can get a purchase deal in place before the bank takes the home from under them.

>> No.9191561

>>9191480
Smart.

So what would you guys say one should pay on a mortgage monthly?
lets say i'm looking at 450k
What is the minimum you would put down, and what would you try to pay monthly?

>> No.9191590

>>9191189
You would have to budget hard but you could make it work, try bringing in a good friend or family member to rent a room , a 500k house in houston is like 1800-2000/ month just for mortgage

>> No.9191629

Iv talked to a few old rich cucks who buy investment properties then do some fine remodeling, ultimately air b&bing for 800+/night, i always ask them if they think the market will crash they always shake their head no

>> No.9191641

>>9191590
right right, as echoed above,

lets say I bring in my GF and she's making 50k, and my parents retirement is brining in 40k.. and i'm making 60k.
seems pretty doable, if we're putting out 2200 a month on mortgage. maybe 600 a month in taxes..

>> No.9191649

>>9191629
I agree with the real estate guy above though, I think the big problem is that people are going to start being much more poor in general, buying power is gonna drop, house sales will drop.

>> No.9191685

>>9191189
Yes, 500k is out of your price range

For 500k you're going to want 100k for down payment (realistically 120k for unseen repairs) and you will be looking at around 3k monthly in expenses (assuming no HOA). So you would want a take home pay of about 6k after all liabilities are taken care of. It's doable with less money but these general guidelines will keep you in the ballpark so you don't over extend too much

>> No.9191722

>>9191561
Cash is king. Put down as little as you can ONLY IF you have steady income and can support that.

Being over leveraged and buried by debt is a recipe for disaster.

You can put down as little as 0.5% in some states and get 3% down payment assistance from the state. You will get a loan with mortgage insurance which sucks.

Put down 5% and you can get a loan with something called LPMI. Lender pays the insurance for you. Otherwise you have to put down 20%

Do not make the mortgage payment more than 40% of your gross monthly.

>> No.9191861

All this talk of a crashing real estate market is a bit premature. I expect the market to continue to rise steadily at least until the trump administration is out of office. Donald is the first president in a long time with a solid understanding of the housing industry, since that was his career focus. The feds have a lot of tools in their kit to postpone and remediate potential disaster and this combined with the recent recession leaves little doubt in my mind of a continued run. The only issues I can see arising is a liquidity drought as less buyer's and sellers enter the market in the face of rising rates, but this will be positive on price action in the short term

>> No.9191880

>>9191685
>>9191722
interesting.

so 5% down payment of 450k is about 23k..
20% is 90k.

the mortgage interest changes depending on the down payment no?

>> No.9191916

>>9191861
im sorry, there is no evidence that i see that convinces me that trump has any idea of whats going on in the world around him.

if anything the middle class will be making less than ever with the new tax plan which should make house prices go down due to less buying.

>> No.9191937

>>9191880

Yes, and your homeowners insurance will be affected as well. Most mortgages will require insurance even with a 20% payment.

>> No.9191939

>>9191145

>be me in UK
>all peers driving BMWs, Audis, Mercs on PCP credit
>moving into £300k+ 3 bedroom shitbox new build houses made from cardboard with 5% downpayments
>thousands upon thousands in student debt
>all electronic devices on credit

Literally all you should be doing in your 20s is using every piece of money you earn to earn more money in multiple income streams.

Drive a beater car you buy outright
Rent a shitty flat if you HAVE to move out of your parents

DO NOT be tempted by the shiny 0% downpayment JEW

>> No.9191956

>>9191861
Please explain for a brainlet.
It sounded like you were saying prices will keep rising, but then you said price action will be positive in the short term.

Does this mean prices are going.up for the short term, but soon to drop?

Fuck is there a book or something I can read about this stuff? Any time I try googling things about housing markets it feels like I'm reading shilling of both sides.

>> No.9191957

>>9191937
seems you 2 are kind of saying different things though

pay more for less interests
pay less for more disposable income

both seem right

>> No.9192027

>>9191629
>ultimately air b&bing for 800+/nigh
kek fucking what? where is this, in buildings overlooking central park?

>> No.9192060

>>9191916

I'd advise looking more into Trumps real estate dealings then. You don't have to like or support him to see that the man understands real estate. Middle class won't have a significant impact of the market simply because the middle class is such a small percentage of the population.

>> No.9192070

>>9191145

>participating in rent seeking behaviors
>shoo shoo jew

>> No.9192171

>>9191956

Short term in real estate is a long time, in this case I was referring to about 10 years

>>9191957

They can both be right but assuming you're not using the saved money for high returns you will save a lot more money in the long term opting for the low interest rates. Especially with the raises we've seen from the fed, refinancing a high interest loan is not going to be feasible in the future. I'd take advantage of the 30yr fixed rate while it's still at relative lows

>> No.9192184

>>9192060
Trump is absolutely a genius when it comes to real estate but he's not running the show where that matters.

Jerome Powell is doing everything he can to sound hawkish to prop the dollar, (I don't know why he is doing that) and to hit 3% inflation. I think inflation is far greater than 3% currently.

Add to that, if Trump kills the Iran deal then 2 million barrels of oil leave the market per day. Gas prices skyrocket. (This is why he attacked OPEC a few weeks ago IMO to scapegoat blame) The Debt service of general public also skyrocket and we're back into a deep recession and another round of QE.

In any event, the pieces are in place for a downturn. We're about 2 months away from the largest expansion in history. How long do you think they can keep this up? Seriously.

The EVERYTHING bubble is drawing near a cycle end.

>> No.9192280

>>9192184

I don't have nearly the same understanding about the other industries or finnancial factors so for all I know you could be right

I'm just a real estate guy

>> No.9192500

>>9191939
0% has been banned in the UK for years since it turns out giving 250k to Jamal isn't without risks

You can opt to give 20% of your home to the govenment if you are a total fucking retard and need to buy a house without any money but that's your call.

>> No.9192680

>>9191250
I own a house outside of Chicago and I can confirm. I bought mine for 200k and the taxes are nearly 6k a year. It definitely has its pros and cons. I put barely anything down so my mortgage is pretty high but I have 2 friends renting the basement and one of the rooms (3 bedroom split level home) so that covers over half he mortgage each month. The expenses aren’t horrible but they can pile up if you’re not careful. Overall I’d say, for me at least, it’s more enjoyable to pay a bit more and save a bit less every month in exchange for having your own property that you can do whatever the fuck you want on. Lastly, and this goes without saying, try to find a good deal. My house was 230-240 initially, got dropped to 220 before I started looking, and they came down to 200. It was owned by a widow who moved out of state and was just trying to get rid of it quick. Had to do about 10-15k in remodeling to make it look more modern but I could probably get rid of it for 250-260 now if I took my time selling. Which would be nice since I only have about 185 left on the mortgage.

>> No.9193660

>>9191203
This.

A collapse like none of us have experienced is coming within next 4 years. We're officially at the end of this credit cycle and business cycle. Things are going to get bad. Think 40% unemployment and runaway inflation.

Save cash and buy as much discounted property as you can after the collapse.

I warned you guys.

>> No.9193868
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9193868

Poorfag here. I'm looking for a home in the ~$85k range for where I live, that's what I'm pre-approved for. I probably make too little to be getting a home but I don't have much of a choice since my current rental is becoming increasingly difficult to live in. It seems like every cheap house in my area gets bought up after being listed for even just a day.

I would pay rent for somewhere better but the costs come out to being the same as, if not more than just owning a home.

>> No.9194136

>>9191145
I own my home outright, no mortgage.
- Repairs eating my ass alive
- Property taxes keep going up
- Insurance payments suck

I’m ready to sell and rent a small apartment, fuck it.

>> No.9194240

>>9194136

Even with enough cash to outright buy a home it is usually better to get a mortgage. Instead of owning a 500k home outright you could have dumped 400k in a mutual fund and benefit from both

>> No.9194271

Get a condo suite instead.
Extra home security.
Repairs and cleaning done by management.
Energy and space efficiency.
Proximity to city amenities.
Great view out the window.
Detached homes are for boomers.

>> No.9194589

>>9191145
Renting now even if I could afford to buy, for a couple of reasons.
>Will probably move in a few years and the market here is quite slow, i do not want to baghold a house or rent it away.
>I have 4 kids and now that they are young they do not need much room, so i can rent a relatively small apartment and change only when needed , while if buying i'd have to go for a big one, with all the increased costs involved and little benefit for years.
>If I end up moving back near my parents and parents-in-law places they have several properties that we could rent/buy cheap or inherit (I hope they'll live forever but they are all in their late 70s, so it may happen).

>> No.9194959

>>9193660
40% unemployment?! Alex Jones, that you?

>> No.9195297

>>9194271
This is my goal.

>> No.9195721

>>9193660

tfw i fell for this meme 11 years ago :[

>> No.9195979

>>9191145
Rent apartment. Doubt I'll own until I'm retired or close to it. Selling my car this week. I'll just use public transit. Thanks boomers.