I remember more than a few realtors, driving a new Benz every year, nice clothes, big overpriced house, then the bust. Spend it while you got it. Saw them a few years later, driving Corollas and Civics working at low paying jobs because they had no real skills or education. I've pretty much got my wish, regarding my a-hole landlord. He bought the place, sat empty for 10 months (2500+/month carrying), renting at a neg cash flow and was hoping appreciation would make up for neg CF. Well, the property is now worth just slightly more than the purchase price and I have another year on my lease. I'm hoping it drops another 15-20% over the next year. Life is good!!!!
Boom times are back in New Orleans. And there's a very concrete reason for the upswing. 80% of the housing was destroyed by Katrina. Rents have doubled but property prices are only up about 20%. There is such a demand for housing that it will take years for the supply to come back on the market. It is still a very expensive place to own a home as taxes and insurance costs almost 3% annually. Traveler
I have lived here in Carlsbad (San Diego) for the last 8 years and I am moving this weekend back to Atlanta where I lived before. The real estate market there is interesting to say the least. Re sell's have always been tough in Atlanta unless you bought close in. By that I mean at or inside "285". Atlanta is very spread out and there are no natural boundaries to growth. Land is abundant and cheap and owned by many different people so that keeps the price for land competitve. What makes the resell's tough for those houses not close in is there is always tons of inventory of new houses to buy. Why buy a "used" house when you can go another exit up or a mile or two down the road and get a new house from a big builder and get incentives and special financing? Check this story out. I imagine it is wide spread in the area. I am going to rent the 4 year old Townhome in Sandy Springs which is considered close in due to all the offices and businesses in the area. It is 3300 square feet and I am paying $2850 per month. That was more then I wanted to pay but it is in a good school district and only 2 miles from the school and I will be 1.5 miles from an office I am going to rent. This guy I am renting from bought the house in 2002 for $404K. He had it listed for $619k (not sure why the odd numbers). Recently he dropped the price to $589k. This guy expects to make $200k on a house he has owned for only 4 years. His problem is that he closed on another house about a year ago up in Alpharetta. I guess he was thinking that he was going to be able to sell his Townhome at a big profit before he closed. The same builder that built his Townhome is building new ones across the street and is now asking for $450k for the same basic home. This is guy is 34 years old and works in the mortage industry. Another story is my old home I had bought in 1995 for $295k recently closed for $614k. These house had 3300 sq feet on top of a full basement. I had finished some of the basement and it had about 4200 sq feet of living area. There is a house across the street with about 2800 sq feet with no basement on the block for $484K. So here you have a subdivision where one house just closed for $614k and across the street a comparable home minus some sq footage going for a lot less. The cheaper house has been on the market for 8 months. It will be fun to watch how all this shakes out. John
=============== I am usually getting both sides of story; but will speculate, since her liscense ' was 'pulled '' Probably was not a key stroke error; but simple marketing that the word quote ''new'' unquote can be powerful & effective. Rising rates can make it more interesting; especially if adjustable. Prefer fixed , if mortgaged.
Rental prices are accelerating and there's very little rental inventory in many buildlings in nyc. If some dude who recently invested in a condo can no longer afford his ARM, he doesn't have to default on mortgage. he can rent it out and have renter pay his mortgage. i had a 1 bdrm rental across the stock exchange about 3 years ago, paid $1800/month for it. Same unit is now renting for $3200. Building has 500 units. No vacancy.
Dude. That $1800/month was not too long after 9-11, when nobody wanted to live down by battery park city and the WTC site. Not a realistic comparison. I'm sure land near Chernobyl is cheap too, but I'm not sure I would want to buy it.
I know someone very well that did this...total time the house was on the market if you include the reset was 18+ months finally sold though!
Why would anyone pay 3200 a month for a 1 bdrm, when 3200 can support a mortgage of around 500k; why don't these morons just buy something and own it instead of enriching their landlords?
Probably because there is nothing to buy for 500k in that area. In that area one might have to spend 750k (or much more) for a real dump. The rental for 3200 would be a real nice place in comparision. So the payments on a place to buy would be something like 100% more than renting. Also, if one paid 750k at this stage in the game, what happens if in two years it is worth 550k? Down payment gone, ability to sell gone (unless you come to closing with a big check), etc. And it does look like things are headed that way. Buyers have finally figured this out, and they are waiting on the sidelines. Every asset class has it's day, the entry time for real estate would have been about 5-10 years ago. An entry now is extremely risky.
Inventory continues to climb... how long can this keep going until something (price) gives http://www.benengebreth.org/housingtracker/location/Florida/Miami/ like building water pressure behind an ever weakening damm