Any idea why he wants to sell and then rent from you?
Seems like a bizarre value proposition for him
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He wants the money. Itâs actually not a bad move. Hes got no one to leave his assets too. He likes to do crypto investing, gamble, collect metals.
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Tunnel time!
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Naw. Put in a Skywayâ˘
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Yard-a-pult
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This feels like advice from before the housing market boom of the mid-2010s to today.
My area is MCOL, kind of a desirable town in the middle of a LCOL area. Looking on Realtor.com there is a single trailer home for $99k that was built in 1964 and is placed in a shitty area on the far outskirts of anything. Above that the next cheapest are $115k then $170k for trailer homes.
The lowest non-trailer home is $253,000 for a small 2-bed 1-bath on 0.08 acres. And those are the very lowest prices, who knows whatâs wrong with the houses that are (a trailer) 60 or 90 years old. Of course starter homes tend to have issues, but Iâm saying that my area isnât that pricey and $200k is literally incapable of purchasing a non-trailer home here.
My home here was $270k a decade ago and is $480k now. Itâs changed.
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How about this:
Why did it go up +10% a year for three years during COVID? The obvious answer seems to be that the shift to WFH increased the intrinsic value of 1 sf of home.
People drive less as a result, so there is a savings offset in their transportation costs, or at least should be.
Was there really a boom? Most of this was rate driven coming off a low point in 2010. The real boom was in 2007-2008 when everyone bought a house on crap credit and that actually blew up on everyone.
Now, its expensive because rates are higher and people value 1sf of home more than they did prior to COVID. Rates will certainly change, but there might be a permanent wfh effect that COVID accelerated and enabled.
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With the funding cuts to colleges, will it still be operating in a year or two?
Well - the plural of anecdote isnât data, but I was pushing back on the idea that sub-$200k starter homes are the norm nowadays. I live perhaps in lower-MCOL and only a few decades-old trailer homes existed for that price - and trailer homes arenât known for being stores of wealth conducive to purchasing a future home.
(Admittedly while Iâm thinking further, real estate in my area probably is pricier than the general COL. Nonetheless.)
Oh, I donât doubt that there are lots of urban/suburban areas where the âstarting costsâ are closer to 1/2 million than under $200k. But I would also point out that it seems that there is a focus on finding something in the âdesirableâ parts of town as the basis of consideration and ignoring the greater âaffordabilityâ of the âundesirableâ parts.
But there are lots and lots of rural and sub-Poâ areas where the best house in town is under $500k. And a lot of resort towns in CO (low end of the housing market is the $500k) have their workers living in bedroom communities (generally up to 50 miles away; 1 to 1.5 hour commute depending on weather) where the housing market is in the $100k range.
âAffordabilityâ in the first paragraph is in the sense that I acknowledge that anything purchased in these areas have an explicit need for improvements that will also cost; but those âaddedâ costs can be spread out and worked on over time rather than being lumped up front for a more âdesirableâ location/starting home.
Case in point: my dad bought a home in Denver early on and spent time fixing it up. Purchased if for something like $4k in the early 1970âs and sold it for $50k (IIRC) about 3 years later. It provided a nice down payment for the next home (purchased for around $150k IIRC) that was then sold for around $350k when he retired around 20 years later.
But it appears that very, very fewâoutside of the Poââreally wants to take this sort of approach now-a-days.
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Should be fine unless they bring in Bernie sanderâs wife
Actually the low-end condos are now going for $199,000 - $400,000. Some older landos in the upper $500s and the newer high end condos are $800 - $1.4
Houses start at $280k for bad condition in a bad location.
Thatâs in a desirable school district. Multiply by 70% to get the same homes in one of the surrounding, lower rated, school districts.
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The kids have grown soft
I know a lot of workers in bigger cities commute 1.5 hours each way. However, if that city is growing and thereâs no public transportation available, that could grow to 2-2.5 hours within a few years and become untenable. Hasnât been such a problem the last few years but now that companies are implementing RTO could be interesting.
US population is projected to grow another 10% until peaking around 2080. That is a much slower rate of growth compared to 1970-2010, where it hovered around 1.0%
Mortgage rates are trending up again.
Monthly payments are very high right now (vs median salary) unless you put down a big down payment.
Higher long-term inflation expectations in the US is driving this now.
Weâre going to find out what kind of an investment home ownership has been in the neighborhood.
Neighborâs house is up for sale. This is the one I had issues with over her sump pump drain dumping into our yard, she doesnât mow, she doesnât take care of her house, etc. She bought in 2019, when mortgage rates were 4%, and paid $319,000. Yes, itâs a larger house than ours - listed as 5BR, 3.5BA, 3 car garage, slightly larger lot, but I thought she overpaid.
Sheâs listing it as a 4BR, 4BA with a long list of alleged improvements - which, a few of these, ⌠if it had happened, Iâm pretty sure I and everyone else in the neighborhood would know about it - for $499,000 where interest rates are 6.5%.
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Thatâs in the ballpark of what I am seeing in my neighborhood. We just had one sell about 12% higher than they paid a year ago (based on list priceâŚit sold quickly both times). I am not seeing any big upgrades, but maybe some hardwood flooringâŚI recall some workers there after the current owners moved in cutting things out front for a few days.
I should be about 2x what I paid in 2010, but that includes 20-25% from various improvements that are mostly functional rather than purely aesthetic.
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You guys get 5 BR houses for 500k?? Damn.
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Gotta live where thereâs more trees, less city.
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