Literally none of the experts in this field are saying this.
This housing market is fundamentally different than the collapse in 2008.
OT: Could you afford to buy your house?
- Thread starter 18IsTheMan
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Literally none of the experts in this field are saying this.
This housing market is fundamentally different than the collapse in 2008.
My family has been in the construction industry since the late 70's. It is cyclical, and we've been through them all. Everyone is fat and happy now, but rest assured, there is a correction coming. I personally don't think it will be late 2000's bad, but the market is for overprices for sure, there will be a correction. There will be people that are upside down that have bought in the last couple of years.
On that note, have yall seen an increase in your homeowner's insurance due to the appreciation of your home's value?
I did, I got more than I had asked for just a year earlier. But I do shed a tear now and then lol
Dirtpecker, when do you believe would be the most opportune time to buy? I'm certainly not interested (at my age). Asking for a friend.
There's bound to be a downturn. The severity is the only unknown.
For sure, just changed carriers and rates are up due to replacement costs. Same with auto insurance.
i’m living in my 50th year in my house, so there has been massive appreciation during that time. One of these days I may sell it and move into my lake house on Murray.
The wife and I walked into a 2 story house about 25 years ago and I walked up the stairs looked around and walked back down.i said to myself,I wouldn’t want to do this every day.so that was out.
I would say to most, do the opposite. Walk up those stairs as you get older. Do it often. The activity is good for the joints and it strengthens muscles. Helps maintain better fitness and mobility as we age.
you’re correct about most property under $220k being sad. However you are not right thinking real estate is “grossly” overpriced (when they’re finding willing buyers in days) or that it’ll be worth less in 10 years.
I know a senior couple up north, who bought a 2-story home. He later developed pulmonary fibrosis (lung illness). And then last year threw out his back doing something stupid outside trying to pick up heavy stones. I think he now has to live upstairs. SMH
I just didn’t want to go up and down every day(I figured it would get old)and to think if I tripped and fell down them or one of the kids.
When this market get's back to normal a lot of people will be underwater on their homes...... It's coming, just a matter of time.
We moved to Montana from just outside DC in 2017. I have no doubt if I listed it today at double what we paid for it, the house would sell in days.
Could I afford to make the same move today? That depends on a couple of things, including how you define "afford." I don't ask a loan officer how much mortgage I can afford for the same reason I didn't ask the jewelry store owner what kind of diamond I could afford for my wife's engagement ring. I am more debt-averse than most Americans, so my definition of how much house I can "afford" will be more conservative than most.
Having said that, the house we sold back east in 2017 would, no doubt, sell at a much higher price today. I don't think it would sell for twice what we sold it for in 2017, but we'd probably have a few hundred-thousand more in the war chest if we were looking for a Montana house today, so maybe. But I would still be reluctant to enter the Montana market at this time. They have a real inventory problem at this time, so houses are going under contract immediately, often sight-unseen, by an out-of-state buyer. That kind of market is more akin to a frenzy than rational and deliberate thought and I doubt I'd want any part of it. Those buyers may end up fine, but it's more risk than I would likely want to take on.
Could I afford to make the same move today? That depends on a couple of things, including how you define "afford." I don't ask a loan officer how much mortgage I can afford for the same reason I didn't ask the jewelry store owner what kind of diamond I could afford for my wife's engagement ring. I am more debt-averse than most Americans, so my definition of how much house I can "afford" will be more conservative than most.
Having said that, the house we sold back east in 2017 would, no doubt, sell at a much higher price today. I don't think it would sell for twice what we sold it for in 2017, but we'd probably have a few hundred-thousand more in the war chest if we were looking for a Montana house today, so maybe. But I would still be reluctant to enter the Montana market at this time. They have a real inventory problem at this time, so houses are going under contract immediately, often sight-unseen, by an out-of-state buyer. That kind of market is more akin to a frenzy than rational and deliberate thought and I doubt I'd want any part of it. Those buyers may end up fine, but it's more risk than I would likely want to take on.
No. Bought our house in 2017. It’s now into the 7 figure neighborhood and we get phone calls to sell every week. And it ain’t the house, it’s the dirt. It’s absolutely insane.
Only using the term master bedroom stepped on my toes. J/K.
Working toward that same philosophy myself. I used to be an executive in a large corporation, did very, very well. Owned 3 houses, traveled all the time, country clubs, the whole deal.
I left my job and bought a business, then 6 weeks later Covid hit. We survived because we had those assets to liquidate but just barely. That experience totally changed how I view where I want my financial life to end up. Way simpler lifestyle and expectations now.
Questions: your handle tells me that you live at the Isle Of Palms. Am I right? If so, I know that beach condos there are expensive. Do you know if there are any condos on the drawing boards to be built there?
Sorry. I meant to ask YOU the following questions....not ask myself. If you live at the Isle of Palms, do you know if there are any condos on the drawing board to be built there in the future?
Newly built? No, not currently. Before buying my current home, I had a condo at the Sea Cabin. 1 bedroom but right on the beach. I paid $230k for it in 2015. Sold it to buy my house. Same unit I owned sold last fall for $575k.
Moral of the story, condo game down here is ludicrous.
Yeah, what I thought. A friend of mine (a neighbor) badly wants a beach condo. He goes to the beach once a year and, then he has the beach itch scratched for a year. And now Jim (the friend) wants to spend thousands for a beach condo that he will use once a year, maybe twice. I told him to wait for real estate to crash.
Well I can say this. If your friend has some capital to invest that gets the mortgage payment right, condos at Sea Cabins get $2,0o0-$2,500 per week in rentals. The math still works assuming the mortgage payment is low enough.
Agreed. The market could be (probably is) in an artificial rise, which could mean that in a couple of years it dips and isn’t worth as much as today, but real estate (like the stock market) always moves up over time. In 10 years things will cost more than today. Real estate will always move up in value over time and there’s no bad financial situation in the world that has ever stopped that.
Sorry took so long, I don't get on over the weekend.
I'll be perfectly honest, I don't know. It may be a year from now, two? Sometime in the next few years there will be a downturn IMHO (history backs up that fact), and that's when it'll be time to back up the truck. I'm a bit of a contrarian, so I follow a quote attributed to several people..."buy when there's blood in the streets, even if that blood is your own".
That's the very reason we don't sell ours. We would need to buy an equally expensive house. We had a contractor whose wife is a realtor look at our house to do some work. He told us we should sell it right away, the market is red hot. But where would we go? Well, he wanted to build us a new house. She sells houses and he builds them a new one. Nah.
Maybe later when my daughter is out of college, we could move out and rent someplace near the beach. Or we just might sit on this gold mine of a house we have. LOL.
Maybe later when my daughter is out of college, we could move out and rent someplace near the beach. Or we just might sit on this gold mine of a house we have. LOL.
With prices high and interest rates up, it's not the optimal time to buy. The prices are the thing right now. If I want to move badly enough, I don't need a mortgage.
My wife and i had the same mentality. Watched a lot of friends be in that house poor category. When we bought our first house we based it off one of our salaries. And when we sold last year for 3x what we paid for it we did the same again. Helped us weather the covid storm the last 2 years when she had to go back to being a stay at home parent.
To the young crowd: if you can afford it, pay off your mortgage. When you do so, the feeling of liberation it will give you..... well, there are no words for it.
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