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Buying a home

MeCasa16

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We bought a house in Seattle in 2016 for 310k. The tax assessed value was 389k. In 2019 we sold it for 609k. The tax assessed value for 2020 was 405k.
 

Universal Elements

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Depends where you’re buying. If you’re buying in Nevada, Idaho, Arizona or Texas I don’t think the prices are going to come down Too much if the houses are below $400k. I sure see a lot of U-Haul’s going down to 10, 15 and the 40. Towing cars, boats and everything else. Those families are leaving the golden state and had equity in their homes.
 
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Ladsm

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Rates are all time lows, people are nervous about the economy so they are taking good offers quick to get the house off the market. We just found a great home in Arizona, had the offer written before we walked the house and closed the deal same day. Go shopping and if you find your dream house buy it, Just dont settle.
 

DrunkenSailor

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If you can afford to wait, wait. But it won't be months. The market will crash and when it does lending will get tight and it will be tough to qualify. Housing prices will come down but it will take time for the market to find it's floor.

The last crash started in 2007. The media caught on in 2008. The housing market didn't hit bottom until 2010-2012 depending on the area and the lending markets were tight until end of 2011 beginning of 2012.
 

LargeOrangeFont

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If you can afford to wait, wait. But it won't be months. The market will crash and when it does lending will get tight and it will be tough to qualify. Housing prices will come down but it will take time for the market to find it's floor.

The last crash started in 2007. The media caught on in 2008. The housing market didn't hit bottom until 2010-2012 depending on the area and the lending markets were tight until end of 2011 beginning of 2012.

There won’t be mass forclosures in residential housing again. If anything has shown us that, COVID has. The .gov will just shore up the banks in the back end.

People need somewhere to live and if anyone has bought from 2008-2018 and have not pulled all the money out, they are likely paying less in mortgage than they would be renting. There is no incentive for them to walk away.
 

Duramax

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If you are renting you are throwing money away every month. Rent will never get cheaper. Interest rates have never been lower. What exactly are you waiting for? If in another year for prices to drop 10% after after going up another 6% from today? You just lost money in the rent you paid for the year waiting for prices to drop 4%.
No, we are staying between my mother in laws and my mothers home at the moment (sold our home in July). This has been working because, A. I have been able to fix everything my mother has been bugging me to fix for 5 yrs. B. I work from 7-6, so when I get home, I eat, play with my daughter and go to bed. C. Our parents are spending a ton of time with my daughter and it has been great, allowing my wife to take some classes.

But, I am about done with chores, the lake season is about over, and we paid off a few things that had been hanging out there. If we can wait 6 months for a decent drop, I will wait, I don't mid paying reasonable rent....so, I guess I'm just getting opinions.
 

LargeOrangeFont

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No, we are staying between my mother in laws and my mothers home at the moment (sold our home in July). This has been working because, A. I have been able to fix everything my mother has been bugging me to fix for 5 yrs. B. I work from 7-6, so when I get home, I eat, play with my daughter and go to bed. C. Our parents are spending a ton of time with my daughter and it has been great, allowing my wife to take some classes.

But, I am about done with chores, the lake season is about over, and we paid off a few things that had been hanging out there. If we can wait 6 months for a decent drop, I will wait, I don't mid paying reasonable rent....so, I guess I'm just getting opinions.

Thats great!

Then absolutely wait, or when you can’t stand it anymore, buy something :)

Understand it is a gamble. You could be waiting years. If the market turns TODAY, it will be at least 2 years before it finds a bottom. If the market turns 2 years from now, the bottom might be right where prices are TODAY.

The only people that really got screwed in the modern era of this country were people that bought from 05-06. And most of them we’re above water or broke even by 2016.
 

shintoooo

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Another reason housing prices are going up is because more people are working from home and are upgrading to a bigger house where they can have a home office. Also, a lot of people from the east coast where it's really crowded like New York are moving to areas like Florida all the way to the west coast to get away from the areas where Covid19 hit the hardest.

Commercial property will be hit the hardest in my opinion. I have two years left on my lease and I don't think I'm going to renew when the time comes. My oldest will be moving out in the next couple of months and I'll probably just use his room as an office. It all depends on if my wife and kids will still be doing homeschooling at that point however. Lots of variables.
 

Ziggy

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I have a client that just sold his home in Oceanside that is in the process of moving to Texas, DFW area. His plan was to downsize as it's just him and one 18 year old son. His home in Oceanside was 3200sf home on a decent sized lot and great floor plan. When I spoke to him last night I asked about his downsized new home, he stated it didn't work out....he bought a 6000SF, 6 bedroom home with a huge media room for $500k!
I've heard that story more than once. 6000sqft for 2 people?? That'd be too much privacy, even for me😁
 

BHC Vic

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I have a client that just sold his home in Oceanside that is in the process of moving to Texas, DFW area. His plan was to downsize as it's just him and one 18 year old son. His home in Oceanside was 3200sf home on a decent sized lot and great floor plan. When I spoke to him last night I asked about his downsized new home, he stated it didn't work out....he bought a 6000SF, 6 bedroom home with a huge media room for $500k!
My mother in law just did the same. She sold her home in diamond bar to downsize in Idaho. She bought a 6 bedroom 5 bath house in a couple acres with a horse in Idaho. Weird
 

Groper

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My mother in law just did the same. She sold her home in diamond bar to downsize in Idaho. She bought a 6 bedroom 5 bath house in a couple acres with a horse in Idaho. Weird
Haha yep, but does anyone ever think about heating, cooling and CLEANING a 6k sqft house o_O

OP: If this is your first or primary home and the numbers work then go for it, get settled in and then start saving for a income property to pick-up when the timing is right for you and your financial situation.
 

BHC Vic

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Haha yep, but does anyone ever think about heating, cooling and CLEANING a 6k sqft house o_O

OP: If this is your first or primary home and the numbers work then go for it, get settled in and then start saving for a income property to pick-up when the timing is right for you and your financial situation.
My wife was literally just saying that. She said I wonder if my mom knew they average 40+ inches of snow and what it cost to heat that place. It’s Shelley Idaho. I don’t know much about it other then it looks really nice. But yea it’s her and her husband with a giant house and a bunch of land.
 

EBT531

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In N. Phx the prices are ridiculous. People are allowing 1 day for showings and then review all offers. The last couple in the $400k range went 20-30k over asking and they waved the appraisal requirement. Even houses in the $600-650k range that were $450k 3yrs ago are selling in under a week.
 

Havasu blue label

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People are still on forbearance when it’s over in 1month shit will hit the bottom. If it’s your primary home and you are currently renting the rates are great just don’t over pay layoffs are coming
 

DrunkenSailor

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No, we are staying between my mother in laws and my mothers home at the moment (sold our home in July). This has been working because, A. I have been able to fix everything my mother has been bugging me to fix for 5 yrs. B. I work from 7-6, so when I get home, I eat, play with my daughter and go to bed. C. Our parents are spending a ton of time with my daughter and it has been great, allowing my wife to take some classes.

But, I am about done with chores, the lake season is about over, and we paid off a few things that had been hanging out there. If we can wait 6 months for a decent drop, I will wait, I don't mid paying reasonable rent....so, I guess I'm just getting opinions.

With your situation I would buy. The sanity is worth every penny spent.
 

Cdog

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This is the reason for the thread. Sanity, or what is left, is thin.

I appreciate everyone in this thread. Thank you!


Where are you looking? I may have a pre list property in Glendale available in the next 30 days. 350k price range.
 

pronstar

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People are still on forbearance when it’s over in 1month shit will hit the bottom. If it’s your primary home and you are currently renting the rates are great just don’t over pay layoffs are coming

About 7% of all mortgages are in some form of forbearance, totaling around 4 million.

IMHO there’s zero chance we don’t get another bailout-type dealio to provide relief.

It’s just too many registered voters for either party to allow to lose their homes.


Sent from my iPhone using Tapatalk Pro
 

Duramax

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Where are you looking? I may have a pre list property in Glendale available in the next 30 days. 350k price range.
We are in Tucson. My company has plenty of stores in Phoenix, but I am pretty happy with the stores I run here at the moment. We are 350k-450k range.

Thank you though!
 

badgas

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If you have a good down payment and If you can afford the payment the same way you can afford rent then go for it. Just like others said DO NOT strip any equity out of it and keep paying it down. You will be amazed how fast time flies. Don't settle for the norm by starting over on 30 year loans every 5-10 years. Make a plan to pay it off in 15 or less and stick to it.
 

HNL2LHC

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If you have a good down payment and If you can afford the payment the same way you can afford rent then go for it. Just like others said DO NOT strip any equity out of it and keep paying it down. You will be amazed how fast time flies. Don't settle for the norm by starting over on 30 year loans every 5-10 years. Make a plan to pay it off in 15 or less and stick to it.

This!!!! A few hundred more a month takes years off the length of mortgage. Keep in mind that you should hav e6 months of cash on hand to cover any financial concerns first then start paying it off. This also as you stash cash into your retirement fund. Then you should have enough to tap into at any time in the years to come.

You work hard for your money. Be sure that you make your money work for you in return!!! It blows my mind how people piss away money then pay for it in their retirement years.
 

BHC Vic

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What about. Vacation home in havasu? Wait or go?
I’m waiting to buy another house in bhc. Prices are way too high. I see what houses are going for and what we paid. We got really lucky.
 

Blackmagic94

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My father is a realtor/mortgage broker in tucson.

449-3313. Ask for George
 

just_floatin

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JP Morgan quoted me 2.74 on a 30 year loan with 20% down today. Payment is $1125 including taxes. My build will not be complete until February 2021 so my plan is to lock this rate in December. That said, I have not decided if I am listing my current home after closing given the market is still trending up in the metro Phoenix. I prefer to wait until the top of the market is reached, sell and pay off the new mortgage with a few extra K available for another new build investment. If the market tanks, renting is still be favorable option over selling. My .02 cents - Real Estate is still a solid investment in the state of Arizona. At least that is my experience over the past 35 years. Good Luck.
 

OldSchoolBoats

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Builder confidence continues to shatter records and supply is razor thin. Couple that with interest rates that should remain at sub 3%, into 2022, why wouldn't you buy? Housing isn't going anywhere. A lot of people have been waiting for "the bubble" to burst since 2017, but here we are. Fix your biggest expense, sit back and gain equity.


Good article today on builder confidence -
 

Havasu blue label

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Your Havasu question over priced wait till March when the snow birds leave and the owners have to start paying . Just got out bid full cash price 210 Asis 10 day close sold in 1 hour 260 house is worth 190 on the high side people are just paying stupid money . In Havasu tear down
 

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Where does stock market and housing/investment real estate market go if senate goes to Dems in January? Incoming president has already discussed raising capital gains to 39%. This will be for higher earners, but there are a lot of higher earners in the markets. Who is going to play in the stock market or home market paying that?
 

OldSchoolBoats

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Your Havasu question over priced wait till March when the snow birds leave and the owners have to start paying . Just got out bid full cash price 210 Asis 10 day close sold in 1 hour 260 house is worth 190 on the high side people are just paying stupid money . In Havasu tear down

Short term summer rentals start to take shape after the birds leave and the ROI is much better, that is why we have ours available year around now, no snowbirds.
Just locked down a 14 day rental from a couple up in Washington. That paid my mortgage and now I have 2 weeks we can use it or lock down another couple short terms and we are in the money.
 

OldSchoolBoats

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Where does stock market and housing/investment real estate market go if senate goes to Dems in January? Incoming president has already discussed raising capital gains to 39%. This will be for higher earners, but there are a lot of higher earners in the markets. Who is going to play in the stock market or home market paying that?

Honestly, if there was ANY sort of smidgeon of a chance that the Senate majority would be lost, then it would have already been priced into the bond market and yields would be much much higher than they are right now. It won't happen.
 

2Driver

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The guy we bought our river house from paid $900k for it. We waited and bought for $400k.

Housing in certain states has always been cyclical like stocks and the economy. Over time, enough of it, you do ok but its the short 10 year cycles where you can lose your ass buying at the wrong time. unfortunately, its usually the end of the up cycle where many people think its finally safe.
 

BajaT

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Honestly, if there was ANY sort of smidgeon of a chance that the Senate majority would be lost, then it would have already been priced into the bond market and yields would be much much higher than they are right now. It won't happen.

This is 2020! 🙃
 

RCDave

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The guy we bought our river house from paid $900k for it. We waited and bought for $400k.

Housing in certain states has always been cyclical like stocks and the economy. Over time, enough of it, you do ok but its the short 10 year cycles where you can lose your ass buying at the wrong time. unfortunately, its usually the end of the up cycle where many people think its finally safe.

B I N G O
 

Flying_Lavey

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When did you buy?
I havent bought again in AZ. I have to repair my credit and wait a few years as right after we bought our home in CA we had quiet a few things that all piled up and caused us to fall behind and fuck up my credit. I have been watching so intently in Tucson because I should be able to be in a good position to buy within the next year or 2 so I want to know what is going on in my desired market when the opportunity arises.
 

Flying_Lavey

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1.Crazy to even think about right now.
2.Wait 3 months
3.Wait 6 months

What is everyone’s take? This is in AZ, Tucson to be exact.

I think we would be crazy, I just want the groups opinion.
What area are you looking at in Tucson also? Some areas appear to not have been affected much by the increases while as others (like Vail in particular) have jumped substantially.
 

ParkerMagic

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Your Havasu question over priced wait till March when the snow birds leave and the owners have to start paying . Just got out bid full cash price 210 Asis 10 day close sold in 1 hour 260 house is worth 190 on the high side people are just paying stupid money . In Havasu tear down

Are you in touch with the Havasu market? People that are able to work remotely are moving there like crazy. There is limited inventory and anything under 600k w pool/rv garage is sold in hours.
 

Duramax

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What area are you looking at in Tucson also? Some areas appear to not have been affected much by the increases while as others (like Vail in particular) have jumped substantially.
We have been everywhere from the Foothills to the 49ers. The house we sold was in Dove Mountain.
 

Your ad here

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No, we are staying between my mother in laws and my mothers home at the moment (sold our home in July). This has been working because, A. I have been able to fix everything my mother has been bugging me to fix for 5 yrs. B. I work from 7-6, so when I get home, I eat, play with my daughter and go to bed. C. Our parents are spending a ton of time with my daughter and it has been great, allowing my wife to take some classes.

But, I am about done with chores, the lake season is about over, and we paid off a few things that had been hanging out there. If we can wait 6 months for a decent drop, I will wait, I don't mid paying reasonable rent....so, I guess I'm just getting opinions.
Are you waiting for prices to drop on a house that you want or a house that you need? Going back to my earlier post. I would by a house now that meets your current needs and not your projected future wants. If you find a better place in 6 months, pursue it. More than likely you'll break even on the current house or make some money. In other words, lived there for free. 6 months rent would cost $10K+.
 

HNL2LHC

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Short term summer rentals start to take shape after the birds leave and the ROI is much better, that is why we have ours available year around now, no snowbirds.
Just locked down a 14 day rental from a couple up in Washington. That paid my mortgage and now I have 2 weeks we can use it or lock down another couple short terms and we are in the money.


Sorry to side track here. How do you handle the reservations and all other aspects of the short term rentals? We have only done long term over the years. Next year we will take the Havasu house off long term and thinking about short term. Other friends in Parker have a company. Have not looked in Havasu but would like to know if there is one.

Thanks!!!
 

OldSchoolBoats

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Sorry to side track here. How do you handle the reservations and all other aspects of the short term rentals? We have only done long term over the years. Next year we will take the Havasu house off long term and thinking about short term. Other friends in Parker have a company. Have not looked in Havasu but would like to know if there is one.

Thanks!!!

I personally manage mine and I think it is pretty easy. Finding a few good cleaning crews is important so you can get them in last minute if need be. There are companies like Destination Havasu and Evolve that will do everything for you, but they charge 10% - 20% off each booking. Shoot me a call and would be happy to go over my system in more detail. 661-993-9192
 

hallett21

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No idea on the right answer.

Wife I and bought the crappy house in the nicest area we could.

Mortgage can be covered by one of our incomes if one of us got hurt/sick.

We wanted a home of our own and we’ve “locked in” the rent.

The goal moving forward is to find a big lot and build a house that we can raise kids in. All while renting our current house lol. It’s a swing for the fence plan but hey you gotta set goals.


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HNL2LHC

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I personally manage mine and I think it is pretty easy. Finding a few good cleaning crews is important so you can get them in last minute if need be. There are companies like Destination Havasu and Evolve that will do everything for you, but they charge 10% - 20% off each booking. Shoot me a call and would be happy to go over my system in more detail. 661-993-9192

Thanks for the willingness to have a conversation. We are a bit out on the process. I might reach out out to you at a later date.

Tim
 

Flying_Lavey

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We have been everywhere from the Foothills to the 49ers. The house we sold was in Dove Mountain.
Nice.. When we can buy, Id like to be in the Vail or Tanque Verde school districts ideally. Good schools and nice areas.
 
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