Home Buying & Real Estate Thread

[sneakerreaper]

Right now we've had 7 years of economic growth and the average growth cycle is around 7 years followed by 11 months of recession. So we are at the peak of the market right now. I don't think we will see a market crash but a market correction is definitely in order.

We are in a rental bubble right now. Rental costs are astronomical. The number of renters spending more than 50% of income on housing is at a record high. The number of renters spending more than 30% of income on housing is also at a record high.

So if a market correction does happen, those of us that purchase investment properties need to plan accordingly. Don't want to buy at the top of the cycle and not be able to bring in the rents to cover minimum expenses.

Not saying it is imminent but that is where we are heading in my opinion.

 

[townbidness]

Im hoping man i got 50gs in my savings waiting for this [emoji]128528[/emoji].

 

[stork]

Im hoping man i got 50gs in my savings waiting for this [emoji]128528[/emoji].

where do you live where you cant buy with 50K dp

 

[townbidness]

where do you live where you cant buy with 50K dp

Bay area. Credit is A1 but im barely 1 year into my new field of work with the city of berkeley.

 

[eugenile gts]

$50K is 20% down for 250K home.

take that to a lot of other cities/states and you got yourself a nice 3/2 or 4/3 single fam home newer than 1990 built heck some even brand spanking new.

in the bay area, what does $250K home look like? nothing

just curious for my fellow bay area brethren.. what kind of home are you trying to achieve? are you just trying to just get the bare minimum whatever is the cheapest just to stay in the bay area? meaning a beat up fixer upper single fam home with a front and back yard robably less than 1000 sq living space built in the 60s that prob cost no less than $500K? or a newer condo/townhome but be all in a crowded location.

OR are you aiming for the nice new/newish homes like this

where we all know anywhere down the 101 from santa rosa to gilroy for a home like that is near a million. and even if you can squeeze being able to afford such a mortgage, the mortgage would be nearly $4K not to mention property tax on that, home insurance, and PMI if you dont have the 20% ($200,000) ?

and i know many who are waiting.. for the so called bubble to pop again. who DO want the nice single detached newer homes above pictured. they somewhat feel that when the bubble will pop, those 800-1mil homes will drop to an affordable $300-400K? some i feel are being very optimistic about that. when it does drop, i really dont think it will drop significantly. those current nice homes wont drop much more i think. it may go down to $700-800, from 900-1mil, but can most afford that still? i know i cant lol. just curious what my fellow bay area heads are looking at.

 

[capital sb]

Bay area. Credit is A1 but im barely 1 year into my new field of work with the city of berkeley.

I'm telling you that doesn't really matter, I was only 6 months into my field and was approved. I'm not sure if they counted my internship experience but full time wise I was only 6 months in.

GTS I agree with everything you said.

 

[townbidness]

I dont think theres any homes for 250k. Only homes ive seen for that prices are all the way out in stockton.

 

[ekrev98]

Bay area. Credit is A1 but im barely 1 year into my new field of work with the city of berkeley.

There's a good chance you can qualify for a loan. I was able to do a loan for a friend who was working for 2-3 months with his company and was going to school before that. If you are interested, PM me.

 

[monstar]

I dont think theres any homes for 250k. Only homes ive seen for that prices are all the way out in stockton.

That is 100% correct sir. No one is buying a home or studio for 250 out here. Yes he can qualify but his payments still gon end up being 3k plus a month. If you see anything below 400k that is nice that is a rarity. 400k gon get you and old house in a not so good area

 

[mynameaintg]

400K would be nice in Atlanta.

 

[edshoecator]

400K would be nice in Atlanta.

prices are that high there?

I thought new builds were hitting 200-250k?

Or is that in the boonies?

 

[mynameaintg]

prices are that high there?

I thought new builds were hitting 200-250k?

Or is that in the boonies?

prices arent that high. i was just saying 400K in Atlanta would set you RIGHT. in the boonies, you could get a great house on some land, in the city it would still get you a great place in a great area.

 

[crcballer55]

Looks like we might be in for some big volatility in the mortgage market due to the Brexit vote yesterday. Should increase affordability and make refinancing for current owners more attractive. Almost makes me with I had waited a couple extra months to refi. Oh well... i'll try again in a few more months if this keeps up.

 

[HankHill]

Looks like we might be in for some big volatility in the mortgage market due to the Brexit vote yesterday. Should increase affordability and make refinancing for current owners more attractive. Almost makes me with I had waited a couple extra months to refi. Oh well... i'll try again in a few more months if this keeps up.

Affordability as in interest rates? Or sellers coming down on prices?

 

[dam itz lou]

Affordability as in interest rates? Or sellers coming down on prices?

Interest rates

 

[dam itz lou]

We started looking in south queens. the crap you get for 3 quarters of a million dollars. :x

 

[dam itz lou]

We called about a house we liked, the sellers agent told us the house is under contract, the buyers are waiting to get their mortgage. She also said to check with her on Friday. Does that even make sense ?

 

[ekrev98]

We called about a house we liked, the sellers agent told us the house is under contract, the buyers are waiting to get their mortgage. She also said to check with her on Friday. Does that even make sense ?

If anything, if you really like the house you should put in an offer anyways for a back-up offer in case those buyers back out.

 

[dam itz lou]

If anything, if you really like the house you should put in an offer anyways for a back-up offer in case those buyers back out.

We wanted to go see it. Is that even possible though ? How can you accept an offer when the buyers didn't even apply for a mortgage ? I'd think 99% agents wouldn't take them seriously. Its been up for 3 months.

 

[townbidness]

We wanted to go see it. Is that even possible though ? How can you accept an offer when the buyers didn't even apply for a mortgage ?

Maybe they were renting the property before and are trying to buy.

 

[ekrev98]

We wanted to go see it. Is that even possible though ? How can you accept an offer when the buyers didn't even apply for a mortgage ? I'd think 99% agents wouldn't take them seriously. Its been up for 3 months.

You can get into contract w/o being pre-approved for a mortgage. But that's up to the discretion of the seller/buyer and the agents. For myself, when I list a property I ask for a pre-approval letter and proof of funds and ask the buying agent questions to make sure they are qualified before/during an offer is submitted.

 

[crcballer55]

 

If anything, if you really like the house you should put in an offer anyways for a back-up offer in case those buyers back out.

We wanted to go see it. Is that even possible though ? How can you accept an offer when the buyers didn't even apply for a mortgage ? I'd think 99% agents wouldn't take them seriously. Its been up for 3 months.

It's hard to say unless they were the only offer.

You're right that most agents wouldn't take them seriously until they were preapproved. Sounds a little fishy to me unless it's a strong buyer's market. Either way, see if you can get a tour and at least put in a backup offer.

 

[ekrev98]

Cabinets are being installed today. Getting close to completion!

 

[dam itz lou]

Cabinets are being installed today. Getting close to completion!

Are those shaker cabinets ? if so, how much did that set up cost you?

 

[ekrev98]

Are those shaker cabinets ? if so, how much did that set up cost you?

Yes they are shakers. It varies depending on where we buy them, how fast we need them, quality, color, etc...Can't really discuss costs because we get a deal on them.