Home Buying & Real Estate Thread

[Vincent Van Goat]

How old is your loan?

WF told me the same until it reached 2 years of age.

Now I have the appraisal done just waiting for things to button up

It’s 3 years now, she said the only way to remove is when it gets to 75 or 78%

She said I could pay for an appraisal and they’d simply reject it so she suggested not to do it. She literally said “you’d just be wasting your time and money”

 

[spizike231]

It’s 3 years now, she said the only way to remove is when it gets to 75 or 78%

She said I could pay for an appraisal and they’d simply reject it so she suggested not to do it. She literally said “you’d just be wasting your time and money”

Damn bro I’m sorry to hear. :/

 

[アミーゴ]

Renting out my townhouse - better to do it myself or use a property manager?

What if something like the HVAC is old is it better to replace it or leave the working as is unit in until it fails and just something to coordinate with the renters to have it get fixed up.

I’m mainly concerned about long term stuff i want renters to keep the place decent like switch out air filters etc. Stuff that’s good for them obviously.

I grew up renting in apartments so don’t really get what people expect or not expect to do as renters of a house

I use property managers for my spots - makes it easier and I’ve worked with them for years.

How handy are you and how close to the rental?

 

[B Sox]

 

[ballinsam23]

Completely disagree with his take. For as experienced as he is, surprised he's saying something where I dont think any of the maths proves that it's better to pay less at higher rates.

You won't refinance from an 8% rate to a 2% rate for at least the next 10-15 years.

Calculate all the extra monthly payments you've been making in those 10-15 years due to the higher rate.

Plus no one who got their house at 2-3% rates will sell anyway.

 

[moderndarwin]

I use property managers for my spots - makes it easier and I’ve worked with them for years.

How handy are you and how close to the rental?

you answered my question illl be far away and can’t change a light bulb level of handy

 

[B Sox]

Completely disagree with his take. For as experienced as he is, surprised he's saying something where I dont think any of the maths proves that it's better to pay less at higher rates.

You won't refinance from an 8% rate to a 2% rate for at least the next 10-15 years.

Calculate all the extra monthly payments you've been making in those 10-15 years due to the higher rate.

Plus no one who got their house at 2-3% rates will sell anyway.

Using a simple mortgage calculator proves his point.

House is valued around $1.5M.

Say you can get it for $1.2M now with 8% rate and put 20% down. Mortgage is roughly $8,594 and you’d have to put $240k down.

In previous market with 3% rates and insane demand/bidding wars, you have to pay $2M for it. Mortgage is roughly $9,329 and you’d have to put down $400k.

 

[B Sox]

Have seen a bunch of folks posting this one too. It’s probably a better way to look at it instead of in reverse like Serhant was doing.

 

[206to813]

Maybe I did it wrong but I checked that math with a mortgage calculator using 2M house and 3% rate vs 1.2M house and 8% rate, both with 20% down payment.

with the 8% rate you would pay 1.57M in interest for a 30 year

Versus 828k on the 3% rate.

So I don’t see how ballinsam23 is wrong. Now you’re gambling to hope to refi to what, 4-5% in 10-15 years?
The calculations I did had a lower monthly payment for the 2M @ 3% option also

 

[uncalled4boy]

So Should I Buy A House Or Nah

 

[206to813]

Maybe I did it wrong but I checked that math with a mortgage calculator using 2M house and 3% rate vs 1.2M house and 8% rate, both with 20% down payment.

with the 8% rate you would pay 1.57M in interest for a 30 year

Versus 828k on the 3% rate.

So I don’t see how ballinsam23 is wrong. Now you’re gambling to hope to refi to what, 4-5% in 10-15 years?
The calculations I did had a lower monthly payment for the 2M @ 3% option also

Just adding
Maybe the better question isn’t now vs a couple yrs ago but now vs the near future

 

[B Sox]

So Should I Buy A House Or Nah

Can you afford current pricing without changing your lifestyle much? If so, I’d personally do it.

Location obviously plays a big role too.

 

[HankHill]

Using a simple mortgage calculator proves his point.

House is valued around $1.5M.

Say you can get it for $1.2M now with 8% rate and put 20% down. Mortgage is roughly $8,594 and you’d have to put $240k down.

In previous market with 3% rates and insane demand/bidding wars, you have to pay $2M for it. Mortgage is roughly $9,329 and you’d have to put down $400k.

Folks are readily getting 20% off asking price?

 

[sneakaprince]

Folks are readily getting 20% off asking price?

I think this is totally dependant on market demand.

The rates will help to dry up demand some but cash buyers or people that are prepared for the purchase aren't going to be so easily dissuaded.

 

[B Sox]

Folks are readily getting 20% off asking price?

Not around here

Which is why I think the better example, like 206to813 said would’ve been the now vs future hypothetical.

It does seem like there are deals to be had in some markets though.

 

[ballinsam23]

I also think in the “good” neighborhoods you are not getting a 500k discount on houses in that 1.5-2mill range.

From my understanding people still have money. The prices in these neighborhoods maybe dropped 5% max

Theres less bidding but people are still getting asking or very very close to it

 

[HankHill]

Not around here

Which is why I think the better example, like 206to813 said would’ve been the now vs future hypothetical.

It does seem like there are deals to be had in some markets though.

Not in the DC area. Any undervalued deals are typically auctions that still end up close to market.

 

[HankHill]

I also think in the “good” neighborhoods you are not getting a 500k discount on houses in that 1.5-2mill range.

From my understanding people still have money. The prices in these neighborhoods maybe dropped 5% max

Theres less bidding but people are still getting asking or very very close to it

Homes in my neighborhood are still selling for up to 10k over listing. Not as big of a hike during the pandemic, but they’re not taking hits and still selling quick. There’s enough folks with the income to still buy homes at these interest rates to offset the folks that can’t.

The issue in this area is that a lot of those folks want new houses (which aren’t being built fast enough) or a relatively new house (which aren’t hitting the market enough because the owners aren’t interested in ridding their sub-3% rates).

 

[lovehateself]

Not in the DC area. Any undervalued deals are typically auctions that still end up close to market.

aution sales come with certain clauses and a lot of lenders will not approve loans for them (depending on the buyer)
IIRC

 

[HankHill]

aution sales come with certain clauses and a lot of lenders will not approve loans for them (depending on the buyer)
IIRC

Right... most people looking to buy homes aren't participating in auctions where the upfront capitol is needed quickly. The "deals" in my area don't apply to them.

 

[oh you mad]

I recently got the US Bank Cash+ credit card because they offer 5% on utilities and its been cool so far

Water, trash/sewer, internet charge no credit card fees and gas company charges a flat rate fee of $1.50 so ill pay for several months in advance and keeping a credit on the account.

 

[townbidness]

I want a bigger home but Going from a 400k loan at 3% (value 600k) to something at 700k 8% id have to eat top ramen everyday.

 

[アミーゴ]

I want a bigger home but Going from a 400k loan at 3% (value 600k) to something at 700k 8% id have to eat top ramen everyday.

What’s wrong with that fam?? Back to undergrad days

 

[Raji Lowenthal]

Scared money don't make money, my lady's d-boy father was copping brownstones in Brooklyn at 15% interest back in the 80's when minorities had to pay extra. Real estate is a long game for the most part unless you straight rehabbing and flipping.

 

[HankHill]

I want a bigger home but Going from a 400k loan at 3% (value 600k) to something at 700k 8% id have to eat top ramen everyday.

Same...I bought a new build right before the pandemic but was still able to get a loan sub-3%. I'd be paying double my current PITI for a similar spec'd house even with 20% down. Not a big deal if I wanted a similar house since renting my home can eat most of the new mortgage, but I want a bigger house