Home buying thread

Cad

scientia potentia est
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Wild thing to me is that all commercial loans are ARMs and yet no real change in commercial prices/lease rates yet either. Guess will see what happens in the next few years, but I feel like we have to have a downturn sometime here soon.
Commercial real estate has low demand and high supply - increasing costs to the landlords isn't going to increase demand, so prices stay stagnant.

Shit tons of commercial real estate is sitting vacant.
 
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Daidraco

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Story for the day - tenant calls me up, early as fuck this morning. I answer it, and he starts telling me all about another tenant. How this tenant was driving around without renewing his tags late at night on the backroads. How that tenant pawned the lawn mowing equipment that went with the complex. Leaving with a simple sentence "The dudes off bad with crack man. He's stealing from me and others in the building. HE STOLE MY VIAGRA man. I need that shit! Ive been clean fo' 'bout 6 months now - I aint eva' touching that shit again! Dude needs to straighten up, too!"

(narrator comes on in the background - Daidraco would later learn that this tenant would do crack again. As its fucking crack.)

None of my agents will touch any of these properties. Theyre super easy to collect rent on, since most of them get benefits from a third party sent directly to our PO Box. But the drama / stories I hear out of these places are ludicrous. I go over there in the company truck and I dont even carry a wallet. They all talk shit, in a good way. But I'll never trust a single one of them.
 

The_Black_Log Foler

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Is there ever a “best time” to build a house? Going on like 3 years of a shit economy and I’m sitting here debating new construction - do I wait? If so for what… Will materials prices ever come down? Is it worth the wait?
 

Sanrith Descartes

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Is there ever a “best time” to build a house? Going on like 3 years of a shit economy and I’m sitting here debating new construction - do I wait? If so for what… Will materials prices ever come down? Is it worth the wait?
Keep in mind that inflation is the rate of increase. If we get inflation under control it doesn't mean prices go back down. It means the rate of increase gets muted. It takes deflation to see prices fall. Obviously there are other factors that might cause prices of certain products/industries to drop without deflation.
 
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The_Black_Log Foler

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Keep in mind that inflation is the rate of increase. If we get inflation under control it doesn't mean prices go back down. It means the rate of increase gets muted. It takes deflation to see prices fall. Obviously there are other factors that might cause prices of certain products/industries to drop without deflation.
Yeah. So you’re saying now is as good as any time I think..
 
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Sanrith Descartes

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Yeah. So you’re saying now is as good as any time I think..
I am not in the building materials arena, so someone else might be better suited on those specifics but a general move downward in our day to day prices isnt on the horizon.
 
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Kais

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I work for a builder. As said above, we hope material costs stop rising. We don't expect them to go down. Labor rates too. If you are a cash, or mostly cash, buyer build whenever. If you need to finance wait til rates fall (hopefully) in a year or so, unless you're fine refinancing. Our biggest holdup to client onboarding is availability of lots. During the pandemic people were snatching up land at 2-2.5% rates like crazy and now are just sitting on empty lots. Those wanting to build are stuck because they can't find lots.

So, spend the time now to look and find a good lot in the area/school district you wish to live. Figure out building after that.
 
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The_Black_Log Foler

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I work for a builder. As said above, we hope material costs stop rising. We don't expect them to go down. Labor rates too. If you are a cash, or mostly cash, buyer build whenever. If you need to finance wait til rates fall (hopefully) in a year or so, unless you're fine refinancing. Our biggest holdup to client onboarding is availability of lots. During the pandemic people were snatching up land at 2-2.5% rates like crazy and now are just sitting on empty lots. Those wanting to build are stuck because they can't find lots.

So, spend the time now to look and find a good lot in the area/school district you wish to live. Figure out building after that.
Thanks. Already have the lot and full cash. I may consider this towards end of year.
 

BoozeCube

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When this damn breaks shits gonna get wild.

DAm3zr6vOicN.png
 

Lanx

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When this damn breaks shits gonna get wild.

DAm3zr6vOicN.png
8d55bdf5bfca1c68ebe25d7dc41cc985.png

what is the max you would pay (for the apt, not for the flexible asian) if you had to live in a big city, a tiny place was an option w/o roommates,
95 sq/ft w/ 1kitchen sink, toilet and shower

imo i think every big city should have these apt's available, i mean youre coming out of college and you are able to actually land a job, whats the point if apts available take up all your income?
 
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Haus

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When this damn breaks shits gonna get wild.

DAm3zr6vOicN.png
Home costs update continuously. Rents are paced to the usual 6 month or 1 year rental contract terms, but also rise, just slower. The cost to own an apartment building isn't going up for any given apartment building past what property taxes increase so long as the owners either own the apartment building outright, or are on a fixed rate loan for it. Now... NEW apartment developments are probably, IMHO, going to go ham on prices....

Unrelated interesting piece of analysis..
 

ToeMissile

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8d55bdf5bfca1c68ebe25d7dc41cc985.png

what is the max you would pay (for the apt, not for the flexible asian) if you had to live in a big city, a tiny place was an option w/o roommates,
95 sq/ft w/ 1kitchen sink, toilet and shower

imo i think every big city should have these apt's available, i mean youre coming out of college and you are able to actually land a job, whats the point if apts available take up all your income?
100sqft is a little tight, but I lived in a back/disconnected studio type room for a couple years, tight at 200 sqft. The owner didn’t build in a dedicated kitchen area, though there was space for it. Otherwise, it was great.
 

Palum

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Home costs update continuously. Rents are paced to the usual 6 month or 1 year rental contract terms, but also rise, just slower. The cost to own an apartment building isn't going up for any given apartment building past what property taxes increase so long as the owners either own the apartment building outright, or are on a fixed rate loan for it. Now... NEW apartment developments are probably, IMHO, going to go ham on prices....

Unrelated interesting piece of analysis..

While the delay is true, the pricing thing isn't exactly the case if there is enough demand. Older stuff is still floating up around here, though the cycle time is a lot less and I suspect a lot of SFH are still going at a discount because honestly people just aren't as ruthless as they could be compared to prop management companies. SFH are going for equivalent of 2 bedroom apartments generally.

I do wonder how this will correct, at some level in areas where there simply is no supply and builders are already stopping construction, it's another death spiral on the supply side like with 2008 where the impact won't be felt for a while due to slower starts. At least providing the government doesn't turn on the money spigot again. Food, water and shelter have 'infinite' ceilings on price, it's rather a question on society breaking down vs. economics.
 

Haus

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While the delay is true, the pricing thing isn't exactly the case if there is enough demand. Older stuff is still floating up around here, though the cycle time is a lot less and I suspect a lot of SFH are still going at a discount because honestly people just aren't as ruthless as they could be compared to prop management companies. SFH are going for equivalent of 2 bedroom apartments generally.

I do wonder how this will correct, at some level in areas where there simply is no supply and builders are already stopping construction, it's another death spiral on the supply side like with 2008 where the impact won't be felt for a while due to slower starts. At least providing the government doesn't turn on the money spigot again. Food, water and shelter have 'infinite' ceilings on price, it's rather a question on society breaking down vs. economics.
I think the government won't have an option other than to fire the QE machine again. But I don't think that will happen until after the next presidential elections, probably mid 25. New president gets sworn in, decides the only way out is to grow our way out of debt, plugs the QE machine back in.
 

Sanrith Descartes

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30% of homeowners under 3%?

How the fuck did that many Americans make the right decision?
 
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BoozeCube

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Yeah the better question might be, why didn't more people refinance to sub-3%?

Hell most people are retarded as fuck with their finances. People are refinancing like crazy right now at the 7-8% range because they have variable rate HELOCS and Credit Card debt up to their fucking eyeballs.

3% rates never should have fucking existed and honestly every PPP loan that was very given out should be required to be paid back in full with interest. Along with everyone in the FED getting a full on hug session for letting shit get this way in the first place.
 
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