Home buying thread

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Tmac

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Blazin said:
You clearly think the economy ie the people are in some dire straights. They are not we are in the midst of an epic boom, people who lost everything? Yeah it's shitty and nowhere near enough people to matter a hill of beans. American families are better off than at any point in your life time with cash. You just aren't looking at the data and just going on feels.

So now you explain you don't think there is inflation coming so home construction costs will go down?

Stop having thoughts, just follow the data. Housing is a much slower moving beast than equities, it is driven by demographics. We have a big ass population bubble called millennials moving out of cities and buying houses. They are bigger than the baby boomers who drove the 80-90s boom. They aren't going to just stop in a few months. There is tremendous demand for affordable housing far more than we can meet. The well off will continue to fuck the working class via their purchasing power. It is going to be neigh impossible to meet housing demand in the near term. Lumber prices should mitigate some but this RE boom started before the pandemic (around 2016). Some moderation is likely but the trend is in place and that is up. I am hoping housing sees more technological disruption. It's what is desperately needed. We need innovation to help meet this demand and drive housing affordability the other direction like it has in so many other sectors.
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I wasn’t trying to suggest there’s no inflation.

I think inflation is here/coming I just think lumber prices are so wildly out of proportion they will correct by 10x. Particularly framing materials and random parts.

My uncle is a builder and his electrician is having to buy meter housing units from Home Depot bc they’re literally not in stock w his supplier. It’s basically all gone the way of ammo.

To your point, all the feedback I’ve heard from realtors says most people are buying homes w cash. I guess I assumed it was anecdotal and only rich boomers were buying bc they’re the only ones that can.

But, you’re saying it’s a trend rather than a fad, which I couldn’t deny.

I guess it’s just hard to believe that buying a house sight unseen for $40k above asking is the new normal. And that dumps in areas that need to be gentrified are going for $150k above what is typical.
 
Falstaff

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Your last statement (paying 40k over asking sight unseen), that will go away, but the price increases as a result of that will remain.
 
Tmac

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Looks like we’re applying for a loan since rent is sky high in Charleston, SC.

We’d rather have $36k in equity than piss it down the drain.
 
Araysar

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I closed on my house yesterday. 3300 sq ft in a small town in KY. We move in 10 days
 
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Gravel

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Our house sale closed yesterday. We're so close to cutting every tie to California. State taxes for 2021 will still be a thing, which sucks, but we're almost there.

Hopefully we get our proceeds from the sale Monday.
 
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AladainAF

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Congrats all of you for getting the fuck outta cali.

Such a shame to see how much the left can fuck up a beautiful place.
 
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Intrinsic

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Debating how much I even want to put down on this next house. Tying up the $100k from my (currently still in process) sale just seems like a bad idea. With interest rates still being low and inflation being high... I’m not a finance person, but it seems off, and generally trust my intuition enough to do research first. And dumping it all in Doge or Eth was a joke in the other thread but not that far off.
 
Gravel

Gravel

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My plan had been to buy some land and build a house, almost entirely in cash. Proceeds from our CA house for the land, and then anything we make from working in the next year to build.

But with this inflation mess, I think I've decided to just mortgage as much as possible. Just doesn't make sense otherwise.
 
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Araysar

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Intrinsic said:
Debating how much I even want to put down on this next house. Tying up the $100k from my (currently still in process) sale just seems like a bad idea. With interest rates still being low and inflation being high... I’m not a finance person, but it seems off, and generally trust my intuition enough to do research first. And dumping it all in Doge or Eth was a joke in the other thread but not that far off.
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i have put down as little as possible and shoved the rest of my cash into ethereum and bitcoin

interest rates are still low so its a good time to buy even if the market is a seller's market
this inflation snowball they have built will continue to make real estate appreciate very quickly
it will also make your mortgage debt worth less and less
im planning to refi in next 2-3 years to get rid of PMI (hopefully my house will appreciate that much) and whatever is left over, i will stuff into crypto
any extra cash i have on hand right now after paying bills, etc. -- goes straight into more crypto

my theory is buy now so you can benefit from the positive effects of inflation: rapid home appreciation, mortgage debt quickly being worth less and less
but to mitigate the negative effects of inflation, stuff all cash you have into crypto after paying bills.

find ways to get more liquidity and stuff it into more crypto. for example I took out the maximum loan against my 401k (4% APR )and sent it straight into crypto. in 2 weeks i already made enough to cover interest payments for the year
 
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Tmac

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Just gave my card to a housekeeper at the hotel. Told her if she knew any homeowners whose homes were NOT on the market but would sell it to me, I’d give her $1000.

Legit thinking about pulling a Democrats and calling pastors at churches in the downtown area offering them the same.

The only place we saw worth buying was a place that needs about $150k of work listed at $550k w comps that don’t need work valued at $550k. The fuck is this pos housing market.
 
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Big Phoenix

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Any reason not to refinance from a 3.875% to 2.5% loan? $6300 in fees with a reduction of $166 a month with a break even time of 3 years?
 
OU Ariakas

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Big Phoenix said:
5
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Do you mean you are 5 years in? My problem with 30 year mortgages is that it they are looooong. So you save $166/month but only realize gains after 3 years, but you lose 5 years of not having a mortgage at the end since it starts over at 30 the day you refi. I assume you have paid off enough in 5 years to get the LTV down by an appreciable amount? If so, have you tried to recast instead of refi?
 
Big Phoenix

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OU Ariakas said:
Do you mean you are 5 years in? My problem with 30 year mortgages is that it they are looooong. So you save $166/month but only realize gains after 3 years, but you lose 5 years of not having a mortgage at the end since it starts over at 30 the day you refi. I assume you have paid off enough in 5 years to get the LTV down by an appreciable amount? If so, have you tried to recast instead of refi?
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Haha yeah misread that, 5 years in.

Neighborhood isnt horrible so I dont necessarily see myself leaving in the next 3-4 years especially with how much homes have sky rocketed here in. Estimated value is now double what I paid for the place.
 
Drinsic

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Tmac said:
I guess it’s just hard to believe that buying a house sight unseen for $40k above asking is the new normal. And that dumps in areas that need to be gentrified are going for $150k above what is typical.
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Depends on where. Spent the last two months looking around Nashville and watching houses go for 20-40k over asking was the norm. Are most people making that kind of offer? Probably not, but when there's 15-30 offers on everything that isn't total shit, there's a good chance for there to be one jackass paying well over asking, cash, sight unseen. We only got the house we did because apparently none of the other offers were guaranteeing anything over appraisal.
 
OU Ariakas

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Big Phoenix said:
Haha yeah misread that, 5 years in.

Neighborhood isnt horrible so I dont necessarily see myself leaving in the next 3-4 years especially with how much homes have sky rocketed here in. Estimated value is now double what I paid for the place
Click to expand...

Then you have to ask yourself if $166/month ($2000/year) worth this?

A better question would be how much more a month you'd have to pay to knock it down to a 15 year, which I bet you'd get around 2%. Would $6000 more a year be worth doubling the amount of equity you put in for the next few year?
 
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