Home buying thread

Creslin · Oct 17, 2022

Tmac said:
My cousin (28 yr old female nurse) just bought a $350k house at 7.1%. The first year is 5%, then 6%, and the third year is 7.1%. And they’ll mostly pay for a refi if the opportunity arises.

These are the most dangerous ones since the rising rate means ballooning payments are due. That type of deal and the interest only deals is what caused the 08 crash. Big red flag if they start coming up again.

standard ARM is still risky but the odds of the rate being higher than 6% in five years is probably low. I just wouldn’t bet my house on it.

The other thing that makes a crash from these high rates less likely is the volume of mortgages just isn’t there. You do need some critical mass to trigger a crisis and the number of mortgage originations is so far down it’s hard to see it happening even if they are risky.

Kiroy · Oct 17, 2022

Creslin said:
These are the most dangerous ones since the rising rate means ballooning payments are due. That type of deal and the interest only deals is what caused the 08 crash. Big red flag if they start coming up again.

standard ARM is still risky but the odds of the rate being higher than 6% in five years is probably low. I just wouldn’t bet my house on it.

The other thing that makes a crash from these high rates less likely is the volume of mortgages just isn’t there. You do need some critical mass to trigger a crisis and the number of mortgage originations is so far down it’s hard to see it happening even if they are risky.

why wouldn't the rates be higher than 6% in five years?

Blazin · Oct 17, 2022

Kiroy said:
why wouldn't the rates be higher than 6% in five years?

That impossible to know but the 10yr and 20yr treasury rates tell you that trillions of dollars does not believe long term rates will stay at this level.

Fadaar · Oct 17, 2022

The sooner the crash happens the sooner my happy ass can start seriously looking. Still kicking myself for not getting a house two years ago in the middle of the COVID panic. Nothing changed for me at all work and income wise so would have been perfect time but noooo I'm a lazy procrastinator.

Leadsalad · Oct 18, 2022

Kiroy said:
why wouldn't the rates be higher than 6% in five years?

Even if the rate stays at 6% or goes down to 5%, if home prices drop 15% they’ll be underwater and unable to refi. It’s getting fucked by being told a fiction that is unlikely even now.

Sanrith Descartes · Oct 18, 2022

Where I come from starter houses were very often condos for younger folks. Used to be able to get in for under 50k, so the downpayment was achievable for many of them. 800 - 1000 sq ft and with the HOA fee the monthly nut was doable for a lot of people.

Lanx · Oct 18, 2022

Sanrith Descartes said:
Where I come from starter houses were very often condos for younger folks. Used to be able to get in for under 50k, so the downpayment was achievable for many of them. 800 - 1000 sq ft and with the HOA fee the monthly nut was doable for a lot of people.

nyc is where condos make their money back in hoa fees

Creslin · Oct 18, 2022

my parents lived in a place here in MA that had a $1000/mo HOA but it came with free golf and 5k of free food per year at the private restaurant. Can't imagine paying that for something without pretty crazy amenities.

Sanrith Descartes · Oct 18, 2022

Creslin said:
my parents lived in a place here in MA that had a $1000/mo HOA but it came with free golf and 5k of free food per year at the private restaurant. Can't imagine paying that for something without pretty crazy amenities.

HOA can encompass things like you insurance, utilities (cable for example), that guard 24/7 at the security gate, the doorman etc. Some of it can add up.

Lanx · Oct 18, 2022

Creslin said:
my parents lived in a place here in MA that had a $1000/mo HOA but it came with free golf and 5k of free food per year at the private restaurant. Can't imagine paying that for something without pretty crazy amenities.

i got my mom a 500k condo, i forget the hoa i think it's under $200, we(family) put her in the same neighborhood (3blocks away) as one sister and it's a jewy neighborhood

a good thing about jewy neighborhood is they have their own jewy popo funded by the hoa (like neighborhood watch, but nypd respects em)

(notice it says safety patrol not nypd)

she doesn't want to live in chinatown (where the legit popo are chinese) so this was the next best thing.

Sanrith Descartes · Oct 20, 2022

Housing: Existing home sales drop for 8th straight month in September

Contract closings retracted 1.5% from the month before to an annualized pace of 4.71 million.

finance.yahoo.com

Lanx · Oct 20, 2022

nyc is such shit w/ rent, it's cheaper to just let an apt rot away

20,000 vacant units? Try triple that number

An internal state housing agency memo revealed more than 60,000 rent-stabilized units sat vacant in 2021, far more than previously expected.

therealdeal.com

imagine having to fix up a nyc rent controlled apt that was lived in for 50years!!!

they just said, slap on some new paint and put in a new fridge and rent it out, lulz

even my old home in bklyn was sketchy, hell it's so old the plugs don't even have ground

imagine having to redo the wiring on a nearly 100yr old house?

Sanrith Descartes · Oct 20, 2022

Lanx said:
nyc is such shit w/ rent, it's cheaper to just let an apt rot away

20,000 vacant units? Try triple that number

An internal state housing agency memo revealed more than 60,000 rent-stabilized units sat vacant in 2021, far more than previously expected.

therealdeal.com

imagine having to fix up a nyc rent controlled apt that was lived in for 50years!!!

they just said, slap on some new paint and put in a new fridge and rent it out, lulz

even my old home in bklyn was sketchy, hell it's so old the plugs don't even have ground

imagine having to redo the wiring on a nearly 100yr old house?

An airburst nuke would be doing NYC a favor. In 10 or 15 thousand years it could be rebuilt from the ground up.

Goatface · Oct 20, 2022

Lanx said:
imagine having to redo the wiring on a nearly 100yr old house?

without getting into long story, friend was knocking out part a wall of very old 2 story house that started as a single story. he found the old cloth covered wire, 2 sets of wire that came up from the basement, then split to everything upstairs. he thought it was going to be a 3 day weekend project, turned into 3 weeks of nights and weekends to fix.

Sanrith Descartes · Oct 20, 2022

Kiroy · Oct 20, 2022

Creslin said:
my parents lived in a place here in MA that had a $1000/mo HOA but it came with free golf and 5k of free food per year at the private restaurant. Can't imagine paying that for something without pretty crazy amenities.

betcha that hoa covered all frontage landscaping as well

people bitch about em but in the higher end areas they can be really nice and convenient if you have the coin

Lanx · Oct 20, 2022

Sanrith Descartes said:
My house was built in 1926. The electrical was grandfathered in. I spent weeks redoing it after I bought it.

same, but when i sold the house i only told my sisters we should only accept "as is" b/c fuck no we're not gonna renovate and put shit up to code. (i mean it's obviously safe to live in, but you know, once you sell a house some ppl want the house up to code)

Sanrith Descartes · Oct 20, 2022

Lanx said:
same, but when i sold the house i only told my sisters we should only accept "as is" b/c fuck no we're not gonna renovate and put shit up to code. (i mean it's obviously safe to live in, but you know, once you sell a house some ppl want the house up to code)

I would never consider selling a house as anything but "as-is".

Captain Suave · Oct 20, 2022

Sanrith Descartes said:
I would never consider selling a house as anything but "as-is".

I don't get why anyone prefers the owners do repairs instead of taking cash. Who do you want supervising the work for the house you're going to live in, you, or the guy moving out in 30 days with the incentive to do it as cheaply as possible?

Kriptini · Oct 21, 2022

Captain Suave said:
I don't get why anyone prefers the owners do repairs instead of taking cash. Who do you want supervising the work for the house you're going to live in, you, or the guy moving out in 30 days with the incentive to do it as cheaply as possible?

The one advantage to the seller doing the repairs is that they can happen before escrow closes. Depending on what needs to be done, it can be a bit of a bummer to have to wait until after close and the seller moves out before you can do what needs to be done in order for you to move in. I think it depends on what repairs are needed.

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