Home buying thread

  • Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!



    Go here and give us your nominations!
    Who's been the biggest Asshat in the last year? Give us your worst ones!
Burnem Wizfyre

Burnem Wizfyre

Log Wizard
12,455
21,847
TJT said:
@Gravel Seems here in TX they reduce your property tax by a percentage in line with your VA disability rating. At 100% you pay no property taxes.

That seems reason enough for me to also see if I can get even 10%.
Click to expand...
For whatever reason my homestead and my wife’s disability for being crazy didn’t get applied when we bought the house, they cut me a refund not to long ago for $1300, explains why my mortgage went up $200 a month because I was missing out on $110,000 worth of deductions, escrow company will be sending me a sizable check next year as well and my mortgage should decrease as well.
 
Haus

Haus

<Silver Donator>
13,039
50,861
Had a talk this weekend with a friend who is a life long Texan, got a job offer down in the Austin area and started shopping for houses. I had to send him this to crystalize his hatred...

1718571887703.png
 
  • 5Worf
Reactions: 4 users
Hatorade

Hatorade

A nice asshole.
8,501
7,265
Not sure where else to put this but three friends have been trying to sell their house (Houston Texas area) for a year and while they have had many buyers the deals keep falling through because bank won’t loan them the money…
1 sucks, 2 is weird, but 3 and potentially 50+ offers has me thinking the banks won’t loan 3-550k because of how bad it is gonna get.
 
Tmac

Tmac

Adventurer
<Aristocrat╭ರ_•́>
10,027
17,087
Hatorade said:
Not sure where else to put this but three friends have been trying to sell their house (Houston Texas area) for a year and while they have had many buyers the deals keep falling through because bank won’t loan them the money…
1 sucks, 2 is weird, but 3 and potentially 50+ offers has me thinking the banks won’t loan 3-550k because of how bad it is gonna get.
Click to expand...

Seems like an outlier. Houses selling fast over here.
 
  • 1Like
Reactions: 1 user
Arative

Arative

Ahn'Qiraj Raider
3,063
4,771
We have one house up the street from us that is over priced and has been on the market for a month.

Another house that was way under priced one street over that sold it's first weekend on the market
 
Haus

Haus

<Silver Donator>
13,039
50,861
In my neighborhood I'm seeing a couple things...
  • Houses people have bought to touch up and flip are sitting on the market a while because they're apparently overpricing them. (looks like the "updated flip" average price is coming in around $650k-$700k)
  • People willing to sell for around $500k can sell as fast as they want, since then the house is getting torn down and a new McMansion dropped on the lot and promptly sold for over $1m.
When I execute "Operation Peaches" (hopefully this fall) and have the house away from town ready to move into (hopefully next year) I was debating making this house a rental, as it looks like I could net $2k a month renting it. But then I have now been thinking, maybe raze it, build said McMansion, and sell for $1m+, then just put the money towards other things.

(Operation Peaches is where I'm selling some company stock I have to fund buying land outside town and building the "until we aren't on this mortal coil anymore" house for my wife and I, so won't have a mortgage on it.)
 
  • 1Solidarity
  • 1Like
Reactions: 1 users
C

Creslin

Trakanon Raider
2,505
1,151
I feel like renting is a lot of work and the roi on the rental income - maintenance + appreciation is not often greater than the return on just sticking it into spy but it is a good diversification strategy if you already have a ton in stocks.

The flip is less long term headache too
 
  • 1Truth!
Reactions: 1 user
TJT

TJT

Mr. Poopybutthole
<Gold Donor>
43,032
109,914
Haus said:
In my neighborhood I'm seeing a couple things...
  • Houses people have bought to touch up and flip are sitting on the market a while because they're apparently overpricing them. (looks like the "updated flip" average price is coming in around $650k-$700k)
  • People willing to sell for around $500k can sell as fast as they want, since then the house is getting torn down and a new McMansion dropped on the lot and promptly sold for over $1m.
When I execute "Operation Peaches" (hopefully this fall) and have the house away from town ready to move into (hopefully next year) I was debating making this house a rental, as it looks like I could net $2k a month renting it. But then I have now been thinking, maybe raze it, build said McMansion, and sell for $1m+, then just put the money towards other things.

(Operation Peaches is where I'm selling some company stock I have to fund buying land outside town and building the "until we aren't on this mortal coil anymore" house for my wife and I, so won't have a mortgage on it.)
Click to expand...
I am in the beginning phases of my own Operation Peaches. Just sketching it out now. I have a solid idea on the where and the what. I can reasonably purchase it in 3 or so years unless all hell breaks loose.
 
Haus

Haus

<Silver Donator>
13,039
50,861
Creslin said:
I feel like renting is a lot of work and the roi on the rental income - maintenance + appreciation is not often greater than the return on just sticking it into spy but it is a good diversification strategy if you already have a ton in stocks.

The flip is less long term headache too
Click to expand...
Exactly... .

Thinking once I am in the new place, this house (as much I have have worked on and improved it over 20 years here) get flattened. Sink $300k to build a McMansion, then sell it for a much bigger payout. Invest proceeds in something simple like SPY.
 
Sanrith Descartes

Sanrith Descartes

You have insufficient privileges to reply here.
<Gold Donor>
45,084
122,671
Creslin said:
I feel like renting is a lot of work and the roi on the rental income - maintenance + appreciation is not often greater than the return on just sticking it into spy but it is a good diversification strategy if you already have a ton in stocks.

The flip is less long term headache too
Click to expand...
I'm really in the same boat as you. I have a condo I rent with a solid renter. I have no mortgage so it's a solid revenue stream but at the same time as you say, it's various levels of work and attention that investing the cash if I sell doesn't come with.

Biggest plus is being able to expense off some shit associated with it so there is a tax savings it brings that I wouldn't see in a taxable account investment.
 
Fucker

Fucker

Log Wizard
12,927
29,649
Sanrith Descartes said:
I'm really in the same boat as you. I have a condo I rent with a solid renter. I have no mortgage so it's a solid revenue stream but at the same time as you say, it's various levels of work and attention that investing the cash if I sell doesn't come with.

Biggest plus is being able to expense off some shit associated with it so there is a tax savings it brings that I wouldn't see in a taxable account investment.
Click to expand...
What will you get out of it if you sold it? Easy to do the math on that vs renting.
 
  • 1Like
Reactions: 1 user
Daidraco

Daidraco

Avatar of War Slayer
10,319
10,733
Well obviously if you have the liquid cash to buy any significant amount of stocks, its easier to make a similar or greater return from stocks than you would renting out a house. The key here is that you can buy your second single family home for 1/10th, or 1/20th of its price, and use your credit to make what you hope will be a return after all the fee's and taxes. Thats in the case that you're completely ignoring the principal thats paid each month that you'll eventually pocket.

I spent 168k on Verizon stock way back in October and sold it all yesterday. Thats roughly a seven dollar spread so you dont have to look it up. None of the single family homes that I own outright will come close to that, never mind the dividends that I was paid out on during that time.

What IS putting everything to shame and helping me pay off shit quicker than ever is the quadplex Ive spoke about on here before that I built back in 2020. If I include the principal paid on it, versus what Im renting all four out for - last year I was just over 58k to the good for that year. Good tenants that I did extensive background checks on, with stable jobs, living peacefully - with trash/utilities/maintenance handled with semi-annual payments. Its about as hands off as it can get. This is completely neglecting the fact that the properties value has almost tripled during that time period.

But its whatever, I dont think either side is wrong in this. But I'm just not the biggest fan of single family homes anymore for as much money as they tie up.
 
  • 2Like
Reactions: 1 users
Sanrith Descartes

Sanrith Descartes

You have insufficient privileges to reply here.
<Gold Donor>
45,084
122,671
Fucker said:
What will you get out of it if you sold it? Easy to do the math on that vs renting.
Click to expand...
I have done it. I can walk with about $150k if I sell it in current market. And no tax liability because of the step up in basis. After prop tax, HOA, insurance I am clearing about $1100/month. Annualized its about 9% return a year. I can get that with the historical S&P. I lose out on price appreciation but also dump the issues and effort involved.
 
Khane

Khane

Got something right about marriage
20,515
14,235
People tend to oversimplify these things, comparing having the discipline to throw ALL of the proceeds directly into the market (highly unlikely) vs not throwing the extra monthly rental income into the market over a long time horizon.

The real question isn't about the money, it's about the hassle of being a landlord.
 
  • 1Like
  • 1Truth!
Reactions: 1 users
TJT

TJT

Mr. Poopybutthole
<Gold Donor>
43,032
109,914
Daidraco said:
Well obviously if you have the liquid cash to buy any significant amount of stocks, its easier to make a similar or greater return from stocks than you would renting out a house. The key here is that you can buy your second single family home for 1/10th, or 1/20th of its price, and use your credit to make what you hope will be a return after all the fee's and taxes. Thats in the case that you're completely ignoring the principal thats paid each month that you'll eventually pocket.

I spent 168k on Verizon stock way back in October and sold it all yesterday. Thats roughly a seven dollar spread so you dont have to look it up. None of the single family homes that I own outright will come close to that, never mind the dividends that I was paid out on during that time.

What IS putting everything to shame and helping me pay off shit quicker than ever is the quadplex Ive spoke about on here before that I built back in 2020. If I include the principal paid on it, versus what Im renting all four out for - last year I was just over 58k to the good for that year. Good tenants that I did extensive background checks on, with stable jobs, living peacefully - with trash/utilities/maintenance handled with semi-annual payments. Its about as hands off as it can get. This is completely neglecting the fact that the properties value has almost tripled during that time period.

But its whatever, I dont think either side is wrong in this. But I'm just not the biggest fan of single family homes anymore for as much money as they tie up.
Click to expand...
I rented out my old house mostly because it was easy. But selling it right now would be ~$400k cash which a lot more enticing than the rent I get.

Will need to make that decision next year... heavily leaning on selling.
 
  • 1Like
Reactions: 1 user
You must log in or register to reply here.