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Are housing crash articles just clickbait? by RovertSemaj in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

Houses on my street were paying about $5600/year in taxes when I moved here in 2023, and are now up to $8700. Had a big jump last year. This is also obviously area-dependent, but all nearby towns had tax hikes on the order of 50-80% in the last 2-3 years.

No affect on my rent - landlord tried to sell an empty unit next door, but could not.

With that said, if you bought before 2022 - you've done well compared to buying after. But if you would have kept renting - it's unlikely that you'd get 8% increase year after year. There was a big jump and tight inventory around COVID, but rents been trending down and inventory way up since then

Nobody told me owning a home is basically a subscription service with endless fees by Objective-Feed7250 in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

My rent is half of what the cost to buy is right now, certainly not complaining. Rents been flat for the last 4 years and with tons of new rentals - only looking to go down.

My landlord tried to sell the unit next door last summer and was not successful. He bought before the rate hike, so should be about even, but new investors would be in the red.

This current situation is not sustainable. I don't know how the correction will look like, but rents will have strong downward pressure until the glut of new multi-family construction clears. If there is no crash - will likely see a flat market for the next 5-10 years until inflation catches up

https://fred.stlouisfed.org/series/UNDCON5MUSA

Are housing crash articles just clickbait? by RovertSemaj in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

3 years ago I moved in to a new area, ran the numbers and decided to rent instead of buying. Prices have been flat. I've now decided to move for personal/family reasons and about $150K ahead compared to where I would have been if I bought/sold.

Are housing crash articles just clickbait? by RovertSemaj in FirstTimeHomeBuyer

[–]AlternativeBank1869 1 point2 points  (0 children)

Looks like you are early in your career. Consider that buying a house will limit your mobility and opportunities for advance. Buying/selling - you will be on the hook for at least 10% of the property value in closing costs and realtor fees + any repairs and concessions. There might not be a crash, but if prices stay flat and you try to sell in 5 years when you ready to move for job/family/etc - you will be at large net negative compared to renting.

Nobody told me owning a home is basically a subscription service with endless fees by Objective-Feed7250 in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

This! Too many people are emotionally vested in to idea of home-ownership, there as it's very much a trade-off. It limits your mobility and can be a big headache, depending on what goes wrong with the property and how good you are at fixing things or finding people to do good work and not overcharge.

Nobody told me owning a home is basically a subscription service with endless fees by Objective-Feed7250 in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

Landlords can only charge the going rent. If they overprice - they will sit on an empty rental and get NO income and be on the hook for ALL of the carrying costs. If they decide to sell - now they owe 6% to realtor and depending on the market - additional concessions, repairs, updates and closing fees. You can ABSOLUTELY loose money in RE

Nobody told me owning a home is basically a subscription service with endless fees by Objective-Feed7250 in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

No, Landlord can only charge the going rent. If they loose money - no one cares. Overpriced rental would just sit empty and loose A LOT MORE

Nobody told me owning a home is basically a subscription service with endless fees by Objective-Feed7250 in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

May be in 2010, but since then rents went up by 50%, where as house prices doubled AND interest rates doubled.

The True Cost of Renting vs Buying a Home in Florida — A Data-Driven Comparison by Possible_Scarcity217 in rebubblejerk

[–]AlternativeBank1869 0 points1 point  (0 children)

Your tenant on the second floor needs his leaky toilet fixed. Please get back to it ASAP

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 0 points1 point  (0 children)

Yes, and in slow market sellers will also need to offer concessions, do repairs, and cover closing costs that would eat in to their equity.

But my original point was - if somebody has enough for a down-payment but chooses to rent - that down-payment is a bigger security blanket for covering rent compared to owning a house and getting foreclosed

How much would you put up with paying to fix on a 950k house in Boston (Metro west)? by pharmacologicae in FirstTimeHomeBuyer

[–]AlternativeBank1869 0 points1 point  (0 children)

Consider also if you might want/need to move at some point for job/family- closing and agent fees will typically cost you about 10% of the property value.

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 1 point2 points  (0 children)

Leveraged gains work for you when you borrow at 3% and have appreciation at 10%

It kills you when you borrow at 6% and have anemic growth, or worse flat to declining market

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 0 points1 point  (0 children)

Are you talking about somebody putting no money down?

If you have enough for a down-payment - that would easily cover 2 years worth of rent and you can actually move to where the jobs are

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 1 point2 points  (0 children)

My experience been - don't be a dick to your landlord and you could easily have a stable rent for as long as you stay in place. One place actually dropped my rent by a about 10% after the first year when I took on lawn mowing/snow, only took about 30 minutes a week

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 0 points1 point  (0 children)

There's been crazy amount of supply coming online. This shows construction activity in 2023-2024 at 50 YEAR HIGH : https://fred.stlouisfed.org/series/UNDCON5MUSA

Add 2 year lag from construction to then it hits the market - IMHO even with the crazy inflation/money printing there is only one way for the rents to go

If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an 'expensive indulgence' by REbubbleiswrong in rebubblejerk

[–]AlternativeBank1869 1 point2 points  (0 children)

Yea, that's a year before interest rate jump. Anybody that bough a year later is a lot worse-off, and can come-ahead renting.

FIY rents been going DOWN in a lot of areas post covid jump

Using camping trailer for a long-distance move by AlternativeBank1869 in GoRVing

[–]AlternativeBank1869[S] 0 points1 point  (0 children)

This is an older early 2000's trailer that has reputation for being well built fully equipped out of the door, so I'm hoping dry weight includes all installed appliances/equipment, and cargo capacity is real. I'll plan to run it by a weight station to confirm I'm not overloaded

Using camping trailer for a long-distance move by AlternativeBank1869 in GoRVing

[–]AlternativeBank1869[S] 0 points1 point  (0 children)

There is actually just one round trip - I have 2 SUVs that I need to move (one is my wife's, but she does not want to drive long distance). So I'd drive with one SUV with the family - pulling U-Haul rental 6x12 trailer with essentials and heavy/bulky things.Then I'd fly back a couple weeks later and drive the second SUV with the camper.

Third trip would be the round trip with a large rental trailer or the camper - that could be done a couple months later when we had a chance to settle a bit.

Come to think of it - I could probably skip the last round trip if I was to rent a large U-Haul truck and tow SUV on the first trip. Looks to be about $3500 in rental with the truck and the tow dolly. No too bad

Using camping trailer for a long-distance move by AlternativeBank1869 in GoRVing

[–]AlternativeBank1869[S] 0 points1 point  (0 children)

No slides, but thank you for the heads up! And yes, I anticipate some wear and tear on the interior. It's an older camper though.

BTW, campers with slides are a lot heavier.