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| Prince-Charming |
 Posted: Fri Jan 05, 2007 10:50 am Post subject: A different perspective |
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Investing Associate
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I see a lot of negative posts about real estate right now, but I think it is very beneficial to people who do a little bit of homework.
I just made my first home purchase (a condo) and I was able to get the price I wanted due to overstocked inventory. I saved $14k! AND was eligible for a special program that gave me grant money and a reduced interest rate. The developer also offered almost $2k in tax credits!
I am very happy with my purchase. The city I live in has been nationaly ranked by Money Market magazine AND I get free WIFI!
When they say the market is gonna cool, that just means its not going to gain as fast as it was gaining. The price will still go up, just not as fast.
I think that the predicted amount of foreclosures can be used to your advantage too! Start saving extra money for preforeclosed properties. The price savings can be wonderful if you get into renting-just dont forget about the work involved in having renters. From everything I've read, it seems the best time to buy (on avg) would be between now and mid summer of 2007.
Whats the alternative to not owning? Paying somebody else to build equity. |
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| geb9696 |
| Posted: Fri Jan 05, 2007 1:56 pm Post subject: |
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Investing VP
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| While buying a first house is fine, you are not right about the housing prices having to go up. I am pretty sure that the condo's that were built in excess in wildwood crest in NJ at the shore are still going to fall mightly before you see it turn around. Alot of the price drop has to do with over building and now the people who built those condos can not sell them because they created excess in the market. The demand is just not there anymore. Congrats on buying the home and you are right that it is better then renting but buying real estate for an investment is very risky right now unless you know what you are doing. People who think they can flip properties in a few months are fighting a bad market. I think the end of 2007 will probally be closer to the buttom in prices. Also if you can find out what the rent is around your area there is a nice cash flow model that does real estate valuations. http://www.stern.nyu.edu/%7Eadamodar/pc/reval.xls |
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| DKnightSr |
| Posted: Fri Jan 05, 2007 1:58 pm Post subject: Re: A different perspective |
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Member of the Month
May
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| Prince-Charming wrote: | I see a lot of negative posts about real estate right now, but I think it is very beneficial to people who do a little bit of homework.
I just made my first home purchase (a condo) and I was able to get the price I wanted due to overstocked inventory. I saved $14k! AND was eligible for a special program that gave me grant money and a reduced interest rate. The developer also offered almost $2k in tax credits!
I am very happy with my purchase. The city I live in has been nationaly ranked by Money Market magazine AND I get free WIFI!
When they say the market is gonna cool, that just means its not going to gain as fast as it was gaining. The price will still go up, just not as fast.
I think that the predicted amount of foreclosures can be used to your advantage too! Start saving extra money for preforeclosed properties. The price savings can be wonderful if you get into renting-just dont forget about the work involved in having renters. From everything I've read, it seems the best time to buy (on avg) would be between now and mid summer of 2007.
Whats the alternative to not owning? Paying somebody else to build equity. |
Prince- I couldn't agree more! A few markets are going backwards, a lot of them are cooling...and some are still "truckin' on!". I live in Montana, and the market is still going berserk! My neighbor just listed a 3 bedroom, 1 bath on 2 acres for $229,000. Compare that to the 4 bedroom 2 bath on 3 1/2 acres of trees for $184500 bought last year (yes, me  ) I'm lovin' this stuff! Just like every other property, housing is always...."Location, Location, Location". |
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| t-bag |
| Posted: Fri Jan 05, 2007 2:38 pm Post subject: |
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Investing Sr. Associate
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All my research, and people I know who are way more knowledgable than me about real estate, say that the national market should even out around 2nd-3rd quarter this year.
But thats nationally.
Locally my market is on fire, still. I've read about markets that have lost mega percentage in a few months and even certain sectors of my market are in a negative position. But I say real estate is always good. Just know your market very well if you want to short term invest otherwise real estate will always go up in the long run(except in rare cases).
And when you do sell paint it flat off white, install the nicest cheapest plumbing fixtures you can find, block direct light, use lots of diffused or indirect lights, uplighting is best, and your good to go. And if you want to go the extra mile get granite or some sort of solid countertops throughout and upgrade your cabinet hardware to match your plumbing hardware. |
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| DKnightSr |
| Posted: Fri Jan 05, 2007 2:53 pm Post subject: |
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Member of the Month
May
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| Hey, thanks for the lighting tips! Hadn't thought of that one! Our favorite is....when a buyer is coming over, pop a loaf of homemade bread in the oven. For whatever reason....baking bread is to buyers what chumming is to sharks! |
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| frusnak |
| Posted: Fri Jan 05, 2007 3:22 pm Post subject: |
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CFO
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I think geb made a good point about developers over building. Here in Florida they went hog wild and some sites that were scheduled to be built are now being canceled. I think the market in Florida will pick up again soon because the boomers don't want to pay high taxes and deal with the snow. Try playing golf in the north in december or january. Texas and Florida are real retirement friendly states. Take a minute and think about it!  |
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| Grimreaper |
| Posted: Fri Jan 05, 2007 3:40 pm Post subject: |
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CFO
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| frusnak wrote: | | I think geb made a good point about developers over building. Here in Florida they went hog wild and some sites that were scheduled to be built are now being canceled. I think the market in Florida will pick up again soon because the boomers don't want to pay high taxes and deal with the snow. Try playing golf in the north in december or january. Texas and Florida are real retirement friendly states. Take a minute and think about it! |
Lot's o'fokes in ther retiremunt years is actually gettin "taxed outta" their homes here in Fl. I can't belive how high some o'da yearly tax rates went up here in my town. As long as the tax man doesn't log in the new sales at least taxes will remain steady!  Actually, I know a guy who bought a house that was assessed at 89K when he bought it 2+ years ago just afta one o'dem kawazee himacanes came through and a tree took out da roof. He paid assessed to the owners who were the o-rigi-nal owners....I think they was fokes from Fla who got sick of him n hericanes and decided to move north! Anyhoo, he got in nice and started to renovate but ran outta $$$ so as of right now it's got a new roof....but they ainna no kitchen...and both baths are torn up. Da badder news is dat his house was reasssessed at 132K afta all da RE bubbly shennanigans!  So now he be stuck wit a kewel old house wit a nice roof, holes in da floor, and no kitchen or baths and a $1700+/yr tax bill! NICE! |
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| Im Not Warren Buffett |
| Posted: Fri Jan 05, 2007 4:05 pm Post subject: |
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CFO
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| DKnightSr wrote: | | Our favorite is....when a buyer is coming over, pop a loaf of homemade bread in the oven. For whatever reason....baking bread is to buyers what chumming is to sharks! |
A realtor friend-of-the-family told us she brings a pack of those "break and bake" chocolate chip cookies to houses and sticks them in the oven before she shows them. Apparently this is (almost) coast-to-coast knowledge. |
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| poornewb |
| Posted: Fri Jan 12, 2007 12:03 pm Post subject: |
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Investing Manager
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| Smells in a house can definetly be a deal breaker!! When My wife and I were looking for house several years back we found one that woulda been perfect, but it smelled like curry powder when we walked in!! And the current residents werent indian!! go figure. |
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