quote:

Originally posted by RogueJSK:
My "breakeven duration" was a few months.

Please define 'break even'...The article never actually did that! IMO you don't know when/if you've 'broke even' until you sell, and any increase in equity due to market appreciation only equates to one's ability leverage/borrow against that equity. If it all comes crashing down in the interim, the only thing that might be broke is you!

quote:

Originally posted by nhracecraft:

...I do know this...As this years tax bill was over $10,700.00 (an increase of 8% from the prior year!), there's NO way I can afford a 50% increase next year, especially with half of the bill due two months from now!

OMG Almost $1,000 per month just for property tax!!

Well I guess there's a positive, higher property taxes hold down the price of real estate.

^^^NO Income Tax, NO Sales Tax...I think I'm ahead when you add EVERYTHING into the equation compared to most states! But yeah...

quote:

Originally posted by architect:
This has implications for investors who may have part of their portfolio in REITs (Real Estate Investment Trusts). It may be a good thing as wannabe home owners choose to rent for a while instead, driving up demand for rental properties, like those typically owned by REITs. OTOH, high mortgage rates will increase costs across the board for all types of properties. Office space is already in the tank, will we see similar on the residential side? Worth keeping an eye open, anyway.

There's a lot of other things that have contributed to office space being in the tank. Covid and the whole work at home bit, corporate figured out they could save money by not leasing so much space.

The effect that has on residential is still working itself out. I think we're still going to see appreciation in rural and more desirable areas. City centers I think are going to see the most depreciation.

I feel sorry for the young couple that lives 2 doors up from us. They recently purchased our old house and GROSSLY overpaid for it. They are never going to be able to get that price when they go to sell it, ever. Hell, it may only go for WAY less so they are effectively stuck in that house.

--We bought it in 2014 for a decent price for the market
--We lived there for 3 years
--The house we now live in was owned by an older gentleman who loved seeing our kids and was a really nice guy. Two houses down from us at that time.
--When he passed in 2017 we purchased that house from his two daughters and son
--We sold the old house to a young couple who lived there from late 2017 to mid 2023
--They sold the house for $100,000 MORE than we'd paid in 2014, 9 years before
--It's a nice starter home but it's NOT worth the price they paid, but the market went totally insane in 2021 to 2023

I am not sure how they are going to sell a house in the future they way overpaid for when this house of cards market finally corrects

If you have the cash, and put the money in a bank, I think the spread actually ends up tighter than it was when the interest was at 2.5 ish - though I get that inflation eats it too.

But I get that for young families, it’s hard - and until the local .gobs stop overregulating and over charging on fees, it’s not likely to change - which won’t help the birth rate.

quote:

Originally posted by nhracecraft:
^^^I agree...Minimum 30% correction coming! Anyone that purchased the first home in the current market will be WAY underwater and fucked financially! For those that sold their home at a likely huge profit and bought another (assuming they didn't opt for a HUGE upgrade and ended up with the same principal on their new mortgage) essentially ends up OK, otherwise they're fucked too! If you paid cash, you lost money once the correction crash gets here! Make no mistake, Financial Disaster is coming to the real estate market...Again!

Location, location, location. It’s not going to affect real estate prices where I’m at. If it does it’ll be minimal. There are so many mother fuckers flooding in here that if you have a place close to the city where the jobs are, etc, it’ll flatline at worst. Totally agree with you in many markets but this is all dependent on where you live. It’s so bad here I’ll be taxed out in 3 years.