Are houses just investments now?

[pinkytoe]

I was looking at the latest MMM blog post about real estate investing and realized how much it turns my stomach that houses seem to be only about making money now. Whatever happend to the concept of home, neighborhood, shelter and community? With investors buying up all the fixer uppers and starter homes with their cash deals and lending clubs, how is any average person/couple able to buy their first house? Yet another house in my hood, a long time rental, snatched up for under $385K, the usual cosmetic upgrades and six weeks later on the market for $750K. Chaps my hide that lust for profit trumps everything.

[Ultralight]

Whatever happend to the concept of home, neighborhood, shelter and community?

It is long gone. Dang near anyone would choose money over the concept of home, neighborhood, and community. I really think the central problem in this nation (and the world) is about values.


Chaps my hide that lust for profit trumps everything.

Amen.

[iris lilies]

Your neighborhood is unusual. Most markets arent that hot.

if you dont want to support the lust, are you cutting a couple hundred thousand out of your own profit to help a young couple easily afford you house?

i guess you can grouse about the real estate market you are in, but most people would not if they were sitting where you are, a seller with long term equity. The market is the market.

[iris lilies]

I was looking at the latest MMM blog post about real estate investing and realized how much it turns my stomach that houses seem to be only about making money now. Whatever happend to the concept of home, neighborhood, shelter and community? With investors buying up all the fixer uppers and starter homes with their cash deals and lending clubs, how is any average person/couple able to buy their first house? Yet another house in my hood, a long time rental, snatched up for under $385K, the usual cosmetic upgrades and six weeks later on the market for $750K. Chaps my hide that lust for profit trumps everything.
Also, there are plenty of cautionary posts on MMM About using one's home as a bank account. Generally, its not a smart thing to do.

[LDAHL]

What a willing buyer and a willing seller want to do under the balance sheets is their own business.

One thing that often drives up housing prices is regulation aimed at restricting supply for any number of reasons (zoning, preserving "historical character", etc.).

[pinkytoe]

under the balance sheets
Oooh...I like that one.

[bae]

One thing that often drives up housing prices is regulation aimed at restricting supply for any number of reasons (zoning, preserving "historical character", etc.).

My county, with the huge pile of regulations and permitting requirements added over the past 20 years to protect the character of our community and our environment, has driven up the price of year-round housing tremendously, and practically eliminated the supply of year-round rental housing. And now the local government is wringing its hands once again about how we have a housing crisis, and Something Must Be Done. "Something" in most of the proposals involves even more land-use regulation, rent-control, taxation, and meddling by the inept and corrupt county government.

The regulations passed to "protect the community character and environment" are complex and expensive to comply with, yet objectively accomplish nothing productive.

However, they have placed our community firmly on the path to becoming Martha's Vineyard, and driven up the prices and exclusivity of the nice homes on the islands... Guess who wrote the regulations....

[razz]

I was looking at the latest MMM blog post about real estate investing and realized how much it turns my stomach that houses seem to be only about making money now. Whatever happend to the concept of home, neighborhood, shelter and community? With investors buying up all the fixer uppers and starter homes with their cash deals and lending clubs, how is any average person/couple able to buy their first house? Yet another house in my hood, a long time rental, snatched up for under $385K, the usual cosmetic upgrades and six weeks later on the market for $750K. Chaps my hide that lust for profit trumps everything.

When I put my farm on the market, I was quite happy to ensure that the significant increase in land value was reflected in both the asking and selling price. It gave me extra peace of mind on funding for those years when I will not be able to earn an income beyond my investments. With the interest rates so low and the stock market so unstable, I have no loyalty to the neighbourhood as has no one else. Property is an investment especially when the quality of your future depends on it.

[Teacher Terry]

the seller should have done the upgrades themselves and then reaped the benefits. Once you decide to sell it is all about the $. If you sell it cheaper so a young couple can afford it they might very well flip it in a few years. People don't stay in 1 spot forever. They move more often then previous generations due to jobs, etc.

[ToomuchStuff]

Right now, here, we are in a sellers market. I know of a few houses that have sold in less then 24 hours; the sign never even made it up.
When there was easy money available, it was a buyers market. Now that it is harder, it is a sellers market, though not the high interest rates of the 70's. It goes in cycles.
My area is really mixed. We have lots of vacant houses around currently. Some of these houses were bought, fixed up and made homes. Others have been bought, money spent and they are attempting to flip. The thing is, they don't sell like other area's, because the market shifted years ago from 2 bedroom, 1 bathroom homes.
Financially a home isn't always an investment, it isn't even always peace of mind.
With the school district this area had, this area has faced issues for many years. Since changing the district and some drug issues this area has had on and off over the years, the city has been trying to crack down and change rules on rentals. This area is starter homes, yet the idea has remanied that a house at least as good if not better then the parents, has remained. Those who are not debt saddled and can swing it, are either trying to make more money by having rentals, or by trying to flip, like so many tv shows and commericals do.

[Chicken lady]

Mine isn't. we're upgrading it for the long haul, and doubt anyone we'll live long enough to know will make a profit on it.

the house across the street suddenly started getting new siding and we didn't see the couple who owned it around. Then a young couple with a two y.o. Turned up on the porch. Turns out he bought the place from his grandpa.

[sweetana3]

Our neighborhood is starting to heat up. We bought 15 years ago because it was an urban walkable (5 blocks to work) neighborhood. Now all the lots but one are built on and the old houses are starting to be significantly improved and resold. Our investments are elsewhere so we don't care what the value of the house does. We would have to sell to realize it and then buy something else. There are few condos and those that have been built this year are sold before completion. Gentrification is spreading out.

Every time we get out in traffic we look at each other and remark how nice it is to not have to drive anywhere.