View Full Version : Not mentioning my zip code.....(real estate related)
gimmethesimplelife
3-21-21, 12:59pm
Something that I consider unthinkable has happened in my neighborhood. There are actual listings of houses for 1/2 million not far from me. Now it's true that these houses are in great shape, and are large and modernized. But 1/2 million? When just ten years ago they were housing market crash priced at 90K or so?
This is unsustainable in my book - what's your take? Rob
iris lilies
3-21-21, 1:04pm
Real estate prices will go back down. How much, don’t know.
Since we inevitably buy high and sell low, you can expect real estate prices to drop about fall of 2022. That’s probably when we will be ready to sell our house.
You all are welcome.
happystuff
3-21-21, 1:28pm
If people didn't buy the houses for that much, they wouldn't list for that much. But as long as there is someone out there willing to pay it and as long as the seller can find that person, I guess it is between them. The sad part is - at least as witnessed in my area the last 5-10 years - the number of abandoned houses that ended up reverting back to bank ownership and literally falling into decay. The house next door and the one across the street finally have families in them! But they each stood empty for well over 7 years (can't remember exactly) and the restoration costs huge.
I am really beginning to question the whole idea of home-ownership at this point in my life. When younger and with a family, it worked. Right now - definitely questioning the whole thing.
I wonder who is buying them, and how they can afford them?
In my zip code, real estate prices are well beyond what most anyone working here can afford.
(And of course the low low interest rates seem to be contributing.)
I have rented in the past, but now--after forty-some years' ownership--I can't imagine living in someone else's property, at their whim. Too bad, because I see a lot of attractive rentals (at eye-popping prices) out there.
Something that I consider unthinkable has happened in my neighborhood. There are actual listings of houses for 1/2 million not far from me. Now it's true that these houses are in great shape, and are large and modernized. But 1/2 million? When just ten years ago they were housing market crash priced at 90K or so?
This is unsustainable in my book - what's your take? Rob
Prices have gone up pretty much everywhere. Are you dismayed because a higher class of folks will be moving in that won’t mesh well with the current working class and Hispanic residents? Are the houses large or do they just have a lot of amenities/large lots?
Rents have really gone up. I’m staying where I am. I pay several hundred below market because I’ve been here for more than 12 years. I’ll likely never buy. Too expensive here and I don’t want the responsibility.
There hasn’t been much construction of new housing stock in the past year, the price of a lot of building materials is none the less up. I think Bae is right, Mortgage rates seem awfully low to me right now. I would also think as we come out from under the Covid restrictions, pent-up demand is being released.
It would be surprising if we didn’t see at least a small housing boom.
I wonder who is buying them, and how they can afford them?
Low interest rates are responsible for much of it. Our inventory is so low nothing under $750k stays on the market even 4 hours.
My monthly payment on 60k back in 1983 would now buy 260k (not that anything here is that low but wages are up significantly from then as well except for minimum of course).
Teacher Terry
3-22-21, 1:21am
We sold our 1950’s 1400 sq ft ranch for 400k. Prices here just keep going up. The thing that seems different than the last time this happened is that we have a huge shortage of houses and we now have tech companies that pay bigger wages than other local employers. Plus besides retirees moving here many from the Bay Area can now work remotely so it is also driving prices up. Some people think we are in a bubble that will burst.
mschrisgo2
3-22-21, 2:00am
I wonder who is buying them, and how they can afford them?
In my zip code, real estate prices are well beyond what most anyone working here can afford.
Perhaps the same as is/has been happening in California for a while now... people from off-shore, All Cash offers. An offer that can’t be refused.
Then the home sits empty, as they really had no intention of living here, they are just “investing.”
That is happening in Canada as well driving up prices and then left vacant, simply a way to store cash outside the country of origin or source of revenue ;). Steps are being taken to address this issue in BC, I believe.
That is happening in Canada as well driving up prices and then left vacant, simply a way to store cash outside the country of origin or source of revenue ;). Steps are being taken to address this issue in BC, I believe.
What kind of steps? As long as the relevant taxes are paid and local laws observed, whose business is it except the owners?
iris lilies
3-22-21, 10:19am
What kind of steps? As long as the relevant taxes are paid and local laws observed, whose business is it except the owners?
Chinamen bad. Bad Chinamen!
happystuff
3-22-21, 10:24am
Chinamen bad. Bad Chinamen!
Until there is something you want or feel you deserve from the "Bad <fill in the blank> ".
What kind of steps? As long as the relevant taxes are paid and local laws observed, whose business is it except the owners?
An ownership registry that requires that corporations owning real estate notify the government who the actual owners of the corporation are so that the government can actually collect the relevant taxes, which include a 2% annual tax for foreign owners and a 1.25% vacancy tax on all properties that sit unoccupied for more than half the year.
An ownership registry that requires that corporations owning real estate notify the government who the actual owners of the corporation are so that the government can actually collect the relevant taxes, which include a 2% annual tax for foreign owners and a 1.25% vacancy tax on all properties that sit unoccupied for more than half the year.
Whenever people start referring to investors as speculators, you can be sure some creative taxes are coming.
https://simple.wikipedia.org/wiki/Speculation_tax
This explains the steps BC taken. I believe that the tax rate is or has increased more. It is supported by the residents who are unable to find housing but requires effort by the residents to prove that they live in their homes. Very unfortunate that it has come to this. A diversity of speculators are involved not just one nationality.
Whenever people start referring to investors as speculators, you can be sure some creative taxes are coming.
If not speculator what would you call someone who buys a home with no intention of living there or having tenants. Presumably they expect the make enough on the sale to make a profit even after paying all the costs associated with ownership.
If not speculator what would you call someone who buys a home with no intention of living there or having tenants. Presumably they expect the make enough on the sale to make a profit even after paying all the costs associated with ownership.
People held Amazon and Google for many years for the same reason. People just say “speculator” because they think it sounds more sinister and reckless than “investor”. This helps them feel justified in interfering with other people’s business.
... the government can actually collect the relevant taxes, which include a 2% annual tax for foreign owners and a 1.25% vacancy tax on all properties that sit unoccupied for more than half the year.
- Taxing foreign owners seems a bit jingoistic. What about owners from different provinces/territories?
- Taxing homes that are unoccupied 1/2 the year seems to be a bad thing for folks who may be away for medical care for more than 6 months, or perhaps be "snowbirds". Or dead, and their estate takes a while to settle. Etc.
It is fun to discriminate against non-locals and "those people" though. I know my own community would love to do this, as 50%+ of the homes here are vacant much of the year, and there's a considerable amount of "non-islander" ownership. If we could just screw over all those outsiders, life would be good here....
- Taxing foreign owners seems a bit jingoistic. What about owners from different provinces/territories?
- Taxing homes that are unoccupied 1/2 the year seems to be a bad thing for folks who may be away for medical care for more than 6 months, or perhaps be "snowbirds". Or dead, and their estate takes a while to settle. Etc.
It is fun to discriminate against non-locals and "those people" though. I know my own community would love to do this, as 50%+ of the homes here are vacant much of the year, and there's a considerable amount of "non-islander" ownership. If we could just screw over all those outsiders, life would be good here....
Maybe then people who wanted to move there and work in the community could afford to do so without already being rich.
I got a card in the mail from the realtor who has been courting us to list and her company is offering some sort of sell/buy program and it says will help you "win" the house you want to buy since contingency contracts are no longer being accepted.
ToomuchStuff
3-23-21, 2:27pm
My view hasn't changed much. When I was in my 20's, I would ask, if the baby boomers didn't have enough kids to replace them (social security), then things that they and their previous generations, bought, like houses, will have a surplus.
I expect there will be houses that will keep their value, but I also expect there to be a lot of older sections of cities, to be worth a lot less then they would cost to build.
Powered by vBulletin® Version 4.2.5 Copyright © 2025 vBulletin Solutions Inc. All rights reserved.