It's official, homes are like ammo

[Muhammad]

Seriously, a house down the block from us was for sale for $12K. No one would busy it because the septic would have to be replaced, which entailed removing the entire back yard 6' deep into dump trucks. Having it all hauled off. New septic. Then new back yard dirt. Estimates around. $12-15K. Then repairs to the house. So for less than around $45K you could have a nice little 2 bd 1 bath house that wouldn't need any more work for 25-30 years, and could be sold for $70K all day long.

I see someone is slowly buying up all the little abandoned houses like that in our neighborhood and flipping them. It's nice to see them come

Well I'll send some Californians your way.

 

[Muhammad]

I lost my azz on that one. Among other things......I Bought a condo in Scottsdale, in 6 months it's lost 50% of its value and ended up selling on the courthouse steps.

I always thought that courthouse steps deal was a thing from the past, just an old saying. Nope

I went to the courthouse and there were hundreds of folks there just scraping up the remains.

It's never a bubble until you look back.

Well... I wouldn't be surprised if our current housing situation turns ugly. Doesn't it always work in cycles? Everything seems like it will never stop going up. Until it goes the other direction. Historically, those moves happen a lot harder and faster than the ascent. Stairs up, elevator down, so to speak.

My wife and I bought a house last year and I felt like we were definitely buying at the top and was prepared to absorb 25-40% decline. But instead we're now up 60% in nine months. Yes. 60% in nine months. Sensible minds would sell but where are we going to live? Rents are sky high and housing inventory fell through the floor to the lowest levels on record. Also, even if we could take a few bucks out, we'd be paying 56% tax on the income and then after that, what would we do with cash? Put it in a 10 year t bill and get 1.7%% a year to offset 20% of inflation in 2020?

 

[old and tired]

Not sure I would use "elevator" unless the cable was cut... I think walking off a cliff is more like it.

Our neighbors were looking to buy but they couldn't even afford their own house if it went on the market now!?!?!

 

[MoKelly]

Not sure I would use "elevator" unless the cable was cut... I think walking off a cliff is more like it.

Our neighbors were looking to buy but they couldn't even afford their own house if it went on the market now!?!?!

I think there are a good number of folks who are “equity rich” and “cash poor”.

MoKelly

 

[deezler]

Whoa. So it really is getting crazy everywhere, huh?

There's a 850 sqFt 2-bedroom shack from 1938 with zero updates, next door to me for sale on 1.2ac. There's no functioning indoor plumbing or appliances. Septic is failed which means the township and county will require water/sewer hookup ($25k fee). So the house is essentially a tear-down. Instead, they are asking $150k. nuts.

 

[crashz]

You can add me to that camp. Nice place in southern NH bought 4 years ago. The Zillow report (taken with a grain of salt) lists our house now at an incomprehensible price. I would not be able to afford it now, even with the ridiculous amount of money the banks were pre-authorizing us for.

Cash poor - I always think I'm poor. But I have it covered. Trying to keep debts to mortgage only and building a solid cushion.

What really scared me was an article about the average American not being able to pay for an emergency $400 expense. Really? People are that broke? Then how are affording these huge homes and mortgage payments?

 

[MossRoad]

Well I'll send some Californians your way.

NOOOOoooooooo...........

 

[Sigarms]

Funny you should mention that.... they have an easement on their driveway, there is an HOA, and they have three sump pumps in their basement, 1 of which runs pretty much continuously after every heavy rain. They bought the house about 15 years ago during a divorce. I'd have told them not to buy that house. Most of the groundwater/drainage issues have been dealt with properly since then. Still, I'd hope that they listed those issues when sold.

A couple of years from now that person who bought that home will be here asking how to deal with a PITA easment and neighbor, and even perhaps a PITA HOA.

Possible groundwater or drainage issues won't hold a candle to easement or HOA issues because you can't fix people.

 

[MossRoad]

According to Zillow, our house went up 30% this year. That's nuts.

 

[Sigarms]

On a sidenote, it's nice to know it's not only stupid in my area when it comes to homes.

Only hope some rich people with horses would like to buy my land wheverever the market is on homes 10 years from now LOL