Real estate General topic

[ultrarunner]

If I would have listened to conventional wisdom at the time I might still be renting.

At age 22 I bought a 1910 shack on a 25x100 lot and the property was facing condemnation.

I took my life savings and sold my car to buy it for $11,500 cash.

Family came to see it but didn't have the heart to tell me what a blunder I had made.

Best single investment ever and since I moved only 2 renters since.

Sometimes a stretch makes the dream a reality?

 

[WinterDeere]

You answered your own question, "it's a stretch financially". DON'T DO IT!

I couldn't disagree more. I've been successful, through some combination of hard work and luck, the fraction of each which we could all debate. But it all started with making an enormous stretch, to the point where there were months in which I had decide between home repair and eating. Friends who thought I was going in over my head at the time have never caught up, as they missed out on a full doubling in local real-estate value at the time, while they were either renting and saving or in smaller properties that didn't earn them nearly as much in said doubling.

I was able to mostly retire in my mid-40's, and start a business more to support my lifestyle than financial needs. I'm not Jeff Bezos, but I will never worry about finances, on our current track.

For most people, your home is the single largest investment you will ever make. Chosen and managed wisely, it will provide well for you in retirement. The most important factor in all of this is location, and all that surrounds that "L" word, it's the one thing you can never change about a property.

 

[kenmbz]

Look at this from both the place to live and as an investment.
Paying down a loan contributes to the funds you have in retirement.
Calculate the payments you can afford and that can tell you what you can comfortably buy.
Include tax, insurance, some money for upkeep, HVAC costs.
and importantly, moving costs and selling/buying expenses (closing costs etc.)
Once you have this picture, you can then feel more comfortable in the purchase.
Stretching a bit up front to get better returns is a business and risk decision.

People who get in over their head don't plan for all the costs.
Plan for them and this becomes less stressful.

 

[drssg]

If I would have listened to conventional wisdom at the time I might still be renting.

At age 22 I bought a 1910 shack on a 25x100 lot and the property was facing condemnation.

I took my life savings and sold my car to buy it for $11,500 cash.

Family came to see it but didn't have the heart to tell me what a blunder I had made.

Best single investment ever and since I moved only 2 renters since.

Sometimes a stretch makes the dream a reality?

I'm reminded of the real estate mantra: Location. Location. Location!

Your condemned shack cost about the same as my childhood home in Ohio, which had 40 acres, a house, and a barn. Granted, this was probably 20+ years before your purchase, but a big factor is where you want to live.

 

[JasperFrank]

In five years, the real estate market will collapse in the same way it always does. So save up with liquid cash and wait for it.

 

[ultrarunner]

I'm reminded of the real estate mantra: Location. Location. Location!

Your condemned shack cost about the same as my childhood home in Ohio, which had 40 acres, a house, and a barn. Granted, this was probably 20+ years before your purchase, but a big factor is where you want to live.

Yep… 40 years ago in East Oakland California.

Still own the place today…

 

[ultrarunner]

In five years, the real estate market will collapse in the same way it always does. So save up with liquid cash and wait for it.

Yes and no.

It was proven that the foreclosure sales on the court house steps had a pecking system of buyers… very much a closed club.

When the market collapse lots of money on the sidelines… at least my experience.

I made offers on many foreclosed properties… some 20 or more percent over asking and nothing.

One had so much interest with 9 qualified offers they did a reset inviting the 9 to submit best final offer and I did not.

A flipper bought it.

 

[paulsharvey]

Real Estate is such a local thing; it could (and very well might) crash in midwest and north east, and boom in the southeast.

I can't help but wonder what happens as the baby boomers finish dieing off? The youngest end of that gen is what, 70ish now, and the top end already 80. What does that do to supply? Does it really matter That much if the supply is bought up to turn into rentals? Big picture, I don't think anyone has the answers.

 

[paulsharvey]

On a Big picture, the US is nearing a population drop trend in next 15 years or so, and even before that, once you count out undocumented folks, we might already be in a population drop over all. We 100% have whole states, and many smaller areas that are depopulating.

We also have more and more remote working stuff; where you might be able to work as a well-paid project manager, from remote WVa or Ark, and that affects home sales trends too.

Over all; people prefer good climates, so I would expect SE US to grow, and Mich/Illinois/NY/NJ to start to shrink?

 

[dodge man]

I’m at the young end of the baby boomers, I’m 61. You trying to kill me off?