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Real Estate

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Volkonski
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Re: Real Estate

#26

Post by Volkonski »

I saw a story that said that the rising mortgage rates and housing prices will force 2 million Americans out of the housing market (including our younger doughier and her husband). So that is 2 million fewer mortgage applications to process.
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Re: Real Estate

#27

Post by RTH10260 »

They could keep the folks and retrain them to process forfeitures :twisted:
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Suranis
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Re: Real Estate

#28

Post by Suranis »

I think the implication is that there is a crash in the Mortgage market coming as prices hit a point no-one can even pretend to be able to pay.
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pipistrelle
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Re: Real Estate

#29

Post by pipistrelle »

Suranis wrote: Sat Apr 23, 2022 11:44 am I think the implication is that there is a crash in the Mortgage market coming as prices hit a point no-one can even pretend to be able to pay.
Maybe it's time to treat houses as places to live vs. investment stakes.

A friend and I used to talk about this — I would get pressured by others to "invest" in a house or condo and make scads of money when I sold it. Which sounds good when you look at how prices have increased. But it's no way to run a housing market where everyone needs a place to live and everyone can't be priced out.

Whenever I'm out and about and see the price of houses, I wonder who can afford them.
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Re: Real Estate

#30

Post by AndyinPA »

We’re going to be doing new siding and windows on a 44-year-old house. It’s going to cost us more than the cost of our house when we built it. Of course, even without the new siding and windows, the value of the house is more than ten times what we paid for it. We added $100 more each month to our mortgage payment and paid the mortgage off in 15 years. I think at the end we paid off the last few thousand.
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raison de arizona
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Re: Real Estate

#31

Post by raison de arizona »

Tallest Shipping Container Tower in North America Set to Open in Phoenix
Image
Oscar the Grouch isn’t the only one who loves living in a metal bin. Some Phoenix residents also have a taste for living in metal bins stacked on top of each other.

Eighteen Phoenix families are poised to move next week into IDA on McKinley, the tallest tower in North America made entirely out of shipping containers, according to developers.

The six-story, mixed-use new construction at McKinley and Third streets is a small step toward solving both the housing shortage and climate change crisis in Phoenix, according to the city.
:snippity:
https://www.phoenixnewtimes.com/news/id ... a-13693917
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Re: Real Estate

#32

Post by RTH10260 »

raison de arizona wrote: Wed May 25, 2022 2:12 pm
Tallest Shipping Container Tower in North America Set to Open in Phoenix

Oscar the Grouch isn’t the only one who loves living in a metal bin. Some Phoenix residents also have a taste for living in metal bins stacked on top of each other.

Eighteen Phoenix families are poised to move next week into IDA on McKinley, the tallest tower in North America made entirely out of shipping containers, according to developers.

The six-story, mixed-use new construction at McKinley and Third streets is a small step toward solving both the housing shortage and climate change crisis in Phoenix, according to the city.
:snippity:
https://www.phoenixnewtimes.com/news/id ... a-13693917
By living in a tin shed in one of the hotest cities and gobble up how much electricity to live comfortable :?:
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Re: Real Estate

#33

Post by humblescribe »

pipistrelle wrote: Sat Apr 23, 2022 1:04 pm
Suranis wrote: Sat Apr 23, 2022 11:44 am I think the implication is that there is a crash in the Mortgage market coming as prices hit a point no-one can even pretend to be able to pay.
Maybe it's time to treat houses as places to live vs. investment stakes.

A friend and I used to talk about this — I would get pressured by others to "invest" in a house or condo and make scads of money when I sold it. Which sounds good when you look at how prices have increased. But it's no way to run a housing market where everyone needs a place to live and everyone can't be priced out.

Whenever I'm out and about and see the price of houses, I wonder who can afford them.
Unfortunately, there will always be individuals who will never be able or refuse to purchase their own home. The reasons are varied, from poor fiscal management to low-paying jobs; from personal lifestyle choices to not knowing or wanting to keep your own property in working order; from transiency with work or career to a nomadic lifestyle in retirement.

Keeping real estate in good order can be expensive and time-consuming. It is easier to allow the landlord to handle problems, and the rent stays the same.

The tax code provides benefits for those who own real estate and lease it out. Residential real estate buildings are depreciated over 27 1/2 years, and commercial property over 39 years. (Land value is never depreciated, just the improvements.) Then, all operating costs are deductible. As long as the landlord can make cash flow with the rents, the depreciation is a soft cost that reduces taxes.

When the real estate is sold, any depreciation that was taken during ownership is "recaptured" at a maximum rate of 25%. Any sales price that exceeds the original acquisition cost is considered a Section 1231 gain, or long term capital gain, taxed at a maximum rate of 20%. (Both gains are also subject to the 3.8% net investment income tax, but there is an exception under certain circumstances.)

Perhaps the most important factor with rental real estate is that owners who are sitting on a pile of unrealized gains can sell those properties and then follow the rules under section 1031 to reinvest in new properties and defer the gain until the second properties are sold, or death (the ultimate tax shelter.) I currently have a client who bought a dozen or so run-down local properties back in the late '90s. He fixed them up himself, and rented them out for the past 20+ years. He didn't make a killing on the rents, but he did generate positive cash flow.

The recent trend of rising real estate prices placed $200K + values on these properties that he purchased for $45-$60K. He has sold off about three properties and purchased replacement properties in Iowa (he was born there) for $80-$100K and collect more in monthly rents in Iowa than what he was collecting here in California. Voila! Zero income taxes paid and an increase in rental income.
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SpecOps1
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Re: Real Estate

#34

Post by SpecOps1 »

I think that such large real estate agencies as Zillow will be able to cope with a large influx of real estate and sell everything they have to people
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Re: Real Estate

#35

Post by Tiredretiredlawyer »

Garage Converted Into Spacious and Modern Laneway Suite

Housing costs have soared astronomically in the last few decades, especially in big cities like Toronto, which was recently ranked one of the most unaffordable cities in North America. The city's lack of affordable housing has prompted interest in various solutions, like housing co-ops and community land trusts.

Laneway housing is yet another potential solution in Toronto, where a secondary residence could be built in the yard behind an existing main house, or out of a detached garage that opens up into a rear laneway. The laneway suite has an interesting history in Toronto, and thanks to recent shifts in the aging boomer demographic, as well as the eye-popping increase in real estate prices in recent years, laneway housing is now understandably gaining a lot of attention.

Laneway suites are but one potential option when it comes to building more affordable housing. They do have some limitations, as they can be expensive to build.

You also have to own the land that it's going to be built on, and laneway suites are not "severable"—meaning they cannot be sold separately from the main house.
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bob
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Re: Real Estate

#36

Post by bob »

Garage Converted Into Spacious and Modern Laneway Suite
The article (with pretty pictures).

"Laneway Suite" is new to me; I'm used to hearing them referred to as ADUs (accessory dwelling units), in-law apartments, or "granny flats."

In places where real estate is very expensive, they are increasingly becoming cost-effective due to the scarcity of the underlying product (i.e., buildable land). Building up instead of out, etc.
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Re: Real Estate

#37

Post by Tiredretiredlawyer »

Thanks for posting the link, bob!
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Re: Real Estate

#38

Post by AndyinPA »

We were recently in Victoria, Vancouver Island. The first time we were there was about 25 years ago. The last time we were there was about eight years ago. Twenty-five years ago, the surrounding area had a lot of green. It had clearly grown eight years ago, but we had been there two other times, and it looked somewhat changed, but didn't really look that much different. But this time we were shocked at the change. In Victoria, they really can only build up because of the terrain and their location on the island. I kept thinking how expensive they had to be and how did people afford them? I don't think the average person could afford the newer condos.

I looked at a real estate site, and I saw very little listed under $500,000 Canadian and a lot in the million dollar plus range.
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The area across the water used to be industrial and much greener, from what we can remember. But we were over there, and it seemed to be all condos, with more going up.

Housing seems to be unaffordable in a lot of places. I read recently that in many areas financial interests are buying up homes on the market for rentals, which is driving the cost of housing up.
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bob
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Re: Real Estate

#39

Post by bob »

AndyinPA wrote: Tue Aug 30, 2022 4:21 pmI read recently that in many areas financial interests are buying up homes on the market for rentals, which is driving the cost of housing up.
Or as flat-out investments, and leaving them empty.
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Re: Real Estate

#40

Post by AndyinPA »

bob wrote: Tue Aug 30, 2022 4:37 pm
AndyinPA wrote: Tue Aug 30, 2022 4:21 pmI read recently that in many areas financial interests are buying up homes on the market for rentals, which is driving the cost of housing up.
Or as flat-out investments, and leaving them empty.
Yes. :mad:
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Re: Real Estate

#41

Post by humblescribe »

When we moved into our home in 1992, there were five vacant lots to the south and east of us. These lots varied in size from 10-20 acres. In 1998 the city built a neighborhood park on the center 10-acre lot.

These lots have been zoned commercial/industrial since the original half-section fig orchard was subdivided in the 70s. Come 2008, and a builder wanted to build two 250-unit apartment buildings on two of the 20-acre lots. We locals were able to get the zoning changed to single family and the developer agreed. Those units are OK, and the traffic increase has been manageable. (Access to our neighborhood goes past a grade school and the road is a narrow two-lane frontage road off the main expressway.) Traffic is dicey during school days in the mornings and afternoons. The streets and access were created in the 1920s as access to the river and some riparian farmland. Hasn't changed in a century.

Two years ago we find out that the two remaining ten-acre lots had been surreptitiously rezoned from commercial/industrial to multi-family. A new developer had plans for a 180-unit complex on one lot and an 80+ unit complex on the other. They applied for and received credit for the mandatory green space by saying the neighborhood park was the "green space." Oh, really? They picked the wrong crowd to antagonize as our area is home to three retired developers and a couple of builders and some litigators. They sorta know how things are supposed to be done.

Things have been put on hold for the nonce. We still don't know where this is going. The neighborhood is not against development. We just want it to be sensible and have appropriate ingress and egress. (When the City did traffic counts a couple of years ago, the city selected the week between Christmas and New Year's, like that week is indicative of the usual number of vehicles.)

California has a poor way of noticing zoning changes. The law requires that notices for hearings about changing zoning or construction be distributed to property owners within 500 feet of the proposed changes. Five hundred feet. And I think it is measured from the center of the development, but am not sure about that. Even twice that distance is insufficient if the changes entail 200+ apartment units with probably 400 people and 300 vehicles expected.
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izakkimsey
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Re: Real Estate

#42

Post by izakkimsey »

The real estate market is going mad now, even worse than it was in 2021. Apparently, there’s a bubble, and no one knows how it will end. The prices are already skyrocketing, and it’s extremely difficult to buy a house for young parents.
And most agencies don’t care that much about the clients. That’s why I prefer to work without them, and I bought my first house ten years ago without the help of any agency. Agencies are necessary only if you don’t know the local market at all and need help.
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Re: Real Estate

#43

Post by miss meh »

izakkimsey wrote: Thu Sep 29, 2022 4:07 am The real estate market is going mad now, even worse than it was in 2021. Apparently, there’s a bubble, and no one knows how it will end. The prices are already skyrocketing, and it’s extremely difficult to buy a house for young parents.
That's the pickle i'm in now...have been living in mom's house since she died in 2020 - couldn't move last year since i was ill so have been paying rent to the estate (my sister, executor). This year we've had 8 charity pickups but still haven't cleared all of mom's stuff out (cough, home shopping network,cough). So not quite ready for sale yet.

Any 1BR condos that are decent & within my price range have been going under contract within days, but mostly its either cheap crap that needs gut rehab, or way over-priced that I cant bring myself to pay.

Sis wants to be done with this house but i cant see myself buying something random just to be out of here, when this would likely be the home im gonna live in for the rest of my life. Last thing I'd want to do is move again when prices come down.

Realistically speaking if pickings were slim over the summer they're probably not gonna improve now, and I cant see myself moving in winter anyway, who does that unless they absolutely have to?
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Real Estate

#44

Post by raison de arizona »

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