For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[Joe mama]

I live in Queen Creek, new rooftops going up weekly in the new subdivisions near mine. Went out to dinner last night, 1/2 hour wait on a Sunday, I'm not seeing the doom and gloom yet. I think it could be coming at some point, if you bought in 2021, there is profit to take at this point.

Was out there last weekend, new places being built all over. Saw a few models with nice RV garages.

 

[HNL2LHC]

We remember this house when it was for sale back a few years in the $400s. Now it is on the market with a high number only having to reduce the cost. Interesting times.

344 Acoma Blvd S, Lake Havasu City, AZ 86406 | Zillow

344 Acoma Blvd S, Lake Havasu City AZ, is a Single Family home that contains 2882 sq ft and was built in 1982.It contains 4 bedrooms and 3 bathrooms.This home last sold for $712,000 in September 2023. The Zestimate for this Single Family is $753,300, which has increased by $2,619 in the last...

www.zillow.com

 

[LargeOrangeFont]

Not so sure that will be the case, they’re are still lots of people buying with rate buy downs and hopes of refinancing.

We probably won’t end up with a new build anyways, the narrow deep layouts they all have and tiny backyards is not for us.

And when they start buying without the hopes of refinance and needing to buy down rates.

 

[DWC]

Great deals around the corner they said.
2 years of downturn they said. I deal only in facts they said.

My coworker just sold his Anaheim Hills home for $1.5mil-ish. Sold in 2 days over asking. He bought a place in Seattle. Took 6-8 offers over asking before he finally got an offer accepted…. Over asking.

 

[LargeOrangeFont]

My coworker just sold his Anaheim Hills home for $1.5mil-ish. Sold in 2 days over asking. He bought a place in Seattle. Took 6-8 offers over asking before he finally got an offer accepted…. Over asking.

It’s rough out there!!

 

[attitude]

And when they start buying without the hopes of refinance and needing to buy down rates.

Where are the waiting buyers at? Single family rental homes on the market have increased by 10% since June, from 6200 to 6800 now.

Is everyone moving into apartments trying to save? I don’t watch the number on those.

 

[evantwheeler]

The new build I looked at in June started at 475k, it now starts at 430k, it’s not much but it’s something.

But whats it cost after 30 years at 7.x%.

 

[Havasu blue label]

It’s the property tax that usually catches up to those buyers with low interest rates

 

[attitude]

But whats it cost after 30 years at 7.x%.

Right at a million

 

[Cdog]

Where are the waiting buyers at? Single family rental homes on the market have increased by 10% since June, from 6200 to 6800 now.

Is everyone moving into apartments trying to save? I don’t watch the number on those.

Seasonal tenants. I have a laundry list of people who want my rental starting in October. It’s vacant as of last Saturday

 

[c_land]

Not so sure that will be the case, they’re are still lots of people buying with rate buy downs and hopes of refinancing.

It won’t be lol. Fed doesn’t cut rates and buy bonds because the economy is doing well.

 

[attitude]

Seasonal tenants. I have a laundry list of people who want my rental starting in October. It’s vacant as of last Saturday

Never thought of that. Are they usually retirees or people who just follow the weather?

 

[attitude]

It won’t be lol. Fed doesn’t cut rates and buy bonds because the economy is doing well.

That was my very basic understanding as well, the only counter argument I’ve seen is that the election might cause some shenanigans.

 

[Cdog]

Never thought of that. Are they usually retirees or people who just follow the weather?

Pretty much the same.

 

[jet496]

I think the major cause of the low housing inventory, thus making them high priced & in demand, is that everybody hangs on to their house & rents them now. Then they buy more rentals. I know a person with 400 homes (he's been doing it for 40 years though), a nephew who owns 10, his friend has 100 & retired at 35 years old, hell I own 3. This was not the case years ago.

Also big real estate companies, like Alexandria, I heard are scooping them up. It's crazy. We live in a rental world now. Good houses for sale will be hard to come by. Why sell when you can make bank collecting rent & enjoy the 400% increase in equity in a couple decades.

 

[RiverDave]

We remember this house when it was for sale back a few years in the $400s. Now it is on the market with a high number only having to reduce the cost. Interesting times.

344 Acoma Blvd S, Lake Havasu City, AZ 86406 | Zillow

344 Acoma Blvd S, Lake Havasu City AZ, is a Single Family home that contains 2882 sq ft and was built in 1982.It contains 4 bedrooms and 3 bathrooms.This home last sold for $712,000 in September 2023. The Zestimate for this Single Family is $753,300, which has increased by $2,619 in the last...

www.zillow.com

I Just filmed that house awhile ago. It’s pretty bad ass actually!

 

[Nanu/Nanu]

Im guessing property taxes or the cost of utilities every month is starting to weigh heavy on household incomes.

 

[CarolynandBob]

My dad has me going down the rabbit hole of rentals. I have owned rentals in the past (4), didn't like it, but I didn't have a property management company do it. Although I could probably just rent it to my dad and give him a reduced rate.

Anyway, my dad said he pays 5k a month rent in Naples, FL for his snowbird place. Pretty nice place, with lots of activities(snowbird must). He rents it for 8 months, which is pretty long. Most are 6 month rentals. Either way that is 30k minus cost a year. Dad pays 40k, so reduce it 10k for him or rent it to someone else for 6 months. Could live in it for the other 4-6 months or try to rent it out for the summer at a reduced rate. (tough to rent it out in FL in the summer)

They go for about 550k with HOA at $300. My thought is put enough down to get a loan for 20k a year and have 10k in reserve. My thought is Naples isn't going down in price. There is a lot of money there, so gaining equity shouldn't be a problem. The other way is to just pay cash, but then making 30K a year on 500k is a little under 7% return plus equity gain.

The problem I have is letting it sit for 6 months a year. Yeah maybe do a STR in the summer, but seams like a headache. We have our place in Sarasota for the winters, but there you have to vacate your place for 3 consecutive months. ( I know weird, but they don't want it turned into full time living) Anyway, we could go to the Naples place for the summer, but then what to do with our TN place. We really like it here, but the amount of work it takes to maintain my 8 acres is starting to annoy me. The other thing is we are very rural and have to drive a lot to get anywhere and the health care sucks. Have to go to Nashville Wednesday for a Dr. appt for my wife.

I guess 1st world problems, but is this a dumb idea?

 

[mesquito_creek]

Although I could probably just rent it to my dad and give him a reduced rate.

Turning over one renter a year makes this “reduced” rate even money renting to your dad by not having the costs accociated with turn over. It probably makes you money in the long term…

….. The other way is to just pay cash, but then making 30K a year on 500k is a little under 7% return plus equity gain.

You are doing way better than 7% by renting to a family member. In AZ for example as soon as you buy a 2nd home the county/city want you to register it as a rental so they collects sales tax on the rent. As a family member that does not apply. You dont charge your dad rent, he pays you “expense sharing”! He pays you cash and it not taxed sales tax, renter tax or income taxed.

Finally, someone will say you should not pay cash, finance it and depreciate it and write off expenses. But you pay higher capital gains when you sell it if you depreciate it. If you are in a high tax bracket paying the Medicare sur tax on cap gains that could be 18.6%.

So not paying income tax on the rent and not paying cap gain on the depreciation you do way better with cash buy and cash under the table rent to your dad. You still write off expenses but you do so at the sale against cap gains not yearly against annual income.

Consider all that before generalizing the 7% return

 

[EmpirE231]

My dad has me going down the rabbit hole of rentals. I have owned rentals in the past (4), didn't like it, but I didn't have a property management company do it. Although I could probably just rent it to my dad and give him a reduced rate.

Anyway, my dad said he pays 5k a month rent in Naples, FL for his snowbird place. Pretty nice place, with lots of activities(snowbird must). He rents it for 8 months, which is pretty long. Most are 6 month rentals. Either way that is 30k minus cost a year. Dad pays 40k, so reduce it 10k for him or rent it to someone else for 6 months. Could live in it for the other 4-6 months or try to rent it out for the summer at a reduced rate. (tough to rent it out in FL in the summer)

They go for about 550k with HOA at $300. My thought is put enough down to get a loan for 20k a year and have 10k in reserve. My thought is Naples isn't going down in price. There is a lot of money there, so gaining equity shouldn't be a problem. The other way is to just pay cash, but then making 30K a year on 500k is a little under 7% return plus equity gain.

The problem I have is letting it sit for 6 months a year. Yeah maybe do a STR in the summer, but seams like a headache. We have our place in Sarasota for the winters, but there you have to vacate your place for 3 consecutive months. ( I know weird, but they don't want it turned into full time living) Anyway, we could go to the Naples place for the summer, but then what to do with our TN place. We really like it here, but the amount of work it takes to maintain my 8 acres is starting to annoy me. The other thing is we are very rural and have to drive a lot to get anywhere and the health care sucks. Have to go to Nashville Wednesday for a Dr. appt for my wife.

I guess 1st world problems, but is this a dumb idea?

Factor in insurance costs. Not familiar with Naples, but Florida has some pretty wild home insurance rates in certain areas.

 

[Orange Juice]

We did a visit in June, @Cdog was nice enough to show as a few new builds and resells in the Surprise area. We stayed in Scottsdale and traffic was very minimal on the 10 around 5:00 on a Friday, which is odd because everyone has said it’s bad.

Wait until snow bird season.

 

[angiebaby]

If their right, then there in a better place, either way, I owe them nothing. They were paid. Move on, and shut up.

Im not winning any awards for my righting quality, and neither are most news articles.

Do you do this on purpose? It must be on purpose. Either way, it's a challenge to take you seriously. Perhaps you don't want to be taken seriously, IDK. If you want people to take your opinion seriously, you should at least make an attempt at proper spelling and grammar, considering most people on here have an opposing political and social viewpoint than you. If you don't care, that's fine, but the poor grammar, word choice, and spelling only reinforces their opinion that you are an idiot. Is that the goal? To prove their point? It seems like a strange method to attempt to argue with people if you ask me.

 

[ahavasu]

Do you do this on purpose? It must be on purpose. Either way, it's a challenge to take you seriously. Perhaps you don't want to be taken seriously, IDK. If you want people to take your opinion seriously, you should at least make an attempt at proper spelling and grammar, considering most people on here have an opposing political and social viewpoint than you. If you don't care, that's fine, but the poor grammar, word choice, and spelling only reinforces their opinion that you are an idiot. Is that the goal? To prove their point? It seems like a strange method to attempt to argue with people if you ask me.

Well righten!

 

[Havasu blue label]

Do you do this on purpose? It must be on purpose. Either way, it's a challenge to take you seriously. Perhaps you don't want to be taken seriously, IDK. If you want people to take your opinion seriously, you should at least make an attempt at proper spelling and grammar, considering most people on here have an opposing political and social viewpoint than you. If you don't care, that's fine, but the poor grammar, word choice, and spelling only reinforces their opinion that you are an idiot. Is that the goal? To prove their point? It seems like a strange method to attempt to argue with people if you ask me.

Proper spelling and grammar does that really matter at the end of the day

 

[RiverDave]

Proper spelling and grammar does that really matter at the end of the day

When the medium of communication is text, it’s somewhat important.

It’s the difference between
“Knowing your shit” or “Knowing you’re Shit” kind of important.

 

[LargeOrangeFont]

When the medium of communication is text, it’s somewhat important.

It’s the difference between
“Knowing your shit” or “Knowing you’re Shit” kind of important.

You put the emPHasis on the wrong syllAble.

 

[LargeOrangeFont]

Proper spelling and grammar does that really matter at the end of the day

Damifiknowbutnitprobablyhelpsyourcredabilitybytakingthetimeandefforttoatleastattempttocommunicateeffectivelywouldntyouagree

 

[240Hallett]

Damifiknowbutnitprobablyhelpsyourcredabilitybytakingthetimeandefforttoatleastattempttocommunicateeffectivelywouldntyouagree

Noted

 

[LargeOrangeFont]

Well righten!

Bad spellers of the world untie!

 

[HTTP404]

Bad spellers of the world untie!

 

[THE WIDGE]

Saw this on IG and found it interesting.

This is for Lake Havasu
View attachment 1262095

Saw that which is crazy, inventory is low. But I’ve seen a few houses recently pop up that was purchased 12-15 months ago for just enough to get out of it w realator costs.

 

[THE WIDGE]

A buddy just got a diesel Yukon that is pretty loaded for $4000 below MSRP. He said they have a bunch more that they are trying to get rid of. They aren't to the point where they will drop them $10-16k, but it's coming. I heard the dealers in Yuma are loaded with inventory.

What dealer, my wife wants a diesel Yukon, Tahoe or suburban

 

[angiebaby]

Proper spelling and grammar does that really matter at the end of the day

If you are having a discussion with people, especially if it is a heated one, appearing uneducated doesn't do much for your argument. In fact, it reinforces theirs. I guess if you are just speaking to yell, rather than wanting to be heard, spelling and grammar don't matter. Carry on with the yelling.

 

[hallett21]

If you are having a discussion with people, especially if it is a heated one, appearing uneducated doesn't do much for your argument. In fact, it reinforces theirs. I guess if you are just speaking to yell, rather than wanting to be heard, spelling and grammar don't matter. Carry on with the yelling.

I will say that my brain out paces my fingers on my phone. I tend to be editing my posts 3 and 4 times lol.

 

[angiebaby]

I will say that my brain out paces my fingers on my phone. I tend to be editing my posts 3 and 4 times lol.

Everyone has errors from time to time. Even school marms

 

[COCA COLA COWBOY]

What dealer, my wife wants a diesel Yukon, Tahoe or suburban

He got his at the GMC dealer in Escondido. However, I heard the dealers in Yuma are overloaded with inventory. If you wait, you may be able to do even better and maybe get 1-1.9% financing.

 

[Havasu blue label]

When the medium of communication is text, it’s somewhat important.

It’s the difference between
“Knowing your shit” or “Knowing your Shit” kind of important.

Very true

 

[arch stanton]

Damifiknowbutnitprobablyhelpsyourcredabilitybytakingthetimeandefforttoatleastattempttocommunicateeffectivelywouldntyouagree

Funny I have no problem reading that does not even slow me down

 

[CarolynandBob]

Turning over one renter a year makes this “reduced” rate even money renting to your dad by not having the costs accociated with turn over. It probably makes you money in the long term…



You are doing way better than 7% by renting to a family member. In AZ for example as soon as you buy a 2nd home the county/city want you to register it as a rental so they collects sales tax on the rent. As a family member that does not apply. You dont charge your dad rent, he pays you “expense sharing”! He pays you cash and it not taxed sales tax, renter tax or income taxed.

Finally, someone will say you should not pay cash, finance it and depreciate it and write off expenses. But you pay higher capital gains when you sell it if you depreciate it. If you are in a high tax bracket paying the Medicare sur tax on cap gains that could be 18.6%.

So not paying income tax on the rent and not paying cap gain on the depreciation you do way better with cash buy and cash under the table rent to your dad. You still write off expenses but you do so at the sale against cap gains not yearly against annual income.

Consider all that before generalizing the 7% return

Thank you very much. Didn't think of it from that angle.

 

[LuauLounge]

Today on FB

 

[PaPaG]

Today on FB
View attachment 1263223

Not only Dodge, I drove by Henderson Chevrolet yesterday off Gibson and they had every new truck in the front row's window marked with Up to $7000.00 OFF, now Up to means anything but you would have never seen this a few months ago. I was at the Ford dealer and a sales guy said every order is MSRP or less depending on the vehicle, he also said the lot is going to be real full soon so keep your eyes out for all the deals.

 

[PaPaG]

Interest rate effects are slowly catching up, Debt is rising day by day for the AVERAGE American, 1 TRILLION DOLLAR in just Credit Card debt and rising, it is the highest it has ever been in the History of our Country, supposed to hit 1.25 possibly 1.5 TRILLION in CC Debt if things don't change, one of the reasons is the NORMAL American (not typical baller on RDer that pays cash for everything and is making tons of money on their real estate equity ), but the typical American that has been using their credit cards on a weekly basis to get staples such as food, etc....getting deeper and deeper in debt as the weeks go by.........inflation actually went up a tic so I am betting interest rates go up another .25 next meeting, and if they do go up watch for a bunch of great deals the next 2-6 months as sales tank just like RVs are doing now.

 

[regor]

One Bank Calls Out Biden's BS: Finds BLS Has "Greatly Exagerated" July Jobs, Real Print Is Negative 30,000​

"The published July private-sector NSA NFP gain was 182k but this could be overstated by as much as 200k.... it would leave seasonally adjusted private-sector NFP down almost 30k in July"

THU AUG 10, AT 2:20 PM

 

[LargeOrangeFont]

One Bank Calls Out Biden's BS: Finds BLS Has "Greatly Exagerated" July Jobs, Real Print Is Negative 30,000​

"The published July private-sector NSA NFP gain was 182k but this could be overstated by as much as 200k.... it would leave seasonally adjusted private-sector NFP down almost 30k in July"

THU AUG 10, AT 2:20 PM


View attachment 1263246

X10 for 10 months, and we might see some actual RE deals.

For now we are relegated to talking about getting deals on leftover 2023 trucks

 

[HNL2LHC]

Anyone want a sweet new build with an illegal rental? It will be interesting to see how the market will value it. Crazy what you get for just over 7 figures. We have the reduction in Automotive. When does real estate happen?

https://propertysearch.hicentral.com/HBR/ForSale/?/202318947

 

[arch stanton]

Saw this at quality Chevy in Escondido

 

[Orange Juice]

Looks like more UPS truck drivers are qualifying for more expensive homes. $170k year.

UPS drivers in US to get $170,000 pay package - BBC News

The shipping giant warns of lower profits after it agreed a deal to avert a US drivers' strike.

www.bbc.com

 

[RiverDave]

We remember this house when it was for sale back a few years in the $400s. Now it is on the market with a high number only having to reduce the cost. Interesting times.

344 Acoma Blvd S, Lake Havasu City, AZ 86406 | Zillow

344 Acoma Blvd S, Lake Havasu City AZ, is a Single Family home that contains 2882 sq ft and was built in 1982.It contains 4 bedrooms and 3 bathrooms.This home last sold for $712,000 in September 2023. The Zestimate for this Single Family is $753,300, which has increased by $2,619 in the last...

www.zillow.com

So it went into escrow today at full price. The reason the price was reduced was because they found another house and Stacy had ten days to get it in escrow. It was worth it to the sellers to make it happen quickly, and she got them a killer deal the new house so the bottom line made sense.

Anyhow there is an open house tomorrow 10-1 because it was already scheduled for one. Stop by and see Stacy is you are around! I’ll tell her to make ya a Margie!

RD

 

[Orange Juice]

10,000 new home development in the Far East valley - Phoenix
$500k+.

MSN

 

[cofooter]

Are we starting to see some chinks in the armor? Some of the listings in the areas I am looking at (not California) are starting to show some list price reductions. Anyone else notice that??

MSN