Housing market

[Honu]

Yeah they are not home flippers but also not stupid to make a quick $400k and move on cant blame them either

This was common in the prior real estate booms in Florida. And a bunch of people made a lot of money.

But it never lasts, and you don't hear people talk about when they got stuck upside down on a property. Which also happened commonly in the prior booms.

My brother lives in the Florida keys and my parents did as well for a long time. During the time they've been there there has been at least three boom/bust cycles and it looks like another one is underway.

Property in Florida appreciates over time, as does most property. Due to inflation if nothing else.

But when people start building / buying homes just to flip them with no improvements made is usually a sign of overheated market. Too much money chasing limited inventory.

At the peak of the last bust I knew people getting interest only balloon loans on high end homes, lived in them for a year, then sold them for enough to pay off the interest plus make a profit. Worked great until the bottom fell out.

People in the keys who leveraged themselves to speculatively buy condos for $800k which 12 mths later were worth half that.

And that was not due to sub-prime loans, though those did contribute to the speed of the balloon.

[CRAMBONE]

And you'll LIVE where THEY tell you to.

I listened to a podcast a few months ago from Am Security Proj and that was their general consensus. “Well since the Gulf has hurricanes, Cali has fires and the mountains have snow just move everyone to cities where they can be protected.” That’s paraphrased.

[CRAMBONE]

We live with a vacant corner lot to our north which we own half for 40 years. Old farm plot with an odd diagonal border. The other owner from the farm house behind us died and it went for auction. A local hack contractor purchased the .25 acres for $48k in the auction. Should have never gone more than $18k. He's going to start construction in a cramped frontage in a week or two to sell quickly. So building materials are up what 30-40%? Properties are going quick here, maybe a day or two they are sold. Someone is going to take huge soaking on this property.

If it adjoins your property offer to buy it for $20k

[brickboy240]

The people that my realtor friends tell me are buying the houses in Houston are not corporations or REITs, but people fleeing CA, NY and IL.

My cousin says it is almost 3 to 1 transplants to native TX buyers that he is signing deal for. Frightening.....because this the type of migration that ruined places like OR, AZ and CO.

I laugh and joke to him that he better hope he never runs out of transplants to sell our houses to.

My problem is...I am a native Texan and love our culture and state and was not planning on leaving. However, if the cost of living in TX and the political climate changes, we might be forced to leave.

Depressing....when I think about it for too long. There is next to nothing we can do to stop this trend.

[jmp45]

If it adjoins your property offer to buy it for $20k

It does, the contractor is a real a$$hole. He seems to think this will be his retirement fund when he sells. I bet he would have paid 100k if the auction went that high. Maybe I will ask for the hell of it

[Honu]

It does, the contractor is a real a$$hole. He seems to think this will be his retirement fund when he sells. I bet he would have paid 100k if the auction went that high. Maybe I will ask for the hell of it

or get ahold of some audubon society say you saw some rare owl or tortoise on it and watch em lock up the use of the land to building homes hahahhaahah

half joke half real

[Arik]

Does it every time. All that "flip this house" BS. You can't simply put in granite counter tops and a new coat of paint and expect to get what amounts to an average persons yearly income and have it last forever.

For years I had to listen to "Bought it for $125k, worked on it for 60 days with $30k worth of materials and sold it for $225k." But when the day came that it was "Shit...I own 5 houses that I paid $150 each for and I can't sell them for even half that" they really couldn't figure out what went wrong.

Only drug dealers make $100k for two months work and even that doesn't last forever. But people actually expected to make $600,000+ plus a year and the gravy train never stopped.

Actually yes. Just have to know your area and the trends. I have friends that have been doing this since early 00s. 20 or so years of flipping houses and living well. Will it end? Probably but at this point they have a carrier out of it.

Sent from my moto z4 using Tapatalk

[ChattanoogaPhil]

Real estate, equities, business... timing is important. Anyone can sit on the sidelines and predict eventual downturns.

[FromMyColdDeadHand]

I know building materials are tight now, but at normal prices, what does it cost to build. I know there are different levels of finish- do you just spec by level is so much per square foot. How much does the complexity of the build matter?

I know that the stop on house building last year and the price of new building materials are both driving current house prices. But houses will be built and materials will come back down in price. Prices have to get back to some kind of balance with current building. I know land is limited, but especially in our area, there are a lot of scapes&builds. How much does it cost to take down a 3000sqft house?

I'm not looking for price quotes, just a general idea of cost to see how far off the prices are.

[FromMyColdDeadHand]

Didn't know that the FED was still screwing around that much in capital markets.

https://www.cnn.com/2021/06/19/busin...rve/index.html