OT: real estate

[sumpin_fishy_sfba]

<a href=showthread.php?s=&postid=8191651#post8191651 target=_blank>Originally posted</a> by tonggao
If they paid off their mortgage already. A lot of people are working everyday to be able to pay the monthly mortgage. Think what if they loose their jobs.

Imagine the people that went with the 36 year interest only loan. They have 6 years to pay interest only then it goes to a normal loan. I wonder how many of them acually loose their houses to the bank because they didnt get that raise they were banking on. I work for a new home builder and was talking to one of our sales agents last year, and she predicted within 5 years (in Sacramento) that the bank will own 50% of the houses they were selling. She pretty much said that the people buying the houses today were in over thier heads.

 

[Vincerama2]

Yep, I bought my place almost 2 years ago. Market was a bit hot for my tastes, but it was the "next step" so I took it. I think the real "deals" for people who can wait it out is for those edgy mortgages to come due (like sumpin_fishy said) and snap up the bargains. I mean, assuming you want to rent for the next 4-6 years. (And save up a downpayment while you do it!) Bah, what am I talking about, reefers don't save their money ...

V

 

[sumpin_fishy_sfba]

<a href=showthread.php?s=&postid=8197228#post8197228 target=_blank>Originally posted</a> by Vincerama2
Yep, I bought my place almost 2 years ago. Market was a bit hot for my tastes, but it was the "next step" so I took it. I think the real "deals" for people who can wait it out is for those edgy mortgages to come due (like sumpin_fishy said) and snap up the bargains. I mean, assuming you want to rent for the next 4-6 years. (And save up a downpayment while you do it!) Bah, what am I talking about, reefers don't save their money ...

V

You will see me in 2 years on the side of the street holding this sign...

:hammer: WILL WORK FOR ZOA'S! :hammer:

 

[racrumrine]

Re: OT: real estate

Funny thread.

Yes, the half of the homeowners that don't have reef tanks are millionaires. But, since most people are in debt up to their eye balls, you are only a millionaire if you can sell everything, pay your taxes on the gain, and have a million free and clear. Not many people can say that.

Then, if you still want to live in the Bay Area, you have to figure out where are you going to live, and be happy, for less than a million? The people that make a killing are the ones that leave the Bay Area. But, usually they can never afford to come back to the neighborhood they left.

In Belvedere, there is a street where almost every house is decorated and people come from all over to get lots of candy. In Tiburon, there is a neighborhood, that shuts down the streets and gives free hay rides.

Except for those 2 areas, things are pretty quiet. I don't think either area would be worth a roadtrip from the East Bay.

Best of luck,

Roy

<a href=showthread.php?s=&postid=8191558#post8191558 target=_blank>Originally posted</a> by sid700
Just read this in the SF Chronicle.<ul>
"In both San Francisco and Marin counties, the median price remained unchanged from a year ago, at $790,000 and <b>$920,000</b>, respectively."
</ul>

Does this mean that half of the homeowners of Marin County are millionaires (or very close)?

 

[Vincerama2]

Re: OT: real estate

<a href=showthread.php?s=&postid=8191558#post8191558 target=_blank>Originally posted</a> by sid700
Just read this in the SF Chronicle.<ul>
"In both San Francisco and Marin counties, the median price remained unchanged from a year ago, at $790,000 and <b>$920,000</b>, respectively."
</ul>

Does this mean that half of the homeowners of Marin County are millionaires (or very close)?

I think it means that 100% of the real estate agents in Marin are millionaires ...

V

 

[dantodd]

The ultimate middlemen

 

[Vincerama2]

no kidding! three percent of one million is $30,000. Not bad for selling something that you don't own and that you didn't have to work for. OK, yeah sure, they fill out some forms.

Makes me want to get my own real estate license to sell my own house. Why should they get the commission? And why isn't it more negotiable? Like "Hey, I'll let you sell my house for 1% commission. Take it or leave it". Well, for all I know you CAN do that.

V

 

[dantodd]

Commission is completely negotiable. You can also put wording in the listing that the buyer's agent will only get X% commission but you can guess how many folks get shown those houses!

 

[badpacket]

But, with the market as stagnant as it is right now, sellers do have a lot of pull with the agents. If it stays slow, a lot of agents are going to be facing the same problems as many people who took the 1 and 3 year interest only loans. Not enough people selling homes means competition among the agents, which means they will have to compete by either a demonstrated current ability to sell, and/or by lowering their price/commission.

 

[crazzyreefer]

its a buyers market... what does that mean? ... the market is flooded with properties, and with higher rates homes will stay on the market for a few months, Commissions are completely negotiable, but with a caveat, you get what you pay for! and since we, Realtors have to pay for all the advertising up front, get the home ready and Pay for E&O insurance, Licensing, Mls Fees, Lock box Fees, Gas and every other expenses, without being guaranteed a pay check at the end of the month, I dont see many Realtors willing to charge a couple of grand to sell your home.

you can have Help U type companys not help you sell your home for 1% plus be nicked and dimes at every turn and pay the same if you went with a great agent, its your choice. Are all Realtors rich... NO most dont make it over 2 years in the business.

Real Estate Taxes and interest that you pay are directly deducted against your income lowering your tax base, thus giving you a raise in income, yes A Raise! when was the last time you just asked for a raise and got it?, also there is no gain in equity on a rental, nor any tax savings. If you rent a home at 2500.00 per month and you buy a place and pay 3500.00 per month your actually going to have more money at the end of the year, and your payment of 3500.00 dosnt increase, unlike rent, in time rent will increase more than the mortgage, its at that point where you can rent it out, buy another home, and still gain equity, if you live in the home for 3 years, you can then rent it out for the next 2 years, sell it off after that, and if your married, you wont pay capital gains for 500k of profit on your rental, you can then use that money for anything you wish including paying off your new home!

Dan it is illeagal for a realtor to show homes just based on commission structure, yet it does happen, in a sellers market, 2-2.5% is good enough for a buyers agent, but with the glut of homes they need to be attractive, yes clean and fixed, not handyman specials, and due to the long time line agent will charge more due to the increase in hours spent showing your home. I charge only 1% when I recive a large tract of homes, since I will be selling off 100 homes, I can lower the commission, but when you sell off one home, its not the same structure.

Nicholas Oberzire
Exclusive Estates
Broker Owner

 

[Vincerama2]

Rent vs Buy was always a good debate in Canada, where you CAN NOT write off mortgage interest! But the basis was always that you took the difference in rent/mortgage and invested it. (ie; mortgage = $3000 and rental = $2500 + invest $500). Here it's different because it's more like mortgage = $3000 - tax break ~$600 = $2400 vs rental at $2500. (yes, fake numbers for illustration only, obviously!)

For some it still makes sense to rent until you can turn that "delta" into a nice down payment.

Another thing to thing about wrt higher mortgage rate + lower home price versus lower mortgage rate + higher home prices is that your property tax is based on the house price! (Though it's deductible from income tax thank God!)

Now I'd expect a GOOD real estate agent to sit down with me and explain the pros and cons with me.

I have to say that my agent, when I bought my house near the peak of the market (Jan 2005) helped explain a lot of terms and paperwork to me. The man had great patience (and was rewarded for it!) so I'm glad I went with him.

Oh, and one thing I wished ALL agents had is ... a GPS unit in their car! My guy drove with one hand, and had a Yahoo/Google Map print out in the other! It would have been really nice if he had a GPS and programmed in all the houses to make the house showings more efficient! My hint to any realtor is that for $400-$500 it's a great efficiency booster well worth the money and might make you seem a bit more professional! I mean, I want to look at houses, not get lost every 10 minutes! I don't want to spend my house hunting time driving!

V

 

[seminolecpa]

Nick,

Your assessment of rent vs. buy sounds good on paper but there are several other factors to consider.

1) Depending on you tax situation you may get no benefit of real estate taxes (AMT).

2) Mortgage interest is only deductible up to a certain point.

3) Buying a home comes with many other expense that renting does not.
Homeowners insurance vs. renters insurance (if you even choose to have it)

Repairs and maintenence (typically covered by your landlord in a rental)

4) Even if you get a deduction for interest and property taxes you still have to pay them where on a rental you do not. Yes the deduction helps to offset the cost but if you are one of the many people who leverage the heck out of a house and or do an interest only loan to pay for it or one of these crazy negative amortizing loans you are totaly up the creek without a paddle unless you get some major appreciation in the value of the home.


I am still all for home ownership but many people don't consider all of the facts before jumping in with both feet just because they want to say they are a homeowner..

Many of the people that are in trouble with their mortgages now got that way because they got themselves into a variable mortgage when interest rates were very low. Sure they could afford the mortgage payments at the time but as rates continue to go up many are slowly finding they can no longer afford their home.

 

[Vincerama2]

Oh, and what always annoyed me was that my friend bought his house in San Francisco just shy of 600K from his uncles + Dad, who inherited from their parents (ie, my friend's grandparents). It's a large 3 bedroom in the "Avenues" near Geary. Guess what he pays in property taxes .... $700. (Actually "grandfathered" in all sense of the word!)
Lucky, lucky guy!

V

 

[crazzyreefer]

Property Improvements are deductible at time of sale against any potential capital gains. I dont believe in Neg-Am mortgages, they never make sense unless you are just buying it to repair and flip, Interest only loans are fine but you should always make more than just a minimum payment. Your right about not getting any tax break, you must first pay taxes....lol, I didn't know you were a CPA... are you in want of any clients?

no one can guarantee you home to increase in value, its an investment, most people want 100% profit in 5 years, this is unreasonable, yet it can happen if you buy right, The home I have has doubled in 3 years, but most homes only went up 5-20% in the last 3 years, and some has lost value due to over bidding.

I could be wrong but I think he inherited the home and agreed to pay 600k outside of public records to keep the low tax rates.

if anyone has seen my truck they know I have more than just GPS...

Insurance typically runs 75-125 per month and it insures your personal property

 

[Mr. Ugly]

Dang, we need to have a BAR meeting on investments and financial planning with all you pro guys

 

[crazzyreefer]

I would do it but I would have to prove that the members will save enough money to buy a new tank...