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Hurry B! Move here!

Discussion in 'Members' Lounge' started by jamesA, Jul 21, 2009.

  1. jamesA

    jamesA Well known pissed off telephone guy VIP

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    New Haven was voted #2 in the country for affordable housing. :p

    You can get some killer deals. 120k houses on the market for 80-89k easy.

    New Haven housing


    The sad part is the comments at the bottom are pretty much true.

    PS. the building in the picture with the yellow awning, thats my dads building.
     
  2. jamesA

    jamesA Well known pissed off telephone guy VIP

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    This place is seriously a great place to be if you like to flip houses for a profit. Some of them are run down and need a little minor cosmetic work.
     
  3. BigJ

    BigJ I'm just about that action Boss. VIP

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    How is it a great place for profit?

    You want to flip where equity is instilled fast. You don't get equity quickly by low housing costs. At that, the best placs to flip houses are found somewhere in the other end of the spectrum, where real estate is scarce, and professional people thrive. They don't have time to buy fixer uppers but want something with charm. Thats where the money is made. By a shit house for 500, dump 100k in it, sell it for 900. That's what people do in seattle all day.

    Edit: I understand the buy in is cheap, but I don't think you get the same marginal benefit as you do in the high end where houses sell fast.
     
    Last edited: Jul 21, 2009
  4. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Last year the lowest a house was selling for was 100k. Even for the small ass 2 bed one bath places with no garages. Before the housing market collapsed mine was appraised for 120k, I bought it for less than half of that and 90% of the work it needs is cosmetic.
     
  5. jeffie7

    jeffie7 Wrong Whole! VIP

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    paying 90K for a house and selling it 2-3-4-5-6 years later at 120-130-140K is not worth it.

    Too much risk for such a small pay out. There's not much for big income families in that area to really push the prices up so its still a big risk that might only see a 10-20K profit in 2-3 years.

    If you have money to invest places to buy are Reno, AZ, CA, Seattle, DC/MD/NVA

    Saw you just said

    So buy a house at 60K to see a house jump 100% in short term in todays market aint gonna happen. I could see it going to 80K in 2 years IF the market rebounds.
     
  6. Briansol

    Briansol Admins Admin VIP

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    it's a horrible time to flip. wouldn't touch it. the bottom hasn't happened yet (projections say sept 2010)
     
  7. Drake

    Drake Well-Known Member VIP

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    Even faster if Congress falls like a house of cards when it comes time to vote on Healthcare 'reform'. Which they will.
     
  8. jp_p5

    jp_p5 MicWhop

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    :werd: I am ready to sell it all and move to Ireland.
     
  9. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Ok so you buy a house for 60k here, put a few grand into work into it and live in it for 2-3 years which would amount to paying about 2-3k in escrow/mortgage/interest, when the market rebounds and you can sell the house for double, you wouldn't do it? 58-60 thousand isn't worth it?

    Its all feasible, just because a house won't sell for 120 now doesn't mean it won't in the future.

    If I had the patience and money to fix up this house I bet I could sell it for 120 easily. Thats well over double what I paid for it.
     
  10. jeffie7

    jeffie7 Wrong Whole! VIP

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    In the future yes, at some point it will be, however 2 years? nope, not going to happen, that's like saying my house will be worth 500K in a few years, my house was well in the 400s at the peak of the market, I bought it for $305 I live in a hot area that will rebound better then most areas thanks to government workers I will be very happy if I break even in 2-3-4 years when I go to sell the house.

    If my house is worth 400K in less then 5 years, I will be VERY surprised. The housing market just went though another run up on prices, my parents house was worth low 200 in the mid 80s, 300 towards the end of the 90s and from 03+ went from low 300K up to near 650-700K it took nearly 15 years to gain 50% of its value yet pulled 100+% in 2-3 years. As of right now its worth maybe 450ish.

    The days of a housing market running up are gone at least for this decade, we will see a bump in prices at first when everyone jumps back in but it will pan out and we'll see nice small yearly gains of 3-6% After while we'll see yet another run up and pull back.

    Long term, homes are always winners, however your idea of flipping a house thinking you'll see 100% gain on money in a few years.... look at the hard facts.

    1980-1989-52% appreciation 5.2% per year
    1990-1999-45% aprreciation 4.5% per year
    2000-2008-42% appreciation 4.2% per year

    Each decade had its own bubble where the market went crazy, we just went though it. Chances of it happening again in the next few years are slim. Yes values will go up, but we will not see 20%-30% gains in a single year let alone 50%

    Its like playing the stock market, (insert any stock name) sold for 10 bucks then shot up to 70 dollars, fizzled out back down to 20 bucks, chances of it making another run soon? good luck with that.

    Buying a trashed house in your area for 50K spending 15K on fixing it up then selling it for 75-80K wouldn't be a bad idea IF you have the cash, but then you have to deal with capital gains if you sell without owning it for 2 years. To avoid that you need to either rent or live in it. If you don't live in it financing will be high cost, if you do live in it then its more then just a investment, in order to make it worth while you'll have to flip 2-3-4 houses. Then there's selling it, don't forget about paying your agent up to 5-6% =(

    You are in a good position with your house, you already own it, you can fix it up and hopefully ride out the initial bump in gains and then 4-5-6% over the next year or 2 then sell it hopefully making enough profit to move up to a bigger better house. I just hope you don't really believe you'll see up to a 100% gain in only a few years.
     
    Last edited: Jul 22, 2009
  11. Briansol

    Briansol Admins Admin VIP

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    are you kidding? your payment is $83 a month?
     
  12. Battle Pope

    Battle Pope New Member

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    The major drawback to this whole scheme is that you'd have to go to Indiana to do it. :p
     
  13. jamesA

    jamesA Well known pissed off telephone guy VIP

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    You didn't buy a house that could be considered a house that needs flipping. Right now with this market I could sell it and still make 20k on it. 20k to me is quite a bit of money and at that point I'm debt free completely.

    My house payment with taxes was cheaper than your M... lol
     
  14. Briansol

    Briansol Admins Admin VIP

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    probably, but its not 83 a month, and thus, your match is way wrong.

    2-3k over 2-3 years is $83 and change. no one has an $83 mortgage. if you do, you should have jus bought the thing cash. lol
     
  15. jeffie7

    jeffie7 Wrong Whole! VIP

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    You sure about that? The first thing I had to do when I bought my house was gutted it. Right now in todays market there really isn't a so called "flip" house.
    The house you live in might have been a $120K house at one point, chances are over the last 10 years it went something like this.

    1990-2000 40K up to 55K Then from 2000-2006 it could have went from 55K up to 120K, now its back down to its (realistic price) that doesn't mean you'll see a jump again, at least not in a "flip it" time frame. Flipping houses was the craze since you could buy a house, clean it up, and have 10 buyers waving money even before seeing the house because they HAD to buy no matter what it looked like. Now.... good luck. Again, since you already own your house, you can fix it up and have zero risk of losing money since you need a place to live. So its a win win for you and hopefully you'll get the most for your money outta it. Just don't assume you can flip it like 5 years ago.
     
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