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Re: US real estate

Postby FH13 » July 14th, 2015, 11:52 am


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I'm currently researching condos for my mother in law in the Long Beach/Huntington Beach area in California and they are about 250K-350K in a decent area and less than 1K square feet. I swear they were 50K less last year.

Talking about home improvements. We're replacing eight 3' x 6' double hung windows in our home and after about 6 quotes I realized what a scam it is. I had estimates from 6K - 8K (after 1/2 off and free installation and other fake promotions) with a couple of companies willing to come down 1K-2K to match prices. It was also interesting to see how each of the salesmen pitched their product and turned their perceived weaknesses into advantages.

Re: US real estate

Postby yo » July 14th, 2015, 12:46 pm

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Good to know. All new windows is on my long term project list. Going to try to make it a few more years though.

Re: US real estate

Postby Jboogie941 » July 30th, 2015, 12:11 pm


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I have bought in flipped 3 properties here in Florida. Back in 2008-2009, there were amazing deals to be had! I bought my first property a 3 bedroom, 2 bath, 2 car garage home( 1600sqft) with a 1/4 acre lot, built in 2006 for $45k. Two years later I sold it for 90k. My second flip, I purchased a 1bed, 1bath loft style condo (700sqft) for $25k. I Sold it for more than double the price, same as the third.

The real estate market in Florida is relatively cheap still and back on the rise since the 2008 housing collapse. However, for
200k here you can easily find a nice size pool home. It may need some work, but nice bang for your buck!

http://www.realtor.com/realestateandhom ... 4081?row=4

Re: US real estate

Postby FluffyData » August 1st, 2015, 4:03 pm


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Re: US real estate

Postby NURB » August 4th, 2015, 10:08 pm

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Salary with no dependents, for sure.
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Re: US real estate

Postby rkuchinsky » August 5th, 2015, 12:08 am

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I can't believe prices are that cheap.

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Re: US real estate

Postby Jboogie941 » August 5th, 2015, 8:23 am


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FluffyData's chart looks pretty accurate. Yes Richard, its pretty inexpensive, the homes are selling quickly. The home link I posted is already pending...

Re: US real estate

Postby rkuchinsky » August 5th, 2015, 10:50 am

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I think I know why it is off...they are using median, not mean. There is no way SF is twice the price of NYC and NYC average home price is $388k. So since I would assume there would be very little salary differences for the same job in different countries/states I'm guess this is why everyone lives in a McMansion in the US? Seems odd that you can buy a median value home on the salary of a McDonalds job...

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Re: US real estate

Postby yo » August 5th, 2015, 12:08 pm

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NURB wrote:Salary with no dependents, for sure.


That is what I was thinking as well.

Re: US real estate

Postby FluffyData » August 5th, 2015, 12:36 pm


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I meant to paste in some context and source article- Laziness and haste on my part- Apologies.

HSH: http://www.hsh.com/finance/mortgage/sal ... ities.html

Zillow Price-to-Income Ratios: http://www.zillow.com/research/comparin ... kets-2871/

San Francisco is a bit of a shocker...

Re: US real estate

Postby FH13 » August 5th, 2015, 2:01 pm


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$434K in LA would get you a small 2 bed 1 bath. If you want 3 bed 2 bath and/or a nicer area then you'll be in the 550K-750K range easily.
The RE market is insane. We bought a house about 2 years ago and it already went up $150K, not counting improvements we have already made. Back then houses were getting multiple offers (10+) and a lot of them were being bought cash. Before we bought we kept seeing home prices rising every month because of all the quick flipping going on.

Re: US real estate

Postby NURB » August 5th, 2015, 2:15 pm

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That's the most misleading chart I've ever seen.

Take Minneapolis for example (just because I live here).

A salary of $47105 for the year, filing married with 3 exemptions (which means you count your spouse and probably a child), nets you $818.93/ pay check. That's WITHOUT any additional deductions like 401K, Insurance, etc.

Let's also assume a 4% Interest rate financing just under 80% of the purchase price of 209400. Your payments with tax, insurance, etc. would be about $1100/month. That's 67% of your TAKE HOME PAY. Putting food on the table, keeping the lights on, and clothes on the kid become a pretty tough ask at that point.

"Ok, your spouse should work, too."

Awesome. But if he/she is also making 47105/year, he/she is probably working full time, which means the kid has to go to day care. And there goes another $1100/month. So you're right back where you started.

The American Dream of investing in a home in order to make money is a sham.
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Re: US real estate

Postby NURB » August 5th, 2015, 2:18 pm

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And all those "salary amounts" listed, are based on the GROSS monthly you need to have to hit that house amount. They're "allowed" to use 41% (!) of your GROSS, in order to qualify you. Which is absurd. That sort of thinking (among other things) got us into the mess in 2008.
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Those who define design as knowing how to use Illustrator will be condemned to using Illustrator their entire career. - @monteiro

Re: US real estate

Postby rkuchinsky » August 5th, 2015, 5:11 pm

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Ok, but still, how is it that prices are so cheap in one place, yet so much in another with all else being relatively equal (Not talking about foreign countries with vastly different taxes structures or public services).

The same job would be relatively the same pay across the country I would think, adjusted slightly for cost of living (ie. a Jr. Designer in Miami might make $30K, while in SF maybe $35 - just as made up numbers).

How can there be such a variance in price to income?

Here in Toronto average sale prices are easily above $500K. In Vancouver I think even more. You could probably find a double underground parking spot for the price listed for some of those median homes here.

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Re: US real estate

Postby yo » August 5th, 2015, 6:10 pm

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'merica dude.

Take Cincinnati. I know some guys who work for large corporations based there (you can figure it out) who roll deep, huge house (because they cost a dollar), fast cars, big vacations.... but the rub is you are living in Cincinnati where the thing people brag about is watery chili (skyline chili, everyone from Cincinnati will try to convince you it is good, and maybe it is compared to the rest of Cincinnati). Basically supply outstrips demand, so prices are low.

Now go to SF where consignment of your first born is required for a one bedroom. Demand far outstrips supply and there is all that Google money and 50 year mortgages... but you get to live in one of the top 3 cities in the United States (NY, LA, SF in case that was was in question BTW)

:-)

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