US real estate

Crazy, I am in the EXACT same boat, but I’m in St.Paul. Bought a 100 year old house with zero down payment on a 30 yr. fixed in September 2006. I joke that I was the last person in the US to get that kind of loan…If I could sell it breaking even, I would. Don’t get me wrong, I’ve really enjoyed restoring the place and watching it come back to life, I’ve had fun with it, but now it’s just an anchor on my career. I simply can’t afford to sell it, I would owe probably $30k at closing or walk away with a $30k loan to pay off with nothing to show for it.

At this point I’ve written off any thought of trying to make a profit on it, I just want more freedom back in my life. It’s tough to get solicited several times per month by potential employers out of state and have to have the relocation discussion right up front. Some employers provide relocation assistance in the form of moving expenses, but nobody’s entertaining real estate sales assistance as far as I know. It has pretty much come to the point where I’m frozen in my career…I really do like the Twin Cities, and if I could find a better opportunity here I would jump on it and be just fine staying, but so far I haven’t found much, but I could probably dig harder.

But hey, if anyone wants to buy my place it will be a block and a half away from the new Midway light rail station (kevlar vest additional).

Lew: My parents are in Phoenix. They have a '80’s built house. Aluminum wiring and the water plumbed through the concrete foundation. Insurace paid to fix the plumbing. They live with the fire hazard of aluminum wiring.

I’ve come in late on this conversation - and I have been lucky with real-estate to date.

Rented for 5 years in school and working, then…

First house, bought in 1996, $145K (Maryland, 3br, 2bath, 1700 sq. ft., 2 car gar., .8 acres) + a free .75 acre adjoining lot that was overlooked by the seller’s children (estate sale) and prompted my quick purchase! I gutted the entire house, renewing everything, putting about $100K into it. Sold it in 2007 for $399K. Also sold the adjoining lot in 2008 for $150K.

Second house, bought in 2007, valued at $750k, BOUGHT IT FOR $500K (a relo deal - I knew when they were starting to offload and threw in a lowball) (Maryland, 4br, 5 bath, 4000 sq. ft., 2 car gar., 2 acres). We took a beating like everyone else between 2007 and now - was revalued this year at refi for $615K, I’ve put about 10K in it, so still ahead of the game.

In 2010 we took advantage of the market, buying back the lot we sold (for far less) and buying a condo (another estate sale, a classy condo complex in Maryland) for about $60K under market value. I put $10K in renovations into the condo and it is leased as a revenue stream. We also might build on the lot and lease it out until the market comes back.

The market is still good in some areas, and took little beating in those areas (Maryland is one of them) over the last 3-4 years.

I was thinking of this thread lately. I’ve easily spent more than $10k / year in my first two years at my new home. I don’t think it will cool down for awhile either. Mind you, some of that was for aesthetics and remodeling, but a good deal was just maintenance or preventative (new roof, new driveway walls, lots of electrical re-wiring, adding insulation).

They are money pits dude. Especially as a designer. I always have a project in mind.

That’s true.

Real estate is what you make of it - buy low, improve with smarts, enjoy it and sell high when the market is right. When everyone else is selling, buy…and buy the worst house in a great neighborhood (location, location, location) then repeat and rinse!

I feel bad for those who bought into the interest-only craze or who got variable rate (balloon) mortgages - get a 30 (or better yet, a 15) year fixed rate mortgage and then make the equivalent of one extra payment a year, you’ll pay off a 30 year in 17 years!

15year fixed mortgages? Don’t think they have those hear in Canada. I think 10 is max. But with rates pretty stable over the last 10 years doesn’t make sense to do more than 5 fixed. I’d even say variable is better if you don’t mind having the stability and peace of mind of no fluctuation. Here in Toronto real estate has been increasing in price about 15-20% per year so really it paid off to get into the market when I did almost 15 years ago. Average single family home in Toronto now around $1M. I bought my first loft almost 15 years ago in an up and coming area. Sold it for double what I paid 5 years ago (rented it out while I lived abroad at a profit), and traded up to a place almost double the size 5 years ago for only 100k more than I sold the original one for. Now it’s probably already worth $3-400k more. Don’t plan on moving again until I can again double up in size/value or find something unique but 3000sf lofts are hard to come by.

Then again I know people who choose to live an hour outside the city where you can buy a 3000sf house for the price of a shoebox condo downtown.

R

I still can’t believe prices I see sometimes in the U.S. $200k for a house? Here that’s a 300sf condo! If you are lucky. In a crappy area. 10 years old.

R

It depends on where you live. $200k doesn’t buy you much even in Minneapolis downtown area, get out a ways and you’ll have better luck. Way out in the burbs, you’ve got 5 bedrooms for that. But try getting anything above a studio in California or NYC…

Agree with NURB. 200k won’t even buy you a condo in NJ. NC?..you can buy a nice place with land.

For 200k in Cali you can get an uncovered parking spot.

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.

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

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/realestateandhomes-detail/9505-Norchester-Cir_Tampa_FL_33647_M63944-04081?row=4

Salary with no dependents, for sure.

I can’t believe prices are that cheap.

R

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

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…

R