Hat tip to the reader who provided me with the Fiserv Home Price forecast data:
Metro Area / 2013-2014 Forecast / 2012 – 2017 Annualized Forecast
Atlantic City-Hammonton, NJ Metropolitan Statistical Area / 0.4% / 1.9%
Camden, NJ Metropolitan Division / 6.4% / 4.5%
Edison-New Brunswick, NJ Metropolitan Division / 2.1% / 2.6%
Newark-Union, NJ-PA Metropolitan Division / 5.9% / 4.1%
Ocean City, NJ Metropolitan Statistical Area / -0.3% / 2.1%
Trenton-Ewing, NJ Metropolitan Statistical Area / 7.5% / 6.5%
Vineland-Millville-Bridgeton, NJ Metropolitan Statistical Area / 6.6% / 5.3%
From UPI:
Home prices expected to rise at least 3.3 percent annually through 2017
Both home prices and home sales volumes increased steadily last year, making 2012 the first positive year for both prices and sales since the housing market crash, excluding gains induced by the home buyer tax credits in 2009 and 2010.
“Although some recent real estate activity has been speculative, it seems as if buyers have more realistic expectations about housing market returns after having lived through the largest housing market crash in U.S. history”
“2012 was the first year since 1997 that the housing market has resembled something recognizable as normal. For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology,” said David Stiff, chief economist, Fiserv. “Back in 1997, housing prices grew 3 percent, just below the 5 percent long-term average rate of appreciation. From 1998 to 2006, prices appreciated at levels above 5 percent, with double-digit price increases in many of those years. Then, after 2006, the market collapsed as euphoria turned to panic. It took until the end of 2011 before housing markets finally started to stabilize. The latest Case-Shiller results show a return to a historically normal pace of price appreciation in the last year.”
The recovery in home prices has been solid and broad-based. At the end of the 2012 third quarter, prices were rising in approximately 62 percent of all U.S. metro areas, compared to 12.5 percent in the same period a year ago. Average U.S. home prices increased 3.6 percent from the third quarter of 2011 to the comparable period of 2012. Many of the metro areas that suffered the most severe declines during the housing market crash enjoyed the highest price increases in that period.
Fiserv Case-Shiller projects that by the end of 2013, home prices will be rising in nearly every metro area in the U.S. Some markets may experience short-term double-digit price jumps that could be partially reversed by price declines as large tranches of bank-owned inventory (REO) are liquidated. In other markets, price appreciation will slowly return to normal rates as home buyers regain confidence that the market has found its footing.
…
The Fiserv Case-Shiller Indexes, which include data covering thousands of zip codes, counties, metro areas and state markets, are owned and generated by Fiserv. The historical and forecast home price trend information in this report is calculated with the Fiserv proprietary Case-Shiller indexes, supplemented with data from the FHFA. The historical home price trends highlighted in this release are for the 12-month period that ended September 30, 2012. One-year forecasts are for the 12 months ending on September 30, 2013. The Fiserv Case-Shiller home price forecasts are produced by Fiserv and Moody’s Analytics.
From the IB Times:
US Housing Market: Following 15 Years Of Boom-And-Bust, Is It Getting Back To Normal?
The U.S. housing market has been in stabilization mode for only the past year or so following an eight-year run-up to the peak of the housing bubble in 2006 followed by what most homeowners who bought in that period know: a bursting of a massive speculative bubble that sent the nation into recession and millions of homebuyers into foreclosure.
But, according to a recent analysis of more than 380 U.S. housing markets, home prices have in recent months begun to resemble “something recognizable as normal,” David Stiff, chief economist of Fiserv, Inc., a global provider of financial services technology, said. “For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology.”
But the worst appears to be over — at least for this latest boom-and-bust cycle — and home prices are expected to grow 0.6 percent between the third quarter of last year to the third quarter 2013, according to an analysis by Fiserv based on the Case-Shiller Indexes and data from the Federal Housing Finance Agency. This growth is expected to pick up afterward, by 3.7 percent in the following 12-month period and 3.3 percent on average between 2012 and 2017.
By comparison, from 1998 to 2006, home prices grew on average about 5 percent every year. Housing starts are at a historic low as bank-owned inventories remain high — something that also weighs on house prices. In essence, houses are cheaper now than they were in the run-up to the last speculative bubble, so it will take longer before homes reach double-digit appreciations that were a symptom of the last housing market collapse, according to Fiserv.
From HousingWire:
Clear Capital: Momentum continues to build for housing recovery
February home prices rose 6.1% nationwide year-over-year, according to data from Clear Capital.
Although current home prices have improved significantly over the last year, gains are expected to moderate over the short term, since this rate of growth is measured against lows in 2012.
“Consumer confidence continues to be vital to a broader housing recovery, and national quarterly home prices expanding 1% in the midst of winter is confirmation the recovery has legs,” said Alex Villacorta, director of research and analytics at Clear Capital.
Villacorta added, “While 1% is weaker in comparison to more recent rates of quarterly growth, the positive trend continues to support homebuyer confidence and is on par with the new normal.”
National and regional home price trends remained relatively unchanged in February. Quarterly growth nationwide was 1%.
Good Morning New Jersey
You sure the kids are really strapped for cash?
From the WSJ:
Young Adults Retreat From Piling Up Debt
Young people are racking up larger amounts of student debt than ever before, but fresh data suggest they are becoming warier of borrowing in general: Total debt among young adults dropped in the last decade to the lowest level in 15 years.
A typical young U.S. household—defined as one led by someone under age 35—had $15,000 in total debt in 2010, down from $18,000 in 2001 and the lowest since 1995, according to a recent Pew Research Center report and government data. Total debt includes mortgage loans, credit cards, auto lending, student loans and other consumer borrowing.
In addition, fewer young adults carried credit-card balances and 22% didn’t have any debt at all in 2010—the most since government tracking began in 1983.
grim: credit lines are not being extended; you can’t pile up debt if they don’t let you borrow……you really think these imbeciles can self-regulate?
Young folks are mooching off Mom and Dad, splitting rent with GF or BF or have roomates in a cheap rental. Just like I did many years ago.
Too many idiot under 35 year old single people bought homes from 2003 to 2008 which was a foolish mistake.
chicagofinance says:
March 5, 2013 at 8:17 am
grim: credit lines are not being extended; you can’t pile up debt if they don’t let you borrow……you really think these imbeciles can self-regulate?
BTW my offer to buy home was accepted last night. I will soon be a second home-owner.
Grim, I am a true value investor. Wait for the biggest RE correction since depression and then wait for Sandy to give death blow before I jump in.
Mitigation strategy is only buy places under 350K under max flood payout value with reasonable flood insurance
When are you buying??
I think next few months is time to buy. This one I can close and have ready for summer, which means I am overpaying somewhat. But I think the real time to buy for super bargains are folks selling towards end of summer damaged homes they were unable to fix, and headed towards another storm season.
Those houses, I would jump on in October/November. Mitigate and Flood Mediate, wait till after January and do full renovation and put on market for summer 2014.
When are you buying?
Looking at a Sandy-damaged commercial property down the shore with good potential to convert to a nice 3-4 unit rental. Sticking point is breakaways since it’s got a block walls and the current first floor is about 2 feet above grade. Ideal would have been the 4 units (bottom left right, upper left right). If we can’t build the first floor units, or need to demolish the existing first floor structure (the second floor is framed) the deal doesn’t make sense.
Careful with those shore properties, if it’s a nonconforming use you may not be able to gut and rebuild:
http://www.law.com/jsp/nj/PubArticleNJ.jsp?id=1202590947124&slreturn=20130205084548
You also have issue commercial property has high tax rates, you need to get town to say it is ok to covert. Other issue if building inspectors and permits are involved you are screwed.
What investors are buying near me are flood damaged homes from the folks with no flood insurance, no mortgages. Town has no record of damage. You can gut it and redo inside on downlow and rent it out.
FEMA/NFIP also has something called ICC, increased cost of compliance. Any home with Flood damaged in excess of 50% is tagged ICC, meaning FEMA will pay owner up to 30K to raise, if not they risk higher flood prems. My neighbors house just got tagged ICI. She pays 3k flood, they told her if she does not raise when rates reset in 2016 they may jack her rates to 9k.
Meanwhile I got my flood insurance annual notice on my house yesterday. My house is listed as No Flood Claims Ever, Since I had no mortgage or Flood insurance my house is as pure as Snow White.
Folks buying old folks houses are best. Just renovated no permits, go get flood insurance after renovation and take lots of pictures.
Plus 3 strikes you are out in flood insurance. My neighbor with ICI issues had damage in Irene, she is at strike 2. She gets one more flood she is out of NFIP unless she raises house. My house got three full strikes to go.
grim says:
March 5, 2013 at 8:41 am
When are you buying?
Looking at a Sandy-damaged commercial property down the shore with good potential to convert to a nice 3-4 unit rental. Sticking point is breakaways since it’s got a block walls and the current first floor is about 2 feet above grade. Ideal would have been the 4 units (bottom left right, upper left right). If we can’t build the first floor units, or need to demolish the existing first floor structure (the second floor is framed) the deal doesn’t make sense
By comparison, from 1998 to 2006, home prices grew on average about 5 percent every year.
So 1998 was time to buy and 2006 was time to sell. Amazing information.
Grim,
Will there be any blogger rental discounts? We promise not to trash the place.
10 – Of course there are zoning changes associated, it would be idiocy to attempt conversion like this without permitting and approvals.
9 – Current use as retail located at the edge of a residential neighborhood is probably grandfathered non-conforming, so interesting, that may be a motivating factor for the sale. 4 unit residential is non-conforming as well, but would put the property back in line with the character of the neighborhood at least. It’s a fight, and a long-shot, but I won’t pull the trigger until we have zoning approvals. I’m not interested in a gamble.
DJIA Dow Jones just hit an ALL TIME HIGH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
You can rent my summer place. I will let you on my Private Beach. But please shower first I dont want you getting my ocean dirty.
Libtard at home says:
March 5, 2013 at 9:13 am
Grim,
Will there be any blogger rental discounts? We promise not to trash the place.
Chifi My MBIA and BPOP bonds are on fire this week!!!!
Is it time to sell?
I will believe a RE turn around once I learn Clot has put his used house costume.
Newest CoreLogic report has NJ home prices going positive year over year in January, woo hoo!
I dont believe in an RE turnaround.
However, right now a combination of low rates to borrow and fact folks are sitting on fat stacks of cash with stocks and bonds slightly over valued means the choice we have left is double down in stocks and bonds, leave it at zero in cash or buy Real Estate. Or maybe go all Walter White and buy a Car Wash, Nail Salon and Lazer Tag place.
ronald says:
March 5, 2013 at 9:41 am
I will believe a RE turn around once I learn Clot has put his used house costume.
So bottom line anyone who bought a house in 2009, 2010, 2011, 2012 trying to catch a falling knife got cut bad, I mean cut like first night in rikers island cut.
Think about this, stocks are up 125% since March 2009. Home values are pretty much flat since March 2009. So if one bought a 600k home in March 2009 with 200K down they could have bought same home same price in March 2013 instead their 200K would have grown to 450K turning their 400K mortgage into a 150K mortgage.
Even better rates are lower than 2009 so you could afford instead of a 30 year do a ten year.
The bid I lost last summer on the house, I got same house basically now 10% off due to Sandy, But my investments rose 10% in same time frame.
Think about this, stocks are up 125% since March 2009. Home values are pretty much flat since March 2009. So if one bought a 600k home in March 2009 with 200K down they could have bought same home same price in March 2013 instead their 200K would have grown to 450K turning their 400K mortgage into a 150K mortgage.
Most folks I know would view plowing $200k worth of DP money into equities on the precipice of a house purchase as an incredibly risky move. I’m talking primarily about FT buyers , but many Second-time buyers as well.
Secondly, assuming the alternative is renting a $600,000 house? That’s going to cost you around $3,500 a month in these parts, which comes to $126,000 in rent over the 3 years since 2009.
You can’t make the assumption that the alternative to buying requires no additional cash outlay, you must pay for housing. Spare me the argument about living in a 200 square foot rent controlled apartment for $800 a month.
I’m not saying buying was the best course of action, but if you are making a comparison, you need to take into account the realistic alternatives.
I saw JJ in 2009 to 2012 living in a cardboard box below the Washington Bridge while investing in Equities.
Name of issuer Del Frisco’s Restaurant Group, Inc.
Industry Consumer Cyclicals
Security type Common Stock
Expected size of offering 4,750,000 Shares
Expected price range $17.80 as of close on March 1, 2013
bull mkt when steak houses do IPOs
People who but 600K houses never rent 600K houses. They rent cheap places.
Stocks historically have a higher return than housing. The greater risk is selling stocks to buy a house than vice versa.
Renting would be cash positive. My buddy who sold his place in Spring 2012 is up already 200K. His rent was only 40k in same period. He got paid 160K to rent.
JJ [14];
Dollar denominated, Nach. The Bernak and Yellen both said this weekend the printing presses stay on. Same reason I took the plunge into real estate last year. Inflation is <2.0%, if you don't count food, gas, heat or shelter. Who needs those things?
Grim by the way I am up 200K since xmas in stocks.
No one in the history of the entire world has lost money buying the DJIA. One could have dollar cost averaged into it their entire lifetime and their parents lifetime and 100% of the time made money.
Imagine if Mom and Dad just put 10K in the DJIA and said reinvest all dividends how much you would have today, a fortune.
Dont you find that amazing
– Dow Hits all time High
– NJ real estate prices turn positive
– (and the best news) New Jimi Hendrix album is out
http://www.cnn.com/2013/03/04/showbiz/music/jimi-hendrix-new-album-people-hell-angels/index.html?hpt=hp_c3
http://www.amazon.com/People-Hell-Angels-Jimi-Hendrix/dp/B00AA0TZTW/ref=sr_1_2?ie=UTF8&qid=1362497844&sr=8-2&keywords=people+hell+and+angels
All is right with the world
Rent a shack, buy a mansion? There is so much cognitive dissonance in that I don’t know how to interpret it.
Yeah, I’m sure, but there probably a whole lot less people in that category than you make out to be.
Why?
Folks with kids, generally lower priced rentals are going to be in worse school districts. Rentals in districts they want to move to, to get their kids into those schools, tend to be rarer and higher priced. Renters generally have very little choice in these neighborhoods.
If you thought purchase inventory was low, I don’t know what you’d do in the rental market.
Take Wyckoff for example,
4 rentals in town that would be acceptable to most people, there are 2 others which are trash.
Lowest is a 2br/1ba apartment in town for $2,100/mo, which in all honesty isn’t too bad.
However, moving into the SFH territory, if you need at least 3 br, your minimum point of entry is $2,550/mo, which gets you a pretty ugly, run down rental.
$2,800 gets you a little nicer 4br, that is stuck in 1959, no updates. It’s not horrible, OK for a rental.
Only one “nice” property on, $3,800/mo for a 3br split level in a style that is pretty common for the neighborhood. Clean, tasteful, updated, presentable, etc etc. This would be the house that most of my typical clients would want to rent, if not buy, but sure as hell not for $3,800 a month.
Service at 56 all is well
Honestly, just looking back at a few of the high dollar rentals in BC and Haughty EC, I don’t know what some of these idiots are doing renting some of these junk heaps for $3k+ a month.
Did anyone trademark idiot renter yet? ’cause I found some.
Superstar in here that actually got into what looks like a rental bidding war, winning a EC townhouse in a marginal development for $3,500 a month.
Got a big ranch in SO that rented at $3,500 as well. Huh? South Orange? And you guys will love this disclaimer:
“First $150 in repairs paid for by tenant”
The cream though, is Millburn, $5,900 a month for a completely boring raised ranch on Hartshorn. Look, Hartshorn is a beautiful area, but $5,900 a month? What the hell?
My favorite Hendrix Album is not a Hendrix Album
I have a copy of Otis Redding Live at the Wiskey A Go Go.
We all know the Wiskey A Go Go was the bar on Hollywood stip that was mecca for 60s pops stars.
Well Otis played there one night and Hendix and Jim Morrision are HUGE Otis fans. In the album Hendris and Morrission, join him on stage. You hear Jim Slurring his words as he is dunk and Hendrix blasting. The do an amazing version of All Around the Watch Tower
Brian says:
March 5, 2013 at 10:44 am
– Dow Hits all time High
– NJ real estate prices turn positive
– (and the best news) New Jimi Hendrix album is out
My Dad did that. Then when he was laid off in 2008 he put everything into municipal bonds and is living off the interest in his new house in FL. SS, severance pay and his old pension are just gravy.
26.JJ says:
March 5, 2013 at 10:35 am
Grim by the way I am up 200K since xmas in stocks.
No one in the history of the entire world has lost money buying the DJIA. One could have dollar cost averaged into it their entire lifetime and their parents lifetime and 100% of the time made money.
Imagine if Mom and Dad just put 10K in the DJIA and said reinvest all dividends how much you would have today, a fortune.
Dont you find that amazing
Beatiful cape in morris plains rented out at $3,900 a month. You are talking an easy $150k to stay there 3 years, in a cape.
Better than the cape in Madison that rented for $5,300 a month, another rental bidding war. Completely mind boggling. $200k+ to stay here for 3 years, a cape, a rental.
$4000 a month to rent at 40 Park in Morristown? At that point I’d just go to Manhattan.
Damn, looking at local rentals, if I rented my house out tomorrow I’d be cash flow positive to the tune of around $600 a month.
Hendrix and the Stones
http://www.youtube.com/watch?v=Rqqaw9iN0Js
Grim (34):
That is crazy stuff. Those people might as well buy a house if they are shelling out $3900/month.
Grim [30];
Check out MLS 2985222.
Not far off the mark from a short-term, strictly dollars and cents per month rent v. own calculation. Never been inside, though. Wasn’t up long, must have went quickly. Wasn’t pulled, either; moving trucks have appeared.
Car Buyers Take Out Bigger Loans, Set New Record. New analysis from Experian Automotive shows the average new car loan in the fourth quarter of last year was $26,691 and stretched out over an average of 65 months. Pop The cork.
38 – Rented $3,400/mo
Owner paid $680k for that in 2006? Ouch.
the fact that real estate prices have stabilized and perhaps creeping upwards is an evidence of a bubble. Consumption and spending increases while income is decreasing. This won’t end well.
DJIA and Homeless record high–rejoice! (preferably at a nearby beach rental)
http://www.nydailynews.com/new-york/nyc-homeless-population-hits-record-article-1.1279435
What a bastard…..
http://www.deathandtaxesmag.com/195134/prince-smashed-someone-elses-1961-epiphone-on-fallon/
Car loans are longer due to rates. I took out a 72 month loan at zero percent after Sandy.
And yes folks rent shacks between houses.
Brian I admire your Dad. I hope in December 2010 and January 2011 he bought a lot more munis when Whitney was talking smack.
Munis have been great since 2006. First Ben raised rates 2006-2008 good time to lock in long, then 2009-2012 a lot of spooky stuff about munis kept rates high next to treasuries. Now they have normalized.
Someone
Someone who bought a ten year muni on January 1 2006 and took interest to buy more munis every January 1st is sitting on a nice fat stream of tax free cash risk free.
Only problem is the parade of free cash is over. They need a new place to put their cash
Income is not as important as confidence. Folks checking out 401k balances, retail brokerage balances and seeing rising home values are more important than a lousy raise.
For instance a average 50 year old had 10x his income in investments. Lets say he makes and average of 200K. A 5% raise nets him and extra 6K after taxes.
An extra 5% on his investments nets him 100K and it is at 20% instead of 40% tax rate.
maybe buyer says:
March 5, 2013 at 12:01 pm
the fact that real estate prices have stabilized and perhaps creeping upwards is an evidence of a bubble. Consumption and spending increases while income is decreasing. This won’t end well.
For instance, let’s say the moon is made of cheese.
Grim [40];
Bubble purchase price might explain why its renting. Like I said, compared to a market value purchase at 2012 prices, that monthly nut is not far off at all. Lot of equity there — Public records show a purchase mortgage balance was $380k; and 2007 refi balance of $400k.
Also fact that you cant write off most losses in Real Estate. If you have positive cash flow based on low mortgage amount and you cant write off loss might as well just rent it to you die.
Anon E. Moose says:
March 5, 2013 at 12:50 pm
Grim [40];
Bubble purchase price might explain why its renting. Like I said, compared to a market value purchase at 2012 prices, that monthly nut is not far off at all. Lot of equity there — Public records show a purchase mortgage balance was $380k; and 2007 refi balance of $400k.
Grim that was the argument I used with wife when she wanted to rent in Madison rather than stay in BC. finally won with you can live in randolph be on the green in morristown in 10 minutes, and in Madison in 15-20 renting from the bank for thirty years and be a grand richer each month (all PITI). Not that I wanted to catch a falling knife but seriously those rents in tawny neighborhoods are ridiculous.
Pain, what is your take on randolph?
Decent folks middle to upper middle some lower, plenty of trails to mountain bike hike, taxes are reasonable by NJ standards. Some crap parts of town (not Garfield Crappy, think elmwood park) but overall your typical Northern jersey suburb.
Oh and Phoenix just about everyone lives on a main road is the running joke in town becasue there is so much open space. Shongum, Mt Freedom and anywhere near Mendham tend to be the nicer parts. north of rt 10 west are the crappy neighborhoods and parts of Ironia
Krugman vs Scarborough
http://tv.msnbc.com/2013/03/05/watch-joe-scarborough-and-paul-krugman-face-off-over-debt/
Know several people who live in Randolph. The newer developments are built on the slopes. You’re either at the bottom of the slope – watch out basement – here comes water. Or, top of the slope. Whee, we can ski downhill. Lots of rocks to deal with. It is more than the typical average NJ town, though.
14 – http://www.zerohedge.com/news/2013-03-05/last-time-dow-was-here
“A 5% raise nets him and extra 6K after taxes. An extra 5% on his investments nets him 100K”
Actually 5% on investments nets him zero, unless he sells. Stocks in the market are not money.
A 401K is also not money, until retirement (if one lives long enough) and is subject to fees and unknown tax laws that will exist years into the future.
I did not mean all 401k.
Anyhow going into contract. Two questions. What is a good rate on a mortgage, either 15 or 30 year? Also what is average cost of a lawyer for a condo?
I think I can get 2.564 on a 15. Turn out rate is same on a conforming vacation home as it is a conforming primary home. But I have to pay and extra 1.2 point which makes APR slightly higher. 30 year is 3.286.
Statler Waldorf says:
March 5, 2013 at 2:22 pm
“A 5% raise nets him and extra 6K after taxes. An extra 5% on his investments nets him 100K”
Actually 5% on investments nets him zero, unless he sells. Stocks in the market are not money.
A 401K is also not money, until retirement (if one lives long enough) and is subject to fees and unknown tax laws that will exist years into the future.
Just a question directed to no one in particular…….
Who takes a taxi to a Burger King?
Drunks
chicagofinance says:
March 5, 2013 at 2:50 pm
Just a question directed to no one in particular…….
Who takes a taxi to a Burger King?
In Newark. Part of the general welfare benefits is free Taxi rides.
xolepa [60];
In Newark. Part of the general welfare benefits is free Taxi rides.
Presumably we’re to believe that the recipients of benefits might be stigmatized by having to ride mass transit — like the hedgies and IBers do. {barf}
I love govt. I applied for SBA loan. Submitted all docs. They tell me ten days before they assign someone to look at it. Then a few more days for them to get around to contacting me.
“Did anyone trademark idiot renter yet? ’cause I found some.”
It’s what I was trying to tell you the other day.
My multi is worth $425K. I brings in $4450 per month and tenants pay heat. It’s pretty much 1950s with minimal cheaply done updates.
This is just plumb crazy.
You could borrow the 20% downpayment from mom and my place would spin off $1,700 in cash per month while the tenants pay the 30 year mortgage, hazard and prop taxes. Pay mom back in full in 6 years and it still allows for almost $250 per month for maintenance.
There’s definitely a rental bubble! Or at least a bubble in rental stupidity. My rental listing agent (renters pay finders fee) calls my place his ATM.
I could buy four two familys down in Long Beach for 440K and pull in 16K a month rent.
Place I am buying for 305k, I am approved for 100K HELOC at 1.99% then a 65K SBA at 1.68%, and I am putting down 140K cash. Monthly mortgage payment should be around 300 bucks. Also paying zero bank fees.
I want to buy a trade up still or third home so wanted to keep this cheap. The HELOC I got three years to pay off before rates flip on me. Just use “bond run-off” to do that.
40 E Pine St
Long Beach, NY 11561
$110,000
Colonial Rooms: 11
Sec/Area: Bedrooms: 5
Cross St: Long Beach Blvd Baths Full: 2
2 Family Det Baths Half: 0
My multi is worth $425K. I brings in $4450 per month and tenants pay heat. It’s pretty much 1950s with minimal cheaply done updates.
Trouble is $1,700 is not a game changer. My Cousin owns 300 rental properties. She and her husband both work full time. She as an Engineer and he as a Financial Planner. He retired recently after 30 years with a full pension and is on to a second full time career.
They have legacy money. Goal is to leave 300-500 houses fully paid off to kids. Also both sets of parents are still alive so they also have inheritance money coming in.
My old GF’s Mom also had a few hundred houses. My cousin used to be such a player that in the salad days of 2009-2011 she would fly to bank auctions in AZ, Vegas, Portland and buy 2-3 every weekend.
Libtard in the City says:
March 5, 2013 at 4:18 pm
“Did anyone trademark idiot renter yet? ’cause I found some.”
It’s what I was trying to tell you the other day.
My multi is worth $425K. I brings in $4450 per month and tenants pay heat. It’s pretty much 1950s with minimal cheaply done updates.
This is just plumb crazy.
You could borrow the 20% downpayment from mom and my place would spin off $1,700 in cash per month while the tenants pay the 30 year mortgage, hazard and prop taxes. Pay mom back in full in 6 years and it still allows for almost $250 per month for maintenance.
There’s definitely a rental bubble! Or at least a bubble in rental stupidity. My rental listing agent (renters pay finders fee) calls my place his ATM.
Jj
305 minus 145 is 165 at 3percent for 30 is 700 dollars a month add your 100k
Heloc plus 65k sba. No way you are paying 300 bucks a month
RIP Hugo Chavez
(CNN) — Venezuelan President Hugo Chavez has died, Vice President Nicolas Maduro said Tuesday.
In a national broadcast, Maduro said Chavez died Tuesday at 4:25 p.m.
Maduro teared up as he announced the news. Later, he issued a blistering denunciation of the United States, and George Bush in particular, for causing Chavez’ death.
Jay Carney issued a statement of condolence, and further added that the Obama Administration, for its part, had no role in the death of Chavez.
305 Purchase Price
Down payment is 140k.
HELOC is 1.99% no fees, teaser rate locked for first two years then Prime plus zero
SBA Loan approved for 65K is 1.68% rate, no fees.
HELOC is IO loan.
SBA is 30 year loan.
HELOC is 166 a month,
Fixed rate 65K mortgage for 30 year is $229.99
Total Mortgage payment is $395.99
Plan is to knock off Heloc in three years. I can live with a $229.99 mortgage. My first mortgage was $159 a month so I guess inflation.
yome says:
March 5, 2013 at 4:43 pm
Jj
305 minus 145 is 165 at 3percent for 30 is 700 dollars a month add your 100k
Heloc plus 65k sba. No way you are paying 300 bucks a month
good to see this site is still as active as the last time I checked in, back in 2008 I believe.
I see some familiar names clotpol, chifi, of course grim. What happened to BC Bob?
Jj
I see what you did. Nice!
Due tot he recent media frenzy about housing recovery, all recent westchester listings are coming out with 2007 prices. It’s unreal and ridiculous. Sellers believe can get any price. Little inventory and most of it delusionally priced.
Check the $800k price range someone said you will find quality there…it is only another 100k away…
This newly listed beauty “First Time Offered” is priced at $819,000
http://www.realtor.com/realestateandhomes-detail/9-Bowtell-Ct_Middletown_NJ_07748_M61505-72713?source=web
Lucky for me I quit drinking whiskey.
Lucky for me I keep drinking whiskey.
Vigoda even planted Hugo Chavez.
Impressive.
I see clot hasn’t changed.
no credit bubble in sight
http://finance.yahoo.com/news/fastfunds-financial-corporation-acquires-exclusive-130000087.html
FastFunds Financial Corporation Acquires Exclusive Mortgage Servicing Rights for Innovative New Mortgage Product Requiring No Credit Verification
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