From the Wall Street Journal:
In a Slowing Housing Market, Sellers Ask: Why List a Home When You Can Collect Rent?
After Mark and Melissa Reichert moved from California to Dallas, the couple put their home in the Los Angeles suburbs up for sale this summer. Yet even after they cut the asking price by $10,000, there was hardly any interest.
Instead, they decided to rent out the house. Their monthly payout now covers their ownership costs. If the housing market remains sluggish, they would likely keep the home as a rental once the current two-year lease expires, Mr. Reichert said.
“There’s just not serious buyers out there,” he said.
Home sellers across the U.S., discouraged by the slowing housing market and able to capitalize on the soaring home-rental market, are increasingly opting to hold on to their houses and lease them out instead.
Higher mortgage-interest rates have reduced home-buying demand, and homes are sitting on the market for longer. Home prices have slid from their springtime peaks in some markets, and some sellers are reluctant to lower their asking prices.
And with many prospective home buyers priced out of the market, rents for single-family homes have soared in recent years.
…
The number of home listings that were delisted without going under contract rose 58% in August from a year earlier, though the overall number remains a small portion of total listings, according to brokerage HouseCanary.
First
Also from the WSJ:
Climbing Housing Costs Could Prop Up Inflation for a While
Rents and other shelter costs are emerging as a major driver of overall consumer inflation, keeping it high at a time when many other sources are starting to ease.
Economists expect housing inflation to strengthen further before cooling off in the coming months, but are unsure of when relief will appear. This creates another challenge for the Federal Reserve as it raises interest rates to reduce price pressures.
Overall annual inflation eased to 8.3% in August from 8.5% in July, according to the Labor Department’s consumer-price index. That reflected declines from the month before in prices for items such as gasoline, airfares and used cars, and slower price increases in other categories, such as groceries.
Housing was an outlier. Not only are shelter costs rising, they are climbing at an accelerating pace, accounting for a growing share of the overall inflation rate—about 25% of August’s rate, up from about 20% in February.
Joyce, previous thread about Murphy’s hair. Since he started his drive for President I noticed that he started to let it grow a bit longer and part it different than he had. Whether he is doing additional enhancements, not sure, but I be it is for his presidential run.
Real estate is a long-term game. Look how much money you made on this property buying at peak in a market that was driven by bad loans.
Libturd says:
September 19, 2022 at 10:58 pm
After we closed, I talked with my realtor and we simply could not believe people are paying this much. The buyer is so likely to jingle mail, it’s nearly an absolute. There is no way to make the math make sense. Even owner occupied.
Chi – from yesterday Sherriff increasing patrols. There were more catalytic converters stolen last night nearby. An Audi Q7 was stolen 2 days ago, there was a report of a home invasion two days ago supposedly 4 people in ski masks broke in stole keys and cars etc.
Drove through Paterson on Sunday afternoon, two quads tearing around like crazy. Going down the wrong side of double yellow, driving head on at cars, cutting people off, dirty looks and taunting drivers, complete nonsense. I half expected someone to plow into one in defense.
Chi – from FB…Colt’s Neck last night.
https://tinyurl.com/yjx39yaj
Anthony works in the grocery store
Savin’ his pennies for someday
Mama Leone left a note on the door
She said, “Sonny, move out to the country”
Workin’ too hard can give you
A heart attack (ack, ack, ack, ack, ack)
You oughta know by now (oughta know)
Who needs a house out in Hackensack
Is that what you get for your money?
It seems such a waste of time
If that’s what it’s all about
Mama if that’s movin’ up
Then I’m movin’ out
I’m movin’ out
Huge amount of new “luxury” high rises going up in Hackensack..
Here is a list.
https://downtownhackensack.org/news/redevelopment-projects/
Colts Neck thief caught. Asked by police why do you steal in Colts Neck.
Robber replies: Cause that’s where the money is.
Grim – NYC cracked down on the quads and dirt bikers.. Mayor Eric Adams even waved a flag at the event when they crushed them. I doubt Deblasio would have ever done that.
https://www.youtube.com/watch?v=AP2toGilTMk
Phoenix – Break into the wrong house there and you might get caught by a Russian Oligarch and his security or fall into Bruce Springsteen’s pigsty and get eaten.
Mayor Eric Adams even waved a flag at the event when they crushed them.
A publicity stunt wasting money and destroying government owned property that could have and should have been auctioned off or, if having been found to be stolen, returned to their rightful owners.
A total disregard and theft of taxpayer money.
Phoenix – Break into the wrong house there and you might get caught by a Russian Oligarch and his security or fall into Bruce Springsteen’s pigsty and get eaten.
Or the thief will get injured on the property, and thanks to NJ laws and slimy lawyers sue the homeowner for tripping on a garden hose.
Phoenix – Or even worse break into the wrong house in that haughty town and then get tied up in the basement by some financial advisor in a gimp suit who then startup up his Karaoke machine with Depesh Mode’s greatest hits.
Home sellers across the U.S., discouraged by the slowing housing market…
There’s very little for sale in the upper echelons of prestigious and haughty Bergen County. When I drive around various towns and see the rare “for sale” sign without an “under contract” tag attached to it, it’s like seeing a fox run through your neighborhood. You stop and pause, maybe even try to get a picture of it because it’s so elusive.
This area has got to be the most competitive in the country. I don’t need to go to San Francisco or “this years” trendy town in Idaho or Colorado to gauge the comparison. The NYC radius is like the gravity of the sun. You all know my feelings on real estate, I hate most of the fucking sellers and 99% of the fucking go between peddlers collecting commissions for doing nothing but this is the game around here.
When they’re standing at the side of the road, waving you down during open houses, handing out cookies, juice and a quickie, then I’ll know housing around here has turned down. Other than that, I could list my house today and tell you about the multiple offers by Friday.
Biggest WFH challenge? wife always home means
it’s tough to keep my hands off her….
Pricing will decide if you get offers, how many you receive and where those offers will be in relation to asking price. The frenzy is over Eddie.
2Y 396
10Y 356
From cover story
“There’s just not serious buyers out there,” he said.
Response? Fuck you you stupid ignorant douche.
You are not a serious seller
“It comes as lawyers for 30 of the Venezuelan say DeSantis lured them with promises of ‘financial and immigration help’
It all becomes fun once the lawyers smell the wafting odors of cold hard cash.
Guess who is going to pay for all of the games of the politicians?
Same as for the tyranny of the police. Taxpayers.
Pony up bitchez.
Pricing will decide if you get offers…
No doubt, but as Libturd was saying yesterday, he’s shocked at his selling price. And my spider senses are telling me people are still willing to throw gobs of money at a house that fits most of the criteria. It just never seems to “wow” on the downside in our neck of the woods.
As I eluded to yesterday, most of the current homeowners are in a very strong position. They either currently hold low rate loans, or the house is paid for. Good luck getting these people to sell for 20% less. Good F;ing luck! Supply is screwed unless it’s in areas that built up a huge supply of new housing, or if the location was bought up by wall st investors. Good luck expecting a huge drop in north jersey nyc metro. The supply is a joke.
Biggest WFH challenge? wife always home means
it’s tough to keep my hands off her….
That doesn’t seem like a challenge, lad. ;)
Even if it was bought up by wall st investors….people will just rent out their homes rather than sell for a loss.
Homes that will be available for sale are total POS’s that have been neglected for years/decades and that are for really only one type of buyer….flippers that will renovate and bring it back on for a much higher price since it is no longer a total pos.
Fast: lots of multi million dollar house for sale in Franklin Lakes.
Yesterday on my drive home from work I had to slam on the brakes and engage ABS approaching a four way intersection with my green light because in my peripheral vision I saw a Tesla X from my left rolling through his red light at about 20 mph. I think the noise from my emergency braking finally woke the Indian guy from his trance, possibly watching videos of his hero Elon on his phone. I flipped him the bird, but he was too busy trying to figure out how to reverse out of the middle of the intersection to see it. I hate these morons who think their crappy level 2+ ADAS relieves them from the responsibility of driving.
What’s the rental yield on a SFH in NJ? Last time I enquired about that in NJ or NYC, pre-covid it was 3% at best, meaning that after maintenance and misc costs, and counting your time, you weren’t doing much better than breaking even, meaning that you were pretty much just betting on capital appreciation.
Fast: If they are willing to throw gobs of money at houses, than why has demand dropped, why aren’t people grabbing what’s out there? Houses sitting in my town since June. My wife tells me I’m her office, closings have dried up, and there have been quite a few deals that have fallen through. That’s only one office of course, but I think the same is happening in other places as well. Also starting to see price changes on the listings, when was the last time you saw that ?
It’s better than selling for a loss.
No One says:
September 20, 2022 at 9:30 am
What’s the rental yield on a SFH in NJ? Last time I enquired about that in NJ or NYC, pre-covid it was 3% at best, meaning that after maintenance and misc costs, and counting your time, you weren’t doing much better than breaking even, meaning that you were pretty much just betting on capital appreciation.
Jim,
From yesterday: if house prices drop like you suggest, is this not deflation?
Well, had you not been able to stop and his car burst into flames I guess you could just say chalk it up to Darwin and give him a posthumous award.
$400,000 – 30 year loan is now a monthly payment $2,613
Same payment only 7 months ago was. $1,796….
and a year ago it was $1,656………
Any questions?
It’s better than selling for a loss.
An actual loss, like less than you paid?
Or less than what you would have received had you sold sooner, so not technically a loss but less of a profit?
3b,
Really high end towns like Franklin Lakes, Saddle River, etc. have always been isolated and in their own world due to the 7 digit plus price tags. They move to a different song. They’re not immune entirely but it’s a different story for them. As for those houses sitting or in reduction, I see a handful online but that’s always been the case anyway. As Old Realtor said above, price matters. Some people are looking for a score, not a sale. We’re in a very competitive area, stubborn even in so-called bad times. I went through years of frustrating adventures, in so-called buyer/seller markets and the desirable houses in decent towns are a gone in a flash. You can always find the $650,000 piece of shit house with pink bathrooms, walnut paneling and Lucky Strike aroma with the $5000 price drop after weeks of sitting. God knows, I saw a thousand of them.
If you can get a couple thousand a month to cover your mortgage (or most of it) and taxes, why not? You know when they start to lower rates again, you will be able to sell for a better price. That rent is just extra income at this point, so why not? Plus, you will prob see appreciation when the market turns again to a bull. Win/win.
If you are forced to sell, sucks for you. You unfortunately lose, while the buyer wins. It’s all a game.
Phoenix says:
September 20, 2022 at 9:43 am
It’s better than selling for a loss.
An actual loss, like less than you paid?
Or less than what you would have received had you sold sooner, so not technically a loss but less of a profit?
Fast: We shall see, but the last year of price mania with increases of 20 percent was insane and unprecedented; that in my opinion will be blown away and perhaps more, depending how bad the recession might get. Sure, lots of people won’t sell, but many others will for a multitude of reasons. They won’t lose money GS what they paid for their houses, but they left money on the table, by not selling sooner. I have a few friends of mine that are kicking themselves for not selling earlier, they were waiting for prices to go even higher.
It’s not….look at how inflation was. Wake up. It’s not insane when inflation was so high. Don’t you understand by now that housing is the ultimate inflation hedge.
Plus, north jersey didn’t see wild appreciation for over a decade. It’s just catching up to the mean.
3b says:
September 20, 2022 at 10:17 am
Fast: We shall see, but the last year of price mania with increases of 20 percent was insane and unprecedented
Juice: Massive new apartment complex just opened in Hackensack, called the Print, old Bergen Record site. 200 apartments, about 600 when completed. That is only one of multiple apartment complexes under construction in Hackensack. They are all rentals from what I understand. Another one in Oradell on Kinderkamack Rd, almost completed, and another on also in Oradell on KKR, is in approval process. And another 150 under construction in Emerson on KKR.
chi, toe in the water with some 389/391 verts at about half a buck…yesterday’s low held so far, lotta time left until 2:30pm tomorrow though…will cut losses at 50%, especially as that means we break yesterday’s low…
Lib, risk/reward math…if the index goes through 391 (2% from here) I’ll make 300% profit….by cutting losses at 50% (0.25 or so) I’m risking 0.25 to make 1.50…
If the support/resistance boundary for the index is broadly 3800-4200 I have some cushion on downside but good room to run on upside (recalling I only need a 2% move, everything else is overkill).
6x potential for a guy who will not surprise by actions…he is doing 75bps, not 100 or 50…the move will all be in the presser where he has shown his innate dovishness frequently. Plus, everyone is on the other side of the boat, puking stocks this morning…
So, yes, clearly a trade and not an ‘investment’ especially as they are Wed expiries…but the thought process/rationale is the same. With the odds of a positive response at least 50/50 I’ll push some money across the table for a 6x return. Like those odds….Tomorrow afternoon will be fun regardless, need to clear my calendar lol.
“most of the current homeowners are in a very strong position.”
My buyer put down 27K and took out a loan for 873K.
Do the math. Her taxes are going to go up and so will her homeowners. She also has to pay a higher interest rate. It’s incredulous.
Her mortgage payment will be $7333. But wait. Sewer and water are separate. That’s another $100 a month. Landscaping another $250 a month. Figure another $200 a month for maintenance items (furnace, roof, driveway). Then there’s the gutter guy, the termite warranty, that’s another $50 a month. And I’m sure I am forgetting more. I am, she has to pay gas and electric for her unit. So figure another $150 a month. So figure, conservatively, she needs to pay $8,150 a month, which is about $100K a year. Since she’s a moron, she’ll probably live in the downstairs unit, which at absolutely best, would garner $3.5K in rent. The upstairs unit, maybe $3K and I’m being extremely nice. We had trouble filling it in 2018 and that was at $2,100/month. So the tenants would be contributing 36K of the 100K owed. $64K a year or $5,333 a month is what the owner will be paying to stay in her unit. There will be no profit besides home appreciation. Remember, Gator and I paid 1K a month, or $12K a year to live in that unit. So she is paying more than 5X more. I bought the place for $480K. She bought it for $900K.
Bets on how long before she defaults? I’m pretty sure she is single. Her profession is Senior product manager for a tech company that sells solar related software. Figure she nets 150K tops. Take home must be $105K and she is sinking $64K of it into her property. That leaves $41K or $3,400 a month to live off of besides shelter. Good luck.
That’s why if you can find a sucker to buy from right now, you win. It’s not easy to find, but if you do find the buried treasure, you win. Use the high rate environment to your advantage. High rates won’t be forever.
“If you are forced to sell, sucks for you. You unfortunately lose, while the buyer wins. It’s all a game.”
Lib: Those are staggering numbers, I do t know how that woman will sleep at night. As for rates, I think inflation is going to be with us for quite some time. We won’t see those 3 percent 30 year rates again.
Higher rate for now, it will lower again in time. Remember, deflation is the true enemy of the Fed.
She also will have some nice tax write-offs now to help her increase her wealth long-term.
“Do the math. Her taxes are going to go up and so will her homeowners. She also has to pay a higher interest rate. It’s incredulous”
Lib, congrats on the sale. Jingle mail eventually a pretty safe bet…but at least it’s a defined loss for her…$25k at risk floor for LT unlimited upside. Lenders never learn.
BTW, how the hell did you exit with lead based paint? JFC…you payoff somebody lol?
3b, re: your 20%…in our area much more likely just a long period of flat/stagnation until personal balance sheets and w2s catch up…like when a stock consolidates after a huge runup….
Lib, stocks for your radar…GNRC and TREX. Really like the latter, nearly everything about it, except one not insignificant misstep recently by management. Both at/near 52 week lows so not for the faint of heart. Worth a watchlist.
WRK getting wrecked, at 2019 pre-covid support levels…I may start to toe in for a LT hold. Save me some google time, any idea why it was in a such vicious two year down trend prior to covid?
If you’re further dumpster diving the life science service/product sector has been pummeled, many at/near 52 week lows. Some good names in there, like CROs and suppliers like PKI. Not unreasonable multiples, especially if they keep coming off.
10Y 360
Nothing between here and 375, the breakthrough was 352 area. Not saying it couldn’t rally back
Chicago says:
September 20, 2022 at 8:33 am
2Y 396
10Y 356
Where is 30Y fixed now in NJ? Clean. No cash.
3b,
20% gain might seem insane and it is. So is a box of cheeze-its for $6.99 or $6.49 for a box of cereal. Are those going to go down? Eggs went from $1.30 per dozen to $3.10 in about 18 months. Need to get on a plane? Check out those prices. Wanna see where your electric and gas bill is going or has gone in the last 18 months? Are all those other things disregarding housing going to drop in price or at most, freeze for a number of years?
2Y touched 399
https://www.google.com/amp/s/www.cnbc.com/amp/2022/09/20/2-year-treasury-yield-reaches-fresh-15-year-high-.html
Just to be clear, I am posting the two and the 10 because of the inversion
As for the renting instead of selling proposition, on paper is looks great. In reality, I highly recommend against it. I know of two families who tried it. Unless you are extremely handy and can get the renters to sign a 3-year lease, forget about it. Why?
Because renters destroy rentals. They will flood the bathtub onto the floor and you will get water stains on the ceiling below. If you are lucky, you won’t have to replace the sheetrock. They will destroy your appliances. They will not change the filters, nor replace a lightbulb. They wreck your screens. What you would punish your kids for doing they will consider normal wear & tear. Often, they will break the lease after three months and now you have to fix the whole place up again, list it, find new tenants, etc. Where are you living when this happens? Usually nowhere near the rental. You moved; remember? So now you are paying top dollar for someone to do all of this work for you. And time is of the essence as you are losing rental income and still have to pay the mortgage. Trust me. It doesn’t work.
There was a home in the South End of Glen Ridge that we put a bid on for around 25K less than ask in early 2010. Prices had dropped maybe 10 to 15% from their peaks in 2008. Owners wanted list price. We wouldn’t budge. No one else would bid. They decided to rent it for two years for around the carry cost. The tenants absolutely destroyed the place. We were told the owner had to do 50K in repairs just to get the home back to sellable condition. They sold it for less than we bid. I’m not sure if they evicted the tenants or the tenants broke the lease.
Up the block from us, a family we are close to decided to rent their place out as they spent a year traveling around the country and the world. It was a complete landlording disaster. They said it wasn’t worth it and would never do it again.
Fast: The last 20 percent run up was a mania , as opposed to inflation in food/ services. Grim did the math earlier monthly mortgage payment 400k a year ago, vs now. That says it all.
“No doubt, but as Libturd was saying yesterday, he’s shocked at his selling price.”
yes, but even he admits in his writeup he squeaked out a buyer, only a pool of three. And he found the diamond in the rough, what sounds like an inexperienced rube with a lot of leverage available…
Don’t mistake a single lot trade for market depth…
“Huge amount of new “luxury” high rises going up in Hackensack..”
This area has always confounded me by what the better than median demographic population considers ‘luxury’….
Left, I wouldn’t go anywhere near anything housing related. The crash is not even close to priced in. TREX is a great company which is about to have a huge decline in sales due to housing crash. WRK I think is the safest of the three, but definitely dropped in sympathy with FEDEX, though I see it more as a takeout packaging company than as a shipping packaging specialist. Generac has further to drop. We haven’t had much in the way of hurricanes lately and that’s their bread and butter. If she drops further, then maybe, otherwise, dangerous grabbing a falling knife. Plus channel destocking is an excuse for poor performance.
As far as I can tell, anything that isn’t explictly HUD housing is called “luxury”. Unless it’s genuine luxury, in which case they don’t need to use the word “luxury” on the sign.
Everyone else is paying more, why not them?
A state board on Monday approved a double-digit rate increase on health insurance plans for some teachers and school employees in New Jersey next year, meaning districts will shoulder bigger costs and those workers will pay more out of pocket.
leftwing,
The buyer took a real estate course in Montclair in 2o2o. ‘Nuff said.
This area has always confounded me by what the better than median demographic population considers ‘luxury’….
The term ‘luxury’ is used in the some way the word ‘artesian’ is used. Throw in ‘exclusive luxury’ and that’ll cost ya a few bucks more.
That area down by the “Print” building is growing faster than Harrison. In my life, I’ve never seen so many individual apartment buildings going up simultaneously within an area of about a 1/2 a square mile. It looks like they are trying to rebuild Hoboken on the Hackensack. There must be a minimum of 3,000 new units being built. Honestly, it could be much higher. There are at least 8 huge projects either recently or currently being built. The Ice House (4 ice rinks) has become a complete shit show to park at due to this. The huge municipal lot between Midtown Bridge Street and Salem, which extended nearly all the way to River Road from the river itself has been replaced by condos under construction. To play at the rink, you often have to drag your equipment about a quarter to half a mile from where you park to walk to the rink. My guess is that they will eventually go under due to this lack of parking any near the rink. The bowling alley must be chomping at the bit to sell. Heck, the rink too. We are really becoming Brooklyn (or Queens) in a hurry.
Gary,
Artisan or artesian is another way of saying, bullshit.
Lib: Another one just opened at the entrance to Hackensack from River Edge, on Kinderkamack Rd, called the Jefferson. It was built where the old Bergen Co DPW was, backs up to the train tracks and the mighty Hackensack River, and views of Rt 4. 600 units in total. We were in Hackensack about a year ago and counted about 12 or so different apartment complexes being built, from the entrance to Hackensack from River Edge all the way down to south Hackensack,5 or 6 alone in the Main Street area, which the city has changed back to 2 way traffic to spur redevelopment in their words. As I said, they are all rentals.
Oh. On the lead paint. Every house painted before 1974 or so has lead in it. Like with gasoline, it was an additive in nearly all paints. To remediate it, you must keep all of your surfaces painted. This is tricky when it comes to window jambs and doorways since the paint always chips where the moving surfaces co tact each other exposing minute amounts of lead. I know all this because when I was refinancing in 2011, the banks were insane. My old homeowner’s dropped me after our claims after a microburst dropped some trees. In order to obtain homeowner’s insurance they required a lead inspection. I passed, but was warned to repaint all of those rubbing areas between tenant turnover. The only way to truly remediate lead paint from your home permanently, you must remove all of your sheet rock or plaster that has been painted. Have fun with that. In all real estate transactions, you know absolve yourself of lead paint risk through a disclosure form.
I bury those cockroachs…..
https://youtu.be/daKj4Cx3Jzs?t=115
Juice Box says:
September 20, 2022 at 8:01 am
Phoenix – Or even worse break into the wrong house in that haughty town and then get tied up in the basement by some financial advisor in a gimp suit who then startup up his Karaoke machine with Depesh Mode’s greatest hits.
The crazy thing about all of this Hackensack building is that that area was such a wasteland that there’s a prison, self storage, natural gas and oil storage facilities and even a Costco. That area was more industrial than residential, with a tiny bit of commercial. Being the County Seat, there are a lot of pretty court-related buildings and bail bonds shops, but there used to be little of nothing else. I guess you have to start somewhere.
Who needs a house out in Hackensack,
Is that what you get for your money?
https://www.trulia.com/p/nj/hackensack/160-poplar-ave-hackensack-nj-07601–2006627445
11:59 Artesian … is a beer term ya nooob
Or you can rent one of these starting at $3,500.
I swear, I’ve had cruise ship cabins larger than these two bedrooms.
In two years, you will be able to rent one these places for at least $1,000 less.
Actually, it’s a well term. I think Gary meant artisan.
My cousin bought an apartment in Hackensack for $300k in 2006. Sat on it for 12 years. Sold it prior to pandemic hysteria for $290k. After taxes, maintenance, closing costs, and interest, that was a total loser of a purchase. Ironically, could have probably got a lot more if he held it through the wuflu.
Sorry, forgot the link,
https://printhousehackensack.com/availability/?selected_floorplans_beds=2&selected_price_range=3910
Libturd says:
September 20, 2022 at 11:11 am
“As for the renting instead of selling proposition, on paper is looks great. In reality, I highly recommend against it…Because renters destroy rentals.”
Sound advice. I’m in the camp that real estate investment should be done via REITs (as opposed to direct ownership/landording), with very few exceptions. I rented my first condo in No Brunswick instead of selling for a small loss in the early 90’s and it was a disaster — lesson learned. On the other hand, direct ownership of a premium rental property in a premium location can work out. I’ve owned a studio on Palmer Square in Princeton for ~30 years, managed by local realtor Callaway for the past ~20, and it’s been stellar.
The true key Smalls, is to be handy and own the tools. Especially with electric and plumbing. Then, location, location, location, which is probably what saved our ass. Proximity to the train and being in one of the hottest areas in Montclair helps.
I’ve owned a studio on Palmer Square in Princeton for ~30 years, managed by local realtor Callaway for the past ~20, and it’s been stellar.
lol, I bet. I probably viewed it 15 years ago. But someone is always willing to go in there. Too much for my taste.
Any investment can go wrong or be a winner. Hence, risk. Luck matters in life, don’t kid yourself. Have to be at the right place and time with any investment to hit a hr. Skills matter when investments go wrong and hit bad luck.
At the end of the day, you can’t be afraid to lose. Otherwise, you don’t understand investing and will never be successful at it. You are not going to bat a perfect avg when it comes to investments. You learn from mistakes, which makes you stronger over time, and move forward.
Lib: Maybe all this redeveloped will help Hackensack, but my wife and I have always commented on how sad and dreary looking Hackensack looks, especially on a rainy day.
That area in particular has always looked so desolate. Now it looks desolate between giant beige rectangular boxes. What’s missing are trees.
Libturd says:
September 20, 2022 at 1:39 pm
“The true key Smalls, is to be handy and own the tools.”
I was going to mention that as one of the caveats that makes direct ownership workable, but I think it’s even more specific. The only example I know of personally, of a guy that’s making direct ownership work at scale, is a very sharp young guy (probably in his 30’s now) who’s ‘collecting’ buildings in the Union City area. He’s got a solid day job with SAP and his life beyond that is dedicated to building a real estate portfolio. The keys as best as I can tell, in addition to the day job that provides investment capital: very smart, very capable do-it-yourselfer, no wife, no kids, invests where he grew up.
It’s going to drive up the price of Hackensack and all surrounding areas in north jersey in the long-term.
3b says:
September 20, 2022 at 1:57 pm
Lib: Maybe all this redeveloped will help Hackensack, but my wife and I have always commented on how sad and dreary looking Hackensack looks, especially on a rainy day.
“champing” at the bit is the original term, but now “chomping” has become the more common word.
https://grammarist.com/usage/champing-chomping-at-the-bit/
1:57 a rainy day….
What’s that !?!
“It’s going to drive up the price of Hackensack and all surrounding areas in north jersey in the long-term.”
That’s actually a discussable theory (for a change). In Montclair, there is a huge debate between the old money large single-family homeowners and the new money luxury condo owners. About twelve years ago, Montclair chose to develop it’s way out of debt. The town had taken on so much debt that servicing it alone was costing residents over 1/5th of their property taxes. So the town reclassified a few neighborhoods and began to build lots of these ugly Styrofoam-clad, rectangular, luxury buildings all up and down Bloomfield Avenue. Nearly every parking lot, was replaced with a 5 to 8 floor behemoth towers, when compared with the majority of the town’s housing stock of traditional colonial and tudor homes. plus a few small apartment buildings, most built pre-WWII.
Twelve year’s later, the debt has been lowered from disgusting to average, but the infrastructure improvement demands created from all of these new population dense structures are coming to light. There’s not enough water to service the town. The fire department needs more hook and ladder trucks. The sewers need relining and many watermains require replacement. Then there is the lack of parking near any of the shops up and down Bloomfield Avenue, exacerbated by the gig economy drivers who now have to double park outside of the restaurants and stores they are are servicing. It’s gotten so bad that we rarely order from any of the great restaurants on the Ave. There are also a growing number of complaints about the lack of sunlight that these buildings are blocking, creating Montclair’s own Canyon of Heroes, that exists in nearby Manhattan.
The latest monstrosity planned is for Richie Cicere’s old speakeasy and the parking lots around it. It’s right adjacent to the Walnut Street train station, which is a traditional residential neighborhood made up almost entirely of 100-year old Victorians. Some are multi’s like my old one. Most are beautiful, well-kept and refurbished single family homes. The building they want to construct is to look like this.
https://baristanet.com/2022/09/a-new-presentation-for-montclairs-label-street-neighborhood/
I hate this dense growth, but understand why it’s necessary. But it really isn’t fair to homeowners nearby. The lack of sunlight alone would piss me off. But imagine looking up from your backyard to see people staring at you from the adjacent 6 floor condo complex.
I think the town voted it down, but other’s will get approved for sure.
Noone,
I actually looked that up (champing/chomping) about a year ago.
A guy jumped off the Rt 3 bridge near American Dream this morning. Sad, there are a lot of troubled people out there.
Lib; Could help Hackensack, but from what I understand most of this new development is rentals, so population will be very transient, and of course to fill apartments they may have to substantially drop rents, which could have a snowball effect. Hackensack schools from what I hear are considered to be awful, so you won’t have that appeal. It will help Maywood, as they sent their kids to Hackensack HS, but were dropped by Hackensack due to all the new development, so I am contradicting myself , but it would make sense that there would be at least some increase, we shall see. Maywood kids will now be going to either Rochelle Park, or Bergen Regional, I don’t remember. As for the Hackensack vs Maywood comparison, Hackensack will never have the cache of Montclair, even the name is a turn off. They should change it back to New Barbados. That has much more cache.
Hackensack is building like crazy and Main Street has a lot of trendy shops popping up. It’s reinventing, regenerating and reinvigorating itself. And it has two train stops. Like parts of Jersey City, Hoboken, Harrison, etc., it will push out the riff raff and gentrify with newbies.
Fast: We shall see, a nasty recession could change all that. KKR I’m Emerson is going to be a night mare when those 150 apartments are finished, and the train stops in the center of the town. I drove by yesterday evening, and they have started construction, there is some massive 4 story high bunker like thing, with a couple of windows in it. I can’t figure out how it fits in with what they are building.
American Dream. The irony.
A guy jumped off the Rt 3 bridge near American Dream this morning.
The Iranian President dressed in his customary long flowing robes, said today there are some signs that the Holocaust happened, but much more research needs to be done to prove it really happens. Yes, anti Semitism and Holocaust denial is alive and well, and this from a so called holy man. Protests also in Iran over a young girl killed by the morality police for not dressing according to Islamic rules.
3b,
That “thing” they’re building in Emerson resembles what they did in Park Ridge. Any destruction of old buildings anywhere in the state of NJ seems to be replaced with apartments and condos. It’s as if no other option exists. We are Queens and Brooklyn.
2:53 maybe they were terminally ill and did not want to bankrupt their family??
Fast: I guess that’s how they start it, and ultimately it looks like Park Ridge one. I know you don’t like it, but I think they did a good job on the PR one, it blends in nicely.
As for the old building and stores, there does a not appear to be any other use for them, so what else are they going to do with the properties? Bergen co ain’t Mayberry anymore.
“They should change it back to New Barbados. ”
How about Medellín, since it’s right across the river from Bogota. Plus you have to be on cocaine to pay those prices to live there.
Lib: Good one! I think ultimately prices will come down for the rentals, huge volume of new construction, plus all the existing rentals. Time will tell.
I know you don’t like it, but I think they did a good job on the PR one, it blends in nicely.
It’s a multistory monstrosity of raw concrete. What else can they do? They can turn these areas into park property with tress but then, you can’t collect taxes; thus, squeeze in as many muppets as possible and fleece accordingly.
Fast: It could have looked a lot worse.
That’s why it took me 2hrs to get to work, not complaining. Had a friend us a train, terrible for the families.
Trick: Yes, very sad for the families. It seems to be happening more often these lat few years.
The Great Pumpkin says:
September 20, 2022 at 9:33 am
Jim,
From yesterday: if house prices drop like you suggest, is this not deflation?
PUMPS,
Housing would have to first drop over 30-40 percent before you could call it deflation because the inflation was caused by 0% interest rates. Once it hits these numbers and then drops more I would consider that deflation.( I doubt this will happen to begin with) Please use common sense, I know it is a struggle for you especially when you predicted in June that rates would fall. Jay Powell is smart enough not to follow any advice from Cathie Woods, maybe you should follow that advice….just sayin.
Libturd says:
September 19, 2022 at 10:53 pm
Answers:
Never had to evict anyone. If I don’t get my rent on the 1st, you will find all of your belongings on the front lawn. I know it’s illegal. So is speeding.
Lib, I hope that wasn’t in writing, if you ever did do that you would be put in jail, and be getting a lawyer, the laws favor tenants , despises landlords. I found out over time if you work with judges, police , officials they do come around and will actually help you. I earned my stripes from everything I learned, and would have had a 20-40 unit building if my first wife hadn’t gotten cancer and passed.
I am glad you were able to sell it , the window of oppurtunity has been slowly closing and you made it. PHEWW
Housing market still going strong up here. I thought the colonial up street would sit at 800k but now contingent. Houses were gone in days over summer but now weeks. This stayed on for 5 weeks but never dropped in price. People are nuts. Not a bad place but 100k to update..easy.
I have to repost Grim. Did people miss this story? The irony is epic.
“A top executive at plant-based food company Beyond Meat has been charged with felony battery after a fight outside a college football game in which he was accused of biting a man’s nose.
Doug Ramsey was also charged with making a terroristic threat after the attack Saturday in a parking garage outside a University of Arkansas football game in Fayetteville.
Beyond Meat said Tuesday it has suspended Ramsey indefinitely.
According to a police report, Ramsey was angered when another driver inched in front of him in a traffic lane and made contact with the front passenger wheel on Ramsey’s Ford Bronco SUV.
The police report alleges that Ramsey got out of his vehicle and punched through the back windshield of the other driver’s car. The driver told police he got out of his car and Ramsey pulled him close and began punching him. Ramsey also bit the tip of the other driver’s nose, ripping the flesh, according to the police report.
Jim, the most recent high is always the new baseline for policy. That’s why we celebrate 3.50 gasoline
Maybe he can pull a Mike Tyson and sell nose-shaped cannabis edibles as his second act?
It’s a multistory monstrosity of raw concrete.”
Makes it kind of bulletproof ,no?
Jim,
Of course I didn’t put it in writing. I also told them that I am extremely responsive (which I am) and always fix things as quickly as possible. Usually, immediately after they call me. If I can take of their needs immediately, they can pay my rent on time.
So tonight I had to go to a parent Back to school social. Got talking to a parent, nice enough guy, but a big high strung. Like one of those that did a little too much Charlie in the 90’s. He starts moving the conversation to politics and drops a “Do you really believe he got 80million votes?” “Yes”
Lives in Union county, house down the shore and could not comprehend how the Dems could win Union County and the rest of NJ and the country. I cant fix stupid, so I kept it light and I got a fist-bump as I headed out.
I’m calling Junior in the barrel.
“BREAKING: NY Attorney General Tish James will make a MAJOR ANNOUNCEMENT at 10:30 am ET tomorrow. I don’t think she’d say it was “major” unless it was… um… MAJOR!!!”
https://twitter.com/joncoopertweets/status/1572378064990113795
Donnie is running out of competent lawyers to represent him. Maybe its time for Eddie Ray to start warming up on the bench!
“Dearie to Trump: you are the plaintiff, you have the burden of proof, you have set forth no evidence that the docs are not classified, whereas the govt has set out proof they are. So unless you overcome that proof, you are not getting classified docs returned to you. Case closed.”
https://twitter.com/AWeissmann_/status/1572401952012599297
Epic. Trump is duuuuuumb. And done.