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Re: Real Estate as Investment
Old 05-03-2005, 03:51 PM   #41
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Re: Real Estate as Investment

I think there really isnt ANY reason for people to rent a home out here. They either just havent run the numbers yet or havent realized how much they can get for the rental.

My wifes old neighborhood is a little rough. Stabbing across the street diagonally over drugs and a woman last month and 3 guys robbed the corner store 3 lots up with shotguns a couple of months ago. Most of the homes sold for under $60k up until a few years ago. Most of the homes are rented by the usual drug and welfare crowd.

I'll bet the 240k we just got for ours (admittedly completely remodeled) will open a few landlords eyes who may decide to dump their renters, clean up the place and sell it.

I would not, however, be buying into these markets just to ride the speculation. I cant see that theres any "there" there. Its not like manhattan or the SF bay area where there is a limited amount of space and commuting in/out is disasterous...we're in an area where there are VAST tracts of unused land. Thousands of acres of nothing but grass and trees. Some are being used for rice paddies or peach orchards, but they've torn out several 500 acre peach orchards recently for home building.

Based on my particular home, $390k for an 1800 square foot basic stucco tract home on a quarter acre. The reconstruction cost per my insurance company is about 200k. So my quarter acre is worth almost 200k?

I dont think so. Its a bubble. Its only a question of whether it'll pop, slide down slowly for a long time, or go sideways for a really long time. You cant really push mortgages past 40 years, and interest-only mortgages can only take you so far.
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Re: Real Estate as Investment
Old 05-03-2005, 06:25 PM   #42
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Re: Real Estate as Investment

Quote:
Originally Posted by Beachbumz
Hi Bum!
I know that's the truth. We sold one side of our duplex in Emerald Isle, NC in May, 2003 for $525K, we sold the other side in Oct 04 for $780K, now they are asking $950K! :P

Beachbumz
From Atlantic Beach to Long Beach, NC hellzapoppin. On the one hand I could sell at almost 3 times my purchase price in 3 years,. OTOH I'd likely never have anything like it again. The deeded boat slips alone have gone up 4 times since 2002. Its only paper profits

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Re: Real Estate as Investment
Old 05-03-2005, 07:25 PM   #43
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Re: Real Estate as Investment

Hello BUM and all...........yeah, there is the rub. You know
you can sell for big money, but if you want to duplicate what you
sell, it can get chewy. For example, I don't see how I could better
our position by selling either residence (Illinois and Texas)
unless we downsized drastically. So, we sell and have the cash.
Now what?

JG
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Re: Real Estate as Investment
Old 05-03-2005, 09:17 PM   #44
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Re: Real Estate as Investment

Quote:
Originally Posted by BUM
From Atlantic Beach to Long Beach, NC hellzapoppin. On the one hand I could sell at almost 3 times my purchase price in 3 years,. OTOH I'd likely never have anything like it again. The deeded boat* slips alone have gone up 4 times since 2002. Its only paper profits

BUM
Yeah, and now you have to worry about higher costs such as property taxes and insurance. When the gains are on a property you want to keep, it's kinda a double-edged sword.

BB
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Re: Real Estate as Investment
Old 05-03-2005, 10:13 PM   #45
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Re: Real Estate as Investment

Not in CA...prop 13 keeps the property taxes nice and low. My wifes old house had a $480 a year property tax bill. My current place has one based on 252,000 in value while its worth close to 400k.

The benefits of living in a granola state...
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Re: Real Estate as Investment
Old 05-04-2005, 07:41 AM   #46
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Re: Real Estate as Investment

Quote:
Originally Posted by Beachbumz
Hi Bum!
I know that's the truth. We sold one side of our duplex in Emerald Isle, NC in May, 2003 for $525K, we sold the other side in Oct 04 for $780K, now they are asking $950K! :P

Beachbumz
Hi Beach!
My neighbor has a crappy old house on less than an a 1/4 acre 2 blocks from the beach. In 2002 he thought could get $100k and "git back to the hills." He put it up for sale last week at $700k

BUM
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Re: Real Estate as Investment
Old 05-04-2005, 09:34 AM   #47
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Re: Real Estate as Investment

Quote:
If you only are getting a return of 3-4%, not counting your own labor, why in the world is anyone in the landlord business? Especially renting single family homes that could be sold for big bucks.
This is exactly why I've been a SF seller since 2000. Closing on one of my last 6 Monday. Sub-prime lender, no-doc loan .... can't wait to see the rate! And the city's first murder was less than a block away from this beauty.

Enjoy.
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Re: Real Estate as Investment
Old 05-04-2005, 08:00 PM   #48
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Re: Real Estate as Investment

I read all these skyrocketing real estate prices here. Wow, some of you have been quite lucky.... I wonder whether anybody knows how TX is expected to do in the next few years. I know there are quite a few people that have started getting real estate in Austin and other places in TX and moving out of e.g. California. The RE tax is crazy here but the housing prices are still quite affordable. Some small pockets in Austin have skyrocketed but only very select areas.

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Re: Real Estate as Investment
Old 05-04-2005, 08:06 PM   #49
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Re: Real Estate as Investment

Hello Vicky. We covered the affordability of Texas real estate a couple of times. Please don't talk about this again. Charlie and REW and I would prefer if people didn't find out about this as
it would just encourage more relocation to The Lone Star State.

JG
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Re: Real Estate as Investment
Old 05-05-2005, 04:33 AM   #50
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Re: Real Estate as Investment

Hi vicky,

Good luck guys trying to keep Texas a secret. My brother in law retired a few years ago to Austin. Loves it. Wont shut up about it. Thinks hes a cowboy. He sent me a belt buckle about the size of a garbage can lid.

Go visit Austin for a couple weeks vicky... its the only way to find out for sure.
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Re: Real Estate as Investment
Old 05-05-2005, 08:37 AM   #51
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Re: Real Estate as Investment

Quote:
Originally Posted by BUM
Hi vicky,

Good luck guys trying to keep Texas a secret. My brother in law retired a few years ago to Austin. Loves it. Wont shut up about it. Thinks hes a cowboy. He sent me a belt buckle about the size of a garbage can lid.

Go visit Austin for a couple weeks vicky... its the only way to find out for sure.*
Yep, I second that notion. For anyone thinking about relocting to Texas,
visit Austin first. If you like Austin, then move there by all means.
OTOH, if it's not to your liking, you should look at another state.
The whole state is just like Austin, so that makes it an excellent
test.

JG
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Re: Real Estate as Investment
Old 05-05-2005, 12:28 PM   #52
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Re: Real Estate as Investment

We californians dont mind texas staying a secret :P
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Re: Real Estate as Investment
Old 05-05-2005, 02:46 PM   #53
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Re: Real Estate as Investment

Quote:
Closing on one of my last 6 Monday. Sub-prime lender, no-doc loan .... can't wait to see the rate!
Just got my HUD for the closing .... buyer is paying $7600 in "closing costs" $5k of which is split among: origination fee, processing fee and, administration fee. Good news is the buyer is leaving a check larger than her deposit. No word on the interest rate ... will ask at the closing.

100% financing is alive n'well.

Enjoy!
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Re: Real Estate as Investment
Old 05-05-2005, 06:10 PM   #54
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Re: Real Estate as Investment

125% financing is even better

JG
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Re: Real Estate as Investment
Old 05-05-2005, 08:13 PM   #55
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Re: Real Estate as Investment

Quote:
Originally Posted by BUM
Go visit Austin for a couple weeks vicky... its the only way to find out for sure.
We already bought a place in central Austin a couple of weeks ago...., north Hyde Park. I saw a place on craigslist, walked around it for 1 minute and made a cash offer over the phone - did not even see the inside. I love the neighborhood. Anything of interest is within a 5 miles radius or less. We still have to add on and renovate the whole thing completely. Stripped to the studs at this time.

We currently still live out in the country. Can't wait to get out of that!!!! Rural TX, uggh.....

I was thinking about buying something for investment purposes. Probably in central Austin with former Mueller airport being developed. I will probably have a 1031 exchange sometime in the near future. Any Austin investors here?

JG, where we bought is about the most liberal/democratic part of TX - I am sure you would not even want to get close to here.

Vicky
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Re: Real Estate as Investment
Old 05-05-2005, 08:21 PM   #56
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Re: Real Estate as Investment

Quote:
Originally Posted by vic
We already bought a place in central Austin a couple of weeks ago....

We currently still live out in the country. Can't wait to get out of that!!!! Rural TX, uggh.....

JG, where we bought is about the most liberal/democratic part of TX - I am sure you would not even want to get close to here.
Austin is a beautiful city with road congestion from Hell. And you are correct, it is a blue blemish in an otherwise red state.

REW, a resident of uggh, TX
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Re: Real Estate as Investment
Old 05-05-2005, 09:06 PM   #57
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Re: Real Estate as Investment

Quote:
Originally Posted by vic

JG, where we bought is about the most liberal/democratic part of TX - I am sure you would not even want to get close to here.*

Vicky
You got that right.

JG
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Re: Real Estate as Investment
Old 05-24-2005, 06:18 PM   #58
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Re: Real Estate as Investment

I am wondering how Austin rental market is?
If houses are cheap then why would people rent?
I am doing my research regarding Austin Real Estate.
I feel like we are way behind with our networth and we would like to see if
we can still make it investing in Real Estate thru rental properties.
Unfortunately, CA is too expensive now.


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Re: Real Estate as Investment
Old 05-26-2005, 02:05 AM   #59
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Re: Real Estate as Investment

Any information on Austin would be useful to me. I am about to unload a 1031 exchange there.

Looks to me like Texas has been at the bottom of the rise in real estate values lately. Only Indiana is lower.

I was told that Houston had an 18 month backlog of houses. What accounts for this? Oil business seems ok. A Texan is President. Is it still the Enron debacle?

I am seeing 20 pages of executive homes for sale in the $350,000 range in Houston.

Same with Dallas. Is this another failed right-wing society? Looks like it.

b.
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Re: Real Estate as Investment
Old 05-26-2005, 06:53 AM   #60
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Re: Real Estate as Investment

Quote:
Originally Posted by boont
Any information on Austin would be useful to me. I am about to unload a 1031 exchange there.

Looks to me like Texas has been at the bottom of the rise in real estate values lately. Only Indiana is lower.

I was told that Houston had an 18 month backlog of houses. What accounts for this? Oil business seems ok. A Texan is President. Is it still the Enron debacle?

I am seeing 20 pages of executive homes for sale in the $350,000 range in Houston.

Same with Dallas. Is this another failed right-wing society? Looks like it.

b.
There has never been a "failed fright wing society". Liberals and other
leftist types always mucked things up. We never gave fascism a
fair chance IMHO But, I digress. Building in Texas seems to never slow
down, and BTW, 20 pages of houses for sale in Houston at 350K
is a statistical nothing. Houston is huge, kinda like Texas.

JG
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