Around me it’s the opposite. Buying is still way way cheaper than rent.
$400k 4 bed 2k sq ft house is $2200-$2600 a month. 3 bedroom 1100 sq ft apartment is $2400+ and lots for $3k plus.
My parents bought in a small rural town in Midwest brand new construction. 1300sq ft plus 1300 sq ft unfinished basement 3 bed 2 bath place for $235k. Six months later builder wants $285k.
It's pretty incredible. Bought our house a year ago in Richardson (suburb of Dallas). Largest lot, sizeable, updated house. We thought it was bad when we were buying then (and it was). Our direct neighbors are selling their house right now. 500 sq ft less, not nearly as updated, lot is maybe half the size. 30k more than what we bought ours for, and we felt like we overpaid by like 50k when we got ours. They haven't sold yet in the week they've had it on market, so we will see if that price sticks. A few homes in our 'hood are really going for it right now with their price listings.
I don't think you could even buy my 4k sq ft brick house on 5 acres of land with a big ass pool in the bay area at all lol. Only cost me $300k here in TN
I had something like this happen. The first house I ever bought. It was 4,100 sq feet. I found out after the fact that it was expanded out by 1,000 square feet and there were no permits for about 4-500 of the expansion.
I found out because the back of the house (which was expanded out on first and second floor) had a weird slant on the floor of the first floor.
I was in a bind because I didn't have money for lawyers at the time, put everything to get the house and upgrades and contractors told me it would cost A LOt to get permits and everything up to code after the fact.
Eventually sold it four years later
Sure, use 33410 Jupiter, FL as a jump off point. Find me something within 100 miles that isn't 55+ only, mobile home with lot rent, or just a vacant lot to be developed, for $100K.
I added in 1500 sq ft 3/2 ranch because that's about the smallest single family homes you will find that are not townhouses.
Let me know what you find.
Do you mean you wouldn’t sign a lease with a clause for a strong penalty for non-payment & 30 days notice for eviction over the above snippet as a tenant or as a landlord?
It’s not the only space in town, but it’s the size / location they need. It’s ~1200 sq ft in a downtown historic district.
Fleathead County - Kalispell / Columbia Falls / Whitefish area has gone insane. You cant get a 600 sq ft meth shack for under 550k here. 1 bed/bath apartments are over 1500 a month currently (unless you would go for ones that are run down then its closer to a 1000 a month). Fuck this housing market. Fuck greedy landlords. Fuck blackrock and similar funds. Cant wait for people to snap and start burning it all to the ground.
Is this really what mobile homes cost today? Are you in a very high cost of living area? That’s seems exorbitant.
For reference, I live in New England and bought a nice 2100 sq ft / 4 bed/ 3 bath house in 2019 for $170k.
I think this will all depend on your income. Our household income is about $120k and our mortgage is $1500 (we have high taxes) but we’re glad we didn’t buy a much more expensive house. Have you crunched the numbers? Can you afford this?
I make close to 200k a year and own my house. I was hoping to move out of my 1600 sq ft house and move up to the “middle class” with prices the way they are I think I’ll be stuck in this same shit house for the foreseeable future.
Let’s talk about Netflix , roku , Snapchat, fb , pypl/sq
Netflix drop because too many streaming platform.
Roku who still buy roku device? Most new tv come with their own device..
Snapchat - who still use it? Everyone was on TikTok .
Fb have no growth and user is moving to other platform.
Pypl/sq - fintech have same fate like Netflix. Too crowd and many way to manage your moment..
Difference is: lots of ppl buying those homes sold from higher cola areas to move there and the homes in Idaho and Bozeman are still a bargain compared to where they came from.
Imagine selling a 1 million sub 1500 sq foot home and instead buying a 750k lake home that’s 2500 sq ft…. Even if the lake home was 500k 2 years ago it still feels like a bargain
Yes. In Atlanta, we are also seeing the expansion of existing 2,500 sq. ft homes on large lots (1-2 acres) that are being expanded to 7,000 sq. ft selling for $3M +.
Smaller houses could also be built to fill this need while providing denser housing per sq mile. I’m in my early 20s with no plans for kids for about 10 years so I bought a small 3 bd 1200 sq ft starter house. I have everything you mentioned, with a small monthly payment and low maintenance effort and cost. This is a great living situation for couples without kids, older couples, or even couples who only plan to have 1 kid. Unfortunately builders (at least in my area) would never even think of building something like this, and instead build only 2500+ sq ft 5 bd McMansions with lot sizes that scale proportionally. It would be great if young couples had more options to start building equity in cheap(er) small houses that provide all the benefits of SFH.
3000 sq ft in South Florida. I have about 5 quotes from well reviewed companies and they are all +/- $5k within each other.
I didn’t put all this in my first post but looking back… while my buds were in college I started my career and was making 60k by 19. I bought 50 acres with it and built a house on… and I mean built it myself not paid for it to be built. As the family has grown I’ve built additions on and now with 4 kids we have a 5 bedroom home roughly 2600 sq ft. I make all repairs to vehicles and home myself on top of working a 60+ hr a week job. I still find I have plenty of downtime… have tons of time in the boat on the lake fishing or in a tree stand hunting. I think most people are just what I’d call lazy… for lack of a better word to call it
25 years ago my father built a 4 bedroom 2500 sq ft house on 2 acres with 4 kids on one civil service salary. My mother didn’t work. I do own a house but the thought of being able to do that in this day and age is laughable.
What if the entire space is the business, except the bathroom? It's probably about like 700 sq. ft. Total but really the whole thing will have stock/shipping/office area.
Where do you live where they’re going for that cheap? In central Massachusetts a half burned half charred house at 1400 Sq ft will still run you an easy 180k
Correct me if I’m wrong, but won’t your mortgage lender be hella pissed about this too? As well as every one who missed the processing of the home’s change in sq ft. Home inspector, appraiser, lender, etc. Unless you paid cash, they’ve got a lot of skin, responsibility, & accountability in the game too, nah?
Way back and way stupider…I was a stay at home parent with two kids with one working parent with an identical income to you and take home as you. We had a house with a mortgage of 3500 per month. (Cheapest house in the area mind you and only 1100 Sq ft) We only had one vehicle and we made it 10 years doing that. It was tough and I have regrets about sacrifices that had to be made but honestly there was no other choice because we couldn’t afford anything else. Similar rents in the area were like 2800 per month. Mortgage was 3500. We eventually moved to a lower cost of living area and things are so much better. Anyhow, I am saying it can be done but it sucks so bad! I kept the heat at 62 in the house and we all wore several layers. Yard sale clothes only, shitty food, no extras. I would not get a roommate unless it was like a cousin bc I really fear strangers and children in your situation. The only thing to make it more bearable is figure out how to make another thousand per month. One extra thousand would have changed my life back then. Maybe you have family support? I didn’t so no way to work without paying childcare. (Spouse worked 6-9 daily)
$541 a sq/ft...Holy mother of Wendy's girl.
I own a 2 bedroom apartment and I like having the extra space. The 2nd bedroom is the guest room and home office. I could imagine going a little larger — my current place is about 800 sq ft and my ideal would be more like 1200 plus a small balcony — but I don’t regret not having to maintain a whole house on my own.
That's too bad these houses are rare where you're at. My city has a ton of 1000 sq ft 2 bed 1 bath homes built in the 1920's, but even these are expensive as hell.
Dude - if you’re in construction, you should stack your money and start getting into real estate. I’ve flipped a couple homes and made almost 100k each time. I started slightly older than you and I’m sitting pretty well at 30 right now. It’s not as easy to find a deal in the housing market right now, but you just have to be patient.
Find a house that has “good bones” but is cosmetically messed up. That freaks regular people out. Throw in a $2,000 stainless steel kitchen appliance package from Home Depot, some IKEA cabinets but throw gold or silver knobs on the doors, put some $1.97 sq Ft laminate floor in the house, and paint it cream. Go buy a $400 vanity and mirror for the bathrooms…
You think I’m joking… people have no idea how much stuff costs. You can buy a completely fine house that was made 20 years ago and looks dated, throw granite countertops and a paint job in it, and someone will pay you 100k more than what you bought it for. It’s absolutely absurd…
And you can save a bunch of money doing things yourself or hiring guys on Craigslist. I’m telling you man, I flipped 2 houses this year and made more money than my job.
You just have to be careful and realize you make money when you buy the house because you have to buy it at a discount.
Stack your money at your $25 an hour job, take extra side work, do whatever you have to and save $60k. Take 40k and put a downpayment on a 200k house that’s cosmetically fucked up. Spend 20k to make it pretty, throw it on the market and sell it for 300.
Just be patient… don’t jump into a house that doesn’t meet your goals. Once you find the right one, you’ll know.
That is a shame. With Stripe people were like dont buy SQ and PYPL. Stripe is way better than both.
Also, these undeveloped areas have colder, harsher winters, are protected for agriculture and conservation, and do not necessarily have the ROI developers are looking for. I think we need to build high density, high quality, affordable housing. Imagine a condo in a suburban or rural town with shared green space and units upward of 1,500 sq feet.
Keep an eye on Block (SQ). If the next phase in evolution is ubiquitous crypto transactions, Dorsey’s company is already a lead.
Everyone told me I "would regret!!!" Buying our house in another state. We purchased a 2,700 Sq. Ft. 4 bed/3 bath house for $159k in February of 2021. It's currently valued at $258k. No regrets. I locked in at a 3.75% for 30 years
TBH I think a Dyson stick is a better investment than a Roomba. It's much better for quick clean ups and much more fun to use. It was the only vacuum I had in my 500 sq ft apartment and it was perfect.
Bought 4 acres and 2400 sq ft home built in 1993 for 77k off a foreclosure in 2013. This house is nicer than the 350k houses all up and down my street and just needed a little love. I've only spent 10-15k in all this time and it's mint condition.
Wants out of warehouse leases or permission to sublet them to the tune of 10m sq ft
Dayum that’s cheap. In Texas that won’t even buy a shack. No joke. I saw a 870sq ft home that needed to be demolished for $210k. That’s the norm here right now. My exs house was $380k before Covid. All the houses in his neighborhood are almost identical and the sq ft only fluctuates by 100 sw ft. They’re listing and selling for over $700k now.
Ohio here. Pretty much the same. I bought a nice 1400 sq ft about ten years ago for 125K and it could probably sell for maybe 250 now
360/monthly cleaning bill? 3800 sq ft house? and you are complaining about 70/month for mowing lol.
I’m invested in SQ instead. I like the Cash app better than PayPal.
I bought my house in June 2018 for 280k, which at that time was the extreme end of my budget but I know a good deal on sq/ft when I see one. Today the house is valued at 450k. Had I not pulled the trigger I would probably be priced out of the market right now
People are not investing 6 months ago, people are investing now.
The biggest joke out there is to stay away from unprofitable companies. Invest in good companies which you believe in and researched their earnings.
We saw Walmart and Target tank 20-30% in a week last week. There isn't a single safe company in the stock market. These companies tanked the entire market, while FinTech went up.
Let's just go through some of the FinTech companies:
>SQ - 28% from low on the 12th of May
>UPST - 72% from low on the 11th of May.
>PYPL - 13.7% from low on the 12th of May.
>HOOD - 29.7% from low on the 12th of May.
>SOFI - 53.9% from low on the 10th of May.
>AFRM - 77.9% from low on the 12th of May.
>COIN - 66.3% from low on the 12th of May.
When I started my business I rented a 3000 sq ft. Warehouse for 600 bucks a month and lived in the office. It actually wasn't bad.
as someone who sees a lot of building plans, the difference between a 'luxury' and not in an apartment complex seems to be the ceiling height.
standard 7-ft. ceilings, non-luxury.
8 ft. - 9ft. ceilings? luxury.
sq. footage is irrelevant, patio space irrelevant, although the luxury units have a higher-than average chance of having both space for laundry appliances in-unit, as well as having them included.
I almost stopped myself from buying a 150k townhome at the end of 2020 in the midst of covid. I'll want a yard, I said. I didn't want to share walls with neighbors, I said. But I bought anyways, since renting would cost more than a mortgage at the time.
Im so glad I did. I have 2 bed, 2 bath, ~840 Sq. Ft. I have a 15 year mortgage at 2.18%, at 900 dollar per month. I'm already getting offers from 220k to 270k. I refuse to sell.
6 years ago my 1900 sq foot house was 225k brand new construction. Now it sells for 500k. It’s stupid.
Oh the house market is most definitely crashing in the next month or so all the sudden in the last 2 weeks like 50 houses were up for sale while we get an average of 5-10 houses per month and they are all asking over 650 before Covid 650 could have gotten you a new construction house with an over sized backyard and a full second floor fully renewed on the inside now they can literally get you a 4000 sq ft (avg house is 6000 in my area) cape house that has an undone basement with around 1k sq ft of living space which is basically a shit hole
Same here. I was in the market in 2019 after many, many years of saving and working and had enough to pay $1.7M for a house with $650k down in coastal SoCal which closed in 2020. That is not for anything extravagant…2,100 sq feet but with a partial ocean view and walking distance to the beach. And that seemed like, damn am I overpaying?
Houses in this town went absolutely bonkers the last two years and Zillow now says it’s worth $2.6M, but I’m not selling because I’ve got a great 3% rate on my mortgage and plan to live here forever.
We bought our last house after the 2008 crash for a low price of $140k. 6 years later we sold it for $220k. Which allowed us to buy a house twice the size for $285k. 4 years in and it's worth almost $420k. We would love to sell and buy a sub 1000 sq ft home of a private lot. Problem is small ranch homes in our area are close to $300k now 🤣🤣🤣.
190k, 1400 sq ft, 20 minutes from the beach. It’s now worth 280k
They put in “luxury apartments” at the end of my street last year. 2 bed 1 bath 800 sq ft and no grass anywhere around it, just asphalt. $2300/month. I can piss out the window on a windy day and hit them from my 1500 sq ft 3 bed 1 bath house with $1100 mortgage. Thinking about zoning out 200 sq ft blocks of my fenced in yard to the chumps for a modest $500 per month.
Unless you're the owner of ICE and a chair of the NYSE and your wife is a senator. Your 10 million 15,000 sq. ft. house you bought 10 years ago is now only worth 4 million after you get it reappraised.
Got my house at the end of 2018. Previous owners bought the house in 2012 for ~36k. Replaced a basement wall, and added an egress window. Then some typical flip stuff after their son moved out. I got it for 6k over asking, at 103k. It was a 6 month shit show of house viewings and finally actually getting a decent house at my max budget.
Neighbors sold recently and the new family of 7, soon to be 8, paid 170k for a 3 bed 1.5 bath 820 sq foot house. 1 bed, .5 bath and 100 sq ft more than I. Shits crazy.
>Paying someone $100 occasionally to do some heavy duty cleaning is a VERY fair price.
*Sad Australian noises*
$40/hr is the starting rates for cleaners, couldn't find any decent ones after the okay lady decided that alcohol is better than work. 5 hours of cleaning (320 sq m house) and it's only Netflix-quality cleaning.
In SE Asia for $50 the same size house was spanking clean in 3 hrs. Damn.
Here, can buy 400-500 sq ft condo for this money :)
It is when an 1100 sq ft, single family home, starts at $1 million.
Nope. Live right next to the 44th largest (by population) city in the US. VA Beach. Live next to it because, like I said, if you want a cheaper house you can't live right in the middle of in-demand areas. Bought my house a little over a year ago for around 110k.
Every time people say it's not possible I ask for a zip code. Then can usually list something nearby. But it still won't matter. They will start picking it apart and moving the goalpost. They want more sq footage, more bathrooms, larger plot of land.
Or another big hurdle is that people do not want to EVER move backwards. They always want to feel like they are moving forward and making progress in their life. Sometimes you can't do it. Sometime you need to retreat and regroup. Live somewhere you don't like. Have a long commute. Take the savings earned from that setup, build up equity, and use that to launch yourself forward after 2-5 years.
I wanted to try that where I live; I ended up zoomed out to basically cover up to 100 miles in either direction from me, north and south (west of me is a swamp, east of me is an ocean). All I could find for $100K in that range was 1 bedroom apartments in 50 year old retirement village buildings, and you have to be 55+ to live there. There was also some mobile homes under 100K, but you don't own the lot they are on and have to pay lot rent. Other than that, some plots of land in BFE for that price.
3/2 1500 sq foot ranch seems to average about $500K currently around me.
Prices will come down but it won't collapse prices of all building materials are happy where they're at and they won't drop so we just going to have to get over paying 200k for a 1950's 800 sq ft shit box
Must be huge. $222/sq foot is weak sauce
We just sold our 3300 Sq ft triplewide mobile home on .92 acres for $420k here in North Texas. We bought it 3 years ago for $163k, and owe $150k.
Now we are heading out to travel for a couple years while our companies continue to grow. Bought a 2022 Heartland Cyclone 4270 5th wheel and an F350 4x4 for $140k together.
We will buy RE once the market shits the bed, my best guess is fall to winter of 2022.
Bitch, it’s not just millennials, I need to afford a house too! You really think Ima pay half a million for a 1700 sq ft house. That used to be mansion money.
Ideally you would be able to build a 4 unit property with a shared yard 4 stories high and each person gets a floor. This way each unit will be substantially cheaper and on that 200k lot you can get 4 units at 400k and yield much better profit. There is a lot of these types I'm chicago and often the units are 3 bed 2 bath or 2 bed 2 bath and 1100-1500 sq ft. It really helps promote adequate housing and more equitable land use. Sadly it's also often illegal.
2000 sq ft but it has to be gutted and it’s roof is collapsing
I live in florida. It sucks in sofa king many other ways tho. Just saw a 900 Sq ft trailer sell for 275k... so yeah. Tennessee is similar to Florida ( tax wise) except you can get way more house for the money.
I am right.
Median home price in Portland OR(a metro area)is 550k. Spending literally 30 seconds on Zillow to see what this buys you can get you anything from 1500-2500 sq foot 3Br 1-2bath. That’s significantly more than a shack.
Now let’s compare this to say, Mountain View, CA if we want to go with an extreme option. Median home price here more than 3xes over Portland, with it sitting at a cool 1.8MM median. Median incomes for the area don’t come up anywhere near high enough cor that proce
I live in Detroit, my house is over a hundred years old, needs a ton of work and is around 800 sq feet and I'm pretty sure I could get a hundred grand for it right now.
I currently rent and live in a 850sq/ft four room house and it's more than enough...
I can't get behind the idea even living in a 1500+sq/ft place...
That's so much upkeep. That's so much cleaning. That's so much more area to fill with junk you don't actually need in your life..
If it were just me (I currently live with my partner), I'd happily downsize to -/+500sq/ft
Definitely not true everywhere. A lot of cities are full of 1.5-2k sq ft new construction because you can fit more together in a community.
Would y’all sell or hold SQ? My cost basis is $42 and current price is $83
And would y’all sell or hold ROKU? My cost basis is $52 and current price is $94.
I’m mostly pretty sure about my plays, but I’m torn on those two.
Anyone have a case to make either way, regarding whether they might go back up or anything?
I also have XPO and GXO at a cost per share of like $10 and $6 respectively. Huge gainer for me but they’ve been crushed the last few months. Would y’all hold those or reallocate? Those two are mostly in my Roth whereas SQ and ROKU are taxable.
Dude, Most millennials would settle for a one bedroom studio that didn’t cost over $1000 a month. Not sure where I (or any millennial on this thread for that matter) insisted on having 3500 sq ft house with five bedrooms and three baths.
Maybe go foist your ill 🤒founded assumptions onto someone else. Before you make more an ass of yourself with those ASSumptions.
They want those Tampa FL 8000 sq ft homes for Kentucky trailer park prices 😂
Cleaner 100% pay $180 twice a month (3800 sq/ft). Mow isn’t worth it imo. Used to pay $35 every 2 weeks. But I can do it myself in 30 mins, fk that I’ll do it.
Haha affordable housing according to millennials 3500 sq 5 bedrooms and 3 bath.
You don't even have to leave the country to get a 800 SQ ft house for under 200k in a decent size city, you just gotta not be too good to live in the Midwest.
My hedge is renting, fucking AVB with my rent control. $3k a month for 1000 SQ FT 2br in LA, mortgage on an equivalent space is $5-6k + HOA fees....
Also in Colorado. My neighbor is old as fuck and moved out to a home, but he sons are going to rent his house because it's too expensive to sell. He bought this 2,500 sq-ft house in 1968 for 25k, now it's worth 750k and the tax bill to sell it would be crazy so they are waiting for a transfer from death to then sell. Get rid of capital gains taxes for homes owned longer than X number of years, that would certainly help free up some inventory.
Gen X was 28-43 in 2008 so in a pretty good spot.
I’m 1985 and lucked out. Got a 2,600 sq ft house in 2012 for only $280k in CA. Sold it in 2018 for $475k and used the equity for down payment on forever home for $680k that’s now worth $1.1m.
Also helped we went about 30 miles out of the city and got a place that quailed for a USDA loan (0% down and PMI of only around $70). Combined income was just $80k in 2012.
Exodus from NY has been insane, any open house in my area had 8-10 cars with all NY plates. Prices went from 800s to 1.1-1.2 million in a matter of months. When I talked to new neighbors who lived in from NYC they sold an apartment for 1.4 million and got a 4500 sq ft home with finished basement and a pool for 1.2 mil … so they could care less about driving prices up .
While I agree with your points, it doesn’t make the reality any different. People have moved to different areas, countries even, for less reasons, and the houses are a lot cheaper. If I moved 30 mins closer to the city the same house would be at least 75k more.
If people can’t afford to buy a house in a certain city they shouldn’t mortgage their entire future at exorbitant prices and rates and live paycheck to paycheck to stay in that specific area when there are other more affordable areas. That’s not living either.
For reference, my house is just under 2k sq ft on a decent lot with an attached garage and a 3 season porch, it was just appraised for $225k. A smaller house with no garage, but closer to the city will go for at least $300k right now
$1500 is my mortgage x 1.5, and that's for a 1800 sq ft 4BR house in the city. I love living in the rust belt lol.
I'm sorry, I don't agree. There are tons of millennials who would love to buy a smaller house. The problem isn't consumer side. It's that building houses is risky and expensive, so banks and builders want to maximize ROI. You do that with balloon frame, massive Sq footage houses on tiny lots.
That’s wild are you out west? Just sold my house in Orlando near Disney for $215/sq ft (had purchased it at $140/sf new build. Buying a 4200 sf property 45min outside of Atlanta near Marietta for $123/sf. The rate is high (5.25) but I do plan on refinancing when the eventual “officially in a recession” announcement hits and rates start to tumble again.
My household annual income is roughly 120k gross. My rent is larger than a mortgage. We rarely go out. All of our money goes to necessities, student loans and other debt. To be middle class, annual income needs to be at least 200k. Even with what we’re earning, debt to income due to student loans is too high to refinance or get a decent mortgage. We could qualify for maybe a 250k mortgage, and that’s while having a 750 credit score and never having missed a payment. It’s not about not working hard enough. We barely have enough expendable income to invest and most of it goes to a Roth so we don’t have to work into our 70s. My parents bought a 3k sq/ft house in a good town in CT for about 330k in 96’. That house would sell for over a million today. That’s 3x the value. Inflation since then is only 1.86x and median income has only risen 1.25x since then. Tell me how that makes sense. The cost of living has exponentially increased while income has not adjusted equivalently.
Yeah, no. There was a house down the street from there, better location, like 2,000 sq ft bigger, newer, that sold for $2.1M last year. This one was never worth more than $1.6M.
10% is fine by me if the home price drops significantly in $/sq ft, except it's not. Our parents paied 10% on dirt cheap homes allowing them to pay extra towards principle and get it down, and then re-fi at super low rates. We're heading towards houses whose value is up 25% from a year ago AND 10% rates.
This is the way.
Moved into a 4500 sq ft house on 17 acres last year. Moved from suburbs to more rural area of the same state.
Maybe someone can explain this to me, but how can it not be economical to build at that price when there are quite literally millions of people willing to buy it sight unseen probably 30% over your asking? Are materials so expensive it is literally impossible to sell for that low a price per sq ft and still make a profit?
Cuz its not economic to build smaller homes at $250/sq ft
this housing market bubble reminded me of the simpler times a decade ago when my friend relocated to charlotte from NJ in late 2010 with his job. he was interested in a Pulte community in a highly desirable area which had 5000+ sq ft homes, full brick, all hardwood floors,5 bed 4 bath, Bose speakers throughout the home, irrigation system installed, all bells and whistles. the seller agent would come pick him up from his apartment to show around the homes in his Audi. Asking price was $375k which my friend negotiated down to $295k and it was the model home with all upgrades bells and whistles. the same house is now close to $1.2m. I wish had the money to buy then but i am glad i was able to do so in 2012.
New construction in my area hovers close to $230-260/sq foot. Absolutely nothing sub $375k as the lower price per square foot homes are much larger ~3k square feet.
Only 5k sq ft? Poor guy. They probably felt bad for you living in such a tiny home.
Well poor retirees tend to require healthcare, as their biggest expense is subsidized by medicare. Food is minimal since they tend to eat less, if you dont travel, housing is it. If they own their own place they have limited expenses, but honestly downsizing is really important. No reason to own a 4000 sq ft house living alone. $3k a month post tax is more than enough to live on in anywhere besides an urban area.
warning: lots of anecdotes:
The mall will only be a sales and point of face-to-face contact for the company. The rent at the mall is actually much cheaper (by 50%) than in industrial areas in which the other businesses operate. I only need a kiosk and not an actual store.
Car parking is at instructors' own homes and my company will do home/high school pick-ups and drop-offs. No training will ever be close to the mall.
In my business plan, all the numbers work. I have been working at the biggest driving school in my area for the past 5 years. When I pitched this idea to my boss, he said it was an excellent idea, but he never executed it. (he's pretty old and on his way to retirement). we've had numerous coo quit because of his stubbornness to adapt.
I have so much data just from looking at my current company's financials. the market is so big that the biggest schools have a backlog of 2-4 months. Some instructors are booked out that far ahead. completely full. Road tests at the driver licensing office are booked 6 months ahead with a pretty slim chance of getting a test before then.
I am pretty much creating a replica of his company without the massive overhead costs he has. he currently has 6 industrial office locations and paying a mortgage for a .5-acre site which he will sell soon.
The mall in my area is busy and doesn't seem like it's dying at all. Based on the number of mall visitors and sales per/ sq feet. It's in the top 10 of the busiest malls in the country in 2020 on both of those metrics.
Thanks for your input and questions, gives me more to think about!
I fucking agree but the combination of zoning laws in most cities, greedy builders building minimum 4/3 3000 sq. ft homes for insane mark-ups, and so many financially illiterate people rushing to buy them (further increasing the "market price") means I either buy at all-time high prices with increasingly higher rates or wait it out.
I don't want a huge home. I want an affordable home. The US economic system is really good at trapping people into being wage slaves to survive, raise their children, and/or afford their expensive cars and homes.
I'm trying to LOWER my expenses so I can be free of US capitalism and wage slavery - they clearly don't want people doing that.
That's just a rule of thumb, it applies less in very high cost or low cost areas. If you pay $1.5M for a 3-bedroom house under 2k sq. feet, it's unlikely you'll need an average of $30k in maintenance each and every year.
The main driver for maintenance is the house itself (old/new, how well it was maintained, etc.). Note also that maintenance dollars tend not to be spread out on an average basis (e.g., you might need to spend $50k in one year for a bunch of things that popped up, and then go several years without paying anything).
I think the problem would be if they are laid off due to the recession and are forced to sell their house. By me average 1800 sq ft homes got up to $1.2 million. People were willing to pay this with mortgage rates at 2.9% but will there still be buyers when rates are 6%? Idk maybe. Your mortgage payment would be almost $2000 more a month. This is what I would be concerned about if I bought a home in the last two years.
If I permit the project then definitely will add value as it adds livable SQ footage to the property, and is considered an income generating property on the land. ADUs are common here also known as "mother in law suites". Many rent them out instead of having their MILs live there 😅
Oh wow, that would be incredible. I will look into it! Mind if I ask which city you're referring to? I may be able to use it as a comparison and inspire something here.
My city is definitely trying their best but I don't think they're here yet lol... technically I can't even build a permittable ADU right now because my main home is "too small" but they are voting this July to forgo that barrier and allow ADUs onsite with smaller SQ footage homes. Ridiculous zoning/ permit issues that have exasperated the housing crisis rolls eyes
An audiobook doesn’t give me my time back nor take away from the damning health implications of commuting. I’m not a slave to my job. I can either work from home or get to the office in 10 minutes. My rent is less than 10% of my monthly income and I live in a 2800 sq ft 4 bed 4 bath unit in the heart of the city and that’s considered expensive for my area.
Yeah same here, I held Sofi and Corsair because I was already down on them in december and thinking "I will wait for them to go back up a little then sell." They just lost 50% more, glad it was such a small part of my portfolio. I have been buying Alphabet and Alibaba those last few weeks, but I am 10% down on Alphabet already lol.
So glad that I sold SHOP, TSLA, NIO, PLTR, SE, SQ and a lot of my others speculative positions near the top considering how much they crashed so far.
As a real agent, I would say only submit an offer cheaper than the appraisal price….You wont know the appraisal price until start the process, but make sure you do get this home at a fair price.
However, DONT BUY IT OVER THE APPRAISED VALUE! Because it will take you years if not decades to get just a break even ROI. Always buy under value, if its not under value…its not worth it, thats’s Real Estate 101. The MATH has work, if it doesn’t…then none of this other stuff does not matter.
You can get a fair idea of how much your home value is once you check how much homes that has similar rooms, sq ft, and bathrooms sold for in that neighborhood in the last 6 months…Whatever that average is, that should be around what the value of your home should be.
Btw, the whole housing market is going to depreciate soon…so its more a matter if that property going to appreciate again once we’re out of our supposed to becoming recession.