Housing ROI, how much to expect?

Hi Jow Forums
I'm a soon to be medical resident with student loan debt. I don't want to rent, but buy a house to reduce income lost and held. However, I will be a surgical resident for the next 5 years. If I buy a small house or apartment for about $150,000, how much can I expect to turn that around and sell it if I leave the area after training, with 15 to 20% down for the mortgage.
Should I do a 20 year, a 30 year mortgage?

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You will probably only lose 40% if you want to buy the top

Always do 30 year mortgage, to reduce the monthly payment, if you have cash, you can always just pay it off faster.

You can expect around a 3-4% appreciate in the house every year, assuming the town it is in isn't in the decline or niggerfying. 5%+ in a major metropolitan area.

The beauty of real estate is that you get to make money on tthe full cost of the house, while only 20-30% of that money is from your own pocket. You just need to calculate whether if the interest on the mortgage will cost more then rent save + expected appreciation over the time period. There is also the financing fees and brokerage cost if you wish to hire a real estate agent to handle the sales of the property.

About $150,000
but tax benefits
talk to your tax professional

>if you want to buy the top
I'm a medical autist, can you please tell me what this means? Can't into non medical lingo well.

I likely won't be paying it off before selling it. Residents only make 50k a year. Its a small, growing but otherwise isolated city with dindu decline. So still do 30 year to reduce monthly, doesn't that increase the amount of the loan?
>brokerage
I've heard that's 10%, so I've factored that in.

What are the best ways to appreciate it?

I would go with a 30 year mortgage vs the 20 year mortgage. That being said, I think you should look more into the area of a 5-1 ARM or a 7-1 ARM. You dont need to worry about your introductory rate increasing as you said are not planning on living in it for more than around 5 years. See if you can capitalize on a lower interest rate in the mean time.

Just read
>I'm a medical autist

Adjustable rate mortgages typically have lower intro rates than a 30yr fixed

hadn't heard about it, but will look into it, thanks!

that sounds nice, as I was just reading about too. I assume that it will bite me in the ass somehow but for now seems like a good bet. Is the down payment higher in these cases?

Test

It only increase the interest paid if you hold it for the entire 30 years. Once you sell the house, the mortgage will be paid off in full at closing.

If you can qualify for a 30 yr loan you could most likely qualify for an ARM. No difference in down payment. You said you were a student so it sounds like this is going to be your first house, keep in mind there are federal first time homebuyer options for financing with a smaller down payment.
Here is an article I found that really spells it out for you

fool.com/mortgages/2017/03/29/3-reasons-an-arm-mortgage-is-a-good-idea.aspx

Housing is at the top of the market, they are more expensive than ever. If the bubble bursts again, you may find yourself paying a 150K mortgage on a house that is worth less than 100K dollars.

>fool.com
this is my speed. thank you

gotcha, thanks

Another question: how much does renovating a house improve its value? Is it better to buy a $150k house and put nothing into it, or a $100k place and remodel with $50 or whatever to some degree? which improves resale?

no idea.
Im starting a real estate investing company soon and I have some partners that are loan officers.

I am also interested in the answer

The goal of renovation is mostly to sell the property faster, you should expect to recoup the cost of the improvement, rather than making a premium on the improvement. Unless you find a sucker.

>rather than making a premium on the improvement
man. makes no sense to me how real estate appreciates other than just sitting there then.

Also, don't expect to be able to time the market. Many a fool tried that and get burned, they see a string of bull runs, then they think to themselves that it must fall soon and vice versa. National data on real estate tend not to reflect the specific area you're working with. It varies wildly from area to area. Some places depreciate during a recession, some holds their value or even appreciate.

If the numbers work out for you, chances are it will go in your favor. If the numbers don't work, and you expect to make your money through wild speculative appreciation, you're just gambling.

Maybe the owner can't wait years for something to sell at the price they want, so they make a small investment to get the money faster

Real estate is inflation protected. As the monetary supply increases, real estate appreciate. Land is also a limited asset, as the population increases, so does demand for housing and land. Immigration accelerate that affect. Of course, not all area appreciate at an equal pace. The highly sought after population center, appreciate significantly faster, since you have more wealthy investors competing for land and rights in those area.

where do you seek data for local real estate markets?

gotcha. is that what 'flipping' is?

Flipping is to find suckers to buy your cheaply masked pieces of shit. You put a coat of paint over a piece of garbage and sell it to suckers for a premium.

>flipping
More or less. Owning a house is fucking expensive. Unless the house is your primary residence, you probably want to get rid of it and make your money as fast as possible.

You're buying the top, user.

are there housing forms that are less on average at their top, to lose less, such as buying an apartment or condo?

I need housing. Making a profit would be nice but even losing some is better than throwing away rent.