/hmg/ - Housing Market General

If youre not 100% certain you can immediately make money off it, its not an investment, it's a liability

Yeah I've noticed this too. Also people always say it's so much work to run your properties. Do you plan on expanding your portfolio after you get your house or go into something different?

You need to go back.

Going to keep expanding, I'd continue getting more houses and 1031 exchange my cheapest ones with built equity for larger buildings immediately, but my fiancee wants to nest very badly so I'll be taking a detour. The management isnt bad, honestly. It just sucks when people leave since you need to deal with cleaning, listing, showing etc. I've had no 3am emergency calls. I am a systems engineer for my w2 and I set up my own pbx with office hours and such so I dont get calls after hours unless they specify emergency.

That's because every retard became an "expert" after 2008 and think that everytime they see prices fall it's the end times all over again. Let me make this easy for you dipshits that are gonna say "recession" because cali and NYC are falling....Prices can fall regionally, they can even collapse regionally, it is no big deal. 2008 was different because prices fell Nationally. If prices in cali and NYC fall, but they rise in places like colorado, Utah, and the Midwest, then it all balances out. Get it?

As far as Canada goes, Alberta is the only place I would consider for an investment. Canada WILL see an economic downturn in the near future. Even the USMCA is going to be hard on you. Alberta stands a decent chance of succession and joining the US in the next decade though. It is the only thing that will save them. Because of Albertas energy markets, and the need to find a suitable regulatory environment that isn't punishing will pin the underlying cause of the action.

Prices will fall during a recession. Everywhere you look the big money is saying this is the top of the cycle. If you're purchasing today to speculate on appreciation, you're retarded. 2008 was an anomaly because the crash was due to extremely unhealthy lending practices getting amplified in the market, but that doesnt mean the market won't soften.

Long term buy and hold is the name of the game, anything else is high risk high reward and extremely high "sweat equity" to pull it off

>2008 was an anomaly because the crash was due to extremely unhealthy lending practices getting amplified in the market, but that doesnt mean the market won't soften.
No shit, that is what I said. Prices falling regionally is perfectly normal and baked into the larger market because a fall in one region typically means a rise in another. IE) Migration.

most real estate is in a bubble

if you really want to invest into it do it with REITs especially if you are a us resident.

How much cash flow do you make off those properties? Is it enough to live not have to work again? I plan on pulling out my crypto gains into real estate hopefully put a down payment on a couple houses
t. Bay Area cuck

REITs are fucking stupid. They have to pay out 90% of their income by law, so while the divvies always look good, the underlying stock price is always in free fall unless they can keep investors coming. It's the nearest thing to a ponzi scheme without breaking the law.

>is it enough to live and never work again.

Between my fiancee and I, we spend approx 16-18k a yr keeping ourselves alive. We could quit our jobs today and survive indefinitely as long as our vacancy didnt suddenly become like 50% and stay that way for more than a year.

Would you guys recommend a service where you loan money for real estate and you get interest for it depending on the setup of it? I know there's some good services out there but is it worth it?

How long did it take you to save up enough for a down payment? I've always thought I needed to wait to have 20% of the mortgage otherwise I would pay crazy interest, would you agree?

>want to buy property in Toronto but prices are absolutely fucked

Please crash

Using FHA process you can put down 3.5% with low interest fixed rate. But it must be your primary residence for 2 years. I saved 10k for my first property. I ended up only needing 8k, but it was fairly easy. I had been keeping my fiancee and I going on a 45k/yr salary while she was practically unemployed. I found a new job for 65k, she got a job for 30k and we ratio split all bills and expenditures, opening me up to save approx. 30k/yr

the more you put down, the less you'll pay in interest over the course of the mortgage. Deciding how much to put down really depends on what interest rate you get. If it's high, put as much down as possible. If it's low, you'll be alright putting less down. I'm being paid a higher % in boomer dividends than my interest rate so I put less down and now have extra cash coming in every month

pic unrelated

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>2 years
1 year, but you need to build equity to refinance out of FHA

I don't know if this FHA thing exist in Canada. I am 23, getting married next year and will pay for it, saving 10k CAD by next year. This will be most of my savings (outside a 3k emergency saving account and my RRSP) gone. I am putting 5% of my salary in RRSP and my company is matching 4% of my salary. If I also put my yearly bonus in it I can put more than 10k a year just on RRSP.
Here in Canada I think you can use like 30k out of your RRSP tax free if it's to buy a home, I think Trudeau can also give you 10% of the mortgage with no interest but has to be repaid in like 15 years.
To match a 20% down payment I would need to put down something like 80k for a nice house. I was also thinking about taking a very short time (like 10y) mortgage, and making no savings during this period of time, purchasing the hose being a saving in of itself. Does that make any sense?

i bought a house march 2018 in a super hot market area, i could sell it a year later and probably make 15-20k, but idk where the fuck i would live after. one thing idk and maybe anons can help - should i be spending extra money paying off mortgage, or, putting extra money back into the house. right now i'm trying to pay off as much as possible, and only fix what breaks rather upgrade all the old stuff.

No point for a short term mortgage, all you do is tie your capital up. 30yr means with inflation your later payments are worth far less. Also if you're in Toronto, be careful. Southern Ontario in general if the drive isnt too bad and you can legally make it work I'd always recommend Buffalo.

You'll hit diminishing returns with improvements. It can be mansion luxury in a shit neighborhood and be only marginally more valuable than surrounding. Paying extra ties up liquid capital for little benefit. You're almost certainly better off taking the extra and either buying rental property or ETFs

>want into real estate
>poor fag
>whats the cheapest way for profits
>richuncles
>auto invest $5 a month in at 1k account
>divvies paid out to account, not reinvested
>now your accounts interest rate will go up forever

But if you do a 30yr payment you're paying like twice the amount in interest no? So you would say it's better to pay less every month and instead invest the difference? Good to know, might do that.

thanks user. its an older place built in 1950 but that is pretty average for the homes in the area. its small and basic but in a nice part of town/neighborhood. appreciate your advice.

>Alberta stands a decent chance of succession and joining the US in the next decade though
Imagine unironically believing this

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I don't know if this is related but if you were to own a summer house where you spend 1 to 3 months a year, how would you maintain it? I imagine that it would get dirty by the time you return so would you need to spend a lot of time cleaning it in your first couple of days? Does anyone here have experience with owning a summer house?

>I think Trudeau can also give you 10% of the mortgage with no interest but has to be repaid in like 15 years.
Don't think that becomes active until september but it's not worth it IMO because you're giving the government that % in equity. So if you got a 40k loan from it for a 400k home, and the house appreciates to 500k, you'll owe 50k on that loan if you haven't already paid it back.
Just get a 5 year fixed term mortgage with a 30 year amortization and make sure in the contract you can make lump a lump sum payment without penalty. That way you get low payments and if you have extra money at the end of the year you can dump that in and you'll pay less interest.
I have some coworkers that have summer homes or cottages, they usually spend a few days each year where they exclusively clean or repair any damage.
Might actually be a good business opportunity, hire people to clean people's summer homes each year. Especially since the drive is 2+ hours for most people, it's a pain in the ass for them to go down just to get it ready and clean it each year instead of just enjoying their time away.

REITs let me have a stake in real estate without having a loser tenant calling me at 4am to unclog a toilet. You have any better idea to profit from this sector?

>Just get a 5 year fixed term mortgage with a 30 year amortization and make sure in the contract you can make lump a lump sum payment without penalty. That way you get low payments and if you have extra money at the end of the year you can dump that in and you'll pay less interest.
That's actually great advice, thank you

You know what guys, I think this user might actually know what he’s talking about. For once this website has provided me with meaningful advice instead of
>buy my shitcoin

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> Hire a property manager.

Imagine giving up your leverage, your tax incentives, and your control to a reit...

>Imagine giving up your leverage, your tax incentives, and your control to a reit...

I have a very high time preference. Directly owning a property isn't feasible for me.

t. actual Jow Forumsowner and have 4 kids.

thoughts on buying cheap as land in Utah dessert and trying to locate groundwater and building a well to make it worth more

Insane, been studying rental buy and hodl books and internets. And on Jow Forums you find some of the most useful advise when getting the loan. Kek.

What kind of properties are these?

Those are per year. Boomers and undeclared tax money hoarders(majority of the country) have made real estate expensive for all of us.

Just be sure that you don't enter at the top of the cycle. Buying REITs is like buying a stake in a rental business. Make sure you enter/exit correctly

Question for the great user that has been replaying in this thread. My fiancee has a shitty job (retail). Would it be a good idea to buy a small apartment downtown, the kind that is not great to live in, but perfect for one or two nights as it's downtown, and give her the job to tend to the apartment while we try to AirBnB it all year long. I'm in a big city so an attractive apartment would probably get great traffic.

What I need to know is when this supposed looming housing crisis is going to take place? Will we see drops like in ‘08? Will we be able to buy a 300K for 100K like in ‘08? I’ve wanted to buy a property for three years but something is telling me there is a better entry point around the corner. Any foreshadow anons have any idea when we’ll see prices drop?

I feel like this is what this board was actually designed for. Instead of shilling meme coin people just get together to talk about parts of Jow Forums that interest them and pool their knowledge.

Not the user you’re talking about but take a look on Airbnb and see what similar rooms are going for. You can figure out how often you would need to rent it out in order to cover expenses per month (aka your breakeven) and figure out if it’s worth doing. If you think that you would only need to rent it out for one week out of the month to pay for all the bills, you’re probably golden.

Can someone explain how the US market isn’t looking like shit in the near future?

>likely at the hight of the market atm
>house prices outpace wage growth for half a decade
>millennials in general struggle with wage growth as so many boomers stayed later in the workforce due to inability to retire after losing so much in the 08 crash
>personal debt at an all time high in US
>millennials currently in too much school debt to afford mortgages as they struggle even with new car loans (generally speaking)
>boomers currently own roughly 40% of the housing market and are set to die off in the next decade
>if GOP continues to win (and it looks likely as long as DEMs are swinging far left rather than staying centrists) then immigration will remain down.

Im not saying that it’s guaranteed to readjust...but there seems to be some strong signs pointing to a likelihood to me. But I’m not into his shit, so what do I know?

you forgot QE. it literally can drag this shit along forever.