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QuarkJets posted:Admittedly, low interest rates actually made me hesitant to buy. But there's no point in waiting forever for a rate hike and then for home prices to adjust. You and others are assuming that as interest rates increase, home prices will decrease such that the monthly cost of ownership for mortgage holders will remain similar, which has historically not been true in the United States.
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Jun 13, 2015 14:38
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BEHOLD: MY CAPE posted:You and others are assuming that as interest rates increase, home prices will decrease such that the monthly cost of ownership for mortgage holders will remain similar, which has historically not been true in the United States. Home prices move lockstep with wages in a given market. It's really hard to decouple interest rates from home prices because interest rates are essentially the same for the entire country, but local wages vary all over the place and are relatively volatile. In addition, the FED generally raises interest rates when the economy is good and lowers them when the economy is in recession. So it's hard to just say higher interest rates make home prices go down, when the things that make the FED raise interest rates can cause home prices to go up.
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Jun 13, 2015 14:47
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BEHOLD: MY CAPE posted:You and others are assuming that as interest rates increase, home prices will decrease such that the monthly cost of ownership for mortgage holders will remain similar, which has historically not been true in the United States. I know it's not simple to understand, and anyway I should just buy my house expecting to stay there forever and not care about future prices, 
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Jun 13, 2015 17:43
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moana posted:
Probably this, the concept that you're going to "trade up" every 7 or 8 years is silly.
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Jun 13, 2015 18:13
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moana posted:Do you have charts that show this? I'm curious what to see what it looks like when interest rates rise. I'd guess more people would just wait to sell their homes because everyone has refinanced at peak price, decreasing inventory and maintaining the same price as interest rates rise? http://www.bankrate.com/finance/mortgages/rising-rates-lower-house-prices.aspx Just one quick example. I agree that you should buy if and when it makes sense for you personally and financially and don't think too hard trying to time your market against numerous local and national factors.
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Jun 13, 2015 18:17
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Dik Hz posted:My advice is based on anecdotes, but your advice is bad because its based on anecdotes. I can also point out that there many examples of people successfully selling CutCo knives, but we don't generally advocate for that around here. A single story is an anecdote, whereas I was referencing statistics. There are hundreds of millions of dollars paid out in title claims every year. That's not an anecdotal argument. quote:Also, you pretty much turned swenblack's argument that people should do research based on where they live into the "my dad works at nintendo" argument. I don't think you can accuse other people of strawmanning. Are you sure? If you go back and look at his first reply, its primary thrust is the "my dad works at nintendo" argument. I didn't put those words there. swenblack posted:You should understand what you post before you post it. I understood what I posted perfectly well. You should chill out a little and stop being so hostile. So I take it your 4% number was just for extended policies. Can you provide a citation for that? quote:I'm not constructing a strawman argument here. You blindly advocated that Jose Cuervo get enhanced owner's title insurance. No, I just made a recommendation that I think is correct. I never said to not do any research. I'm not anti-research, please stop trying to say that I am. QuarkJets fucked around with this message at 18:45 on Jun 13, 2015 |
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Jun 13, 2015 18:33
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BEHOLD: MY CAPE posted:http://www.bankrate.com/finance/mortgages/rising-rates-lower-house-prices.aspx After reading the link, they're basically saying that rising rates do decrease home prices, there's just not a perfect correlation between the two because home prices are effected by more than just interest rates. I agree with that.
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Jun 13, 2015 18:39
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drat, you all sure like to beat a dead horse... We close in 11 days! Assessment came in at exactly our offer price, so the assessor obviously had no idea whatsoever what value was required in order for us to proceed with the transaction with no more negotiations.  We got our commitment letter from the bank so in theory they are satisfied with our application... I'm sure they will contact us two days before closing requiring an explanation on something dumb like multiple cash deposits (I work as a musician on weekends, gigs are paid by check or cash, and I have two years worth of tax documentation for this income) or something. We are currently waiting on our homeowners insurance - met with our agent earlier, he said he will be contacting our lender to make sure the policy and the purchase paperwork line up properly, and he needs to visit the property for photos which I assume will be sent to their underwriters. The tenant isn't going to be out of our house until the 15th, so he won't be visiting the property until then. How long should we expect it to take for our policy to be finalized, so we can pay for the first year and have that ready for closing?
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Jun 13, 2015 19:11
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Citizen Tayne posted:Probably this, the concept that you're going to "trade up" every 7 or 8 years is silly. My current plan is to keep buying houses as investment properties and renting them out (particularly in areas with low rental stock) as long as people will continue to give me (or my company) mortgages to do so.
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Jun 14, 2015 00:33
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CaseFace McGee posted:Assessment came in at exactly our offer price, so the assessor obviously had no idea whatsoever what value was required in order for us to proceed with the transaction with no more negotiations. The agreed-upon price between the seller and the prospective buyer is very strong evidence of the market value of a home. It is the basic assumption: from there, an assessor's job is to look for strong evidence that that number is wrong. An assessor doing their job properly does not shift the number unless comps and trends clearly show that it's wrong.
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Jun 14, 2015 05:02
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Yeah considering the assessor probably got the purchase agreement to begin with and put it on page one of the appraisal report, they knew. Good news is for some weird reason the lender thinks that is cool and good whereas if that ever happened on a refi they would probably kill out the loan for fear of getting boned.
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Jun 14, 2015 16:58
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gtkor posted:Yeah considering the assessor probably got the purchase agreement to begin with and put it on page one of the appraisal report, they knew. That also makes sense because the sales appraisal is taking place at the time of the sale, while an appraisal for a refinance is generally not taking place at the time of the sale.
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Jun 15, 2015 06:25
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The HOA board president at the condo complex where I live is a tremendous rear end in a top hat. A couple years ago, my wife and I inherited a condo that we've been living in and saving up piles of cash for a down payment on a SFH. We're ready now, and we want to rent out the condo for extra income. The HOA confirmed for me that we can rent the unit out once we buy, but we'll have to do it quickly since literally only one more unit can be rented out before the complex hits the rental capacity. The board president came to my place and told me that he was planning on buying another unit here and renting it out, and I had better not rent mine out or he'll make my life hell.  I'm not sure why he can't just change the rule to allow more renters. In any case, do never buy a condo.
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Jun 16, 2015 17:01
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Offer to sell him your unit?
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Jun 16, 2015 17:07
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Suck him off?
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Jun 16, 2015 17:11
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A COMPUTER GUY posted:I'm not sure why he can't just change the rule to allow more renters. In any case, do never buy a condo. There's actually a very good reason for this. Banks are reluctant to issue loans for condos in communities that have a low owner-occupancy rate. Once you pass that threshold everyone's property value plummets because a lot of buyers simply won't qualify. eta: Specifically, FHA loans require 51% owner-occupancy. I imagine there are requirements for other types of loans but I don't know for sure.
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Jun 16, 2015 17:28
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Even on conventional loans, it can raise red flags if occupancy leans too far toward rentals. It isn't the immediate no go that an FHA situation might end up being, but you do start to lose some qualified buyers if you go to 51% on some conventional products as well. Long story short, condos want a lot of different owners and they want them to be living there.
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Jun 16, 2015 17:33
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Also, changing the rules usually* requires submitting the change to the whole HOA for approval, since it's a by-law update. *depending on the rules in your local governing area or whatever
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Jun 16, 2015 17:34
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I also want to add that I was a potential buyer 7 years ago for a condo. I found a small but totally remodeled in a decent neighborhood and priced at $89k which was an anomaly because similar units were selling for $125k. When I started to investigate putting in an offer I figured out the vast majority of the complex was rentals and pretty run-down and my loan wouldn't qualify so I backed out of the market. The HOA totally failed that community and the owners lost their asses. The unit would have been great for someone who could put down 20-25%, but the people who could afford that weren't going to live in that community. You're left with "investors" as the only really interested buyers.
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Jun 16, 2015 17:43
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A COMPUTER GUY posted:The board president came to my place and told me that he was planning on buying another unit here and renting it out, and I had better not rent mine out or he'll make my life hell. Did you tell him to kindly gently caress off and that if he tried anything he would be hearing from your lawyer? If you are allowed thru the HOA to rent the property out and it's "first come first served" and you beat the guy to the last open slot, then what can he really do? Just get something in writing confirming that you are allowed to rent the property and proceed accordingly. "Board President" lol
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Jun 16, 2015 17:50
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Also, you might have to suck him off if you really want to rent that property out. It's in the rules.
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Jun 16, 2015 17:53
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A COMPUTER GUY posted:The HOA board president at the condo complex where I live is a tremendous rear end in a top hat. A couple years ago, my wife and I inherited a condo that we've been living in and saving up piles of cash for a down payment on a SFH. We're ready now, and we want to rent out the condo for extra income. The HOA confirmed for me that we can rent the unit out once we buy, but we'll have to do it quickly since literally only one more unit can be rented out before the complex hits the rental capacity. If you have lived there for 2+ years and decide to rent it out wouldn't you be in a different category than someone who hasn't?
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Jun 16, 2015 18:32
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lampey posted:If you have lived there for 2+ years and decide to rent it out wouldn't you be in a different category than someone who hasn't? The board president was probably just bluffing in hopes that this guy would suck him off. That's just how business is done.
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Jun 16, 2015 18:34
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Do never suck him off.
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Jun 16, 2015 18:52
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QuarkJets posted:After reading the link, they're basically saying that rising rates do decrease home prices, there's just not a perfect correlation between the two because home prices are effected by more than just interest rates. I agree with that. This one has a lot more historical data and says there's generally no corrolation between rising interest rates and higher home prices. Higher rates can slow the market, but rising rates are tied to a growing economy which pushes up home prices regardless. http://www.theatlantic.com/business/archive/2011/07/how-rising-interest-rates-affect-home-prices/241504/
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Jun 16, 2015 18:56
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Is there really anything the HOA can do to keep you from renting? I thought those threats were all bogus because all they can do is foreclose and they don't have the money to outbid you at the foreclosure sale.
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Jun 16, 2015 20:25
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Why would they need to outbid you? They would receive the proceeds of the foreclosure, up to the amount of their lien.
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Jun 16, 2015 20:44
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Yeah, you absolutely do not gently caress with HOA liens. We're gonna proceed with the original plan, and if someone else decides to rent theirs out before us, oh well we'll just sell ¯\_(ツ)_/¯
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Jun 16, 2015 21:58
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Never buy a condo. Never invest in a condo for renting. Never gently caress with HOA bullshit. Do Never. I mean I know there's a bunch of goon condo-owners who are doing fine, but good grief there sure are a lot of horror stories, too.
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Jun 17, 2015 00:45
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Leperflesh posted:Never buy a condo. Never invest in a condo for renting. Never gently caress with HOA bullshit. Do Never. I have a friend who was hassled by his dad to buy in order to take advantage of the tax credit in 2010, so he bought before he was able to afford a real house and got a lovely condo in a building in bad financial shape. Now he's home-poor due to special assessments and never goes anywhere.
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Jun 17, 2015 00:58
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Yeah, seriously. We would have never bought this place on our own, but once wifu inherited it, it was MUCH cheaper to pay the artificially low property taxes (thank you prop 13), condo insurance, HOA, and what little maintenance the place has really needed over renting somewhere else. We're also fortunate in that the HOA is sane and has a positive cash flow plus a reserve fund, so we haven't been nailed by any special assessments since we moved in.
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Jun 17, 2015 01:11
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A COMPUTER GUY posted:Yeah, seriously. We would have never bought this place on our own, but once wifu inherited it, it was MUCH cheaper to pay the artificially low property taxes (thank you prop 13), condo insurance, HOA, and what little maintenance the place has really needed over renting somewhere else. We're also fortunate in that the HOA is sane and has a positive cash flow plus a reserve fund, so we haven't been nailed by any special assessments since we moved in. 
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Jun 17, 2015 01:52
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Star War Sex Parrot posted:Hey hook me up with some cheap rent. "no goons" is the gonna be the first thing on the for-rent listing
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Jun 17, 2015 05:49
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I kind of like my HOA. Keeps the neighbors grass mowed since not everyone who can afford a house apparently also possesses the ability to maintain it without prompting. My $360 a year also gets me access to the pool and pays for my trash and recycling. I would've had my approval to build my fence the day I submitted it, but our management company is poo poo and dumb. Our HOA president is an old lawyer who does everything in the interest of "not wanting to gently caress with people." It works out nicely. I understand this is not a normal experience though.
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Jun 17, 2015 14:22
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No Butt Stuff posted:I kind of like my HOA. Keeps the neighbors grass mowed since not everyone who can afford a house apparently also possesses the ability to maintain it without prompting. My $360 a year also gets me access to the pool and pays for my trash and recycling. I would've had my approval to build my fence the day I submitted it, but our management company is poo poo and dumb. Our HOA president is an old lawyer who does everything in the interest of "not wanting to gently caress with people." I think your experience actually is pretty normal. Nobody talks about every day occurrences, they talk about bad stuff. I would love a neighborhood pool, and while my neighborhood is in good shape my next door neighbor literally has old white carpet covering a corner of his lawn. I have an friend who represents a lot of HOAs in the area and she said the condos are mostly fine because their rules are well written but townhouses are an absolute nightmare because of ambiguity over who's responsible for what. The bigger problem with condos is they aren't as reliable for cashing out as a SFH.
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Jun 17, 2015 15:15
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There's kind of two different arenas of HOAs. On the one hand you have guys like No Butt Stuff whose HOA is probably just a normal neighborhood with some shared open space, maybe a pool, but that's it. A few hundred dollars a year isn't that big of a deal, and presumably the rules about what color your house can be and whether you can park in your own driveway are relatively lax. On the other hand, you have your gated communities, condos, townhouse developments, etc. where your HOA fees are $300+ a month, there's a thick manual of regulations that restrict all kinds of stuff from how many inches your lawn can be to a requirement to have curtains instead of blinds in your front window; authoritarian busybodies permanently entrenched in the HOA board, lording over their petty fiefdoms like medieval nobility; budget shenanigans, potentially enormous shortfalls, etc. etc. There are places in this country where it's very difficult to find a house that isn't under an HOA umbrella of the latter type, and there are other areas where it's pretty uncommon outside of a condo or townhouse development on the outskirts of major cities.
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Jun 17, 2015 18:50
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My friend lives in one of those HOAs where in addition to all of that they've banned barbecues/outdoor cooking of any kind, indoor and outdoor smoking anywhere on the property and all cats and dogs. No grandfathering if you smoked before or had a dog before you quit or give the dog away or start getting regular fines that start at $500. Never underestimate the ability of rich white people to impose their lovely worldview on everyone else.
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Jun 17, 2015 20:15
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I've been on my HOA board (9 people in a community of ~70 townhomes) since I moved in a few years ago. $700 a year pays for maintaining green space, trash, recycling, snow removal, and paving the road every 20 years or whatever. I don't particularly enjoy going to the monthly meetings, but they're not that bad and it's the least I can do to ensure that my dues stay low and that I'm in a position to stop dumb poo poo like "no outdoor cooking" from every becoming a thing.
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Jun 17, 2015 21:24
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Voodoo posted:I don't particularly enjoy going to the monthly meetings, but they're not that bad and it's the least I can do to ensure that my dues stay low and that I'm in a position to stop dumb poo poo like "no outdoor cooking" from every becoming a thing. My HOA is fine because 90% of us participate. Nothing gets imposed on anyone, you either win the vote or you don't.
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Jun 17, 2015 21:33
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Over 800 homes in my subdivision and 15 people showed up to the last annual HOA meeting. People give no fucks.
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Jun 18, 2015 04:41
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