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I guess my other question is I could probably change industries if white collar is seeing 10% raises quarter over quarter or whatever housing is seeing
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Apr 11, 2021 18:20
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SchnorkIes posted:I guess my other question is I could probably change industries if white collar is seeing 10% raises quarter over quarter or whatever housing is seeing Narrator: "They're not."
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Apr 11, 2021 18:22
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SchnorkIes posted:Was this a hot market? Are there any US markets not like this but with internet service and/or winter road access? Either of the two is fine. Just trying to think through my options before leaving the US over this, because I can't get expat tax breaks sailing on US flag ships. Bay area AND even in a terrible market this particular home would have been very very desirable.
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Apr 11, 2021 19:23
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lampey posted:
That's a good idea but I guess I am off the belief this will be much easier to do if it's not someone above me? 
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Apr 11, 2021 19:26
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A bridge loan appears to be very costly and the HELOC probably won’t give us enough for 20% for our next house. We have stocks we could cash out or leverage for a loan so I guess I’ll look into that next. I’m at a loss for what to do which sucks since we have plenty of equity in our house if we sold it and could move and rent temporarily but renting a big enough place for 2-3 months would probably cost as much as a loan. The last resort is selling, doing a rent back, if we can’t find something, putting everything in storage for a few more weeks until we close on a house and stay with family. What are people mostly doing in these crazy markets? Am I being wrong for not wanting to liquidate stocks and losing that long term value?
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Apr 11, 2021 19:31
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In crazy markets? Free rent backs.
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Apr 11, 2021 19:35
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Rent backs, contingent sales, and having more money than sense. And leveraging themselves to the hilt on the second house. I mean for $2k you could cash out refi your current place down to 20%. Would that get you what you need? If you have money in a taxable account you could sell it, buy, sell your old house, and pay it back. That's the richest way to do it.
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Apr 11, 2021 19:41
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H110Hawk posted:If you have money in a taxable account you could sell it, buy, sell your old house, and pay it back. That's the richest way to do it. There are loan products made for exactly this kind of situation, where your shares are held as collateral. It's almost treated like margin, but if you've got significant gains you don't want to realize right now it could be a cheaper way to go.
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Apr 11, 2021 19:52
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Motronic posted:There are loan products made for exactly this kind of situation, where your shares are held as collateral. It's almost treated like margin, but if you've got significant gains you don't want to realize right now it could be a cheaper way to go. Do most brokerages offer this and would it be cheaper than a HELOC or bridge loan? I checked with first tech but I’d have to move everything to their accounts which would be a hassle so didn’t explore the fees. I’m going to give my current brokerage a call to ask. H110Hawk posted:Rent backs, contingent sales, and having more money than sense. And leveraging themselves to the hilt on the second house. H110Hawk posted:Rent backs, contingent sales, and having more money than sense. And leveraging themselves to the hilt on the second house. You mean my 401k? We’re not in the more money than sense category unfortunately, just enough to buy a house in this area. I’d do a rent back if it was possible to buy a place in 2-3 months but we’re kind of restrictive on area. Glumwheels fucked around with this message at 20:21 on Apr 11, 2021 |
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Apr 11, 2021 20:15
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Glumwheels posted:Do most brokerages offer this and would it be cheaper than a HELOC or bridge loan? I checked with first tech but I’d have to move everything to their accounts which would be a hassle so didn’t explore the fees. I’m going to give my current brokerage a call to ask. I don't think it's "most", but I think the last time someone tried to sell me this it was somebody from Merrill. It was definitely one of the "usual suspect" big NYC firms - they were cold calling the hell out of everyone in my company after we IPOd.
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Apr 11, 2021 20:30
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What we did is buy and then sold our own house after closing. Had to qualify for 2 mortgages and take on that risk of being 100% house poor if things went south but it worked out fine. We sold ours within 2 weeks of listing so never had overlapping mortgages.
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Apr 11, 2021 20:47
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SchnorkIes posted:Ruinous state taxes are the only thing I hate more than a hot housing market! Moving to Raleigh was the dumbest idea of my life! Sup Raleigh housing market buddy, hope we aren't bidding against each other.
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Apr 11, 2021 20:51
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Glumwheels posted:Can you clarify on the cash out refinance? Cash out refinance is a refinance where you INCREASE the mortgaged amount on your home using the appraised equity. Say you bought your house for $500k and owe $400k on it today, while its appraised value is $600k. You refinance down to 20% LTV ($480k.) They write a check to the old mortgage for $400k, a check to you for $80k, and now you owe $480k on your mortgage. This is a thing that got a LOT of people deeply in trouble in the housing crisis. But for you, assuming everything stays level, you sell the old house for $600k and pay off the $480k mortgage and pocket the ~$60-80k depending on the transaction costs. You should then flip over and put that into the mortgage on your new house. 401k: No. I mean specifically a "taxable brokerage account" and is what I assumed you meant when you said you "had some stocks." You could potentially do a 401k loan to get the down payment, assuming you then immediately pay it off when you sell your old house. It's riskier than above because you're playing with your retirement money, but it's potentially cheaper.
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Apr 11, 2021 20:54
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Glumwheels posted:A bridge loan appears to be very costly and the HELOC probably won’t give us enough for 20% for our next house. We have stocks we could cash out or leverage for a loan so I guess I’ll look into that next. I’m at a loss for what to do which sucks since we have plenty of equity in our house if we sold it and could move and rent temporarily but renting a big enough place for 2-3 months would probably cost as much as a loan. The last resort is selling, doing a rent back, if we can’t find something, putting everything in storage for a few more weeks until we close on a house and stay with family. Am I missing something obvious here why less than 20% won't work for you, like 15%? Is it because 15% offers are immediately shot down as poors unlikely to secure financing? 15% worked fine for me in the Midwest but I am OK with paying PMI for some time.
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Apr 11, 2021 21:18
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H110Hawk posted:Cash out refinance is a refinance where you INCREASE the mortgaged amount on your home using the appraised equity. Say you bought your house for $500k and owe $400k on it today, while its appraised value is $600k. You refinance down to 20% LTV ($480k.) They write a check to the old mortgage for $400k, a check to you for $80k, and now you owe $480k on your mortgage. This is a thing that got a LOT of people deeply in trouble in the housing crisis. But for you, assuming everything stays level, you sell the old house for $600k and pay off the $480k mortgage and pocket the ~$60-80k depending on the transaction costs. You should then flip over and put that into the mortgage on your new house. Got it, thanks for clarifying. Yes it is a taxable brokerage account. I’m going to call them tomorrow and see what’s available. Inner Light posted:Am I missing something obvious here why less than 20% won't work for you, like 15%? Is it because 15% offers are immediately shot down as poors unlikely to secure financing? I’d prefer not to pay PMI and I’d like the best rate possibly so I’m shooting for 20%. For my current house I only put 10% down and refinanced out of PMI but in this market it’s better to have 20% and some people are offering a huge earnest money like $50k+. I even heard of someone offering over $100k. Summit posted:What we did is buy and then sold our own house after closing. Had to qualify for 2 mortgages and take on that risk of being 100% house poor if things went south but it worked out fine. We sold ours within 2 weeks of listing so never had overlapping mortgages.
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Apr 11, 2021 22:38
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Some Raleigh NC market news, 10% over asking is no longer enough. Asking: 485,000 Our offer: 537,500 Did we get it? lmao
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Apr 11, 2021 22:40
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Glumwheels posted:I’d prefer not to pay PMI and I’d like the best rate possibly so I’m shooting for 20%. If you do 10% down and can true up to 20%+ after you sell your current house this may actually be the cheapest way to go. Assuming it's otherwise a conforming loan it must fall off at 78%. 80% if you ask.
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Apr 11, 2021 22:52
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H110Hawk posted:If you do 10% down and can true up to 20%+ after you sell your current house this may actually be the cheapest way to go. Assuming it's otherwise a conforming loan it must fall off at 78%. 80% if you ask. That’s a good point too which makes the HELOC more than possible. There’s a lot of options and once I get more numbers tomorrow and put them together we’ll make a decision. I always thought once my current house appreciated enough it would be easy to buy a new one and move but nope! GEMorris posted:Some Raleigh NC market news, 10% over asking is no longer enough. I’ve been watching marriage or mortgage on Netflix and I had to stop because it was making me legit upset at the housing market there.
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Apr 11, 2021 23:36
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Woo! Looked at 11 houses, made an offer on Friday at ~3% over ask (as per guidance from our buying agent) for the one we liked the most, and got news earlier today they've accepted. I know things can still go sideways, but I'm excited.
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Apr 12, 2021 02:04
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GEMorris posted:Some Raleigh NC market news, 10% over asking is no longer enough. I'm priced out but my wife won't let us move. Edit: genuinely stressed if I'll be able to do my job safely for 4 months at sea knowing I'm plummeting out of the middle class for her sentimentality about living near friends and family. I only sleep a few hours a night and we fight about it constantly but she won't believe stories like yours and thinks we will be able to buy something. poll plane variant fucked around with this message at 02:29 on Apr 12, 2021 |
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Apr 12, 2021 02:27
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1. Had a ton of showings this weekend. 2. Apparently we have a gas leak. Getting it fixed tomorrow. 3. Offers are due tomorrow at 7pm. 4. My boss called me today (Sunday) to say he wants to meet Wednesday because our hospital system wants to make my wife and I offers to stay. 
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Apr 12, 2021 02:28
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Isn’t her family all in Denver?
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Apr 12, 2021 02:34
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skipdogg posted:Isn’t her family all in Denver? Oh no this is the fake schnorkles gimmick account you're thinking of the real one. My wife's family is in western NC. Anyway I know I can't buy into a cheap market bc real estate outperforms all other investments and nursing home / end of life care will track closer to Raleigh real estate than Ahoskie real estate so I'll need the investment in my old age. Edit: again, whose wages are increasing this fast, tech? Edit 2: is cash gift a big thing in Raleigh yet? poll plane variant fucked around with this message at 02:40 on Apr 12, 2021 |
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Apr 12, 2021 02:36
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Living in raleigh is worth the hassle IMO.
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Apr 12, 2021 02:46
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Scarodactyl posted:Living in raleigh is worth the hassle IMO. There's nothing to do here and I don't work here, I could move back home to rural eastern NC or VA for 85k. I'm just bitter that I need the investment performance, no stock is going to give me 30% and have that be a bad year. Edit: 200-300k being lower lower middle class is just something I need to learn to live with. poll plane variant fucked around with this message at 02:53 on Apr 12, 2021 |
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Apr 12, 2021 02:49
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SchnorkIes posted:
I mean that is objectively incorrect. Do Never Buy is sound advice.
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Apr 12, 2021 03:07
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Residency Evil posted:1. Had a ton of showings this weekend.
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Apr 12, 2021 03:51
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El Mero Mero posted:I mean that is objectively incorrect. Do Never Buy is sound advice. Every homeowner friend I have has made more in appreciation than salary lol. Had a huge blowup fight over this with my wife just now, she's dead set on Raleigh no matter the cost, even if we're living in a studio and barely making rent.
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Apr 12, 2021 04:48
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I have this fight almost daily now, I think it's going to end in divorce, a do never buy success story
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Apr 12, 2021 04:48
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SchnorkIes posted:Every homeowner friend I have has made more in appreciation than salary lol. Cool, let me tell you about the place i bought shortly before the 2008 financial crisis! I owned it for 8 years, 3 of those as a landlord because I couldn't afford to sell it. After 8 years of mortgage payments and putting about 10% of the cost of the house into upgrades and maintenance, I still had to bring $11k to the table to sell it. 
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Apr 12, 2021 04:52
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Tyro posted:Cool, let me tell you about the place i bought shortly before the 2008 financial crisis! I owned it for 8 years, 3 of those as a landlord because I couldn't afford to sell it. After 8 years of mortgage payments and putting about 10% of the cost of the house into upgrades and maintenance, I still had to bring $11k to the table to sell it. The factors in play in that bubble don't apply now at all, no one is going to end up upside down on a house in a market where I just got laughted out of the room by a realtor for suggesting 100% of asking might be enough to have on hand to get through the down payment, earnest, dd, appraisal gap, cash gift, and sellers costs Edit: like if I had a house right now I'd put it up for sale with a 5% fee just to make an offer, pocket all of that, and not take any offers, then repeat in a month. Actually I guess I don't need to own the house to do that, I can do that with an Airbnb
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Apr 12, 2021 04:55
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SchnorkIes posted:The factors in play in that bubble don't apply now at all, no one is going to end up upside down on a house in a market where I just got laughted out of the room by a realtor for suggesting 100% of asking might be enough to have on hand to get through the down payment, earnest, dd, appraisal gap, cash gift, and sellers costs yes but a different set of factors will be in play for the next one. If you really want in on real estate returns just invest in a diversified reit. You can get the return without the hassle and risks related to insurance, lawsuits, natural disasters, banks, neighbors, build quality, local politics, regional development and local economic trends, or property taxes.
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Apr 12, 2021 05:47
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El Mero Mero posted:yes but a different set of factors will be in play for the next one. If you really want in on real estate returns just invest in a diversified reit. You can get the return without the hassle and risks related to insurance, lawsuits, natural disasters, banks, neighbors, build quality, local politics, regional development and local economic trends, or property taxes. My dream would be a shack with a garage bigger than the house outside my old hometown bought for 80k, and hundreds of thousands in reits
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Apr 12, 2021 05:49
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What is making Raleigh such a hot market?
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Apr 12, 2021 05:52
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Bucnasti posted:What is making Raleigh such a hot market? Jobs and "cheap houses" by northeast/west coast standards. I'm just super pissy paying city prices to live where I need a car daily if I don't work here. If I need a car to live downtown, it's not a city in my book. Edit: it's hot, humid, not near any outdoor activities, no major league sports, and the long time locals are notoriously old fun hating uptight condescending Southern money. It's blue, but that's bc it's full of brunch lib transplants poll plane variant fucked around with this message at 05:59 on Apr 12, 2021 |
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Apr 12, 2021 05:57
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SchnorkIes posted:I'm priced out but my wife won't let us move. If she wants to see the emails let me know. I 100% hear you though. I'd get a substantial raise if I moved to MA, more than enough to offset the taxes, and now the housing markets are comparable (for where I'd be living at least) and its less likely to roast and/or be swallowed by a hypercane, so the only reason we are staying is family and friends, largely at my wife's request. Thankfully it isn't causing us fights but man the opportunity cost of staying around a "value" city like Raleigh once all the value is gone certainly hurts.
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Apr 12, 2021 06:02
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GEMorris posted:If she wants to see the emails let me know. My career move would be Norfolk right now, I haven't even priced it out because climate change is going to break my heart there It sucks but it's nice to be on a working waterfront instead of computer toucher town. I don't have anything in common with most Raleigh people, no offense Edit:. Like my dream before covid priced me out of Raleigh was to buy a low stress 350k place by the airport or whatever was cheap to keep my wife happy then buy a place with a garage apartment in inland VA beach where poo poo is cheap and cheerful, rent out the house through my work network, and have the ADU as my pied-a-terre there poll plane variant fucked around with this message at 06:07 on Apr 12, 2021 |
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Apr 12, 2021 06:03
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SchnorkIes posted:Jobs and "cheap houses" by northeast/west coast standards. I'm just super pissy paying city prices to live where I need a car daily if I don't work here. what college basketball doesn't count? Tunicate fucked around with this message at 06:09 on Apr 12, 2021 |
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Apr 12, 2021 06:06
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SchnorkIes posted:Jobs and "cheap houses" by northeast/west coast standards. Yuuup, Raleigh used to be the "value proposition winner" for folks in tech. The salaries weren't much lower but the housing was way way cheaper than other tech hubs. That is now over and what's left is humidity and mosquitos. SchnorkIes posted:It sucks but it's nice to be on a working waterfront instead of computer toucher town. I don't have anything in common with most Raleigh people, no offense Extreme same, ever since covid we are homebound anyhow, and only have the in-laws as guests. We get basically no benefits from being here other than my wife having some friends nearby and being within driving distance of my daughter's grandparents. Oh and I'm miserable outdoors 6 months out of the year. GEMorris fucked around with this message at 06:09 on Apr 12, 2021 |
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Apr 12, 2021 06:07
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It's expensive enough now that it would be cheaper for me to move myself, my wife, and my wife's whole family to my parent's town where I grew up and 100k is still a palace, or to move my parents and us to her hometown.
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Apr 12, 2021 06:09
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