Housing Market Question

[hmgROCK]

Thank you... As indicated, I got lucky and picked up the rental at a super low price. So, even if I did not have renters, I am able to swing both mortgages. I am not so concern about not making payments, I am more concern about when to sale is I do decide.

Buy low, sell high

$350k is a lot of money if you can sell for that price
GRATZ your gains and fawk you-wallstreetbet

[lilly]

Great advice Lilly... very insightful and thoughtful. I do agree with a lot your assessment.

I really love the idea of not having a mortgage hanging over my head and that may still be the option I will most likely take. However, I don't want to leave any money on the table should hone prices keep going up. The good thing is I don't really need the money right now as I still have 7 more years on my plan to retire at 55. Also, I am still making money off the rental. One of the disadvantages of being single is I sometimes think too much and never take action.

I understand it's a tough decision.  I struggled with what to do with my second house too.  But I decided to sell it because I'm not a handy woman and I'm not able to fix things when things break down.  Plus, it's stressful dealing with tenants and the turn over of tenants.  I was not and still am not at a place in my life where I could/can handle stress. It just wasn't to my benefit to have a rental, being a single mom. But having a rental in general has its benefits, if you are a handyman and are able to fix things when they break down.  You not only get the monthly flowing income from the rent, your gain in the rental property value over time is also huge.  The tenants are basically paying off the rental for you!  How cool is that?!  Plus, if your rental is in an area where house values will just continue to rise in the future (from $350K to $500K potentially, for example) then it's so much better to just hold on to the rental.

On the other hand, being mortgage free is pretty awesome too!  You would be saving the money that would have gone towards the mortgage every month... for example, if your monthly mortgage is $1500, that is a savings of $18K per year.

In the end though, if I were a handyman and I could handle the stress of being a landlord, it makes more sense to keep the rental.  The long-term benefits of having the rental outweighs the short-term gain of selling it, in my opinion.

[lilly]

If you think $350K will be close to the max you will ever get for the house and the house is not in a super great area... it might be worth it to sell now too.  So many decisions!  Good luck!

[lexicon]

Thank you... As indicated, I got lucky and picked up the rental at a super low price. So, even if I did not have renters, I am able to swing both mortgages. I am not so concern about not making payments, I am more concern about when to sale is I do decide.

Being that it's a seller's market right now you might want to consider selling then. The alternative would be to wait another decade or longer before we hit this point in the cycle (or so we can safely assume). It's not unheard of right now to get 10%-20% above market value. Good luck with whatever you decide.

[hmgROCK]

Being that it's a seller's market right now you might want to consider selling then. The alternative would be to wait another decade or longer before we hit this point in the cycle (or so we can safely assume). It's not unheard of right now to get 10%-20% above market value. Good luck with whatever you decide.

Lol

Thats white man’s game
I’ve been preaching about
We all are player, rather you like it or not

Everyone and everything is making money these days
Housing, stock, bonds, shoot even bitcoin

Hahhaha

[Kong Vang]

Being that it's a seller's market right now you might want to consider selling then. The alternative would be to wait another decade or longer before we hit this point in the cycle (or so we can safely assume). It's not unheard of right now to get 10%-20% above market value. Good luck with whatever you decide.

Hey Lexi... you touched on some very good points.

On a side note, do you think there will be a drop in home values, if so, do you feel it would be equal to the last crash?

Lilly pointed out and I agree with her assessment: One, homes being purchased after the "Crash of 2008" are under stricter lending guidelines and policies. Two, yes people are out of work, but only because the economy is artificially closed (mainly by Covid). And three, interest rates are still at historical lows.

I do see the market leveling off and in a worst case scenario, taking a little dip, but I don't really see a repeat of 10 years ago, do you?

For me, I may just end up flipping a coin.

 

[hmgROCK]

Hey Lexi... you touched on some very good points.

On a side note, do you think there will be a drop in home values, if so, do you feel it would be equal to the last crash?

Lilly pointed out and I agree with her assessment: One, homes being purchased after the "Crash of 2008" are under stricter lending guidelines and policies. Two, yes people are out of work, but only because the economy is artificially closed (mainly by Covid). And three, interest rates are still at historical lows.

I do see the market leveling off and in a worst case scenario, taking a little dip, but I don't really see a repeat of 10 years ago, do you?

For me, I may just end up flipping a coin.

Nope!

There won’t be another housing crash
Because uncle sam will just buy all the mortgage loan
They will just pay the landlord and etc...

You can bookmark this page and comment
For future reference
2008 was a ONCE IN A LIFETIME OPPORTUNITY

[lexicon]

Hey Lexi... you touched on some very good points.

On a side note, do you think there will be a drop in home values, if so, do you feel it would be equal to the last crash?

Lilly pointed out and I agree with her assessment: One, homes being purchased after the "Crash of 2008" are under stricter lending guidelines and policies. Two, yes people are out of work, but only because the economy is artificially closed (mainly by Covid). And three, interest rates are still at historical lows.

I do see the market leveling off and in a worst case scenario, taking a little dip, but I don't really see a repeat of 10 years ago, do you?

For me, I may just end up flipping a coin.

It depends. Like many things the housing market can be cyclical. Prior to the housing market crash in '07-'08 we saw a rise in home values, a demand for housing, then came the subprime lenders/mortgages and then when people couldn't afford to pay back/off those loans...the bubble burst.

I think we'll have a better gauge ONCE we've reached the point beyond a seller's market and home values start declining. It's way too early in the game to make any accurate predictions.

[hmgROCK]

It depends. Like many things the housing market can be cyclical. Prior to the housing market crash in '07-'08 we saw a rise in home values, a demand for housing, then came the subprime lenders/mortgages and then when people couldn't afford to pay back/off those loans...the bubble burst.

I think we'll have a better gauge ONCE we've reached the point beyond a seller's market and home values start declining. It's way too early in the game to make any accurate predictions.

Nope!

Uncle sam is going buy it all
They already paying lordland with all these stimulus bill
It ain’t going crash
Got full government backing

I see nothing but MOON and ROCKETSHIP
I won’t short this market or anything

[hmgROCK]

LEXICON

I will wager with you $10 for fun
Thats “this housing bubble” will not happen
One year bet, so this same day next year

[lexicon]

 

Unless you're willing to honor a wager over a decade from now, I'm out.

Look up nonprime lenders and get back to me in about 5 years and I'll think about it though.

[hmgROCK]

Unless you're willing to honor a wager over a decade from now, I'm out.

Look up nonprime lenders and get back to me in about 5 years and I'll think about it though.

UNCLE SAM already bailout the housing market with

1. RENT ASSISTANCE
2. PPP
3. Stimulus check
4. Fed buying mortgage loan

“This housing market crash” yall speak off is a NO GO

[lexicon]

UNCLE SAM already bailout the housing market with

1. RENT ASSISTANCE
2. PPP
3. Stimulus check
4. Fed buying mortgage loan

“This housing market crash” yall speak off is a NO GO

1. Aug 2007, the Fed Reserve added 24 BILLION in liquidity to the banking system
2. Sept 2008, Congress approved a 700 BILLION bank bailout
3. Feb 2009, 787 BILLION economic stimulus package

Bubble still went pop! History repeats itself IF we don't learn. All it'll take is a few greedy individuals looking to line their pockets.

[hmgROCK]

1. Aug 2007, the Fed Reserve added 24 BILLION in liquidity to the banking system
2. Sept 2008, Congress approved a 700 BILLION bank bailout
3. Feb 2009, 787 BILLION economic stimulus package

Bubble still went pop! History repeats itself IF we don't learn. All it'll take is a few greedy individuals looking to line their pockets.

BAILOUT helps the economy,,, bro

Oh I don’t know
I was a young joe back than
Just started working, making money

Saw all these cheap ass, nice houses too
Going for dirt cheap

So i bought it

ONCE IN A LIFETIME OPPORTUNITY
PURE LUCK

[hmgROCK]

1. Aug 2007, the Fed Reserve added 24 BILLION in liquidity to the banking system
2. Sept 2008, Congress approved a 700 BILLION bank bailout
3. Feb 2009, 787 BILLION economic stimulus package

Bubble still went pop! History repeats itself IF we don't learn. All it'll take is a few greedy individuals looking to line their pockets.

Well

We both can’t choose up
So i will choose down

50/50 chance