Housing Options

SecondhandSnake

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I'm no SVTP baller, and my current landlord has informed me he's putting the property up for sale. I'm open to put in an offer, but he's already received one before even putting it in on the market. The number he gave me I thought was obscenely high. But I checked at some estimates online, and sure enough it's on the high end, but it's reasonable. Somehow the property and the better part of the market has appreciated nearly 100% in the past 5 years. Insane, but it is what it is.

Now basically I'm left with the options of bidding or trying to find another place. This seems like the worst time for either with the market at all time highs and supply painfully short. I've been on the hunt for the past year or two around here and you can't even get a chance to see a house before it's pending. It seems like I'm going to have to pay through the nose for something, it's a question of what are the risks and advantages to either. If I buy this place out it's less than ideal, and I'll take a big hit if/when I sell in a down market when I find something more suitable. That all depends on what the market does, and unfortunately I don't have a crystal ball. If I look elsewhere, I'm going to have to fight tooth and nail to get something at all in such a short time period, and likely settle for something far less than ideal at a hefty premium.

Any real estate experts to chime in with their thoughts on it would be more then appreciated.
 

Junior00

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If I were single or even married without kids, I’d waste the money on an apartment or rent a cheap shithole house for the foreseeable future. I don’t see how this can hold up for much longer with everything being propped up artificially. It only takes one link in the chain to fail and everything else will follow suit, the real question is what will trigger it all first.
 

tistan

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You could just threaten to become a covid squater until September or maybe even longer if they extend it. The only prerequisite is that Covid has negatively affected you, which pretty much qualifies everyone. Shoot your landlord a fair offer and give them the option of taking it or getting no rent for a very long time.
 

SecondhandSnake

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If I were single or even married without kids, I’d waste the money on an apartment or rent a cheap shithole house for the foreseeable future. I don’t see how this can hold up for much longer with everything being propped up artificially. It only takes one link in the chain to fail and everything else will follow suit, the real question is what will trigger it all first.

That's what I've been doing where I am. Another rental right now is pretty much out of the question. Even the apartment complexes have wait lists. All the rental houses have been snapped up and flipped...this one apparently being the next in the crosshairs.
 

KingBlack

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I'm no SVTP baller, and my current landlord has informed me he's putting the property up for sale. I'm open to put in an offer, but he's already received one before even putting it in on the market. The number he gave me I thought was obscenely high. But I checked at some estimates online, and sure enough it's on the high end, but it's reasonable. Somehow the property and the better part of the market has appreciated nearly 100% in the past 5 years. Insane, but it is what it is.

Now basically I'm left with the options of bidding or trying to find another place. This seems like the worst time for either with the market at all time highs and supply painfully short. I've been on the hunt for the past year or two around here and you can't even get a chance to see a house before it's pending. It seems like I'm going to have to pay through the nose for something, it's a question of what are the risks and advantages to either. If I buy this place out it's less than ideal, and I'll take a big hit if/when I sell in a down market when I find something more suitable. That all depends on what the market does, and unfortunately I don't have a crystal ball. If I look elsewhere, I'm going to have to fight tooth and nail to get something at all in such a short time period, and likely settle for something far less than ideal at a hefty premium.

Any real estate experts to chime in with their thoughts on it would be more then appreciated.

ouch. there is no easy answer, and my heart goes out to you to be in this situation at this time. the old rule of thumb that housing shouldnt be more than 30% of your gross just isn't possible for many.

The honest truth: your wallet will decide for you. don't create a life changing event (home buying, marriage, child birth) out of haste or fear. Rent may be high, but always remember you get to walk away from it.

Good luck
 

Junior00

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That's what I've been doing where I am. Another rental right now is pretty much out of the question. Even the apartment complexes have wait lists. All the rental houses have been snapped up and flipped...this one apparently being the next in the crosshairs.

I get it man, but this is a terrible time to buy. The only saving grace is low interest rates but that’s not a good trade off when the market is 25%+ above real values. Just my opinion, and I hope you get it figured out...just scary time to buy and end up upside down in a couple years of the market slides. Be the same as 2008 all over again when all the lowlifes intentionally walked away from the homes and screwed the rest of us.
 

KingBlack

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You could just threaten to become a covid squater until September or maybe even longer if they extend it. The only prerequisite is that Covid has negatively affected you, which pretty much qualifies everyone. Shoot your landlord a fair offer and give them the option of taking it or getting no rent for a very long time.

@SecondhandSnake be careful from whom you take advice. Nothing prevents a homeowner from selling a home with a tenant. When a person buys a home, they take the contract and must allow the tenant the opportunity to finish their lease. Don't make matters worse with idle, juvenile threats. the only thing this would accomplish is getting you on a bad renters list.
 

tistan

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@SecondhandSnake be careful from whom you take advice. Nothing prevents a homeowner from selling a home with a tenant. When a person buys a home, they take the contract and must allow the tenant the opportunity to finish their lease. Don't make matters worse with idle, juvenile threats. the only thing this would accomplish is getting you on a bad renters list.
No one wants to buy a home with a non paying tenet, not to mention there are no courts hearing eviction cases right now.
 

SecondhandSnake

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Forgot to mention cost wise without getting too specific, even with an offer on the high side the mortgage plus taxes would be a pretty sizeable reduction in monthly costs for me versus rent. The only real risk there would be trying to sell it during a crash. Which worst case scenario I either sit on it or eat the loss as the cost of business when getting a property that would be unimaginable right now.

And to that effect, is there any benefit/advantage of low down payment, high, or even all cash in such a scenario?
 

KingBlack

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No one wants to buy a home with a non paying tenet, not to mention there are no courts hearing eviction cases right now.
Not everyone is on a strict timetable. The buyer could be an investor, knowing they can write off the losses. Either way @SecondhandSnake don't do anything with short term benefits what come with negative long term consequences
 

tistan

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Forgot to mention cost wise without getting too specific, even with an offer on the high side the mortgage plus taxes would be a pretty sizeable reduction in monthly costs for me versus rent. The only real risk there would be trying to sell it during a crash. Which worst case scenario I either sit on it or eat the loss as the cost of business when getting a property that would be unimaginable right now.

And to that effect, is there any benefit/advantage of low down payment, high, or even all cash in such a scenario?
What I learned from the last housing crash. I did everything right and put 25% down and bought what I could afford. When the market crashed, the banks renegotiated all the upside down mortgages. People who just walked away were able to buy homes in 2-3 years. Since I wasn't upside down on the mortgage, I got to keep paying the bill on my home that I was now $60k upside down on in equity, and I was stuck in a home for 5 years longer than I wanted to be there and i still lost about $20k when I sold it. Now, I put the bare minimum down and when this thing crashes again, I'll look for my bail out.
 

KingBlack

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Forgot to mention cost wise without getting too specific, even with an offer on the high side the mortgage plus taxes would be a pretty sizeable reduction in monthly costs for me versus rent. The only real risk there would be trying to sell it during a crash. Which worst case scenario I either sit on it or eat the loss as the cost of business when getting a property that would be unimaginable right now.

And to that effect, is there any benefit/advantage of low down payment, high, or even all cash in such a scenario?
VA Loans allow you to avoid PMI. While I realize you may not fall into this category, 20% to avoid PMI can be a reach for some. While the total price is always a determining factor, make sure the monthly cost isn't so steep that it overwhelms you. Long story short; if you can comfortably afford the mortgage, hold onto as much cash as you can
 

supercharged91m

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Im in a similar spot right now. Have a new owner of the property and i know hes gonna jack everything up by the end of the year. It's frustrating for me since work is like a scratch off everytime i start to get ahead work gets slow etc. Sometimes i feel like living out of a motorhome i swear
 

KingBlack

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@SecondhandSnake im not sure how far you are from brown and shelby county, but both are listed as being "Chronic Economic Distress" areas and should qualify for significant incentives should you buy or build a home there.
 

Junior00

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Im in a similar spot right now. Have a new owner of the property and i know hes gonna jack everything up by the end of the year. It's frustrating for me since work is like a scratch off everytime i start to get ahead work gets slow etc. Sometimes i feel like living out of a motorhome i swear

It’s honestly not a bad idea, people can’t travel and are selling RV’s pretty cheaply in our area not to mention rates are low. Buy one and live out of it for a while and then by when the market bottoms. Two couples I know have done this and they were much better off financially, but it is a pain being in confined quarters. If you’re single rock on.
 

MG0h3

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Forgot to mention cost wise without getting too specific, even with an offer on the high side the mortgage plus taxes would be a pretty sizeable reduction in monthly costs for me versus rent. The only real risk there would be trying to sell it during a crash. Which worst case scenario I either sit on it or eat the loss as the cost of business when getting a property that would be unimaginable right now.

And to that effect, is there any benefit/advantage of low down payment, high, or even all cash in such a scenario?

If the current cost of a home there is still less than rent, then buy.

I’ve never lived in an area like that.

Typically you will get in rent for about what you pay on a house with your standard 20% down and at the old @5% interest rate.


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