From what I could tell they seem to ignore Credit as long as its over ~700 or so. They just want to establish stable employment history so they know you arent going to default In 6 months.
The housing market
- Thread starter Never_Enough
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From what I could tell they seem to ignore Credit as long as its over ~700 or so. They just want to establish stable employment history so they know you arent going to default In 6 months.
exactly, they PROBE you nowadays. Debt to income ratio, w2s, steady income, assets, everything. They aren't just throwing money to people like they were in 05 06 07 etc. Which is absolutely a good thing. I think the prices are so high because of strong economy and job availability. They say the housing market circulates in 12 year cycles with 6 years being the peak. If that is true we would be close to the bottom of the 12 year cycle (2008 crash). The interest rates are still close to 4% which is still VERY low. 3% for a 15 year....For **** sake in the 80s it was close to 16 percent !!! Hell if we had those rates nobody would buy. Regardless I advise you guys to sell, especially if you have DOUBLED your money. Take your money, and bury it. Hell, buy a 30ft trailer and live in that for 5 years. Like I said it's all about TIMING. Sell when it's high, like it is now. wait for a CRASH and BUY. I don't see a house as a 30 year investment. I see it as a short term profit. You want to keep moving until you are ready to retire. Buy, sell, profit, upgrade. Rinse, repeat.
So much THIS. I’ve seen the market crash and recover 3 times during my lifetime.
I’ve been able to capitalize once. I have a little over a year left (i refuse to pay capitol gains tax) and im cashing out big and renting again until another big crash. Rinse, repeat.
The market is on FIRE here...so many places selling for insane prices that i cant wait to list my place and watch the ensuing feeding frenzy.
Not everyone thinks the same way. Is there money to be made that way? Sure, maybe. However, if you get into a house that you'll spend 30+ years in, who cares what the market's doing? As long as you did not get into too much house than you can afford, just keep paying that mortgage down/off and be happy. That's our plan. If we keep on track, we'll have a paid off mortgage before the age of 45. Then it's cash piling time for early retirement.
Heck, if the value did tank, then my property taxes go down. WIN!
It's the same as our car values. Some guys fret over resale because they can't stay in a car longer than 2 years. Others buy what/when they want and hold on to it for the long haul.
Me either. I didn't plan to live in the last home I owned forever & I won't be in whatever I buy next forever either. Plan is to live in it for a few years, sell for profit & upgrade. However, it would be great if I could land a home I could see myself in 30 years from now.
That's to much moving. It'd take me a week to move my shop.
Constantly moving isn’t practical. Especially if you have kids. I don’t believe in having one house for ever(unless it’s the perfect house already) But I don’t believe moving several times either.
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Bought my first two homes by myself and built my current house in 06' on my own...
Two years ago my wife and I refinanced our house (the one I built) to pull out money ($125K) for home improvements. I have been at the same job for 20 years (union scale chemical worker) and her as a RN for 15 years, both have 800+ credit scores and no debt other than our current mortgage. The lender almost wanted our first born child to get the deal done lol, they're definitely not giving away loans like in the past.
Two years ago my wife and I refinanced our house (the one I built) to pull out money ($125K) for home improvements. I have been at the same job for 20 years (union scale chemical worker) and her as a RN for 15 years, both have 800+ credit scores and no debt other than our current mortgage. The lender almost wanted our first born child to get the deal done lol, they're definitely not giving away loans like in the past.
problem with that plan is that rents here could eat your profits before the crash. Rents are crazy in SD, just as crazy as the cost of a house.
I found such a house and bought it in 2001. Unless something drastic changes I will die in this house
Don't take this as bragging but I'm 32 (single, no kids, Mechanical Engineer Salary) and got approved and bought a second home down the street from me 8 weeks ago that I plan to rent out once fixed up. My mortgage lender didn't ask for more than the standard variables listed on the paperwork. They did however go 2-3 rounds with me when I told them I want it to be considered my primary home and not a rental as I plan to rent my current house out instead. Round 1 they asked for a verbal explanation. Round 2 they wanted a signed lease on my place which I obviously did not give them since I don't want to be homeless so I offered to send them a lease which they didn't say they needed. A few weeks later in underwriting and wallah, I was approved for a 2nd primary home and now I own both and have great interest rates. Mind you this was also a short sale which is considered high risk as it is bought "as-is".
I didn't have any trouble like you all are stating and this was for a 2nd primary home down the street. I won't let them down on payments and appreciate them working with me and trusting me as what they did I thought was near impossible.
I didn't have any trouble like you all are stating and this was for a 2nd primary home down the street. I won't let them down on payments and appreciate them working with me and trusting me as what they did I thought was near impossible.
$2,000 rent x 24 months waiting for the crash = $48,000 gone. If I was playing that game, I'd want to profit AT LEAST $100,000 before I consider it. May wait a while for a crash to happen. Could happen tomorrow too...
I'm with you RDJ though... They're going to have to drag me out of our home, dead or alive. I love it. Once we pay off the house, I'll build a shop and finish the basement. I'm not dragging my family around every 2 years to make some extra cash. Single, no kids, very little stuff, sure, maybe.
I plan on taking about 10K out of mine and making some fixes before i go to sell it. Glad to know it's tax free!!!
Here's a question, I plan on moving out of my house next year, I get what I want for the house I have the chance of profiting 120k+ cash, now I'll be moving in with my GF and kids and was thinking of buying another place and flipping it fast. Good or bad idea?
Good or bad idea is fairly subjective and I'm faaaaaaaaar from a real estate expert. I'm 31 and have 2 houses. May stay that way forever...
From a personal standpoint... You can profit a pretty good amount. Will your GF require rent? Will you be happy with the living arrangement? Will the kids drive you bonkers? Will you wind up committing suicide? 120K doesn't do much good if you're 6 feet under.
I value loyalty/consistency pretty high and that's why I made the comment about it'd take 100K minimum to think about it. Don't get me wrong, that's a lot of money, but the hassle of moving and settling back down is a PIA.I've never been a flipper type personality. Too much risk. HGTV makes it look too easy and I'm not taking the bait.
That has it's limits but most are not likely to hit them in a 2 year span.
If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income.
Just buy and sell rentals using an intermediary and the 1031 exchange. No capital gains, no more moving.
yep, most people won't be scoring 250k on a quick home flip. Hell, even $50k in 2 years, I would sell. Money is money if you can upgrade in the process.
you can make 120k right now? I'd sell that bitch right now. Who knows where the market will be in the next 1-2 years. Now is your chance to get a better/new house.
I love seeing listings with "Price Increased" Not selling at $X? Raise it!
Looks like there is a new construction development in my $ range locally. Am I going to end up coming out of pocket a stupid amount because of lot fees & any other bs fees?
Looks like there is a new construction development in my $ range locally. Am I going to end up coming out of pocket a stupid amount because of lot fees & any other bs fees?
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