2022 investing thread

[Bernardo de la Paz]

while still getting the tax write offs from the cost of the repairs/updates

If the updates are improvements they might have to be depreciated

 

[Concrete Helmet]

If the updates are improvements they might have to be depreciated

Yeah I guess it depends on ones individual tax situation(I let my CPA figure that stuff out)but this year I seemed to have too little in repairs on properties. I guess I'll find out Monday when I take my taxes to her. In my mind though I like having the "tenant pay for repairs/improvements" since they tear the sh!t up in the first place

 

[MJMGator]

Just read where Canada has banned home sales to foreigners for 2 years. Attempting to slow the 20% rise in prices.

 

[URGatorBait]

Just read where Canada has banned home sales to foreigners for 2 years. Attempting to slow the 20% rise in prices.

Bunch of racists

Signed: Liberal America

 

[Concrete Helmet]

I'm wondering if I've been looking at this thing as too much of a bear.....just saw where rent went up 28% in Orlando over the last year and 34% in Tampa. If rent is that high then renters will almost be forced into buying even if the rates are somewhat higher than over the last 4 or 5 years.

I mean given the prospect of renting a 3/2 1600sqft home at $2500-2600 a month won't most people who don't own at this point just say f vck it,...I may as well own it because even with higher rates my payments will still be less?

There is a similar pattern going on in commodities with potash, natural gas, copper, nickel and so on I'm sure many others on here are taking advantage of as well....why can't the same thing happen in RE at least in entry level houses. Yes rates are going up which is a headwind BUT if you can find enough of something to own and leasing is MORE expensive why couldn't this hold prices where they are at or slightly higher/lower for the next few years?

 

[Bernardo de la Paz]

I'm wondering if I've been looking at this thing as too much of a bear.....just saw where rent went up 28% in Orlando over the last year and 34% in Tampa. If rent is that high then renters will almost be forced into buying even if the rates are somewhat higher than over the last 4 or 5 years.

I mean given the prospect of renting a 3/2 1600sqft home at $2500-2600 a month won't most people who don't own at this point just say f vck it,...I may as well own it because even with higher rates my payments will still be less?

Ignoring escrow, just changing the rate on the mortgage from 3% to 5% increases the payment by 27%.

If you add the appreciation in property values on top of that the rent increase would actually be less.

 

[Concrete Helmet]

Ignoring escrow, just changing the rate on the mortgage from 3% to 5% increases the payment by 27%.

If you add the appreciation in property values on top of that the rent increase would actually be less.

Since your calculator is out tell me how much house could 2500 a month including escrows(say 450 monthly) buy with 20% down on a 30 year term?

 

[Concrete Helmet]

Nevermind....looks like $2250 a month would buy you a $400K house with 20% down at 5.2%(30yr) including escrows.....much better than renting the same house for $2500, right?

 

[Concrete Helmet]

With 10% down at 5.2% for 30 years that 400K home could be had for $2600 including escrows and PMI....Still a deal compared to renting.

 

[Bernardo de la Paz]

With 10% down at 5.2% for 30 years that 400K home could be had for $2600 including escrows and PMI....Still a deal compared to renting.

Sure, but if you did that same calculation a year ago when rates were 3% and that $400k home was $340k it would have been an even better deal.

 

[Concrete Helmet]

Sure, but if you did that same calculation a year ago when rates were 3% and that $400k home was $340k it would have been an even better deal.

Desperate people in desperate times often wish for a time travel machine....

Actually what I'm hoping for is when politicians get nervous they back off the tightening.....I think when that happens the bubble will have another leg higher.....People already flock to refi's like cocaine when they hear the rates might go up....my feeling is after they go up a little more and then suddenly drop even a half point desperate renters will run head first seeing their "last possible chance ever" to own a home....that and a 40 year mortgage program is already in the works.

 

[Detroitgator]

Desperate people in desperate times often wish for a time travel machine....

Actually what I'm hoping for is when politicians get nervous they back off the tightening.....I think when that happens the bubble will have another leg higher.....People already flock to refi's like cocaine when they hear the rates might go up....my feeling is after they go up a little more and then suddenly drop even a half point desperate renters will run head first seeing their "last possible chance ever" to own a home....that and a 40 year mortgage program is already in the works.

For Son #2 and I, our favorite part of the movie "The Big Short" is when they go to south Florida to meet with the two young mortgage brokers. They sooooo nailed those scenes.

 

[Concrete Helmet]

"The Big Short"

Just leave URG out of the investing section please. The last thing I need is Donald Stump coming in here telling me how I should spend my wife's allowance......

 

[URGatorBait]

Just leave URG out of the investing section please. The last thing I need is Donald Stump coming in here telling me how I should spend my wife's allowance......

Jokes on you...she gives me a bigger allowance than she gives you

 

[Egor's Assistant]

Jokes on you...she gives me a bigger allowance than she gives you

Rumor has it, you have to work twice as hard to please her.
3" twice = 6, something like that.

 

[URGatorBait]

Rumor has it, you have to work twice as hard to please her.
3" twice = 6, something like that.

Nah, crete has the 3". As evident by his driving a mustang

 

[BMF]

Nevermind....looks like $2250 a month would buy you a $400K house with 20% down at 5.2%(30yr) including escrows.....much better than renting the same house for $2500, right?

You're giving the average American too much credit. Most of these f*cktards who are renting don't have $40k for a down payment (plus they'd need another $8-10k for closing costs - but most of these dummies finance the closing costs into the mortgage, right?). Also, you act like there's an inventory out there. The biggest problem I'm seeing in this market is the 'entry level' homes lack of inventory - and here in Pinellas, $350k is 'entry level' (and you ain't getting much). Anything around here that's $300-$400k that is even half-way nice, or in a nicer area is gone in a day or two....and likely got bid up over asking price (this is still happening, as my wife is like a hawk checking home sales around here). We're hoping to pick up a rental in the this price range and have had zero luck.

 

[Concrete Helmet]

You're giving the average American too much credit. Most of these f*cktards who are renting don't have $40k for a down payment (plus they'd need another $8-10k for closing costs - but most of these dummies finance the closing costs into the mortgage, right?). Also, you act like there's an inventory out there. The biggest problem I'm seeing in this market is the 'entry level' homes lack of inventory - and here in Pinellas, $350k is 'entry level' (and you ain't getting much). Anything around here that's $300-$400k that is even half-way nice, or in a nicer area is gone in a day or two....and likely got bid up over asking price (this is still happening, as my wife is like a hawk checking home sales around here). We're hoping to pick up a rental in the this price range and have had zero luck.

All of this is exactly why I think the market stays high....just remember there are programs like Down Payment Assistance and what looks like a 40 year mortgage program right around the corner...plus alot of idiots came here after cashing out in other states. What would $350k buy someone who came from Ill., NY, or Cali? It wouldn't even buy them a tool shed from where they came from........keep dangling the carrot and they will keep jumping.

 

[URGatorBait]

You're giving the average American too much credit. Most of these f*cktards who are renting don't have $40k for a down payment (plus they'd need another $8-10k for closing costs - but most of these dummies finance the closing costs into the mortgage, right?). Also, you act like there's an inventory out there. The biggest problem I'm seeing in this market is the 'entry level' homes lack of inventory - and here in Pinellas, $350k is 'entry level' (and you ain't getting much). Anything around here that's $300-$400k that is even half-way nice, or in a nicer area is gone in a day or two....and likely got bid up over asking price (this is still happening, as my wife is like a hawk checking home sales around here). We're hoping to pick up a rental in the this price range and have had zero luck.

jesus BMF....we can't all be in the 1% like you

 

[BMF]

jesus BMF....we can't all be in the 1% like you

I sold my rental property (a cabin in Virginia) last year and I'm sitting on the money (and it's not doing so well in the brokerage account this year). I think I'm more in the 9.9% (which I read is $1.2mil to $20mil - and I'm on that lower end. lol).