Mortgage rates

[UFHealthGator]

Move on up to Ocala and get a mansion on a farm for those prices.

There are ton like this:
https://www.zillow.com/homedetails/8225-SE-15th-Ct-Ocala-FL-34480/58332622_zpid/?mmlb=g,0

https://www.zillow.com/homedetails/9041-SW-14th-Ave-Ocala-FL-34476/87667928_zpid/

I loved Ocala. I turned my previous house there into an AirBNB and it is booked out till the end of August. It's only about 75 minutes from MCO and 90 minutes from Tampa and Disney. There is absolutely no reason to live in a $hithole in California when you can buy a mansion in central Florida if you do not have a job or major ties to that state. I have no interest living in a big city.

I only wish I can refinance it as an investment property with better terms than what I have currently (4.125% 30 year fixed).

 

[BMF]

I loved Ocala. I turned my previous house there into an AirBNB and it is booked out till the end of August. It's only about 75 minutes from MCO and 90 minutes from Tampa and Disney. There is absolutely no reason to live in a $hithole in California when you can buy a mansion in central Florida if you do not have a job or major ties to that state. I have no interest living in a big city.

I only wish I can refinance it as an investment property with better terms than what I have currently (4.125% 30 year fixed).

I'm not sure how old you are, but... (I'm about to turn 50). I graduated UF in 95, bought my first house in 1997...7.125% interest rate. I refinanced it about 6 months later because rates "fell" below 7% and I remember saying, "I can't believe I got a rate under 7%!!"

You're doing good w/ that rate as a rental property - but I'm sure if you look hard you can get a better rate. Just pointing out that these rates are RIDICULOUS!! And it's driving housing prices through the roof.

I'm sitting on a ton of cash (~$400K) and I'm hoping there's a housing price dip in the next 12-18 months so I can get at least one rental property.

 

[FireFoley]

I'm not sure how old you are, but... (I'm about to turn 50). I graduated UF in 95, bought my first house in 1997...7.125% interest rate. I refinanced it about 6 months later because rates "fell" below 7% and I remember saying, "I can't believe I got a rate under 7%!!"

You're doing good w/ that rate as a rental property - but I'm sure if you look hard you can get a better rate. Just pointing out that these rates are RIDICULOUS!! And it's driving housing prices through the roof.

I'm sitting on a ton of cash (~$400K) and I'm hoping there's a housing price dip in the next 12-18 months so I can get at least one rental property.

If you get tired of sitting on that cash, I am sure some of us would be glad to sit on it for you

 

[BMF]

If you get tired of sitting on that cash, I am sure some of us would be glad to sit on it for you

Well, I have it parked earning interest (~5%). I've been creeping into it w/ the recent stock market run up.

 

[FireFoley]

Well, I have it parked earning interest (~5%). I've been creeping into it w/ the recent stock market run up.

So last night I was perusing the listings here as an example. I saw a listing that I had seen a few months ago at 329K. Smallish villa 1500sq.ft. 2BR/2BR. listing disappeared about a week later. Well it reappeared last nite at 360K. Perhaps the owner/realtor (same person) is hoping to appeal to someone's appetite for these even lower rates. FWIW, I would not give a penny over 210K for it, so I am taking a pass.

 

[BMF]

So last night I was perusing the listings here as an example. I saw a listing that I had seen a few months ago at 329K. Smallish villa 1500sq.ft. 2BR/2BR. listing disappeared about a week later. Well it reappeared last nite at 360K. Perhaps the owner/realtor (same person) is hoping to appeal to someone's appetite for these even lower rates. FWIW, I would not give a penny over 210K for it, so I am taking a pass.

I sold a condo that I had owned for 18 years in 2018, I put all the money into a brokerage account (due to the crash, I'm only up about 2% since I opened the account). I've been saying for 2+ years now "housing prices GOTTA drop soon!" Well, they haven't. My wife and I do the same thing - we look at listings all the time. What those people probably did was they had a "stale listing" (it had sat for a while)....so they took it off the market, did some minor upgrades, the re-listed it at a higher price as a "new listing". Here in the DC area, most homes are gone within a week (there's very little inventory). We've started to notice some price drops in the Tampa area, but in south Tampa most homes (if not priced too high) go within a few weeks.

Here's an example of a ridiculously priced south Tampa home - 3/2, 1248sf, needs a ton of upgrades, the pictures look like it was trashed (the people couldn't even clean it up for the realtor pics), no pool, Formica counter tops has a fat dude w/ a dog in his lap in some of the pictures, good sized lot, $649K.

For example: my house in south Arlington, VA (3 miles from the Pentagon, 5 miles from DC) is 3/2, 1400sf, 1 car garage and it's worth around $640K-$650K (one two doors down sold for $640k in January, same house but no garage). HOW is this house worth as much (or more) than mine? I'm in WASHINGTON DC! This is Tampa!!!

https://www.realtor.com/realestatea...-Oaks-Ave_Tampa_FL_33611_M68053-87415?view=qv

 

[FireFoley]

I sold a condo that I had owned for 18 years in 2018, I put all the money into a brokerage account (due to the crash, I'm only up about 2% since I opened the account). I've been saying for 2+ years now "housing prices GOTTA drop soon!" Well, they haven't. My wife and I do the same thing - we look at listings all the time. What those people probably did was they had a "stale listing" (it had sat for a while)....so they took it off the market, did some minor upgrades, the re-listed it at a higher price as a "new listing". Here in the DC area, most homes are gone within a week (there's very little inventory). We've started to notice some price drops in the Tampa area, but in south Tampa most homes (if not priced too high) go within a few weeks.

Here's an example of a ridiculously priced south Tampa home - 3/2, 1248sf, needs a ton of upgrades, the pictures look like it was trashed (the people couldn't even clean it up for the realtor pics), no pool, Formica counter tops has a fat dude w/ a dog in his lap in some of the pictures, good sized lot, $649K.

For example: my house in south Arlington, VA (3 miles from the Pentagon, 5 miles from DC) is 3/2, 1400sf, 1 car garage and it's worth around $640K-$650K (one two doors down sold for $640k in January, same house but no garage). HOW is this house worth as much (or more) than mine? I'm in WASHINGTON DC! This is Tampa!!!

https://www.realtor.com/realestatea...-Oaks-Ave_Tampa_FL_33611_M68053-87415?view=qv

JFC unless there is gold under the floor I probably would give about a buck seventy five for that house. No disrespect to the owner but that looks like the shythole I sold in 2005 that sold again in foreclosure in 2012 for 50% of what I sold it for in 2005. Man if that is 600K in the Tampa area, you are really up against it.

 

[BMF]

JFC unless there is gold under the floor I probably would give about a buck seventy five for that house. No disrespect to the owner but that looks like the shythole I sold in 2005 that sold again in foreclosure in 2012 for 50% of what I sold it for in 2005. Man if that is 600K in the Tampa area, you are really up against it.

It's absolutely ridiculous! And if you go about a half mile north towards Hyde Park it's even more! I don't get it. It's very discouraging. Like I said earlier, I was hoping to cash in on my POS house and get a major upgrade in Tampa. It looks like it may be a lateral move unless I go into the $800-$900K range....and I'm not sure I want to go that high (I'd put down about $400-500k if went that high). There are some lower priced homes, $425-$600K that we'd consider...but still not exactly getting a major upgrade.

 

[FireFoley]

It's absolutely ridiculous! And if you go about a half mile north towards Hyde Park it's even more! I don't get it. It's very discouraging. Like I said earlier, I was hoping to cash in on my POS house and get a major upgrade in Tampa. It looks like it may be a lateral move unless I go into the $800-$900K range....and I'm not sure I want to go that high (I'd put down about $400-500k if went that high). There are some lower priced homes, $425-$600K that we'd consider...but still not exactly getting a major upgrade.

Well perhaps renting is an option? if you truly believe there will be a downturn as I do, then you might drop say 36,000 to rent for a year to save potentially 60-100K on a purchase later on? that is what I am currently doing. B/C it appears you think as I do that if you paid 600K for that POS in Tampa, that you might be the one holding the bag and no one will come along in 20 years and give you 800 K

 

[BMF]

Well perhaps renting is an option? if you truly believe there will be a downturn as I do, then you might drop say 36,000 to rent for a year to save potentially 60-100K on a purchase later on? that is what I am currently doing. B/C it appears you think as I do that if you paid 600K for that POS in Tampa, that you might be the one holding the bag and no one will come along in 20 years and give you 800 K

We're not ready to move just yet (probably next April, May time frame). If I land a job that allows me to telework, we've talked about moving to Key West and renting for a year or so while we wait out the downturn. We just want to get back to Florida, first and foremost. But if I can telework we're not locked into having to live in south Tampa (I was presuming I'd get a job at McDill AFB). So we've also looked at St. Pete, which seems to be about 10-20% less than south Tampa. I'd really like to get a lot and build.

 

[UFHealthGator]

Well, I have it parked earning interest (~5%). I've been creeping into it w/ the recent stock market run up.

How on earth are you earning 5% interest on Cash?!

 

[BMF]

How on earth are you earning 5% interest on Cash?!

Streetshares.com

 

[LagoonGator68]

Streetshares.com

Not available in Florida and many other states.

 

[BMF]

Not available in Florida and many other states.

I opened an account for my mom, using my Virginia address.

Due to the China virus streetshares recently limited their new accounts to $10K, and will not allow any new money into existing accounts over $10K...so I'm a little annoyed by that.

 

[NVGator]

You're in Reno, right? I was looking at property there a couple of years ago and couldn't believe how much it's shot up. Last time I was there I spoke w/ some locals and it seems a ton of people from California (SF, SJ area) have moved there over the last 10 years...driving up prices.

Yes and it’s up 55% from 6 years ago. Californians are driving up the price but so is the industry. It’s leveling off now as the rental properties are catching up to demand.

 

[BMF]

Yes and it’s up 55% from 6 years ago. Californians are driving up the price but so is the industry. It’s leveling off now as the rental properties are catching up to demand.

Reno is a great area. I've been going to Tahoe almost every year since 99. I've watched it grow (Reno). In the early 2000's I had this pipe dream of having a place in/near Reno that I'd use as a rental property, then use when I retired to go skiing all winter. Prices were very reasonable back then. Leave it to California to f*ck up another great area!!

 

[Durty South Swamp]

We locked in a 15 year at 2.25 3 weeks ago. Told my in-laws about it and they started paperwork recently. Yesterday they locked in 2.0 for 15. Insane.

 

[NVGator]

We locked in a 15 year at 2.25 3 weeks ago. Told my in-laws about it and they started paperwork recently. Yesterday they locked in 2.0 for 15. Insane.

Sucker. We are going the way of negative interest rates here shortly. Amirite @FireFoley ?

 

[FireFoley]

Sucker. We are going the way of negative interest rates here shortly. Amirite @FireFoley ?

Well we did have negative nominal rates on the short end a few months ago. As of today we have negative real rates (nominal rates minus inflation) all the way out to 30 years. As for negative mortgage rates, that will never happen b/c no one will loan money under those conditions. Unless we have a severe case of stagflation, rates going higher seems a bit far fetched. But with all the money printing, free money, helicopter money or whatever you want to call it, the "flation" of stagflation must be considered. Look at places like Brazil, Venezuela, Argentina, Zimbabwe, Greece, etc. and you can see that all that money can create a problem. But the goal is to remain the U.S. of Japan. Either way, the end result is not ideal.

 

[NVGator]

Well we did have negative nominal rates on the short end a few months ago. As of today we have negative real rates (nominal rates minus inflation) all the way out to 30 years. As for negative mortgage rates, that will never happen b/c no one will loan money under those conditions. Unless we have a severe case of stagflation, rates going higher seems a bit far fetched. But with all the money printing, free money, helicopter money or whatever you want to call it, the "flation" of stagflation must be considered. Look at places like Brazil, Venezuela, Argentina, Zimbabwe, Greece, etc. and you can see that all that money can create a problem. But the goal is to remain the U.S. of Japan. Either way, the end result is not ideal.