Money Investing megathread extravaganza - Page 274

**DaFace** · 06:35 PM

A place to talk about investing stuff.

SupDock · 03-15-2020, 08:39 PM

Quote:

Originally Posted by Buehler445

If you’ve got enough cash to get considerable equity in the place I’d say there isn’t a huge problem. If you’ve got to leverage pretty hard I’d pass.

If it were me I’d need to be fairly confident it found a bottom before I did much.

Found a bottom? I'm new to the terminology.

I'm doing a 0% down loan. My hesitation in waiting is the way the market is moving. The house we are renting has gone up 120k in 3 years.

**Buehler445** · 03-15-2020, 08:45 PM

Quote:

Originally Posted by SupDock

Found a bottom? I'm new to the terminology.

I'm doing a 0% down loan. My hesitation in waiting is the way the market is moving. The house we are renting has gone up 120k in 3 years.

Things stop going down.

If you do a $0 down loan and your house loses $5,000 of value in 3 months that is how foreclosures happen. That’s what happened in 2008

**lewdog** · 03-15-2020, 08:48 PM

Quote:

Originally Posted by Buehler445

Things stop going down.

If you do a $0 down loan and your house loses $5,000 of value in 3 months that is how foreclosures happen. That’s what happened in 2008

This.

Zero down loans still occur?

Yikes!

SupDock · 03-15-2020, 08:50 PM

Quote:

Originally Posted by lewdog

This.

Zero down loans still occur?

Yikes!

For certain qualifications, yes.

My job is extremely secure, so I have no concerns about not making my payments.

**Rain Man** · 03-15-2020, 08:58 PM

Quote:

Originally Posted by SupDock

What is the opinion here on buying or building in a hot (sellers) market. Renting now and planning on staying long term. We were looking at building before all this, and new builds in our market were going up 4k every 2 weeks.

What are your thoughts on what this will do to the market. I know it's a complicated question.

If it helps, my job is quite secure.

I'd think that's a different question than overall economic stuff and is kind of independent. We may have thoughts about real estate trends overall, but buying versus building merely seems like a matter of taste and existing inventory.

I find it interesting that people have such different preferences on homes, by the way. I live in a 100+ year old house, and my wife and I love it. It's got nice features and there are no surprises since it's survived for 100+ years. But I know other people who strongly prefer new construction and wouldn't even consider a house like ours.

SupDock · 03-15-2020, 09:05 PM

Quote:

Originally Posted by Rain Man

I'd think that's a different question than overall economic stuff and is kind of independent. We may have thoughts about real estate trends overall, but buying versus building merely seems like matter of taste and existing inventory.

I find it interesting that people have such different preferences on homes, by the way. I live in a 100+ year old house, and my wife and I love it. It's got nice features and there are no surprises since it's survived for 100+ years. But I know other people who strongly prefer new construction and wouldn't even consider a house like ours.

I appreciate that feedback. I am in a really unique market where there really are no old homes, and homes are being built at a very very rapid pace. Maybe it's not that unique, but inventory doesn't last long, and hasn't for the last 18 months.

The market in my area is what it troubling me. The prices keep going up and I have some worry that I will get priced out of the market. If I found a resale I like I would not hesitate to buy

I am more curious what your thoughts were on the current economic situation and its effect on home buying and building. Certainly low rates encourage buying, but people may be feeling economically insecure.

**Rain Man** · 03-15-2020, 09:12 PM

Quote:

Originally Posted by SupDock

I appreciate that feedback. I am in a really unique market where there really are no old homes, and homes are being built at a very very rapid pace. Maybe it's not that unique, but inventory doesn't lasted long, and hasn't for the last 18 months.

The market in my area is what it troubling me. The prices keep going up and I have some worry that I will get priced out of the market. If I found a resale I like I would not hesitate to buy

I am more curious what your thoughts were on the current economic situation and its effect on home buying and building. Certainly low rates encourage buying, but people may be feeling economically insecure.

If you're confident that your job is secure, times like these are the best times to buy. Lower rates, people's hoarding instincts up, and probably fewer people going to open houses? That seems like a recipe for a good deal. And in the long run, I think it's good from a wealth perspective to diversify your assets with home equity as well as traditional savings.

There's a house a few blocks away from mine that's intriguing, and I think it's underpriced. It's also got a guest house, which is the really intriguing part, because I could legitimately make it two rentals. It's too expensive for a cash purchase, which I'd prefer, but it's tempting nonetheless. It's been on the market for a while, so I'm curious if I could throw a lowball offer out there.

**Rain Man** · 03-15-2020, 09:15 PM

Also, I've preached this before, but if your market has any developments or zoning that allows mother-in-law apartments in new construction, or if you can buy an existing home with a mother-in-law apartment, jump on one of those. Having an onsite apartment means you'll always have a good tenant (bad ones won't want to be next to you), and it gives you an income stream that goes up each year while the cost of the mortgage stays the same. I've got one, and it prints money for me with very little work or hassle.

**Buehler445** · 03-15-2020, 09:15 PM

Quote:

Originally Posted by SupDock

I appreciate that feedback. I am in a really unique market where there really are no old homes, and homes are being built at a very very rapid pace. Maybe it's not that unique, but inventory doesn't last long, and hasn't for the last 18 months.

The market in my area is what it troubling me. The prices keep going up and I have some worry that I will get priced out of the market. If I found a resale I like I would not hesitate to buy

I am more curious what your thoughts were on the current economic situation and its effect on home buying and building. Certainly low rates encourage buying, but people may be feeling economically insecure.

If you could provide 20% equity I'd say do it in a heartbeat, but the risk you face if the economic conditions slow down in your area, the value of your house will decrease and you will have negative equity in your house. If you had some equity, you could handle a little uncertainty, but banks get hella jumpy at negative equity loans.

SupDock · 03-15-2020, 09:28 PM

Quote:

Originally Posted by Rain Man

If you're confident that your job is secure, times like these are the best times to buy. Lower rates, people's hoarding instincts up, and probably fewer people going to open houses? That seems like a recipe for a good deal. And in the long run, I think it's good from a wealth perspective to diversify your assets with home equity as well as traditional savings.

There's a house a few blocks away from mine that's intriguing, and I think it's underpriced. It's also got a guest house, which is the really intriguing part, because I could legitimately make it two rentals. It's too expensive for a cash purchase, which I'd prefer, but it's tempting nonetheless. It's been on the market for a while, so I'm curious if I could throw a lowball offer out there.

Exactly the feedback I was looking for. Thank you

SupDock · 03-15-2020, 09:30 PM

Quote:

Originally Posted by Buehler445

If you could provide 20% equity I'd say do it in a heartbeat, but the risk you face if the economic conditions slow down in your area, the value of your house will decrease and you will have negative equity in your house. If you had some equity, you could handle a little uncertainty, but banks get hella jumpy at negative equity loans.

I understand

What options would they have if I was making payments?

What does jumpy mean?

I'm a first-time home buyer and working on paying down educational loans, and would rather not put a significant amount down

Strongside · 03-15-2020, 09:46 PM

Pro tip: buy inverse ETFs on Friday, sell them on Monday at open.

The markets tank on bad news, which is constantly building up over the weekend, every weekend. (SH, DWT, etc.)

I feel dirty profiting on the world’s sadness, but it’s easier than short selling and I’ll take whatever I can get right now.

**Rain Man** · 03-15-2020, 09:49 PM

Quote:

Originally Posted by Strongside

Pro tip: buy inverse ETFs on Friday, sell them on Monday at open.

The markets tank on bad news, which is constantly building up over the weekend, every weekend. (SH, DWT, etc.)

I feel dirty profiting on the world’s sadness, but it’s easier than short selling and I’ll take whatever I can get right now.

What's an inverse ETF?

**lewdog** · 03-15-2020, 09:52 PM

Quote:

Originally Posted by Rain Man

What's an inverse ETF?

SDOW

thank me later

scho63 · 03-16-2020, 04:09 AM

If I tried to explain what a ****ing disaster today was at Amazon with all the cancelled orders due to inability of sites to deliver on time and a complete mess for getting things ready, you wouldn't believe a company this size could be this ****ing backwards.

They could be selling 2-3 times more across most major markets.

06-27-2016, 11:23 AM
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $1866899	Investing megathread extravaganza A place to talk about investing stuff. Last edited by DaFace; 02-19-2021 at 06:35 PM..
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03-15-2020, 09:15 PM	#4103
Rain Man NFL's #1 Ermines Fan Join Date: Jul 2001 Location: My house Casino cash: $3158491 VARSITY	Also, I've preached this before, but if your market has any developments or zoning that allows mother-in-law apartments in new construction, or if you can buy an existing home with a mother-in-law apartment, jump on one of those. Having an onsite apartment means you'll always have a good tenant (bad ones won't want to be next to you), and it gives you an income stream that goes up each year while the cost of the mortgage stays the same. I've got one, and it prints money for me with very little work or hassle. __________________ I'm putting random letters here as a celebration of free speech: xigrakgrah misorojeq rkemeseit.
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03-15-2020, 09:46 PM	#4107
Strongside Mahomes or GTFO Join Date: Feb 2012 Location: KC Casino cash: $5974282	Pro tip: buy inverse ETFs on Friday, sell them on Monday at open. The markets tank on bad news, which is constantly building up over the weekend, every weekend. (SH, DWT, etc.) I feel dirty profiting on the world’s sadness, but it’s easier than short selling and I’ll take whatever I can get right now. __________________
Posts: 13,198

03-16-2020, 04:09 AM	#4110
scho63 Politically Incorrect Join Date: Feb 2009 Location: Scottsdale, AZ Casino cash: $2611110	If I tried to explain what a **ing disaster today was at Amazon with all the cancelled orders due to inability of sites to deliver on time and a complete mess for getting things ready, you wouldn't believe a company this size could be this ing backwards. They could be selling 2-3 times more across most major markets. __________________ "The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~** ~~2018 2019 2020 20212022 2023~~ 2024 Adopt a Chief - Clark Hunt and Brett Veach "The men who drafted Patrick Mahomes"
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