Time to buy? (soon...)

[kensmith]

I actually wouldn't mind visiting Chicago but I've heard the housing market there is also out of control. Is that true?

I don't feel that it is in the least. The market is very much in line with the average incomes of the residents. It's all relative though, I live in a 4 bedroom 2 bath house with a 2 1/2 car garage with an 700 sq ft loft about it and its a very good neighborhood and it's worth $400k+-. This isn't high in my opinion as the average household income in my neighborhood is $175k+-, average home is $375k.

If you want great schools, very low crime(most don't bother to lock their car), good park system, walking distance to town, train, shopping, movie theater, restaurants, and more than you pay more than you could in other areas.

I think whether you'd like to admit it or not, there is a certain amount of general trend and approach philosophy in real estate. The difference is the pricing but that's all relative.

If that trend you are talking about is more agents that are have business background and are running things as a business then yes. But I really doubt that what you mean. There has always been a lot of part timers and that will not change w/o a major overhaul of licensing laws. this will not happen as states make a lot of money off of real estate agents and so does the Realtor association (the largest association by member count).

[JimJ]

If the Southern California Market fixes itself I will be there with my suitcase in hand! I am a life long surfer so I REALLY miss the ocean. I will not pay those rediculous prices that you are talking about either. It is nonsense. But, from what I have been told (have not verified) there are still thousands of people immigrating to CA every month that have lots of money and are willing to pay to be part of the "CA lifestyle". As long as this keeps up prices will stay way up. Las Vegas is also insane. I do not understand why people continue to buy there. My best buddy bought in Vegas because he couldn't afford anything in San Diego. He paid around 190k for his home about 3 years ago. The same house in his area is now selling for more than 400K! To live in Vegas? I can not wait to see how that market plays itself out. It will be interesting. I don't think there has ever been anything quite like it.

[David]

If the Southern California Market fixes itself I will be there with my suitcase in hand! I am a life long surfer so I REALLY miss the ocean. I will not pay those rediculous prices that you are talking about either. It is nonsense. But, from what I have been told (have not verified) there are still thousands of people immigrating to CA every month that have lots of money and are willing to pay to be part of the "CA lifestyle". As long as this keeps up prices will stay way up. Las Vegas is also insane. I do not understand why people continue to buy there. My best buddy bought in Vegas because he couldn't afford anything in San Diego. He paid around 190k for his home about 3 years ago. The same house in his area is now selling for more than 400K! To live in Vegas? I can not wait to see how that market plays itself out. It will be interesting. I don't think there has ever been anything quite like it.

You're right it is insane.

There are lots of people coming California but I'm not sure if they are bringing money or not. California now attracts the worst of it's kind in terms of the types of people who come here. That's my opinion of course but the more I look around me, the more I see people who have little to no class. But many of them are ruthless. I look around me and where some of these people get their money is beyond me. My wife and I are both working professionals but we'd have a very hard time buying a home here and affording things comfortably. Yet these same people I talk about have 2-3 BMW's parked in front of their homes, a Hummer, etc..and a nice home to boot ($600-700K plus). And not to generalize since I'm going on what I see, either there are about 5-6 people living in the same home or these guys are shady.

I just don't understand how some of these people do what they do in terms of affording things. Not to mention there are so many people that just stuck it lucky with timing and all and made huge equity gains on things they could only dream of a few years ago. Hell I know guys who went to Arizona and bought 5-6 homes at the same time after selling their homes here. That, in my opinion should NOT be allowed. You're seeing that now in Vegas on new homes. Many of the builders were Californian...and truly milked the system and abused and hustled people into their homes with no better word to describe it. While it may have been legal, it wasn't moral. And has pretty much ruined opportunities to buy a home for many hard working families who deserve a home.

It's sad but I see less and less decent, honest, hard working people here in California and more garbage coming in as we speak. Not to mention the State itself is run by a host of idiots who are out to wreck it even further. It's become a state of throat cutting, super insensitive, dehumanized people who can't see beyond the reach of their $100 bills.

The California that once was is gone...but many people are in denial about that. If it wasn't for family, there'd be no reason whatsoever to live here...in my opinion.

[JimJ]

You are so right. California is not California anymore at all! LA is a TOTAL rat race. You know what they say, "birds of a feather flock together". Many, Many NATIVE Californians have left. There are tons of them here. Too bad, it was a really cool place but now you are just another head of cattle if you live there. The crime element is too much for me as is pollution, crowds, traffic, smog, cost of living, attitude and so on and so on.

As far as those guys flipping homes they will get hit with a pretty hefty tax bill if they ever sell those properties without reinvesting the money back into real estate. Heck, if you have good credit you ought to flip some homes yourself! Buy out of state for 150k and rent the home. The renter pays your mortgage while you pay someones mortgage back in LA. Atleast this way you are building equity somewhere.

[David]

You are so right. California is not California anymore at all! LA is a TOTAL rat race. You know what they say, "birds of a feather flock together". Many, Many NATIVE Californians have left. There are tons of them here. Too bad, it was a really cool place but now you are just another head of cattle if you live there. The crime element is too much for me as is pollution, crowds, traffic, smog, cost of living, attitude and so on and so on.

Man you got that right..

As far as those guys flipping homes they will get hit with a pretty hefty tax bill if they ever sell those properties without reinvesting the money back into real estate. Heck, if you have good credit you ought to flip some homes yourself! Buy out of state for 150k and rent the home. The renter pays your mortgage while you pay someones mortgage back in LA. Atleast this way you are building equity somewhere.

Where would you recommend I do that? I was thinking of doing that in Vegas but I've been told the rentals are not covering their mortgages...

Yes both my wife and I have great credit. We could qualify for a home here too....but we'd probably have to but a 1100sqft house in La Crescenta for $500K...LOL

I'd love to find out where you'd recommend I do something like that...i.e. rent out somewhere else.

[JimJ]

Well, I know we get a ton of people flying into our area to buy rentals. Sometimes you can break even with as little as 5% down but those are usually bought before they ever hit the market. If you are willing to put 15-20% down you will not have any problem here especially since Boise State University has been getting so much recognition from their top 25 football presence. All of the sudden, college students are finding that BSU is pretty cool because of the football team LOL.

I am not sure about the other markets but I believe you can still pick up homes in the Portland Oregon Area, Salt lake City, outskirts of Arizona that would rent enough to cover a mortgage with 20-30% down. Colorado might be a possiblity too. Do a Google search for an areas real estate and email an agent. Check the local online newspapers to see what homes are renting for versus what you might be able to buy one for. You might dig around the threads located on this forum to find Agents from certain areas. Send them a private mail or email and see what they have to say.......

Our local newspaper is www.idahostatesman.com. Check out the rentals in the classifieds to see what things are renting for here and then I can email you listings. I just closed a deal with a guy that moved here from Oakland. He sold a 900 square foot house in the ghetto for like 330K. He came here and bought a new 1500' home for 130k and two duplexes that are CASH FLOWING with 30% down with the equity he made by leaving Oakland.

[Las Vegas Real Estate]

(Are we "Boise Bashing"???) Hey - I grew up near there and it's a very nice place!

[sarahk]

found this at another forum, v.funny

[ResaleBroker]

found this at another forum, v.funny

I love it!

What goes up must come down?