Real Estate

[Alex]

Let's discuss real estate here. Real estate is basically property, it could be a house or building on a land, and you either own it or lease it.

I'm more interested in buying a multi-family house. One of the many benefits of owning a multi-family house is that it helps pay off the mortgage month after month. By doing this, one has to rent the first or second floor and act as a landlord.

From what I understand, if one has never bought a home in the past, he can buy his first house at 10% down. So if a house is worth $300,000, he has to put $30,000 cash down and the mortagage (bank) pays the remaining $270,000. The buyer would have to have good credit and a permanent job, or proof that he has steady income for the past few years, in order to be qualified for a loan (mortgage). I've recently heard that the government give grants, and I'm talking about $50,000+, to minorities or those who are qualified, but I don't know much details. If anyone knows, please share your knowledge about this.

IMO, one of the buyer's goals is to buy a house below market. What I mean by this is that if the house's appraised value is $300,000, try to make an offer of $270,000, more or less. Some say this is unrealistic, but I say it is doable with some negotiation skillz. That is why you have to find the best real estate agent in the area.

Unlike a car, new or old, the value goes down every year. You know, if a new car is worth $30,000, 5 years from now it'll be worth $20,000. On the other hand, a house's value goes up year after a year. A $300,000 house can be worth $335,000 or more 5 years from now. That's one of the key benefits of owning a house, besides tax benefits, rent, etc.

There's more I want to share but time is my enemy. I'll share whatever I can later. In the meantime, if anyone has anything they want to share regarding real estate and how one can benefit from it, please post here. Thanks.

 

[Gemtun]

Let's discuss real estate here. Real estate is basically property, it could be a house or building on a land, and you either own it or lease it.

I'm more interested in buying a multi-family house. One of the many benefits of owning a multi-family house is that it helps pay off the mortgage month after month. By doing this, one has to rent the first or second floor and act as a landlord.

From what I understand, if one has never bought a home in the past, he can buy his first house at 10% down. So if a house is worth $300,000, he has to put $30,000 cash down and the mortagage (bank) pays the remaining $270,000. The buyer would have to have good credit and a permanent job, or proof that he has steady income for the past few years, in order to be qualified for a loan (mortgage). I've recently heard that the government give grants, and I'm talking about $50,000+, to minorities or those who are qualified, but I don't know much details. If anyone knows, please share your knowledge about this.

IMO, one of the buyer's goals is to buy a house below market. What I mean by this is that if the house's appraised value is $300,000, try to make an offer of $270,000, more or less. Some say this is unrealistic, but I say it is doable with some negotiation skillz. That is why you have to find the best real estate agent in the area.

Unlike a car, new or old, the value goes down every year. You know, if a new car is worth $30,000, 5 years from now it'll be worth $20,000. On the other hand, a house's value goes up year after a year. A $300,000 house can be worth $335,000 or more 5 years from now. That's one of the key benefits of owning a house, besides tax benefits, rent, etc.

There's more I want to share but time is my enemy. I'll share whatever I can later. In the meantime, if anyone has anything they want to share regarding real estate and how one can benefit from it, please post here. Thanks.

I agree..that is why I have my own condo so that I know that my money is growing, not wasted on rent. Since buying my place five years ago, the value has gone up by 25K.

 

[tekkmortal]

I agree..that is why I have my own condo so that I know that my money is growing, not wasted on rent. Since buying my place five years ago, the value has gone up by 25K.

I agree with Meg. A house is a good investment. When u decide to move, you can rent your house or sell it. I have seen couple of houses on my block are up for rent.

 

[Angel]

Yes, I agree, that's why I have my own house and I know I will make money out of it when I do sell or rent it to someone else.....Since its been a couple of years now, the value of my house had raised up to 120,000 since of last year...I believe that buying a house, land etc will make us even more richer

When I first brought my house, the appraised value was 82,500. but I had made an offer for only 72,000 and they approved it, sometimes it will work, sometimes it won't that's depending on those homeowners who are selling their house...I've looked about 8 to 10 houses before I brought this one, none of them accept my offer when it was less than what the appraised value of the house was worth....

I tell you this, it was alot of fun and I wouldn't mind doing it again someday...but only if I'm rich

 

[Tarafied]

A house is definetly a good investment. But beware of duplexes or multi-family properties. They can be cheap to buy, but really hard to sell when the time comes. My dad has worked in real estate for a long time, and that's what he tells me.

We are closing on our first home in less than a week. We got a 100% loan, so we only have to pay closing costs. Our only income is SSDI and some banks wouldn't accept that. We did get accepted for our mortgage only after we got a doctor's note stating that my husband would continue to be disabled for at least 3 more years.

 

[Gemtun]

Yes, I agree, that's why I have my own house and I know I will make money out of it when I do sell or rent it to someone else.....Since its been a couple of years now, the value of my house had raised up to 120,000 since of last year...I believe that buying a house, land etc will make us even more richer

When I first brought my house, the appraised value was 82,500. but I had made an offer for only 72,000 and they approved it, sometimes it will work, sometimes it won't that's depending on those homeowners who are selling their house...I've looked about 8 to 10 houses before I brought this one, none of them accept my offer when it was less than what the appraised value of the house was worth....

Wow your house is CHEAP! Oregon has one of the highest housing market in the country. Average house here cost about 210,000. But most decent houses go for 250 or above

 

[Angel]

Wow your house is CHEAP! Oregon has one of the highest housing market in the country. Average house here cost about 210,000. But most decent houses go for 250 or above

That's because I live in a small town, and the houses there are cheaper than the houses in the countries and the city in Ohio....The houses there cost between 200,000. to a million or maybe more I saw a house in Beachwood that about half an hour where I live that cost one million dollars ....

 

[Gemtun]

That's because I live in a small town, and the houses there are cheaper than the houses in the countries and the city in Ohio....The houses there cost between 200,000. to a million or maybe more I saw a house in Beachwood that about half an hour where I live that cost one million dollars ....

It really irkes me that if I could sell my condo, I would be able to buy a brand new 3 bedroom 2 bath house with 2 car garage with a nice yard somewhere else in Iowa or North Dakota!!!

 

[Angel]

It really irkes me that if I could sell my condo, I would be able to buy a brand new 3 bedroom 2 bath house with 2 car garage with a nice yard somewhere else in Iowa or North Dakota!!!

That sounds really nice...I would like a brand new house one day too...and I've been to Iowa a couple of times, really nice state, I wouldn't mind moving to Iowa either, that something new! ... maybe I'll be living next door from you? heh heh

 

[Gemtun]

That sounds really nice...I would like a brand new house one day too...and I've been to Iowa a couple of times, really nice state, I wouldn't mind moving to Iowa either, that something new! ... maybe I'll be living next door from you? heh heh

If I do, I will pick Pella. Pella is well known for tulips. I adore tulips so I think I will fit in Pella very nicely! You guys can buy a house next door and we can share a inground pool to help with costs. Heh

 

[sequoias]

Yeah, housing market is going crazy! Washington state average median is like at least $260-270,000. Seattle is about $349,000 as of March 2005. It's crazy. They think the housing market bubble will not burst, we will see. Remember the dot com boom grew and bubble burst and went bust?

 

[knightwolf68]

sometimes u don't have to put down on closing or anything else just like what i did put nothing.. I always consider rent is rip off cuz u won't get any tax back but own the place and u get money back thats pro and con ... i own townhouse for three years now .. it is worth to do since u can do anything round the house like u can do remodel and paint etc .. but rent place that u can't do anything about it which is sucks big times

 

[gnarlydorkette]

I live in a "condo/townhouse/duplex"... it is a two-floor home, not one floor as many assumed from the structure of condo. The home has four rooms, three for bedrooms, two full bathrooms and an attic. It is not exactly ahouse because we has no garage and we are under HOA which is pain in the ass.

My parents brought the house in 1989 for 100K.... 14 years later, the net is worth 500K or even more! Our condo is more unique than others-- we do have a large front yard! We are incredibly close to a major freeway yet we don't see the ugly sight or hear it. So all of those factors added up.

300K is the lowest you can go for a house in certain areas in San Diego (not in the County-- you can get dirty cheap wiht a house in Temecula but that is SO far away from the city of San Diego)...
any further below is a house in a bad area or in neighborhood with lousy transporation (like out back in the county) where you have to drive 30 minutes (I am a Californian-- I dont measure distances by miles but by minutes!) on an unpaved road....
or in middle of nowhere.

I don't care how expensive the houses will get, I REFUSE to live in middle of nowhere. I am spoiled. I want to get to anywhere I want in less 20 minutes, period. Traffic time excluded during rush hours, of course...

I am considering to get a RE license so I can peek in database to see the value of the market so the agent won't bullshit his/her way with me.
I am also interested in subletting several apartments/houses in San Diego, in NYC, et cetera...
There are many thing you can do to make the houses/apartments as your assests... but be careful to not make it your liability or you will be over your heels in debt!



EDITED: Warning-- offensive words contained.
(HOA= Home Owners Associations.... which mean you cannot fuck around with your house as you please because the intention of the neighorhood i live in is to keep the market reasonable so nobody cannot make one house MUCH better than another to increase value. So if one wants to improve the condition, or repaint or whatnot-- one has to go through paperwork with HOA to get approval and permission to do so. like I said-- PAIN IN THE ASS. they gave us hell for getting new windows to increase interior heat because the house is fucking drafty (we got double-glass panel windows... SO energy-efficient since you dont need to turn on heat all time!). They were worried since we are already the most expensive house on the block... but then several other homes did the revamp too and they let us off the hook. ARGH! So owning a house is not exactly all bees and birds like knightwolf said...

 

[Roadrunner]

If I do, I will pick Pella. Pella is well known for tulips. I adore tulips so I think I will fit in Pella very nicely! You guys can buy a house next door and we can share a inground pool to help with costs. Heh

Speaking of Pella...ever been there? While I was growing up, my parents would take the family and head out during the annual Pella tulips festival, even as young as I was then and not being too thrilled with flowers, etc., but there were many great things to do during the festivals which I did end up enjoying! I sure wouldn't mind going back and visiting this small but gorgeous and friendly town again sometime soon! Also, Iowa's a great state, known for its small towns and friendly people...as for any state or towns in the USA, there are many good attributes that anyone can truly relate to and crave for!

A pool??? With plenty of tulips adorning the landscape, the Olympic sized pool just might be the talk of the town!

 

[Roadrunner]

As for the topic for which this thread is based upon...Real Estate can be a luxury type of business when one knows how to be successful--Although, dedication and being persistance along with lots of patience surely can make it all the worthwhile, however small or big of a property one gets into.

The only one drawback when it comes to purchasing property solely intended for renting out is basically you're respondsible for all maintenance and sometimes those can be costly. Otherwise, there are so many variants that is a big plus when renting out to others.

 

[harleymn]

i have known freinds of mine

they tell me renting houses is pain in the you know. if the heater fails at 300 am you have to get up go take care of them!My dad is a real estate developer and also sells houses has been teaching me how houses works and what they re worth etc you have to haVE LOTS OF EXPEREINCEs when you walk in one knowing what it cost to fix it up ,foundation,electrical(old) etc there is alot you havre to know .Thats why there are lincences for real estate like dad etc he has been in this for over 35 yrs.you neede to know someone with this exereince before buying the plce not the seller or his agent.Like a friend that has been in this business for so long is a good trust to invest by paying him some money to have him or her to go look at it for you before you buy it.to resell or rent.So good luck,also a good place to look is govt hud homes good source(one).

 

[FreeWoman77]

I am thinkin to buy a house in near future, is it true, interest will be grown every year or so unexpected than u signed upon ur purchased arranged rate and interest % ? cuz I saw my friend's sister sold her house sick of rate interest changed/grown I really not understood, cuz I would be first buyer and would like family multi I mean 3 bedrooms and 2 bathroom flat or 2 floors house, not duplex or condo (? no neighbor 1 floor or 2 floor if mine 1 floor)

 

[sequoias]

In my opinion, owning a house is MORE expensive than renting a house, because you have to pay for the broken heater, wear and tear of the house, lawn and garden costs and all that stuff. You don't pay much of that when u rent a house. Landlord is responsible for the wear and tear of the house and the equipment/mantience. There are pros and cons anyways, but in the long run it's cheaper to own a house, I think, also more freedom too.

 

[FreeWoman77]

In my opinion, owning a house is MORE expensive than renting a house, because you have to pay for the broken heater, wear and tear of the house, lawn and garden costs and all that stuff. You don't pay much of that when u rent a house. Landlord is responsible for the wear and tear of the house and the equipment/mantience. There are pros and cons anyways, but in the long run it's cheaper to own a house, I think, also more freedom too.

well, once in many years, tax every year, oh well
correct me if i m wrong

 

[sequoias]

well, once in many years, tax every year, oh well
correct me if i m wrong

Yeah u pay property taxes every year, once u own a house. The property taxes doesn't increase much as long u own the house, but when u sell it to someone and they pay MORE property taxes because of the current rate.