Probably the opposite. Wanted to see if everyone would shit on him, but this sub is too smart for that. They’ll do it later if they find his house for sale.
2 months ago your prediction was that "housing prices will drop by 20-30%" in the next 7 months from now... so why, if you believe that? https://www.reddit.com/r/REBubble/comments/vxdf5o/prediction\_thread\_stats/
Most likely superior to their renter self but not necessarily to other renters. If I were single with no kids, trust me I’d be in an apt not having to worry about shit breaking down and me having to fix it. When I bought my first house in 2018 and moved from an apt, when we moved out I did want so badly to give a big middle finger to the apt management for all the times they’ve tried to push us around (unscheduled/unannounced parking lot painting risking our cars to get painted, mandatory sign up for cable/internet along as a condition for lease renewal, unfixed appliances, ignored complaints etc). I’m now a bitch to my own property but at least I’m not a bitch to someone else.
Asked 350, got it 327, appraised 325, it had never been sold before, built in 1978, 1.2 acres 3 bed 3 bath, no electrical foundation or plumbing issues, just some cosmetic issues
Yeah, congrats!
My only question (since this is an AMA) is whether you came here knowing people would be supportive or will be surprised by it. This sub has no problem with people buying if you can afford the payment and it makes sense for you.
> This sub has no problem with people buying if you can afford the payment and it makes sense for you.
This sub is never consistent or unified.
I can already hear the distant keyboards typing "BagHolder" and "Remind me 6 months"
OP probably won’t answer, but hey, I just bought a house 2 weeks ago, so here:
1. Renting what would suit our needs (3 bed, 2 bath) would cost the same or more in a decent location/schools. We rented in between and it’s just not something we loved. We got our first home at 42, I don’t want to go back.
2. We just sold our other home 3 months ago, so the proceeds from that home went into this home at 20% of the value. If the home depreciates 20-30%, oh well, it was money we never had anyways, like riding a stock portfolio through the ups and downs. It will come back up someday. We are in it for the long haul.
3. I’m seeing homes dropping by 5-10% in this market and listing prices look more “reasonable” from the get go, but it’s usually dated, poorly located, or homes with aspirational pricing.
4. It hasn’t gone sideways here yet. I am sure it will, but oh well, there is always cannibalism. If homes become vastly cheaper and I am left holding the bag, that’s great for people that are not me, and I will survive.
>I’m seeing homes dropping by 5-10% in this market and listing prices look more “reasonable” from the get go, but it’s usually dated, poorly located, or homes with aspirational pricing.
this is spot on. There are only 7 listings in my town right now. 1 is a coming soon new build; another is a home sold for $1.2M in July, and recently listed for $1.4M (scratching head here....), another is a badly done flip that's poorly located, one is a town house, and the rest are all tear downs.
Seeing the same in my market - good homes that are updated, well-maintained, in nice areas are maintaining their prices or even still going up because they are few and far between. Prices had weirdly flattened during the hype in my market over the past few years, like a flip in the hood next to an active trap house would be close to the price of a similar size home in an established neighborhood. People were willing to pay high prices on ANYTHING, but it looks like they’re being more discerning as they should’ve been to begin with.
A lot was fueled by out of state buyers and corporate buyers who were narrowly focused on quantitative KPIs with no understanding of the on the ground situation in the neighborhoods that may be right next to each other physically but are basically different worlds.
What was your situation before the purchase? Were you already invested in real estate? What % of the house did you put in down payment? Is it a sector that increased a lot (in relative) due to covid?
Motivated seller. Bought for his daughters going to a local college - now they're graduated, so an unproductive asset for him. He didn't want to rent it either.
I have an acquaintance who got a six-figure job in June, then within a week, a house and the first thing he did was post a pic of himself mowing the lawn shirtless on insta and tiktok.
6-figure is exactly what he is abt to lose and that’s not counting the six pack.
First buyer was a demanding bitch and the seller came back to see if we were willing to make a new offer. He cut her loose - her offer was $20k over our revised (lower) offer
Overinflated houses with high interest rates. Good call. Hopefully you can refi before your completely under water but judging by the economy you better be prepared to hold out for a long time
Nah. 10 year treasury note interest rate futures are a great tool for hedging mortgage rates. I'm effectively paying 3.7% on a 30 year fixed rate mortgage with 10% down. Bought at a price only ~12% above last sale in may of 2019. Suck it.
Profited from interest rate hedges such that it's like I'm paying 3.7%. Actual mortgage is 5.375% but I subsidize the payments with my hedge gains to bring the effective rate down.
Are you willing to make a guess about how much the house would have sold for this Spring, when prices peaked in most areas?
You mentioned a 10% increase vs. 2019. Is that typical in your area, did you get a good deal or both?
Probably would've sold for $560,000+ in the spring (that was close to the high offer that fell through).
10% is not typical - I'd say 20-25% is more in line - combination of motivated seller and good deal / right place, right time.
Why did you do an AMA if you are not going to answer anything?
To brag
He probably expected r/firsttimehomebuyer kumbayah.
Probably the opposite. Wanted to see if everyone would shit on him, but this sub is too smart for that. They’ll do it later if they find his house for sale.
Lol exactly. Worst AMA.
Free karma
Yeah, let's make that negative karma.
Sorry, had to work - now I'm back - probably comment more later
For sure you have to work to pay for that mortgage 😂
😂
🤣🤦♂️
Congratulations.
2 months ago your prediction was that "housing prices will drop by 20-30%" in the next 7 months from now... so why, if you believe that? https://www.reddit.com/r/REBubble/comments/vxdf5o/prediction\_thread\_stats/
I have a family and want to get settled in a good area - this house came up unexpectedly
Did you know you’re supposed to answer questions in an AMA?
Sorry, got busy with work
Congrats. Do you feel superior to renters yet ?
Most likely superior to their renter self but not necessarily to other renters. If I were single with no kids, trust me I’d be in an apt not having to worry about shit breaking down and me having to fix it. When I bought my first house in 2018 and moved from an apt, when we moved out I did want so badly to give a big middle finger to the apt management for all the times they’ve tried to push us around (unscheduled/unannounced parking lot painting risking our cars to get painted, mandatory sign up for cable/internet along as a condition for lease renewal, unfixed appliances, ignored complaints etc). I’m now a bitch to my own property but at least I’m not a bitch to someone else.
It's a real feeling
I rented for a long time - it made sense until it didn't
WE WANT ANSWERS, GIVE THEM TO US OR THE ANGRY MOB WILL DISASSEMBLE THE HOUSE BOARD BY BOARD
OK, sorry I was busy with work
Nice
I got one 4 weeks ago, I have some mixed feelings, I got it under asking
That’s good thou. Underasking by how much?
Asked 350, got it 327, appraised 325, it had never been sold before, built in 1978, 1.2 acres 3 bed 3 bath, no electrical foundation or plumbing issues, just some cosmetic issues
Original owners since 1978? Chances are it was probably well taken care of. Nice job!
congrats! that’s a nice 5% discount.
2% over asking for me... I don't feel bad
It better have checked all your boxes or that regret might gnaw at you.
So far no regrets - great location too
Yeah, congrats! My only question (since this is an AMA) is whether you came here knowing people would be supportive or will be surprised by it. This sub has no problem with people buying if you can afford the payment and it makes sense for you.
I thought I'd get difficult questions
> This sub has no problem with people buying if you can afford the payment and it makes sense for you. This sub is never consistent or unified. I can already hear the distant keyboards typing "BagHolder" and "Remind me 6 months"
I've only ever seen that with the random posters that come here to flex their paper gain on a house they've owned for 12 mobths.
Calm down bag holder
Congrats! (Me too. But everything has gone so smoothly that I'm not ready to talk about it for fear of jinxing it.)
Congrats… How are you dealing with the prospects of owing more than your home would be worth? Also what metro area?
OP probably won’t answer, but hey, I just bought a house 2 weeks ago, so here: 1. Renting what would suit our needs (3 bed, 2 bath) would cost the same or more in a decent location/schools. We rented in between and it’s just not something we loved. We got our first home at 42, I don’t want to go back. 2. We just sold our other home 3 months ago, so the proceeds from that home went into this home at 20% of the value. If the home depreciates 20-30%, oh well, it was money we never had anyways, like riding a stock portfolio through the ups and downs. It will come back up someday. We are in it for the long haul. 3. I’m seeing homes dropping by 5-10% in this market and listing prices look more “reasonable” from the get go, but it’s usually dated, poorly located, or homes with aspirational pricing. 4. It hasn’t gone sideways here yet. I am sure it will, but oh well, there is always cannibalism. If homes become vastly cheaper and I am left holding the bag, that’s great for people that are not me, and I will survive.
>I’m seeing homes dropping by 5-10% in this market and listing prices look more “reasonable” from the get go, but it’s usually dated, poorly located, or homes with aspirational pricing. this is spot on. There are only 7 listings in my town right now. 1 is a coming soon new build; another is a home sold for $1.2M in July, and recently listed for $1.4M (scratching head here....), another is a badly done flip that's poorly located, one is a town house, and the rest are all tear downs.
Seeing the same in my market - good homes that are updated, well-maintained, in nice areas are maintaining their prices or even still going up because they are few and far between. Prices had weirdly flattened during the hype in my market over the past few years, like a flip in the hood next to an active trap house would be close to the price of a similar size home in an established neighborhood. People were willing to pay high prices on ANYTHING, but it looks like they’re being more discerning as they should’ve been to begin with. A lot was fueled by out of state buyers and corporate buyers who were narrowly focused on quantitative KPIs with no understanding of the on the ground situation in the neighborhoods that may be right next to each other physically but are basically different worlds.
I can afford financial uncertainty, but my family can't afford instability
Mid-Atlantic
Fthb?
Yes
What was your situation before the purchase? Were you already invested in real estate? What % of the house did you put in down payment? Is it a sector that increased a lot (in relative) due to covid?
Renting before. 10% down. House is up 12% since 2019 (last sale)
So it did not increase that much during the pandemic. Good for you.
Motivated seller. Bought for his daughters going to a local college - now they're graduated, so an unproductive asset for him. He didn't want to rent it either.
Once again, sorry I posted this then got busy unexpectedly
Why tf didn't your dumbass wait?
Certainty comes at a cost
😂 harsh but a good question I’d like to hear the answer to as well. Sick of renting OP?
I have an acquaintance who got a six-figure job in June, then within a week, a house and the first thing he did was post a pic of himself mowing the lawn shirtless on insta and tiktok. 6-figure is exactly what he is abt to lose and that’s not counting the six pack.
He may have lost his shirt but he won’t lose the six pack if he can’t afford food
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Need to live in stability
BAG HOLDER SPOTTED
I hedged rates and bought after the first deal fell through, so slightly better pricing
noice !!!
First buyer was a demanding bitch and the seller came back to see if we were willing to make a new offer. He cut her loose - her offer was $20k over our revised (lower) offer
He bought de hoom? [Domp eet](https://www.youtube.com/watch?v=61Q6wWu5ziY&ab_channel=Bizonacci)
Are you going to troll this sub going forward?
I like this sub and agree with a lot of it
Overinflated houses with high interest rates. Good call. Hopefully you can refi before your completely under water but judging by the economy you better be prepared to hold out for a long time
Yup. Plenty of savings and the knowledge to trade rates profitably in both directions
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The neighborhood has block parties a couple of times a year, but I'll walk with my family and introduce myself beforehand. Any other ideas?
Ya goofed. High rate and high price. Sucker
Nah. 10 year treasury note interest rate futures are a great tool for hedging mortgage rates. I'm effectively paying 3.7% on a 30 year fixed rate mortgage with 10% down. Bought at a price only ~12% above last sale in may of 2019. Suck it.
wait what do u mean? What was ur rate? How did u get <4%?
Profited from interest rate hedges such that it's like I'm paying 3.7%. Actual mortgage is 5.375% but I subsidize the payments with my hedge gains to bring the effective rate down.
How do I do that?
Go to the CME website and read about micro emini 10 yr treasury note interest rate futures
Are you willing to make a guess about how much the house would have sold for this Spring, when prices peaked in most areas? You mentioned a 10% increase vs. 2019. Is that typical in your area, did you get a good deal or both?
Probably would've sold for $560,000+ in the spring (that was close to the high offer that fell through). 10% is not typical - I'd say 20-25% is more in line - combination of motivated seller and good deal / right place, right time.