/biz/ - Business & Finance

the single mother stopped paying rent within about 3 months

>>55107871
i sold a house for $1,000,000 at what I'm convinced was the top. it needed significant repairs. after taking 4 months to repair it the guy listed it for rent at $2k a month. it's not being rented. he looked like he came straight from reddit.

>>55107871
It's going to be a fire sale. Something that even Crassus woul be proud of.

>>55108037
how long ago did you sell?

bump

>>55107871
houses that are considered to be bags by many of the locals are being bought up.

Bump

>>55107871
The office market is collapsing because of outsourcing, ai, and wfh. The office market is largely what brings commuters to major cities and drives revenues up for stores, tourist attractions etc. The office market is expected to *permanently* shrink within the next 10 years so no offices = no store revenue = no reason to be near cities. Real estate in these areas will decline but will be like a frog in boiling water situation rather than a pop - that is if the major players don't pull out all at once.
If you pay attention, the "shift back to normal", is just a way for businesses to earn money back on their real estate portfolios. It's a coordinated push by major players to bring office prices back up artificially for some time. Ofc it won't work once the economic downturn hits and having an office won't be financially viable anymore.

>>55108047
Kek

Is my math wrong? It would average 70k~ assuming that's not a larp video. And crack shacks cost 200k+ now. So what gives?

Is there a rape hatch in the bathroom?

>>55108037
Based anon dapping on reddit investooors

>>55111865
In florida on the gulf coast I used to see 8 unit apartment buildings for $300,000 in 2013-2016. Now they would probably cost at least $3 million.

>>55111057
>no reason to be near cities.
Cities existed a long time before people started working in offices though.
Online "communities" cannot replace irl interaction.

>>55107871
I recently converted my old house into a rental property which is turning a profit. Of course, me winning isn't allowed so something bad has to happen. Like the housing supply crashing biggly which brings rent prices down to fuck me for example.

>>55112420
>housing supply exploding biggly
Am retard, no bully.

>>55112420
I think there’s going to be some more rent inflation so you’re in luck anon
T. Real estate anon

>>55107871
>what signs of cracks are you seeing in real estate?
None? Higher rents --> people pay more than willingly since they just love the bustle and hustle of the big cities (and since salaries have improved significantly in Europoor)
We bought an apartment last year and it's already more valuable. Low property production because "high" rates and "recession" --> lower supply, but since the demand just keeps increasing (especially in large cities)... well, let's just say property prices have either stagnated or gone up depending on the location.
Let's hope property prices will skyrocket. It's good for the economy. I can't believe people are waiting for some kind of bubble to burst and property prices to plummet. Not gonna happen

>>55107871
>cracks are you seeing in real estate
lmao bruh

>>55107871
>4288 units
>$335M
>average unit = sub $100k
holy ghetto landlord

>>55107871
I recently learned fixed rate loans for investment properties are not the same as fixed rate loans for primary residents. Have an acquaintance that bought a triplex and the lender is adjusting their interest rate. Guess commercial real-estate loans can have the interest rate adjusted every five years.

>>55112925
He's probably invested into a few big apartment complexes along with single family. He's probably also not the sole investor in the complexes.

>>55107871
>I've met two people IRL that bought investment homes after watching TikTok videos

>>55108037
Kek good job, anon. What sort of fantasy math did that guy calculate to even come close to reaching a positive cash flow?

>>55113350
Its surprisingly common now. Everyone I know talks about buying retails now to earn "passive" income.

>>55113483
>retails
rentals

>>55113483
>Its surprisingly common now. Everyone I know talks about buying retails now to earn "passive" income.

>>55112908
I... I don't think that's even legal?

As others have said. What cracks?

t. Forever priced out

The forclosure market is going to go absolutely nuts before too long. On one hand you’ll be competing with some large corporations when it’s obviously the right time, but if you can at least net 2 or 3 homes that’s as good a start as any right there.

>>55113553
>The forclosure market is going to go absolutely nuts before too long.
lol
why would it?
people refinanced at a time were mortgage rates were at a generational low and the US economy is firing on all of the cylinders right now.
everybody has a job, muh layoffs FUD is either that or is getting entirely absorbed by record job openings, millions of browns are pouring into the country ready willing and able to spend what they don't have.
Based Ramsey will be proven correct. The bubble was not in price, the bubble was in the rate of increase.

>>55113585
So fucking true. This is indeed a new paradigm and this time is truly different.

>>55113549
Buy anything in a big city no matter what

>>55107871
Random strangers keep sending me cash offers for my house even though it's not for sale

>>55107871
should i get my tenants out of my house and sell it?

>>55113549
>I... I don't think that's even legal?
It's california, the law won't do shit

>>55113729
You should increase their rent by $300 for shits and giggles

>>55113585
And yet there are STILL retards out there buying out of clear desperation despite the interest rates increasing at a pace never before seen just so they don’t feel like they miss their chance to buy a methhouse for 200k. There are also a large portion of these people that are going to get laid off, have to take a lesser paying job, and eventually won’t be able to make ends meet. It’s like peak 2021 shitcoin season when everyone was buying any scam token they could. FOMO if you will. Not to mention Biden passing that recent bill saying you’ll be paying for Shaquanda and her 7 kids to move in next to you and drive your property value down. >>55108037 is already proof (if not an outright larp) that it’s beginning to crumble, and the here’s certainly more out there like it.

>>55107871
I was in Spain in 2007 when this happened. Biggest residential real estate bubble I believe in history. Local boomers ALL had a second apt on the beach to rent.
The slide took years to happen, but when it did it sunk the national economy for a decade (gdp still under 2007 levels by some metrics)
The US, of course, is a much healthier economy and they WILL bail out homeowners if necessary.

But still, I would predict a solid 20-40% slide before 2026. Fundamentally, there's no reason for houses to be more expensive now than they were in 2015. Small time investors will cry and seethe, but the fact is that a house is just a house. They will go through the whole grieving cycle and end up capitulating at the bottom like they did in 2011. Those who didn't get foreclosed of course.
The key here is to have some cash laying around after that.
Renting sucks but FOMO is worse.

>>55113894
>housing only appreciates.
>i'm house poor now but after a decade of COL raises i'll be saving money again.
>i'll just refinance to a lower rate, too.
>owning a home is cheaper than renting.
>you can't time the market.
>the best time to plant a tree is 20 years ago. the second best time is now.

>>55112389
Cities existed before because online shopping did not. Unironically.

>>55112389
Most cities worked to keep niggers and trannies out, not bus them in.

>>55108047
cheeky bastard

>>55114053
damn that is a powerful pepe

>>55113553
Banks just keep the foreclosures now to rent, you can't buy them.

>>55115036

No they don't. Bank regulators punish banks for holding on to real estate. Banks sell the foreclosed property off to private equity groups who then list them out for rent.

Dont know girlies, I hope the bubble will crash, now that FED is raising interests and the recession will probably strike. In 1991 and 2008 the housing market crashed big time. But it takes time. First the market freezes, the sellers still ask for the same price, they do not accept the game is over.

I am skeptical too, because government and central banks are doing all they can to save the housing bubble.Maybe it will take long time for overpriced real estate to come to their normal value. But the ones who believe that the prices will go up are completely delusional (and probably the house owners so whisful thinking). There are less and less buyers and investment hedges investing in real estate like Blackstone are in trouble

>>55112389
For the average joe there really is no reason to be near cities. People might travel to cities still for big events, but eliminating the daily commute is what most workers strive for. They'll still have their place, but will be significantly smaller than they are today with most people preferring local communities such as suburbs and small/mid-sized towns (low col).

>>55112989
30 years fixed is for residential in the US only thing.

Almost all commercial loans are either short term ARM or balloon loans.

>>55107871
I am seeing that residential sellers want 3% mortgage rate prices. There is this new build subdivision that has first listed in 2019. They delisted from MLS and relisted two times with higher prices. They have only sold a quarter of them and have reduced prices by relisting on MLS at lower prices two times. They thought they could sell them at sky high prices in 2021 and 2022. Now they are holding a bag.

I am seeing that residential buyers are too afraid to put in a "low ball" offer. And by low ball I mean adjusted for interest rates. Office buyers are getting insane deals. Over 60% price reductions.

>>55115953
Still a very long way to go until serious downward pressure on home price. Commercial RE, especially office RE is getting rekt however.

>>55111057
>The office market is largely what brings commuters to major cities and drives revenues up for stores, tourist attractions etc.
No, office market brings in commuters for some stores and a good deal of restaurants. Hybrid work will be the most common so spending will be closer to home for those. What is going to happen after this is all said and done is dedicated office-only space will be rare. Small cities that have a good infrastructure base will be able to capitalize on hybrid work. Cities that are primarily a bunch of sprawling subdivisions that had commuters go into the big cities will have major infrastructure changes to make. Big cities that relied on those sprawling subdivisions and dedicated offices will instead have their offices demolished or renovated into mixed use spaces which will cause an increase in residential supply. Basically, the end result will be the death of the suburban subdivision that only existed because it was a cheap way to live near the big city.

>>55116040
>Cities that are primarily a bunch of sprawling subdivisions that had commuters go into the big cities will have major infrastructure changes to make
The majority of US cities fall into this category.
Also suburbs are not cheaper to live in lol. Maybe when they initially were built but today they're out of reach for most people. I'd say that's true for metro hubs like NYC where the further from the city is cheaper but for the bulk of cities living in the suburbs is too expensive for most people, so they either rent, roommate, or live in the inner-city areas (ghetto).
Suburbs will 100% take a major hit in value and so will many city areas if rich commuters stop coming so often.
Hybrid work I can see becoming more commonplace but that raises the question why they won't just go full wfh to cut costs more.
Also big cities will shrink and negatively effect the housing market around them.

>>55116040
>>55116185

What I see happening is instead, the ones with a big city salary and access to WFH and hybrid scheduling, buy out in the suburbs, inflating the prices in those areas. And the influx of illegal and legal immigrants fill in the gaps left behind, living several to an unit.

It has calmed down somewhat, with the recall back to office, but that has stalled too, so now we're in a gridlock until something breaks or the fed relent and cut rate.

>>55107871
>what signs of cracks are you seeing in real estate?
in a major southeastern city, many people moved here during the pandemic boom and bubble. seeing tons of posts on nextdoor from people 1-2 years into their new home "suddenly" finding necessary major repairs or issues. double whammy is they are completely shocked from estimates they are getting on the repairs and that they can't afford it because they are house poor.
that and a large general uptick in complaints from new urbanites complaining about every thing happening around them. noise, cars, business hours of any business, food, freaked out whenever anyone walks in front of their house. basically mentally unprepared to live in a population dense area but were lured in by a nearby dog park with a bar or something. can see people like this eventually taking a loss and going back to the suburbs.

>>55118354
Interesting. The cost of living in the south lured a lot of boomers in with venture capital but I can imagine the returns haven't been as great as they hoped. Is there common theme with "new arrivals" to the area?