If there is a housing bubble, how do you think it would affect you, either directly or indirectly?

 

if there is, i hope it bursts cuz then my mom might have a chance at buyin a house, instead of wastin cash on rent.

 

That would be a plus for those who want to own their own home. You know, the American Dream.

 

Its no bubble, its a balloon. If it breaks - it will be good for some, and disastrous for others. If I knew then what I do now, I'd have never bought what and when I did - even though it seemed cheap by comparison with California.

If I had lived in the area for a year or more, and had time to find out what was really going on with properties, mine would have been paid for long ago. It would have been worth more than I got it for too.

At this point, I believe:
Anymore than $5,000.oo for a full acre of land is stupid.
Anything over $500.oo/month for a mortgage is a ripoff.
Buying a house for "Location" is like buying a Car for "Looks".
Brand New means Big Trouble.
As with Automobiles - if it is built by someone else, you can't trust any of it.
Special Offers mean something is cheap or wrong.
New Price means It Won't Sell - You gotta wonder why...
Close to Schools and Shopping means too much traffic, and vagrants.
Modern Appliances means Jacked Up Price.

There has been a huge over-pricing rush in some areas, much as the yuppies did to many things in the seventies. Don't buy a house of cards, sooner or later the wind will shift. I think a lot of people will eventually lose their investments in California because they bought practically nothing for way too much, thinking that they were getting "A good deal, for the area".

If something just isn't worth the money - even if its got the most beautiful location imaginable: It still isn't worth it.

 

1/2 acres in a decent part of town here runs more like 40,000. I completely agree.

 

move to missouri. that's the solution.

Ryan

 

Missouri is beautiful in many parts and not overcrowed yet. If you want it to stay nice, then hope that people don't take your advise.
Dono

 

Around me, houses are red hot and land sales are picking up. The fire is being driven by people who, for some odd reason, recently discovered that with low rates they can afford a better house. They are just flipping houses is all. IMO, since they could afford the given payment for their old house, and assuming the new payment is about the same, there will be no popped bubble when it's all said and done.

On land sales and $5000/acre being stupid, well, the market sets the price. People will pay what the market will bear. I remember not too long ago where $2500 was spendy and it dictated that the land be special somehow (view, etc). Those days are gone. $2500 now = flawed land around me. For example, last week I looked at an awesome 20 acres priced at $50k. This property has a most spectacular, commanding view of surrounding mountians and a river and is very private. I'm in love with it. The problem is (flaw), there is a 1 1/4 mile long PAVED, NICE easment to the property. The (obscene, bitter, profane language editied by CowboyBilly9Mile) county will not issue any building permits to landowners on this easement until the road is built up to county standards. Rule of thumb here is $100K per mile to do that. Surveyed, engineered and all or no building permit. I did my homework at the county courthouse on Friday looking for options/ways around this as well as confirming the problem. Well, needless to say, that has a very negative impact on the value of the 20 acres that I'm foaming at the corners of my mouth to own, right NOW, cash in hand. Variance from the county? Maybe. As I was leaving the courhouse, they did wish me a nice weekend. Thanks guys . Add some insult to injury. I'm planning to talk to a real estate lawyer this week. I think if they pulled out a single wide trailer last year, roughly 60 feet long, down that nice paved easement that has a 90 degree corner that the county can get their precious fire truck in there if needed. That's what this is all about, a firetruck and money . On the other hand, I have met a higher up from the county some time ago. I think I'm gonna stop by the bar that he visits this Thursday, buy him a beer, and see if he can help .

 

I wish I could find land for $5000 per acre!

I looked at a 50' x 100' lot for $40k, but I couldn't fit a double-wide and garage on it.

My apartment is in the "nice" area on the edge of town and the lots here go for $75k to $200k -- just for the lot!

A new 1200 square foot house with 2 stall attached garage on a lot without any landscaping is $175k. A really nice 4 bedroom landscaped is over $400k in many cases.

16x80 single wide trailer on a lot (1970's model needing work) = $75k

The Californians and Nevadans are moving in and inflating prices to the point where the average joe like me can't buy a house! BTW I'm in NW AZ these days...

 

here in canucksville, british columbia to be axact, the average house now is 325,000 bucks, how are young people suppose to ever own a home, its rediculous

 

It's like that everywhere. I think it's called the advancing and declining of civilization; if that makes any sense.

 

I don't think that the "bubble" will pop. We may start sliding down the other side off it, but it's not going to drop us hard.

Land around here....$180k for an improved, 1 Acre lot. I've seen up to $105k without improvements too. In fact, I just picked up another 7 lots...$350k a lot for improved acre lots. It's getting pretty crazy.

I'd like to say that I want the "bubble to burst' so that I can buy a house. I'm now renting again and actually move in in 3 weeks. But, this boom means more money for me and more work....I'll take it.

Right now...25% of new home sales are investors, who come into a new development, and buy up a few houses, and sell them off after the rest of the development is built and appreciated. Take a look next time you drive past a new development and see all of the 'for sale' signs.

 

Greywolf... I enjoy 99% of your posts but I have to disagree with this statement on a lot of fronts. Location is almost always "everything". Ask Donald Trump. His fortunes where made because he made good real estate moves in great locations. But aside from that...

What about location for your children's school?

What about location for proximity to an ailing relative?

What about location to your job so that you don't spend half of your day commuting leaving valuable time to do your real job as a husband and father?

the list can go on and on. I assume that you made that statement as a generalization. But buying a house for location ain't even close to buying a car for looks.

just my opinion,

Scott

 

I think "coachhomer" makes a good point. A lot of us are getting to that age where location is some what important; such as medical care and driving times/distances to various facilities, like the hospitol, or any kind of emc care.

Say you need emergency help and you live way out in the boonies, on a dirt road. It takes the ambulance 10 minutes just to get the front gate. You have a heart attack. You die, or worst yet, a vegatated state.

That's just a senario that never happens. Right?

But there are pros and cons to LOCATION.

Just my honest opinion.

 

I go to countryside just out of the city limits of Pleasant Hill pretty often, as my brother lives there. Prices have DRAMATICALLY gone up. I have one other friend that lives out there, he and his wife sold their golf course to Lowes, and that whole developement group, and just sold his last little bit to the new Bass Pro being built. I wonder what you consider cheap?
A couple of years ago, I missed out on a house I liked, it sold for $20,000, the guy that bought it fixed it up and sold it for $60,000. Last year it sold for $80,000.
Starter homes now go for $110,000 around here, low income homes go for $70,000. Another friends house was purchased for 90,000 ten years ago (on a ten year note) and it appraised for 190,000.
I live in a house that was built in 23-27 (haven't found exact year as it was the show house), it sold for $3000. Granparents bought it in 57 for $16,000. I inherited grandma's half and bought out my mom for $23,000. I fought to get the property taxes lowered as, the resale value around here sucks, from year to year the value can change by more then $10,000, I am one of two houses in the AREA with a shared driveway (and I know what the other one on a bigger lot sold for), and the school district KILLS resale. If the house was a mile down the road, this year it would be between 30 and 50,000 more. I have a lot of "rich" friends and builder friends that build them homes, I've been in one that a closet was the size of my house, and my mother has never believed some of the "tenament complexs" houses that I know about. It really comes down to how much do you want to spend for a place to hang your hat?

There is the old argument about social security that will have direct effect on this, if accurate.
"The baby boomers didn't have enough kids to support them", ok, so if that is true, then as they start going to the maintence free properties, wouldn't houses start dropping and become a buyers market, as more empty houses mean houses worth less? IF it's not a bubble, then it will be a "correction"!