congrats wallace on your profits. it’s your call as to what to do. do a 1031 or maybe even a starker if you need to. btw you have a cool website!
Play wallace play! I always look at it like this twenty years from now you might sit there and say you know kids I bought two houses there and made 200k in one day…Or you know I could of made 200k in one day there but decided not to do it! I like the first one better
Trump breaks ground here tomorrow.
On Condos, they are priced from 500k normally. The Curve has their worst unit on first release priced at $385k. They want 20k in earnest to get on the waiting list.
Make sure your fee is refundable.
I would not expect fast appreciation on the condo since there are “potentially” many being built around the strip. The condo market itself has been on fire here and continues to grow. Aside from the massive amount of pre-selling being taken, we are moving about 600-700 resale condos monthly right now.
On the home, if it is nothing special to look at, I might take the money and move on. However, I might keep it since you are on the low end of the home price scale for the area. For me, it would depend on why the home prices are going up. If nothing more than possible location issues and buying frenzy, I dump and move.
Although I am a real estate investor, it is stupid for anyone to think that real estate has no where to go but up. Similar to the stock market, there will be upward trends and downward trends. Right now fortunately we are in temporarily in an upward trend.
I do believe there will be localized bubbles in areas such as california. Yes I own rental property out in San Diego, CA but I am prepared if there is a bubble. I have enough assets to sit it out for 10-20 years if necessary. I hope most of you will be able to do that in a downturn, if not then you should be reevaluating your situation.
People who are buying property using interest only are not doing their research when they assume that real estate has no where to go but up. When interest rates start going up, many of these people will no longer be able to afford their monthly payments. I just hope all of you are prepared when the bubble pops. No one knows when, it could be next month or it can be in 10 years. The only thing certain is that it will happen eventually.
What planet are you on? People like you are the ones buying real estate using interest only loans. But since you are a broker, it probably would be in your best interest to try to convince as many people as possible to buy real estate. I am not trying to be mean here - just trying to give you a reality check.
In the late 90’s, everyone laughed at Warren Buffet for not jumping on the dot com/Tech stock bandwagon. Everyone was taking out loans and trading on margin to invest in the stock market because the stock market had no where to go but up. Warren Buffet wisely said he did not want to invest in something he did not understand. Very good advice from the second richest man in the world. Please do your research before you tout to everyone real estate has no where to go but up.
“They want 20k in earnest to get on the waiting list.”
WOW!!! :o
“People like you are the ones buying real estate using interest only loans.”
Oh Molarband…honestly! What makes you think you’ve an inkling into someone’s investment strategy on the Internet?
And for the record…I don’t have a problem with interest only loans. I think it’s just another tool in a purchaser’s (and investors) arsenal. I for one don’t want a critic looking over my shoulder when I’m investing. All I want to know is; is what I’m doing legally permissable? Is it the best avenue to take based on MY analysis of the market? What are my other choices.
“But since you are a broker, it probably would be in your best interest to try to convince as many people as possible to buy real estate.”
I’ve heard this before, and ironically enough…it’s always from the doomsdayer’s. However, consider this…I put my money where my mouth is…I invest. And how many deals do you think I’ve swung by convincing people on the REI website the “Housing Bubble” woopla is overblown?..a bunch of hype.
“What planet are you on? I am not trying to be mean here - just trying to give you a reality check.”
This view NEVER ceases to amaze me. Here’s a reality check for yourself:
I AM from planet REALITY!!! There is one irrefutable, absolute fact…“The Housing Bubble” is opinion…and to date–NOT REAL.
“Please do your research before you tout to everyone real estate has no where to go but up.”
Partner…please look at my qualifications. How do yours stack up? Now please go look at my past posts & the MOUNTAINS of data I’ve provided to support my assertions.
And finally…please understand you’re on an investment website & predicating that a ‘Housing Bubble’ MAY appear in the next 10 years is so much sillyness. For the record…I’ve NEVER said, “real estate has no where to go, but up.”
-Infowell
It depends on where you are. There is really a real estate bubble. It is by no means all over, and there are still good plays outside as well as inside of the bubble. But there is also a lot of time before the bubble breaks. It is like buying land in Hawaii or California. For a fact it is going to fall into the sea, or be covered by lava. But that is a long way off. The bubble will not pop, it will deflate. The bubble will give off signs before it deflates. You need to invest and watch for these these signs not go around saying there is no bubble.
The bubble is coming! The bubble is coming!
RUN!
If people spent half as much time planning their financial future as they do talking and worrying about a “bubble”, it all would not matter.
RE is cyclical. In some areas there is plenty of space to go up. In others, it is peaking and will eventually stall.
I hate how the elite media compares Real Estate “bubble” with the Tech “bubble”. I started doing a high level of business on the Internet around 1994 and just about every professional around me saw the tech burst coming. It was extremely easy to see what companies not to invest in (most of them).
The ones that got hurt were the uneducated. It happened to be many because for so many the Internet was new and they lacked the experience and understanding of what the Internet could provide and what was better left to the side.
Real Estate is not some new technology we, as a collective group, are just learning about. There are no real surprises. It is a solid tangible asset and not some fictitious company that could dissolve tomorrow and leave you with nothing but paper to look at.
The basic principles are something that is time tested and stable.
Make what you can, while you can. If things go south, walk away.
Great post Evergreen…finally a voice of reason.
“You need to invest and watch for these these signs not go around saying there is no bubble.”
I agreed with some of what you said BlueMoon (which is to say I disagreed with some too), but I wanted to ask…
…why is it those who don’t subscribe to a Housing Bubble aren’t suppose to go around saying, “there ain’t one,” while those believing in something that has yet to transpire (for years now)…expect everyone to subscribe to their theory?
This issue…is a hot button item, and reminds me of the old lead in to the Michael Medved show on the radio. It use to go something like this…“the liberals (read Bubble Believers) are complaining that THEIR message isn’t being heard…when it’s more like THEY’RE the one’s that never shut-up.”
I’m beginning to notice something quite interesting in some of these labeled Bubble Zones. That’s that residential building permits are dropping off significantly in some of these areas. Now before you take off like a ROCKET citing this fact as proof of a coming Bubble, consider this:
There’s still more than ample demand in these areas, and NOW you’ll have fewer dwelling units being built in the future. That’s NOT a recipe for a Bubble–it probably indicates a continued imbalance in supply & demand which is driving these markets.
Moreover, I’m noticing other areas (viewed as more affordable) picking up significantly in the residential permit department–the boom very well could be just getting started.
-Infowell
Infowell,
Not sure what states you are looking at, but I noticed the start of a trend this year–people leaving the high price coast area and moving to midwest and other low priced areas.
Thanks to the Net, Wireless, and the acceptance of non-brick and mortar presence, many people are being unchained from their geographical location. These people are moving out of places where homes might be 500k+ and moving to areas where homes can be had for 100k-200k.
For example, a 3/2 2200 sq ft home in a good area here will run you over 400k and rising. However, you could have the same home in say a suburb of Houston for $120k. Many would find the change in culture and environment negotiable for such a drastic reduction of the cost of living. Also Houston is a major city and not some small peon town in the middle of nowhere.
Just something to think about. Texas, specifically Houston, happens to the place I have my eye on the most right now. I like the dynamics there.
Care to share what area you like for future growth? 
“Not sure what states you are looking at, but I noticed the start of a trend this year–people leaving the high price coast area and moving to midwest and other low priced areas.”
Others are noticing the same trend…stands to reason…liquidate & reap the rewards.
“Care to share what area you like for future growth?”
Alphabetical order (call me crazy):
Ashland/Medford (Siskiyou’s strand people…kidding)
Atlanta (Already heard a complaint about rising prices)
Boston
Dallas
Denver
Houston
Las Vegas (Residential permits slowing–still high demand)
Orlando
Philadelphia
Phoenix (California slosh over)
Portland/Vancouver
Sacramento (Yes…prices could go higher)
Seattle (Emerging market…my #1 pick)
Tampa
Washington, D.C./Baltimore (whadd’a ya kiddin me?)
West Palm Beach, Fla.
Time’ll tell
-Infowell
it’s like a wave going from more expensive to lesser expensive areas. in southern calif. the wave is eminating out from orange county/san diego county to riverside/san bernardino county. from central/coastal calif. to the bakersfield, ca area. from calif. to las vegas. from las vegas to the phoenix, arizona area an utah. now people on this website are talking about texas. where is the wave going to next???
I really hope Denver I am in a ton of good debt here!!!
GO DENVER!!!
“…it’s like a wave going from more expensive to lesser expensive areas. in southern calif. the wave is eminating out from orange county/san diego county to riverside/san bernardino county. from central/coastal calif. to the bakersfield, ca area. from calif. to las vegas. from las vegas to the phoenix, arizona area an utah. now people on this website are talking about texas. where is the wave going to next???”
A very apropos analogy.
San Bernardino was booming a couple years ago–overflow from more expensive Orange County–I’d never seen so much groundbreaking!
Surrounding areas benefit from nearby hot markets & there’s less risk in my opinion. Like a surfer…I like to catch a wave at just the right time…not too early…not too late.
Mariposa County in Arizona looks enticing, as does Snohomish & Pierce Counties in WA. Co looks like it could take off again if the economy continues to recover, and the jury’s out on Texas thanks to the new socialist views on Lease Ops. Atlanta’s apparently growing again, and who couldn’t love Florida (huricanes aside). Sacramento, and I forgot Tacoma (sounds like a Steve Miller song).
Lots & lots of opportunity out there…let’s talk vacation homes.
-Infowell
Why Philadelphia? It makes no sense when the trend lately has been leaving the city.
“Why Philadelphia? It makes no sense when the trend lately has been leaving the city.”
Why Philadelpia? because that area’s affordable comparatively speaking for the East Coast.
Watch the immigration numbers (new in country & 1st generation).
-Infowell
I see what you mean Evergreen. Your problem with bubble seems to be the term “bubble”. We both believe that real estate is cyclical and all areas will eventually stall from time tio time. The bubble will not pop, but when it stalls, it will feel like a pop to those left holding houses bought wrong. I saw it in Houston in the 1980s. People bought 5,000 sqft houses for $800k and got them forclosed on and the banks ended up with so many of them that they had to dump them for $150k. These people felt like a burst to them. I want people to be scared enough to look for the signs. That is why I call it a bubble. I will call it a pickle if it will make people look for the signs and not get caught when RE stalls.
My other problem is when shows/media tries to tell the average person to beware of a RE bubble. If you are buying a home to live in for quite some time, you should not let the fact that it might go down scare you. People buy depreciating assets with limited use all the time. Vehicles come to mind.
If I buy a home to live in today and my mortgage payments are $2,000 monthly and I am ok with this, does my situation change for the worse if my home goes down 20%? Nope.
If I buy a property to hold and rent and the cash flow is positive, will it matter if the property goes down 20% tomorrow? Nope. As long as my rent is the same, nothing has changed.
I really think the ones that need to be scared are the straight flippers. If you are worried that property will stall out, value wise, invest where appreciation/depreciation is out of the cash flow equation.
Besides, like CNBC said, if there is a bubble and it bursts, Koreans are the ones who will get hurt the most.
actually nothing changes if and only if
- you have a fixed rate loan, which most new home buyers in highly
appreciated areas do not. [80% of loans in san diego are variable] - when the home prices drop, so usually do the rents. if your rents
don’t cover your mortgage and the price is dropping every month, how long will be able to psychologically bear it? 1 year, 2 years, 10 years???
Anyone have opinions on metro Detroit? I really have no interest in the city itself, but the surrounding area where I live, I am interested in. I have a lot of houses within a few minutes of my residence. This area has lost jobs by the thousands for a few years running, but up until recently, new construction was being built at record rates, housing sales have been brisk for the most part, and people have been leaving the area because of loss of jobs.
I would like to know where to do some research on my area. I want to know the best type of investing for an area like this. There are still decently priced houses here in good areas. The areas north of Detroit are where a lot of the newer construction has been built, and also where people seem to want to live. That is where the undeveloped land is. Building seems to be slowing, based on my uneducated opinion. South of Detroit, is a bit older, but the areas are nice, and prices reasonable. I live south of Detroit. I want to know how to research things like the rental market, housing sales, appreciation, foreclosure rate, etc…if it’s possible.
I hope the above aren’t too vague. I am fairly new to investing, and I don’t know some things…but I feel ok to start. I’m not going to try to find out every single thing before I start, but at the same time, there are things I can learn while I am starting. I won’t be one of these people who take forever to learn everything, but never do anything. I know enough to start, and will learn more as I go. I’m just looking for opinions on the “right” type of investing for an area like this. I won’t limit myself to anything specific, but obviously, there are good and bad things to do in certain areas, based on a lot of factors. I don’t plan on buying and holding right away, until I have more cash reserves and more knowledge, but I can still make money. Any opinions are greatly appreciated.