4 ms·

I'll add this little bit of advice. Sell every bit of real estate you own. Now. If you can. Rent for a year or two. Then jump back in when it hits bottom. You

I'll add this little bit of advice. Sell every bit of real estate you own. Now. If you can. Rent for a year or two. Then jump back in when it hits bottom. You'll pocket a ton of cash and then have the same or better property at a significantly lower cost.

WillPostForFood 4y ago
Maybe good advice if you are a house flipper sitting on inventory, not that useful for the typical home owner with a family.
- ChicagoDave 4y ago
  If your house is currently worth $200+k over what you owe? I say cash in and buy something later. A lot of people will lean towards stability, but a savvy financial person would sell sell sell.
  - harambae 4y ago
    It can be (mildly) emotionally scaring for young children to move houses. I mean, they'll get over it, but it can be a lot of crying in the short term. And that's not even getting into the costs associated with moving out and moving back in, and probably taking your vacation time for the year to do so instead of going somewhere fun. It's not just a dollars and cents issue when it's your actual home.
    - ChicagoDave 4y ago
      100% agree. If you're a settled family with a 2% APR 30yr fixed, don't do anything. I'm more talking about people that are flexible.
    - eftychis 4y ago
      Well that is one of the many arguments of why turning people housing/"homes" to investment is a terrible idea.
torstenvl 4y ago
every bit of housing * Land is a totally different market and hardly affected at all by interest rates since almost nobody will give you a mortgage for vacant land.
- bombcar 4y ago
  The way to get mortgage on vacant land is to buy some with a house on it (bank often won’t care if you’ve combined parcel, etc) - then they consider it a house. Even if the house is on a hunner acre wood.
bogomipz 4y ago
>"Rent for a year or two. Then jump back in when it hits bottom. You'll pocket a ton of cash and then have the same or better property at a significantly lower cost." It's my understanding that this is what a lot of people who sold their homes recently at the top of the market are doing exactly this. And this is one of the things that is driving up the prices of rents. If you pocketed a substantial windfall you are probably fine with paying an inflated rental price while you wait out the market. It's hard for me to imagine anything will be different in two years if all of these same people waiting out the market plus first time home owners all attempt to get back in to the market at the same time. Isn't it just the pandemic housing rush all over again?
whycombagator 4y ago
Where does the 1-2 year time horizon come from? What did you analyze to arrive at that? Did you consider those that got 30 year 2.5% mortgages that will need to take out 6-6.5% mortgages currently & possibly higher in 1-2 years?

WillPostForFood 4y ago

Maybe good advice if you are a house flipper sitting on inventory, not that useful for the typical home owner with a family.

ChicagoDave 4y ago
If your house is currently worth $200+k over what you owe? I say cash in and buy something later. A lot of people will lean towards stability, but a savvy financial person would sell sell sell.
- harambae 4y ago
  It can be (mildly) emotionally scaring for young children to move houses. I mean, they'll get over it, but it can be a lot of crying in the short term. And that's not even getting into the costs associated with moving out and moving back in, and probably taking your vacation time for the year to do so instead of going somewhere fun. It's not just a dollars and cents issue when it's your actual home.
  - ChicagoDave 4y ago
    100% agree. If you're a settled family with a 2% APR 30yr fixed, don't do anything. I'm more talking about people that are flexible.
  - eftychis 4y ago
    Well that is one of the many arguments of why turning people housing/"homes" to investment is a terrible idea.

torstenvl 4y ago

every bit of housing * Land is a totally different market and hardly affected at all by interest rates since almost nobody will give you a mortgage for vacant land.

bombcar 4y ago
The way to get mortgage on vacant land is to buy some with a house on it (bank often won’t care if you’ve combined parcel, etc) - then they consider it a house. Even if the house is on a hunner acre wood.

bogomipz 4y ago

>"Rent for a year or two. Then jump back in when it hits bottom. You'll pocket a ton of cash and then have the same or better property at a significantly lower cost." It's my understanding that this is what a lot of people who sold their homes recently at the top of the market are doing exactly this. And this is one of the things that is driving up the prices of rents. If you pocketed a substantial windfall you are probably fine with paying an inflated rental price while you wait out the market. It's hard for me to imagine anything will be different in two years if all of these same people waiting out the market plus first time home owners all attempt to get back in to the market at the same time. Isn't it just the pandemic housing rush all over again?

whycombagator 4y ago

Where does the 1-2 year time horizon come from? What did you analyze to arrive at that? Did you consider those that got 30 year 2.5% mortgages that will need to take out 6-6.5% mortgages currently & possibly higher in 1-2 years?