Home prices

[funksouljon]

When we were picking a house as newlyweds just over 10 years ago the primary consideration was the schools system.
My wife, as a children’s therapist, had direct interaction with the school administrations in the seven county area.
She knew where we wanted to be, and most importantly where to avoid. I would have been clueless.
Of course I didn’t want to be a huge commute from work, but I wanted to be nearer the woods.
Our timing was fortuitous, as we snagged our house in 2011 for roughly the 2004 going price in the neighborhood.
Purchased for 177k when the seller had picked it up in 2008 for 222k (and then they pulled permits to install gas fireplace, gas range, and inline gas water heater!). Zillow says it’s added 100k in value, but I’m not going anywhere.

Ditto to the bold. It is a huge limiting factor on where she is willing for us to move in this area. Even if the new option is going to get better due to lots of money moving in.

 

[seminole97]

Ditto to the bold. It is a huge limiting factor on where she is willing for us to move in this area. Even if the new option is going to get better due to lots of money moving in.

Where?

 

[Phenomenally Frantastic]

Nuts

My neighbor's house was purchased 1 year after mine for about what my house had listed for (but I negotiated down on it). They divorced and sold this year; went for >$200k more than just 6 yrs ago.

And, apparently the inside wasn't terribly well kept up, as the new folks had flooring redone, and just got all new appliances this weekend; the older appliances that were being dragged out were definitely "not a selling point"....

A correction is most certainly on the horizon, as I don't see how these prices are sustainable.


The other thing I tend to notice around here, is that in the neighborhoods of $0.5M to $1M priced homes, people drive Subarus and Hondas and Toyotas (a few Teslas).

When you go to the "apartments" and $200-300k houses, you see folks with the tripped out trucks and Mercedes/Lexus/BMWs. Sure, those are around here, too, but many of the folks in the high-end houses seem to spend a lot less on their cars....and have a lot more invested in their properties....

Millionaire Next Door (book)

Millionaires tend to spend less (as a percentage of their income) on outward signs of wealth then low income earners. Which in turn keeps them(LIE) low net worth.

 

[Finance85]

Millionaire Next Door (book)

Millionaires tend to spend less (as a percentage of their income) on outward signs of wealth then low income earners. Which in turn keeps them low net worth.

There's some truth to that. Twenty years ago, my neighbors across the street had all the signs of wealth. Two executives, with 2 kids. Mercedes SUV, designer truck, dirt bikes, big boat. Turns out they were highly leveraged, and got foreclosed.

 

[funksouljon]

Where?

We are in District 20 for Colorado Springs. I would like to move to the Palmer Lake / Perry Park area OR Black Forest. Both have few options at the price I am willing to pay. The commute issue keeps coming up.

 

[Tenacious E]

I’m quickly realizing this with Colorado. Getting transferred there this Spring/Summer and have been looking at homes. It’s an eye-opener. I live in downtown Chicago and am shocked at housing costs in Denver. While we will have to buy a more expensive house than we’d like ($900k or more) the payments will even out as our property taxes ($1300/month)are much higher here than in Denver at $500/month. If it wasn’t for that, we’d be completely screwed.

$6K in property taxes on a $900K home??? Jesus. In Ankeny they would be $20k

 

[silasstarr]

Nuts

My neighbor's house was purchased 1 year after mine for about what my house had listed for (but I negotiated down on it). They divorced and sold this year; went for >$200k more than just 6 yrs ago.

And, apparently the inside wasn't terribly well kept up, as the new folks had flooring redone, and just got all new appliances this weekend; the older appliances that were being dragged out were definitely "not a selling point"....

A correction is most certainly on the horizon, as I don't see how these prices are sustainable.


The other thing I tend to notice around here, is that in the neighborhoods of $0.5M to $1M priced homes, people drive Subarus and Hondas and Toyotas (a few Teslas).

When you go to the "apartments" and $200-300k houses, you see folks with the tripped out trucks and Mercedes/Lexus/BMWs. Sure, those are around here, too, but many of the folks in the high-end houses seem to spend a lot less on their cars....and have a lot more invested in their properties....

I've never understood the folks who buy $50k+ cars/trucks and are broke. I like nice cars too, but I'm not going to spend the money to own one. I drive 25 mph in town. Why do I need a car that can go 0-60 in 4 secs?

 

[silasstarr]

Starter homes here are like 1 million or so.

Bay area?

 

[Tenacious E]

I've never understood the folks who buy $50k+ cars/trucks and are broke. I like nice cars too, but I'm not going to spend the money to own one. I drive 25 mph in town. Why do I need a car that can go 0-60 in 4 secs?

First, I agree that you shouldn't own a $50K car if you're broke. But second, have you ever gone 0-60 in 4 seconds? Amazing

 

[Finance85]

First, I agree that you shouldn't own a $50K car if you're broke. But second, have you ever gone 0-60 in 4 seconds? Amazing

It really is.

 

[ConvenientParking]

First, I agree that you shouldn't own a $50K car if you're broke. But second, have you ever gone 0-60 in 4 seconds? Amazing

"0-60 in 4 seconds" is I think a better name for the strikeout:

 

[Tenacious E]

"0-60 in 4 seconds" is I think a better name for the strikeout:

View embedded media

I have no idea what I just watched but I was entertained.

 

[ConvenientParking]

I have no idea what I just watched but I was entertained.

It's a scene from Beerfest, another comedy from the same guys that made Super Troopers. Turn of the century classic.

 

[tarheelbybirth]

Just think of what you’ll be able to buy when the kids are out of the house and you and your wife move to Iowa!

Hell, he might be able to buy Iowa.

 

[ANYCHawk]

They are a bit on the high side in Manhattan

 

[ANYCHawk]

That's the part I don't understand. Consider:

• Appraised value is $400k. Buyer offers $400k and is going to put down $80k, leaving them with $80k equity and $320k loan balance. Bank say, "fine"
  
  
• Appraised value is $400k. Buyer offers $410 and is going to put down $210k, leaving them with $200k equity and $200k loan balance. Banks says, "No, you are overpaying."

WTF? How does that make sense?

Just guessing, the banks are in it to make money too, by putting that much down they don't make as much in interest.

 

[praguehawk]

Well, that's simply not true. Even for a place like Tradition Manor, you can still deduct the first $750,000 of indebtedness, and that rises to $1 million for debt incurred before 2018.

Explain what you mean by this please.

 

[The Tradition]

Explain what you mean by this please.

Publication 936 (2023), Home Mortgage Interest Deduction | Internal Revenue Service

www.irs.gov

 

[3boysmom]

I just looked and within 5 miles of my zip code there are zero houses with 3 beds and 2 baths under $200k. Under $250k are all split level. And only 20 total under $300k. To get something that I’d actually want to go to the trouble of moving it would take $400k. That’s insane. I don’t want to tie up my money like that. Same with a car. I’m perfectly happy with my sub $25k car. If there is anything COVID has done for me it’s made me really uncomfortable with taking on more debt.