Bryson Posted January 13, 2005 Share Posted January 13, 2005 Originally posted by rebonn: I kinda like this place. Neat and organized. http://home.mindspring.com/~redbugg/Img63.jpg. That's what the same money Drew paid for his lovely place will get you in So. Cal. _ Link to comment Share on other sites More sharing options...
Dak Lander Posted January 13, 2005 Share Posted January 13, 2005 Originally posted by djwayne: What I'm saying is, "If your momma told you real estate always goes up in value, your momma lied to you." If you think there will always be a buyer waiting in the wings to buy your house at your price, you will be surprised. Some houses in that price range only will be affordable for so many people, and it could be a tough sell, if you have to re-sell it in the near future.Certainly there are going to be short term declines, dependent on area, national and even global economics that trickle down. Sometimes those declines may take quite a long while to return to their pre-decline value. They will, however return, and, actually increase. If you do the requisite research and don't overextend you'll safely be able to ride any declines out. Obviously if you don't do due diligence, buy a property in a declining or non-desirable area, or you pay too much for a given property you stand a good chance of losing money. The thing is, even with those suppositions in place if you have the wherewithal to stand pat you will end up with an increase in equity. The key to real estate, like any investment is LONG TERM. If you purchase a property and intend to make a short term killing, in a normal or declining market you're deluding yourself. That simply means don't buy a piece of property, unseen, somewhere like, "Mountain View California Pines", (not a real developement) at a low $59.99 monthly payment that turns out to be an abandonded, obsolete developement with a $12,000.00 price tag, plus interest, on a lot with a $1,200.00, or less, value. The upshot of this is, stupid is as stupid does. Do the research and buy in the right area, at the right price and you will absolutely earn an increase in value in that property. Our Joint "When you come slam bang up against trouble, it never looks half as bad if you face up to it." The Duke... Link to comment Share on other sites More sharing options...
djwayne Posted January 13, 2005 Share Posted January 13, 2005 Sorry, but there are no guarantees on value in real estate. Yes, long term, in general prices increase, but you must be able to cover your holding expenses in the meantime, and be willing to wait. Years ago, (1980's), the Federal Reserve Board raised interest rates and home loans went to 16-21%, calculate your mortgage payment out at those terms, see what your monthly payments would be, and you'll see why buyers were reluctant to pay higher prices, and property values dropped. For many reasons, some sellers were forced to sell to the highest bidder, which in some cases meant taking a loss, just to get away from the holding expenses. Yes, the last 15 years has had mild interest rates, and home prices increased...but if those high rates come back, you can expect a real problem thru-out the housing market. Living' in the shadow, of someone else's dream.... Link to comment Share on other sites More sharing options...
Super 8 Posted January 13, 2005 Share Posted January 13, 2005 Originally posted by DakLander: Obviously if you don't do due diligence,Heh...huhehe... He said 'do due'... heh ha heh heh... Super 8 Hear my stuff here Link to comment Share on other sites More sharing options...
DWBass Posted January 14, 2005 Share Posted January 14, 2005 Originally posted by NYC Drew: Sorry! I'm now definately in packing mode. Closed on this house today. 3k sq ft + 1k studio ..err basement! I made an offer (Aug) $25k below what the sellers asked, they declined, I was on tour in Oct/Nov when I got a call from my broker that they'd take my offer. The house is 2 yrs old (well, now three - 2002). Gas fireplace, the usual acoutrements, 4br 2.5bth on 1.18 acres... This is Dutchess County NY, exactly 55.2 miles (47 by the crow) from where I am now, but a world of difference. For example, there's no snow on the ground here, there - 6+ inches. Area is called East Fishkill... Wish me luck. I'm tired, broke and tired and broke. NYC DrewI know the area very well. I lived in Peekskill for 8 years. I had friends in Fishkill and Poughkeepsie. Very nice area! I had to move to Virginia because there was no way I'd ever be able to buy a home in NY! Congrats! www.myspace.com/thefunkfather Link to comment Share on other sites More sharing options...
KenElevenShadows Posted January 14, 2005 Share Posted January 14, 2005 Originally posted by djwayne: Sorry, but there are no guarantees on value in real estate. Yes, long term, in general prices increase, but you must be able to cover your holding expenses in the meantime, and be willing to wait. Years ago, (1980's), the Federal Reserve Board raised interest rates and home loans went to 16-21%, calculate your mortgage payment out at those terms, see what your monthly payments would be, and you'll see why buyers were reluctant to pay higher prices, and property values dropped. For many reasons, some sellers were forced to sell to the highest bidder, which in some cases meant taking a loss, just to get away from the holding expenses. Yes, the last 15 years has had mild interest rates, and home prices increased...but if those high rates come back, you can expect a real problem thru-out the housing market.I think your argument holds water for relatively short-term ownership. But historically, the price of real estate has *always* gone up far more than it's gone down. If it didn't do this, then you'd still be able to buy a house for the price of a Hyundai. It's pretty simple. If you hang on to your property long enough, it will appreciate in value. If has declined in value from the time you purchased it, hang on to it (assuming that you have this option, obviously!) and it will go back up. Ken Lee Photography - photos and books Eleven Shadows ambient music The Mercury Seven-cool spacey music Linktree to various sites Instagram Nightaxians Video Podcast Eleven Shadows website Ken Lee Photography Pinterest Page Link to comment Share on other sites More sharing options...
fantasticsound Posted January 14, 2005 Share Posted January 14, 2005 Originally posted by NYC Drew: ...Also, what's with the "water softener device" in the basement???????Take care of that water softener, Drew! Feed it whatever salts are recommended and it will save you in many ways. Among other benefits, softened water is a more effective cleaner on its' own and as a solute for dishwashing detergent, clothes washing detergent, shampoo, etc. It also reduces the lint you'll glean in the trap of your clothes dryer. I don't agree with all of this, but check out this page for a brief description of what softening watter accomplishes. It's easiest to find me on Facebook. Neil Bergman Soundclick fntstcsnd Link to comment Share on other sites More sharing options...
PBBPaul Posted January 14, 2005 Share Posted January 14, 2005 Add me to the list of congratulators Drew. It looks like a great property. FWIW, I built a similar home in '96. It has since doubled in value. Ask anything you want about home projects, I've done 'em all. Good luck to you and your family! Our new and improved website Today's sample tune: Lonesome One Link to comment Share on other sites More sharing options...
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