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  #41  
Old Posted May 13, 2021, 11:44 PM
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^ by comparison, i just zillowed "houses, townhouses, mulit-family, and condos" for under $100K in the city of chicago and got 641 total listing.
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  #42  
Old Posted May 14, 2021, 12:40 AM
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Originally Posted by AviationGuy View Post
Around here, I haven't personally seen properties being bought up by investors who don't live at the properties, although I would imagine it's happening to some extent. In my area of the city, the newcomers I'm meeting (like on my street, at HOA meetings, and online) are the highly paid executives and employees who want to live close in and who can afford just about anything. I'm betting you're correct that investors are a big part of the picture in many areas, and probably some parts of Austin (e.g., flipping activity). I just haven't seen them right around my area. The homes in my area are almost all owner occupied and people tend to stay put.
Don't know about Austin but I took a look at just what one large single family REIT, Invitation Homes, has on offer in Houston and got (a total of 66 homes)


https://lease.invitationhomes.com/se...ir:asc),zoom:8)

Nationally, Invitation has 80,000 homes for rent.

These SFH REITs mostly got their start in 2008 when they went crazy buying bank-owned homes that had been repossessed. There are no longer the bargains there were then so a lot less buying but they still are prepared to snap up bargains. And now, in addition there are a growing number of companies offering to buy homes directly from owners who don't want want the hassle of the usual selling process. I got a flyer from one just today.
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  #43  
Old Posted May 14, 2021, 6:53 AM
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There are approximately ZERO homes in London under $100,000, no matter the deprivation, murder links or poltergeist activity.

The last property to sell for under £100,000 ($140,000) was in 2013, and made the news.

https://www.independent.co.uk/news/u...0-8788347.html

It was for this absolute studio stunner, a steal for $138,000 on a 20 year lease, in a crime hotspot. The realtor described it as "horrendous" and "not very nice at all." The next day there was a queue down the street for it.






Vice does a running blog on the city steals you can get for a million bucks:


London Rental Opportunity of the Week

Last edited by muppet; May 14, 2021 at 7:56 AM.
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  #44  
Old Posted May 14, 2021, 10:37 AM
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Originally Posted by Steely Dan View Post
^ by comparison, i just zillowed "houses, townhouses, mulit-family, and condos" for under $100K in the city of chicago and got 641 total listing.
I zillowed Asheville and Greenville.

Asheville = 0

Greenville = 1

When you bump it up to $150k...

Asheville = 2

Greenville = 15

Another bump up to $200k...

Asheville = 6

Greenville = 39
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  #45  
Old Posted May 14, 2021, 12:37 PM
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Originally Posted by Steely Dan View Post
^ by comparison, i just zillowed "houses, townhouses, mulit-family, and condos" for under $100K in the city of chicago and got 641 total listing.
I am still waiting for people to wake up one of these days and realize how much of a bargain Chicago is compared to all of these "hot" cities (Austin, Denver, etc) for how expensive they are now.
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  #46  
Old Posted May 14, 2021, 12:53 PM
BigDipper 80 BigDipper 80 is offline
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Here in Dayton, the average home value is an incredibly sensible $83,000 and the countywide average is only a bit higher at $144,000. This is still a massive jump from even four years ago when those numbers were at $44k(!) and $90k, respectively. My house has probably doubled in value since I bought it four years ago, and most homes in my neighborhood are selling for over asking within a week. That said, the market is still so insanely affordable that even people without a college degree can snag a starter home in a decent neighborhood for under $150k.
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  #47  
Old Posted May 14, 2021, 1:14 PM
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I'm surprised that there are any number of homes listed under $100,000 in New York City! They must be absolutely awful places.
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  #48  
Old Posted May 14, 2021, 1:44 PM
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Originally Posted by twister244 View Post
I am still waiting for people to wake up one of these days and realize how much of a bargain Chicago is compared to all of these "hot" cities (Austin, Denver, etc) for how expensive they are now.
Keep in mind that the vast majority of those sub-$100K homes in Chicago are located in areas that most people in Austin or Denver would not ever dare to live in <Bang! Bang! Bang!>

A tale of two cities through and through.
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  #49  
Old Posted May 14, 2021, 2:27 PM
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Originally Posted by twister244 View Post
I am still waiting for people to wake up one of these days and realize how much of a bargain Chicago is compared to all of these "hot" cities (Austin, Denver, etc) for how expensive they are now.
I'll never get the idea that RE is a "bargain" based on its price. RE is a "bargain" based on its relative appreciation. The price is a function of market expectations of long-term appreciation.

Chicago has relatively low housing prices for a major, first-tier city. However, Chicago has some of the worst housing appreciation of any major U.S. cities (I believe the absolute worst per the Case-Shiller index), so the reasonable prices make sense in this context.

If you buy a home for 400k, and sell it for 400k 15 years later, that isn't a "good deal" relative to buying a home for 600k and selling it for 1 million 15 years later. You also have to factor in taxes, maintenance and the like, and Chicagoland property taxes tend to be high.

Property taxes, in particular, really affect housing prices. You can see this in some NY suburbs, where a more affluent suburb will often have lower housing prices than a less affluent suburb, because the rich town votes for crazy property taxes to support gold-plated schools and services. People buy into the community because the schools are de facto private schools, and the property taxes are de facto tuition. But if you didn't have school-age kids, you would be crazy to pay 40k in annual property taxes, for a modest home.
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  #50  
Old Posted May 14, 2021, 2:34 PM
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I'll never get the idea that RE is a "bargain" based on its price.
Because you're a 5-percenter (or close enough to it) and are only able to understand the world through the dollars and cents lens of investment potential.

For regular people in the middle and working classes, home affordability is about the lack of barriers to entry.

It's not so much about future investment potential, it's about being able to afford getting away from the uncertainties of the rental world and putting a permanent roof over your family's heads.

It is easier (lower barrier) for working and middle class people to ENTER the real estat market in Chicago than it is in the big coastal cities. That's why many people refer to it as "affordable" on that relative basis.

But no, that $150K bungalow in Chatham is not going to be worth $500K in 15 years. That's the trade-off. You won't get rich off of owning your own home in Chicago, but at least you get to own one in the first place, if you want to.
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Last edited by Steely Dan; May 14, 2021 at 3:00 PM.
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  #51  
Old Posted May 14, 2021, 2:55 PM
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Originally Posted by Steely Dan View Post
^ by comparison, i just zillowed "houses, townhouses, mulit-family, and condos" for under $100K in the city of chicago and got 641 total listing.
That's amazing! #jealous
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  #52  
Old Posted May 14, 2021, 3:00 PM
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I live in Cincinnati and two weeks ago a very small house across the street from mine had an open house. I walked through the house and saw a guy with a Facebook shirt on. I jokingly asked him if he worked for Facebook and he said yeah. He lives in Seattle and started buying up houses in...Ohio.

The house he was looking at is technically a 2-bedroom but you have to walk through one of the bedrooms to get to the other, so in effect, is a 1-bedroom house. It was listed for $200,000. It sat vacant for several years (about 2011-2014) and then sold for $55,000 or thereabouts to the current seller.
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  #53  
Old Posted May 14, 2021, 3:09 PM
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Originally Posted by jmecklenborg View Post
I live in Cincinnati and two weeks ago a very small house across the street from mine had an open house. I walked through the house and saw a guy with a Facebook shirt on. I jokingly asked him if he worked for Facebook and he said yeah. He lives in Seattle and started buying up houses in...Ohio.

The house he was looking at is technically a 2-bedroom but you have to walk through one of the bedrooms to get to the other, so in effect, is a 1-bedroom house. It was listed for $200,000. It sat vacant for several years (about 2011-2014) and then sold for $55,000 or thereabouts to the current seller.
Yeah, something very weird is going on. I recently saw a house on sale in Detroit that's asking for $350k, but last sold for $40k just a couple years ago. It was gut renovated, but it's not located in an area where any reasonable person would pay that much to buy a house to live. It might make sense as a rental property, but prices in Detroit are too unstable to make a long term gamble at that price, IMO.
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  #54  
Old Posted May 14, 2021, 3:19 PM
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Because you're a 5-percenter..
LOL he wishes. He's just a heavily devoted neoliberal who doesn't want to admit that the housing markets on the coasts are screwed up and don't work for 90% of people.
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  #55  
Old Posted May 14, 2021, 3:33 PM
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LOL he wishes.
Well, he owns a 7-figure unit in a park slope brownstone, so that's well outside of the "regular person" realm, regardless of the exact percentage threshold.
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  #56  
Old Posted May 14, 2021, 3:59 PM
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Originally Posted by Steely Dan View Post
Because you're a 5-percenter (or close enough to it) and are only able to understand the world through the dollars and cents lens of investment potential.

For regular people in the middle and working classes, home affordability is about the lack of barriers to entry.

It's not so much about future investment potential, it's about being able to afford getting away from the uncertainties of the rental world and putting a permanent roof over your family's heads.

It is easier (lower barrier) for working and middle class people to ENTER the real estat market in Chicago than it is in the big coastal cities. That's why many people refer to it as "affordable" on that relative basis.

But no, that $150K bungalow in Chatham is not going to be worth $500K in 15 years. That's the trade-off. You won't get rich off of owning your own home in Chicago, but at least you get to own one in the first place, if you want to.
To keep those barriers to entry "low" you have to flood the market with inventory. Instead of shafting the people trying to buy in, you shaft the people who bought in by diluting the value of their property. That's why you have houses all across the midwest that are worth less on paper today than they were 15 years ago.
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  #57  
Old Posted May 14, 2021, 4:04 PM
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Absolutely nothing for less than USD 100k in Stockholm, not even a dumpy studio on the end of the train line.

Here's a parking spot for $114,000:

https://www.hemnet.se/bostad/ovrigt-...an-33-17031670
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  #58  
Old Posted May 14, 2021, 4:07 PM
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Originally Posted by Steely Dan View Post
Because you're a 5-percenter (or close enough to it) and are only able to understand the world through the dollars and cents lens of investment potential.

For regular people in the middle and working classes, home affordability is about the lack of barriers to entry.
Nah, the barriers to entry to a 600k with high appreciation, aren't higher than the barriers to entry to a 400k home with low appreciation, because obviously the 600k home will generate equity, and the 400k home won't.

You don't pay more per month with the 600k home, but you'll have a longer mortgage term. 30 years with slightly higher interest rate + equity will be cheaper, long-term, than 15 years with slightly lower interest rate and minimal equity.

Again, low-cost/low-appreciation homes aren't a lower barrier to entry. They're higher cost, apples-apples, in the long term.

And no one needs to buy a home to have housing stability. You can have the same or greater housing stability in rental housing. A rent-regulated tenant has more housing stability than a homeowner.
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  #59  
Old Posted May 14, 2021, 4:08 PM
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Originally Posted by Steely Dan View Post
Because you're a 5-percenter




Holding it down in Medina.

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  #60  
Old Posted May 14, 2021, 4:11 PM
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^ the barrier to entry I'm talking about is the down paymwent, not the loan terms.

It's much easier for a middle class family to save up a down payment for a $300K home than for a $800K home.
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