You can't tell mother fuckers don't move in with a freaking girlfriend. No way I'm buying property with a girlfriend. Just disaster waiting to happen.
So when’s the housing bubble bursting?
- Thread starter Dr. Truth
- Start date
You can't tell mother fuckers don't move in with a freaking girlfriend. No way I'm buying property with a girlfriend. Just disaster waiting to happen.
Anyone thought of pulling equity out of your home and buying a second home for a rental? I keep seeing my realtor friends talk about it. Is it really a viable option or is it them trying to drum up business? I know on BGOL its a ton of knowledgeable Brothers. Just trying to seek out the information.
My neighbor and his wife have been in real-estate for a minute even while he was in the Navy joked with me that people with section 8 might start getting some of these new houses they can't sell and sure enough they weren't lying, wife was talking to our new neighbor who moved in the house that at one time was listed for 450K and is now a section 8 house.
What type of equity? Because from my understanding, you would need to refinance and I’m not sure that’s a good idea considering where the interest rates are at right now. Especially if you already got a good interest rate. However, if your home is paid off, or mostly paid off, then that’s different.
Wow. That’s interesting as hell.
Not necessarily. You can do a HELOC or a Home Equity Loan. The loan would be on the equity in your home and you would pay on that amount.
Ex. You took out a Home Equity Loan at whatever the rates are now and it's like a second loan. So if your house is worth 500K, you take out a Home Equity Loan for 100K, then you would still pay whatever your rate was on the 500K and then have a second bill for the Home Equity Loan....
Yeah I think alot of sellers are doing this. Guaranteed money.....If you in a good market, like DC, you can actually bank like shit....
Housing Vouchers Are Distorting D.C.'s Rental Market, Critics Say
Housing Choice Vouchers have become increasingly valuable in D.C. Now some renters and advocates say high voucher rents are causing problems.
dcist.com
Got you. That makes sense. But damn, it kind of sucks at the same time. Seems like that should be free money. But I get it.
100% correct. You would think it would be free, but it's easy access to large amount of money and if you play it right, you pay it off quicker than the amount of time you have to pay it off.
Depending on where you live I'd be careful. If you get locked into a high interest rate now, and the value of the investment property goes down significantly (more than what your down payment was), I don't think you'll be able to refinance to a lower rate later on since the loan would be under collateralized. So you'd be stuck with a 6.5-7% interest rate for a while.
I know a friend who put a gf name on his house build and mortgage. They not even married yet. A fool and his money.
Yeah but depending on where he buys the rent he gets could be more than the mortgage and he could easily pay everything back. Rates will probably not go below 5% for at least 20 years. People keep waiting for the right time, there is no right time . If you have the money buy when you can.
Thank you I'm gonna research the stuff you said. Seems like a good way to tap into another wealth avenue.
TRUTH... I'm like I can easily pull some equity out purchase another home in my area and rent out for a good amount. Especially if I could find a multi unit housing in Houston. One goal would be is to purchase a property that can be rented asap inside the 610 loop. Then wait 3-5 years for the value to go up and sell out. Then rinse and repeat.
Will that still be true if the market rate for rent decreases?
I said earlier in the thread to keep a eye on this.
It’s getting bigger….and White folks are profiting while Black folks are ignoring it…
Inside California's tiny-home takeover
At least 63,456 tiny homes have been built in California backyards between 2018 and 2021.
Kelsey Neubauer
Feb 24, 2023, 9:00 AM
www.businessinsider.com
Eureka! As the US grapples with a massive housing shortage, one possible solution is playing out in California right now — and the state may have struck gold.
Over the past two years, tiny homes, known as accessory dwelling units, or ADUs, have filled backyards from San Jose to San Diego after state lawmakers began breaking down barriers for homeowners to build on their limited acreage. Single-family-zoning rules — often cited as a contributor to the affordable-homes shortage — were loosened under a series of laws enacted as the pandemic was exacerbating the housing crisis.
Homeowners were primed for the opportunity. One Bay Area native was able to raise her children near her family by building a $325,000 unit in her parents' San Jose backyard. A San Diego landlord added a two-bedroom unit in his backyard, helping to ease the rental shortage for students in the area. They all have the trappings of a regular home — kitchens, sleeping areas, and running water — just downsized to as little as 150 square feet.
California approved permits on 22,663 ADUs in 2021, up from 8,905 in 2018, according to an analysis of state data by the Terner Center for Housing Innovation at the University of California, Berkeley. Overall, the state paved the way for at least 63,456 ADUs to be built between 2018 and 2021, the Terner Center report showed.
While the increase in ADUs over the past few years has been significant, people aren't necessarily seeing lower housing prices or rents, Selma Hepp, the chief economist at CoreLogic, told Insider. The new ADUs have barely put a dent in the state's shortage of some 2 million homes, she said, though she's doing her part by building one of her own on her Burbank property.
"I think it's going to help affordability," Hepp said of the state's promotion of ADUs. "But I think that we're still a ways away" from where housing supply is expanded enough to increase affordability, she added.
While California's ADU revolution is in its nascent phase, it offers a glimpse into how other states could implement their own affordable-housing strategies. Oregon, Maine, and Nebraska, as well as cities like Miami, have enacted laws similar to California's. Other states — including New York and Washington— are considering ADU legislation, too.
Dire shortage
Advocates of higher-density building have a big tailwind: Housing affordability is waning, and fast.
The average American household — which brings in about $70,784 each year, according to the US Census — can't afford to buy a home and is struggling to keep up with rising rents. For a typical US home, with a median price of $383,460 in January, monthly housing costs would be $2,260 if the buyer put 5% down and took out a 30-year mortgage at 6.5%, according to Redfin data and Insider's mortgage calculator.
Meanwhile, median rent was $1,942 in January and rising year over year, according to Rent.com.
That means that the typical renter would need to make at least $77,680 to avoid the threat of becoming house poor — which is when people spend more than 30% of their income on housing costs. For a typical homebuyer to meet that measure of financial strength, they would need to earn $90,400.
Behind the rising costs is a severely undersupplied national housing market, which by a Fannie Mae estimate is short about 3.8 million homes. Addressing that supply-demand imbalance would help alleviate the affordability crisis, economists say, and nowhere is that more important than in California, where the shortage of homes accounts for half of national total.
A Villa ADU in San Jose, California.
New territory
To attempt to solve the crisis, California lawmakers agreed on rules that made it easier for urban homeowners to build on their land, including the California HOME Act, which lets homeowners build up to four additional units on their existing lots. Only individual homeowners are allowed to do this, not private companies.
Lawmakers pitched it as a win-win: Homeowners can add value to their property — and in some cases bring in some extra income by renting out their homes — while the state addresses its conundrum of how to incentivize more home building in its most populated areas, where building lots are expensive and few.
There's been opposition to ADUs from homeowners worried about the density of their neighborhoods and sometimes the aesthetics of the structures. Shain Haug, the president of a neighborhood community council in San Diego, complained to SanDiegoNews.com that single-family homeowners shouldn't be burdened with fixing problems that he said were due to poor urban planning or supporting "growth for the sake of growth."
He also decried "giving our communities over to the construction industry."
To be sure, the state laws are no panacea. Even though ADU construction is legal at the state level, homeowners still have to comply with local ordinances — some of which make it very hard to build. And building an ADU usually costs between $100,000 and $300,000, which is financially prohibitive for many people.
For example, Hepp — a person who follows the housing market professionally — detailed the long and arduous process she had to endure when building her ADU. Zoning ordinances in Burbank seemed opaque to her and the real-estate agents she consulted, and she couldn't get any "real answers" from local officials or real-estate experts, she said.
Hepp's ADU in Burbank.
"I have a Ph.D. in housing, and it was still so complicated, confusing, and stressful for me," she said. "I just can't imagine what it's like for other folks." After about three years, Hepp's ADU is complete and awaiting inspection.
Despite her struggles, Hepp predicted that if the state keeps throwing its weight behind the issue and educates people about how they can build tiny homes, a more meaningful wave of building will ensue. Ultimately, the housing shortage could be alleviated, she said.
A tiny-home gold rush
California homeowners aren't the only ones making money from the new laws.
From the Gold Rush of 1849 to California's 21st-century rise as the technology capital of the world, ambitious entrepreneurs aiming for social and economic transformation have been a part of the state's DNA. Tiny homes as a solution to the housing crisis is no different.
Venture capitalists have poured millions into startups that help to permit, manufacture, and install ADUs over the past few years.
Villa, a San Francisco-based company that has built hundreds of prefabricated ADUs, received $15 million from Atomic, an investment firm led by Jack Abraham, the founder of the $2 billion telehealth company Him & Hers, in August 2021. Abodu, another Bay Area company that builds tiny homes in California and Washington, has raised $25 million since 2018 from investors like Redfin CEO Glenn Kelman.
James Connolly, the cofounder and CEO of Villa.
Both companies are looking to expand to other states.
"The way California goes, so will the rest of the nation," said James Connolly, Villa's cofounder. "I feel really bullish about not just the company, but also our ability to make an impact on the broader housing crisis."
It’s getting bigger….and White folks are profiting while Black folks are ignoring it…
Inside California's tiny-home takeover
At least 63,456 tiny homes have been built in California backyards between 2018 and 2021.
Kelsey Neubauer
Feb 24, 2023, 9:00 AM
Inside California's tiny-home takeover
The tiny-home craze taking over the Golden State could spread across America as lawmakers ponder the benefits of accessory dwelling units.
www.businessinsider.com
Eureka! As the US grapples with a massive housing shortage, one possible solution is playing out in California right now — and the state may have struck gold.
Over the past two years, tiny homes, known as accessory dwelling units, or ADUs, have filled backyards from San Jose to San Diego after state lawmakers began breaking down barriers for homeowners to build on their limited acreage. Single-family-zoning rules — often cited as a contributor to the affordable-homes shortage — were loosened under a series of laws enacted as the pandemic was exacerbating the housing crisis.
Homeowners were primed for the opportunity. One Bay Area native was able to raise her children near her family by building a $325,000 unit in her parents' San Jose backyard. A San Diego landlord added a two-bedroom unit in his backyard, helping to ease the rental shortage for students in the area. They all have the trappings of a regular home — kitchens, sleeping areas, and running water — just downsized to as little as 150 square feet.
California approved permits on 22,663 ADUs in 2021, up from 8,905 in 2018, according to an analysis of state data by the Terner Center for Housing Innovation at the University of California, Berkeley. Overall, the state paved the way for at least 63,456 ADUs to be built between 2018 and 2021, the Terner Center report showed.
While the increase in ADUs over the past few years has been significant, people aren't necessarily seeing lower housing prices or rents, Selma Hepp, the chief economist at CoreLogic, told Insider. The new ADUs have barely put a dent in the state's shortage of some 2 million homes, she said, though she's doing her part by building one of her own on her Burbank property.
"I think it's going to help affordability," Hepp said of the state's promotion of ADUs. "But I think that we're still a ways away" from where housing supply is expanded enough to increase affordability, she added.
While California's ADU revolution is in its nascent phase, it offers a glimpse into how other states could implement their own affordable-housing strategies. Oregon, Maine, and Nebraska, as well as cities like Miami, have enacted laws similar to California's. Other states — including New York and Washington— are considering ADU legislation, too.
Dire shortage
Advocates of higher-density building have a big tailwind: Housing affordability is waning, and fast.
The average American household — which brings in about $70,784 each year, according to the US Census — can't afford to buy a home and is struggling to keep up with rising rents. For a typical US home, with a median price of $383,460 in January, monthly housing costs would be $2,260 if the buyer put 5% down and took out a 30-year mortgage at 6.5%, according to Redfin data and Insider's mortgage calculator.
Meanwhile, median rent was $1,942 in January and rising year over year, according to Rent.com.
That means that the typical renter would need to make at least $77,680 to avoid the threat of becoming house poor — which is when people spend more than 30% of their income on housing costs. For a typical homebuyer to meet that measure of financial strength, they would need to earn $90,400.
Behind the rising costs is a severely undersupplied national housing market, which by a Fannie Mae estimate is short about 3.8 million homes. Addressing that supply-demand imbalance would help alleviate the affordability crisis, economists say, and nowhere is that more important than in California, where the shortage of homes accounts for half of national total.
A Villa ADU in San Jose, California.
New territory
To attempt to solve the crisis, California lawmakers agreed on rules that made it easier for urban homeowners to build on their land, including the California HOME Act, which lets homeowners build up to four additional units on their existing lots. Only individual homeowners are allowed to do this, not private companies.
Lawmakers pitched it as a win-win: Homeowners can add value to their property — and in some cases bring in some extra income by renting out their homes — while the state addresses its conundrum of how to incentivize more home building in its most populated areas, where building lots are expensive and few.
There's been opposition to ADUs from homeowners worried about the density of their neighborhoods and sometimes the aesthetics of the structures. Shain Haug, the president of a neighborhood community council in San Diego, complained to SanDiegoNews.com that single-family homeowners shouldn't be burdened with fixing problems that he said were due to poor urban planning or supporting "growth for the sake of growth."
He also decried "giving our communities over to the construction industry."
To be sure, the state laws are no panacea. Even though ADU construction is legal at the state level, homeowners still have to comply with local ordinances — some of which make it very hard to build. And building an ADU usually costs between $100,000 and $300,000, which is financially prohibitive for many people.
For example, Hepp — a person who follows the housing market professionally — detailed the long and arduous process she had to endure when building her ADU. Zoning ordinances in Burbank seemed opaque to her and the real-estate agents she consulted, and she couldn't get any "real answers" from local officials or real-estate experts, she said.
Hepp's ADU in Burbank.
"I have a Ph.D. in housing, and it was still so complicated, confusing, and stressful for me," she said. "I just can't imagine what it's like for other folks." After about three years, Hepp's ADU is complete and awaiting inspection.
Despite her struggles, Hepp predicted that if the state keeps throwing its weight behind the issue and educates people about how they can build tiny homes, a more meaningful wave of building will ensue. Ultimately, the housing shortage could be alleviated, she said.
A tiny-home gold rush
California homeowners aren't the only ones making money from the new laws.
From the Gold Rush of 1849 to California's 21st-century rise as the technology capital of the world, ambitious entrepreneurs aiming for social and economic transformation have been a part of the state's DNA. Tiny homes as a solution to the housing crisis is no different.
Venture capitalists have poured millions into startups that help to permit, manufacture, and install ADUs over the past few years.
Villa, a San Francisco-based company that has built hundreds of prefabricated ADUs, received $15 million from Atomic, an investment firm led by Jack Abraham, the founder of the $2 billion telehealth company Him & Hers, in August 2021. Abodu, another Bay Area company that builds tiny homes in California and Washington, has raised $25 million since 2018 from investors like Redfin CEO Glenn Kelman.
James Connolly, the cofounder and CEO of Villa.
Both companies are looking to expand to other states.
"The way California goes, so will the rest of the nation," said James Connolly, Villa's cofounder. "I feel really bullish about not just the company, but also our ability to make an impact on the broader housing crisis."
I didn’t read all that but a lot of the Tiny Home boom has been people putting it in their backyard to rent out and cities putting them up for Homeless.
ICBC won’t pay condo owners full damages for vehicle that crashed into building
ICBC has informed condo owners in a White Rock building that they are on the hook for thousands of dollars to repair damage from a crash that they had nothing do with – and didn’t cause.
I think all that depends on where you are. The Bay Area has limited space and limited house availability so rents aren’t dropping like that . There’s big demand and little inventory on everything. Plus this is a high wage area so rents are mad high because landlords know people can’t afford to buy but they can pay high rent.
Same as here in DC. No fucking land...Even the surrounding areas of Maryland and Virginia that borders the cities zero land...
This is true.
But remember, Government just provides the funding.
Government does not build anything, it’s outsourced.
Government does not have carpenters, electricians, plumbers on the Government payroll to build infrastructure. It is outsourced to private contractors.
And everything that those contractors need is sub-contracted. The material needed to build the homes comes from different parts of the country/communities.
It’s basically “Trickle Down Economics”.
And guess who will be grabbing up all the “Gumment” money trickling down…..it ain’t Black folks.
That’s why I said white folks will be profiting off of this…..with Black folks money getting taxed.
This has been the American Business Plan since the 1800s and is one of the reasons why the Black community cannot get ahead.
Newsom pledges 1,200 tiny homes for California’s homeless
Newsom pledges 1,200 tiny homes for California's homeless
California Gov. Gavin Newsom says the state will pay to build 1,200 small homes to help house the homeless population.
apnews.com
Why There Are No Houses to Buy in Many U.S. Metro Areas
Housing inventory is so low throughout much of the U.S. that it's a nightmare for many buyers.
‘How will I buy?’: housing crisis grips the Netherlands as Dutch go to polls
Housing is key in this week’s provincial elections after years of soaring prices and government neglect
In nursing homes, impoverished live final days on pennies
PHILADELPHIA (AP) — New pants to replace Alex Morisey’s tattered khakis will have to wait. There’s no cash left for sugar-free cookies either. Even at the month’s start, the budget is so bare that Fixodent is a luxury.
apnews.com
Decades of subsidies have made the essentials of middle class life increasingly difficult to afford
The basics of middle-class life are too expensive. But more subsidies won't help.
reason.com
Not at these interest rates. The best time to do it was when we had record low rates.
Also be very careful pulling money on your primary home that doesn't make you money. I rather pull out equity on my rentals since my tenants paying my interest & everything else.
Last edited:
Just curious but why cautious on pulling out money on your primary? People do it all the time for renovations or to pay off high interest debt. It’s basically a second mortgage and the rate isn’t very high and you can write off the interest during tax season
Didn’t know you could pull equity out of rental properties. A HELOC yes, but didn’t know banks will let you take out a home equity loan on rentals. I was just denied for that reason for my DC property that I’m in the process of renting out.
Put it like this.
Suppose you rent out your house to a nice family with children that pays on time and in full every month for the last 5 years.
In that time the housing market explodes and a unit like theirs goes for 1/3 to 1/2 more than what they're paying. Local law says you can only raise the rent by 2%. Unfortunately, that's not enough to cover the property taxes and maintenance so now you're losing money every month.
Do you have what it takes to use every legal and extra legal measure at your disposal to throw them out on their ass? Do you have enough in the bank to leave the house unwrented until you can find someone else who can pay market rate?
He lives in Texas , they don’t have rent control laws so that doesn’t apply to him
That's true today, but how about 30 years from now?
Even if it never happens you can easily run into the opposite problem. Local industry falls apart, everyone loses their job, now this nice family is using every legal and extra legal method at their disposal to try to stay even though they can't afford the rent.
My point is that his real estate agent is acting like buying a rental property is a nice sure fire way for anyone to make money. It's not!
Woulda coulda shoulda ,
You could have done a “Cash Out Refinance”. An important part of doing this with a rental is to have equity and cash flow. I think it’s 80% loan to the value of the property. At these rates, it might not be the best move though.
Gotcha. Yeah my mortgage is 3.5% and Wells Fargo did offer that and I was like naw I’m good. Went with the home equity loan and pulled out the money I needed.
Then how the fuck are most of young GOP gone buy houses? Especially with prices like now?
Sure don't !