the real estate crash of 2020

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November 29th, 2017 at 4:11:00 PM permalink
reno
Member since: Oct 24, 2012
Threads: 55
Posts: 943
Quote: Pacomartin
I know there are not a lot of people in the Dakotas, but $2.849 Million is a ranch house in parts of LA.


Below is a photo of 1273 Blewett Ave, San Jose, CA. It just sold for $1.17 million. 2 bedrooms, 1 bath, 1,200 sq ft. The plot of land is 5,600 sq ft.



November 29th, 2017 at 4:17:15 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 53
Posts: 5740
Perhaps that is why off grid living is becoming so popular.
Move to your favorite hunting and fishing area and work via the internet and fedex.
November 29th, 2017 at 5:01:47 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 115
Posts: 13602
In Detroit you can buy a 4000 sq ft house
for $500 in many parts of the city. Move
there.
If you take a risk, you may lose. If you never take a risk, you will always lose.
November 29th, 2017 at 6:54:41 PM permalink
Wizard
Administrator
Member since: Oct 23, 2012
Threads: 197
Posts: 4196
Regarding the OP, I'm not worried. Most elderly people I've known have refused to leave whatever house they raised their kids in. I think it is partially to have a big place that can accommodate their kids when they visit and also for sentimental reasons. My mother is 84 and refuses to leave the 3,000 square foot home I grew up in.

We are already in a demographic problem of too many old people and too few young people but we're so far adjusting pretty well.
Knowledge is Good -- Emil Faber
November 30th, 2017 at 2:44:53 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 106
Posts: 7743
Quote: Wizard
Regarding the OP, I'm not worried. Most elderly people I've known have refused to leave whatever house they raised their kids in. I think it is partially to have a big place that can accommodate their kids when they visit and also for sentimental reasons. My mother is 84 and refuses to leave the 3,000 square foot home I grew up in.

We are already in a demographic problem of too many old people and too few young people but we're so far adjusting pretty well.


The real problem with housing in the USA is nobody is building anything affordable and of a reasonable size.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
November 30th, 2017 at 5:16:59 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 53
Posts: 5740
Quote: AZDuffman
The real problem with housing in the USA is nobody is building anything affordable and of a reasonable size.
What the traffic will bear.
November 30th, 2017 at 5:25:16 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 106
Posts: 7743
Quote: Fleastiff
What the traffic will bear.


Yes and no. More and more places are passing codes with a minimum size for single detached homes. House size has doubled since the 1970s. You cannot build a smaller home, can't build a cottage-size place. They want McMansions.

It took a lot to get my place. Duplex, 650 sq ft each unit. A hair small, but can't complain. It was built in 1910. If I went for a modern build, I would have to go townhouse. New builds there are near $200,000 for the most part, and a HOA fee to boot. Size will be over 1,000 sq ft, probably 1,500.

What is happening is legislation is saying, "Young person, young family, we know you should really be buying a Ford or Plymouth, but we only allow Oldsmobiles and Buicks in the parking lot. So you have to go buy one of those, yeah, costs more, but that is the way it is."

We are making the USA house poor.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
November 30th, 2017 at 6:24:52 AM permalink
DRich
Member since: Oct 24, 2012
Threads: 22
Posts: 907
Quote: AZDuffman
The real problem with housing in the USA is nobody is building anything affordable and of a reasonable size.


I think one of the main contributing factors is that people are staying single a lot longer than they used to. It is very difficult for a lot of single people with a single income to afford housing at the standards they have. When you get married or have a roommate you will usually have dual income that now makes it ore affordable. Current generations also don't seem as willing to move to find affordable living arrangements. There is an entitled attitude that I should be able to live where I want, live an above average lifestyle, and have a job given to me that allows for it. My answer is simple. Be willing to move where the jobs are. Unemployment is very low now throughout the country. If you can't find what you are looking for locally, move to where it is available.
November 30th, 2017 at 6:33:54 AM permalink
terapined
Member since: Aug 6, 2014
Threads: 43
Posts: 3784
Times are changing
Used to be people moved for their job and bought a place close to work
These days so many work from home like me
A bunch of people in my neighborhood now work from home
My last move was to buy a place near where I work
My next move, I can live anywhere in the country and still keep my job
This is becoming more and more common. Live where ever you want and still keep your current job
Sometimes we live no particular way but our own - Grateful Dead "Eyes of the World"
November 30th, 2017 at 6:54:31 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 106
Posts: 7743
Quote: DRich
I think one of the main contributing factors is that people are staying single a lot longer than they used to. It is very difficult for a lot of single people with a single income to afford housing at the standards they have. When you get married or have a roommate you will usually have dual income that now makes it ore affordable. Current generations also don't seem as willing to move to find affordable living arrangements. There is an entitled attitude that I should be able to live where I want, live an above average lifestyle, and have a job given to me that allows for it. My answer is simple. Be willing to move where the jobs are. Unemployment is very low now throughout the country. If you can't find what you are looking for locally, move to where it is available.


The single thing is a big thing, though most single folks I know end up in apartments for various reasons.

A big thing is younger people now, and this goes back to maybe the 1980s, is younger couples do not do the "starter home" near as much. Instead of a smaller place in a lesser part of town where they grew up they want a better place in a better part of town. They want it filled with nice stuff. Makes them house poor.

A sales guy I worked with just out of college gave me two pieces of advice on homes. One, he said when you get married your wife gets to decorate the whole place. Pretend to care, then go to work and be away from it all.

Then he said that your "3rd house" is the "terminal house" you get to do with what you want. First house is classic starter, place to live and capture equity instead of pay rent. If the value goes up that is a bonus. Second house is a nicer place, room for kids. Keep capturing equity, but by now you are into a better job and can save more money. Third house is the "nice" house, you do improvements to. But you cannot save enough for the third place without appreciation of the first two.

Today, the kids want the third house from day 1.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
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