Real-Estate Bubble Popping?

decipha

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Correct. Its only me. That 250 is TOTAL which includes other properties as well sold not just a single home transaction. That would mean I would have to sell my primary home and nothing else and what id loose in taxes Id have to make up the difference to afford something comparable to what I have now.

Not that it matters though since Im never selling my primary.
 

shurur

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Ugh, that would piss me off to no end.

How old are you?
Old by most hiring standards...62...
I want to teach. With that and SS, I would do ok for me.

I have a VA loan coming to me.

But HCPS would rather hire history majors to teach math, rather than ex-engineers.
 
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MG0h3

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Youre only exempt $250k per person on the deed, up to $500k total. Everything beyond (profit) that is taxed. You do get to deduct the $ you put into it. If he has $300k into that house and it sells for $800k hes good (if two people are on the deed. $250k will be taxed if its only him).




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I still maintain that paying taxes on income isn’t losing.

Coworker bought 30k worth of Nio at $3. Made @500k on it. Another coworker could only think about the taxes.

I asked if he’d turn down a promotion because the taxes would be more. Then the light came on.


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Outlaw99

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The lenders I work closely with tell us that yes there is a shift coming but not like 2008. Biggest different is banks aren't doing bad and fraudulent loans like they did back then. We are seeing a shift, as in over priced homes are not selling. Correctly priced homes are selling, but at asking price and staying longer on the market. Its starting to level out and become a neutral playing field. At least in this area.

This area survived 2008 well. We are a destination city. top 10. As long as states like CA and NY exist, we will always have people moving here. 99% of my volume is people moving from out of state. 70% of my teams volume this year has been cash buyers.

A lot of Realtors dont know how to survive or generate business on their own. I am going to be just fine. About 5 years ago I created a client or lead capture source that gets clients before zillow or other lead gen services get them. Local agencies have offered to buy me out, and zillow keeps contacting to to buy rights to it and pay me royalties. I had to Trademark my name because other Realtors in my area began copying me. I am able to help new and struggling agents in my office with leads and business to get them started.

I am not worried one bit. I wake up and go to work and have built an amazing program that generates business. I am not sure if the public knows how zillow works, but they sell you like cattle to realtors. Only issue with that is you dont know if you are getting a good one. Any realtor that has to buy clients is no rock star.
I know Realtors paying $5000 a month and more to be provided with clients from zillow and realtor.com.

The rising interest rates will slow things down a good bit. Its just part of the cycle.
 

decipha

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Youre only exempt $250k per person on the deed, up to $500k total. Everything beyond (profit) that is taxed. You do get to deduct the $ you put into it. If he has $300k into that house and it sells for $800k hes good (if two people are on the deed. $250k will be taxed if its only him).




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I still maintain that paying taxes on income isn’t losing.

Coworker bought 30k worth of Nio at $3. Made @500k on it. Another coworker could only think about the taxes.

I asked if he’d turn down a promotion because the taxes would be more. Then the light came on.


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Thats profit though major difference.

If I loose 60k in taxes I'll have to come out of pocket that 60k just to get back to where i was in a comparable house or to even buy back the exact same house.
 

MG0h3

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Thats profit though major difference.

If I loose 60k in taxes I'll have to come out of pocket that 60k just to get back to where i was in a comparable house or to even buy back the exact same house.

I hear you. If it’s your primary, you’re likely stuck.

If I didn’t have three vehicles and a work truck, I’d sell and rent a room off a friend.

I wasn’t aware of the 250k exemption cap. A more experienced real estate investor than me recommended not doing 1031 tax exchanges on real estate sales and I thought it was just to pay in the lowest bracket each time. The exemption cap makes it make even more sense.


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olympic

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VegasMichael

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We can only lock in mortgage interest rates for 5 years so rate changes tend affect the housing market pretty quick.
Really? So every 5 years your monthly mortgage can change in either a good way or bad? How is the new rate decided upon and by whom? Do you have to pay a fee since in essence you would be refinancing? Here in the States we can shop around at different lenders to get the best rate we can.
 

Blown 89

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The bubble will pop hard in areas like Phoenix where housing has become unaffordable for anyone with a median income. Other areas of the country won't be immediately affected but people fleeing this shit hole for greener pastures will do to the next housing market what everyone did to ours.
 

olympic

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Really? So every 5 years your monthly mortgage can change in either a good way or bad? How is the new rate decided upon and by whom? Do you have to pay a fee since in essence you would be refinancing? Here in the States we can shop around at different lenders to get the best rate we can.

I've never had a mortgage so I can't speak to the finer details but yes, we have to renegotiate the interest rate typically every 5 years. Your monthly payment will go up or down depending on the new interest rate. I don't think there are any fees involved, maybe if you want to change lenders.

I'm just old enough to remember plenty of people losing their homes, cars, farms, etc in the early 80's when interest rates spiked. Not much you can do except walk away when your payment doubles or more overnight.
 

Blk04L

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Man, I hope the person building down the street locked in their rate a while back. When they started vertical the lot I locked in 3.25% in February.
May be at 7% for 30 yr fixed by end of month..
 

MG0h3

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I was curious what kindof payment change the rates are causing.

On a 325k house, 20% down, it’s a touch over $500 a month more vs 8 months ago.


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gimmie11s

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There is no bubble. Look at the amount of equity the average homeowner has. The lending market is actually quite healthy. There may be a slowing of HPA or even negative HPA but it is nothing like 2008.

Now.

There is a lot riding on just how far into recession we fall.

Negative wage growth coupled with a triple digit increase in credit card utilization along the possible reality of layoffs could turn into more foreclosures than you can count.




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