I hate staying in hotels, though, where maybe you get a mini fridge, no kitchen, and you end up sitting on the bed most of the time you're in the room.Quote:
Originally Posted by Supermoon
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I hate staying in hotels, though, where maybe you get a mini fridge, no kitchen, and you end up sitting on the bed most of the time you're in the room.Quote:
Originally Posted by Supermoon
In areas people want to live, there still isn't enough. I'm guessing probably some level of correction, but still plenty of building. If lot and material prices come down a bit, that should offset some of the other pressures.Quote:
Originally Posted by panchosdad
I'm laughing at the chaos that happened in 20 and 21 $80.00 dollar sheets of glue and wood chips called osb?Quote:
Originally Posted by schuss
osb is running about $14 a sheet
just bought 1/2 cdx for $19 a sheet
granted dec - feb is when lumber bottoms out in price it will rise back up in march just not to pandemic I have to have this right now prices
too bad labor and the desire for profit will keep costs sky high
They started limiting short term rentals in South Fork. People are buying 20 year old modulars in my neighborhood for close to a half million. They are short term renting them. I really do not see that penciling out. there is also this RV development going in across the hwy https://www.riograndervresort.com/. You buy your space. They started last fall. They do not seem to be in a hurry to get it built. Seems they will be opening in a different market than when they started. Will be interesting to see how things shake out.
Interesting concept for the RV resort. Any idea what lots are going for?Quote:
Originally Posted by BFD
How many people HAD to build a new house and spent $300k or $500k too much by building when material prices were at peak?Quote:
Originally Posted by fastfred
My house was about $200/ sq foot when I bought in 2020. Spring of 2022 there were houses in my neighborhood selling for $450/ sq foot.
There were several new houses in my neighborhood that were allegedly built in the range of $500/ sq foot in the past year. This fall as the market cooled there were several houses that sold for $300/ sq foot. I wonder how the $500/ sq foot owners are feeling at the moment?
Percy, what valley? The Fraser River Valley still has mid valley specs going gangbusters.
Kevo, $500/sq. ft. for a new custom home really isn't that high on the scale. They were probably cash buyers. They look at it as a piece of there portfolio.
Usually, the last one in suffers the most but in desirable locations, there is so much equity and every has a job. You might not be able to move but no one is freaking out.
They did not have prices listed. The same owners have done 2 other developments like this. I see lots for the other development listed as from $125,000 to 1.8 million .https://mountainviewsrv.com/rv-resor...lots-for-sale/Quote:
Originally Posted by Name Redacted
Depends on the hotel and the hotel room. Did a stay in Kauai at a Sheraton with a small kitchenette and a small fridge with a smaller freezer and a microwave and a stove top unit. It was nice to have and save some money on food. But agree if you can get a condo or are traveling with family, having a rental house or large condo is the way to go.Quote:
Originally Posted by The AD
Another jaded Coloradoan, shocking.Quote:
Originally Posted by Foggy_Goggles
You totally got me figured out, and all from one post, nice work.
I meant “further leveraging” as in past their means, like in the late nineties where everyone I knew had a NIV 8.5% loan on a rental, some had 30 of them all in the same LLC.
The Fraser Valley, I can’t remember where that is… isn’t it the one that’s real close to Denver where the train drops off?
Jaded as in has never understood why realtors are self anointed real estate experts who simplify everything whilst not having a real good grasp on development, economics, construction, zoning, public policy or any of the other number of topics that they are more than willing to just straight make shit up about to get the check?
Yep, you got me figured out!
But seriously, every property is subject to the economic variables of the owner. You generally will not know what those are. The greater trend will effect the market but not necessarily the transaction.
Has the lending environment not changed substantially since 2008? Can you get a conforming loan on an income property using protected revenue from short term income to qualify?
Trailer Park Condos cone to Colorado.Quote:
Originally Posted by BFD
Not 100% sure what protected revenue is, but to the rest of it, yes.Quote:
Originally Posted by Foggy_Goggles
They value rental income at a different rate than W2 income though, its a pretty fair PITA to convince the bank you make money without a W2
*projected...sorry
Really? Its an honest question. So Fannie and Freddie (indirectly the tax payers) will treat a loan for a Short Term Rental the same as a primary residence? That seems fucked.
everybody who sold the old RE/ bought the lot/ booked the builder/ every fucking thing planning to build in 20 and 21 ?Quote:
Originally Posted by Kevo
RE was going crazy here so I never heard of anyone pulling the plug, instead they were in-processs of house building so they just sucked it up cuz nobody knew the bubble had burst
RE goes up forever right ?
IME projected no, proven yes. Most income properties (short term would be considered an income property) need to 'season' for 2 years, sometimes 1 year before their income can be counted as income. And then they sometimes only take 70% of that income.Quote:
Originally Posted by Foggy_Goggles
And income property loans are different than primary residence. Require 25% down, and have a higher rate by a half percent at least.
This could have all changed in the last 6 months or a year, income property loans got harder to get as the gov stopped buying them.
No, it would be financed as a investment property or at least a second home. High rates, higher down payment required, etc. Fannie and Freddie might not even finance them.Quote:
Originally Posted by Foggy_Goggles
That's what I thought. I know that there are was around it and the insurers and so on give fuck all.Quote:
Originally Posted by Name Redacted
I guess the question is, at what point and how does softening demand and income from STRs effect the housing market? I would think that shit would really have to hit the fan before foreclosure is the right choice for the owner but that's why I ask.
Well, they could always LTR, at least around here. Funny, Silverthorne is now looking at limiting the amount of licenses it issues. Before any of the hundreds of new apartments that they are building are even finished.Quote:
Originally Posted by Foggy_Goggles
Softening demand isn't really a thing around here yet.
Yeah, I was just poking at the vindictive hypothetical that if STR income declines, owners of those properties will be fucked.
Most of them can just sell, at a profit- if their cash flow is really that bad that they have to sell.Quote:
Originally Posted by Foggy_Goggles
Back to your loan question, you can count the rental income if you have an established rental history. So if you already have a rental property, you can count the income (~75%) from the new property that you're buying if you already have a history of being a landlord and it's documented on your tax returns. You can do that for up to 4 properties. But as others mentioned you're putting more money down and the interest rates are higher. It's almost 8% right now with 25% down, so it's making it a lot harder.
Lots of new subdivisions on the drawing boards, and approved here in Bend. The SE side of town is blowing up. In a few years you won't recognize the place. The new Caldera HS in SE Bend is more like a college campus. Really first class gym, library, auditorium and top notch sports fields. I think it will be too small with just a capacity for just under 700 students.Quote:
Originally Posted by schuss
They are going to have to build several new schools, elementary, middle and HS to handle all the growth.
Thanks, Goldenboy
One of my theories is that if and when prices come down their will be new Front Range based second home buyers who have been on the sidelines due to stupid prices. Our economy, construction, realestate and otherwise has always been driven by Denver.
When I start hearing about layouts in the $200K+ household income bracket, I'll start being concerned. The decreasing wealth effect from stock market performance this year doesn't seem to have done much yet.
How fucked depends on the equity amount. When foreclosures hit the fan last time, it was because lenders were doing 0 down loans that then depreciated another 25%-35%, so of course people walked away from those properties. That is no longer the case and frankly between most people putting 20%+ down at time of purchase and then the appreciation over the last 2 years, if they get squeezed financially, they will sell, but at the most, they will loose the last 2 years appreciation, so back to 2020 values. In Mammoth, that is a big hit from 6 months ago.Quote:
Originally Posted by Foggy_Goggles
A home I have been watching that I would push hard to buy at $2M:
Attachment 439460
The people that paid top dollar in top markets in the last 2 years will get fucked, but right now those markets are just wiping off 2 years of froth.
This guy writes about the housing market occasionally and I enjoy his articles.
https://wolfstreet.com/2022/12/21/ho...ely-pull-back/
https://wolfstreet.com/2022/11/29/th...roll-over-too/
https://wolfstreet.com/category/all/housing/