Real Estate Crash thread

[fastfred]

If you were offered 15% of your home value to put a deed restriction on your home would you do it?

We need to talk if your seriously considering it there are pros and cons feel free to reach out

If you are desperate for the money I understand the need

I have had this discussion many times w many people alot of people have taken the cash which is taxable income even though many pretend its not I can help weigh the options I won't tell you what to do but I do lean towards NO

A friend is buying a house in the cove and deed restricting it on purchase because of the cost

Bad idea in my book but big cost four kids it makes sense for him

[alpinevibes]

It's leftist populism. Watch out, because it is rampant in Seattle and it is bound to spread to other cities in the West, like Denver. It's already taken over Aspen.

Did y'all just move here from Aspen? Homeless have been taking shits in vacant buildings here for decades.

Really REALLY hung up on the Aspen thing still, huh?

[Name Redacted]

We need to talk if your seriously considering it there are pros and cons feel free to reach out

If you are desperate for the money I understand the need

I have had this discussion many times w many people alot of people have taken the cash which is taxable income even though many pretend its not I can help weigh the options I won't tell you what to do but I do lean towards NO

A friend is buying a house in the cove and deed restricting it on purchase because of the cost

Bad idea in my book but big cost four kids it makes sense for him

We aren't considering it, but some friends/neighbors are. For them I guess it ain't a bad option. I just feel like the ~$200K we would get would be less than what we'd lose if we ever sold. But we plan on staying forever anyway. It is just an interesting decision to run the numbers on.

[Hott Butt Mud]

Aspen the town itself is moderately cool. It's bubble of wealth that has been put over it like a dome is peak ski town.

Roaring Fork Valley is waaaay overrated, IMO. If you like Front Range traffic commutes, "feeling close enough" to Aspen to call yourself a "local" from the "Aspen Area", and like to pretend your mountain biking is better than Eagle County, then it's the right place for you. Plus, bowling in El Jebel.

[fastfred]

We aren't considering it, but some friends/neighbors are. For them I guess it ain't a bad option. I just feel like the ~$200K we would get would be less than what we'd lose if we ever sold. But we plan on staying forever anyway. It is just an interesting decision to run the numbers on.

it makes no sense to do it
deed restricting a million dollar home??? so working locals are going to start buying deed restricted million dollar homes?
I saw a townhome deed restricted about a year ago at claim jumper condos in breck (not really a great development unless you like soviet architecture) listed for 800k someone bought it
sure if I'm hard up for some cash 200k sounds great for short term gain long term loss
been in my house just about twenty years now and unfortunately I'm stuck here for the foreseeable future it's worth 3-4 times what I paid for it

[altasnob]

Really REALLY hung up on the Aspen thing still, huh?

I am fascinated by the rise of leftist populism in this country. For major cities, Seattle and San Francisco are the epicenters. For small cities/towns, that's Aspen and there isn't even a close second. Aspen is particularly interesting to me becuase it's a giant social experiment being played out in real life. After you live there a few decades please report back and give us your candid thoughts on this experiment.

Paying people to deed restrict their million dollar home seems like more leftist populism to me. Who monitors these deed restricted houses? How much money does it take to monitor that? Seems like the main restriction imposed by Summit County is no short term rental less than 90 days and one of the people in the house has to work at least 30 hours a week for a business located "in and serving Summit County." You can retire, or partially retire, at any point and not be in violation. If you do get caught violating the restriction, there is no penalty if you get back into compliance within 30 days of first notice. Seems really easy to exploit. I can't believe these places have this kind of money to throw around.

[fastfred]

^^^ they literally have millions and millions of dollars to throw around

any sort of "affordable housing tax" is always voted yes on in the form of a sales tax and real estate transfer tax anything green and affordable housing like goes right to the front of the tax increase line

breckenridge followed aspen with some tweaks the rest of the country is following us and aspen
it's not perfect but it works

our enforcement isn't as hardcore as aspen yet but as more people abuse the system it will get that way
I know one guy who lives in a single family home deed restricted he also still owns his one bedroom deed restricted condo which he rents out to a "local workforce member" he makes money on the rental income plus the appreciation which I'm not sure if it's capped or not his plan is to sell mortgage will be paid for by the time he sells plus the additional income and the sale money will pay for his kids college education

guess you could call that unfair and milking the system but handouts are handouts and capitalism and all

[schuss]

I am fascinated by the rise of leftist populism in this country. For major cities, Seattle and San Francisco are the epicenters. For small cities/towns, that's Aspen and there isn't even a close second. Aspen is particularly interesting to me becuase it's a giant social experiment being played out in real life. After you live there a few decades please report back and give us your candid thoughts on this experiment.

Paying people to deed restrict their million dollar home seems like more leftist populism to me. Who monitors these deed restricted houses? How much money does it take to monitor that? Seems like the main restriction imposed by Summit County is no short term rental less than 90 days and one of the people in the house has to work at least 30 hours a week for a business located "in and serving Summit County." You can retire, or partially retire, at any point and not be in violation. If you do get caught violating the restriction, there is no penalty if you get back into compliance within 30 days of first notice. Seems really easy to exploit. I can't believe these places have this kind of money to throw around.

You need hobbies that aren't conspiracy theorism. SF is run by the rich for the rich. There's a reason tourist stuff doesn't run in pac heights, for example.
In the new age of airbnb and other relatively low-barrier vacation rental stuff, communities are trying to figure out how to retain a proper "community" and have access to housing for people that aren't vacationers or vacation house providers. It's not a solved problem and enforcement at the small municipal level is always tough as typically everyone knows each other (or close to) in smaller communities. Are you willing to dick over your neighbor for airbnbing during the holidays when they're out of town? The human factor is hard to deal with, but it needs to get figured out as otherwise it will be investment houses and the super rich that own the entirety of vacation areas.

[fastfred]

You need hobbies that aren't conspiracy theorism. SF is run by the rich for the rich. There's a reason tourist stuff doesn't run in pac heights, for example.
In the new age of airbnb and other relatively low-barrier vacation rental stuff, communities are trying to figure out how to retain a proper "community" and have access to housing for people that aren't vacationers or vacation house providers. It's not a solved problem and enforcement at the small municipal level is always tough as typically everyone knows each other (or close to) in smaller communities. Are you willing to dick over your neighbor for airbnbing during the holidays when they're out of town? The human factor is hard to deal with, but it needs to get figured out as otherwise it will be investment houses and the super rich that own the entirety of vacation areas.

this
since alta schlub doesn't have any friends he doesn't understand
granted I do like hearing some of his more fact based arguments not his pie in the sky sob story about how he has pulled himself up by his bootstraps mentality

I have alot to say where I live I get pretty worked up about shit and I think a majority of the local elected officials are absolute clowns who get elected only on feel good measures
at the end of the day I have to keep my mouth shut because it's a small town and I know who butters my bread

[54-46]

Leftist populism? LMAO [emoji1419]


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[altasnob]

I never said I pulled myself up from my bootstraps. This isn't personal. It's theoretical musings. Honestly, unless you have lived in Seattle (actually inside the city limits) and follow the local politics, you don't understand what I am talking about when I say "leftist populism." Tacoma is majority Democrat, but it hasn't reached Seattle's level yet. The joke in Seattle is the voters have never seen a tax they didn't like. I've lived there, worked with the city, and know people that currently work for the city. The level of bureaucracy is insane. The politics there are insane. They chew politicians up and spit them out on the street. Everyone comes in with grand ideas and then leaves after a term. It shows what happens when you have too many liberals in a room together (similar problems as having too many conservatives in a room together). Aspen strikes me as a small version of this.

[4matic]

As of January, single-family existing home sales have plunged 36.1% year/year, which is worst annual drop since May 1980

[AdironRider]

Get used to that trend. Anyone with a mortgage under 4% is going to have every incentive not to sell for a very long time.

[Mustonen]

Get used to that trend. Anyone with a mortgage under 4% is going to have every incentive not to sell for a very long time.

My ex owes me some equity in our old home that she still lives in. In the divorce agreement I agreed to give her a few years after the divorce to get that refinanced into her name or move. She has until early next year to get that done.

When rates were really low I told her it might be a good idea to get that done sooner than later, and she told me that none of her friends thought it was worth it to refinance. I doubt they were taking into account that she was gonna have to do it anyways. It’s not like she’ll be getting anything out of reamortizing it to keep her payment low, because she’ll need to cash out my equity anyways.

When rates went to 4 and 5 percent I chortled a bit, but 6 and 7 makes me just a bit concerned… it might do more than sting.

[Ted Striker]

With friends like that... ouch

[Conundrum]

Yeah, my friends thought refi'ing at 2.15% was a pretty good idea. Not even humble bragging. Her friends are dumb dumbs.

[XXX-er]

this is whats happening up narth to an estimated 20 % of the people who have mortgages,

the rates on their variable mortgage for the house couldn't really afford have caused their mortgage payments to almost double, welcome to Canada eh

[AdironRider]

My ex owes me some equity in our old home that she still lives in. In the divorce agreement I agreed to give her a few years after the divorce to get that refinanced into her name or move. She has until early next year to get that done.

When rates were really low I told her it might be a good idea to get that done sooner than later, and she told me that none of her friends thought it was worth it to refinance. I doubt they were taking into account that she was gonna have to do it anyways. It’s not like she’ll be getting anything out of reamortizing it to keep her payment low, because she’ll need to cash out my equity anyways.

When rates went to 4 and 5 percent I chortled a bit, but 6 and 7 makes me just a bit concerned… it might do more than sting.

That's gotta sting.

[Mustonen]

It would have benefited me to no longer be on the mortgage. And of course I have my little lien on the house that would need paid out. The benefit to me was far, far less than the benefit to her, though the whole thing is perfectly on brand for her.

Oh well. Just watching and hoping they don’t have to move.

[XXX-er]

I have seen/ heard of that ^^ kind of scenario play out in divorce a few times, i think my 2nd wife had this happen with her 1st husband who had trouble paying her for her 1/2 of the home a few yrs later so we could buy a house

IMO you almost always want to wind things up and get out of the marriage/ matrimonial home asap .

You just never know how much trouble an ex is going to be or what the economy is gona do, so maybe you win or maybe yer screwed and mostly i hear someone got screwed

[goldenboy]

We aren't considering it, but some friends/neighbors are. For them I guess it ain't a bad option. I just feel like the ~$200K we would get would be less than what we'd lose if we ever sold. But we plan on staying forever anyway. It is just an interesting decision to run the numbers on.

I hate it, I feel like it's an awful way for someone in a bad financial situation to make it much, much worse. Like a payday loan. Maybe it isn't as bad in other areas, but here, putting a deed restriction on a home will completely tank the value, by much more than the check that someone will get. Unless someone is just doing it altruistically.

[dunfree]

An appreciation reverse mortgage.

[schuss]

I never said I pulled myself up from my bootstraps. This isn't personal. It's theoretical musings. Honestly, unless you have lived in Seattle (actually inside the city limits) and follow the local politics, you don't understand what I am talking about when I say "leftist populism." Tacoma is majority Democrat, but it hasn't reached Seattle's level yet. The joke in Seattle is the voters have never seen a tax they didn't like. I've lived there, worked with the city, and know people that currently work for the city. The level of bureaucracy is insane. The politics there are insane. They chew politicians up and spit them out on the street. Everyone comes in with grand ideas and then leaves after a term. It shows what happens when you have too many liberals in a room together (similar problems as having too many conservatives in a room together). Aspen strikes me as a small version of this.

Get too many politicians of any stripe and it's a shit show. Just think what you'd rather have - Seattle or Houston? Boston or Oklahoma City?
Better some misguided art dollars than a chemical spill from lack of regulations or a fertilizer plant next to a daycare. Fuck, even that red state podcast guy started getting regulation happy in his own city once he actually wanted results.
You want a sustainably growing city you need money and quality of life to attract people.

[yeahman]

putting a deed restriction on a home will completely tank the value

But wouldn't that "tanked value" allow a person with less wealth to buy it eventually? Isn't that a good thing?

As of January, single-family existing home sales have plunged 36.1% year/year, which is worst annual drop since May 1980

Where I live almost everything under 500k is pending or contingent. I think when rates dipped recently lots of people pounced.

[goldenboy]

But wouldn't that "tanked value" allow a person with less wealth to buy it eventually? Isn't that a good thing?

Absolutely, for the subsequent buyer, and the community as a whole.

But it's still a horrible deal for the current owner, IMO. If I were to slap a deed restriction on my place, I'd get a check for $100-$150K. But my place would instantly be worth $400K less, not to mention it wouldn't continue to appreciate. Plus it's way harder to sell anything with a deed restriction around here. That's a shitty deal, and I'd only do it if I won the lottery and was doing it out of the goodness of my heart. But people do take that deal, when they need money for a medical emergency or something- and that's why I honestly think it's as bad as a payday loan for a lot of people.