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Old 04-13-2008, 11:25 AM
 
Location: Up above the world so high!
45,270 posts, read 88,166,245 times
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Quote:
Originally Posted by johne482 View Post
Why? Remember right now we are only using play money on this forum board so it's easy to make a quick investment decision.Could the downside of your suggestion be:
1) Condo=You are not in control of your investment ie: assessments,condo board dosen't think like you.Managing renters not easy. New construction competing with your aging property.

2) Price point-what makes you think the "price is right" is this very unstable market? Kinda need a crystal ball don't we?

3) Liquidity of condos? I don't have a clue. Worse than other types of RE liquidity? Don't know.

Somehow, I don't have a warm fuzzy feeling with this idea,but hey, it's only play money!

The market in uptown Charlotte is not "very unstable". If you could find a condo under $250,000 in uptown it would indeed be a very wise investment.
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Old 04-13-2008, 02:06 PM
 
7,103 posts, read 9,678,488 times
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Quote:
Originally Posted by lovesMountains View Post
The market in uptown Charlotte is not "very unstable". If you could find a condo under $250,000 in uptown it would indeed be a very wise investment.
"Unstable" as in uncertain-my whoops. Have we reached bottom? Cost of money next few months, years? New lending policies. New buyers coming in at lower price points not higher? Will builders build more or less condos which would affect supply and demand of this type of housing?

Would you not agree the market is in a state of change right now and untill we get some direction and answers to the stabilty we should be more concerned than ever about our investments?

BTW--I would love to believe that this( your suggestion) "indeed would be a very wise investment" How would I go about being on the same page as you?
Is there strong data that would suport your view-or a strong hunch?
(and many times in real estate investing -hunches are worth a millon)
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Old 04-13-2008, 03:48 PM
 
175 posts, read 494,237 times
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The reason behind my choice of a Condo is that regardless of the housing market...I think Charlotte is an up and coming city and I "see" great things in the future for CLT!!!
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Old 04-13-2008, 05:43 PM
 
Location: Up above the world so high!
45,270 posts, read 88,166,245 times
Reputation: 39828
Quote:
Originally Posted by johne482 View Post
"Unstable" as in uncertain-my whoops. Have we reached bottom? Cost of money next few months, years? New lending policies. New buyers coming in at lower price points not higher? Will builders build more or less condos which would affect supply and demand of this type of housing?

Would you not agree the market is in a state of change right now and untill we get some direction and answers to the stabilty we should be more concerned than ever about our investments?

BTW--I would love to believe that this( your suggestion) "indeed would be a very wise investment" How would I go about being on the same page as you?
Is there strong data that would suport your view-or a strong hunch?
(and many times in real estate investing -hunches are worth a millon)
There may be uncertainty in the housing market, but certain areas will remain solid long term investments regardless - you just have to know the market you are considering buying in.

I personally think now is a GREAT time to buy - but go ahead and wait for the next sellers market if you aren't comfortable in this current buyer favored one
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Old 04-13-2008, 08:55 PM
 
Location: State of Being
35,885 posts, read 66,914,083 times
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Quote:
Originally Posted by johne482 View Post
"Unstable" as in uncertain-my whoops. Have we reached bottom? Cost of money next few months, years? New lending policies. New buyers coming in at lower price points not higher? Will builders build more or less condos which would affect supply and demand of this type of housing?

Would you not agree the market is in a state of change right now and untill we get some direction and answers to the stabilty we should be more concerned than ever about our investments?

BTW--I would love to believe that this( your suggestion) "indeed would be a very wise investment" How would I go about being on the same page as you?
Is there strong data that would suport your view-or a strong hunch?
(and many times in real estate investing -hunches are worth a millon)
If you can qualify on a loan to buy a condo in uptown . . . I would do it now. IMHO- I see interest rates going up by 3rd or 4th Q of 2009, and at 8 % by 2010. I frankly am wondering if we are going to see interest rates skyrocket as the market tries to adjust.

So if I were in the position to invest (and felt good about the investment potential) I would be doing so now. There may be a 10-20% adjustment on houses in some areas of the metro . . . but in my opinion, those houses needed to come down anyway and are in price points above $400,000.

Foreclosed houses in price point under $200,000 - I personally would not touch (for investment purposes) unless I were certain the whole neighborhood was not having a problem.

I am no expert but that is my advice, based on your fantasy situation, LOL!!!
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Old 04-13-2008, 09:02 PM
 
Location: Up above the world so high!
45,270 posts, read 88,166,245 times
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Quote:
Originally Posted by anifani821 View Post
If you can qualify on a loan to buy a condo in uptown . . . I would do it now. IMHO- I see interest rates going up by 3rd or 4th Q of 2009, and at 8 % by 2010. I frankly am wondering if we are going to see interest rates skyrocket as the market tries to adjust.

So if I were in the position to invest (and felt good about the investment potential) I would be doing so now. There may be a 10-20% adjustment on houses in some areas of the metro . . . but in my opinion, those houses needed to come down anyway and are in price points above $400,000.

Foreclosed houses in price point under $200,000 - I personally would not touch (for investment purposes) unless I were certain the whole neighborhood was not having a problem.

I am no expert but that is my advice, based on your fantasy situation, LOL!!!
And good "advice" it is Since neither of us are professionals we can only comment on what we know as long time Charlotteans, but I definitely agree with everything in your post!
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Old 04-14-2008, 04:31 AM
 
7,103 posts, read 9,678,488 times
Reputation: 2563
Default I see your point

Quote:
Originally Posted by anifani821 View Post
If you can qualify on a loan to buy a condo in uptown . . . I would do it now. IMHO- I see interest rates going up by 3rd or 4th Q of 2009, and at 8 % by 2010. I frankly am wondering if we are going to see interest rates skyrocket as the market tries to adjust.

So if I were in the position to invest (and felt good about the investment potential) I would be doing so now. There may be a 10-20% adjustment on houses in some areas of the metro . . . but in my opinion, those houses needed to come down anyway and are in price points above $400,000.

Foreclosed houses in price point under $200,000 - I personally would not touch (for investment purposes) unless I were certain the whole neighborhood was not having a problem.

I am no expert but that is my advice, based on your fantasy situation, LOL!!!
I understand your point about interest rate hikes but need clarification. So,lets say we buy(using the fantasy money assuming BOA will accept it) at current low interest rates-how does does propeerty become an "investment"?
I am also assuming we are not living in the property since in my OP I said "an extra $100-200K". So if we are buying for cash flow there might be a very small net cash flow or worse-negative. Bank payments, condo maintainance,assessments,and a certain amount of loss rent when vacant.

But the biggest problem I see with your theory is the high interest rates in 2010. You can be spot on! So, who is the buyer of your condo? How much money will they need in order to buy and for you to cash in on this investment? We were lucky because we are using fantasy money but they will need REAL money.

As far as foreclosed homes I can't discuss that point right now as I have an important date with my golf clubs at 8am. Big meeting-my clubs want to go in one direction and I want to go in another! LOL-Just like real estate investing.
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Old 04-14-2008, 05:40 AM
 
Location: State of Being
35,885 posts, read 66,914,083 times
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Quote:
Originally Posted by johne482 View Post
I understand your point about interest rate hikes but need clarification. So,lets say we buy(using the fantasy money assuming BOA will accept it) at current low interest rates-how does does propeerty become an "investment"?
I am also assuming we are not living in the property since in my OP I said "an extra $100-200K". So if we are buying for cash flow there might be a very small net cash flow or worse-negative. Bank payments, condo maintainance,assessments,and a certain amount of loss rent when vacant.

But the biggest problem I see with your theory is the high interest rates in 2010. You can be spot on! So, who is the buyer of your condo? How much money will they need in order to buy and for you to cash in on this investment? We were lucky because we are using fantasy money but they will need REAL money.

As far as foreclosed homes I can't discuss that point right now as I have an important date with my golf clubs at 8am. Big meeting-my clubs want to go in one direction and I want to go in another! LOL-Just like real estate investing.
Hee Hee - hope the opposing call of the golf clubs did not lead to "slice and dice" w/ the golf balls!

I am old school. The "buy and quickly flip" mentality was an invention of Gen X'ers, LOL, and those days are over. (Again, MHO). So now we return to the Boomer Mentality . . . wh/ is that an investment is something made "over time." I would buy the condo and rent it out. I would sell it at my leisure, but most likely in 2011 or 2012. I my worksheet did not show a big enuff return after estimating sales price minus carrying costs (HOA fees, taxes) then I would not buy a condo. But we were assuming you could get that condo for a nice price and your spreadsheet looked good. And, I was also assuming that when you want to sell it, you wont even need a realtor as people will be clamoring for your property.

If the main concern is whether or not people will be willing to buy that condo w/ interest rates at 9%, then fear not. Being a Boomer, I lived thru/ the days of 13% interest rates and believe me, people were still buying (me being one of them - as were all my neighbors!)

The other strategy is one I myself employed. I have a second home wh/ I bought when interest rates were at 8.75% 14 years ago. If you buy in a resort (or buy lake or mountain property) you will be fine, as long as you get the price point you want. I would shoot for prices at or under 2001, b/c I personally believe that is where the market is going to even out. Then, enjoy the property yourself on weekends and vacation time . . . while also upgrading and doing any maintenance . . . or rent it out . . . whatever works best for your cash flow.

I would also considering buying a house in Lake Wylie or Tega Cay, especially a distressed property, for under $300,000, take out a small mortgage . . . and enjoy it on the weekends while upgrading . . . and then sell it in a few years. Or, I might go buy lake property in the Sherrill's Ford or Denver area of the Lake . . . just property . . . w/ lake access, where I could build a pier and launch my boat . . . and sit on the property til the time was right to sell it.

Those would be my strategies. Wealth is built slowly. This crazy situation w/ no doc loans, adjusting rate loans, etc . . . was sheer madness and even tho there were people who made money (including mortgage brokers) those days are over.

As for foreclosed property . . . I would consider that as rental property but only if I knew I could get responsible renters, avoid Sec. 8 and be assured there is an active police involvement in the neighborhood.
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Old 04-14-2008, 11:06 AM
 
7,103 posts, read 9,678,488 times
Reputation: 2563
Quote:
Originally Posted by anifani821 View Post
Hee Hee - hope the opposing call of the golf clubs did not lead to "slice and dice" w/ the golf balls!

I am old school. The "buy and quickly flip" mentality was an invention of Gen X'ers, LOL, and those days are over. (Again, MHO). So now we return to the Boomer Mentality . . . wh/ is that an investment is something made "over time." I would buy the condo and rent it out. I would sell it at my leisure, but most likely in 2011 or 2012. I my worksheet did not show a big enuff return after estimating sales price minus carrying costs (HOA fees, taxes) then I would not buy a condo. But we were assuming you could get that condo for a nice price and your spreadsheet looked good. And, I was also assuming that when you want to sell it, you wont even need a realtor as people will be clamoring for your property.

If the main concern is whether or not people will be willing to buy that condo w/ interest rates at 9%, then fear not. Being a Boomer, I lived thru/ the days of 13% interest rates and believe me, people were still buying (me being one of them - as were all my neighbors!)

The other strategy is one I myself employed. I have a second home wh/ I bought when interest rates were at 8.75% 14 years ago. If you buy in a resort (or buy lake or mountain property) you will be fine, as long as you get the price point you want. I would shoot for prices at or under 2001, b/c I personally believe that is where the market is going to even out. Then, enjoy the property yourself on weekends and vacation time . . . while also upgrading and doing any maintenance . . . or rent it out . . . whatever works best for your cash flow.

I would also considering buying a house in Lake Wylie or Tega Cay, especially a distressed property, for under $300,000, take out a small mortgage . . . and enjoy it on the weekends while upgrading . . . and then sell it in a few years. Or, I might go buy lake property in the Sherrill's Ford or Denver area of the Lake . . . just property . . . w/ lake access, where I could build a pier and launch my boat . . . and sit on the property til the time was right to sell it.

Those would be my strategies. Wealth is built slowly. This crazy situation w/ no doc loans, adjusting rate loans, etc . . . was sheer madness and even tho there were people who made money (including mortgage brokers) those days are over.

As for foreclosed property . . . I would consider that as rental property but only if I knew I could get responsible renters, avoid Sec. 8 and be assured there is an active police involvement in the neighborhood.
You make a number of very good points.First off let me say my OP was/is very flawed by not given more parameters as you so thoughtfully outlined ie; your age, long/short term goals--Investment strategy etc.

I don't have the time right now to answer all the parts of your response but I will in the next couple of days. Right now let me go write a check to Uncle Sam who is expecting it tomorrow.
Talk later and thanks for your input.
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Old 04-14-2008, 12:02 PM
 
Location: Uptown CLT (4th Ward)
2,560 posts, read 7,699,818 times
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Uptown Charlotte or Lake Norman.....can't see Real Estate ever going down in either place. We have doubled our money in under 7 years Uptown. Uptown also has the lowest crime rate in the entire city!

That budget would be very tight in either place though...you might get a closet for $200,000.
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