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Bought house for about $350k in 2013, now it is valued at $1.1m and the bank is offering me equity loans up to $770k.
That should tell you something is severely broken in the system. It is unrealized gain though, so if you don't take it, it doesn't matter if they offer you 770K or 7 billion.
You're paying the property taxes, insurance, and upkeep each month in the form of your rental check. All that is figured in when the rental rate is determined.
That’s in theory but a landlord’s cost don’t set the rental market rates. Just because your monthly cost are X doesn’t mean you can rent for X or X+
That’s in theory but a landlord’s cost don’t set the rental market rates. Just because your monthly cost are X doesn’t mean you can rent for X or X+
Yep. I think it's best to say that you're paying at least some of them as a renter, but we're not talking about a neat a 1 to 1 ratio here. Otherwise, I would have been able to charge ~$2,800 instead of $2,300 when I rented out my 2/1 condo in Honolulu from 2019-2022 (market rents have increased since then, but so have taxes and other fees/expenses, so the same point holds).
People buying in Honolulu today are spending very high sums of money via mortgage (high interest rates), taxes, condo/housing association fees, etc. Even in 1/1 units in the most luxurious, newest units, you're not able to rent out for more than $4k a month, even though someone buying one of those units today has a mortgage/fees of a few thousand more than that amount every month.
Yep. I think it's best to say that you're paying at least some of them as a renter, but we're not talking about a neat a 1 to 1 ratio here. Otherwise, I would have been able to charge ~$2,800 instead of $2,300 when I rented out my 2/1 condo in Honolulu from 2019-2022 (market rents have increased since then, but so have taxes and other fees/expenses, so the same point holds).
If my apartment were magically to convert into a condo at market-rates, then my PITI would be more than double that of the current rent... and that's before the HOA fee.
If my apartment were magically to convert into a condo at market-rates, then my PITI would be more than double that of the current rent... and that's before the HOA fee.
Have you considered tax deductions in this scenario?
The housing shortage has put some areas significantly out of whack. In NH some areas in less desirable locations that formerly had very inexpensive housing that before Covid sold for low to mid $100,000s are now selling in the $300,000s. Many are old and in need of quite a bit of work due to years of deferred maintenance. Land prices are up too but not as much as home prices. However, the construction costs and the lack of contractors to do the work makes new construction unfeasible since even a simple home, such as a raised ranch, constructed on a $100,000 lot will have an all in cost of $500,000 or more. NH also has a labor shortage with one of the lowest unemployment rates in the US. The lack of affordable housing makes it difficult to attract and retain young workers to replace those retiring.
The housing shortage has put some areas significantly out of whack. In NH some areas in less desirable locations that formerly had very inexpensive housing that before Covid sold for low to mid $100,000s are now selling in the $300,000s. Many are old and in need of quite a bit of work due to years of deferred maintenance. Land prices are up too but not as much as home prices. However, the construction costs and the lack of contractors to do the work makes new construction unfeasible since even a simple home, such as a raised ranch, constructed on a $100,000 lot will have an all in cost of $500,000 or more. NH also has a labor shortage with one of the lowest unemployment rates in the US. The lack of affordable housing makes it difficult to attract and retain young workers to replace those retiring.
It's more areas than not.
I split time between northeast TN and western NC. I live in northeast TN, my girlfriend lives in western NC, and I work for a western NC county government.
We have been looking to get a plumbing estimate for underslab work in NC for months now. It's almost impossible to even get a response, much less someone to come out and estimate the job. Virtually any sort of tradesman is booked out months in advance for houses under construction. Small jobs like this aren't even worth their time.
We finally did get someone to come out, but they can't commit to even a ballpark timeframe.
Real estate has gone through the roof in both places - a little more so in NC than TN, but TN is quickly catching up. Wages in TN have always been in the toilet. Today, sure, some of those low end jobs have had big pay raises, but they can't afford the housing anyway.
That’s in theory but a landlord’s cost don’t set the rental market rates. Just because your monthly cost are X doesn’t mean you can rent for X or X+
Sure it does. Why bother having rental property that loses money every month? Rent has to over all the costs of ownership plus some profit for future maintence and income.
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