Looking for a mini farm to BUY Erwin/JC/Kingsport

[polizzio]

This is quite relative, excerpt from an article today on Marketwatch:

Because so many homeowners are still “underwater,” a popular alternative is to rent out their home instead of selling it at a loss. Then they buy a second property, hoping their first house gets back to even so they can sell.

“The decision by underwater homeowners to rent out their house instead of selling it is an act of desperation,” Jurow says. “It leaves them with two mortgages. They would not have done this if they had the equity to sell their home and trade up to another.”

According to Jurow, this is creating a perfect storm. “The housing boom allowed people to sell and trade up to another house. Now that the trade-up market has essentially disappeared, investment firms who were swept up with the buy-to-rent craze are competing with the millions of underwater homeowners who decided to rent out their property.” These properties will eventually hit the market and affect housing prices, he says.

This house market is falling apart - MarketWatch

[poety]

Originally Posted by polizzio

This is quite relative, excerpt from an article today on Marketwatch:

Because so many homeowners are still “underwater,” a popular alternative is to rent out their home instead of selling it at a loss. Then they buy a second property, hoping their first house gets back to even so they can sell.

“The decision by underwater homeowners to rent out their house instead of selling it is an act of desperation,” Jurow says. “It leaves them with two mortgages. They would not have done this if they had the equity to sell their home and trade up to another.”

According to Jurow, this is creating a perfect storm. “The housing boom allowed people to sell and trade up to another house. Now that the trade-up market has essentially disappeared, investment firms who were swept up with the buy-to-rent craze are competing with the millions of underwater homeowners who decided to rent out their property.” These properties will eventually hit the market and affect housing prices, he says.

This house market is falling apart - MarketWatch

There are a ton of foreclosures in the areas I'm looking JB, Erwin has a couple, JC and then theres this site called "Tenn4closures" or soemthing - all mobiles, priced at around 40-100K, some on large lots at that price - its soooo sad

[Serious Conversation]

Originally Posted by poety

There are a ton of foreclosures in the areas I'm looking JB, Erwin has a couple, JC and then theres this site called "Tenn4closures" or soemthing - all mobiles, priced at around 40-100K, some on large lots at that price - its soooo sad

No property sells for more than what it's worth. I think a lot of property around here will actually decline in price as there are no jobs and the only people moving are mostly wealthy, outside the area cash buyers.

[polizzio]

Originally Posted by Emigrations

No property sells for more than what it's worth. I think a lot of property around here will actually decline in price as there are no jobs and the only people moving are mostly wealthy, outside the area cash buyers.

Not true. While supply and demand does generally rule, real value is perceived. If someone from out of state "sees" a parcel of land for sale and is enamored with it, they may just pay that $28,000 an acre. Whereas locals would never pony up that kind of money for it, and actually think folks crazy to do so.

But to one with perhaps deeper pockets or coming from say NY, CA, or NJ, it appears inexpensive and well worth it.

[Dhult]

Originally Posted by polizzio

Not true. While supply and demand does generally rule, real value is perceived. If someone from out of state "sees" a parcel of land for sale and is enamored with it, they may just pay that $28,000 an acre. Whereas locals would never pony up that kind of money for it, and actually think folks crazy to do so.

But to one with perhaps deeper pockets or coming from say NY, CA, or NJ, it appears inexpensive and well worth it.

So true. As someone who lives on the West Coast I understand both sides.

My family has several properties here that were purchased in the 70's all around 30k or lower. They would all sell now with no problem even in a down market for around 4.5m on the low end. The average price of homes here is astronomical to the average wage and yet homes here in my coastal area never fluctuated much lower in the down markets over the decades or the last bust.
We're pretty lucky that they we were all paid off in the 70's.

The area is very desirable with people coming here with the funds to purchase at those prices. But, most young adults and those older working (not retired) can't find homes they can afford so they move out to surrounding areas and further away. They are priced out of the market.

While I'm pretty lucky to have a place to hang my hat and not worry about paying the bank each month, cost of living, taxes, upkeep is all high. I refer to myself as property rich and investment rich but cash poor. If I had to buy a new house in this area today, I would be severely in debt. Struggling like many I know. I never want to send money each month to a bank again.

Most here are at 50-75k a year and a hole in the wall to call home is 800k and up. A lot more for what would be considered a nice home here. In a few years I will have some choices to make with another family member. Stay or not.

I could sell out and have enough cash to buy a nice property in another area. Pay off all debt and not worry so much about supporting myself and family until I'm dead.

I have spent a lot of time looking at Tennessee and other states. I understand how locals feel about being priced out but if you had the same opportunity, I think many would take it.

Property with so much more real value to me (more land, square footage, etc., etc..) seems extremely cheap from my point of view. However, I understand that it isn't to those that have to make a wage in a area where property value rises and wages don't match it. I also wouldn't want to drive up the prices by paying more than what the local market would support for most in the area.

With all that being said, I could have opened a thread just like the OP in a few years. Yes, I have horses, dogs, chickens and would also be looking for a mini farm at a great price.

My current area used to be agricultural but it has grown up around me. My children are some of the last to know that a egg isn't made in the grocery store here. I'm not joking....

[polizzio]

Great write up Dhult. And yard eggs are SO much better than commercially produced/store bought