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Old 04-15-2016, 01:23 AM
 
2 posts, read 2,430 times
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I forgot to mention this...what's been going on is all these REO investment companies are buying literally everything they can get their hands on. They wiped out several areas in Georgia by buying just about every available home for sale. They created a huge shortage of homes in several states and one of them is NC. They pay all cash, do some renovating, and then they rent them out making more than double of what they paid for it after a few years. Once those houses are worth much more and the cost of the areas have increased (they buy around $175k- $200k and rent them out for $1,500+ per month), then sell them making an additional $60-100k. Google FREO, American Homes 4 Rent, etc.
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Old 04-15-2016, 06:41 AM
 
62 posts, read 250,631 times
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Quote:
Originally Posted by Hotlikeice View Post
I forgot to mention this...what's been going on is all these REO investment companies are buying literally everything they can get their hands on. They wiped out several areas in Georgia by buying just about every available home for sale. They created a huge shortage of homes in several states and one of them is NC. They pay all cash, do some renovating, and then they rent them out making more than double of what they paid for it after a few years. Once those houses are worth much more and the cost of the areas have increased (they buy around $175k- $200k and rent them out for $1,500+ per month), then sell them making an additional $60-100k. Google FREO, American Homes 4 Rent, etc.
This really is sad, esp. since some of those companies are from outside the United States. This country should do a better job at protecting its citizen and offer affordable housing without waiting lists that last years. What a joke.
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Old 04-15-2016, 07:07 AM
 
Location: Richmond VA
6,870 posts, read 7,816,652 times
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Quote:
Originally Posted by Pearls712 View Post
I have read through this forum A LOT over the past few days.We are debating on taking a job transfer to the Raleigh area from the Dallas area.The last time we kept track of home prices in Wake county was roughly 4 years ago when we were debating a move at that time.It seems like prices have gone up significantly since then.What has always held us back from having my husband do the transfer with his company is the state income tax in NC compared to TX and other misc. things that make NC more expensive. We also have a homestead cap here that kicks in to protect us against tremendous property tax increases.People I have spoken to who live in the Raleigh area,other wives of his co-workers ect,they all say the same thing.The salaries in Raleigh will not compare to the salaries in the Dallas area for most professional jobs.After doing some research online,that seems accurate.My husband will be taking a pay cut if we move to Raleigh from Dallas.Not huge,but not what he gets here.

Cary,Apex,desireable parts of Raleigh...will prices keep going up?New construction prices seem really high.Am I missing something?How are people affording these houses that are $450,000 plus?Is Raleigh slowly becoming un affordable for people moving for affordability? It also seems like SO MANY people from NY/NJ are moving to the NC area in general.Is that part of why the area seems to be changing so rapidly?
Price of property is not the only reason to move to NC. There were a million reasons to dislike my former home and a million reasons to love living in Raleigh. When you are on your deathbed, you are going to think of the overall quality of your life, not of the bottom line of your real estate investments.

Yes, property values will continue to rise.

I think of it this way. I didn't sell a house for 199K and buy an equivalent house for $199K. I got 50K in equity back from the sale of my old home in another state and put that in to a house here in Raleigh. My property taxes are lower but My monthly payments are about the same. I'm not going to live in either house long enough to pay off a significant amount of principal, so the total 'price' of the house isn't really relevant to me. I can sell my house here in Raleigh at a profit and take that equity and buy a nicer house somewhere else for less money. But right now I live in Raleigh. That's all that really matters to me.

So, to the OP, stop looking at real estate and come to NC and look at the lifestyle and see if it appeals to you. That's the only way to decide.
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Old 04-15-2016, 08:35 AM
 
3,932 posts, read 5,062,546 times
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If you don't believe we can have another collapse in the economy like we did in 2008, read this.

Elizabeth Warren Just Unleashed a Tweetstorm Against the Banks

Quote:
That’s because this week has served as a stark reminder of the fallout surrounding the 2008 recession. Goldman Sachs agreed to pay $5 million for its role in the financial crisis Monday, while five “too big to fail†mega-banks didn’t pass their “living will†test, according to U.S. regulators Wednesday. The “test†is a plan submitted by each of the institutions annually which detail how they will wind down operations without public funds or bringing down the rest of the economy. The test was created following the financial crisis in the hopes of preventing a sequel to the Recession.
The recent boom in Raleigh house prices is VERY troubling considering local salaries aren't keeping pace. It's the surest sign of a bubble and people who aren't extravagantly wealthy should probably hold off on buying a house in this market until things stabilize.
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Old 04-15-2016, 08:45 AM
 
Location: Raleigh, NC
6,641 posts, read 5,535,257 times
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Originally Posted by Grizzmeister View Post
If you don't believe we can have another collapse in the economy like we did in 2008, read this.

Elizabeth Warren Just Unleashed a Tweetstorm Against the Banks



The recent boom in Raleigh house prices is VERY troubling considering local salaries aren't keeping pace. It's the surest sign of a bubble and people who aren't extravagantly wealthy should probably hold off on buying a house in this market until things stabilize.
The median sales price in Raleigh from January to April was $190,000. The average 30 year mortgage rate is 3.72% right now which with 20% down would make an average house payment of about $1,000/month with taxes, maybe slightly more if you have a higher HOA fee ($1,300/month with 0% down).

The median household income in Raleigh is $62,313 so the average family is taking home around $3,500/month after taxes. Most people say you shouldn't spend more than a third of your income on housing so Raleigh is still in line with those figures. I'm not too worried about it now but maybe down the road.
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Old 04-15-2016, 08:49 AM
 
3,666 posts, read 6,547,449 times
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First of all, prices are rising dramatically in subsets of the Triangle, not anywhere near the majority of the region. I just took a quick look in the area of North Raleigh where I live and there are still a decent selection of really nice houses for sale in the low to mid $300k range.

Second, the rush to areas like West Cary are illogical. The prices are driven by demand and demand is driven by perception; that is not the best area to live, it's just all new and looks really nice. There are incredible homes all over the Triangle with reasonable commutes to RTP and downtown Raleigh that won't break the bank (and actually have trees on the property).

Mature and experienced buyers will still find that the Triangle is an excellent destination with ample, affordable home options and good schools throughout the region. They will realize that traffic is only growing insane in areas where the sheep are rushing to join the flock, not so much in established areas (my commute has remained exactly the same since I started working in RTP several years ago).

I would however like to thank those who overspend on new construction because you're helping keep my property taxes nice and low. You're effectively paying for my share of the tax increase and I can't thank you enough.
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Old 09-10-2016, 04:26 PM
 
Location: North Carolina
799 posts, read 3,215,983 times
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Great thread!
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Old 09-10-2016, 04:57 PM
 
Location: Raleigh, NC
6,641 posts, read 5,535,257 times
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I heard a presentation from one of the Wake County County Managers this week and he said that in the last 5 years, salaries have risen 1% while rent has increased 7%

Going back more: (% change)
1990-1995 - 12% income, 17% rent
1995-2000 - 34% income, 23% rent
2000-2005 - 11% income, 20% rent
2005-2010 - 11% income, 10% rent
2010-2015 - 1% income, 7% rent

Last edited by pierretong1991; 09-10-2016 at 05:53 PM..
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Old 09-10-2016, 05:16 PM
 
166 posts, read 162,310 times
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Quote:
Originally Posted by pierretong1991 View Post
I heard a presentation from one of the Wake County County Managers this week and he said that in the last 5 years, salaries have risen 1% while rent has increased 7%
Which ultimately injures the very employers that are feeling clever about exploiting their employees and keeping salaries low, because it means that people have less disposable income as a result of increasing housing cost, thus the cost of the goods and services being provided by those employers must become less expensive (companies must lower their profit margin) in order to stay in business over the long-term, with the added fun bonus of lowering the local tax base.

Reminds me of people who believe their house shopping goal should be to negotiate the lowest price possible. They fail to take into consideration the price they pay for their home initially is a huge factor in the future appreciation of that home because of the system of comparable, so the best deal is at the most accurate and optimal fair price, not at the lowest price.

We live in a culture so warped by "Walmart Shopper Thinking" that wise financial behavior is elusive these days. I guess it's human nature to "lower that sticker price", and a staggering number of people just aren't smart enough to graduate past that level of thought.
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Old 09-11-2016, 09:29 AM
 
13,811 posts, read 27,308,148 times
Reputation: 14244
Quote:
Originally Posted by McWallace View Post
Which ultimately injures the very employers that are feeling clever about exploiting their employees and keeping salaries low, because it means that people have less disposable income as a result of increasing housing cost, thus the cost of the goods and services being provided by those employers must become less expensive (companies must lower their profit margin) in order to stay in business over the long-term, with the added fun bonus of lowering the local tax base.

Reminds me of people who believe their house shopping goal should be to negotiate the lowest price possible. They fail to take into consideration the price they pay for their home initially is a huge factor in the future appreciation of that home because of the system of comparable, so the best deal is at the most accurate and optimal fair price, not at the lowest price.

We live in a culture so warped by "Walmart Shopper Thinking" that wise financial behavior is elusive these days. I guess it's human nature to "lower that sticker price", and a staggering number of people just aren't smart enough to graduate past that level of thought.
I honestly can't tell if you are serious or joking. A part of me actually things you believe what you wrote!
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