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Old 05-16-2014, 01:23 PM
 
Location: State of Being
35,885 posts, read 67,172,097 times
Reputation: 22373

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Quote:
Originally Posted by Caleb Longstreet View Post
You left off that little tidbit of buying for cash because no one can get a loan?
No, I didn't leave that out.

I don't happen to believe it is that difficult to get a loan, especially first time home buyers.

There are even loans for folks with bad credit.

The most astonishing loan is one that uses a person's HUD voucher as part (or most) of the actual mortgage payment, which is hard to fathom how that is even legal, but yeppers, it is.

Some info here:

http://www.homeloanlearningcenter.co...Homebuyers.htm
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Old 05-16-2014, 02:29 PM
 
48,516 posts, read 83,943,432 times
Reputation: 18050
In reality they may be available but not to extent of past. I suggest you go out and try to buy now compared to the opast. best chance for many is homes target in areas that few want and nothing like homes easy to get loans for in past.
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Old 05-16-2014, 02:31 PM
 
Location: SoCal desert
8,093 posts, read 13,234,579 times
Reputation: 14870
Quote:
Originally Posted by anifani821
From the research I have done so far into the cash sales for the first quarter of the year . . . it appears that the majority of the purchases were NOT investment properties.
This was just reported on our local news within the past week. They followed a young couple (late 20's? early 30's?) with 2 young children. They followed a retired couple also.
The young couple kept losing bids - to retired people with cash.
(Note - they never reported how financially qualified the young couple was, just that they had a 5 to 10% downpayment)
The program proceeded to make it sound like it was the fault of the retired people.

Quote:
Originally Posted by Travelassie View Post
I'm not sure one can assume that most of these cash buyers are American boomers. The article states that in California, and coastal cities in Florida, and the NE ( Miami, Boston), those cash buyers are foreign visitors. It's well known in Miami, for instance, that many of the cash buyers for properties are the well-heeled from Latin and South America, and the article states that as well. In CA, it's Chinese nationals buying up those properties and paying cash.
In March, the LA Times reported in an article that . . .
"Chinese buyers bought 12% of all U.S. homes purchased by foreign citizens last year, up from 5% in 2007, according to the National Assn. of Realtors. More than half their home purchases were in California. And more than two-thirds of them paid cash, the trade group said."

But that 12% is a percent of what amount?
If foreign citizens bought 5% (example purposes, don't know actual percent) of the total houses in the US ... 12% of that 5% isn't really very much.
To take it further, 1/2 of that 12% of that 5% is California.
And 2/3 of that 1/2 of that 12% of that 5% was cash.
(I hope that makes sense to more than just me! )

The news media loves to make statistics = exaggerated alarm
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Old 05-16-2014, 03:25 PM
 
Location: Loudon, TN
5,784 posts, read 4,838,667 times
Reputation: 19458
I think I had the easiest loan I've ever received 6 months ago. It was approved in less than 2 weeks through a local bank that does a lot of loans in our neighborhood. With solid income/ assets and decent credit it is no harder than in the past. If you don't have your ducks in a row, well then it will be harder than in the "liar loan" days.

Guanda...I hear you. It is so easy to lie with statistics, or just stir up the hornet nest by creating alarming-looking stats.
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Old 05-16-2014, 03:48 PM
 
Location: Boca Raton, FL
5,175 posts, read 8,696,248 times
Reputation: 6194
Smile Dealing in the market

I deal with real estate agents and truthfully, they love when they get a cash deal. Well, first of all, no appraisal so if the inspection goes well, full speed ahead.

I had a realtor mention to me the other day that's "it too bad they had to get a mortgage" - what?

There's no shame in obtaining a mortgage and the rates are great today.

There are many programs available today even for those who may have bruised credit. They are not like before but there are programs.

I've also done loans for foreign nationals but it's true, the condo market loves foreign buyers.

My favorites are first time homebuyers.
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Old 05-16-2014, 04:15 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Quote:
Originally Posted by texdav View Post
One of the things to consider in looking for that cheaper area is that in short time the cost can rise very steeply. Many are not financed by industrial type tax bases ;so with need for infrastructure as they grow they need tax base increases. Boomer type movement in former small town can mean you need to be able to afford this increase in infrastructure as needed. Some such as Texas have property taxes and provisions for over 65 but if needed they will find fees or other taxes as needed. You really need to do your home work as based on more fixed income it can mean ever rising COL as others who can afford move in; as many a small town has learned. Still likely to be cheaper than SF in your lifetime but expect rising cost overtime in planning.
The linked ranking was based on metro areas which tend to have suburbs with solid tax bases and in many cases cities with.
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Old 05-16-2014, 04:43 PM
 
Location: Gilbert, AZ
272 posts, read 241,625 times
Reputation: 484
I'm guessing that the majority of cash sales are investors. They are the ones with ready cash. They are the ones buying lower-priced homes often before first-time homeowners can work out their finances. I think some states now have a law requiring a certain amount of time must lapse before investors can buy (?).

When I was recently looking for a home, I was turned down several times because of not having cash or being able to qualify for a Conventional Home Loan. This leaves very little affordable homes on the market for first-time homebuyers and/or those seeking a small or lower-cost home... a very sad state of affairs.
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Old 05-16-2014, 07:17 PM
 
Location: Henderson, NV
1,091 posts, read 1,217,335 times
Reputation: 1765
Quote:
Originally Posted by rzzz View Post
How many of the homes are actually "people" buying them vs. companies buying them and turning them into rentals?

When I lived in Atlanta in 2012, large numbers of homes were being scooped up by investment companies who would then do minimal repairs and touch ups and put them on the rental market.
I'm more inclined to think this is the current case. The buying is fueled by lots of foreign investment companies snatching up foreclosures.
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Old 05-16-2014, 09:24 PM
 
Location: Columbia SC
8,969 posts, read 7,745,489 times
Reputation: 12182
Quote:
Originally Posted by Escort Rider View Post
Quite true, of course. "Downsizing" usually means that the physical size of the house or dwelling (measured in square feet) becomes smaller. However, what you described I think of as "financially downsizing", meaning that one has less money tied up in the house and has "liberated" a bunch of money to use for other things or to increase the size of the more liquid portion of the nest egg.

If someone sells a $500,000 house in an expensive part of New Jersey (just to continue with your use of New Jersey as an example) and buys a nearly identical house in Texas or Tennessee (or any number of other less expensive places) for $250,000, then the person doesn't really have to worry so much about having a physically smaller house to minimize the cost of utilities and maintenance.

It's still a type of downsizing, as I see it.

Interesting comment.

In 2001 we downsized from 1400sq ft town house sold for $475K in MA to a 2500sq ft new home (single family, cash purchase) in SC for $200K.

In 2010 we downsized again from the 2500sq ft (sold for $300K) to 1500sq ft new home (single family, cash purchase, still in SC) for $130K.

We have downsized several ways and several times. We are done.........LOL
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Old 05-17-2014, 03:55 AM
 
71,595 posts, read 71,751,865 times
Reputation: 49209
Quote:
Originally Posted by go09 View Post
I'm guessing that the majority of cash sales are investors. They are the ones with ready cash. They are the ones buying lower-priced homes often before first-time homeowners can work out their finances. I think some states now have a law requiring a certain amount of time must lapse before investors can buy (?).

When I was recently looking for a home, I was turned down several times because of not having cash or being able to qualify for a Conventional Home Loan. This leaves very little affordable homes on the market for first-time homebuyers and/or those seeking a small or lower-cost home... a very sad state of affairs.
folks have cash to spend for many reasons. inheritances ,accident settlements , investments, proceeds from life insurance , savings , selling properties that they accumulated equity in and are down sizing.

there are just to many ways folks can get enough money to pay cash over a lifetime. usually starting out is when you need a mortgage.
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