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Old 05-18-2014, 06:05 AM
 
Location: Near a river
16,042 posts, read 19,001,270 times
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Many sales stipulate cash only, typically distressed properties that could not qualify for a mortgage. Or a housing association is bankrupt, etc.
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Old 05-18-2014, 06:10 AM
 
Location: Near a river
16,042 posts, read 19,001,270 times
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check out the graphs:

The majority of home purchases are now being done by cash buyers: Destroying the myth that cash buyers are a small portion of the market. 60 percent of homes sold in 2013 came from the all cash crowd. Dr. Housing Bubble Blog
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Old 05-18-2014, 06:11 AM
 
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the fact is most americans suck as investors. they are better off not paying the interest , and go for the low risk return of not having a mortgage if they have a choice.

just the mere fact that even aggressive investors like myself scale back as we get closer to retirement can influence that decision. i will likely pay cash if we buy again since cutting housing costs may be better in retirement than going out on a limb to seek higher volatility investments..
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Old 05-18-2014, 06:52 AM
 
Location: Pac. NW
2,022 posts, read 1,527,150 times
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A lot of properties are on the market because banks won't finance a purchase. If they have structural defects or are just flat-out neglected (we all know what people often do to their own houses before being thrown out of them for defaulting on the loan) they will sit vacant for a long time.

The banks that are stuck with these distressed properties are holding a lot of shadow inventory because putting excess inventory on the market will increase supply and prices will drop.

The only realistic buyers for these kinds of deals are cash buyers.

Speaking for myself, I was never a big real estate fan until the recent recession made it attractive. I sold other investments to become a real estate investor due to these unusual conditions. I'd buy more real estate if i could, it's the best investment out there right now, IF you can find the money to buy it.

I know of buyers who have pooled their money to buy a single property with cash.

And moving forward it has a lot of upside - the "Gen-Y"ers are huge in numbers, that generation is almost as big as the "boomers", and they all have to live somewhere. "Gen-y"ers are a less stable, more transitory demographic that are much more likely to rent than settle in the 'burbs.

And if this emerging generation does decide to buy, investors will sell into a market that is driving the prices up.

This whole phenomenon is causing people to go to great lengths to find cash so they can get into the game.
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Old 05-18-2014, 06:54 AM
 
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the amount of folks paying cash for homes is still around the same number it had been for years.

it has been between 40-50% as far back as i have been seeing the info published and that is many years.
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Old 05-18-2014, 07:13 AM
 
Location: Toronto, Ottawa Valley & Dunedin FL
1,409 posts, read 2,357,727 times
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Quote:
Originally Posted by RomaniGypsy View Post
I'll give you another one - investors. America is moving rapidly toward being a country with a small wealthy proletariat which owns all of the property and a large bourgeoisie that rents housing from the proletariat. ...
You've got your Marxian nomenclature backwards. It's the bourgeoisie that are wealthy, the proletariat is the working class (look it up.)
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Old 05-18-2014, 08:35 AM
 
29,818 posts, read 34,907,142 times
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Quote:
Originally Posted by mathjak107 View Post
i have not seen anything about the site of battary park being toxic although the area has no interest at all to me so i don't follow it.

the area in lower manhattan has had toxic smoke issues from the world trade center that was air borne but that effected all of lower manhattan. .

if you saw a study showing the landfill there toxic post it .
No, not at all to the contrary and very high income. Developments on land fills in high end areas tend to have state of the art engineering and draw well educated clientele. Depending on targeted audience and who did the development defines my comfort zone.
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Old 05-18-2014, 08:44 AM
 
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thought so ,because i have not seen anything contrary to that. yep they certainly are making more land , will rogers would be very upset about that.
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Old 05-18-2014, 11:50 AM
 
Location: I live wherever I am.
1,935 posts, read 3,748,413 times
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Quote:
Originally Posted by Wwanderer View Post
You've got your Marxian nomenclature backwards. It's the bourgeoisie that are wealthy, the proletariat is the working class (look it up.)
Okay, you appear to be correct about this... but I can't seem to find any Marxian term that would represent the wealthy class like it is in America. "Aristocracy", maybe? The bourgeoisie is stated as being the "middle class", at least in what I looked up. At the very least, the bourgeoisie is a class up on the proletariat... I'll know that for the future. You're never too old to learn something...
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Old 05-18-2014, 12:37 PM
 
18,465 posts, read 20,242,301 times
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Does anyone wonder how many of these front cash buyers are leveraging on the back end? And how many cash buyers are not buying as a primary residence.
Banks can't be happy with this cash buyer arrangement. Banks don't make money on the sale. Banks make money on loaning and the interest of that loan. Banks don't like cash buyers. They don't make any money off cash buyers. Nice they payment is made the bank is completely cut out.
And since banks are stingy with loaning to Mr Normal Buyer who can't cash purchase and must borrow who in turn is getting cut out by the cash buyer, banks are basically cutting their throats while slicing their wrists.
I haven't looked lately but what are loan originations at today from last quarter or from last year. I still get updates for housing in my area. What I'm seeing is ( weekly) lots of new listings but also lots of price drops. But not many going pending as say early 2013 when they were selling like hot cakes. Yes prices are going up, underwater homeowners can now sell, but what good is it when you go above what buyers can afford.

This house I was interested in has been on the market for 12 weeks. Its in a nice area but its also 850,000 asking price. This isn't a McMansion. Its a house built in the 50s. It's been remodeled but not 850k worth. You would need a 150-170k income to buy this house. My income notwithstanding there is no way I would saddle myself with that much risk. But I'm sure someone will buy it.
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