Subdivision in Sheridan (Gillette: apartments, rentals, loan)

[ElkHunter]

I hope these new sub-divisions work out.

I have heard people screaming that they have their house up for sale and their loosing money. Huh?

They purchased the house for $105k about 5 years ago. It was recently appraised and put on the market for $260k. It stayed on the market and wouldn't sell. They were offered $220k. They turned it down and then started their complaints about loosing money.

Excuse me??????? They paid 105 and were offered 220. Seems like a pretty good profit to me. Might not be the "Over inflated" price the realitor and inspectors told them could get. But obviously the realitor and inspectors were wrong.

Could be that when it was appraised at the inflated rate, the people got a second morgage and now they owe more then the 220k?

But you know, it's our fault because we're not willing to pay the stupid, over inflated prices.

[Kristynwy]

HaHa Thanks for your response

I agree, I can't understand all the complaining, when they are still making gobs of money?

I didn't think about the second mortgage making them owe more than it's worth, that is a good point... I do know a lot of people who have bought in the past couple years have had to get second mortgages just to pay for the over inflated prices...

[Clay Lady]

What are the jobs drawing so many people to Sheridan? I have heard the word energy used but am not aware of oil drilling. Drilling alone would not be enough for a subdivision to be built. I just wondered.

The whole mortage situation has been played like a game and now a lot of people are in over their heads because they thought (wrongly) that property values were going to keep going up, up, up. The lenders gave out such sweet deals (pay only the interest and ARM) that they thought was smart at the time. I saw were a realtor was saying putting 10 thou on a 200 thou mortage was good and doable. Well, if you look at the instant interest you will owe once you sign your name, you would have to sell for much more if you held the property for less than 5 years - maybe ten.

[ElkHunter]

Originally Posted by Clay Lady

What are the jobs drawing so many people to Sheridan? I have heard the word energy used but am not aware of oil drilling. Drilling alone would not be enough for a subdivision to be built. I just wondered.

There are a couple different "Energy" things that are booming. One has been a long term boom, coal. The other is methane gas. Just a few short years ago, they discovered that methane gas could be extracted where there is coal. There may not be enough coal to mine, but what there is, still produces methane gas. So the big boom has been in the methane fields. With oil, they pumped into a central tank that handled about a dozen wells. With methane, they drill a well, and set up a pumping station. From the pumping station, they have pipeline running for miles and miles so that they can tap off of hundreds of wells to one central location. The boom is drilling, and laying the piping. Once all the piping is layed, the boom will bust. It takes hundreds of people to lay the pipe, but only a few to maintain it.

The coal in Wyoming is sold mostly to states like Pennsylvainia. I know, your thinking that Penn has their own coal. It's not good coal. Coal in Wyoming and Montana is a very low sulfer coal and can be burned at power plants much cheaper. The high sulfer coal in Penn has to have scrubbers installed and ways to cut down the sulfer that is dangerous in the air. So a lot of coal goes out of here, bound for the North East where they have a lot of Coal fired Power plants.

[Clay Lady]

There is a major pipline being built in Arkansas also. Someone I visited with at a party in Little Rock a few months ago was talking about three pipelines going across the US and this one they are building in AR now is part of a fourth and largest line. There is some serious money involved in the production.

Is the coal trucked across country or on trains? It seems like it would be very heavy.

[ElkHunter]

Originally Posted by Clay Lady

Is the coal trucked across country or on trains? It seems like it would be very heavy.

Some coal is trucked out to local power plants, but it's all short distances. But mostly, if it's trucked out, it's going to coal distributers around here that sell coal to local folks for their coal furnaces.

The coal mine outside of Sheridan loads 8 trains a day. 125 cars to each train. Each car holds over 100 ton of coal. But that's one coal mine. Down in Gillette, they have about 12 coal mines. A tad bit busier.

[msdmckee]

KristynWY.........The housing situation in Sheridan looks like, feels like, smells like..........YIKES!!!! What happened in California!!!! Yep, you guessed it, flippers, speculators, and on and on and on........

There is historical perspective in the dutch tulip craze in the 1800's.....EVERY body wanted them, no matter the price. Governments were almost brought to their knees.

We got hooked into the OWNERSHIP NATION craze. But suddenly, inspite of what were probably honorable intentions in the beginning, all these folk started seeing ways of making a buck or three of their own all in th guise of getting some other person into owing their very own home. So. The convergence of having some extra employment in the area coupled with a new way to speculate on, package and sell houses led to some very unrealistic expectations.

Now comes the let down. It will take a bit longer for the cold hard facts to sink in and true value to replace what was inflated. BUT it WILL happen.
We too, are waiting to buy a house. We've got the FICO, we've got the down payment. But we are waiting. When the skin in this game is your's, you don't want to speculate.

I don't mind paying what is a fair value. I don't mind waiting until I find one.

[Kristynwy]

Originally Posted by msdmckee

KristynWY.........The housing situation in Sheridan looks like, feels like, smells like..........YIKES!!!! What happened in California!!!! Yep, you guessed it, flippers, speculators, and on and on and on........

There is historical perspective in the dutch tulip craze in the 1800's.....EVERY body wanted them, no matter the price. Governments were almost brought to their knees.

We got hooked into the OWNERSHIP NATION craze. But suddenly, inspite of what were probably honorable intentions in the beginning, all these folk started seeing ways of making a buck or three of their own all in th guise of getting some other person into owing their very own home. So. The convergence of having some extra employment in the area coupled with a new way to speculate on, package and sell houses led to some very unrealistic expectations.

Now comes the let down. It will take a bit longer for the cold hard facts to sink in and true value to replace what was inflated. BUT it WILL happen.
We too, are waiting to buy a house. We've got the FICO, we've got the down payment. But we are waiting. When the skin in this game is your's, you don't want to speculate.

I don't mind paying what is a fair value. I don't mind waiting until I find one.

Thank you for your response... I agree with you 100%
I too am building and maintaining my FICO score and keep my eyes open to watch what happens first...
That is exactly what my husband keeps telling me, when it is one of the biggest purchases of your life you don't have time or want to speculate, and it can devastate us just like any other family in the country or in our community...

Anyways, you really encouraged me with your post thanks again

[wyoman]

I Totally Agree That There Will Be Another Bust In Sheridan. If Its Anywhere Near What It Was When The Mines Turned Brother Against Brother And 100"s Of People Living The Good Life In There Over Indulging Lifestyles Went Totally Bankrupt The Crap Homes That Are Rapeing Our Once Beautiful Landscape Will Keep Our Fire Deparment Awful Busy!

[ruggedindividual]

Originally Posted by ElkHunter

Just a few short years ago, they discovered that methane gas could be extracted where there is coal.

Coal-bed methane started development in the 1970's, grew in the 80's and boomed in the 1990's and is still growing rapidly today. Just not sure what you mean about "a few short years ago."