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Correct, cost will increase due to sity taxes and other things that the town decides to screw up. But in the end, the person gets to buy a house and you still made money. So why not offer a lease-to-own on your property that you do purchase? If i had a option to do that vs having to come up with 10k for downpayment and other BS paperwork, i do it in a heartbeat. Just make sure the payments are at fair market and consistant stable so no surprises. I know interest goes up and down base on market, but at your rate.. monthly payment should be stable and consistent. Easy to manage when price stays the same vs every 6 months a 100 bucks because your taxes went up 10 bucks a year..
The day my taxes go up 10 bucks a year. I’ll give you the ****ing house. Total combined on 4 properties in Austin was closer to $8K last year. Why are you signing 6 month leases - so you can move easier? Can’t do that in a purchased home.
The real challenge? The person that doesn’t have the skin in the game (down payment) statistically doesn’t care as much. They default all the damn time, can’t afford the maintenance, then I get to go through the process (and cost) of foreclosure, eviction and repair.
I have seen them do so, here in killeen, their is one property management owner that does that. Goes out and buys them, then put them back on market in rentals. So yes it does happen, publicly or privately.
He is a private landlord that manages the property. He just does it incorporated.
Duh.. but if we had choices from best to worst.. Best can be the bank, and worst can be the LL. The houseing is a NEED. So if you want to help the market, here is a theory. Most folks cant come up with the down payment, but willing to rent out the home at a FAIR rate that doesnt increase. So why not Lease-to-Own if they are willing to buy it. Be lot easier on both parties to purchase a home via a lease program then letting the banks control the market and getting all the profits.
But im sure you want your full investment now vs in payments down the road? Like i said, many folks do try to buy homes, it just gets taken off the market due to things out of their reach. Like the funds to pay for insider trading, or get a house at decent rate only to be out bid by a property management. Housing is not a want, it is a need no matter how you slice it. Its the person and/or persons that wants to control that need to make a quick buck.
So please explain how "bank" owned properties is a better choice. Bank's, like all businesses, exist to make a profit. Banks don't exist out of kindness, its a money making machine FULL or far more questionable practices than you would ever find the average landlord guilty of committing. Bank's are in the business of money not real estate speculation. You do realize that real estate investments comes with risk, right? Risk that one accepts and all that comes with it. I'd also like to know who is to determine what "FAIR" rent would be and that would not increase. As for your lease to own suggestion how would that even work?
He is a private landlord that manages the property. He just does it incorporated.
So you know who i am talking about then.. lol I almost got a home for 65k, but he comes in at the last bid with 100k and bam took it away. Few days later with new coat of paint, its on the rental market. Now i have to renew my lease till i can find a good house deal. Thats the issue i have with the market.
So please explain how "bank" owned properties is a better choice. Bank's, like all businesses, exist to make a profit. Banks don't exist out of kindness, its a money making machine FULL or far more questionable practices than you would ever find the average landlord guilty of committing. Bank's are in the business of money not real estate speculation. You do realize that real estate investments comes with risk, right? Risk that one accepts and all that comes with it. I'd also like to know who is to determine what "FAIR" rent would be and that would not increase. As for your lease to own suggestion how would that even work?
Well first of all, the interest rate needs to be same across the board no matter what your score is. Who do think will default first? Charging somebody %20 interest with 600 month payment or %2 with $300 month payment? If its same across the board, then defaulting on loans would drop. Risk is risk, we both take it. I risk that you dont go belly up, and you risk that i make a payment.
Well first of all, the interest rate needs to be same across the board no matter what your score is. Who do think will default first? Charging somebody %20 interest with 600 month payment or %2 with $300 month payment? If its same across the board, then defaulting on loans would drop. Risk is risk, we both take it. I risk that you dont go belly up, and you risk that i make a payment.
Good lord. What risk is there if your bank goes belly up?
Your goddamn credit score is the indicator of risk! That’s why rates vary!!
Well first of all, the interest rate needs to be same across the board no matter what your score is. Who do think will default first? Charging somebody %20 interest with 600 month payment or %2 with $300 month payment? If its same across the board, then defaulting on loans would drop. Risk is risk, we both take it. I risk that you dont go belly up, and you risk that i make a payment.
Sorry, that dog doesn't hunt. Again back to the banks, if your credit score is so low it would yield a
20% interest rate your not getting the home anyway. I would also like to know how you will achieve interest rates being the same across the board? You do realize that's not even a rational thought, right?
So lets use a example from here in California. A house is on the market for $865K (pretty average price here in CA). The buyer needs to come up with about $170K with the remainder being financed at about 4% making that house payment approx. $3300 a month. So how should the lease to own thing work in your world.
Last edited by Luxman590; 01-10-2018 at 07:18 PM..
Reason: sp
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,572,211 times
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Quote:
Originally Posted by hitpausebutton2
Basically, kick the property management and house flippers out of the market, then we can see the true housing surplus. House prices will drop enough were it might make it easier for the average family to get a home. But we know that wont happen.
I've seen a lot of your posts looking for special financing, financial aid, etc because you simply don't qualify for a regular loan. It seems you are angry with everyone but yourself because you can't afford a home to buy. You blame everyone and everything but not yourself.
If you eliminated these people how do you know house prices will drop? All the people in your financial situation would now be in the market competing and raising prices. Those that can't compete go homeless because there is no landlord to rent a house from.
You want a custom situation that benefits you and your situation. Maybe you should consider getting an extra part time job or have your spouse work.
Lot's of people did exactly that and scrimped and saved to get a house. If others have done it why can't you?
Many conditions exist for a reason but you seem unable to accept that no matter how much it makes sense.
I've seen a lot of your posts looking for special financing, financial aid, etc because you simply don't qualify for a regular loan. It seems you are angry with everyone but yourself because you can't afford a home to buy. You blame everyone and everything but not yourself.
If you eliminated these people how do you know house prices will drop? All the people in your financial situation would now be in the market competing and raising prices. Those that can't compete go homeless because there is no landlord to rent a house from.
You want a custom situation that benefits you and your situation. Maybe you should consider getting an extra part time job or have your spouse work.
Lot's of people did exactly that and scrimped and saved to get a house. If others have done it why can't you?
Many conditions exist for a reason but you seem unable to accept that no matter how much it makes sense.
When I was about 20 years old I began thinking about buying a home (in CA). I then looked at my bank account and quickly realized I lacked one essential ingredient, money. I would however afford the payment but could not save enough while renting. I was working full time and took on two additional jobs working seven days a week for about 18 hours a day on average. All the pay from the other two jobs went right into the bank. Did this for about five years and purchased my first home. You want it, go out and make it happen.
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