Law School Discussion

Home Ownership and Wealth Building

Freak

  • ****
  • 4767
  • What's your agenda?!
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #350 on: December 30, 2005, 03:32:37 PM »
A loan is a loan is a loan....

One Step Ahead

  • *****
  • 6251
  • you say you want a revolution
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #351 on: January 03, 2006, 09:37:22 AM »
How will this influence your decision on whether or not it is a good time to buy?

Most overvalued housing markets
Latest analysis of 299 markets: See how your hometown ranks.
By Les Christie, CNNMoney.com staff writer
January 3, 2006: 2:33 AM EST
NEW YORK (CNNMoney.com) - Sixty-five of the nation's 299 biggest real estate markets are severely overpriced and subject to possible price corrections.

That's according to the latest (third quarter) Housing Market Analysis conducted by National City Corp, a financial holding company, in conjunction with Global Insight, a financial information provider.

The report named Naples, Florida as the most overvalued of all housing markets in the United States. A single-family, median-priced home there sells for $329,970, 84 percent more than what it should cost -- $180,956 -- according to the analysis.

National City arrives at its estimates of what the typical house in these markets should cost by examining the town's population densities, local interest rates, and income levels. It also factors in historical premiums and discounts for each area.

Other markets deemed wildly overpriced included Merced, California (by 77 percent), Salinas, California (75 percent), and Port St. Lucie, Florida (72 percent).

Undervalued markets were College Station (-23 percent), El Paso (-18 percent), and Killeen (-16 percent), all in Texas. That state dominated the discounted markets list with nine of the 10 most undervalued housing markets. Montgomery, Alabama was No. 8 among the undervalued markets.

The data did produce some evidence of prices moderating, according to National City's chief economist, Richard DeKaser.

In Massachusetts, for example, one of the hottest of housing markets over the past few years, each of the seven housing markets analyzed was still overvalued. Prices, however, had fallen in all seven. That would indicate the state is trending back toward normal valuations.

The same could not be said of Florida. The Sunshine State had 15 different markets on the list of extremely overpriced metro areas and all 15 had grown more overpriced during the quarter.

Amidst all these hot and cold markets there were a few judged, like Goldilock's porridge, "just right." They included Albuquerque New Mexico, Dayton Ohio, and Omaha Nebraska. In all those towns actually selling prices closely tracked the expected values


http://money.cnn.com/2005/12/29/real_estate/buying_selling/handicapping_housing_markets/index.htm?section=money_latest

Re: Home Ownership and Wealth Building
« Reply #352 on: January 03, 2006, 09:49:00 AM »
come on down to houston lol

One Step Ahead

  • *****
  • 6251
  • you say you want a revolution
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #353 on: January 03, 2006, 09:50:49 AM »
come on down to houston lol

but it is hot.  :(  how much is a 3-4 bedroom in a relatively nice area?

Re: Home Ownership and Wealth Building
« Reply #354 on: January 03, 2006, 09:53:44 AM »
depends on what part of town.. i have a friend that bought a 3br 2ba under $120k in a nice area that's being redeveloped (brand new subdivision)...

where I am you can get a 3br 2ba 2 car garage for $140k without the upgrades..

yes it's hot but that's why you have air conditioning..a good car and limited time outside during the summer months.. it's 76 degrees here today.. I do not miss 30 and below this time of year...

One Step Ahead

  • *****
  • 6251
  • you say you want a revolution
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #355 on: January 03, 2006, 10:03:13 AM »
depends on what part of town.. i have a friend that bought a 3br 2ba under $120k in a nice area that's being redeveloped (brand new subdivision)...

where I am you can get a 3br 2ba 2 car garage for $140k without the upgrades..

yes it's hot but that's why you have air conditioning..a good car and limited time outside during the summer months.. it's 76 degrees here today.. I do not miss 30 and below this time of year...

if you are looking to buy as a relatively shorter term investment, how short could you wait and still get a nice return?
what kind of downpayment is usually required?

Freak

  • ****
  • 4767
  • What's your agenda?!
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #356 on: January 03, 2006, 10:22:27 AM »
depends on what part of town.. i have a friend that bought a 3br 2ba under $120k in a nice area that's being redeveloped (brand new subdivision)...

where I am you can get a 3br 2ba 2 car garage for $140k without the upgrades..

yes it's hot but that's why you have air conditioning..a good car and limited time outside during the summer months.. it's 76 degrees here today.. I do not miss 30 and below this time of year...

if you are looking to buy as a relatively shorter term investment, how short could you wait and still get a nice return?
what kind of downpayment is usually required?

I purchased a condo in Chicago, renovated it and resold it w/in 8mths...and made a nice profit...

Re: Home Ownership and Wealth Building
« Reply #357 on: January 03, 2006, 10:30:39 AM »
Chicago is definitely the place to buy condos and rehab...it's my hometown and I'm trying to buy more property there..

--
E how long is short term?

Freak

  • ****
  • 4767
  • What's your agenda?!
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #358 on: January 03, 2006, 10:34:00 AM »
Anything less than 3 years is short term. If you live in a place for 3 years + you avoid captital gains.

One Step Ahead

  • *****
  • 6251
  • you say you want a revolution
    • View Profile
Re: Home Ownership and Wealth Building
« Reply #359 on: January 03, 2006, 10:37:03 AM »
lets go with freak and say 2 years-- then also give my options after 4 years (post capital gains)

how much downpayment?  what kind of profits are we talking?  (freak, reign, Max etc feel free to jump in)