Wolf Richter: Housing Bubble 2 Already Collapsing for the 99%

[pgardn]

The half-assed remark was direct at those naysayers who think this isn't possible...I manage 3 properties, but I only keep my one home here in SA..the rest of my properties are out of state.....thinking of downsizing and renting my current home in SA ... figure I could get between 2.4 and 2.6k per month......

This is not a wide open demand situation in this city imo.

I see it as very difficult.

[pgardn]

In my neighborhood a guy just bought a house for this exact purpose. The neighborhood is composed of mostly 3-2 s with big lots and old mature Oaks on large lots. There is only one entrance and the neighborhood is a delightful mix of retired folks and family starters on the NW side going to good schools. The access to almost everything needed is excellent.

The buyer for this house astutely realized this was a semi fire sale because of divorce and job changes. I would say the avg. house is valued at 170,000 based on recent but low turnover sales.

I will predict at this time he will not end up renting but selling. Profit, I have no idea. Why will he sell...

It has been a month since he bought the house and he has hired helter-shelter crews to get the house ready. My cousin could have had this house ready in a week and a half. This house is still not ready. Based on the work he has hired he will do the same half assed job renting it. It will become a pain and be sold to an actual owner who lives in the house.

I don't see any of this as easy. Just my little world observations.

[TeyshaBlue]

The half-assed remark was direct at those naysayers who think this isn't possible...I manage 3 properties, but I only keep my one home here in SA..the rest of my properties are out of state.....thinking of downsizing and renting my current home in SA ... figure I could get between 2.4 and 2.6k per month......

Out of state? Yeah, I can see hiring a mgmt. co for them. Long distance landlording's not for the faint at heart.

[SnakeBoy]

Yeah, I gotta admit I sometimes have my doubts about home ownership being a good investment. I love my "middle class" house, the property, and the area it is in, but I look at the initial cost, the taxes, the maintenance, etc. and question whether I am doing the right thing...when I am ready to sell in 20 years will there be anyone that will be able to afford it? I figure it's worth about a half million in today's market and even at super cheap interest rates there aren't that many people in San Antonio that can bust that monthly note and tax nut...and a lot of those that can are rich imports from California or drug dealers out of Mexico and they are buying those million + garish "Texas Tuscans" in the Dominion and Stone Oak.

I think real estate is a good investment but not the house you actually live in. Too many people view their home as some sort of retirement fund but even if housing prices are high when someone retires the only way to realize that gain is to sell and then what??? Either spend that money on another place to live or dramatically downgrade your standard of living by moving into a dump so you can keep some of the cash.

[spurraider21]

housing bubbles bursting people over when they borrowed money against their house or are caught playing the flipping game

[Nbadan]

housing bubbles bursting people over when they borrowed money against their house or are caught playing the flipping game

Housing bubbles aren't as bad in TX because of borrowing reforms enacted in TX in the 80's...most people who lose their homes don't do so because they borrowed too much against it, but because they had a sudden lose of income....

[Nbadan]

Out of state? Yeah, I can see hiring a mgmt. co for them. Long distance landlording's not for the faint at heart.

Well, it's vacation property...so....yeah....