https://www.youtube.com/watch?v=fhq0VLYTqEo
Really good documentary on the growing housing crisis, not just here, but, across the world.
Is anybody on here seeing any outrageous price hikes on their rent? Jacksonville actually comes up quite a few times within the first 25 minutes of this video. Pretty interesting. Pretty telling. Pretty disturbing.
Not really just rent, I just closed on a house I was selling and made 3x the amount it was paid for like 12 years ago. So as much as it sucks for the people looking for housing, I really benefited from it.
$200 a Sq foot 3 years ago is now $600. It's untenable
My dad sold his house down there last month for $203K more than he paid five years ago when he bought it.
CNN did a story on this subject a month or so ago and Lesley Stahl interviewed a couple living in Jacksonville who want to buy a house but can no longer afford it. She also interviewed an investment guy who lives in Canada whose firm buys homes all over the country and rents them to folks. He said people want to rent the American dream now. Stahl looked genuinely surprised. When she brought that up to the couple they disagreed strongly with that statement.
There are a lot of new homes going up in my area and it looks like many of them are selling to guys like that investor who will turn around and rent them at ridiculous rental rates. We are really being told we will no longer own things.
Homes in my area are getting sold just as they hit the market or many times before they actually hit. All for more than what you’d think they’d go for and the vast majority bought buy investors. I’m not sure how one buys a house over here. You’ve got no time to think about it and seemingly need to pay cash. It’s crazy.
My daughter's apartment rent has risen $600 in two years.
Who do they think can continue to pay these crazy prices for rent?
The insane thing about it is that Florida already builds new houses faster than pretty much anywhere else. These investors have simply lost their minds. In the short term of course, rising prices are a self-fulfilling prophecy.
There are strong fundamentals, in terms of people moving to Florida and general inflation, but the investors are taking it to a different level, and this is at least partially a bubble.
The investors will realize that people are indeed renting these homes, but the rent will not be enough to cover the maintenance costs, the property insurance, and property taxes, all of which are going up sharply.
They said you'll own nothing and be happy.....
(05-27-2022, 07:36 PM)Jags Wrote: [ -> ]Homes in my area are getting sold just as they hit the market or many times before they actually hit. All for more than what you’d think they’d go for and the vast majority bought buy investors. I’m not sure how one buys a house over here. You’ve got no time to think about it and seemingly need to pay cash. It’s crazy.
Homes in my neighborhood are the same. Saw one listed and sold within 15 days. I don't know how they got it done that quickly. They gave 5 days to get your offers in and then sold 15 days after that.
I know someone trying to buy and they kept getting out bid. They didn't want to go over their budget and finally found a house after someone else fell out and they were approved but had to make a quick decision.
(05-27-2022, 10:07 PM)Bchbunnie4 Wrote: [ -> ]Who do they think can continue to pay these crazy prices for rent?
Guess? Starts with a big g. I think that is the plan to crash the market or out price everyone so the government has to step in and pay for housing.
(05-27-2022, 10:10 PM)mikesez Wrote: [ -> ]The insane thing about it is that Florida already builds new houses faster than pretty much anywhere else. These investors have simply lost their minds. In the short term of course, rising prices are a self-fulfilling prophecy.
There are strong fundamentals, in terms of people moving to Florida and general inflation, but the investors are taking it to a different level, and this is at least partially a bubble.
The investors will realize that people are indeed renting these homes, but the rent will not be enough to cover the maintenance costs, the property insurance, and property taxes, all of which are going up sharply.
They havethe cash and with inflation, real-estate is safer to park their money in than to just hold the cash. The market crashes, home prices fall, etc it won't matter to them. They aren't looking to sell the homes. They are even buying whole neighborhoods in some places. They just don't care about the cost. They are guaranteed income every month and since they are able to control the supply because they are buying all the homes, they can set the rent rates.
Some of it doesn't make sense but some does. My house rent supposedly would be at least $1,000 more than my mortgage. So if you buy a lot of new homes, low maintenance costs, you will make a bunch even if you have to deal with the additional hassles. It doesn't make sense though as these are long-term investments that don't have a huge ROI as its single digits around 5% or so. They are paying a lot of cash that they could make more on by doing other things.
It just doesn't make sense unless they know the collapse is coming or they are part of the conspiracy theory stuff about us owning nothing in the future.
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(05-27-2022, 10:18 PM)EricC85 Wrote: [ -> ]They said you'll own nothing and be happy.....
The people that work hard will be successful and be able to afford a house. If kids are spending time on tik tok doing duckface poses, then, frankly, they deserve to be priced out of the market.
Otherwise this become California where it’s about building new apartments for the homeless.
What goes up, must come down. The trajectory was unsustainable, so many people overpaid for their homes and continue to do so. Rents are becoming unaffordable practically everywhere. Something has to give. Get ready for a very loud POP!!
These situations tend to resolve themselves naturally, as long as there is no interference in the natural workings of the market. It's all supply and demand. The rising price of houses will cause more homebuilding, therefore more supply of housing, and that will put the supply/demand equation back in balance and the price increases will slow down.
I bought mine for $309,000 less than two years ago. It's now worth $550,000. It's crazy.
Screw long term rentals. I have converted four of my residential rentals to Air BNB's and have quadrupled my earnings. One of them I get $500 a day for and it's booked full through the end of September. Making an absolute killing.
(05-28-2022, 08:55 AM)Jagwired Wrote: [ -> ]Screw long term rentals. I have converted four of my residential rentals to Air BNB's and have quadrupled my earnings. One of them I get $500 a day for and it's booked full through the end of September. Making an absolute killing.
WOW, that is amazing and definitely something to consider.
(05-28-2022, 12:38 PM)Ronster Wrote: [ -> ] (05-28-2022, 08:55 AM)Jagwired Wrote: [ -> ]Screw long term rentals. I have converted four of my residential rentals to Air BNB's and have quadrupled my earnings. One of them I get $500 a day for and it's booked full through the end of September. Making an absolute killing.
WOW, that is amazing and definitely something to consider.
Make sure you check that air bnbs are allowed in the neighborhood first.
Sometimes when I'm bored, I peruse public records looking for my old grade school and middle school friends I've lost touch with. One guy I was good friends with has a homestead exemption on a large new house in Mandarin. That part's not remarkable. The remarkable part is he owns half of the other homes in the subdivision. And they're all above a half million dollars.
(05-28-2022, 03:18 PM)mikesez Wrote: [ -> ]Sometimes when I'm bored, I peruse public records looking for my old grade school and middle school friends I've lost touch with. One guy I was good friends with has a homestead exemption on a large new house in Mandarin. That part's not remarkable. The remarkable part is he owns half of the other homes in the subdivision. And they're all above a half million dollars.
Not stalkerish at all…
(05-28-2022, 01:07 AM)captivating Wrote: [ -> ] (05-27-2022, 10:18 PM)EricC85 Wrote: [ -> ]They said you'll own nothing and be happy.....
The people that work hard will be successful and be able to afford a house. If kids are spending time on tik tok doing duckface poses, then, frankly, they deserve to be priced out of the market.
Otherwise this become California where it’s about building new apartments for the homeless.
People are working hard now and can't afford to buy a house. In some cases there are no houses to buy. My dad's house went on the market and was sold in less than 48 hours. That screams investor buying, not a legitimate home buyer, and now it's one less house available to be bought instead of rented.