House 'Flipping' Skyrockets, Sparks Concern Over a Housing Bubble

[8mpg]

*theoretically appreciating.

The people I bought from lost 40k in 5 years.

very true... Historical market appreciation has been 3%ish from what I have read in the past.

[Baron Von Crowder]

very true... Historical market appreciation has been 3%ish from what I have read in the past.

well, they would have appreciated around 30k had they stayed another ~5 years, I just lucked into them getting transferred out of state and a need for them to dump the house asap.

[Sean88gt]

I hope it busts in late 2017/early 2018.

[juiceweezl]

Even if you overpay, you are paying towards an appreciating asset. Id buy in a heart beat

I'd be careful on that. Prices in some areas are getting stupid, and if you get trapped in that situation, it's just about impossible to recover.

[svauto-erotic855]

Even if you overpay, you are paying towards an appreciating asset. Id buy in a heart beat

Only fools believe that a home is an asset. A house is just a place to live and I can not think of a single other "Asset" that has such large liabilities attached to it.

[Ruffdaddy]

I'd be careful on that. Prices in some areas are getting stupid, and if you get trapped in that situation, it's just about impossible to recover.

Yep...look at the last crash. Some houses were down 60-70%.

I dont expect the next downturn to be as bad...but imagine losing 20-30% of your home value. Thats near 100K on the high end for a house thats only 300K. Thats not an easy pill to swallow for just about any middle class or lower family.

[Torinoman]

The problem is people buy way too much house. They think they need a 2800 sqft $250k first or second home. Crazy shit. I paid 120k for a small first house in a decent neighborhood. House is already up 50k in market value. If it bounced down a bit I'll be fine as I'll still owe less than its worth and the mortgage is cheap

[Baron Von Crowder]

The problem is people buy more house than they can afford. They think they need a 2800 sqft $250k first or second home. Crazy shit. I paid 120k for a small first house in a decent neighborhood. House is already up 50k in market value. If it bounced down a bit I'll be fine as I'll still owe less than its worth and the mortgage is cheap

fixed.

[8mpg]

Only fools believe that a home is an asset. A house is just a place to live and I can not think of a single other "Asset" that has such large liabilities attached to it.

Tell that to all the millionaire real estate investors... Warren Buffet must be wrong as well because we all know you are right.

[svauto-erotic855]

Tell that to all the millionaire real estate investors... Warren Buffet must be wrong as well because we all know you are right.

To them it makes no difference what they are selling if they can make money on it. They would sell pogs if it would turn a buck. A house is only an investment to them because fools like you line up around the block to buy one in the mistaken belief that it is an investment for YOU. I will back track and say that a house is an investment but it is the single worst investment that you can ever make especially if you do not pay cash for one. In the end a house is an investment for everyone EXCEPT for the end user. As a home owner who lives in the place about the best you can do is have lived there for free when you sell it after you subtract what living there cost you. It is also the most taxed thing that you could ever even try to buy.

[Baron Von Crowder]

To them it makes no difference what they are selling if they can make money on it. They would sell pogs if it would turn a buck. A house is only an investment to them because fools like you line up around the block to buy one in the mistaken belief that it is an investment for YOU. I will back track and say that a house is an investment but it is the single worst investment that you can ever make especially if you do not pay cash for one. In the end a house is an investment for everyone EXCEPT for the end user. As a home owner who lives in the place about the best you can do is have lived there for free when you sell it after you subtract what living there cost you. It is also the most taxed thing that you could ever even try to buy.

You, like, have to live somewhere, and that costs money. Soooo....

[svauto-erotic855]

You, like, have to live somewhere, and that costs money. Soooo....

That is why I keep saying that a house is just a place to live and not an investment. You are overlooking the "At best" part of my statement and hardly anyone considers the cost of replacing a home when they sell the one they are living in when they are bragging about home much they have "made" by living in their "investment".

[Gtracer]

You, like, have to live somewhere, and that costs money. Soooo....

Laying down the facts in here, lol

[Jewrrick]

Something tells me SVO is bitter about something. If I were to sell my house right now, I would turn about a $40,000 profit, not including updates, repairs, or paying the mortgage. But yeah, That's a horrible investment...

[svauto-erotic855]

Something tells me SVO is bitter about something. If I were to sell my house right now, I would turn about a $40,000 profit, not including updates, repairs, or paying the mortgage. But yeah, That's a horrible investment...

Now total up what selling the house will cost you in commissions, closing cost, capital gains, and finding a new house to live in and tell me how much you will make; not to mention how much interest & taxes you paid on the house while living there. I will clue you in, your 40k in "profit" goes down quite a bit.

I am not bitter at all. I just hate to see people following each other like a herd of sheep when there is a better way of doing things. There is value in owning a home but that value doesn't come from it being an investment. I personally own quite a few "Homes" and for me they are an investment because they produce a monthly income.

Edit: It really comes down to this, if you did not pay cash for a house you are living in it doesn't even come close to being an investment. It is just a place to live.