What would you buy if you had an extra 50-100K?

[ianccc]

Hey Whitebark - I am headed down to Gilbert on Apr 5th - will be there for a month was going to look you up,,

[Gerry]

Buy a foreclosure home in the United States. With their record low prices and our high dollar it's a major win. They will not stay in the hole much longer.

Guess again. Those that have been riding it out over the past two years have walked away. Many cities and municipalities that have been safe are now getting hit hard.

Bank foreclosures in reality are up but the reason they showed a dip in the market is because of the new financial regulations passed last fall and took effect in February. In other words, many of the newer foreclosures are tied up in paper work back logs.

Home sales dive, prices near 9-year low

[whitebark]

Hey Whitebark - I am headed down to Gilbert on Apr 5th - will be there for a month was going to look you up,,

Drop me a PM when you are there. Did you end up buying in Gilbert? I hope to be down there for couple weeks around the same time.

---------- Post added at 08:55 AM ---------- Previous post was at 08:43 AM ----------

Home sales dive, prices near 9-year low

Buying now versus six months ago would have saved money but again - it cannot go much lower! LOL... or can it. Either way, compared to the runaway prices here in the Great White North - losing 10% there is still nothing comparison-wise. Some regions here saw a 20% increase in home prices over the past year - that cannot be sustainable for too much longer. Canada is attracting many rich immigrants but it is causing strain in the housing markets for lower income families and new buyers. Canadian debt loads are far too high and there seems to be a bit of smugness of thinking in that we believe that we won't go the way of our Southern cousins.

Though I did catch a statistical tidbit on the American news two days ago that said 10% of all homes in Florida are vacant! With so many Canadians already owning/vacationing in that state I'm surprised they don't advertise harder to Canadians to come down and buy. It's seems to be the perfect storm for us - record low prices with a nice high Canadian dollar.

[draggar]

Though I did catch a statistical tidbit on the American news two days ago that said 10% of all homes in Florida are vacant! With so many Canadians already owning/vacationing in that state I'm surprised they don't advertise harder to Canadians to come down and buy. It's seems to be the perfect storm for us - record low prices with a nice high Canadian dollar.

I think that 10% is not a real number but a lot higher - they just can't be counted because the homes are still in a foreclosure process. As for values, after the homestead extension ($25,000 deduction in your home's taxable value for residents) our home is worth $0 (according to the tax statement we got for 2010). We've had a lot of foreclosures in our neighborhood as well as many more in the process.

But - I'm sure south Florida the numbers are a lot higher since we're one of the hardest hit with the housing market crash next to a few areas in the USA (Las Vegas is one). I'm sure there are areas of Florida no where near as bad as it is here.

[whitebark]

Well I wish there were another 34 million Canadians so that there could be more money flowing South to help the local economies. Call it the great snowbird plan.

[south]

more money flowing South

I would not object to that..

[Gerry]

Buying now versus six months ago would have saved money but again - it cannot go much lower! LOL... or can it.

Yes, it will go lower. As I mentioned, those regions that did not see big drops will now start to experience them because the economy just can not continue to support them. Plus, everyone who held steadfast and were riding out the storm and thought this would be a short lived recession are now seeing how wrong they were.

I am now even seeing waterfront property back on the market as bankowned (foreclosed) as much as 50%-75% less than these lots sold for. It is not that they were overpriced. It is simply people defaulting on their loans or walking away from their loans. I just found a waterfront lot on Lake Norman (largest manmade fresh water lake in the east outside of Charlotte NC) listed for $99.900 with a dock (pier) already in place. This will be snatched up in no time. This is more than 50% less than lots adjacent to it are selling for plus the pier and permits etc cost an addition $6K+.

I know you like Phoenix area. But I am convinced they still have not seen the bottom yet. Same with Florida and a few other states. One reason is all the retirees that live in some of these communities. There is already a flood of existing homes on the market and as those retirees die over the past 4 years or so (or move, or end up in a nursing home) it put more homes up for sale into an already saturated market.

[Gerry]

Even more bad news for the housing market in the US:

New Home Sales Plunge 16.9 Percent

Excerpt

The number of people buying new homes tumbled in February to the fewest on records dating back nearly half a century, a dismal sign for an already-weak housing market.

Many builders are waiting for new-home sales to pick up and for the glut of foreclosures to be reduced. But with 3 million foreclosures forecast this year nationwide, a turnaround isn't expected for at least three years.



Rather than buy a previously lived in home that has been foreclosed, I would be looking at new homes that are going for a fraction of what they were built for.

Most lived in homes are going to need updating, repair, renovation, remodeling, or some fix up (if they have not been totally trashed).

You are looking at a time when you can perhaps find builder's, new, spec homes foreclosed on that would be a steal. Many developers or builders are perhaps now going under and would accept anything to get out of a home they are sitting on.

WARNING: It is okay to work directly with a developer but get traditional funding and title search/title insurance. There is a community here in NC that the seller/developer was doing his own financing. People were paying him but he was not paying the banks. The entire development and about 16 homes sold with people living in them have now been seized by the banks because he defaulted on his loans to the banks.

Banks use the property as collateral and apply liens to the property.

Huge horrible mess for these homeowners. Some stand to lose close to $100K in fees, down payments, and monthly payments paid thus far over the past year or so

[DomainMagnate]

I'd add a bit more to it and buy some rental property in the area, or just add it to an investment account

P.S.: anyone noticed that this is in the .ca forum?

[Gerry]

P.S.: anyone noticed that this is in the .ca forum?

Yup, blame whitebark.

[CamMK27]

I remember when the thread was started it was in Domain Discussion section. Why was it moved to .ca? It doesn't make sense and also the thread has been off topic. It was not about just buying real estate, it was about what would people do if they had 50-100K just sitting there.

[Gerry]

++It was not about just buying real estate, it was about what would people do if they had 50-100K just sitting there.

well, it appears some people would by real estate, virtual real estate, or both.

As for being off topic...well, it was an open ended question that got varying responses.

---------- Post added at 04:06 PM ---------- Previous post was at 04:06 PM ----------

I remember when the thread was started it was in Domain Discussion section.

I think it has been in .ca from day one.