OT: Real Estate market Q

[ejgonz]

I posted a couple months ago about wanting to move out of state. We have 4 school aged kids and school system is the driver (along with politics, space, and ‘value’). I’m just now getting more info from my company about how much we’ll need to be in the office and we decided we’ll be staying in state.

We have it narrowed down to a couple towns but the market is insane right now with no inventory. I’m thinking about selling my current house and renting for a year or less to let the market cool some. Any thoughts? What are the chances the market continues to rise?

 

[Joey Bags]

The rental market is skyrocketing as well. Be prepared to pay annual increases of 7%+ depending on the size and location.

 

[Knight Shift]

The rental market is skyrocketing as well. Be prepared to pay annual increases of 7%+ depending on the size and location.

We would never do that to our tenants. When we find good ones, we treat them well and don't raise their rent much, if at all. Usual turnover is 3-5 years, and then we raise the rent. We are fully rented.

 

[cicero grimes]

The other problem with waiting for the market to cool may see an increase in the historically low interest rates we have today. Even if you buy high now, if your intention is to remain here for at least ten years, you will still probably see your value increase over that time even if the market corrects in the short term.

 

[Joey Bags]

We would never do that to our tenants. When we find good ones, we treat them well and don't raise their rent much, if at all. Usual turnover is 3-5 years, and then we raise the rent. We are fully rented.

That's great that you don't, but a lot of properties and units owned by corporate real estate firms are bending people over with their increases especially with the pandemic environment still prevalent. Certain holding firms like Blackrock are buying up entire subdivisions of single family homes and putting them up for rent in parts of the country.

 

[Knight Shift]

That's great that you don't, but a lot of properties and units owned by corporate real estate firms are bending people over with their increases especially with the pandemic environment still prevalent. Certain holding firms like Blackrock are buying up entire subdivisions of single family homes and putting them up for rent in parts of the country.

I'm aware of that, and it is very sad what is happening. When we advertised for rent int he Spring, we had a LOT (like 50 e-mails) within 10 hours.

 

[mildone]

That's great that you don't, but a lot of properties and units owned by corporate real estate firms are bending people over with their increases especially with the pandemic environment still prevalent. Certain holding firms like Blackrock are buying up entire subdivisions of single family homes and putting them up for rent in parts of the country.

It's crazy how much rents are in decent central NJ communities along the major NJ transit lines, and not just rents of apartments owned by the corporate RE firms. I'm thinking seriously about tearing down my house, building 4-6 luxury apartment units, whatever the town will let me get away with.

If I do that, I plan to bend over my tenants just like you say, of course. Show me the money! 😀

I've already talked w/a couple builders about it. The problem is that I'm inherently lazy so I'm not sure I want to go to the effort w/permits and so forth. But with rents being so high, it seems a better idea than selling the property as I contemplate moving away from town.

 

[Morrischiano]

It's crazy how much rents are in decent central NJ communities along the major NJ transit lines, and not just rents of apartments owned by the corporate RE firms. I'm thinking seriously about tearing down my house, building 4-6 luxury apartment units, whatever the town will let me get away with.

If I do that, I plan to bend over my tenants just like you say, of course. Show me the money! 😀

I've already talked w/a couple builders about it. The problem is that I'm inherently lazy so I'm not sure I want to go to the effort w/permits and so forth. But with rents being so high, it seems a better idea than selling the property as I contemplate moving away from town.

You should check the price of lumber before you think about building an investment home. Prices are up 40-50% in the last year for lumber and other building materials.

 

[RUevolution36]

It's crazy how much rents are in decent central NJ communities along the major NJ transit lines, and not just rents of apartments owned by the corporate RE firms. I'm thinking seriously about tearing down my house, building 4-6 luxury apartment units, whatever the town will let me get away with.

If I do that, I plan to bend over my tenants just like you say, of course. Show me the money! 😀

I've already talked w/a couple builders about it. The problem is that I'm inherently lazy so I'm not sure I want to go to the effort w/permits and so forth. But with rents being so high, it seems a better idea than selling the property as I contemplate moving away from town.

i think the technical term for your proposed housing is "brothel"

 

[mildone]

i think the technical term for your proposed housing is "brothel"

I'm taking the fifth on that. 😀

Even if true, and I'm not saying it is, it would just mean that my tenants would be being bent over by their visitors as well as by me, their "landlord".

 

[WhichReligionIsRight]

I posted a couple months ago about wanting to move out of state. We have 4 school aged kids and school system is the driver (along with politics, space, and ‘value’). I’m just now getting more info from my company about how much we’ll need to be in the office and we decided we’ll be staying in state.

We have it narrowed down to a couple towns but the market is insane right now with no inventory. I’m thinking about selling my current house and renting for a year or less to let the market cool some. Any thoughts? What are the chances the market continues to rise?

The odds are really high the market stays strong. Without trying to predict the market, we seem to be in a cycle where people have a lot of money available, the stock market continues to do well, interest rates will probably remain low, and there is a lack of new housing being built around the country.

 

[knightfan7]

I'm taking the fifth on that. 😀

Even if true, and I'm not saying it is, it would just mean that my tenants would be being bent over by their visitors as well as by me, their "landlord".

What would you do with your girlfriends house?

Oops I meant sheep pen.

 

[Mr_Twister]

Anecdotal - my daughter’s neighbors in Denville NJ sold their house and are moving to Florida, where the wife grew up. Their house sold for $100K more than the list price.

 

[mildone]

What would you do with your girlfriends house?

Oops I meant sheep pen.

Well, if you were paying attention, Mr. Smarty-Pants, you'd recall that I had to eat all my GFs (aka sheep harem) early on during the pandemic. Because people panic-bought everything, and there was a brief meat shortage (I know, that's what she said). And I gots to have my protein.

It was unfortunate and I'm still in therapy about it. On the positive side, it freed me up to make this conversion of my house into apartments. On the negative side, I plan to purchase and move into a barn that I convert into, mostly, a big garage with a tiny little living space loft above it. And that would've been perfect for the sheep. I mean, you know, if I hadn't ingested them. 😥

 

[mildone]

Anecdotal - my daughter’s neighbors in Denville NJ sold their house and are moving to Florida, where the wife grew up. Their house sold for $100K more than the list price.

That's great. But what did they do about their sheep?

 

[GoodOl'Rutgers]

We would never do that to our tenants. When we find good ones, we treat them well and don't raise their rent much, if at all. Usual turnover is 3-5 years, and then we raise the rent. We are fully rented.

from a story I recently saw, they said big corps are buying up all forms of housing and renting it out...

 

[RUskoolie]

We just printed money like crazy over COVID and we now have Democrats wanting more money printed for reasons they can’t even explain. Real estate is the inflation hedge. You’ll be waiting a while my friend

 

[SHUSource]

You should check the price of lumber before you think about building an investment home. Prices are up 40-50% in the last year for lumber and other building materials.

This trend seems to be ending, with prices falling 41 percent since the record high in May. We're about to start a significant addition to our house and I've been watching this pretty closely.

 

[Plum Street]

It's crazy how much rents are in decent central NJ communities along the major NJ transit lines, and not just rents of apartments owned by the corporate RE firms. I'm thinking seriously about tearing down my house, building 4-6 luxury apartment units, whatever the town will let me get away with.

If I do that, I plan to bend over my tenants just like you say, of course. Show me the money! 😀

I've already talked w/a couple builders about it. The problem is that I'm inherently lazy so I'm not sure I want to go to the effort w/permits and so forth. But with rents being so high, it seems a better idea than selling the property as I contemplate moving away from town.

You should also check your zoning and affordable housing requirements that you will have to provide for . You will probably find out for the small time developer it won’t be worth it . The system is rigged for the big guys , just like many things in life.

 

[mdk01]

You should also check your zoning and affordable housing requirements that you will have to provide for . You will probably find out for the small time developer it won’t be worth it . The system is rigged for the big guys , just like many things in life.

The "big guys" weren't the ones who got the affordable housing provisions put in place

 

[Plum Street]

The "big guys" weren't the ones who got the affordable housing provisions put in place

Maybe you didn’t read my post . Did I say they did ? I said the system is rigged towards them . If a developer is building a 500 unit place they can usually absorb the affordable housing requirement better than a guy building 5 units.

 

[mdk01]

Maybe you didn’t read my post . Did I say they did ? I said the system is rigged towards them . If a developer is building a 500 unit place they can usually absorb the affordable housing requirement better than a guy building 5 units.

And what I am saying is that they weren't the ones who rigged the system.

 

[Plum Street]

And what I am saying is that they weren't the ones who rigged the system.

I didn’t say they were

 

[mildone]

You should also check your zoning and affordable housing requirements that you will have to provide for . You will probably find out for the small time developer it won’t be worth it . The system is rigged for the big guys , just like many things in life.

I have a two lot property and am zoned for dual use. Getting a building permit to put up apartments or commercial units wouldn't be a problem as long as they conform to code. And I'm pretty sure affordable housing won't be an issue in this case, but even if it was, I have a solution for that.

I am fairly certain I could do four units w/out any variances required at all. Six would require height, maybe setback, and possibly parking variances. But there are recently built neighboring apartments of the same sort at the same height and with far less setback than I'd need and less parking than I could provide. I'll have to work out the math, but six appears like it would be lots better from an ROE standpoint.

But again, this all implies a lot of work on my part. And I'm lazy. So while it's an idea, and not a bad idea probably, I have to work up the energy to actually do it. Just selling would be way simpler.

 

[Plum Street]

I have a two lot property and am zoned for dual use. Getting a building permit to put up apartments or commercial units wouldn't be a problem as long as they conform to code. And I'm pretty sure affordable housing won't be an issue in this case, but even if it was, I have a solution for that.

I am fairly certain I could do four units w/out any variances required at all. Six would require height, maybe setback, and possibly parking variances. But there are recently built neighboring apartments of the same sort at the same height and with far less setback than I'd need and less parking than I could provide. I'll have to work out the math, but six appears like it would be lots better from an ROE standpoint.

But again, this all implies a lot of work on my part. And I'm lazy. So while it's an idea, and not a bad idea probably, I have to work up the energy to actually do it. Just selling would be way simpler.

But if you’re building apartments won’t you have to go to your town’s board even if you don’t have variances ? I assume the town would want to look at the planning and engineering plans.

 

[NotInRHouse]

And what I am saying is that they weren't the ones who rigged the system.

That's not true. Some of the biggest developers had the largest role in Mount Laurel litigation. Toll Brothers v. West Windsor as one example.

It's actually the exact confluence of large corporations helping the little guy because they earn a profit via the builder's remedy from the courts.

It's only the NIMBY types complaining. They're basically digging their own graves in a hilarious manner.

 

[mildone]

But if you’re building apartments won’t you have to go to your town’s board even if you don’t have variances ? I assume the town would want to look at the planning and engineering plans.

Yep, would have to do that for anything to get building permits.

 

[Joey Bags]

Right on cue:

America Should Become a Nation of Renters

The very features that made houses an affordable and stable investment are coming to an end.

www.bloomberg.com

F*** these assholes. Sure, lets remove the biggest springboard to wealth generation for the average American because the idiots who have caused the current price run want to be the only game in town to dictate the rental market. JFC.

 

[RU76COOK]

We just printed money like crazy over COVID and we now have Democrats wanting more money printed for reasons they can’t even explain. Real estate is the inflation hedge. You’ll be waiting a while my friend

True, true, true
I have 6 tenants; I gave every tenant 1/2 rent off for 2 months last Spring. 4 never missed a payment, 1 struggled but paid some rent for a few months, then caught up and the other hadn't paid anything since May 2020. She collected State unemployment + $600/week for 4 months, then State +$300 plus EBT plus addl family stimulus $. Couldn't evict but I filed a lawsuit anyway to get it on record. Her lease was up before the Court date so I raised the rent $400/month. She said she wanted to renew for 2 years and could at the new (higher) rent !!!! Why didn't she just pay her rent before? "I was waiting for my case (Cares Act) to be heard." You and you and you and I paid 12 months ($15,000) of the rent. I did another background and credit check, >$30,000 in the bank. So if you're confused about the rampant inflation coming, now you know.