[Joekerr]

Well, glad to see it isn't just crazy in Canada!

For about 2 years now, I've been constantly looking online at anything coming up that is of interest, but there is so few lots that meet the criteria that I'd be looking for that I'm starting to wonder if there might not be a better way of just finding what I want and then approaching the owner to see if they want to sell!

Honestly we probably won't move, we have no real reason to leave where we are, but I sort of want to capitalize on the gains in the house and buy a lot and build (since it would be a sideways move just buying an existing house and that wouldn't make sense to leave what we have).

The bank just appraised my next door neighbours house at $1.1M and that would be conservative since it is from a bank, so I figure he could sell his realistically for $1.4M+

And someone just bought a home on our road that needs to be completely torn down for $2.6M. Now, that tear down is a waterfront property, but it can't be more than 0.75 acres. I thought it was crazy they got $2.6M for a teardown - they listed for $2.5M so they actually got over ask. Its just dumb out there.

[freakystyly]

Right, it seems there's a land grab right now with everyone fleeing their condos like bats out of a cave. The houses themselves are near worthless when the land is going for that much. This is happening across the country (it's all relative). There's virtually no such thing as a $300k detached house anymore unless you're in Northern Ontario or somewhere a day's drive from the nearest Tim Hortons. Only those making ~$150k can afford these too, where is all the money coming from?

[dreamingat30fps]

Originally Posted by David70

Yes, if you double your budget the houses are significantly nicer and there is less people at this price range. A $600k vacation house in rural NC gets you a lot more.

With the "supposedly people are out of work", the group doing the worst was never in the market for a vacation home. The people that haven't lost their jobs and are historically a possibility to buy a vacation home are likely spending less of their disposable income (gas, car maintenance, car replacement as they wear out, clothes, restaurants, vacations). Interest rates are historically low so people realize that is they planned to buy in the next couple of years it is unlikely the finance part of their payment will ever be lower. If 30 year mortgages go back to 5% the prices will drop as the total monthly payment goes up.

Maybe I don't know. I feel rates have been low for a long time now. Plus how much does 1-2% change in the interest rate really affect the payment? $100/mo? $200/mo? Is that the difference between buying a "vacation" home or not?

Originally Posted by David70

I have never had any interest in owning a vacation home, just nowhere in the world I want to spend most of my free time, would prefer to rent and stay where ever I like, and feel like once I had this home most vacations would end up being there, whether I wanted them to be or not. My goal is to rent a home for 2-3 weeks multiple times per year, all over the world, and not deal with any of the hassles and expenses of owning a 2nd home. Different interests.

Well I see it more as a summer home than a vacation home really. Come here for the summer, keep our RV here and use it as a base camp. Much easier to get places with the RV when you don't have to spend 8 hours just to get out of FL. We would probably spend like May-Oct or Nov in NC while also spending some of those months in other places in the RV. Then go back home to FL in the winter to take advantage of the good weather, see family etc.

That being said I don't want to spend more money on my second home than I spent on my primary home. However at the same time I don't know what the future holds so I do want something that will hold some value, that we could move into full time if the need arouse or we could rent out as a source of income or just sell and not be upside down if we decided we hated having a second home.

[King Rudi]

Skimmed comments, didn't really read much. From what I read, I agree with. Yes, it's insane.

I'd love to sell my home at the moment. I'd stand to make around $45k. Problem is, I'd be homeless after, or renting again. People are asking insane prices here, and getting it.

[dreamingat30fps]

Originally Posted by King Rudi

Skimmed comments, didn't really read much. From what I read, I agree with. Yes, it's insane.

I'd love to sell my home at the moment. I'd stand to make around $45k. Problem is, I'd be homeless after, or renting again. People are asking insane prices here, and getting it.

Yup, I could sell our house now and easily double our money... but where am I going to live? Would end up paying double for a crappier house. I guess it's only good if you have a second home to get rid of or plan to down size big time or something.

[King Rudi]

Originally Posted by dreamingat30fps

Yup, I could sell our house now and easily double our money... but where am I going to live? Would end up paying double for a crappier house. I guess it's only good if you have a second home to get rid of or plan to down size big time or something.

Yeah man. It's a shame. I'd love to make the money but damn, it isn't worth it.

[David70]

Originally Posted by dreamingat30fps

Maybe I don't know. I feel rates have been low for a long time now. Plus how much does 1-2% change in the interest rate really affect the payment? $100/mo? $200/mo? Is that the difference between buying a "vacation" home or not?



Well I see it more as a summer home than a vacation home really. Come here for the summer, keep our RV here and use it as a base camp. Much easier to get places with the RV when you don't have to spend 8 hours just to get out of FL. We would probably spend like May-Oct or Nov in NC while also spending some of those months in other places in the RV. Then go back home to FL in the winter to take advantage of the good weather, see family etc.

That being said I don't want to spend more money on my second home than I spent on my primary home. However at the same time I don't know what the future holds so I do want something that will hold some value, that we could move into full time if the need arouse or we could rent out as a source of income or just sell and not be upside down if we decided we hated having a second home.

https://www.bankrate.com/calculators...alculator.aspx
$300k @ 3% - $1264 per month
$265k @ 4% - $1265
$235k @ 5% - $1261
Lower rates help drive higher prices. Financing $265k @4% is the same payment as $300k at 3%. Reducing rate from 4% to 3% was the same as a price increase of 13%.

The Summer home makes a lot more sense to me than what most working people can use for vacation. Renting it out can also make it work but then also comes with it's own hassles.

[David70]

Originally Posted by dreamingat30fps

Yup, I could sell our house now and easily double our money... but where am I going to live? Would end up paying double for a crappier house. I guess it's only good if you have a second home to get rid of or plan to down size big time or something.

Realtor friend of ours said it was a great time to sell. I asked her how we were supposed to come out ahead on this plan. I think it was mostly about her coming out ahead on selling our house and buying another.

[Alfisti]

Dirty secret is moving costs about 100K on median priced house here, once you take that into account you're almost always better of renovating. Or 997ing.

[BMW F22]

It’s crazy in various places like Seattle, Bay Area, Austin, etc. waiting for a correction to jump in on a decent home. I just feel right now everything is so high. In better cities a 1,000 sq ft place is going for $1.2M+. Wtf...

[Bonk!]

Boston is crazy too - we've had people come knock on our door to see if we're interested in selling. Limited inventory and the rush to the suburbs over the last 9 months has driven the market nuts.

[OkieSnuffBox]

Originally Posted by dreamingat30fps

I'm just curious why everyone is buying these properties all of the sudden.

Low interest rates + fear of congested cities and spread of disease.

If we didn't have a bunch of animals, I'd throw mine up on the market, make a little money and go back to renting a nice apartment/condo downtown.

And since I'll be working from home permanently now, also makes it easier for us to move.

[dreamingat30fps]

Originally Posted by OkieSnuffBox

Low interest rates + fear of congested cities and spread of disease.

If we didn't have a bunch of animals, I'd throw mine up on the market, make a little money and go back to renting a nice apartment/condo downtown.

And since I'll be working from home permanently now, also makes it easier for us to move.

Oh the thought has crossed my mind to sell our house, pocket the cash and live in the RV. Unfortunately RVing, RV parks and anything RV related has also gone through the roof. Finding an RV site almost anywhere has become like looking for an RV site in FL in the winter.

I've also considered buying land and just getting electric, water and sewer (septic) installed and park our RV. Then we could always build a cabin or what not down the road. However I know nothing about buying land or having that kind of work done.

[haagm58]

I'm in SC just sound of Charlotte and the market is crazy. Super low inventory. We list our house tomorrow. Neighbors of ours listed 2 weeks ago and had 12 offers within 2 days on the market...totally insane.

Unfortunately where we are moving to is in the same situation and we haven't found anything appealing available yet.

[Mein11]

Both Carolina's have been a sellers market for at least the past 5 years. Bought a house outside of Raleigh, NC 4 years ago, lived there for one year and sold it for $25k more to one of the bidders on first day of listing.

Here in Charleston I close on a house next month. Was outbid on two others, and all bids were put in the first day of showing. Not sure who all the other buyers are, some buy to rent, but I think a lot of people have been getting shafted on cost of renting. Rent used to be more affordable than owning, but now it's damn near the same, sometimes more. My mortgage will be equal to this shitty ass 700 square foot apartment with a detached garage, it's asinine.

[(K)]

In Massachusetts it's out of control. My agents are reporting that they're losing bids at $80k(!) over asking price (in the middle of winter!), escalation clauses, and appraisal gap coverage guarantees. It truly is a seller's market and if you have a second (or third) property that you can liquidate, now is the time to sell.

[MightyMouseTech]

Ottawa is ridiculous too, its not just the US. We see town houses listed at 400k and selling for nearly 600k. Houses that were 500k 5 years ago are now 1.2 mil all with bidding wars on the first day listed. You can't buy a single family home under 800k anymore. Even condos are sky rocketing. Our own condo has gone up about 25% in the past year compared to other units in our building that have sold recently. Had a friend list her town house in a really bad part of town, she listed at 350, sold for 525.

[BMW F22]

At some point homeownership becomes overrated. For most ppl it’s the largest purchase/investment of their life. But at ridiculously high prices, doesn’t it become a liability rather than an asset? I mean, you’re stuck in debt for 30 years and hopefully your home value will go up.

[Bonk!]

They're like the stock market - buy low, sell high!

[Joe T]

Originally Posted by jsf721

Nyc is the only local bargain right now. People are leaving in droves. It’s pumping up values outside the city to crazy high numbers.

If you have the $ and time nyc is a buy now.

our market has slowed a little, this time last year my neighbor had their home on the market for mid 800's and it sat, covid hit in March they took it off the market for a while, listed again in August at $900k and the bidding war from NYC escapees drove it up to $1.3mm cash in 48 hours

They're renting a place now because they didn't think it would sell so fast and construction on their retirement home in Florida was delayed

[(K)]

Current market aside, if you're buying a house with plans to sell, absolutely, you're sitting on a liability. If you're buying a home to take root and get out of renting, that's a different story. I mean you're never NOT concerned about the market but the house value is not front and center if you're not planning to sell.

[Alfisti]

Originally Posted by BMW F22

At some point homeownership becomes overrated. For most ppl it’s the largest purchase/investment of their life. But at ridiculously high prices, doesn’t it become a liability rather than an asset? I mean, you’re stuck in debt for 30 years and hopefully your home value will go up.

Thing is I said that 10 years ago when we paid $850K, I didn't sleep for a month. Now it's worth $2m+.

In outer suburban Toronto, a town house got 71 offers.....SEVENTY ONE