I think incentives for new builds are a bit misleading because the vast majority of those incentives only apply if you're purchasing as a primary residence. Very few builders will allow you to use those incentives as an investment property. Unless, you're willing to commit mortgage fraud, that is.
It’s a great time to buy, structure the deal right, if you are in position to possess an asset At the price that’s right for you, go for it. Having assets will forever be a plus.
On the example of new builders buying down your interest rate temporarily for a few years. How do people qualify for that loan? If you can afford that payment at the current time, but when it expires, it will be unaffordable then.
@@garrettp.5018 not going at say where because I have about 8 more houses in that city that I want to buy next year lol, sorry bubba. But an easy deal to find is a 1600sf 2-1, purchase price 110-120. Full rehab 60k. Turn the property into a 3-2. Arv 260 plus
@@garrettp.5018 the most recent one I got was off market with mailers. 2-2 1300 sf. Purchase price 55k. It was mid rehab. Remainder rehab is sub 50k. Arv is 200 to 220
Interesting to me how affordability is treated completely differently when the interest rate rises, versus when the home prices rose. When the mortgage rates are low and home prices were soaring, nobody talked about affordability. People just bought the right home at the price they could afford. Now with super high rates, suddenly homes are unaffordable? No, again you just buy the right home, for you. That's it. Oh, so you can only afford a 300,000 dollar house at 7% OK and? That is the house you can afford. No different than if the rate was 3% and now you're stuck with having a buy a small old house for 300,000 because the prices are rising faster than you can keep up. Don't say homes are unaffordable. No, you aren't WILLING to buy. Because you want a nice house for less. Just be honest and say that, there is nothing wrong with admitting that. It's called timing the market, we all do it to an extent.
@MrJacobegg I already made my point. I can explain it, I can't understand for you. That, my guy, is entirely on you. You can read my comment more carefully and extrapolate the meaning, or you can keep your misunderstanding. Whether or not affordability trends the wrong way because of rising rates (higher mortgage payment) or because the rate is low, but the price on said home has risen, the outcome is the same. You can buy the SAME house, depending on the market, for less but higher rate -- or for more at lower rate -- the net affordability doesn't change. In the end people will have to assess if they can make their monthly payment.
@steveho9890 You're correct. If people think we are at the height of unaffordability in the u.s... well, they havent seen nothin yet. Canada, Europe, Australia, parts of Asia (Singapore, S. Korea, Japan). Way worse than here.
I feel like it's a good time to get in the market in my area and refi next year when the rates are cut and then I won't be fighting with the rate cut fomo buyers.
I used to be in that refi camp. But since then I have changed my tune, a bit. Perhaps not a complete 180 from my initial stance. I do think people need to be careful with the notion of refinancing because while I still believe the rate has peaked (or very very close to peaking), and it is bound to trend downward next year and on, I no longer think it will trend down as sharply as quickly. I can see the rate being in the low to mid 6's by Q3 next year. So, is that worth the fees and the process of refinancing? If it's up to me, I say no. I'm one of those fortunate ones who is locked into the 3's right now so none of this really pertains to me.
I think most don’t consider a cut in interest rate because inflation drops too low. It’s not only because the economy crashes. Inflation in the 2s plus pressure from an election year can cause a decrease in interest rate leading to increase in inventory in the housing market.
The way I see it you’re never going to accurately predict the market. Waiting can cost you in opportunity costs so I’m going to do a sort of dollar cost averaging strategy and buy every year as long as I find solid deals
I’m just getting into the real estate industry, looking to do a house hack next year with a duplex or triplex. Wish me luck
Get a 4 unit to max out your fha
Lot of emphasis on mortgage rates here. I’d rather see a reduction of pricing.
Prices aren't going down. Adapt to the new environment
I think incentives for new builds are a bit misleading because the vast majority of those incentives only apply if you're purchasing as a primary residence. Very few builders will allow you to use those incentives as an investment property. Unless, you're willing to commit mortgage fraud, that is.
It’s a great time to buy, structure the deal right, if you are in position to possess an asset At the price that’s right for you, go for it. Having assets will forever be a plus.
These are amazing points. Love your analysis.
EXCELLENT
lol this guy is an active investor since 2010 which means he’s never experienced a down market
There are always great deals in every market, I love how the competition has been cut in half where we invest in San Diego
Bergen County Nj, a house will go on the market for 800k and sell for 950k within a month in winter
David Arabic to get your perspective on tiny homes and what do you think of them as rental properties
Your insights are spot on!
What about short term in Florida?
On the example of new builders buying down your interest rate temporarily for a few years. How do people qualify for that loan? If you can afford that payment at the current time, but when it expires, it will be unaffordable then.
The rate expires for the builders, not for a buyer on a fixed rate. Rewatch for better explanation you just interpreted wrong that’s all.
With temporary buy downs, the mortgage holder needs to qualify at the higher rate!
I’m cleaning up in this market. Great time to buy if you buy right!!!
Agreed 👍
What market and what is an example deal?
Lmao. Sure you are!
@@garrettp.5018 not going at say where because I have about 8 more houses in that city that I want to buy next year lol, sorry bubba. But an easy deal to find is a 1600sf 2-1, purchase price 110-120. Full rehab 60k. Turn the property into a 3-2. Arv 260 plus
@@garrettp.5018 the most recent one I got was off market with mailers. 2-2 1300 sf. Purchase price 55k. It was mid rehab. Remainder rehab is sub 50k. Arv is 200 to 220
Thank you bigger pockets. As a newbie investor 22 years old. you guys help out make a huge impact in my investing approach.🙏🏾🖤
Interesting to me how affordability is treated completely differently when the interest rate rises, versus when the home prices rose.
When the mortgage rates are low and home prices were soaring, nobody talked about affordability. People just bought the right home at the price they could afford.
Now with super high rates, suddenly homes are unaffordable? No, again you just buy the right home, for you. That's it. Oh, so you can only afford a 300,000 dollar house at 7% OK and? That is the house you can afford. No different than if the rate was 3% and now you're stuck with having a buy a small old house for 300,000 because the prices are rising faster than you can keep up.
Don't say homes are unaffordable. No, you aren't WILLING to buy. Because you want a nice house for less. Just be honest and say that, there is nothing wrong with admitting that. It's called timing the market, we all do it to an extent.
Affordability can only get worse. Just take a look at Canada where the single family homes are not affordable, but people are buying condos instead.
Tell me you don't understand what affordability means, without telling me you don't understand what affordability means...
@MrJacobegg I already made my point. I can explain it, I can't understand for you. That, my guy, is entirely on you. You can read my comment more carefully and extrapolate the meaning, or you can keep your misunderstanding. Whether or not affordability trends the wrong way because of rising rates (higher mortgage payment) or because the rate is low, but the price on said home has risen, the outcome is the same. You can buy the SAME house, depending on the market, for less but higher rate -- or for more at lower rate -- the net affordability doesn't change. In the end people will have to assess if they can make their monthly payment.
@steveho9890 You're correct. If people think we are at the height of unaffordability in the u.s... well, they havent seen nothin yet. Canada, Europe, Australia, parts of Asia (Singapore, S. Korea, Japan). Way worse than here.
@@ChristianC-gy1ym That's a lot of words just to say "I don't understand what affordability means."
I feel like it's a good time to get in the market in my area and refi next year when the rates are cut and then I won't be fighting with the rate cut fomo buyers.
Gamble on rates. If you can predict that then there is better investment than on a SFH.
@@garrettp.5018 not much to predict the fed is already talking about it.
@@garrettp.5018lol for real!
@@garrettp.5018 Not much of a gamble. Our economy is cyclical. Rates will trend down. Question is how much and how quickly...
I used to be in that refi camp. But since then I have changed my tune, a bit. Perhaps not a complete 180 from my initial stance. I do think people need to be careful with the notion of refinancing because while I still believe the rate has peaked (or very very close to peaking), and it is bound to trend downward next year and on, I no longer think it will trend down as sharply as quickly. I can see the rate being in the low to mid 6's by Q3 next year.
So, is that worth the fees and the process of refinancing? If it's up to me, I say no.
I'm one of those fortunate ones who is locked into the 3's right now so none of this really pertains to me.
“Don’t wait to buy real estate, buy real estate and wait.”
Will Rogers
YUS! the first comment!
I love how he speaks about cash flow like it can just be found, a little out of touch lol
Buyer be careful don’t buy . Groceries triple, car insurance quadruple, health insurance triple it’s a hell 👿😈👿😈👿
But when ur ready. Don't force it or stretch ur money thin. Stop giving on to FOMO. Or dont.. lol. Idc anymore.
I think most don’t consider a cut in interest rate because inflation drops too low. It’s not only because the economy crashes. Inflation in the 2s plus pressure from an election year can cause a decrease in interest rate leading to increase in inventory in the housing market.
The American dream is showing signs of wear
Unless you are a doctor or professional athlete, do not buy a house!!!
Not a good time to buy
Just need to be extra careful if you own a piece of property now I doubt you’ll regret buying that property 10 years down the line
Yes, give me less competition
Best time to buy as very little competition compared to next year when fed reduces rates and u will see a storm of investors come in with cash
The way I see it you’re never going to accurately predict the market. Waiting can cost you in opportunity costs so I’m going to do a sort of dollar cost averaging strategy and buy every year as long as I find solid deals
im glad you and many others feel this way even after seeing this. less competition for deals.
Where the F do u think u can find cash flow in this market? Bs
Let it keep crashing 😂
Rates are going to drop. Trump 2024 baby! Great video!