Real estate thread

[MartyMcFly]

Buying an apartment in London does gain you a lot of bragging rights. Living in London seems to be a dream for people all over the world.

London’s tiniest flat goes on sale

London’s smallest flat is to go on sale at auction, with a starting price of £50,000

www.rt.com

 

[Thomas More]

Buying an apartment in London does gain you a lot of bragging rights. Living in London seems to be a dream for people all over the world.

London’s tiniest flat goes on sale

London’s smallest flat is to go on sale at auction, with a starting price of £50,000

www.rt.com

I would consider this to save money, if I could also build equity and cash out later. It's better than a standard two person college dorm room in the 80s.

 

[MartyMcFly]

I would consider this to save money, if I could also build equity and cash out later. It's better than a standard two person college dorm room in the 80s.

I actually agree with the idea of living here if you are single to save money. The USA actually could use more small apartments like this (although maybe not so extreme). The issue is that the price is so high for living in a large closet. The reason some people need to live like this is because a few wealthy people are cornering the market and worse is that many of them are wealthy foreigners.

Some nations like Thailand ban foreigners from buying land. I used to think this is wrong, but now I understand why they have this law. It is wrong to place the interests of wealthy foreigners ahead of citizens.

 

[Itsbrokeagain]

Lots of good info and plans of attack in here. Unfortunately where I live (Long Island) there is a huge shortage of homes and everything is in a bidding war. We had over 20% saved and closing costs but decided to get rid of my wife's student loans (147k worth) and be debt free.

We've been rapidly accumulating savings again but at the rate housing is running up we're just buying time. Fortunate to have an entire apartment at her parents and only pay them $1000/month which includes them watching our 3yr old daughter whenever both of us happen to be working.

You would think with interest rates going up it would slow the flow but my agent would find these great starter homes and then update me to explain there's 3 contractors waiting to pay above asking all in cash before the first actual person who wants to buy and they have 10-15 over asking.

If it doesn't slow down or crash, might just end up taking my career to Florida where my skill set is in high demand as is my wife's.

 

[joost]

What about Russia now that the ruble crashed?

Anyone familiar with the Saint Petersburg market? I'm interested in small apartments (studio, 1 or 2 beds max) in downtown area?

 

[road_runner]

What about Russia now that the ruble crashed?

Anyone familiar with the Saint Petersburg market? I'm interested in small apartments (studio, 1 or 2 beds max) in downtown area?

How do you plan to bring money into Russia, crypto? - do you have a way of cashing out/banking such large sum in Russia?
I would not bet on it unless you have a trusted contact on the ground who'd cash your crypto
Also in case you change your mind later, it's impossible to get money out of Russia.

Understand very hard times are coming onto Russia and if it's going to be anything like the "90s" - aka cartel rule times - people were losing their real estate easy, because papers were forged by cartel and some even disappeared over this.

 

[joost]

I could send the money to a bank in Finland and take 200€ bills to Saint Petersburg (ferry?). Even in parts if necessary. If you could buy an apartment in a good location for cheap, why not?

I guess a LLC or such would be advised to hold assets. I know you can't take money out but I'm planning on moving to eastern Europe for retirement.

 

[road_runner]

I could send the money to a bank in Finland and take 200€ bills to Saint Petersburg (ferry?). Even in parts if necessary. If you could buy an apartment in a good location for cheap, why not?

I guess a LLC or such would be advised to hold assets. I know you can't take money out but I'm planning on moving to eastern Europe for retirement.

First off, there're no bargains there now, apartments went up in prices instantly once sanctions hit.
People can't store money in banks anymore, they rushed into real estate.

Man realize the risk involved there, many Russians are desperately scrambling to get out right now and they can't get their funds out. The property rights never been respected much over there too, let's just say if you own an apartment it can be taken away when hard times hit, you'd have to live there and watch it.
You'll need a financial way to interact with property management company, also, to pay monthly utility expenses (not optional) or collect rent, but realize property management will be the first ones ratting out absentee owners to whatever criminal element interested in stealing properties. And the payment ways are cut off now. These companies don't take crypto.
In crypto thread you reminded me of risks of cash transactions (being followed, etc). Realize these risks are 100X in Russia versus anything in the US, just like the risk of losing property ownership there if you don't watch it like a hawk locally.

You'll have to declare money to customs. Traveling with cash in Russia will be very unsafe. Do you have reliable guard company?
Not just criminals, cops might stop and loot you, happens all the time.
Bank will freeze your euro if you put them in a bank, instantly.
You might open a safe deposit box to store euros - but these might be unsafe and might be frozen by the government any moment.
There're some of the heaviest internal capital controls in the world being imposed now.
Importation of cash euro to Russia is illegal now, but there's personal needs exception when traveling to Russia, so this might fall under exception.

Also, borders might be shut down any moment. And that train from Finland to SPB - can't buy a ticket without Russian citizenship I think, and to get back out need Western vaxx 2 doses for that train. Remaining flights are being cancelled/discontinued. Also might have extra interest from special services unless you're a local citizen. When flying out, they often search laptops and phones and won't let one board unless you give unlock code. Meh, I wouldn't recommend such trip to anyone.

 

[road_runner]

I could send the money to a bank in Finland and take 200€ bills to Saint Petersburg (ferry?). Even in parts if necessary. If you could buy an apartment in a good location for cheap, why not?

I guess a LLC or such would be advised to hold assets. I know you can't take money out but I'm planning on moving to eastern Europe for retirement.

To add, a new development: Russia just banned anyone with citizenship or residency in "hostile countries" (the list is a bunch of NATO countries, probably all of them) aka "hostile persons" from doing restate transactions in Russia, with local residents. Same applies to any local company with involvement of such persons (speaking of LLC) and to companies from "hostile countries". This includes own dual citizens too. Which means any such foreign-affiliated person who owns real estate there can not even sell it anymore... This would require some kind of government permit, which I don't think would be easily granted. They might allow people to unload stuff they owned for a long time, like personal flats, if they're leaving the country, I sure hope they would. If you're NATO-affiliated will be glad you didn't head out there with cash for sure.... Anyway, I wouldn't be surprised if foreign ownership would be banned altogether. These decisions are usually swift and sudden over there.

 

[Man As Corporation]

For anyone who owns or is thinking of owning property in Ireland. I wonder how long before this spreads to other countries.

Private property no longer protected in Ireland. Housing Act amended “for the common good” – Investment Watch

www.investmentwatchblog.com

 

[NoMoreTO]

SW Ontario

I visited a friend who was speaking absolutely astounded at the price of a recent sale in small town ontario down the street, a 3 bedroom house, very "average" looking just went for $1 Million Canadian. This is a house that would have sold for 300K CAD six or seven years ago.

I had dinner with a friend who is a realtor. He explained that in a 2nd tier Canadian City, even within the past 3-4 months, properties were selling for 10-20% more.

The interest rates in Canada are moving up, so things might be evening out, but prices are incredibly high right now.

The Canadian Real Estate Market is in a serious bubble. It's hard to imagine, even with increasing demand for immigrant housing, how the price of real estate can not drop or see a leveling off. Prices are incredibly high and unaffordable. People around here are looking at prices in the US and rubbing their hands together like grabblers based on ontario pricing.

 

[Max Roscoe]

For anyone who owns or is thinking of owning property in Ireland. I wonder how long before this spreads to other countries.

Private property no longer protected in Ireland. Housing Act amended “for the common good” – Investment Watch

www.investmentwatchblog.com

The US already has this (worse, actually). The Irish law says they can take property for the public/common good.
Since 2005 in the Kelo vs City of New London case, the courts decided government in the US has the right to take land for *private* or for-profit use.

Kelo v. City of New London​

In Kelo v. City of New London (2005), the plaintiff, Kelo, sued the city of New London, Connecticut for seizing her property under eminent domain and transferring it to New London Development Corporation. Susette Kelo and others in the area had refused to sell their private property, so the city condemned it to force them to accept compensation. Kelo alleged that the seizure of her property was a violation of the “public use” element of the Fifth Amendment takings clause because the land would be used for economic development, which is not solely public. Kelo’s property was not “blighted,” and it would be transferred to a private firm for economic development.


In a 5-4 decision delivered by Justice Stevens, the court upheld aspects of its ruling in Berman v. Parker and Hawaii Housing Authority v. Midkiff. The court ruled that redistributing the land was part of a detailed economic plan that included public use. Even though the transfer of land was from one private party to another, the goal of that transfer–economic development–served a definitive public purpose. In this case, the court further defined “public use” by explaining that it was not confined to literal usage by the public. Rather, this term could also describe public benefit or general welfare.

This has been upheld as recently as last year.

Bloomberg - Are you a robot?

Supreme Court Refuses to Curb Government Power to Take Land​

• Court rebuffs Chicago man who lost land to chocolate maker
• Three justices would reconsider Kelo eminent-domain case

 

[BeatUpTruck]

SW Ontario

I visited a friend who was speaking absolutely astounded at the price of a recent sale in small town ontario down the street, a 3 bedroom house, very "average" looking just went for $1 Million Canadian. This is a house that would have sold for 300K CAD six or seven years ago.

I had dinner with a friend who is a realtor. He explained that in a 2nd tier Canadian City, even within the past 3-4 months, properties were selling for 10-20% more.

The interest rates in Canada are moving up, so things might be evening out, but prices are incredibly high right now.

The Canadian Real Estate Market is in a serious bubble. It's hard to imagine, even with increasing demand for immigrant housing, how the price of real estate can not drop or see a leveling off. Prices are incredibly high and unaffordable. People around here are looking at prices in the US and rubbing their hands together like grabblers based on ontario pricing.

I’ve been reading about for the imminent burst of Canada’s housing bubble for the last 15 years. It hasn’t happened yet and it’s hard to see it happening since I just read an article this morning saying Ontario needs to double the amount of houses being built each year for the next ten years, in order to satisfy demand.

 

[MartyMcFly]

I’ve been reading about for the imminent burst of Canada’s housing bubble for the last 15 years. It hasn’t happened yet and it’s hard to see it happening since I just read an article this morning saying Ontario needs to double the amount of houses being built each year for the next ten years, in order to satisfy demand.

This would be easy to do if they were willing to reduce regulations. You should see how fast housing is built in places that are organized like China. Even Eastern Europe and the Soviet Union built apartments fairly quickly when they were poor in the 1950's and 1960's.

 

[NoMoreTO]

I’ve been reading about for the imminent burst of Canada’s housing bubble for the last 15 years. It hasn’t happened yet and it’s hard to see it happening since I just read an article this morning saying Ontario needs to double the amount of houses being built each year for the next ten years, in order to satisfy demand.

That's pretty interesting. I'd be interested in reading the article.

I'm considering selling a rental property in a university town. I'm building a house at the moment and not sure if I want to hold multiple mortgages through this. Prices feel crazy high. I had thought that I would finish my build and see where I'm at at that moment.

Also, part of it is I'm kind of tired of the landlord game, where once it buttered my bread, I'm getting more to an age where I find the young people who rent very annoying. Also, I'm concerned longer term about regulations and other BS. It's an hour drive from my place and I'm the handyman so it kind of gets old.

 

[BeatUpTruck]

Interestingly the article backs up exactly what Marty Mcfly said - the need to get rid of restrictions.

“How does a province that’s averaged 70,000 new homes annually over the past five years more than double that output every year for the next decade? By tackling the biggest barrier to building more homes — municipal governments’ role as gatekeepers to new housing supply. “Too much land is tied up by outdated rules,” the task force report observes.”

Opinion: Let a thousand four-plexes bloom: How private property rights can fix Canada's housing crisis

 

[cosine]

The population is still growing, but mostly due to massive fertility rates in poor countries, then immigration to the West.

With a growing population, asset inflation in real estate simply makes sense. It's like musical chairs; you don't want to be left without a seat.

If/when countries in Asia, Middle East, and Africa all taper their fertility rates, then the population collapse that's started in the West will really catch up; the immigration wave will cease, and I don't see how real estate doesn't collapse at that point. No idea what year that reality will hit.

 

[MartyMcFly]

Jeff Bezos still needs more money it seems. I wonder when he will have enough to be satisfied. I don't see how this will help keep home prices under control.

Jeff Bezos Backed Real Estate Investment Platform Fully Funds Two Properties In Just Two Hours

The real estate investment platform Arrived Homes launched its latest batch of new offerings today; six rental properties that retail investors can buy into with as little as $100. The offerings went live on the platform at 11:00 AM EDT on April 5, 2022, and two of the properties were fully...

finance.yahoo.com

 

[MartyMcFly]

The ban needs to include foreign workers and students at least until they get permanent residency. Otherwise many wealthy people will just become students (or send their kids over) and buy homes while studying in Canada. I could see allowing them to buy condos but not land as a compromise which is what some other countries do.

Canada to Ban Foreigners From Buying Homes as Prices Soar

 

[Thomas More]

That's pretty interesting. I'd be interested in reading the article.

I'm considering selling a rental property in a university town. I'm building a house at the moment and not sure if I want to hold multiple mortgages through this. Prices feel crazy high. I had thought that I would finish my build and see where I'm at at that moment.

Also, part of it is I'm kind of tired of the landlord game, where once it buttered my bread, I'm getting more to an age where I find the young people who rent very annoying. Also, I'm concerned longer term about regulations and other BS. It's an hour drive from my place and I'm the handyman so it kind of gets old.

I'm renting a property on airbnb, and I prefer it exactly because I fear problems with regular renters. I have heard of airbnb guests trashing a house, but I haven't ever heard of them stopping rent payments, refusing to move out for months with court protection, then trashing the place when they finally do leave.