Housing market

[KnappShack]

At sub 3%, I wish I could get a 45 year mortgage. I have a very healthy emergency fund and would like to use the extra money to invest more.

Sub 3% when inflation is at or above that number is amazing.

An investor with any type of discipline or luck can get a better return.

This is the first house I ever financed where I brought money to the table. Now I wish I had that 20% down payment to invest.

 

[iahawks]

Sub 3% when inflation is at or above that number is amazing.

An investor with any type of discipline or luck can get a better return.

This is the first house I ever financed where I brought money to the table. Now I wish I had that 20% down payment to invest.

Yep, sub 3% I'm paying the minimum payment.

 

[KnappShack]

Yep, sub 3% I'm paying the minimum payment.

I made a deal with myself when I bought my first home back in 1999. I told myself that I didn't want to have a mortgage 30 years from that date. No matter where I lived

Now that I'm locked in under 3% on a 30 year term. Not a priority.

 

[mapnerd]

my tax assessed value went from 123,500 to 138,800. HA. im going to protest. has anyone had success protesting? Thanks

You'll have to do it next year though.

 

[RLD4ISU]

Here's a fun little development on my situation. We closed on the sale of our home a couple months ago and have been living in a temp rental until our home build was completed. We coincidentally met the buyer of our home a few days ago. They asked about the new place and we share our current situation about how we had to find a temp location, etc. They get confused and share that they were still paying rent at their apartment because they couldn't get out of their lease. They also shared that they asked their agent if we would be willing to move the close date back and the agent told them that we were not interested. The ideal close date for the the buyer would have been perfect for us but that offer never made it to us. Needless to say, we are not very happy right now!

Sounds like the realtor's priority was the commission check.

I hope you happily share that information (and who the realtor was) to anyone in your area that wants to buy or sell a home.

 

[DeereClone]

Farmland being bought up in Iowa buy big money from Hollywood and Tech Industry also hearing. The gobbling of assets is becoming sickening at this point.

This has always been a thing. Ted Turner didn't start buying his 2 million acres of land last year. We are used to competing with them for land - I had to outbid a retiring tech executive from Seattle at a farm auction this winter. He bid over the phone and asked the auctioneer for my contact info after the sale. He called me to congratulate me on my purchase and we had a great conversation.

 

[SCNCY]

I assume rich people are buying farm land because of the tax incentives it allows?

 

[BCClone]

At sub 3%, I wish I could get a 45 year mortgage. I have a very healthy emergency fund and would like to use the extra money to invest more.

For people like you it works, most will spend and not invest and have a mess. Besides, i figured you would get more tats instead. Hawkeyes on your belly wasn’t enough I saw.

 

[DeereClone]

I assume rich people are buying farm land because of the tax incentives it allows?

No, most are buying land to cash rent out for income, and in that situation there really aren't any tax "benefits." There is more tax flexibility if you actually operate a farm and raise a crop vs just renting your land out.

They want a stable return - buy for $10,000 and rent out for $300/ac = 3% ROI + long term appreciation.

 

[BCClone]

This isn't anything new...

America’s Biggest Owner Of Farmland Is Now Bill Gates

The Microsoft billionaire has been quietly building a 242,000-acre portfolio of agricultural land across 18 states.

www.forbes.com

Does Iowa still have the farmland/outside corp rule? Why so many insurance companies are HQd in DEs moines.

 

[BCClone]

No, most are buying land to cash rent out for income, and in that situation there really aren't any tax "benefits." There is more tax flexibility if you actually operate a farm and raise a crop vs just renting your land out.

They want a stable return - buy for $10,000 and rent out for $300/ac = 3% ROI + long term appreciation.

Yeah, I’ve done the math several times. Unless you are buying for generational level production, stocks will return you much better than farmland.

 

[DeereClone]

Does Iowa still have the farmland/outside corp rule? Why so many insurance companies are HQd in DEs moines.

There are rules against institutional land ownership in Iowa. It seems like some are getting around this somehow, but the rule makes it much more difficult for institutional investors to buy land here vs Illinois.

 

[SCNCY]

Yeah, I’ve done the math several times. Unless you are buying for generational level production, stocks will return you much better than farmland.

Assume, with what I learned from above, that its more about diversification. Yeah, you can make more in stocks, but when there is a recession, stocks can fall hard. History would say that real estate does not tend to have those frequent and large fluctuations in value. Plus, if you rent real estate out, you get consistent cashflow, just like why rich people also like dividend paying stocks.

 

[BCClone]

Assume, with what I learned from above, that its more about diversification. Yeah, you can make more in stocks, but when there is a recession, stocks can fall hard. History would say that real estate does not tend to have those frequent and large fluctuations in value. Plus, if you rent real estate out, you get consistent cashflow, just like why rich people also like dividend paying stocks.

10 years ago I could get you $500/acre. 3 years ago it was $175-200. RE taxes increased during that time. Farmland now in my area is $190-240. It’s not as consistent as housing rentals. House you can depreciate most, farmland is 100-1000/acre plus any buildings. 2 different birds.

 

[Tri4Cy]

Sounds like the realtor's priority was the commission check.

I hope you happily share that information (and who the realtor was) to anyone in your area that wants to buy or sell a home.

To make things worse we just received a marketing post card from the agent. It was a general mailer to everyone in the neighborhood. It had pictures of our home on it and bragged about how they brought the buyer to the table and got full asking price. I contemplated making flyers for my counter claim. She wasn't even the selling agent but seems to be playing it off like she was.

 

[SoapyCy]

This isn't anything new...

America’s Biggest Owner Of Farmland Is Now Bill Gates

The Microsoft billionaire has been quietly building a 242,000-acre portfolio of agricultural land across 18 states.

www.forbes.com

I have 5% in FPI and 5% in LAND. $20,000 in farming REITs in my Roth

 

[mynameisjonas]

Here's a fun little development on my situation. We closed on the sale of our home a couple months ago and have been living in a temp rental until our home build was completed. We coincidentally met the buyer of our home a few days ago. They asked about the new place and we share our current situation about how we had to find a temp location, etc. They get confused and share that they were still paying rent at their apartment because they couldn't get out of their lease. They also shared that they asked their agent if we would be willing to move the close date back and the agent told them that we were not interested. The ideal close date for the the buyer would have been perfect for us but that offer never made it to us. Needless to say, we are not very happy right now!

So many realtors suck. Easily more than 50%.

 

[RLD4ISU]

To make things worse we just received a marketing post card from the agent. It was a general mailer to everyone in the neighborhood. It had pictures of our home on it and bragged about how they brought the buyer to the table and got full asking price. I contemplated making flyers for my counter claim. She wasn't even the selling agent but seems to be playing it off like she was.

WOW. She's a real winner.

 

[Gunnerclone]

when very powerful people say you will own nothing and be happy, believe them, they will get the lower middle class first, then the middle middle class, then the upper middle class. no one can run forevor.

I already own a house.

 

[SCNCY]

To make things worse we just received a marketing post card from the agent. It was a general mailer to everyone in the neighborhood. It had pictures of our home on it and bragged about how they brought the buyer to the table and got full asking price. I contemplated making flyers for my counter claim. She wasn't even the selling agent but seems to be playing it off like she was.

In Newport, RI, there is a real estate agent who is pretty much the go to person for the expensive mansions (or cottages as they are historically called locally) for all the rich people. She does the same thing when she sells these multi-million dollar homes, but she sends them to everyone in Newport, many of which don't even have the money to buy such a home. As if the local news paper isn't enough to brag about her work (when ever a big home sells, the news paper usually has a small story about it).

As a reference, I am talking about the homes on Ocean Drive.