Questions tagged [real-estate]

A tag for questions on real estate or property.

Filter by
Sorted by
Tagged with
45
votes
7answers
6k views

In general, is it financially better to buy or to rent a house?

I know this differs from country to country, from person to person (depending on how much you already have saved), but I'm curious about the simplest example. Let's say I have little to no money. I ...
42
votes
13answers
8k views

When buying a property without using a realtor as a buyers agent, can you build a discount of the buyer's agent commission into the contract?

I want to buy a home, but I'm not interested in using a realtor as a buyer's agent. I know that in MLS systems, when a realtor lists a house they specify what commission a buyer's agent will be paid. ...
35
votes
8answers
5k views

What's the catch in investing in real estate for rent?

I can see a 2 bedroom, 2 bathroom $100k property on Zillow (est. mortgage $375/mo) next to a university so rent prospects are good. Rent estimate by Zillow, confirmed roughly by Craigslist: $972/mo. ...
22
votes
6answers
5k views

Would it make sense to buy a rental property as an LLC and not in my own name?

I'm considering buying a rental property. Would it make sense forming an LLC and purchasing it in the name of my company, rather than owning it directly? Considerations: pros: I don't want my name ...
13
votes
5answers
2k views

Rent or own, given these circumstances

Option A: $3600 (RENT) for a 3/2.5 condo. Option B: $629,000 (BUY) for a 3/1.75 house. This is in the Los Angeles area. Looking to live in this area for at least a year, maybe more. The house ...
9
votes
2answers
32k views

Construction loan for new house replacing existing mortgaged house?

Let's say I buy a home with an ordinary thirty-year mortgage, intending to renovate the house slowly and live there a long time (ten years at least). Five years into the mortgage, however, I decide I ...
5
votes
1answer
6k views

Construction loans - when do payments begin?

For the sake of round numbers, consider this scenario: $300,000 land purchase $700,000 cost to build a home $200,000 down payment Figure building the home will take 1 year. My question is, for ...
20
votes
7answers
31k views

What is a good rental yield?

If you are thinking of buying a property for investment purposes, what is a good gross yield? I've been told you should take 3 zero's off the price of the property, so if a property is worth 400,000, ...
12
votes
5answers
2k views

How do you value your home when calculating your net worth?

I'm interested in tracking my net worth as a way of measuring progress and I'd like to include home equity in my net worth. How are you tracking home equity? Are you using purchase price? Average ...
12
votes
4answers
2k views

How can one hedge against property price change when buying a home?

Let's say I want to buy a home, with intent to sell it down the road ( < 10 years). If I want to minimize my exposure to market fluctuation, what would be the best way to accomplish that? I ...
11
votes
9answers
1k views

Does it make sense to buy a house in my situation?

I've been in a pretty crappy financial situation. I've described my situation in detail in the past and I am greatful for all the great advice I have received here. Since asking that question 8 ...
6
votes
6answers
1k views

Is being a landlord a good idea? Is there a lot of risk?

A few days ago I asked a way to generate a passive income. It seems the best I can expect is about 2k from a 50k invest at a low risk. However, if I can buy a house for 150k and rent it out, I can ...
5
votes
1answer
2k views

What risks am I taking if my well-off close friend is asking to use my credit to flip a property?

I have very good credit that I've worked hard to obtain. My friend has flipped a few properties and made some good money doing so. He wants to pay me a fee along with any taxes I'll endure if I put a ...
19
votes
2answers
703 views

Is selling your house without an agent worth the hassle?

There have been numerous "for sale by owner" signs appearing recently. This seems like a convenient way to reduce the commission charged by Real Estate agents but I have heard that this is still a "...
12
votes
3answers
26k views

If I sell my house, will I have to pay taxes on the profit?

I am in the United States, in Colorado. I purchased a house in July of 2013. It was in poor condition, so I spent the first two months repairing things before moving in. Now, 11 months after moving ...
6
votes
2answers
28k views

Tax considerations for selling a property below appraised value to family?

I own a property that recently appraised for $350,000 in the state of Maryland that I purchased for $300,000 7 years ago. I wish to sell this property for a value of $240,000. Here are my questions: ...
5
votes
3answers
374 views

How can a REIT fund grow when it has to distribute 90% of their taxable income?

You can't grow that much if you invest only 10% of what's left after dividends
4
votes
2answers
324 views

Hidden downsides of real-estate property tax appeal?

My real-estate lawyer sent me an offer to file a tax appeal on my behalf. I will have to pay some percentage from the tax savings if appeal is successful and my taxes are reduced and won't have to pay ...
3
votes
1answer
137 views

What's the tax on a hobby orchard?

Say I harvest crop as a hobby on my land, and it's less than an acre. What's the tax on the crop income? In California.
1
vote
2answers
2k views

Buying property in India : FBAR declaration.

I am on H1b visa in USA and thinking about buying property in India. If I buy any property in india,do I need to report my property in USA income tax return, FBAR or anywhere else? Do i need to pay ...
1
vote
3answers
448 views

How to shop for mortgage rates ?

I have already been prequalified with 3.8% (but I am sure I can do better :)). Now, I am about to make an offer on a house. So, once the seller accepts my offer, how do I rate shop ? Do I need to do ...
61
votes
10answers
19k views

Why does it seem the best way to make a living is to invest in real estate?

I can't get past the idea that, if you work well in your job, you may get laid off or fired, and companies do not like to hire you when you get past the age 45 or 50. But if you invest in some houses ...
32
votes
8answers
15k views

Math Behind Buying a House

Is following calculation correct? I spend $1500/month on average on rent. If I rent for the next 3 years, I would be spending $54,000. I can buy a house for $220,000 today and spend the same amount ...
57
votes
10answers
26k views

When is it better to move - before or after a housing bubble bursts?

My husband and I currently own our home and are looking at upgrading to a bigger house in the next year or two. The housing market right now in our area (US East Coast city) is doing really well, and ...
31
votes
9answers
10k views

Is it a good idea, to buy a flat with a loan, whilst using the rent to pay it off? [closed]

I have been thinking about taking a loan to buy a flat which I would rent out. My reasoning is that the loan would be paid off over time by the renters. After perhaps 30 years, I'd be left with a ...
19
votes
8answers
7k views

Should I wait until I have a 20% down payment to buy a home?

With an FHA loan that only requires a 3.5% down payment, I'm able to buy a home right now and comfortably afford the monthly payments. However, I know that means I'll pay PMI and more interest over ...
22
votes
5answers
665 views

When is it better to rent and when is better buy in a certain property market?

I've been told the average rent for a house should be the house price, minus 3 zero's and that should be how much it should be a week, which I think works out to be about 5% of the house price per ...
56
votes
10answers
15k views

Is it true that real estate prices mainly go up?

My father once told me that real estate was a good business because the population is always going up, therefore more housing is needed, and the space on earth remains the same, so house/apartment ...
26
votes
16answers
10k views

How to best invest 90,000 EUR with zero knowledge in investing?

I have 90,000 EUR and difficulty figuring out what to do with it. This money is in a savings account with an interest rate of only 0.05%. Here in Netherlands, I pay around 600 EUR each year on this ...
94
votes
8answers
24k views

How to deal with the credit card debt from family member that has passed away?

My father recently passed away and had some considerable amount of debt on his credit cards. House and credit card were in the deceased’s name only. The state that is happening in is New Jersey. In ...
30
votes
4answers
8k views

'Gifting' a house in the UK

In UK news recently, there has been much talk about so called 'dementia tax', that is, the government using assets (such as property) to pay for social care in old age. Whether or not people should ...
11
votes
4answers
4k views

Rental Property: What is considered decent cash flow? (with example)

I'm looking into buying my first rental property in Syracuse, NY. I'm looking at this one: http://www.zillow.com/homedetails/317-Wellesley-Rd-Syracuse-NY-13207/31678383_zpid/ The current list price ...
7
votes
6answers
2k views

Does the growth of home value benefit from compound interest?

I read Investopia's definition and my take away is that compound interest applies to an investment that yields some return on a regular basis and that yield is reinvested in that instrument. If I have ...
7
votes
4answers
853 views

What are my investment options in real estate?

In a nutshell, I'm 21 and I'll be starting a job soon which will give me a fair amount of spare income, which I would like to look into investing. What are my options here? I'm considering investing ...
4
votes
1answer
345 views

No debt. Any advice where to invest saved money and what to invest in after maxing out 401k? [duplicate]

My situation: I'm 24, single, and I live with my parents in the United States I have no debt and I have 100k in a savings account I have a 90k job I am currently maxing out my 401k I have no ...
26
votes
10answers
16k views

Is giving my girlfriend money for her mortgage closing costs and down payment considered fraud?

My girlfriend is in the process of buying a home. We're not married, common-law or otherwise. I was planning to help her pay for the closing costs and down payment, with my contribution being about $...
25
votes
2answers
6k views

I cosigned on a house for my brother

I cosigned a mortgage for my brother 9 years ago. I was young and he convinced me that it would be good for my credit. Recently my credit dropped 70 points because he was 60 days late on the payment. ...
4
votes
5answers
277 views

How do I create the illusion I don't have anything valuable, so thieves wouldn't want to steal from my home?

There's a question on DIY SE asking how to secure the house from intruders. One of the answers is to not have anything valuable or at least to not appear to. Can the illusion that a person doesn't ...
0
votes
2answers
314 views

Math Behind Buying a House with Calculations

This is a follow-up question to Math Behind Buying a House As many answers pointed out, my calculations in the previous question were flawed. What do you think about the updated calculations below ...
19
votes
7answers
2k views

Is Real Estate ever a BAD investment? If so, when?

Even in a bad market, over 30 years won't the value of Real Estate always go up? Is it always a sure bet? If not, what should an investor or buyer consider?
16
votes
9answers
1k views

Why can't house prices be out of tune with salaries

I have been arguing for years with my colleagues that having house prices go up 10% pr year and salaries only 3-4% means that we have less money, not more. They in turn say that its not a problem ...
16
votes
8answers
14k views

Can I back out of a house purchase after the inspection if the offer stipulates “as is”?

I made an offer on a house in the state of Arkansas, and got a counter offer, and now I am about to accept it. However, there is one thing that bugs me: the counter offer requires me to buy the house ...
9
votes
5answers
21k views

Landlords: what's the maximum amount of time to allow a guest of tenant to stay in a rental?

As the title says, but with these details: I have a rental unit; this situation has come up with a potential tenant. This tenant has an adult daughter, who, the tenant volunteered, has an unstable ...
8
votes
4answers
1k views

How to calculate the total return on buying a home?

How to calculate the total return on buying a home, considering things such as : home value down payment constant mortgage payment (going from mostly interests at the beginning to mostly principal at ...
7
votes
2answers
7k views

Split buying a house 3 ways. How do I approach this?

A couple of unrelated friends and I are interested in buying a condo and splitting it three ways. We will be using it interchangeably as a rental property as well as living in it ourselves sometimes. ...
7
votes
6answers
681 views

Is it a good idea to buy a house with a low ARM monthly payment, then rent it out?

I'm looking around for houses in my college town to rent to others, and I've found a decent 4-bedroom house with an interest-only 5 year ARM monthly payment (of $1700). Assuming I have enough to ...
6
votes
2answers
331 views

How can one offset exposure created by real-estate purchase?

Is there any viable way to offset exposure introduced by buying a real-estate (house/land)? By "way to offset" I mean financial instruments (like derivatives) that you can buy to decrease the risk of ...
5
votes
4answers
373 views

Are real estate prices memory-less?

Stock prices are claimed by some/most to be "memory-less" - there is no evident correlation between past performance of a stock, to its future performance. Do real estate prices exhibit similar ...
4
votes
1answer
230 views

For how long do you need to commit to staying in one city to make purchasing a piece of real estate worth it?

I am considering purchasing a piece of real estate in a major metropolitan area in the US, to avoid spending money on rent. However I'm not sure if I want to stay in this city forever and might move ...
3
votes
2answers
344 views

Is there any instrument with real-estate-like returns?

I want to shift part of my portfolio away from stocks into real estate. I've found that if I bought real estate directly I could expect about 10% in yearly returns. The problem with buying physical ...