Housing correction is possible because of Noob Investors - example

[HER0]

8 minutes ago, Sonu_Patel said:

still logic less anna.. 630k oorikey saving account lo ekunna 5% and average ga $2600 per month vastadi anna.

That house is less than 450K 

[Sonu_Patel]

4 minutes ago, HER0 said:

That house is less than 450K 

https://www.zillow.com/homes/1244-Winterhaven-Dr-Cumming,-GA-30041_rb/2057874832_zpid/

[Sonu_Patel]

1 hour ago, Ravi860 said:

Rent ki mortgage ki calculate cheskuntunnava e market lo… nuvvu konnatle uncle Inka 

ilanti investors unantha kaalam.. ma lanti tenants challaga untaaru ani @perugu_vada anna antunde.

[Sonu_Patel]

1 hour ago, yemdoing said:

patela you are making lot of assumptions here 

 

Property Tax(1%): $6300 -- is it just 1% ?

HOA: $270-- seems very low for a town home in ATL,$450 seems reasonable 

Home Insurance: $1500-- again very low, may be new home kabatti. Real insurance pain starts after few years.

 

How do you know they bought with 7.5% rate and with 20% down ?

investment homes ki mari basics lekunda kontunnara ? I don't think so . May be they took a ARM rates with very low interest rate for now and 5% down. and planning flip the home as soon as they are sure of some profit . In the mean time renting it 

bare minimum vesina anna.. property taxes 1% ani @veerigadu antunde.

[Sonu_Patel]

42 minutes ago, manadonga said:

Anna nuvvu dallaspuram kada mari atlanta chustunavu enti anna 

monna chowrastha lo discussion lo prend told about this.. site lo velli check chesa

[Konebhar6]

1 hour ago, Sonu_Patel said:

Telugu tammullu buying townhomes in suburbs for $630k - 640k and putting on rent for around $2990 .. details loki velithey...

Home value: $630000

Down Payment(20%): $125,000

Interest rate: 7.5%

Property Tax(1%): $6300 

HOA: $270

Home Insurance: $1500

Total Monthly Mortgage Payment: $4444

Asking rent: $2990

whoever is managing this property is straight loosing $1450 every freaking month. Idem logic less investing ra mowa.. This is one of the parameter for housing market correction and eventually they end up putting homes in market for sale or loose money.

links: 

https://www.zillow.com/homedetails/1247-Winterhaven-Dr-1247-Cumming-GA-30041/2056023637_zpid/

https://www.zillow.com/homedetails/1246-Winterhaven-Dr-Cumming-GA-30041/2057569212_zpid/

https://www.zillow.com/b/5965-west-dr-cumming-ga-BSh8FS/

You are missing a couple of important points 

1. They invest thinking property prices will appreciate down the years. 

2. Interest prices will go down the lane which will bring down the monthly payment.

Essentially they are betting on the market going up. If it does, its a good investment and will cover the difference in monthly payments easily down the lane. If market goes down, its prime property for foreclosure and loss of principle paid

[Funkops]

14 minutes ago, Sonu_Patel said:

https://www.zillow.com/homes/1244-Winterhaven-Dr-Cumming,-GA-30041_rb/2057874832_zpid/

608k for attached townhome?

[Sonu_Patel]

21 minutes ago, Funkops said:

608k for attached townhome?

adi just base anna... lot premium, upgrades cost kuda untundi. 

[Sonu_Patel]

26 minutes ago, Konebhar6 said:

You are missing a couple of important points 

1. They invest thinking property prices will appreciate down the years. 

2. Interest prices will go down the lane which will bring down the monthly payment.

Essentially they are betting on the market going up. If it does, its a good investment and will cover the difference in monthly payments easily down the lane. If market goes down, its prime property for foreclosure and loss of principle paid

Anna.. oka 6 months evadu rent ki rakapothe.. bank account gulla autadi annoi.

[megadheera]

1 hour ago, Sonu_Patel said:

still logic less anna.. 630k oorikey saving account lo ekunna 5% and average ga $2600 per month vastadi anna.

There will be equity in long run and also 5% not guaranteed always

[FrankJScott]

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