"100% of people who do not save money do not have any!"--Dave Ramsey

[JSH]

Originally Posted by hayden55

Here is a crazy one i saw sell recently:
https://www.zillow.com/homedetails/3...72870086_zpid/

Crazy is right - CRAZY CHEAP!. Just kidding.

It might be expensive for your area but that is easily a $450K to $550K house in my zip code.

[hayden55]

Originally Posted by JSH

Crazy is right - CRAZY CHEAP!. Just kidding.

It might be expensive for your area but that is easily a $450K to $550K house in my zip code.

This is why I don't wanna move outside of my state to a big city. lol

[JSH]

Originally Posted by hayden55

This is why I don't wanna move outside of my state to a big city. lol

It cuts both ways. Yes, expensive housing markets are harder to buy into but when it comes time to sell and leave the area you can go just about anywhere, pay cash, and likely have money left over. We are seeing that in the Portland market today where people move from California for the "cheap" housing in Oregon. The house next to use was like that and the new neighbors spent about half of the proceeds from selling their house in LA to buy their current house with cash. They then refinanced it but having cash on hand is a big help when bidding on a house.

Our house has almost doubled in value in the 6 years we have owned it. When we sell in a few years we will likely use the proceeds to buy 2-3 rental properties in cheaper areas. (Rents are too low in the Portland area to get a good return)

It helped that we slowly stepped up the ladder for housing costs. We went from rural TN to Birmingham, AL and had to increase or budget 50%. Then we went from AL to Portland, OR and had to increase it by 50% again. In both cases my wife as dead set against increasing the budget so we had to spend a Saturday visiting houses in our original budget to see just how crappy a house that bought in the new location.

[Xist]

I am sure that dang Californians are buying Phoenician property and dang Phoenicians are buying White Mountain property.

[hayden55]

Originally Posted by JSH

It cuts both ways. Yes, expensive housing markets are harder to buy into but when it comes time to sell and leave the area you can go just about anywhere

Very true. If you can afford to enter the market and not rent the larger cities are a great way to go if you plan to retire back to a smaller area. This is somewhat my plan with this city.

[JSH]

Originally Posted by Xist

I am sure that dang Californians are buying Phoenician property and dang Phoenicians are buying White Mountain property.

There is a name for when wealthier people moving into an area, drive up the cost of living, and eventually price out the locals. It is called gentrification and has been happening for centuries all over the world.

[redpoint5]

A local homeowner is locked into their mortgage, and it doesn't matter how expensive other homes around them become because their principal is already locked in.

The only way for locals to no longer afford their home would be if their budget was so thin they couldn't afford the increasing property tax, which is a relatively minor proportion of one's annual income.

Mortgage payments get easier over time because they are a fixed rate, and inflation tends to adjust incomes up over time. A $1,000 monthly mortgage payment 20 years from now should be a lot easier to pay. The increasing property taxes should somewhat be washed out by inflation.

It's a pretty good problem to have that one's home appreciates in value so drastically that it becomes burdensome to afford the property tax.

[Xist]

Is it gentrification to replace mobile homes with real houses?

[JSH]

Originally Posted by redpoint5

A local homeowner is locked into their mortgage, and it doesn't matter how expensive other homes around them become because their principal is already locked in.

The only way for locals to no longer afford their home would be if their budget was so thin they couldn't afford the increasing property tax, which is a relatively minor proportion of one's annual income.

Mortgage payments get easier over time because they are a fixed rate, and inflation tends to adjust incomes up over time. A $1,000 monthly mortgage payment 20 years from now should be a lot easier to pay. The increasing property taxes should somewhat be washed out by inflation.

It's a pretty good problem to have that one's home appreciates in value so drastically that it becomes burdensome to afford the property tax.

A. Lots of people rent
B. It is a generational process when kids can no longer live in the neighborhood they grew up in.
C. There is more to cost of living than housing. Wealthy people have more expensive tastes in pretty much everything. More expensive stores and services also come with those wealthier customers. The local bar becomes a Taproom with $6 craft brews instead of $2 Bud Light. The barber shop becomes a salon. The grocery store starts carrying organic and gluten free everything. The local pizza place is bought out and replaced by one with $22 pizzas. $15 for a burger becomes the norm. Etc, etc.

(A basket of fries, 14 inch pizza, and two beers each is $60 with tip at our local brew pub.)

[Piotrsko]

Originally Posted by JSH

(A basket of fries, 14 inch pizza, and two beers each is $60 with tip at our local brew pub.)

May or may not be poutine, but $60 for that here in a Reno brewpub would be cheap. Is poutine more expensive? Wasn't in Montreal.

Same thing in a dive pizza place down the street is $35, but their beer selection is more limited to IPA's