Author Topic: The Future of Lakewood  (Read 41195 times)

Offline aygart

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Re: The Future of Lakewood
« Reply #315 on: July 06, 2016, 12:08:55 PM »
So?
They are houses bought with the intention of renting them out at first. How does that show a bubble regarding sales?
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Offline HowYaDoin

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Re: The Future of Lakewood
« Reply #316 on: July 06, 2016, 12:10:21 PM »
They are houses bought with the intention of renting them out at first. How does that show a bubble regarding sales?
+1 and of course they list before they close, they want a tenant from day 1. Some people also buy with intention of living in basement at first, happens all the time in this town

Offline cholent

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Re: The Future of Lakewood
« Reply #317 on: July 06, 2016, 12:15:10 PM »
How do you explain the 6+ Duplexes for rent available in cedarwood hills?

Is this investors who cannot sell, or buyers who cannot afford the mortgage?

Either way the bubble is confirmed imho.

http://masaumatan.com/MasaRentals.pdf
I agree there is a bubble, but this is far from proof. Every time a new development is built there are multiple units available for rent, as many people buy while planning to live in their own basements. The question is how many houses will still be available to rent there in a few weeks from now
Don't ask stupid questions and you won't get stupid answers

Offline Super Speed

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Re: The Future of Lakewood
« Reply #318 on: July 06, 2016, 06:23:15 PM »
There are also developers/investors who keep a few houses for themselves, which they rent out, and then they "break even" tax wise on the project.

Offline grodnoking

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Re: The Future of Lakewood
« Reply #319 on: July 06, 2016, 08:15:12 PM »
There are also developers/investors who keep a few houses for themselves, which they rent out, and then they "break even" tax wise on the project.
"Tax wise"?
I'm not who you think I am.

Offline grodnoking

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Re: The Future of Lakewood
« Reply #320 on: July 06, 2016, 08:18:04 PM »
How do you explain the 6+ Duplexes for rent available in cedarwood hills?

Is this investors who cannot sell, or buyers who cannot afford the mortgage?

Either way the bubble is confirmed imho.

http://masaumatan.com/MasaRentals.pdf
Means nothing. There may be a huge surge in appartments, but there is also a huge amount of people moving in. These apartments move fast.
I'm not who you think I am.

Offline David Smith

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Re: The Future of Lakewood
« Reply #321 on: July 06, 2016, 08:18:46 PM »
"Tax wise"?
On the books. Under the table they're raking it in.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline churnbabychurn

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Re: The Future of Lakewood
« Reply #322 on: July 06, 2016, 08:25:13 PM »
Means nothing. There may be a huge surge in appartments, but there is also a huge amount of people moving in. These apartments move fast.
I'm talking upstairs units for rent.

I didn't even mention the dozens of apartments for rent...

Offline cholent

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Re: The Future of Lakewood
« Reply #323 on: July 06, 2016, 08:52:39 PM »
I'm talking upstairs units for rent.

I didn't even mention the dozens of apartments for rent...
Many people buy but don't plan on moving upstairs immediately.  This way they're paying the mortgage down till they feel the need to move up
Don't ask stupid questions and you won't get stupid answers

Offline grodnoking

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Re: The Future of Lakewood
« Reply #324 on: July 06, 2016, 09:00:41 PM »
I'm talking upstairs units for rent.

I didn't even mention the dozens of apartments for rent...
Still plenty of people moving into Lakewood, who wish to rent untill they find a place to buy. And plenty of people who like renting in general. You'll see the bubble when prices become abnormally low.
Currently lakewood has a 14 year rental rate (where you rent the house for 14 years and make enough to cover the price of the house ((but not the mortgage))) which is very long for an average market, but its always been like that. When it hits 16 you'll know we're in trouble.
Also if the price of house stops climbing (meaning house bought this year stay the same price for many years) then many house owners expecting the rent to cover a large amount of the mortgage will never get enough.
« Last Edit: July 06, 2016, 09:04:57 PM by grodnoking »
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Offline churnbabychurn

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Re: The Future of Lakewood
« Reply #325 on: July 06, 2016, 09:03:21 PM »
Many people buy but don't plan on moving upstairs immediately.  This way they're paying the mortgage down till they feel the need to move up
Right, cuz the cannot afford not to rent it out. = Taking out a mortgage way out of their league

Offline yitzf

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Re: The Future of Lakewood
« Reply #326 on: July 06, 2016, 09:04:12 PM »
On the books. Under the table they're raking it in.
I know is fun to bash but that has nothing to do with it.

 The cost to build the rental units goes into the cost of the project but if they don't sell the units then they don't recognise that revenue. For example if they build 10 units and it costs $3 each and they can sell for $5, if they sell all they make $20 profit ($50 revenue less $30 cost). But it they sell only 7 then they still have a cost of $30 but only revenue of $35 for a $5 profit.
I'm not saying it's legit, but it has nothing to do with money under the table.

Offline cholent

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Re: The Future of Lakewood
« Reply #327 on: July 06, 2016, 09:05:17 PM »
Right, cuz the cannot afford not to rent it out. = Taking out a mortgage way out of their league
Not necessarily. Many choose to save money by continuing to live in a basement as long as feasible even when they own a house. I personally know many who have done this. I'm surprised you don't.
Don't ask stupid questions and you won't get stupid answers

Offline grodnoking

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Re: The Future of Lakewood
« Reply #328 on: July 06, 2016, 09:07:21 PM »
I know is fun to bash but that has nothing to do with it.

 The cost to build the rental units goes into the cost of the project but if they don't sell the units then they don't recognise that revenue. For example if they build 10 units and it costs $3 each and they can sell for $5, if they sell all they make $20 profit ($50 revenue less $30 cost). But it they sell only 7 then they still have a cost of $30 but only revenue of $35 for a $5 profit.
I'm not saying it's legit, but it has nothing to do with money under the table.
That simply brings in the money slower, and charges the taxes slower, which is good for people who get large tax deductions (like for giving charity). I'm fine with that.
I'm not who you think I am.

Offline David Smith

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Re: The Future of Lakewood
« Reply #329 on: July 06, 2016, 09:09:08 PM »
I know is fun to bash but that has nothing to do with it.

 The cost to build the rental units goes into the cost of the project but if they don't sell the units then they don't recognise that revenue. For example if they build 10 units and it costs $3 each and they can sell for $5, if they sell all they make $20 profit ($50 revenue less $30 cost). But it they sell only 7 then they still have a cost of $30 but only revenue of $35 for a $5 profit.
I'm not saying it's legit, but it has nothing to do with money under the table.
Who said it's illegitimate? They're making money in the rentals, while keeping the projects profit tax free. Nothing wrong with that.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ