I am looking for a Home, or (maybe 1 or 2 bedroom) condo. Does anyone know a good website i can search out for cheap homes or even goverment homes that sell only for taxes? Thank you
2006-09-16 19:20:39 · 5 answers · asked by cratty_3 2 in Business & Finance ➔ Renting & Real Estate
Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
How to value a property during market downturn?
Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.
Let's use following example:
Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.
If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.
In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.
It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.
Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.
It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.
One may ask, why is there a discrepancy between two perspectives of the buyer and owner?
The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.
2006-09-17 23:48:08 · answer #1 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
there is not something inexpensive in Hawaii and development a house isn't person-friendly everywhere. i might talk with somebody who has performed something equivalent to what you pick to do and spot how they did it. Be arranged to section with significant money to get land in Hawaii.
2016-10-15 02:12:14 · answer #2 · answered by ? 4 · 0⤊ 0⤋
you have many many choices
REO.com
Foreclosure.com
AOL.com/realestate
FSBO.com
your local county clerks office on sheriff sales
there are many more
2006-09-16 19:23:22 · answer #3 · answered by Scanless1999 3 · 0⤊ 0⤋
www.realtor.com
2006-09-16 19:27:47 · answer #4 · answered by limgrn_maria 4 · 1⤊ 0⤋
***NOTICE ——— THERE ARE NO 'CHEAP' HOMES ANYWHERE!!!***
2006-09-16 19:28:22 · answer #5 · answered by Freesumpin 7 · 0⤊ 0⤋