I assume the term property manager is the same as real estate agent? Cause usually when I think about Property managers I think of the people who manage rental properties for you.
Yes, having someone manage a rental for me is what I mean. I’m fine with my current living situation but if I bought the place I could get income from it and either live there one day or sell it to get money for another place.
The question I’m asking myself is if it’s better to have ~$70k in savings bonds or a band new prefab house on a rented lot.
This question gets a lot simpler if employing a property manager is a bad idea.
At least in my view if it’s just one unit, you probably don’t need one. but if you are far away or don’t want any hassle, it’s not a bad deal. .If your paying cash, you don’t have to worry about paying the Mortgage/expenses AND the cut from the property manager.
Really depends if the cut is worth it for what they provide. Even having been royally screwed, I’d probably not do it since I have the resources to handle most screw ups. Plus while it’s “bad business”, I know at least being the landlord I’m not going to be a dick compared to whatever the property manager is going to do
For me it would represent 70% of my life savings. (aside from retirement funds) Getting screwed over would be catastrophic for me.
After taking out lot fees, property taxes, insurance, and the manager’s cut the property should earn me 300-400 a month.
Soooooo 14 years to break even in the best-case scenario?
If you sank that $70k into an index fund with a 5% return (let’s say an average 6% returning fund with 1% in fees, which is ridiculous), you’d double your money in that same time.
If you don’t intend to live there now, you might be legitimately better off just investing in the market, and then outright buying a house when you’re able.
Houses can also go very very wrong in a hurry, so whatever you estimate in maintenance costs is probably too low.
A first for me: I cleaned out the bathroom sink drain—both the P-trap and the stopper. My partner has long hair so it was a horror show.
Replaced our old and crumbling cast concrete stoop with built steps that better match the brick of the house.
After it dries it’s getting some planters on the steps down the sides.
Nice. I’ll have to share a before and after on the replacement for the deathtrap that are my back stairs.
My wife and I are now officially home owners! Moving day isn’t until Sept but we’re really excited. She’s the first of her family in a long time to own property so they’re super pumped to help out with landscaping and repairs.
Has anyone had Mass Save do an energy assessment? It says it’s free but I’m wondering the updates they suggest are useful or not.
I cleaned out the dryer exhaust tube! It wasn’t super clogged, but there was some packed lint at the exhaust flap that I wanted to clear before it got worse.
I have solved my problem with my indoor antenna, instead of having it lean against the air conditioner I reused an old over the door towel rack and placed it into the ajar window. Now I no longer need to worry about having it fall on me accidentally.
I can only assume there is another huge housing bubble. the Property values around here are starting to look ridiculous.
So is it a good thing or a bad thing that I just refinanced earlier this year, then?
It definitely has that “shoeshine boy playing the stock market” vibe when everyone I know seems to be buying or upgrading to a bigger house. That said, basically all markets right now are looking very gamed and then gamed again. It’s unlikely that we will see negative interest rates on homes, so if you’re financially secure and it’s a long term investment low interest rates are low interest rates. Even if home prices crash, they should bump back up decisively on a 20 year term…
But I’m not doing it. I’m trying to maintain my ability to quickly and easily move in the case the market around me for work I want to do dries up.
It’s independent, right? Same debt but lower interest rate. If the debt turns out to be a bad idea, it’d be worse if it was also at a higher interest rate.
Sure, I just mostly wonder if I coulda gotten a better rate if I’d held out, but that’s mostly wondering how much I could guild the lily, really.
You can also do it again if it’s cost-effective. The proposed “adverse market refinance fee”—which was 0.5% when I looked last month—was supposed to start September 1 but was punted to December 1.
It would probably take around 2% on a 15-year fixed to get me to budge - I already locked in 2.5%, and realistically the closing costs on anything between that and 2% are just cutting the margin too thin to be worth it.
But if the market up and collapses who knows.