ThatDonGuy
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January 24th, 2021 at 11:18:18 AM permalink
It's never too early to think about what to do when I retire. Right now, I plan on retiring at the end of 2024; my pension "should be" $44K/year, plus what I have saved up (right now, between my 401(k) and my mutual funds I think it's around $1M).

Given that I live alone, and I decide to move to Vegas when I retire:
(a) Is a condo better than a house?
(b) Are there any recommended areas to buy - or, for that matter, any areas that you recommend I stay out of?

Example: there seem to be a number of condos just west of Decatur between Flamingo & Troicana currently just under $200K for 2 bed/2 bath.
There are also a few on Koval & Flamingo, but those are in the $250K range.
DRich
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January 24th, 2021 at 11:33:56 AM permalink
Quote: ThatDonGuy

It's never too early to think about what to do when I retire. Right now, I plan on retiring at the end of 2024; my pension "should be" $44K/year, plus what I have saved up (right now, between my 401(k) and my mutual funds I think it's around $1M).

Given that I live alone, and I decide to move to Vegas when I retire:
(a) Is a condo better than a house?
(b) Are there any recommended areas to buy - or, for that matter, any areas that you recommend I stay out of?

Example: there seem to be a number of condos just west of Decatur between Flamingo & Troicana currently just under $200K for 2 bed/2 bath.
There are also a few on Koval & Flamingo, but those are in the $250K range.



I would not recommend either of those condo locations. I would look more on the outskirts of the city away from the strip and downtown. There are lots of good neighborhoods and manythat you might want to stay away from. Sumerlin is a good family area, Green Valley is a good family area. There are many more.

Just remember, Las vegas gets cold. I would not have moved here if I knew it got this cold.
At my age, a "Life In Prison" sentence is not much of a deterrent.
billryan
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January 24th, 2021 at 12:04:42 PM permalink
I'd strongly suggest you rent for a year so you can learn the areas you like and dislike. When the moratorium on evictions expires, I'm thinking there might be some great deals.
If you decide Vegas isn't for you, you aren't stuck with one of the thousands of condos on the market.
When I moved out in 2016, I spent a month looking at condos and townhouses before deciding to rent in northwest Henderson. Many condos sounded good until you get into the carrying charges and tack on fees.
I looked at properties on and off for the next year, but it made economic sense for me to rent. I'm hoping to move back to Vegas in eighteen months and expect I'll rent again for a bit.
The difference between fiction and reality is that fiction is supposed to make sense.
rxwine
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January 24th, 2021 at 12:33:00 PM permalink
You should rent for at least a month and look around if you can. Actually being there and looking at locations in areas you are considering is a good idea even if it isn't the actual place you're going to buy or rent.

What is of highest priority to you may or may not matter to others.
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jjjoooggg
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January 24th, 2021 at 12:54:02 PM permalink
Contrary to some, I think Vegas is bueatiful, Red rock mountains, Excitment everywhere, great food, parks.

I live in the most boring part of the US, South texas. I've been trying to leave for the last 30 years. My parents think they are doing somethin miraculous running a hole in the wall restaurant.
Born in Texas and lived in Texas my whole life.
Vegasrider
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January 24th, 2021 at 1:55:52 PM permalink
Definitely rent for at least six month to get a feel for the city and familiarise yourself what part of the area appeals to you. Agreed, both those areas you have mentioned are not desirable. For me, I like the high rise condos vs the traditional apartment type complexes or house.

Benefits of retiring in Nevada, no state income tax. Remember the summer gets pretty toasty. I lived in Vegas for 15 years, I thought it was the best city in the world until I moved to Reno. I love the north, so much beauty, snow capped mountains in the background almost year long. But the cost of living up here is getting absurd. And if you fly, it’s like flying pre 911, just show up 30 minutes before your flight, that includes parking your car inside the parking garage.
rxwine
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January 24th, 2021 at 2:34:58 PM permalink
Oh yeah, you could always look at places on Mt Charleston. I don't actually know anyone who lived there, but it probably has some good reason to be lived on.

https://lasvegassun.com/news/2012/apr/07/45-minutes-and-world-apart-mount-charleston-reside/
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ChumpChange
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January 24th, 2021 at 2:37:18 PM permalink
2021 is just 2020 squared. All bets are off.
Ace2
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January 24th, 2021 at 2:42:22 PM permalink
Quote: ChumpChange

2021 is just 2020 squared. All bets are off.

Actually, it’s 43 * 47
It’s all about making that GTA
SOOPOO
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January 24th, 2021 at 3:35:12 PM permalink
General retirement advice. Don’t forget to add what you get from SS into your ‘in’ box. Agree 100% with those that recommend renting first. Unless you definitely want a single family house, condo seems like the way to go. Way less ‘stuff’ to do or worry about as you get older. If it was warmer in winter I’d be there with you, but wifey wants warm Florida.

The tough question is what do you plan on counting on your $1 million in savings to provide you annually?

Anyway..... good luck!
rxwine
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January 24th, 2021 at 4:19:05 PM permalink
Quote: SOOPOO



The tough question is what do you plan on counting on your $1 million in savings to provide you annually?



https://www.investopedia.com/articles/personal-finance/102715/how-retirees-live-1-million-dollars.asp
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ChumpChange
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January 24th, 2021 at 4:25:50 PM permalink
The days of buying bonds that pay 5% may be running out, especially when municipalities can't pay their sewer bills.
jjjoooggg
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January 24th, 2021 at 4:37:26 PM permalink
I envy ppl who have this choice. I live in the most boring city in the USA. South texas.
Born in Texas and lived in Texas my whole life.
SOOPOO
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January 24th, 2021 at 4:38:46 PM permalink
Quote: rxwine

https://www.investopedia.com/articles/personal-finance/102715/how-retirees-live-1-million-dollars.asp



The article says take out 4% a year, $40k, from the million. That means mostly stock....as bonds are now paying way less than 4%. If you get a 20% pullback your $1 million is now $800k. Then your 4% is only $32k.

Trust me, once you stop working the ‘expected yearly income’ becomes less confident. I’ve been lucky in my first 1.5 years that the market has skyrocketed. I hope you are too!
Hunterhill
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January 24th, 2021 at 4:39:17 PM permalink
Quote: billryan

I'd strongly suggest you rent for a year so you can learn the areas you like and dislike. When the moratorium on evictions expires, I'm thinking there might be some great deals.
If you decide Vegas isn't for you, you aren't stuck with one of the thousands of condos on the market.
When I moved out in 2016, I spent a month looking at condos and townhouses before deciding to rent in northwest Henderson. Many condos sounded good until you get into the carrying charges and tack on fees.
I looked at properties on and off for the next year, but it made economic sense for me to rent. I'm hoping to move back to Vegas in eighteen months and expect I'll rent again for a bit.

Billy why are you waiting 18 months to move back to Vegas? Also I was under the impression that you liked Bisbee.
The mountain is tall but grass grows on top of the mountain.
ChumpChange
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January 24th, 2021 at 4:52:10 PM permalink
Rents in downtown LA are crashing because of endless homeless encampments and crime making going outside after dark a bad idea. One complex lowered their rents from $3500/mo to $2100/mo and that's not low enough to get the broke people off the street into housing. Everybody needs a $20K stimulus check to pay their back rent now because these gov't programs that were set up previously are abject failures. You need $70 billion to pay back rents? Throwing $25 or $55 billion at the problem won't be enough.
Venice Beach is a millionaires paradise, but it's also a homeless enclave now. It's getting worse by the day despite any moratoriums. NY, TX, CA, FL could all have half a million homeless when the moratoriums expire, in the middle of a pandemic! Gonna have to get the Chinese authorities around to weld you into your house or apartment to keep you from going outside where the homeless are.
billryan
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January 24th, 2021 at 4:55:45 PM permalink
Quote: Hunterhill

Billy why are you waiting 18 months to move back to Vegas? Also I was under the impression that you liked Bisbee.



I like Bisbee but it's too small for me. Having to drive twenty plus miles to get a gallon of milk gets old fast.
I sold my building and am going to a hybrid plan where I sell online and consign stuff to other shops. New owner wants to sink in some serious money and make it into four AirBNB units and paid a nice premium over my costs.
When I get my vaccine I plan on traveling for a few months and ending up in Vegas. I leased a huge old ranch house for the next few months while I liquidate.
I loved Vegas and am looking forward to returning.
The difference between fiction and reality is that fiction is supposed to make sense.
jjjoooggg
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January 24th, 2021 at 4:58:55 PM permalink
Remember when las vegas condos were as low as 25k. Now going for 4 times. I should have flipped one.
Born in Texas and lived in Texas my whole life.
Hunterhill
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January 24th, 2021 at 5:00:15 PM permalink
Ok well good luck with your plans.
The mountain is tall but grass grows on top of the mountain.
Wizard
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January 24th, 2021 at 8:52:23 PM permalink
It seems a central location is important to you. That said, I recommend between Charleston and Sahara and between the I-15 and Decatur. This is an area with older houses on large lots. Not the ticky-tacky houses on tiny lots you see built the last three decades. These aren't the only old-Vegas neighborhoods, but the closest to the Strip. I'm sure some others will report these areas are higher in crime, which is true. However, burglaries are high everywhere. I tend to think most people put too much stock in crime statistics.

If you want something quieter, I would recommend the west side of town, where I live.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
TDVegas
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January 24th, 2021 at 9:42:16 PM permalink
In Vegas...location means everything, IMO. I live in Summerlin and would not live anywhere else in Vegas. Henderson has some nice areas as well, but I find the traffic over there can be brutal. Summerlin gives you a good suburban feel. No billboards, well landscaped, upscale and far enough away from some of the garbage that is a part of this city...and any city for that matter. Unless of course, you are looking for a true city feel. Then there are many options.

It really comes down to a personal decision, a personal feeling. I would rent before buying and wherever you intend to live....visit the closest supermarkets, Walmart, convenience stores, etc....and you will likely get a feel if you think it’s to your liking. Coming here sight unseen and buying “value” can be a big mistake.

South Texas...rural? Definitely drive around Vegas, all of Vegas before you plunk down roots. That’s what I did. No regrets. I wouldn’t trade Summerlin for any other area. But...that’s me. In the end, it’s a personal decision, personal feel. As far as living here and hitting the Strip or being close to the strip? Most locals aren’t hitting the strip on a regular basis. They know it’s a tourist trap for pricing. After a few months living here...they figure it out and it becomes similar to a guy living in Manhattan “hitting up” Times Square. IOW’s....it’s not happening.
jjjoooggg
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TDVegas
January 24th, 2021 at 9:50:52 PM permalink
Not rural. Corpus christi is boring. Id like to live in austin san antonio dallas.
Born in Texas and lived in Texas my whole life.
jqneedareset
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January 25th, 2021 at 6:33:37 AM permalink
Quote: billryan

I'd strongly suggest you rent for a year so you can learn the areas you like and dislike.

We are kicking around the idea of coming out to Vegas for a month this summer as a mini-adventure, IF I can still work remotely at that time. We would rent a condo and see how we like it.

We live closer to the east coast than the west coast, and from what I can see, it would be much cheaper for us to fly out and rent a car for an entire month than to drive out in one of our cars. And since I am still working, as a bonus it would cut down on the number of vacation days I would have to take.
Last edited by: jqneedareset on Jan 25, 2021
billryan
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January 25th, 2021 at 7:28:24 AM permalink
Just a few random thoughts.

The income from a million dollar nest egg will be more than sufficient to rent a very nice apartment. I'd think hard before breaking it up to buy something. Maybe later when you find the perfect place but the chances of you doing that right out of the box are slim.

When I lived there, I belonged to two groups that provided free tickets to shows. For about $100 a year, I would go to two or three shows a week. Not the top headline shows, but the list was quite large and there was something for everyone.

As someone mentioned, don't worry about how close you are to the strip because your daily life will not revolve around it.

I picked Henderson and was pretty happy there. Most new development is further west or north of the strip and it can get pricey pretty quick.
Summerlin is really nice, but not inexpensive. It seems like a great place to raise a family but might not be the best place for a middle income retirement. Areas up north, but not North Las Vegas, have tremendous growth potential and are relatively cheap, but are still remote.

Best of luck.
The difference between fiction and reality is that fiction is supposed to make sense.
DRich
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January 25th, 2021 at 7:34:34 AM permalink
Another thing to consider is what is important to yourself. I ended up in Henderson (Green Valley) because being close to an airport was very important to me. Although I don't travel nearly as much as I used to, leaving my house and being at the airport in 10 minutes is still huge for me. Nothing better than getting home from a long trip and getting off the plane and being home. I wouldn't want to have a 30 minute drive to get home.
At my age, a "Life In Prison" sentence is not much of a deterrent.
ThatDonGuy
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January 25th, 2021 at 8:05:00 AM permalink
Quote: Wizard

It seems a central location is important to you. That said, I recommend between Charleston and Sahara and between the I-15 and Decatur. This is an area with older houses on large lots. Not the ticky-tacky houses on tiny lots you see built the last three decades. These aren't the only old-Vegas neighborhoods, but the closest to the Strip. I'm sure some others will report these areas are higher in crime, which is true. However, burglaries are high everywhere. I tend to think most people put too much stock in crime statistics.

If you want something quieter, I would recommend the west side of town, where I live.


It doesn't have to be "that" central - remember, whenever I visit Vegas, I use the buses. Okay, somewhere near a bus line would be nice; keep in mind I will be 63 when I actually make my move.

Quote: billryan

The income from a million dollar nest egg will be more than sufficient to rent a very nice apartment. I'd think hard before breaking it up to buy something. Maybe later when you find the perfect place but the chances of you doing that right out of the box are slim.


Remember, that's a million dollar nest egg plus a $44,000/year pension plus what I get from Social Security (plus, or minus as the case may be, the difference between what I can get for my current townhouse and what a condo/apartment in Vegas would cost).
billryan
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January 25th, 2021 at 8:53:14 AM permalink
Quote: ThatDonGuy

It doesn't have to be "that" central - remember, whenever I visit Vegas, I use the buses. Okay, somewhere near a bus line would be nice; keep in mind I will be 63 when I actually make my move.


Remember, that's a million dollar nest egg plus a $44,000/year pension plus what I get from Social Security (plus, or minus as the case may be, the difference between what I can get for my current townhouse and what a condo/apartment in Vegas would cost).



So you are saying you have too much money to rent? When I was looking in 2015/2016, there were thousands of condos on the market, many had been there for 100 days or more and most of the ones I looked at were unoccupied. More importantly, few of them were selling for what they had sold for ten years before. Is something that is hard to sell and hasn't appreciated in a decade a good use of your nest egg.
I'd rather have my money out working for me instead of being tied into where I sleep. Others are different. What I do believe is that the people who stress the joy and pride of homeownership are usually the ones trying to sell you one.
The difference between fiction and reality is that fiction is supposed to make sense.
jqneedareset
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January 25th, 2021 at 1:24:30 PM permalink
Quote: jqneedareset

We are kicking around the idea of coming out to Vegas for a month this summer as a mini-adventure, IF I can still work remotely at that time.

I may need to accelerate the timing. There is probably a good chance that I will be told to be back in the office when summer rolls around.
TDVegas
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January 25th, 2021 at 1:48:37 PM permalink
Careful with buying condos. A lot of investors poured in and bought up a lot of condo units during the financial crisis. The end result is a lot of developments got ruined as they became “rent to any warm body”. Renters have no “skin” in the neighborhood....and it does show.

This is why some HOA’s have requirements about how many units can be rented in a particular neighborhood.

You need eyes in the back of your head and you better do some due diligence before buying anywhere in Vegas.
Ace2
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January 25th, 2021 at 2:08:26 PM permalink
Quote: billryan

The income from a million dollar nest egg will be more than sufficient to rent a very nice apartment.

What type of income are you referring to?

The current interest rate is essentially zero, and around negative 2% adjusted for inflation

It’s gotta go back to a normal level some day but we’ve been at this level for over ten years. Could be another ten
It’s all about making that GTA
AZDuffman
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January 25th, 2021 at 2:16:08 PM permalink
Quote: ChumpChange

Rents in downtown LA are crashing because of endless homeless encampments and crime making going outside after dark a bad idea. One complex lowered their rents from $3500/mo to $2100/mo and that's not low enough to get the broke people off the street into housing.



Lowered the rent to $2100 a month?

I honestly do not get how people in these parts of the country survive.

But to the thread, the condo/house decision comes down to what you want. In a condo you give up a garage and doing any kind of hobby that is not sitting inside the house. For some people that does not matter, for others it does. OTOH a condo you leave and lock and no worries. This is nice if you plan to be gone for a few weeks at a time.

IMHO we have a housing crash coming the next year or two. Valuations are insane. A jumbo over $409,000 was very rare 10 years ago, now I see that kind of valuation many times a day. Are enough people making over $150000 to sop up this supply?
All animals are equal, but some are more equal than others
DRich
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January 25th, 2021 at 2:32:58 PM permalink
Quote: AZDuffman


IMHO we have a housing crash coming the next year or two. Valuations are insane. A jumbo over $409,000 was very rare 10 years ago, now I see that kind of valuation many times a day. Are enough people making over $150000 to sop up this supply?



Although not that many individuals are making over $150k, many couples are. I would say that the majority of couples that I know are making combined around $150k. Of course in Vegas many service workers are making over $75k (taxed minimally).
At my age, a "Life In Prison" sentence is not much of a deterrent.
TomG
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January 25th, 2021 at 2:33:38 PM permalink
Things could be a lot different in five years.

a - I do not like the idea of a condo, because the fees are like another mortgage payment that never builds equity and can hurt any appreciation. Some people do like the amenities and all the stuff they get with it.
b - Like condo v house, location is going to be personal preference. I think most retirees with money like the master planned communities on the edges of the city: https://www.greatlasvegashomes.com/las-vegas-master-planned-communities.php
Those are all just traditional suburbs, all feel roughly the same to me. Maybe someone else could tell you any differences that would make one better than the other

More central areas can have very nice, higher end residential block, right next to rundown neighborhoods. I think anyone would obviously recommend the higher end places, and recommend staying out of the rundown areas, but can be hard to just give general cross streets. Plenty of the older homes are around 1000 sq', so still in the same price range as the condos you are asking about.
DRich
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January 25th, 2021 at 2:44:10 PM permalink
Quote: TomG


More central areas can have very nice, higher end residential block, right next to rundown neighborhoods. I think anyone would obviously recommend the higher end places, and recommend staying out of the rundown areas, but can be hard to just give general cross streets. Plenty of the older homes are around 1000 sq', so still in the same price range as the condos you are asking about.



In my area of Vegas you can find an average three bedroom 1500sqft house for about $350k which is definitely up about $100k over the last 5 years.
At my age, a "Life In Prison" sentence is not much of a deterrent.
AZDuffman
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January 25th, 2021 at 3:07:38 PM permalink
Quote: DRich

Although not that many individuals are making over $150k, many couples are. I would say that the majority of couples that I know are making combined around $150k. Of course in Vegas many service workers are making over $75k (taxed minimally).



I guess many are, but the other side is for how many the houses are debt not assets. Seeing refinances without any equity building is much like working as a dealer at a locals place and seeing the same people drop their paycheck at the tables. Meanwhile I see just what kind of house $450K+ buys. Really, I cannot see how young people in these cities can ever hope to get equity.

And that is the thing. Eventually this all has to either come crashing down or inflation has to eat away at the value of the debt.

They should better warn how hard red pilled life is.
All animals are equal, but some are more equal than others
billryan
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January 25th, 2021 at 3:44:59 PM permalink
Quote: DRich

In my area of Vegas you can find an average three bedroom 1500sqft house for about $350k which is definitely up about $100k over the last 5 years.


Prices are high today, which means renting might be the better option.
The difference between fiction and reality is that fiction is supposed to make sense.
DRich
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January 25th, 2021 at 3:47:35 PM permalink
Quote: AZDuffman

I guess many are, but the other side is for how many the houses are debt not assets. Seeing refinances without any equity building is much like working as a dealer at a locals place and seeing the same people drop their paycheck at the tables. Meanwhile I see just what kind of house $450K+ buys. Really, I cannot see how young people in these cities can ever hope to get equity.

And that is the thing. Eventually this all has to either come crashing down or inflation has to eat away at the value of the debt.

They should better warn how hard red pilled life is.



I agree, houses are not for everyone. A good friend of mine is a union carpenter and makes a good living (about $110k). He and his wife are very happy just renting and putting all of his extra money in his annuity. Houses are not the investment that they used to be. Way too many idiots just refi and take cash out as soon as they accumulate any equity.
At my age, a "Life In Prison" sentence is not much of a deterrent.
billryan
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January 25th, 2021 at 3:49:25 PM permalink
Quote: Ace2

What type of income are you referring to?

The current interest rate is essentially zero, and around negative 2% adjusted for inflation

It’s gotta go back to a normal level some day but we’ve been at this level for over ten years. Could be another ten



Then lend me a million at 2%. If you can't get better than that, I'll happily take care of it for you. I'll even give you the first two years interest in advance the day you deliver the million.
The difference between fiction and reality is that fiction is supposed to make sense.
billryan
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January 25th, 2021 at 3:58:53 PM permalink
Quote: DRich

I agree, houses are not for everyone. A good friend of mine is a union carpenter and makes a good living (about $110k). He and his wife are very happy just renting and putting all of his extra money in his annuity. Houses are not the investment that they used to be. Way too many idiots just refi and take cash out as soon as they accumulate any equity.



Before the Depression, you would normally need 50% down to get a mortgage. When banks had excess houses and no buyers, they both lowered the requirements and got the Government to change the tax laws to make it easier to get one.
You have to keep in mind that electricity and indoor plumbing are relatively new and houses built without them were much cheaper to build and own. My Grandfather built our summer bungalow over a few weekends, but it had no plumbing or electricity. They used kerosene for light and I think propane for cooking. There was a community Big House that had a variation of an outhouse, communal showers and a pump that you got your cooking and drinking water from.
The difference between fiction and reality is that fiction is supposed to make sense.
rxwine
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January 25th, 2021 at 4:11:22 PM permalink
Quote: AZDuffman

In a condo you give up a garage



My sister has a garage with her condo. (just noting)
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DRich
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January 25th, 2021 at 4:30:40 PM permalink
Quote: rxwine

My sister has a garage with her condo. (just noting)


.
Sadly, I have a three car garage and so much junk in it that I can't even fit one of the cars
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ChumpChange
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January 25th, 2021 at 4:44:20 PM permalink
Banks in Detroit won't make a mortgage of less than $70K because they have to make a profit. So all those houses going for $1K to $70K have to be paid for in cash, and have to pay years of back taxes on them too which nobody mentioned upfront. So if I thought I was gonna get a $15K mortgage for $200 a month, no.
billryan
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January 25th, 2021 at 5:27:01 PM permalink
Lots of condos in Vegas come with two or three-car garages. I think they include the square footage when calculating the common charges.
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Ace2
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January 25th, 2021 at 7:38:31 PM permalink
Quote: billryan

Then lend me a million at 2%. If you can't get better than that, I'll happily take care of it for you. I'll even give you the first two years interest in advance the day you deliver the million.

I was asking a serious question. What’s up with the testy reply ?
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billryan
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January 25th, 2021 at 8:36:50 PM permalink
Quote: Ace2

I was asking a serious question. What’s up with the testy reply ?



It wasn't meant to be testy. It's a serious offer. Rents on nice two-bedroom apartments run around $1500 a month. You'd be hard pressed not to be able to cover that with income off a million dollar nest egg.
The difference between fiction and reality is that fiction is supposed to make sense.
coilman
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January 25th, 2021 at 9:02:00 PM permalink
Quote: TDVegas

In Vegas...location means everything, IMO. I live in Summerlin and would not live anywhere else in Vegas. Henderson has some nice areas as well, but I find the traffic over there can be brutal. Summerlin gives you a good suburban feel. No billboards, well landscaped, upscale and far enough away from some of the garbage that is a part of this city...and any city for that matter. Unless of course, you are looking for a true city feel. Then there are many options.

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AZDuffman
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January 26th, 2021 at 2:27:44 AM permalink
Quote: rxwine

My sister has a garage with her condo. (just noting)



Many condos do, but they are small and just hold the car for the most part. Point is it is not like a house with a garage where you might do regular projects.
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AZDuffman
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January 26th, 2021 at 2:36:00 AM permalink
Quote: DRich

I agree, houses are not for everyone. A good friend of mine is a union carpenter and makes a good living (about $110k). He and his wife are very happy just renting and putting all of his extra money in his annuity. Houses are not the investment that they used to be. Way too many idiots just refi and take cash out as soon as they accumulate any equity.



The idea of owning is that sooner or later mortgage payments are supposed to stop. Then you live cheap in your older age. My thing is I just see the numbers of so many people and do not understand how they survive. But I have been told my attitude of fear of falling back into bad debt was the same as you find in recovering addicts at a NA meeting by a guy who was a recovering addict so maybe it is a good thing?

If you keep a mortgage 30 years you will pay about three times the cost over time. But then you have the house. Or you can invest and potentially do better. Problem is most people will not invest, they will keep spending.

To the point of the thread, I think Vegas is due for a price crash the next few years unless we try to inflate away the federal debt, itself a big possibility.
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SOOPOO
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Ace2
January 26th, 2021 at 6:13:49 AM permalink
Quote: billryan

Then lend me a million at 2%. If you can't get better than that, I'll happily take care of it for you. I'll even give you the first two years interest in advance the day you deliver the million.



You do realize that if it was 100% sure that you would repay the loan, paying 2% over say the next year, you would get access to thousands of investors willing to loan you that million. The federal government, who can just print more money, only pays less than 0.25% now.

Your premise is that Ace2 will need to invest in stocks, or bonds that carry default risk. I agree with you that doing so the EV is substantially over 2%. But comes with substantial variance.

I am retired.... and depend on the income from my saved money like Ace2 will. Exactly what % to ‘depend’ on is a very complicated decision.

As far as condo versus house.... condo fees are X. Upkeep on a house is Y. Sometimes X>Y. Sometimes Y>X.
AZDuffman
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January 26th, 2021 at 8:32:37 AM permalink
Quote: SOOPOO

You do realize that if it was 100% sure that you would repay the loan, paying 2% over say the next year, you would get access to thousands of investors willing to loan you that million. The federal government, who can just print more money, only pays less than 0.25% now.

Your premise is that Ace2 will need to invest in stocks, or bonds that carry default risk. I agree with you that doing so the EV is substantially over 2%. But comes with substantial variance.

I am retired.... and depend on the income from my saved money like Ace2 will. Exactly what % to ‘depend’ on is a very complicated decision.

As far as condo versus house.... condo fees are X. Upkeep on a house is Y. Sometimes X>Y. Sometimes Y>X.



But an issue on a condo is if the HOA decides to make improvements and charge extra you gotta pay. If the HOA defaults you are liable.
All animals are equal, but some are more equal than others
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