Where are you puttin' your money for the next 5-10 years?

ghetto real estate...got my eye on a 35k single family home 1/4 mile from a downtown redevelopment project ...cha ching
 


Here's an example of the current Spanish real estate market.

These apartments are near me on the Costa del Sol. Nice build quality, fit and finish, huge terraces, some are multiple stories and it's on one of the 50 or 60 golf courses within an hour's drive from here.

They were originally selling from €350k and now are starting at €69k (it says €72k on the site but it was €69k last week)...

http://www.solvia.es/Piso-en-Casares-2-dormitorios/24947_8/vivienda_30919.html

Plenty more like that all over Spain.
 
Fatbat said:
Here's an example of the current Spanish real estate market.

These apartments are near me on the Costa del Sol. Nice build quality, fit and finish, huge terraces, some are multiple stories and it's on one of the 50 or 60 golf courses within an hour's drive from here.

They were originally selling from €350k and now are starting at €69k (it says €72k on the site but it was €69k last week)...

http://www.solvia.es/Piso-en-Casares-2-dormitorios/24947_8/vivienda_30919.html

Plenty more like that all over Spain.
Click to expand...

People were paying 350k for a standard looking spanish apartment with a shared pool that overlooks a man made lake?
 
mituozo said:
People were paying 350k for a standard looking spanish apartment with a shared pool that overlooks a man made lake?
Click to expand...

On a golf course on the Costa del Sol? Sure they were. There was a huge housing boom. Properties were being overvalued. People were getting 110% cash back mortgages and all kinds of crazy shit. There are some 30,000 illegally built properties here, because city halls were giving out building permits where they didn't have the right to do so. The last 4 mayors of Marbella have all gone to jail.

Then the market dropped out and they all lost their shirts.

I wouldn't buy that particular one because the setting is a bit ass. My last place was about the same price but it had much better views over the only Links golf course on the coast and was much closer to the sea...

balcony.jpg


I'm in a 2.5 bedroom, 3 bathroom house with a yard now and paying way less rent and utilities than I was on that apartment, albeit without the same view.
 
Fatbat said:
On a golf course on the Costa del Sol? Sure they were. There was a huge housing boom. Properties were being overvalued. People were getting 110% cash back mortgages and all kinds of crazy shit. There are some 30,000 illegally built properties here, because city halls were giving out building permits where they didn't have the right to do so. The last 4 mayors of Marbella have all gone to jail.

Then the market dropped out and they all lost their shirts.

I wouldn't buy that particular one because the setting is a bit ass. My last place was about the same price but it had much better views over the only Links golf course on the coast and was much closer to the sea...

balcony.jpg


I'm in a 2.5 bedroom, 3 bathroom house with a yard now and paying way less rent and utilities than I was on that apartment, albeit without the same view.
Click to expand...

I could understand 350k for a place like the one you've just given a pic for ;).

It just seems mad that people would pay that for the previous example.

A case of more money than sense I guess.
 
Just because you can buy real estate at dirt cheap prices doesn't mean it is always a good deal. I bought 9 houses 2 years ago and learned that the hard way. I bought them in the US at less than half of what they should sell for so I awesome deals but there is a reason they are so cheap. The neighborhoods they are in suck wind. You still will pay property taxes on all and have to maintain them so don't get in over your head. Try and buy properties that are less than 15 years old.

One more tidbit here, make sure you can sell it (within the next 10 years) before you buy it and don't buy it just because of the low price.
 
shawnhag said:
ghetto real estate...got my eye on a 35k single family home 1/4 mile from a downtown redevelopment project ...cha ching
Click to expand...

Solid. Get some Section 8 tenants. 2-3 bedroom houses, target single women on section 8 with 2-3 children. You don't want a 4 bdrm on section 8 as it takes a ton of kids to qualify for and is too much wear/tear. There's a sweet spot with 3 bdrms.

Some old, large houses can be split into duplexes or further. If you turn a house into 3-4 1 bedroom units, or buy a tri/quadplex, you can get disabled individuals on section 8. These folks stay forever, don't tear the house up, and don't cause problems.
 
mituozo said:
A case of more money than sense I guess.
Click to expand...

Absolutely. And it wasn't even a matter of having a lot of money in many cases. Banks were handing out mortgages to just about anyone, whether they could afford it or not. Then those people would take the 30k or 40k cash back, live or holiday in the place as long as they could until it was repossessed, and then split.
 
mituozo said:
I could understand 350k for a place like the one you've just given a pic for ;).

It just seems mad that people would pay that for the previous example.

A case of more money than sense I guess.
Click to expand...

Here you can't buy a shack for $300k....

My POS house was 309k, 4 bedroom 1.75 baths in zip code 98115

Here are some similar listings within .1 miles of my house:

6819 34th Ave Ne Seattle WA 98115 | MLS# 392617 | Windermere Real Estate

5545 36th Ave Ne Seattle WA 98105 | MLS# 401861 | Windermere Real Estate

5508 39th Ave Ne Seattle WA 98105 | MLS# 365657 | Windermere Real Estate
 
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