Ask tommy2 about Real Estate

[tommy2]

The posts about RE flipping lead me to believe that I might have something to offer to the forum for once.

Me: 7 years of commercial development and redevelopment experience. Have a JD & Masters in Real Estate and Urban Economics FWIW.

Fire away...

Also posted in OOT

[tommy2]

10-30%. I'd start picking through the rubble once the ARMs reset in 2007. Buy the stuff that is always desirable in any market--good location, 2brm 2bath, safe areas, etc. There should be plenty to pick from very soon.

[Boosted J]

Tommy, my fiance and I want to buy a house. I live here in Orlando, FL. Right now a late 1990's 3-4 bedroom/2 bath in the area we like(pretty nice) is going for about $325,000-$500,000.
Right now we live in pretty much the nicest apartment complex in Orlando and it costs $980/month for 1 bedroom/1 bath+study +$130/month for my 1 car garage add-on so about $1100 total/month. Our lease on the apartment is up July 31'st.

My question is what advice could you have for me? I suggested to my fiance that we should probably wait maybe 6 months to wait for housing to go down a little bit. Please let me know any and all advice you may have for us. Thank you very much,
-Boosted J

[tommy2]

I'd try to sign a month to month or 6 month lease if they would let me. Sometimes you just have to ask. RE markets aren't at the bottom yet, but are trending down. I'd wait 6 months, if you can. Start looking now, though so you know a good deal when you see one. Plan on looking at 20-30 houses before you make your first offer. Make sure you treat it like an investment--don't let yourself get overly emotional about housing. Seeing dozens of houses takes the glamour out of it and each house is just any other. This level of dispassion is a key to making a good decision. Go to lots of open houses, kick lots of tires.

[Boosted J]

So buying a house in 6 months is really good right? Just making sure my logic is not flawed by thinking about there being probably at least a $25k+ drop in the average price of the houses we are looking at within the next 6 months. I am correct, yes?

[tommy2]

Assuming your lease is no issue, I'd start looking in 4-6 months with the intention of buying in 6-12 months. Let more of this adjustable rate money crush the market a bit more.

[Paluka]

What do you think about NYC real estate right now? I'm thinking about buying in Brooklyn, mostly because the rental market is non-existant in my neighborhood. There are basically zero nice rental units.

[SuitedPair]

This year, more than $300 billion worth of hybrid ARMs will readjust for the first time. That number will jump to approximately $1 trillion in 2007, according to the MBA. Monthly payments will leap too, many beyond what homeowners can afford.

Foreclosures may jump as ARMs reset