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A $2MM shack rents for at most $60k/year
SunnyvaleCA says/''A $2MM shack rents for at most $60k/year
I have a 0.5MM shack on the beach in Maui and get ~68k in short term vacation rentals.
General excise and transient accommodation taxes sum to around 14.4% though. Business property taxes cost me about 4.5I last year.
I wind up with 25-35k in my pocket each year. That's after major remodeling work each year as well.
There was def a housing grab and the big cos certainly can roll over their debt longer and sweat it out longer to get the rent they want but I challenge the notion that they are generally squeezing the renters. Some fo the worst rent hikes and slumlords I noticed / heard of were (by) individual landlords. And I've seen some decent renting deals for houses owned by corporations.
(3) Ancient person looks to sell and can't stomach the effort of selling or the heartbreak of $400k taxes.
SunnyvaleCA says(3) Ancient person looks to sell and can't stomach the effort of selling or the heartbreak of $400k taxes.
Capital gains tax would apply on anything over $500,000 gain for a couple.
So if the couple's cost basis is $200,000 and they sell their home for $1,000,000, then they would pay capital gains tax rate (15% ?) on $300,000.
Better to do that and then buy a house for no more than 50% of that in Arizona, Nevada, or Colorado. I'm not sure why it seems that Californians are not moving to New Mexico.
A net of $30,000 in short term rental income off of a $500,000 Maui investment property is a 6% return on investment. That's pretty good.
A friend of mine owns a condo at the Summit in Panama City Beach, FL ( aka: redneck riviera or LA (as in "lower alabama") )
He bought at the peak in 2006 for about $225,000 but earns at least $25,000 annually in profit, and he pays someone to clean and maintain it, as well as keeps it up in appearance and condition.
I'm still trying to figure out how my area got so out of whack
AD saysA friend of mine owns a condo at the Summit in Panama City Beach, FL ( aka: redneck riviera or LA (as in "lower alabama") )
I like that area. I have gulf coast family in LA and TX and have driven further but haven't explored Florida yet. Very much like Gulf Shores not too far away.
SunnyvaleCA saysThat might explain why people would want to live in the area, but it doesn't explain why people would pay 2x (or more) monthly to "own" the place instead of renting.I'm still trying to figure out how my area got so out of whack
(5) You're nouveau riche with ill-gotten gains in your dictatorship country. You shower your one child princeling with the best opportunities money can buy including test prep, to buy into US grad schools with STEM major. Princeling gets residency by the H-1 / green card route. You covet neighborhoods with the highest standardized test scores and no Latinos or blacks. Money is no object.
That might explain why people would want to live in the area, but it doesn't explain why people would pay 2x (or more) monthly to "own" the place instead of renting.
I like that area. I have gulf coast family in LA and TX and have driven further but haven't explored Florida yet. Very much like Gulf Shores not too far away.
I haven't followed the real estate much down there in a while, but Navarre Beach is a nice area (Panhandle, FL). My folks made quite a bit of $$$ on a condo down there.
but it doesn't explain why people would pay 2x (or more) monthly to "own" the place instead of renting.
SunnyvaleCA saysbut it doesn't explain why people would pay 2x (or more) monthly to "own" the place instead of renting.
Yes it does.
Compared to the concrete canyons of Asia those are Bargain Spaces, and the region is the Wide Open Uncongested Prairie.
And we have the rule of law. No bullets to the back of the brain (for sale of organs) when we're out of political favor.
Very compelling for them.
The Great Wall Street Housing Grab
Hundreds of thousands of single-family homes are now in the hands of giant companies — squeezing renters for revenue and putting the American dream even further out of reach.