Geriatric millennial here: it’s missing the purchase at the top of the bubble in 2007, listing for sale at a loss 3 times in 2008-2009, list for rent in 2014 and 2015 at less than the mortgage, sell in 2017 at slightly more than when you purchased it when you finally got it off your back (but you paid it all in taxes because it was a rental), then see it sold in 2022 for 2.5x what you sold it for in 2017.
At least that’s how my first home purchase went when everyone told me real estate was a guarantee in my 20s on a non-profit salary. The only thing you wouldn’t see is the 0% mortgage offer they made on the first 150k when we started walking away in 2009. And the medical bills for idiopathic neuropathy from the stress.
I’m sorry about the stress but to be fair one of the reasons that house prices got so insane was people like you who were buying to rent. That puts pressure on the housing market because if you buy to rent you can own multiple properties, so more and more housing stock gets taken out of rotation so it gets to the point where even if people could theoretically afford to buy a house, there are none available.
Renting brakes the supply and demand system. If there were more houses than there was demand, the value would go down and would open up home ownership for more people, this would increase demand and stabilise the market. If there was insufficient supply, housing prices would go up which would incentivise companies to construct more properties, thus increasing availability and stabilising the market. But the want to be landlords come in and buy up all the available homes and now there is high demand but low supply, so construction companies build houses and sell directly to landlords (because landlords have no chain), demand has increased but supply has remained the same, despite construction having happened. Repeat that for 50 years and you get our current housing market.
If you see the timeline, we lived there 7 years and were landlords for 2.5. We moved across the country for a major income jump (and cost of living increase) and literally couldn’t afford to pay into the bank to sell the house for a $50k loss at the time. We were going to walk away again, but some friends convinced us to rent it out.
What a fucking nightmare that turned out to be.
We didn’t live in a great part of town, so rent was cheap and literally less than the cost of owning. We effectively subsidized the rent. A smarter person would have realized that taking a loan to sell was the better plan here.
The first property management company we hired found some people quickly and got them in. 4 months later the person managing our house left and the new person asked us why we hadn’t evicted because they had never paid rent, ever (we had been getting rent minus the fee, so we were shocked). So we had to evict and fucking hell I spent 3k cleaning and fixing and hauling out all their trash, flying across the country to do it. They stole the washer and dryer on the way out, ruined the dishwasher and destroyed several doors and walls.
We fired that company and got a new one. The next tenants actually paid rent for 2 years, but had constant issues with rodents and bugs and the appliances. When the market finally brought us above water we didn’t renew their lease and Jesus fuck me they had destroyed everything. The 160lb Cane Corsa they kept in the basement had literally pissed and shit so much the walls were destroyed and the cement floor had to be painted and sealed after heavy industrial cleaners. There was food everywhere in the house and rodents and bugs were prevalent, so we had to hire exterminators. Also they left several yards of trash in shitty furniture and garbage we had to haul out.
We lost so much money renting we would have been better off taking a loan to sell in the first place. We listed for 40k over what we originally paid, but took just 15k because, let’s face it, the house was still a shambles (and the basement still stank). We got a tax bill for 14k when we sold because of some financing fuckery that screwed us more.
This doesn’t sound like someone who bought 4x houses and became a slum lord.
Renting out a home you own is a normal part of home ownership. You might move to another city, care for your elderly parents, or move in with a spouse.
Its easy to say “oh well hurry durr you should sell because charging rent is unethical”, but in practice no one would actually sell in these circumstances for that reason, if it were contrary to their interests.
This has been happening since the first troglodite laid on some straw and called it a bed. Renting for a few years is not everything thats wrong with the property market.
This is me!! I bought a house in 2014 for $140k probably spent $30k in upgrading it, sold it in 2019 when I had to move for $160k… It just sold for $350k.
I’m also a ‘geriatric millennial’, but I wasn’t in a position to buy until 2009 so my experience was vastly different. I do have some same-age friends who bought in 2007 with stories more similar to yours, though.
Ironically, my mom tried to warn me against buying back then. I would’ve been absolutely screwed if I’d listened to her.
Yeah, it’s the worst financial mistake we ever made. If we had waited just a few months, we would have at least qualified for the bailout money.
We had so many friends that bought in 2009 and 2010 at the bottom and watched them flourish.
It took us 12 years to recover, but we’re homeowners again and ultimate leaving for higher pay finally worked out in our favor. We bought again in 2020 and our down payment was the entire cost of the first house (we went from medium cost of living to very high with incomes to match). We emptied just about everything, but had also been saving hard since selling the shit heap. 5 years later, we’re finally comfortable.
Geriatric millennial here: it’s missing the purchase at the top of the bubble in 2007, listing for sale at a loss 3 times in 2008-2009, list for rent in 2014 and 2015 at less than the mortgage, sell in 2017 at slightly more than when you purchased it when you finally got it off your back (but you paid it all in taxes because it was a rental), then see it sold in 2022 for 2.5x what you sold it for in 2017.
At least that’s how my first home purchase went when everyone told me real estate was a guarantee in my 20s on a non-profit salary. The only thing you wouldn’t see is the 0% mortgage offer they made on the first 150k when we started walking away in 2009. And the medical bills for idiopathic neuropathy from the stress.
I’m sorry about the stress but to be fair one of the reasons that house prices got so insane was people like you who were buying to rent. That puts pressure on the housing market because if you buy to rent you can own multiple properties, so more and more housing stock gets taken out of rotation so it gets to the point where even if people could theoretically afford to buy a house, there are none available.
Renting brakes the supply and demand system. If there were more houses than there was demand, the value would go down and would open up home ownership for more people, this would increase demand and stabilise the market. If there was insufficient supply, housing prices would go up which would incentivise companies to construct more properties, thus increasing availability and stabilising the market. But the want to be landlords come in and buy up all the available homes and now there is high demand but low supply, so construction companies build houses and sell directly to landlords (because landlords have no chain), demand has increased but supply has remained the same, despite construction having happened. Repeat that for 50 years and you get our current housing market.
We absolutely did not buy to rent.
If you see the timeline, we lived there 7 years and were landlords for 2.5. We moved across the country for a major income jump (and cost of living increase) and literally couldn’t afford to pay into the bank to sell the house for a $50k loss at the time. We were going to walk away again, but some friends convinced us to rent it out.
What a fucking nightmare that turned out to be.
We didn’t live in a great part of town, so rent was cheap and literally less than the cost of owning. We effectively subsidized the rent. A smarter person would have realized that taking a loan to sell was the better plan here.
The first property management company we hired found some people quickly and got them in. 4 months later the person managing our house left and the new person asked us why we hadn’t evicted because they had never paid rent, ever (we had been getting rent minus the fee, so we were shocked). So we had to evict and fucking hell I spent 3k cleaning and fixing and hauling out all their trash, flying across the country to do it. They stole the washer and dryer on the way out, ruined the dishwasher and destroyed several doors and walls.
We fired that company and got a new one. The next tenants actually paid rent for 2 years, but had constant issues with rodents and bugs and the appliances. When the market finally brought us above water we didn’t renew their lease and Jesus fuck me they had destroyed everything. The 160lb Cane Corsa they kept in the basement had literally pissed and shit so much the walls were destroyed and the cement floor had to be painted and sealed after heavy industrial cleaners. There was food everywhere in the house and rodents and bugs were prevalent, so we had to hire exterminators. Also they left several yards of trash in shitty furniture and garbage we had to haul out.
We lost so much money renting we would have been better off taking a loan to sell in the first place. We listed for 40k over what we originally paid, but took just 15k because, let’s face it, the house was still a shambles (and the basement still stank). We got a tax bill for 14k when we sold because of some financing fuckery that screwed us more.
I regret ever having been a “landlord”.
Don’t forget how much Airbnb fucked shit up. Pulling houses off the market that then don’t even have anyone living in them just to earn a profit.
This doesn’t sound like someone who bought 4x houses and became a slum lord.
Renting out a home you own is a normal part of home ownership. You might move to another city, care for your elderly parents, or move in with a spouse.
Its easy to say “oh well hurry durr you should sell because charging rent is unethical”, but in practice no one would actually sell in these circumstances for that reason, if it were contrary to their interests.
This has been happening since the first troglodite laid on some straw and called it a bed. Renting for a few years is not everything thats wrong with the property market.
So. It’s still true, the fact that everyone does it doesn’t change the fact it’s had a negative effect in the market.
The fact that everyone wants to live in a house also has a negative effect in the market.
This is me!! I bought a house in 2014 for $140k probably spent $30k in upgrading it, sold it in 2019 when I had to move for $160k… It just sold for $350k.
I’m also a ‘geriatric millennial’, but I wasn’t in a position to buy until 2009 so my experience was vastly different. I do have some same-age friends who bought in 2007 with stories more similar to yours, though.
Ironically, my mom tried to warn me against buying back then. I would’ve been absolutely screwed if I’d listened to her.
Yeah, it’s the worst financial mistake we ever made. If we had waited just a few months, we would have at least qualified for the bailout money.
We had so many friends that bought in 2009 and 2010 at the bottom and watched them flourish.
It took us 12 years to recover, but we’re homeowners again and ultimate leaving for higher pay finally worked out in our favor. We bought again in 2020 and our down payment was the entire cost of the first house (we went from medium cost of living to very high with incomes to match). We emptied just about everything, but had also been saving hard since selling the shit heap. 5 years later, we’re finally comfortable.