Potential real estate crash

Amazon / Eng teracotter
Mar 6, 2018 18 Comments

Last year I put a large chunk of my savings that includes most my RSU into my home down payment. I own a single family home in Klahanie and it cost me a fortune. The home price has gone up since I bought it, but off late I have been hearing of a real estate crash that could bring property prices down by as much as 40%. It seems Seattle city is going to charge additional property taxes on non resident foreign investors which will decrease foreign investment thereby bringing down property prices. I’m also hearing that Amazon HQ2 will have a negative impact on house prices. Has anyone else heard anything like this?

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TOP 18 Comments
  • Netflix fs92
    No offense to you, but I'm super happy they're changing the law to tax foreign non resident investors buying up property. I'm hoping it becomes a model for the bay area to follow.
    Mar 6, 2018 0
  • Lyft pooof
    What about buying to rent it out? Should I even consider that? (I really don't need anything more than the 1bd apt I rent for 1500)
    Mar 6, 2018 4
    • Google / Eng lizzie
      It's generally a good idea. Going well for me so far in that area. My houses are on the east side though, not city of Seattle
      Mar 6, 2018
    • Lyft pooof
      Would you ever buy if rent did not cover morgage and you'd have to add a couple hundred per month? How high can one go below break even and still not be crazy
      Mar 6, 2018
    • Google / Eng lizzie
      Truth be told, one of my houses is slightly below cash flow neutral. I am banking on appreciation for that one (so far it's up 200k with my 150k down payment, so more than doubled my money). Betting on appreciation is scary to most people, but I can afford to pay the difference in rent vs mortgage indefinitely if the bubble bursts and I need to wait a few years to sell. In the long run, houses appreciate. Also, rents go up and my interest payment goes down so soon I'll be cash flow positive even on that house
      Mar 6, 2018
    • Microsoft UMbR31
      Teach us Google Lizzie. How do your pick rentals? What are some criteria you use? Why Eastside, aren't you afraid of buying in open-extensible-land like Eastside rather than water-locked Seattle?
      Mar 6, 2018
  • Microsoft Blkman
    The biggest threat to the hosing market is the raise in interest rates. None of the risks that u mention come close to this risk.
    Mar 7, 2018 4
  • Google / Eng lizzie
    Has there been any update on the proposed Seattle real estate tax? Last I heard it was not moving forward. And if it does, that's just Seattle. Looks like your in Sammamish. East of Lake like Sammamish, Kirkland, Kenmore, Bellevue might even benefit from a city of Seattle tax
    Mar 6, 2018 0
  • Google histranger
    Don’t worry- everybody is on the same boat
    Mar 6, 2018 0
  • Seattle can't place taxes on foreign investment. It's literally against the entire legal history of this country.
    Mar 6, 2018 0
  • BlackBerry SolarShift
    HQ2 is years away so don’t worry about it. The foreign buyer tax will take some time to negatively affect housing prices if at all implemented. Overall I see good growth in property values for the next 2-3 years
    Mar 6, 2018 0
  • Microsoft / Eng Bigbirdie
    They will just start buying on the Eastside. You should be safe in Klahanie
    Mar 6, 2018 0
  • Microsoft rqNt00
    We are all on the same boat mate. As long as it’s your primary residence don’t think about it. Just enjoy your home !
    Mar 6, 2018 0
  • Facebook public
    Klahanie? Also yes real estate crashes and then it appreciates again, 1% on average a year. As long as you live there nbd.
    Mar 6, 2018 0

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