Housing market situation

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fraggle092
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Re: Housing market situation

Post by fraggle092 » Sun Jul 19, 2020 1:56 pm

Baltimore wrote:
Sun Jul 19, 2020 10:58 am
The housing market does not follow economics 101 supply and demand principles, until it does...

https://www.latercera.com/la-tercera-do ... JFDGU7NCU/
Sad. The system screws you when you try to play by the rules.
Its not talked about much, but some of the respectably well-off here are into the drugs finance business in a discreet way, using their legitimate businesses to whitewash the profits. It certainly happens in my town. Low risk, if handled professionally through trusted compinches, and high returns.
For many, moral scruples don't seem to get in the way of making money.
Bienvenidos a Chaqueteo City.

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PXYC
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Re: Housing market situation

Post by PXYC » Sun Jul 19, 2020 11:26 pm

fraggle092 wrote:
Sun Jul 19, 2020 1:56 pm
Baltimore wrote:
Sun Jul 19, 2020 10:58 am
The housing market does not follow economics 101 supply and demand principles, until it does...

https://www.latercera.com/la-tercera-do ... JFDGU7NCU/
Sad. The system screws you when you try to play by the rules.
Its not talked about much, but some of the respectably well-off here are into the drugs finance business in a discreet way, using their legitimate businesses to whitewash the profits. It certainly happens in my town. Low risk, if handled professionally through trusted compinches, and high returns.
For many, moral scruples don't seem to get in the way of making money.
The main testemony of this "La Tercera" article didn't followed the rules, he requested loans in different banks for 12 appartments at the same time. This is maybe.. illegal? It's a shame the system allows this to happen.
...
Anyway I worry for people not having a place to live, not so much the small investors that can't rent the
12 properties bougth with money they never had.

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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Jul 20, 2020 1:07 am

PXYC wrote:
Sun Jul 19, 2020 11:26 pm
fraggle092 wrote:
Sun Jul 19, 2020 1:56 pm
Baltimore wrote:
Sun Jul 19, 2020 10:58 am
The housing market does not follow economics 101 supply and demand principles, until it does...

https://www.latercera.com/la-tercera-do ... JFDGU7NCU/
Sad. The system screws you when you try to play by the rules.
Its not talked about much, but some of the respectably well-off here are into the drugs finance business in a discreet way, using their legitimate businesses to whitewash the profits. It certainly happens in my town. Low risk, if handled professionally through trusted compinches, and high returns.
For many, moral scruples don't seem to get in the way of making money.
The main testemony of this "La Tercera" article didn't followed the rules, he requested loans in different banks for 12 appartments at the same time. This is maybe.. illegal? It's a shame the system allows this to happen.
...
Anyway I worry for people not having a place to live, not so much the small investors that can't rent the
12 properties bougth with money they never had.
Specifically, he asked for loans at five different banks, as at the time he got the mortgages, it took up to 60 days for them to show up (presumably, at his credit score).

It sounds more like someone with way more housing than they can afford, rather than someone in trouble with their only mortgage. Although those are most likely also going to be affected by the pandemic. We should start to see lots of evictions and auctions in the next few months.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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El Presidente
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Re: Housing market situation

Post by El Presidente » Mon Jul 20, 2020 10:09 am

Yep, but I took the main point of the article as that there are many of these people who have completely overextended themselves a couple of years before the worst financial/economic crisis this country will see since the early 80's. Once they all start liquidating, well, you know the story.
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fraggle092
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Re: Housing market situation

Post by fraggle092 » Mon Jul 20, 2020 11:45 am

PXYC wrote:
Sun Jul 19, 2020 11:26 pm
The main testemony of this "La Tercera" article didn't followed the rules, he requested loans in different banks for 12 appartments at the same time. This is maybe.. illegal? It's a shame the system allows this to happen.
Didn't make my comment very clear, but I wasn't sympathising so much with this individual except as the victim of a system that allowed him enough rope to hang himself. Of course he overextended, and there are of course many Chileans in worse circumstances.

I was actually referring to this grossly materialist society where getting money to conspicuously consume seems to be the only point of life. Hence the drug dealing example. But maybe I should have kept my ideas to myself!
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hlf2888
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Re: Housing market situation

Post by hlf2888 » Mon Jul 20, 2020 11:49 am

I think on a global scale, (not just Chile) commercial real estate (including malls) and condos are going to plummet. More people will tele-work from home as businesses close and offices streamline and modernize and switch to online and tele-workers, and fewer people will want choose condo prisons over a suburb home with a patch of yard. Best time to buy might be when they hit bottom in 6 months-1 year.

Of course, I am applying market logic using the old normal logic, who knows with the new normal?

Britkid
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Re: Housing market situation

Post by Britkid » Mon Jul 20, 2020 1:44 pm

Thanks for the interesting article, and the other interesting part was evidence of rents in decline. Has anyone asked for a discount on their rent? How'd it go?

Baltimore
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Re: Housing market situation

Post by Baltimore » Mon Jul 20, 2020 1:58 pm

I haven't, but my sister got a 50% discount on rent for a tiny apartment in Barrio El Golf until things get back to "normal", whatever that means.

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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Jul 20, 2020 2:06 pm

Britkid wrote:
Mon Jul 20, 2020 1:44 pm
Thanks for the interesting article, and the other interesting part was evidence of rents in decline. Has anyone asked for a discount on their rent? How'd it go?
I asked for a discount in rent because I knew the market was pretty much dead (not because I needed it). My contract would run out on June 30, so I reached out to my landlord in March to check if they would be willing to budge. They weren't, so I started to look for options.

I was previously paying $850.000 for a furnished, 600 sqft, two-bedroom apartment close to the corner of Apoquindo and Manquehue, in Las Condes. It was at a desirable location and I got it during the protests last year (IE. I moved in a hurry, I didn't have time to shop, I was previously living next door to the protests), so I was surely overpaying a bit. I found similar apartments going as low as $650.000 in the same area, or slightly lower in other areas close-by.

I eventually rented a non-furnished, 900 sqft, two-bedroom apartment in Concón for $450.000. I now have a sea view and I'm living at an apartment 50% larger and I'm paying much less for it. I'll most likely buy it in 1-2 years. I'm fortunate that the industry I work at wasn't really hit by the pandemic, so I was in a good position to shop around.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

Baltimore
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Re: Housing market situation

Post by Baltimore » Mon Jul 20, 2020 2:17 pm

Yeah, but I don't think the shock will hit all properties evenly. I think it is unlikely that a nice large house with a backyard in, say Las Condes or La Reina, will go for 50% less than the average price from last year. It is mostly apartments and tiny properties that will get hit. I would love to be wrong though since I'm in the market for a house and a parcela in the south :)

GAminer
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Re: Housing market situation

Post by GAminer » Mon Jul 20, 2020 2:53 pm

tiagoabner wrote:
Mon Jul 20, 2020 2:06 pm
Britkid wrote:
Mon Jul 20, 2020 1:44 pm
Thanks for the interesting article, and the other interesting part was evidence of rents in decline. Has anyone asked for a discount on their rent? How'd it go?
I asked for a discount in rent because I knew the market was pretty much dead (not because I needed it). My contract would run out on June 30, so I reached out to my landlord in March to check if they would be willing to budge. They weren't, so I started to look for options.

I was previously paying $850.000 for a furnished, 600 sqft, two-bedroom apartment close to the corner of Apoquindo and Manquehue, in Las Condes. It was at a desirable location and I got it during the protests last year (IE. I moved in a hurry, I didn't have time to shop, I was previously living next door to the protests), so I was surely overpaying a bit. I found similar apartments going as low as $650.000 in the same area, or slightly lower in other areas close-by.

I eventually rented a non-furnished, 900 sqft, two-bedroom apartment in Concón for $450.000. I now have a sea view and I'm living at an apartment 50% larger and I'm paying much less for it. I'll most likely buy it in 1-2 years. I'm fortunate that the industry I work at wasn't really hit by the pandemic, so I was in a good position to shop around.
How were you able to change regions during this quarantine?

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admin
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Re: Housing market situation

Post by admin » Mon Jul 20, 2020 2:56 pm

let's see. We really did not need the money, but cash is king right now and we are more battening down the hatches and conserving liquidity. if things get worse, we are ready. if things are not as bad as they look, then we got a war chest to jump on some opportunities.

We had three calls this weekend on a property we already sold in pichilume. we have not taken down the sign. so there is some action out there for none-apartment real estate outside major urban areas.

did negotiate a 50% cut in our office rent in frutillar. more like forbearance, to be added on to our rent at a later date, and reassessment in 3 months with the owner. our leverage there was simple. we have never missed a rent payment in 10 years, and we told the owner we really have no use for the office at this time or any idea when the next time we will have employees there or a meeting with clients there in person. so, was kind of inclined to let it go, expecting a whole lot more commercial spaces in town would be available towards the end of this mess (e.g. every restaurant in town). They cut our rent in half, so the hassle of moving vs. hanging on to it won the day.

negotiated a freeze on the mortgage payments on our Santiago office. again, an office we don't even know when we will be able to get to it again. For my wife and I , that means when it is safe to fly again and clients are flying in to Santiago again. everyone there is happily working from home.

watch out however for the frigen banks.

Santander offers us a mortgage freeze on our house payment. we ask for more information, as allegedly it suppose to have zero interest. I know they are not doing it out of the goodness of their heart, so definitely want to see the letters chico.

next thing we know we are getting a call from Santander that our mortgage payment is late.

WTF?

assholes stopped the automatic payment we have setup to pay our mortgage, while they process an application to suspend our mortgage payment, we never asked for, and did not accept the terms. Had some pissed off calls to our executive about fixing that BS fast.. not getting our credit rating screwed-up with their bullshit promotions.
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