The Bad News Report

[urbanlover568]

This isn't HB2 related, but lots of recent job cut announcements. Brexit being the cause for Metlife.  

 

Dollar Tree - 270 jobs

TE Connectivity - 350 jobs 

Metlife - Unknown 

Ryder Integrated Logistics - 124 jobs

Edited August 4, 2016 by mpretori

[CLT2014]

Dollar Tree looked at NC (probably the Matthews campus) per Hampton Roads area news when deciding where to locate the combined HQ. I'm sure HB2 made it a done deal to stick with Virginia and the Matthews layoffs were a result. 

Ryder's layoffs are a result of a broader slowdown in the freight market. The largest trucking companies are parking trucks to keep rates high enough to break even. There is way more supply of trucks than there is demand for freight right now (read into that how you like about what that means for the economy).

 

[kermit]

^ Yup, Family Dollar's white-collar employment in Matthews is near its end. However, Dollar Tree won't get their Chesapeake HQ completed for 3-4 years so the few folks still at the Dollar when that time comes will have time  to arrange soft landings.

Edited August 5, 2016 by kermit

[urbanlover568]

9 minutes ago, CLT2014 said:

Dollar Tree looked at NC (probably the Matthews campus) per Hampton Roads area news when deciding where to locate the combined HQ. I'm sure HB2 made it a done deal to stick with Virginia and the Matthews layoffs were a result. 

Ryder's layoffs are a result of a broader slowdown in the freight market. The largest trucking companies are parking trucks to keep rates high enough to break even. There is way more supply of trucks than there is demand for freight right now (read into that how you like about what that means for the economy).

 

This is dollar tree's future HQ. 

 

[KJHburg]

I am not sure Dollar Tree the acquirer of Family Dollar  was serious about expanding or moving their HQ here. I think they mentioned it to get incentives out of VA as they are pretty entrenched in Chesapeake VA. Companies do that all the time as you know. Famous example was Sears when they flirted with the new Ballantyne development in the early 1990s and stayed in IL. 

[SgtCampsalot]

Oh my, my childhood best friend's dad has worked at that Family Dollar HQ for decades. At least everyone has time to figure out their situation.

[AP3]

The layoffs at Family Dollar were a result of shared services and reducing costs between departments, not HB2.

[Dale]

Dollar Tree - everything's a dollar

Dollar General - generally, everything's a dollar

Family Dollar - every family member needs to pitch in a dollar

 

 

[Niner National]

My mom's friend got notice yesterday that she was being laid off and had until the end of the year. She worked for Family Dollar for over 30 years.

 

[KJHburg]

Charlotte is one of the worst for renters looking to buy a home according to Zillow. However I don't understand this given our compared to the nation moderate home prices. This seems to be more credit score driven.  http://www.bizjournals.com/charlotte/news/2016/08/15/zillow-charlotte-renters-struggle-in-buying-a-home.html?ana=RSS%26s%3Darticle_search&utm_source=dlvr.it&utm_medium=twitter

[cjd5050]

1 hour ago, KJHburg said:

Charlotte is one of the worst for renters looking to buy a home according to Zillow. However I don't understand this given our compared to the nation moderate home prices. This seems to be more credit score driven.  http://www.bizjournals.com/charlotte/news/2016/08/15/zillow-charlotte-renters-struggle-in-buying-a-home.html?ana=RSS%26s%3Darticle_search&utm_source=dlvr.it&utm_medium=twitter

It's Zillow.....

Charlotte has a homeownership rate of 61.3% which is pretty darn high and pretty low home prices.  This means that most people who want to purchase a home and who can purchase a home do purchase a home.  The renters who struggle to purchase here struggle for personal reasons, like as you mention their credit score, and would struggle anywhere.  Has nothing to do with Charlotte.

[KJHburg]

I agree that Charlotte is a good place to buy compared to most US cities. It is more expensive to rent here than buying  just as it is in  Atlanta, Dallas, Houston etc  Zillow is based in Seattle and maybe they are trying to make themselves feel better. Seattle is expensive to rent and even more expensive to buy. Other factors are coming into this study.  

[alb1no panther]

Zillow isn't in the business of forecasting, and that headline is nothing if not inflammatory.  Cost of living here is nothing, and property values are sky rocketing.  Let the public perception [if that's what Zillow is] continue; meanwhile, the people who actually do their homework will clean up.

[tozmervo]

If someone makes any kind of financial decisions based on what they find at Zillow, they deserve whatever they get. 

[cjd5050]

16 hours ago, KJHburg said:

I agree that Charlotte is a good place to buy compared to most US cities. It is more expensive to rent here than buying  just as it is in  Atlanta, Dallas, Houston etc  Zillow is based in Seattle and maybe they are trying to make themselves feel better. Seattle is expensive to rent and even more expensive to buy. Other factors are coming into this study.  

Not sure I follow you when you say it's more expensive to rent that to buy in Charlotte.  

[KJHburg]

It is more expensive to rent a comparable size property than own it in Charlotte. This has been the case for many years. I have an investment home that I rent out out and the rent is higher than the mortgage payment would be with a minimum downpayment. Because of very low interest rates and moderate home prices in Charlotte it is cheaper to own here especially if you live in the same place for a couple of years. 

[ES Charlotte]

I have to disagree. I've always been a rent vs buy 1st anywhere based on 2 principals. 

All cash and if not, minimum 30% down  

or

Distressed property 

You have to factor in more than interest...  Maintenance, HOA, property taxes, realtor commissions, etc.. I've read several case studies that state over the course of 30 years (if you do the typical 30 year, low downpayment, etc) your net return was roughly 1%. No Thanks. *I might note there are occasionally exceptions 

[deleted]

^^

I found both of the prior posts to be helpful and interesting.  I have been wrestling with the decision to buy some rental properties for an investment.  I'm still kicking myself for not capitalizing when the market was down in 2009 but feel a little bit better based on the last comment.  Still, if you can rent for more than the mortgage payment, in an appreciating market I think it's a good decision (if you don't get over-extended).  I lack the courage of my convictions unfortunately...

Edited August 17, 2016 by JBS

[KJHburg]

In terms of rental properties which I have several that is my retirement as I am working to pay them off. Paid off real estate is a cash cow and yes there are maintenance costs etc but it is still better in my opinion than the whims of Wall Street etc. People always need a place to live. But to each his own but I can you tell this real estate is the best path to wealth in this country over the long haul. 

[videtur quam contuor]

I just sold an investment property. The long time tenant realized that with the amazingly low interest rates she could buy(+ property tax) for less than her rent.. The down payment was her issue but she resolved that. I was about to raise her rent so this saved her more money there. She knew the property better than I knew it. I was ready to cashout from that one after 14 years. Depreciation had done its work for me at tax time.

[alb1no panther]

6 hours ago, ES Charlotte said:

You have to factor in more than interest...  Maintenance, HOA, property taxes, realtor commissions, etc.. I've read several case studies that state over the course of 30 years (if you do the typical 30 year, low downpayment, etc) your net return was roughly 1%. No Thanks. *I might note there are occasionally exceptions 

Depends on the kind of investment you're looking for.  Real estate is long term (longer than 30 years), and maybe you get some rental income during that time to break even.  Hopefully you built your costs into the rental fee.  If you did and rents aren't strong, well your investment suffering a bit, but nothing to be worried about.  But after those 30 years, say you get another 10-15 of equity built up in it--there's your payoff.  In the end, it just depends on how you're weighting your portfolio, i.e., what other investment meadows have you wandered off into?

5 hours ago, KJHburg said:

People always need a place to live. But to each his own but I can you tell this real estate is the best path to wealth in this country over the long haul. 

This . . . kinda.  Real estate is one of the best options for a low risk of loss of principal and a sufficient return.  Whether you consider that the definition of wealth, I'm not the judge.

 

Interesting to see people's opinions vary so drastically. 

 

eta* house flipping is not an "investment" in any sane sense of the word.

Edited August 17, 2016 by alb1no panther

[Matthew.Brendan]

That's why you put down as much as you can and do a 15 year mortgage. IMHO. 

[CarolinaDaydreamin]

Putting as much into a mortgage as you can could be one of the worst ideas you could possibly do. Tie up your liquid assets while lowering your rate of return. Not a good play.

 

Edited August 18, 2016 by CarolinaDaydreamin
No content

[cjd5050]

7 hours ago, CarolinaDaydreamin said:

Putting as much into a mortgage as you can could be one of the worst ideas you could possibly do. Tie up your liquid assets while lowering your rate of return. Not a good play.

 

While it may tie up your liquid assets it does remove debts.  I think looking at stacking your mortgage depends on where you are in life.  

The goal for my fiancee and I is to have our primary home paid off before we're 50.  We both plan to work to we're 65.  At 50 we plan to purchase our retirement condo with another 15 year mortgage and have that paid off by the time we retire as well.  When we do retire, we're going to sell our main home and invest the proceeds there, either in the market or additional real estate.  

It helps that she will also get a small pension in addition to her stacked 401k from a previous job in the private sector for 20 years and I am a business owner.  We both have skills that easily translate to working longer in a consulting role if desired.  The marker for us is being debt free by the time we reach 65.  

I am interested in how you think this is one of the worst ideas we could have.

 

 

 

 

[alb1no panther]

9 hours ago, CarolinaDaydreamin said:

Putting as much into a mortgage as you can could be one of the worst ideas you could possibly do. Tie up your liquid assets while lowering your rate of return. Not a good play.

 

I'll add that it also enhances your risk.  You essentially get higher risk for lower return.