What $520,000 USD buys for a single family home in Cut Off, LA

[02SE]

Humid, flat, flood zone. There is nothing there that appeals to me.

But if you have to live there for job reasons, I can understand that.

 

[GON]

Humid, flat, flood zone. There is nothing there that appeals to me.

But if you have to live there for job reasons, I can understand that.

Country living, plenty of year-round outdoor activities. Maybe the very best dining for the money in the USA, with no other area even a close second. Affordable housing. Numerous major cities in under a four-hour drive.

 

[PandaBear]

The home has a severe flood factor.

This property has a 60.50% risk of flooding over 30 years. This property’s risk of flood is increasing as weather patterns change. Flooding in this area is caused by precipitation, sea level rise, and hurricane storm surge.

As this property is located in a FEMA Zone AE Special Flood Hazard Area, homeowners are required to purchase flood insurance to obtain a mortgage from federally-backed or regulated lenders. Explore quotes for flood insurance from $742 to $1626 per year.

Insurance seems very reasonable, more reasonable than homes in flood not requiring flood insurance. I suspect ay $722-$1626, the American taxpayer is subsidizing and guaranteeing the insurance.

Things don't add up. 60.5% risk of flooding, and only $1626 to insure. I don't think it will stay $1626 for long and insurance company would likely raise rate like heck afterward (maybe Critic can chime in but this sound like the casino would go out of business when you win the jackpot kind of deal), or after a couple claims you would be unable to insure it. When that happen the land would be worthless and you won't be able to sell it, after the building is damaged.

You can argue that SF Bay Area is the same with earthquake but the local economy is strong enough to justify the risk, plus you can build strong enough to withstand earthquake, not sure if your entire area flooding regularly is something you can fix (elevate the road and home?)

It would be cheaper to just buy a home elsewhere without such risk.

 

[GON]

Things don't add up. 60.5% risk of flooding, and only $1626 to insure. I don't think it will stay $1626 for long and insurance company would likely raise rate like heck afterward, or after a couple claims you would be unable to insure it. When that happen the land would be worthless and you won't be able to sell it, after the building is damaged.

You can argue that SF Bay Area is the same with earthquake but the local economy is strong enough to justify the risk, plus you can build strong enough to withstand earthquake, not sure if your entire area flooding regularly is something you can fix (elevate the road and home?)

It would be cheaper to just buy a home elsewhere without such risk.

This is National Flood Insurance. The National Flood Insurance Program provides insurance to help reduce the socio-economic impact of floods. Unlike the property insurance in California, this Insurance is a Federal Government program, subsidized and fully guaranteed by people who chose not to live in a flood zone. No private insurance company would ever sell flood insurance.

https://www.floodsmart.gov/ .

 

[PandaBear]

Country living, plenty of year-round outdoor activities. Maybe the very best dining for the money in the USA, with no other area even a close second. Affordable housing. Numerous major cities in under a four-hour drive.

What I learn over the year is real estate is priced for a reason. It usually has to do with local income and economy mainly. Affordability usually always come with some string attached, either lack of high paying jobs, hostile environment, safety, distance to other resources like roads hospital schools etc, or in this case the land being unstable. About "best dining for the money", do you mean you can eat caviar and lobster half price kind of deal, or you can have all you can eat PB&J sandwich for 20c each kind of deal? You do you but you need to quantify this metric better for us to help you evaluate this.

 

[GON]

What I learn over the year is real estate is priced for a reason. It usually has to do with local income and economy mainly. Affordability usually always come with some string attached, either lack of high paying jobs, hostile environment, safety, distance to other resources like roads hospital schools etc, or in this case the land being unstable. About "best dining for the money", do you mean you can eat caviar and lobster half price kind of deal, or you can have all you can eat PB&J sandwich for 20c each kind of deal? You do you but you need to quantify this metric better for us to help you evaluate this.

You can eat French inspired cuisine, by people who are deeply passionate about food, at McDonald prices.

Here is a 21 JUN 2021 post from me on Bitog on my $9.99 lunch in Houma:
https://bobistheoilguy.com/forums/t...na-louisiana-restaurants.342926/#post-5811061

 

[CKN]

What I learn over the year is real estate is priced for a reason. It usually has to do with local income and economy mainly. Affordability usually always come with some string attached, either lack of high paying jobs, hostile environment, safety, distance to other resources like roads hospital schools etc, or in this case the land being unstable. About "best dining for the money", do you mean you can eat caviar and lobster half price kind of deal, or you can have all you can eat PB&J sandwich for 20c each kind of deal? You do you but you need to quantify this metric better for us to help you evaluate this.

Well said. In this market there are "no deals". And if there appears to be one....there are underlying negative reasons/issues for it.

 

[PandaBear]

This is National Flood Insurance. The National Flood Insurance Program provides insurance to help reduce the socio-economic impact of floods. Unlike the property insurance in California, this Insurance is a Federal Government program, subsidized and fully guaranteed by people who chose not to live in a flood zone. No private insurance company would ever sell flood insurance.

https://www.floodsmart.gov/ .

I remember a documentry about this (or another one similar) likely is underfunded and will not withstand a large hurricane in Florida. You can put your trust in this, like social security and medicare. I wish you the best.

I know by the time I need SS and Medicare they would likely both be bankrupt, so I am planning my own.

 

[PandaBear]

Well said. In this market there are "no deals". And if there appears to be one....there are underlying negative reason/issues for it.

Renting is currently a good deal. The landlord is likely subsidizing 33-50% of the actual cost of owning.

 

[CKN]

Renting is currently a good deal. The landlord is likely subsidizing 33-50% of the actual cost of owning.

True-but the renter is paying all or part of the mortgage. I am putting some money in to a rental condo for the first time in several years-about $3,000.00 dollars. It's paid for. The rent is all profit-after taxes and expenses.

 

[Passport1]

I have flood insurance on my beach house. It is a government administered program as
@GON said. I am in a FEMA AE flood zone. It is reasonable. The rest of my insurance and taxes are ridiculous. I should calculate what every day I spend there costs me.

Maybe I should just get a timeshare.

 

[PandaBear]

True-but the renter is paying all or part of the mortgage.

Well, before the law change squatting is the deal then. Just need to be lucky and not get shot. Seriously though. Currently most rentals are getting 1-3% return on investment if they are lucky. Renters are making money off the money they save in mortgage interest if they put it in CDs or federal loans interest while landlord has to pay the mortgage instead of putting them in CDs and collect interest.

If you buy a home and rent it out, you pay all sorts of tax interest insurance repair and the risk of vacancy. This does not factor in the risk of evicting someone not paying rent, plus you are stuck and cannot move as easily if you want to switch job. If you rent, you can change places as you want, pay as you go, and invest the money you are not paying to earn what? 4-5% on Treasury Bill? CD? RISK FREE.

You can also call your landlord if things are broken, no need to deal with major repair, etc.

The only downside is you can't do cool things like changing the color, gardening, etc. It could be a plus because it won't give your wife ideas on how to spend money.

 

[nomas]

Things don't add up. 60.5% risk of flooding, and only $1626 to insure. I don't think it will stay $1626 for long and insurance company would likely raise rate like heck afterward .

$1626 for Federal Flood Insurance . Completely different than Homeowners Policy . When my home flooded in 2016 it was my Flood Insurance that paid for the repair . I pay about $950 a year .

 

[cptbarkey]

Growing up Houma was the place to go to Waterland USA, in the early 90s as it was the only water park around that wasnt Biloxi Mississippi. You knew it because it was blasted daily on local tv.

I've watched this guy a few times, here he is going to Cut Off. Enjoy

 

[02SE]

Country living, plenty of year-round outdoor activities. Maybe the very best dining for the money in the USA, with no other area even a close second. Affordable housing. Numerous major cities in under a four-hour drive.

No offense intended. If it appeals to you, I hope it works out.

 

[CKN]

Well, before the law change squatting is the deal then. Just need to be lucky and not get shot. Seriously though. Currently most rentals are getting 1-3% return on investment if they are lucky. Renters are making money off the money they save in mortgage interest if they put it in CDs or federal loans interest while landlord has to pay the mortgage instead of putting them in CDs and collect interest.

If you buy a home and rent it out, you pay all sorts of tax interest insurance repair and the risk of vacancy. This does not factor in the risk of evicting someone not paying rent, plus you are stuck and cannot move as easily if you want to switch job. If you rent, you can change places as you want, pay as you go, and invest the money you are not paying to earn what? 4-5% on Treasury Bill? CD? RISK FREE.

You can also call your landlord if things are broken, no need to deal with major repair, etc.

The only downside is you can't do cool things like changing the color, gardening, etc. It could be a plus because it won't give your wife ideas on how to spend money.

Here is what I know for sure. I retired at 55 years of age because I had income property. So you can list all the negatives. But it allowed to to retire early. Are there other avenue for retiring early-sure. But income property allowed me to do so.
BTW-I have never, every had a "squatter," evict someone, etc. That's what background checks are for. Have some left the rental in less than desirable condition after moving out? Sure. The security deposit HAS ALWAYS COVERED IT.

 

[GON]

No offense intended. If it appeals to you, I hope it works out.

No offense at all. I have a job interview in a few weeks in NOLA, so I decided to check out the real estate.

Our kids are adults, so we are open to a place that is safe, values the US constitution, affordable housing, slower pace of life if feasible, and if the place has a non stop flight to Denver that is a bonus.

My motivation dips hard in cold weather. So warm temperatures are a big plus. We love homes on or above water. We looked at Minnesota a while back. Even in the cold Minnesota, no affordable homes on or above water did we find.

I was in McAllen TX yesterday. Unbelievable hidden gem. Very affordable housing, outstanding freshly made food very available day and night. Very safe. Super easy airport to fly in and out of. And a ton of business and industry growth in the area.

My wife would love to return to Utah. Much of Utah has become one massive California suburb, bringing all the disadvantages of living in California to Utah, not having any of the benefits that one gets when living in California , and steadily killing off all the advantages Utah was wonderfully known for prior to it becoming a "California suburb".

 

[CKN]

Are parts if Utah crowded? Sure. The total population of Utah is just shy of 3.3 million. The current population of California is 39 million.

Depending on the criteria of a particular survey-Utah always ranks near the top for a desirable place to live and the state is very fiscally responsible.
But yea-you can buy anything decent along the Wasatch front for a half-million.

 

[AZjeff]

GON has numerous compelling reasons to look at this location, potential job nearby, lots of quality restaurants, lots of water, large cities within 4 hours, warm climate (high humidity) , cheap real estate (high potential of flooding). This might be the perfect house if he gets the job in NOLA. My list of desirable criteria has nothing from his list. Best of luck!

 

[GON]

GON has numerous compelling reasons to look at this location, potential job nearby, lots of quality restaurants, lots of water, large cities within 4 hours, warm climate (high humidity) , cheap real estate (high potential of flooding). This might be the perfect house if he gets the job in NOLA. My list of desirable criteria has nothing from his list. Best of luck!

AZJ,

Sell your Arizona "dude ranch" and grab this 2020 built waterfront home in Slidell, LA for $760k USD.

https://www.realtor.com/realestatea...dell_LA_70461_M84851-58112?from=srp-list-card