frenchyd said:
z31maniac said:
According to Investopedia, the average net profit margin for retail and commercial banks in the US is 24%. Not exactly what I would call razor thin when you see profit margins in the low single-digit range for most manufacturing companies in the US. That's Apple level net profit margin.
Facebook is 41%, while Amazon is 6%.
I do hope you understand margins and profit are two different things.Grocery stores work on thin margins but because of the volume their profit can be very considerable.
I had a big long post written out explaining how you didn't differentiate between what margins with banks (net profit margin, net interest margin, how that is impacted by the federal funds rates), didn't provide sources for your productivity increase and cost reduction claims, or your condescending "banks have all the money remember?" or "I hope you understand margins and profits are different" even though I specifically used "net profit margin," so it wouldn't be confused with gross margin or any other measurement.
No business uses just "profit" or just "margin" as a KPI. They use Sales Revenue, Gross Margin, and Net Profit Margin, for example.
The fact is, you consistently post factually incorrect, inconsistent, or irrelevant information on this board when it comes to financial discussions.
z31maniac said:
frenchyd said:
z31maniac said:
According to Investopedia, the average net profit margin for retail and commercial banks in the US is 24%. Not exactly what I would call razor thin when you see profit margins in the low single-digit range for most manufacturing companies in the US. That's Apple level net profit margin.
Facebook is 41%, while Amazon is 6%.
I do hope you understand margins and profit are two different things.Grocery stores work on thin margins but because of the volume their profit can be very considerable.
I had a big long post written out explaining how you didn't differentiate between what margins with banks (net profit margin, net interest margin, how that is impacted by the federal funds rates), didn't provide sources for your productivity increase and cost reduction claims, or your condescending "banks have all the money remember?" or "I hope you understand margins and profits are different" even though I specifically used "net profit margin," so it wouldn't be confused with gross margin or any other measurement.
No business uses just "profit" or just "margin" as a KPI. They use Sales Revenue, Gross Margin, and Net Profit Margin, for example.
The fact is, you consistently post factually incorrect, inconsistent, or irrelevant information on this board when it comes to financial discussions.
Wow. Somebody is actually posting factually incorrect information on the internet.
I will alert the proper authorities.
In reply to Snowdoggie :
Meh, I expected to get flogged some for the post. It just gets old to read the same story with the same information in every thread. Judging by some other posts and the votes for them, I'm not alone.
z31maniac said:
In reply to Snowdoggie :
Meh, I expected to get flogged some for the post. It just gets old to read the same story with the same information in every thread. Judging by some other posts and the votes for them, I'm not alone.
Sometimes you gotta have a sense of humor about it. Just tell Officer Ronald that the crazy bus driver in the Jaguar went that way. 
A data point on real estate prices in North Vancouver. Our house went on the market last Thursday at $1,539,000 we opened offers at 12:00 yesterday. We had four offers one way low two at $1,450,000 with subjects, and the winner $1,480,000 cash sale no subjects closes Dec 9.
The winning bid beat our expected sale amount by $80,000.
My 15 year old Alaskan Malamute is on his last legs. This morning he fell, could not get up and crapped all over himself. I was in the middle of trying to pick my dog up. He is crying. I am covered in dog E36 M3. The phone rings. I am expecting either a call from my office confirming I will be in late today or a call from my vet about what will probably be Rocky's last trip.
"Hello! this is Jennifer from Low Ball Realty. I hope you are doing well today. I would like to make a cash offer on your house!"
I get calls from these people at least three times a week both at home and at work not to mention the endless letters and postcards wanting to give me an offer on my house. Some of them even drive by and leave cards on my door. These people are pests. With a halfway decent economy and Covid going on, nobody is selling right now.
I am NOT interested in selling my house. It is almost paid for and rent and other houses are stupid expensive here. It is probably the best investment I have.
Let's just say that "Jennifer" learned a few expletives this morning that I didn't even know that I knew.
Got another unsolicited offer and its high enough that I really need to sit down and do the math and think if I should take it. Its big enough that I could pay cash for something not on the coast. I could build a 1-1.5K shop and have zero payment. Would double my commute but it means my wife could retire before she was 50 if she wanted. I fired back with a number 50K higher and they said they would take it back to the buyer who has seen the home.
Its bonkers out here again. ~400 single family homes are available in the county that are priced in line with the real world. 400 homes for 3.2 million people in the county.
Market is crazy in my area as well but it will soon come to a downward spiral. With the mortgage rates soon to go back up, election, and when the jobs lost due to the pandemic hits the fan house prices will take a drastic turn. Same with construction, with the price of materials and availability of them it has to stop.
started to see houses advertised as having "reductions".... I think the weather closing in here is slowing things down.. need to wait until spring to sell i guess..
In reply to Placemotorsports :
I hadn't thought about the materials cost related to existing home prices, but you're right. I priced some lumber for my barn project, and it was roughly triple what I paid for the same stuff a few years ago. I dont know if other things like drywall, electrical, etc have followed the same path but it has to cause a huge price spike in new home construction. It stands to reason that increased new construction cost would raise prices on existing homes.
It is kind of crazy what's been going on. I live in an area that has always been below national average for housing costs. In the last decade I have watched rent prices go up 2-3x what I was paying before we bought our first place, and home prices have also gone up substantially. I definitely understand why so many young people that are trying to get themselves established feel like the system is rigged.
In reply to Placemotorsports :
Hard to say... as long as interest rates are so low, prices are likely to remain stable simply due to investors buying houses to rent and/or hold.
I was really hoping to do a major renovation on my house in 2021, but between material costs and the difficulty in finding contractors, I am starting to reconsider and just do some DIY projects to improve livability and wait to do the major rebuild until the market cools down a bit.
wearymicrobe said:
Got another unsolicited offer and its high enough that I really need to sit down and do the math and think if I should take it. Its big enough that I could pay cash for something not on the coast. I could build a 1-1.5K shop and have zero payment. Would double my commute but it means my wife could retire before she was 50 if she wanted. I fired back with a number 50K higher and they said they would take it back to the buyer who has seen the home.
Sounds like you could retire right now if you really wanted to :P
Lumber costs are stupid high right now, wait it out if you want to build.
In reply to Antihero (Forum Supporter) :
Exactly...I was quoted on a garage build that I've been trying to get done for a while and wanted to start in the spring. Guy called back a few weeks ago and said he would have to requote it beginning of the year since the cost of lumber has nearly doubled. At that rate, it would be cheaper just to buy a bigger house with the bigger garage already there
Antihero (Forum Supporter) said:
Lumber costs are stupid high right now, wait it out if you want to build.
Yeah It sucks cause I am about to build a garage hopefully.
Placemotorsports said:
In reply to Antihero (Forum Supporter) :
Exactly...I was quoted on a garage build that I've been trying to get done for a while and wanted to start in the spring. Guy called back a few weeks ago and said he would have to requote it beginning of the year since the cost of lumber has nearly doubled. At that rate, it would be cheaper just to buy a bigger house with the bigger garage already there
The "experts" say lumber prices are up 10-15%. They obviously haven't been shopping in my stores. Our prices are up more like 100%.
spitfirebill said:
Placemotorsports said:
In reply to Antihero (Forum Supporter) :
Exactly...I was quoted on a garage build that I've been trying to get done for a while and wanted to start in the spring. Guy called back a few weeks ago and said he would have to requote it beginning of the year since the cost of lumber has nearly doubled. At that rate, it would be cheaper just to buy a bigger house with the bigger garage already there
The "experts" say lumber prices are up 10-15%. They obviously haven't been shopping in my stores. Our prices are up more like 100%.
We need to rebuild our front steps. I'm having my brother do it. He's having trouble even getting the lumber.
My grandmother passed away a couple of weeks ago. She had been in the same house about 20 miles South of Boston since the early 50's when they bought it for around $11k. My father, and his sister put the house on the market about a week ago, and had an offer for $27k more than asking price within 24 hours with no home inspection requirement!! Apparently the buyers have been out bid by other buyers on 27 other houses, and didn't want to lose out on this one. The selling price is $402k which is a pretty good return on $11k. Of course according to Zillow our house is only worth roughly $6k more than we paid for it 15 years ago which was at the peak or so of the housing bubble. I don't understand the valuation. We have probably 4x the land, a garage, and a house that is 30 years newer, but we're 45 miles South of Boston.
11GTCS
Reader
10/28/20 3:02 p.m.
Several 1,300 sq ft or so / .75 acre lot / early 60's ranches in our general area have sold from the high 300's to the mid 400's depending on the amount of renovations. We're 40 miles SW of Boston in a decent town with commuter rail access. Glad I got here in the early 90's before things blew up. Ours is a 2000 sq ft cape with a recent kitchen / family room, a 2 car garage and a nice level .75 acre lot, can only imagine what ours could be worth if that's what ranches are selling for. Crazy is one word for it.
Mazdax605 said:
My grandmother passed away a couple of weeks ago. She had been in the same house about 20 miles South of Boston since the early 50's when they bought it for around $11k. My father, and his sister put the house on the market about a week ago, and had an offer for $27k more than asking price within 24 hours with no home inspection requirement!! Apparently the buyers have been out bid by other buyers on 27 other houses, and didn't want to lose out on this one. The selling price is $402k which is a pretty good return on $11k. Of course according to Zillow our house is only worth roughly $6k more than we paid for it 15 years ago which was at the peak or so of the housing bubble. I don't understand the valuation. We have probably 4x the land, a garage, and a house that is 30 years newer, but we're 45 miles South of Boston.
About 70% of houses in 1 mile radius of me are all advertised as "no inspection, no appraisal," and around here its code for "Asian cash $ only". $1.8-2.4M houses DOM average is 3 days here.
I just did an off market deal closed it Oct 15th for a rental property (this is my 3rd deal this year, no realtor either side) - and put for rent for $3,800. I had 7 applications within 6 hours of listing. Rented it that evening. Pediatrician 2 kids, 2 year lease. Around here, everyone cashing out their houses, and then renting.
A friend of mine sold a liveaable project house he moved out of. 3 years ago he couldn't get 20k with the rest of the supplies included. Sale was finalized this morning at 61k.
Peabody
UltimaDork
10/28/20 4:05 p.m.
It's crazy around here too.
We moved in to this place in 2000 and paid $175k. Right now we could easily get a mil but we both really like it here - her a lot more than me. If it was just me I'd take that mil and buy a place a few hours north or east for $125k and bank the rest.
But it ain't just me.
In reply to 93EXCivic :
Seriously , don't.
I'm a contractor and I'm telling people to wait a bit. Prices are literally triple or way more. A 2x6 stud was 1.09 at the start of the year. I was quoted 7.89 last week.
It's not worth it right now.
Placemotorsports said:
In reply to Antihero (Forum Supporter) :
Exactly...I was quoted on a garage build that I've been trying to get done for a while and wanted to start in the spring. Guy called back a few weeks ago and said he would have to requote it beginning of the year since the cost of lumber has nearly doubled. At that rate, it would be cheaper just to buy a bigger house with the bigger garage already there
It is and I don't blame him. Im telling people to wait or at least that lumber prices may change at any moment from the bid.
Another example: I have a guy that wants a built roof with 2x10s( way overkill but that's what he wants) 11.95 in March. Now just under 49 bucks a piece. Apparently prices are so high that they are cutting up 2x10 and 2x12, even 2x8 to make a couple 2x4s and 2x6s.
It's insane
