New apartment

[ndcent]

To buy yes, I was thinking in a backwards manor to the poster before you about selling and how this is a horrible time to sell.

Not a horrible time to sell if you're buying UP. Sure you may take a hit, but if you have the means and are looking at going bigger/better the small hit you take with your own sale could be hugely offset by the loss the seller of the home you'd buy is taking.

I hope that makes sense haha.

Prices are down across the market.

I'd take a $5k loss to buy a better house where someone was losing $45k.

 

[BrianSD_42]

Don't listen to people!! Buying a home does NOT save money! Trust me! Renting a townhome or apartment is a good idea esp if you don't have a family or have a small family.

I have to agree with Thai here.. I have had this discussion with many friends and coworkers but so many people are ignorant of the simple truth that buying is NOT ALWAYS the best option.

Even with 3% home value growth it takes several years to break even on a house; this is the point where you could sell it and walk away ahead.

There is something called the "Rent to own index" that is different for each city. Look up your city (if you are in CA then you are probably screwed)

In CA you typically have to make payments on a house for 8 years before you can sell it and walk away EVEN. That is assuming the market doesn't crash or you don't get laid off.

Myself ... I am saving up cash and when I get to 50k in savings then I will buy somewhere specifically to rent it out. It will not be my primary and I will not be underwater or dependent on staying in the same job to keep the house.

I have known too many friends and family members that have been hosed by the housing boom.

:bash:


THIS LINK IS PRETTY GOOD ---> http://www.zillow.com/blog/research...g-still-beats-renting-after-only-three-years/

 

[Kung]

I have to agree with Thai here.. I have had this discussion with many friends and coworkers but so many people are ignorant of the simple truth that buying is NOT ALWAYS the best option.

Even with 3% home value growth it takes several years to break even on a house; this is the point where you could sell it and walk away ahead.

There is something called the "Rent to own index" that is different for each city. Look up your city (if you are in CA then you are probably screwed)

In CA you typically have to make payments on a house for 8 years before you can sell it and walk away EVEN. That is assuming the market doesn't crash or you don't get laid off.

Myself ... I am saving up cash and when I get to 50k in savings then I will buy somewhere specifically to rent it out. It will not be my primary and I will not be underwater or dependent on staying in the same job to keep the house.

I have known too many friends and family members that have been hosed by the housing boom.

:bash:

That also heavily depends upon how one buys. Both of my houses (the first one I've owned as well as my current one) were houses that were loaded with potential, but didn't have discerning owners.

For example: Our current house had/has steel siding on the outside, full basement, 2.5 acres, 2 bedrooms, and an attached carport with a fully trussed roof AND a building-grade concrete slab. Why did the owners sell?

Because they wanted to totally redo the inside and felt it would be too much money. So they sold it to us.

Well, they'd torn down all the wallpaper, carpeting, etc. We had to spend about $500 on the bathroom, $1000 for carpeting upstairs, and about $2000 to get the kitchen set up the way we wanted it.

I recently finished the basement by myself with some assistance; one room (from nothing to finished) cost me about $1200; the other was $1500.

Now, for many, that might not have been feasible. *BUT* we got the house - which appraised at $100K before the housing bust, and $88K after - for a good $20K less than the lower estimate above.

All because the owners didn't want to do the work. You KNOW you got a good deal when literally every guy who walks in to do work says "Damn! I wanted to flip this house!" LOL

Granted...it took us some time. But that being said, while I can't generalize for most, I can say I had a TON more time as a single man than I do now. LOL

 

[BrianSD_42]

The key takeaway being .....

the simple truth that buying is NOT ALWAYS the best option

There are a lot of US cities where it is a good time to buy and you can breakeven in 2 years at current growth ... unfortunately I don't live near any of those cities.

Also there is uncertainty .... SO MUCH uncertainty right now that could affect the market in next 2 years and cause housing to go down again.

I really don't need to list all the uncertainty but as long as everyone realizes that whatever affects unemployment levels, stock market and GDP will also affect the housing market.

 

[westwind77]

Even with 3% home value growth it takes several years to break even on a house; this is the point where you could sell it and walk away ahead.

It is not always about walking away ahead. It is about reducing loss. If you rent for $1500 a month for 2 years that is. $36,000 you will NEVER seen again. If you purchase a house, and sell it after a couple and take a 10k hit you are still $26,000 AHEAD of the 'game'. Think of the 4R mods that could buy you . I know owning is not always the best, but in the end it comes down to $$$$ in your pocket. The best option is the one that will keep the most in your pocket.

 

[Acidmeld]

A house should be a home and an investment, not on or the other. I just bought my house almost 3 months ago and it is my first house.

Home wise, it had everything I want. 30ft deep 2 car garage, 4bed, 3 bath, 2500sqft, unfinished basement, acre of land, big master suite. Plenty of room to grow a family into.

Investment wise, the house was priced 40k below appraisal at 105k. I still knocked them down to 100k. The only downsides were the bedrooms and living room needed carpeting and the landscaping needed work. I bought my house to live in a long time so I'm focused on repairs that can last a while and basically just require a little time and energy to get done.

 

[priestsallore]

Agreed with acid. Reguardless of a home or apt, its still my home, and ill make the best of it.... Now, if only i had my favorite t4r guests for a house warming party....haha:beer:

 

[BrianSD_42]

It is not always about walking away ahead. It is about reducing loss. If you rent for $1500 a month for 2 years that is. $36,000 you will NEVER seen again. If you purchase a house, and sell it after a couple and take a 10k hit you are still $26,000 AHEAD of the 'game'.

Sorry but you don't always come out ahead. It normally takes years to break even and then you become "ahead". Those X years are to cover the closing costs, taxes, and interest on the loan. It is not as simple as "pay for 2 years, you will always be ahead" -at least not in CA.

 

[Kung]

There are a lot of US cities where it is a good time to buy and you can breakeven in 2 years at current growth ... unfortunately I don't live near any of those cities.

Probably the best point - what you said above, and know the market.

We bought our house for several reasons:

- didn't mind doing much of the work ourselves
- wanted a small mortgage (not even kidding when I say that my mortgage is less than a new car payment)
- living outside a fort, I can say that even in a depressed economy, it's fairly easy to sell houses

Long as you know the market, know what attracts people, and ensure you get a GOOD deal, it's not at all hard to get even on, and maybe even turn a profit on, a house. I sold my very first house 2 months after the bottom fell out of the housing market, and STILL made a healthy profit.

 

[theizzardking]

A house should be a home and an investment, not on or the other. I just bought my house almost 3 months ago and it is my first house.

Home wise, it had everything I want. 30ft deep 2 car garage, 4bed, 3 bath, 2500sqft, unfinished basement, acre of land, big master suite. Plenty of room to grow a family into.

Investment wise, the house was priced 40k below appraisal at 105k. I still knocked them down to 100k. The only downsides were the bedrooms and living room needed carpeting and the landscaping needed work. I bought my house to live in a long time so I'm focused on repairs that can last a while and basically just require a little time and energy to get done.

****, i'm moving to CO for sure now..... 3k sq ft on 1.09 acre @ $309k here.... that makes me a sad panda....all that for $100k.....washington is doing something wrong...haha

 

[JohnsD90]

****, i'm moving to CO for sure now..... 3k sq ft on 1.09 acre @ $309k here.... that makes me a sad panda....all that for $100k.....washington is doing something wrong...haha

Jobs also will pay less, or the area is bad, or there is some downfall. its all accordingly but you know that already. I like higher home values, keeps the neighboorhoods nicer, usually get a higher quality person, usually.

 

[Kung]

In Missouri I have that for about $70K. xD

 

[theizzardking]

Jobs also will pay less, or the area is bad, or there is some downfall. its all accordingly but you know that already. I like higher home values, keeps the neighboorhoods nicer, usually get a higher quality person, usually.

there's a 12% pay difference between the states (WA and CO), i don't think my house is in a 3x's as nice of a neighborhood or is 3x's as nice as his, but for some reason it costs 3x's more.... or 300% more vs a 12% difference in the minimum wage, you and me just don't know any better because we come from rich liberal states .......and to be honest i don;t know the CO that well but i don't think there are many slums.....in fact lol @ the slums of colorado, probably more like some red neck's in trailer like here or other similar type states....no real slums say like chi-town or clevland and the like.

 

[Acidmeld]

Jobs also will pay less, or the area is bad, or there is some downfall. its all accordingly but you know that already. I like higher home values, keeps the neighboorhoods nicer, usually get a higher quality person, usually.

The wages are a bit lower, however, gas, food, utilities, insurance, and pretty much every other cost of living is lower. Plus, I'm in the desert and less than 15 min from the mountains. Prime location for sand, mud, and rock wheeling. All my neighbors are friendly, stick to themselves type people. No whining about fence lines being 3 inches one way or another since houses are spread so far apart. Definitely not the slums by any stretch. Going back to the market, I know I picked the right time to buy. I figure with a small market upswing and the repairs I've done I could easily make a good profit. However I didn't buy mine to flip, I bought it to live in. I spent 12 years in apartments because I didn't know where I wanted to end up. I lived in WI, Chicago, SC, and never bought because I always wanted to move on. Once I got married and settled down, that's when I decided to buy.

Couldn't be happier and anyone on here is welcome to stop by for a beer anytime.

 

[BrianSD_42]

I'm also skeptical that the "slums" in CO are that bad. Are they like the shady parts of LA, Oakland, Chula Vista ect... thats just California. I've always heard pretty great things about CO. I'm sure it has its bad parts but I doubt its anything like Chicago or Detroit.

 

[priestsallore]

Couldn't be happier and anyone on here is welcome to stop by for a beer anytime.

Put me down! Just have some ice tea instead of beer for me haha.

 

[broncosi]

how much do you pay for home insurance?

wut?

 

[madtrevor]

Owning a house is like having a baby...you are always going to spend money on it and you are going end up spending (a lot of) money on things you never expected to buy. Unless you buy the 'perfect' house, which I doubt anyone does, you are going to be spending some weekend hours at Home Depot and Lowes. I didn't want to be in this net and I rent an apartment from private park apartments peter cooper village. It is the best choice, a good cost for rent and I don't need to care about what to buy for it.