In todays economy would you..

**CptAmericaX** · 04-18-2009, 01:40 PM

Originally Posted by J-Dogg

The thing about buying a house.....

You could be stuck with it. There is no garantee the market is not going to drop more. If you buy a house, you might be able to get a good deal, but you could be living in that house until you sell it. If you are young, and may want to move in the near future it would be a bad idea.

There are lots of surprizes with houses too, maybe a furnace breaks, a hot water heater, things can get expensive to upkeep them, even if it's a newer home.

I own 5 homes, 4 of them are investment properties, but between the insurance, taxes, water/sewage bills, and maintenance, you can pretty much plan on taking your payment and doubling it.

I'm a contractor and have a friend who owns a restoration company, we work with him. We had a rain storm that washed out his basement wall. Because it was ground water, insurance won't cover the repairs. It comes out to be about 30k in damage.

If he put that 30k in, he would never get the money back. He just walked away, let the bank take the house and took a hit on his credit for 30k.

Expect things to come up if you buy, I've found taking your payment, doubling it + a little and that's about what you are going to be paying out (in my area anyway).

Jeez that didnt happen in alaska did it, I think my friend bought that house. haha but really that sucks tho.
as far as buying and then later If i move just renting the house out yah I could see that being really difficult, I really dont know all these are great points, I know since im military I dont need a down payment and I can get a VA loan at like 4% so Its really a should I or shouldnt, people mention buy buy buy, but then again you guys are absolutly right if my water heater exploads or something, thats gona be spendy . i dont know I really dont

**T_Own** · 04-18-2009, 02:04 PM

jdogg is right about not getting your moneys worth from things. in my moms new house (moved 4 years ago now, it was built 9 months before we got there, one previous owner) we paid like $250k for it, we thought it was a great price, coming from a suburb, 250k doesn't get you much at all, so this house was pretty nice. people said she overpaid on it, and about a year later she had semi finished the basement (drywall + linoleum floors) and put a $35k deck on the back part, nice deck with the fake wood so it lasts longer, multi level, pretty big. but then the next year the house was appraised at 233k, and this was before the economy took a downturn.

but the idea is that you generally will live there for a while, unless its part of your job to move a lot, then i'm assuming your company helps out a lot. so i think in the long run its a good investment, and there will always be upkeep costs.

**CBGB** · 04-18-2009, 03:34 PM

Sounds like you're still on the fence. If you aren't ready, then you arent ready. I wouldn't go in with 4%. Part of knowing you are ready is being financially responsible. (not saying your not) Make sure you have the ability to save for a rainy day first. As far as renting it out goes.... I couldn't sell my prior house before closing on my new one. Had to make payments on both places for two months. I brought in a local property manager and he is renting it out. Now someone else is paying my other mortage. With what looks like an airtight lease. The house is less than a mile from my new place so I do a drive by once in a while.

**CBGB** · 04-18-2009, 03:36 PM

Originally Posted by T_Own

jdogg is right about not getting your moneys worth from things. in my moms new house (moved 4 years ago now, it was built 9 months before we got there, one previous owner) we paid like $250k for it, we thought it was a great price, coming from a suburb, 250k doesn't get you much at all, so this house was pretty nice. people said she overpaid on it, and about a year later she had semi finished the basement (drywall + linoleum floors) and put a $35k deck on the back part, nice deck with the fake wood so it lasts longer, multi level, pretty big. but then the next year the house was appraised at 233k, and this was before the economy took a downturn.

but the idea is that you generally will live there for a while, unless its part of your job to move a lot, then i'm assuming your company helps out a lot. so i think in the long run its a good investment, and there will always be upkeep costs.

Did she get an appraisal first?.......thats a major overlook

**tyward** · 04-18-2009, 11:23 PM

I thought about my advice last night and thought I would qualify it a bit. I bought now because it was right for me . I don't work and I will never need to work again. (Entirely due to real estate investment, but remember that past results do not guarantee future profits) I live in Colorado half the year and will be holding on to the house forever. (Well, my forever anyway.) The rates are fantastic! (I have purchased, and made profit on, homes that I bought with loans at 17.5%!) Lastly, the Colorado market was not as hot as some other places, so it really (one hopes) can't fall as much as some other cities. With that, who knows?

**T_Own** · 04-19-2009, 12:04 AM

Originally Posted by CBGB190

Did she get an appraisal first?.......thats a major overlook

she did, but it came up pretty close and we needed to move in within the week haha. she has really good credit so we got in right away, and our old house sold for much more so 10k wasn't a big deal at all.

**CBGB** · 04-19-2009, 12:43 AM

Originally Posted by T_Own

she did, but it came up pretty close and we needed to move in within the week haha. she has really good credit so we got in right away, and our old house sold for much more so 10k wasn't a big deal at all.

Maybe not in your world. But ten grand buys a lot of food.............................................. ....and hookers lol

**CptAmericaX** · 04-19-2009, 12:48 AM

Originally Posted by CBGB190

Maybe not in your world. But ten grand buys a lot of food.............................................. ....and hookers lol

haha I was thinkin the same thing fuk 10gs is still 10gs

**j4ever41** · 04-19-2009, 01:18 AM

Originally Posted by MASTER

If you rent, you may as well take your money outside and burn it. The HUGE advantage however, is the lack of risk. Buying is the place to be, but if its going to be a struggle to do, then don't bother. Only buy if you can COMFORTABLY afford it. Ive seen too many people lose their homes/ buy to let business lately due to overextending themselves. I personally don't buy properties unless I have at least 25% downs these days. You don't want to be running the risk of negative equity.

agreed, everyone situation can be different but as far as me i will not pay rent,do some research and use common sense,dont make youself house poor.

**quarry206** · 04-19-2009, 03:33 AM

i actually think its a good time to buy a fixer up house.. in the st pete area my brother just bought a home for 100K (a short sell)that was valued at 225K two years ago.. him and his friends took two weeks doing fixer up work on it (dry wall, painting, yard, drive way, lights)

one of his friends knew how to do things to code, and he and another friend did the work. he just had it looked at by the bank so he could get another 10-15K to get an extra bathroom and they aproved him..

i think its a good time if your in a solid place. to find great deals

capt aren't you former military, use your VA benifits, any bank will help you out if you have VA home loan..

**CSAR** · 04-19-2009, 04:48 AM

Lots of good info in this thread. I've been looking into buying as well. Depending on the location, if you're a disabled vet or a member of a veteran's organization (like the VFW), you can also get a substantial exemption on property taxes.

Also, look into pre-foreclosures and renewable energy for homes. Banks don't like foreclosures, because they look bad. Mortgage holders don't like foreclosures, because it wrecks their credit rating. If you can find a home in pre-foreclosure (meaning the owner and/or bank want someone to step in and assume the loan) with a low remaining balance on the mortgage, you can get a good deal. The renewable energy sources will earn you tax breaks with the fed AND could pay for themselves if you're supplying your local power grid.

I just saw a home (3 BD/2 BA) in the mountains between Reno and Lake Tahoe that had less than $23,000 left on the mortgage. They couldn't make their remaining payments and the home went into pre-foreclosure. A real estate company bought it and now they're selling the property for $350K. Definitely worth looking into.

**CptAmericaX** · 04-19-2009, 12:21 PM

Originally Posted by quarry206

i actually think its a good time to buy a fixer up house.. in the st pete area my brother just bought a home for 100K (a short sell)that was valued at 225K two years ago.. him and his friends took two weeks doing fixer up work on it (dry wall, painting, yard, drive way, lights)

one of his friends knew how to do things to code, and he and another friend did the work. he just had it looked at by the bank so he could get another 10-15K to get an extra bathroom and they aproved him..

i think its a good time if your in a solid place. to find great deals

capt aren't you former military, use your VA benifits, any bank will help you out if you have VA home loan..

Still active and deployed, yes I know about the VA home loan its a great Idea and all sounds great getting a house and fixing it up, because I was a carpenter by trade before the military so I would like my house to be a project one but my biggest concern is when I am gone and away and my wife will be with our newborn and if something goes wrong im not there to fix it.

**CptAmericaX** · 04-19-2009, 12:23 PM

Originally Posted by CSAR

Lots of good info in this thread. I've been looking into buying as well. Depending on the location, if you're a disabled vet or a member of a veteran's organization (like the VFW), you can also get a substantial exemption on property taxes.

Also, look into pre-foreclosures and renewable energy for homes. Banks don't like foreclosures, because they look bad. Mortgage holders don't like foreclosures, because it wrecks their credit rating. If you can find a home in pre-foreclosure (meaning the owner and/or bank want someone to step in and assume the loan) with a low remaining balance on the mortgage, you can get a good deal. The renewable energy sources will earn you tax breaks with the fed AND could pay for themselves if you're supplying your local power grid.

I just saw a home (3 BD/2 BA) in the mountains between Reno and Lake Tahoe that had less than $23,000 left on the mortgage. They couldn't make their remaining payments and the home went into pre-foreclosure. A real estate company bought it and now they're selling the property for $350K. Definitely worth looking into.

When I think of foreclosure I think of auction i have looked into them and they are really cheep but honestly how many auctions can you go to and get outbid before you say fuk this, and the time you waist on that you may end up spending more in a temp rental apartment

**T_Own** · 04-19-2009, 12:31 PM

Originally Posted by CBGB190

Maybe not in your world. But ten grand buys a lot of food.............................................. ....and hookers lol

LOL yeah that was my moms back up plan to spend it on...

Originally Posted by CptAmericaX

haha I was thinkin the same thing fuk 10gs is still 10gs

i guess thats true, but we were stuck til the end of the summer to get in a house, and we had soccer starting 2 weeks from then, and school another week after. so to be able to get in the house ahead of time, and close within a couple weeks, it didn't seem like a bad tradeoff.

**CptAmericaX** · 04-19-2009, 10:48 PM

yah i have 2 weeks to find a home for my wife and newborn when I get back from this deployment, then I go to alaska for the birth, and fly with a newborn not looking forward to it, its just gona be rush rush rush, but while my wife is up in alaska Ill be in the barracks by my loansome self with the gym so it really wont be a bad thing.

**CBGB** · 04-20-2009, 06:04 PM

2 weeks isn't long enough to look, offer, close, and move. If you are going to do it, do it right. You don't want rush into a home and figure out that you hate it or it's not what you need. Take your time and do it right. And good luck.

IMHO.......

**Tock** · 04-20-2009, 06:51 PM

Originally Posted by CptAmericaX

If you had the choice to rent or buy a home today what would you choose and what do you base your decision off of. Meh and you can have a Rent to own option in there as well

The real estate investors I work with say wait another 6-18 months. It's going down . . .

Aside from that, if I was gonna buy another house, it would be with an eye to energy efficiency. Location (close to work, shopping, recreation, etc) and well insulation walls and roof, plus maybe some space for a solar panel or two and a windmill. Maybe a water well (ya never know).

**warchild** · 04-20-2009, 07:27 PM

im trying to buy another house but i still hear its gonna go lower...

**CBGB** · 04-20-2009, 08:58 PM

News today said housing market in my area is showing slight increase. But it was FOX. They were probably lying. lolol

**T_Own** · 04-20-2009, 09:26 PM

Originally Posted by CBGB190

2 weeks isn't long enough to look, offer, close, and move. If you are going to do it, do it right. You don't want rush into a home and figure out that you hate it or it's not what you need. Take your time and do it right. And good luck.

IMHO.......

agreed. when we had to do that, we had looked at other houses previously, put an offer in on one, but was literally hours late on it. we didn't find this out for a couple days, and when we did, we were on vacation so kinda hard to house shop from the beach.. when we got back in town, we went to see the one we now own, and it was really nice. nice and new, very well furnished, fit what we were looking for (well my mom, i wanted to build our own and make it monstrous)

**Tigershark** · 04-20-2009, 10:08 PM

I would buy. I am sick of renting.

**CSAR** · 04-21-2009, 06:41 AM

Originally Posted by CSAR

look into pre-foreclosures

Originally Posted by CptAmericaX

When I think of foreclosure...

Emphasis on the "pre-" part. No bidding involved. Keeps the owner's credit rating intact and the potential foreclosure off the bank's records. As long as the house is solid and the remaining mortgage balance is low, everyone's pretty much a winner.

**CptAmericaX** · 04-21-2009, 06:52 PM

hmm, yah I did notice the pre originaly, but I have not found a list of them well pre-foreclosures, hence me only finding auction dates and times it fukin sucks. im going crazy over this trying to find a place thing, my wifes like oo we can live with my grandma and grandpa, so that would be me my wife our newborn our new puppy, living with her grandma grandpa and there dog in a small ass 2 bedroom house. I think ima take my chances on this one

**stangmatt06** · 04-21-2009, 07:07 PM

Originally Posted by Lightsout2184

i would wait a little bit longer to buy. the market is gonna still get lower. there are also a lot of deals on rent right now also. i got my place for 2k a month and the last person to lease it paid 3200.

All the homes on the market have multiple offers above asking price. Having homes go above asking price is already showing a turn in the market. Each house that goes on the market is going to be put on for a higher amount and appraise for a higher amount!

To answer the OP's thread. I personally would buy a home in this market. If you are military and have a BAH, you can go VA which has no money out of your pocket and for the most part, your BAH will cover your rent on your new home.

If you have had a steady job for 2 years, you can go FHA which gives you 3% to put down on the home or towards closing costs. If you can get the seller of the property to pay 3% of your closing costs, then your FHA will put 3% as a down payment on the home!!! Great deal!

If you have 10-20% to put down, you are going to have a nice house with a low monthly payment. 20% down on 250k is going to be 50k. You will have a loan amount of 200k making your payment on a 30 year fixed loan at 5.5%(being safe on the rate) around $1,524 - This includes taxes at 1.6% and Hazard Insurance at $55.00

I am not sure where most of you live, but I can't rent a 2 bedroom apartment for less than $1,600.00 a month. The home listed above is going to be a 3+ bedroom 2+ bathroom home where I live.

With that said, I would definitely purchase a house in this market if you have the income and can qualify on the loan!

**CptAmericaX** · 04-21-2009, 10:12 PM

wow I can rent a really nice 2 bed 1 bath w/d apt for like 850 a month.... but my wife wants a house, so.. haha yah but even then I can get a nice 3 bd 2 bath house renting for like 1200 a month.

**CBGB** · 04-21-2009, 11:33 PM

Holy balls batman, $1600 for a fvckin apartment!!!

**CptAmericaX** · 04-22-2009, 12:59 AM

so im a big ***** i just caved in my wife was like well theres this golden retriever that I thought you might want hes 3 and his family is moving to germany and is going to put him down if he doesnt get a home. quick my childhood dog was a golden and he died durning my second deployment. Anyway so softy me is like alright Get him, so that puts me at 2 dogs a newborn on the way, and a house I need to find buy/rent but now the only way im going to find a place that will alow me to have 2 dogs is to buy so it is what it is.So haha any tips on finding a new home? well new to me I dont give a fuk if it was built in the 1930's

**CHAP** · 04-22-2009, 06:20 AM

Buy Another foreclosere. My starter home was a forclosere and we bought it 5 years a go for 30 g under market value. If you have good credit and can get a first time home buyers loan interest rate could be as low as 5.25% no more than 6% and you can buy homes at 50% and up off of there market value. F@ck even if you don't want a home right now but it and in 10 years the market will be back up then flip that b1tch. That is some seriouse money for laying your head down at night. THINK ABOUT IT!!!

**CptAmericaX** · 04-22-2009, 07:24 AM

I can get a VA loan and I have a 687 credit score, just because I only recently started building my credit, but I will be able to get the Va loan no matter what. its just a matter of getting a good house cheap that will get me from point A time now to point B 5 years down the road.