Then you need a larger down payment.
I just can’t convince myself to buy a house.
- Thread starter coposrv
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Then you need a larger down payment.
Not a real-estate guru but,I have owned 2 houses in my life. One made money ,this one will make money. The advise I got was.
1 - Mortgage = 30% or less a month after taxes
2 - 20% down in cash up-front NO LESS
3- ALL Taxes and fees in cash up-front
4 - Plan to stay at least 5 to 10 year.
This advise has been good to me ,Your mileage may vary.
1 - Mortgage = 30% or less a month after taxes
2 - 20% down in cash up-front NO LESS
3- ALL Taxes and fees in cash up-front
4 - Plan to stay at least 5 to 10 year.
This advise has been good to me ,Your mileage may vary.
Down payment is an obstacle for many. 20% of $400k is $80k. Not many folks have that plus a little cushion laying around. So if you buy with less than 20% down you pay PMI, which is $200 or more on houses over $400k so you’re still throwing tons of money away. Except for the SVTP ballers, many people aren’t swimming in cash.
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We're all paying cash here.
Down payment is an obstacle for many. 20% of $400k is $80k. Not many folks have that plus a little cushion laying around. So if you buy with less than 20% down you pay PMI, which is $200 or more on houses over $400k so you’re still throwing tons of money away. Except for the SVTP ballers, many people aren’t swimming in cash.
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Then don't drive a new mustang and save 20%. Most people that say they can't afford to buy a home have misdirected finances. Investors love those types of people and are glad to take their rent money.
I forgot. I must have lost my mind for a moment. LOL
I was speaking hypothetically. We do quite well in all facets: savings, retirement, etc. I was speaking more to people in general than my specific situation. But you're right, Iphone 10's with unlimited data and seven people in the house on the plan all with new phones, 4K TVs, $600 lease payments on a Lexus or Bimmer, etc. A lot of fools out there to be sure. I saw an article that said that 60% of people under the age of 30 are sunk with debt because of FOMO. I had to look up what FOMO meant..."fear of missing out." Crazy!!!!!
Yeah I wasn't directly talking about you. Just replying in general like you were. America has their priorities all screwed up and it starts with family and how they are raising their children.
I refused to send my kids to day care. We did without and lived on my 1 salary until they went off to school.
Solid financial decisions IMO are rarely easy , often painful and always take time to pay off.
Yep, my wife took 7 years at home to raise our kids. She was making $75k when we made the decision. We lived off of my income but were able to buy a house easily because we aren’t sloppy with finances. Sold the house for a decent profit when we moved here last year. She returned to work last fall. As soon as our lease is up, we will buy. We have figured out where we want to live long term here and that took some time, but we are definitely on the right track. We don’t regret missing out on her income over those 7 years. We were fortunate enough to be able to do it, but I understand that a lot of people aren’t so lucky.
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The biggest takeaway in this thread is this: Dont have kids.
These little assholes will ruin your life and suck your accounts dry. **** ‘em.
Lol.
These little assholes will ruin your life and suck your accounts dry. **** ‘em.
Lol.
If they were stocks ,nobody would buy !
Down payment is an obstacle for many. 20% of $400k is $80k. Not many folks have that plus a little cushion laying around. So if you buy with less than 20% down you pay PMI, which is $200 or more on houses over $400k so you’re still throwing tons of money away. Except for the SVTP ballers, many people aren’t swimming in cash.
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that would make sense - except op said the live frugally, and has mentioned they take part in large cash purchases.
Reading this thread and it is hard to believe what houses cost in other parts of the country. 500K would get you a mansion where I live.The average house around me is way under 200K. 400K would get you a really nice house on a lake here
I traveled a ton for work. I always looked around and in most parts of the country 250-300 is a pretty decent home. I think the average in southborough is 600
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For what I'm seeing right now, it is not a good time to buy. The last time the housing market crashed car repos where at a high point right before and sounds like they are way up again.
You could buy a house a lot cheaper in 2011 then 2007 so your house could go down in value if your timing isn't right
Guy at work has been looking to buy a house and they are selling within a day in the area where he wants to buy. People are offering 10-30K over asking price. Keep in mind we are not talking a 400K house a 150K house. He said someone offered 35K over the asking price on one he was trying to get. He just landed one they were asking 154K and he offered 17K over. Someone else offered 24K over but they went with his based on how they were closing
You could buy a house a lot cheaper in 2011 then 2007 so your house could go down in value if your timing isn't right
Guy at work has been looking to buy a house and they are selling within a day in the area where he wants to buy. People are offering 10-30K over asking price. Keep in mind we are not talking a 400K house a 150K house. He said someone offered 35K over the asking price on one he was trying to get. He just landed one they were asking 154K and he offered 17K over. Someone else offered 24K over but they went with his based on how they were closing
I’ve never purchased a property as an investment, rather an accidental landlord. Bought a house to live in, circumstances changed and had to move. Bought another and rented the last one.
Two that come to mind we’re the townhome and single fam in CA. Bought in 04 and 05. For those that don’t know, took a 50% hit in value during the bust.
Rent always covered the mortgage with a little to spare. I was coming out of pocket a couple grand a year for repairs and property taxes.
My fed income tax on average was @8k less per year than guys at work with the same pay and dependent situation. I can say with confidence I never scammed or over deducted anything.
Prices did recover but I still sold for less than I paid for two of them. Pocketed 60k plus I figure around 90k in tax savings.
I’m not rich but I could pay off my 150k house I bought three yrs ago and still have 45k in my checking account.
Still have another rental with about 100k in equity.
I’m actively shopping for a real rental property now. Even with the housing bubble I think I did well with minimal work.
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Two that come to mind we’re the townhome and single fam in CA. Bought in 04 and 05. For those that don’t know, took a 50% hit in value during the bust.
Rent always covered the mortgage with a little to spare. I was coming out of pocket a couple grand a year for repairs and property taxes.
My fed income tax on average was @8k less per year than guys at work with the same pay and dependent situation. I can say with confidence I never scammed or over deducted anything.
Prices did recover but I still sold for less than I paid for two of them. Pocketed 60k plus I figure around 90k in tax savings.
I’m not rich but I could pay off my 150k house I bought three yrs ago and still have 45k in my checking account.
Still have another rental with about 100k in equity.
I’m actively shopping for a real rental property now. Even with the housing bubble I think I did well with minimal work.
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My parents told me this when I was around 18 years old but in a nicer way.
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Yeah, my family is from the midwest. I just pulled up the house I grew up in and zillow estimates is at 100,XXX. My sister recently bought a house with her husband up there and my mom made an ever so slight joke of "Looks like your little sister bought a house before you did, huh?" My parents love visiting FL, so they 100% know values down here are different, but I still got some raised eyebrows when I said, "Want me to move home and pay cash for a house?"
You my sir cannot afford an $800k on your household income and save for anything. After taxes you are clearing around $11k and that amount the bank approved you on doesn’t include taxes, insurance, or utility cost. If you buy I wouldn’t spend more than $400k with your income.
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People are offering crazy amounts over asking just so the sellers choose their offer and they are hoping the appraisal comes in lower and they can renegotiate price at that point. When we sold our starter home in 2017 that's what was happening all over.
Thats why you negotiate with the cash buyer out of the group.
The one good thing about the market here for sellers is that the appraisers will usually raise the property value to the highest bid accepted.
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