I would do it just the other half thinks im insane lol. But i tell her all the time of i was offered something decent with work not in the northeast and had medical i would take it in a heartbeat.
Housing Options
- Thread starter SecondhandSnake
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I feel for you. I sold my rental property when my tenants had been AWESOME for 4 years. Not a single late payment. no damages... I decided to sell because the market was right and the money was worth it... i felt really bad but the money was too much to pass up.
with that being said, if you like the place and you plan on being there awhile make an offer. Worst case you can sell it down the road, or rent it out.
Interest rates are insanely low. I just locked in a 2.25 on a 30 year.
with that being said, if you like the place and you plan on being there awhile make an offer. Worst case you can sell it down the road, or rent it out.
Interest rates are insanely low. I just locked in a 2.25 on a 30 year.
This is my plan too. My current home I put 20% down two years ago and I listed it a week ago and it went above asking price. Going to rent for a year, with kids so found a reasonable house rent $ wise.
Next house will be 5-10% max. I'll pay the PMI and keep the remaining 10-15% in my pocket cause I don't trust this market
In this scenario, rent it and wait for the market to get better.
My wife and I were in the same position in 2004. We thankfully decided not to buy an overpriced house in an inflated market. We moved and rented for a couple more years. We bought a place in 2009 at the bottom, sold 3 years later and bought our dream house.
There's no easy answers. And without knowing your area, financials, or goal it's hard to give advice.
There's no easy answers. And without knowing your area, financials, or goal it's hard to give advice.
House prices do seem insane right now, we are trying to buy something this spring/summer before our 2nd baby gets here as we have outgrown our rental. I don't really know anything about house prices but I see places friends and family have bought 2 or 3 years ago and I can't find anything similar unless I'm paying 50k more for it
Think about this, I bet you pay more in property taxes than I pay for my private insurance. Don't stay somewhere for the insurance.
With the way the market and world currently are, I would be inclined to keep as much of my own money in my pocket as I can and use the bank's money where possible.
Well what part of the country are we talking about? Up here in surburbs of NYC nothing comes cheap. If my employer didnt have medical i think the number was 700 a month for a family of 4 out of pocket a month.
My wife and I, in our 40's, pay $500 a month here in Colorado. My property taxes on a $500k home are $2500 a year. Our state tax rate is 4.7% where New York's is 8.8%.
Wow that's not bad at all both ways considering what you get for your dollar
Some okay and some awful advice in here.
Depending on location, prices are not coming down.
The dollar is not going to recover its value, we're on the verge of hyper-inflation. Everything is more expensive. If you buy now you at least lock into a debt rate, plenty of renters are getting the shit squeezed out of them with dramatic increases in rent.
Any reduction in home values will likely be matched with dramatic increases in rates and purchasing requirements. I'd rather pay 2.1% with 20% down on something "over-priced" than 9.7% with 35% down on something "not-overpriced"
Second, any economic downturn will result in a supply reduction. Banks will not be as forgiving this time around and you won't see the market flooded with foreclosures. Go look at NYC real estate right now. People will sit on vacated property for years while refusing to lower asking prices.
Third, Columbus Ohio or Indiana? Kinda doesn't matter, but the large Off-Coast cities are booming because of an influx of coastal refugees. Your competing with money coming from California, Oregon, Washington, New York, New Jersey, Virginia, etc.
Some boom areas, Texas, Nashville, Arizona, Kansas City, they have real numbers behind those increases, it's not a fluke bubble.
Depending on location, prices are not coming down.
The dollar is not going to recover its value, we're on the verge of hyper-inflation. Everything is more expensive. If you buy now you at least lock into a debt rate, plenty of renters are getting the shit squeezed out of them with dramatic increases in rent.
Any reduction in home values will likely be matched with dramatic increases in rates and purchasing requirements. I'd rather pay 2.1% with 20% down on something "over-priced" than 9.7% with 35% down on something "not-overpriced"
Second, any economic downturn will result in a supply reduction. Banks will not be as forgiving this time around and you won't see the market flooded with foreclosures. Go look at NYC real estate right now. People will sit on vacated property for years while refusing to lower asking prices.
Third, Columbus Ohio or Indiana? Kinda doesn't matter, but the large Off-Coast cities are booming because of an influx of coastal refugees. Your competing with money coming from California, Oregon, Washington, New York, New Jersey, Virginia, etc.
Some boom areas, Texas, Nashville, Arizona, Kansas City, they have real numbers behind those increases, it's not a fluke bubble.
We're seeing ungodly inflation right now.
So that $50 in your pocket is only going to be worth $45 by the end of the year. You threw away $5 by "saving" your money.
Devils advocate, had you bough in 2004, and kept it for 10 years, how much more money would you have saved?
I bought in March of 2008, after 12 years cashed out and basically got 10% more than what I paid but I had 20% of the homes value in upgrades and repairs.
So net loss of 10% right? Well I basically lived in my own house rent free for 12 year. Came out with a huge pile of cash to drop on my dream house here in Phx.
Had I been renting, I'd have forked over $140,000 over 12 years and came away with nothing but refusing to pay a $300 carpet cleaning fee.
Some interesting points in this thread.
There is a reset coming. Its not if, it is when. We dont know the scale of it, but the real estate market is cyclical like most everything else. There will be a bust in the next 12 months--3 years.
There is a reset coming. Its not if, it is when. We dont know the scale of it, but the real estate market is cyclical like most everything else. There will be a bust in the next 12 months--3 years.
Why are you selling? Because the market is high and you want to cash in on the equity?
House prices are crazy right now, wait it out if you can. My wife and I bought a little fixer upper for ~560K two years ago. A family down the street just sold their house which is 500sqft smaller, on a smaller lot, but mildly updated for 780K. The new buyers are paying ~$380 a sqft at the 780K. If I applied that to our home it would now be worth $895K in just over two years.
Well, I never thought about it but. They wanted $200,000 for the house. I had the 3.5% FHA down which which would've covered closing costs. A 30 year mortgage @ 6% would be $1200.mo + $75 HI and $400/ mo property taxes. In 2014 that house was worth $180,000 and I would owe $167,000. Also you have to factor in a realistic 15% for maintenance. So total out of pocket would've been $231,150+ my initial $7,000 down. If I sold the house in 2014 for $180,000 - 5% realtor and -1% PA transfer tax I would've netted $170,000 and left the table with $3,000 making my net outlay $235,150.
Instead I rented until 2010 for $1200/mo, saving $500/mo for a proper down payment and bought a nicer house in a better school district for $150,000 and put $40,000 down. so 6 years @ $1200/mo = $86,400. Wait wtf was the question?
What shit hole has you paying $5,000 a year in taxes on a $200k home!??!
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