Housing Options

[7998]

What shit hole has you paying $5,000 a year in taxes on a $200k home!??!

Right outside Philthy. You got to feed the teachers unions and corrupt politicians. Same house in Jersey is $10k a year.

 

[NateDogg]

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.

Very good points. Alot of things to take into consideration but I always prefer to buy instead of rent. I've moved around alot over the last 10 years (Navy) and I've made money on every single house I've sold, 4 of them...

I'm currently renting while our new house is being built. Tampa suburbs are absolutely booming right now, nothing lasts more than a week on the market if it is nice and not outrageously priced. This is not a bubble here...its a supply and demand thing..

My rent for an absolute shithole, 4bd 1300 sq ft house in wesley chapel is 2100 a month!!!! The house I'm building is a 3600 sqft, 4 car garage 5 bed room house. 420k house will cost me 2150 after my 10% down payment, 30 year 2.25 interest rate, CDD fees, HOA fees and taxes (I've used VA loan multiple times, so I needed to put down 10% to avoid the higher funding fee). Its an absolute no brainer for me to buy and likely have instant equity in the house.

 

[SecondhandSnake]

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.

While I might not be quite as pessimistic, I think that is a lot of good points. The housing bubble might not "pop" so much as deflate, and not any time soon as we still haven't even technically entered the "recovery" from the pandemic. That does make for a much lower risk of taking a loss on reselling. Not to mention it obviously is an ideal rental property in a very rental heavy town.

Indiana. And a lot of that net migration out of the cities, even shorter range, has been apparent with the even crazier prices in the Indy suburbs, a sudden reversal of the previous rush to the cities. (And yet city prices/rents aren't falling.)

 

[nxhappy]

rent is HIGHER than purchasing. In the long term, buying is ALWAYS better. Find a house and get a FHA loan, you only need 3.5% down, for 250k that is $9k down. That's a no brainer. Buy a house, and if you need some extra cash, rent out your other rooms.

 

[rborden]

I'm no SVTP baller, and my current landlord has informed me he's putting the property up for sale. I'm open to put in an offer, but he's already received one before even putting it in on the market. The number he gave me I thought was obscenely high. But I checked at some estimates online, and sure enough it's on the high end, but it's reasonable. Somehow the property and the better part of the market has appreciated nearly 100% in the past 5 years. Insane, but it is what it is.

Now basically I'm left with the options of bidding or trying to find another place. This seems like the worst time for either with the market at all time highs and supply painfully short. I've been on the hunt for the past year or two around here and you can't even get a chance to see a house before it's pending. It seems like I'm going to have to pay through the nose for something, it's a question of what are the risks and advantages to either. If I buy this place out it's less than ideal, and I'll take a big hit if/when I sell in a down market when I find something more suitable. That all depends on what the market does, and unfortunately I don't have a crystal ball. If I look elsewhere, I'm going to have to fight tooth and nail to get something at all in such a short time period, and likely settle for something far less than ideal at a hefty premium.

Any real estate experts to chime in with their thoughts on it would be more then appreciated.

I’m no expert, but unless you have a solid emergency fund, no debt and at least 20% down, you’re not ready to buy a home.

I base this off what I’ve learned and applied myself through Dave Ramsey’s teachings.

You do not want to be house poor.

Putting 20% down allows you to avoid PMI (private mortgage insurance), keeps your payment mostly manageable and you own the house instead of the house owning you.

You also want to keep your mortgage at 25% of your TAKE HOME INCOME. Your mortgage should also be a 15 year fixed rate mortgage.

If you’re not familiar with his program, I suggest you start listening to the show. It took a few days to get hooked, but once I did I was grateful because I was living life the wrong way financially.

 

[nxhappy]

I’m no expert, but unless you have a solid emergency fund, no debt and at least 20% down, you’re not ready to buy a home.

I base this off what I’ve learned and applied myself through Dave Ramsey’s teachings.

You do not want to be house poor.

Putting 20% down allows you to avoid PMI (private mortgage insurance), keeps your payment mostly manageable and you own the house instead of the house owning you.

If you’re not familiar with his program, I suggest you start listening to the show. It took a few days to get hooked, but once I did I was grateful because I was living life the wrong way financially.

20% is no longer needed. Ramsy is a retard, he lost EVERYTHING through bad home buying decisions. Best decision I ever made on my first home was FHA loan, allowed me to make money elsewhere with stock market decisions. Most people move within 5 to 7 years, making PMI negligible.