Weighing the Options - Buying a House

[pattyblind9golf]

Another questions then: if you're going to spend the next 20 years there would it matter? Who know, it could go the other way too. Also, like any investment there is a risk attached to it, but at least with a house it's yours and you guys are living in it. Another thing to ask yourself, if not now, when?

+1 on this from Sean. My mom's advice (which I think is spot on) is buy to live as your first property (don't think of it as just an investment, or you'll drive yourself crazy). Make sure it fits your life and your lifestyle. Make sure if the market fails,you won't feel bad, b/c you'll be where you want to be. She advised that you can't plan life - but you have to live it. Then again, be ready for financial extras, like leaky roofs, clogged pipes, and all of the other lovely things that go with being a home owner.

We bought at nearly the height of the real estate boom in 2005 (OUCH!!). But now, we are attempting to move to a better school district as we speak (since we'll have three in public school soon enough). Our market has definitely had a correction and we're trying to take advantage of the ridiculously low interest rates. Although we might be able to offer more house in 5 yrs, with prices expected to go up then and interest rates likely to go up, we think it's a good time to buy. My agent said that when she bought her house, she had an 11% interest rate. I remember when I worked in insurance in the late 90's, all of my coworkers (who were older) thought the the 7.5% interest rate was the lowest it would ever get and everyone was buying. I feel like that now - but I can't imagine it would get much lower!

Finally, the one thing I've learned in he S. Cali market - if you can buy in a good school district, DO! even if you don't plan on having kids. The markets with good schools are ridiculous and hot compared to the rest of the L.A. markets.

GOOD LUCK with this decision - it's a big one!

 

[9-Iron Man]

Thanks to all for the comments. This sure is a big decision.

I'd welcome anyone elses thoughts on the matter too!

 

[ddxu]

My wife and i are in our mid 20s and we bought our house several years ago. While it was not easy, i consider it one of the best decisions I've ever made. I couldn't justify paying rent and not getting anything in return. Even if prices don't increase, u will still have some equity if you buy instead of leasing. Location, location, location. If I had to do it over I would pay more for a better location and talk myself out of features already being built in.

 

[mariusvt]

We're in our mid 20's and we thought the market was getting too good to pass up about a year and a half ago, paired with the home buyer credit at the time we jumped. We got a pretty good rate, 5.25% at the time. Now it doesn't really affect us, or how we feel about our purchase because we could afford the house we bought (and even easier since I got a new much better paying job), but a year and a half after we bought our house similar houses in the area are selling for ~15k less than we paid. Our goal is to stay in this house for at a minimum 8-10 years before upsizing or relocating so the effects of the community being lower now won't matter much.

 

[Dirt_Guy]

Here's my thought. If you're ready to buy and find your perfect place, put in a bid for what you feel the house is worth. Obviously the asking price is a starting point but houses aren't always worth what owners think they are, they have a personal attachment to them that inflates the true home value. Also take a look at how long houses have been on the market and if they are vacant. A vacant house usually means just another set of bills to someone that is probably ready to unload the extra headache.

I just bought my house at the end of January when I moved jobs. The market has suffered around here and prices have dropped. I was able to go through 26 houses in 3 days and only 6-7 weren't vacant. Some of these houses have been sitting empty for 1-2 years. I found a nice place that met my current needs and put in an offer on what I thought the house was worth. Ended up with a counter-offer within 2 hours that I accepted. Turns out that my appraisal was $1,500 more than I paid for the place so I already have a little equity in the house with a depressed market. I'm ready for it to all turn around now.

 

[ripper]

I have been keeping track a little of the housing market there as my brother is working in Edmonton and I thought about buying a place and renting it out to him. It does seem to be a tough market, not as bad as Vancouver, but still tough. That being said, from all that I have read and been told, this might be as good as it gets, a correction might have already happened if it was going to happen. If you can find a great place and negotiate the price, I would go for it. If it loses some value later, it really doesnt matter as you will be living in it.

 

[9-Iron Man]

A little update for everyone. AG and I have talked things over at great length and have decided to start moving forward with buying a house. We've contacted our realator and hopefully will have a meeting with the bank later this week. We are pretty nervous, but excited at the same time. This is a huge step for us, but it is the next step.

I'd like to thank everyone for their input in this thread. It is greatly appreciated and in some instances, what we needed to hear. We are looking at this for the long term so whatever we buy, we will be sticking it out for the long term. My Dad won't be thrilled, but we decided in the end, that this is what we want for us. And that is the most important thing. This is for us and for the family we plan to have.

As we move forward and ultimately find a place we like, I'll keep everyone posted if you like as to what we find!

 

[RatFink]

Awesome news 9! Just make sure that it has a spare room so you can build up a collection like JB... heh.

 

[Smallville]

Good luck you two. I know I'd love to hear how it goes.

 

[Hanks]

Congrats man! I just recently signed papers to buy a new Hanks manse as well. I'll be moving in shortly after the Outing in May. Yay debt! It's a total buyer's market here in my area and the banks still have too much negative equity on their books to turn down solid offers from good buyers. If you're a qualified buyer with good credit, money is still real cheap to come by for a 30yr fixed rate mortgage....if the decision coems down to rent vs buy and you can swing a deal for decent money down, buy!

A little update for everyone. AG and I have talked things over at great length and have decided to start moving forward with buying a house. We've contacted our realator and hopefully will have a meeting with the bank later this week. We are pretty nervous, but excited at the same time. This is a huge step for us, but it is the next step.

I'd like to thank everyone for their input in this thread. It is greatly appreciated and in some instances, what we needed to hear. We are looking at this for the long term so whatever we buy, we will be sticking it out for the long term. My Dad won't be thrilled, but we decided in the end, that this is what we want for us. And that is the most important thing. This is for us and for the family we plan to have.

As we move forward and ultimately find a place we like, I'll keep everyone posted if you like as to what we find!

 

[9-Iron Man]

Awesome news 9! Just make sure that it has a spare room so you can build up a collection like JB... heh.

Way ahead of you on that one!!

Good luck you two. I know I'd love to hear how it goes.

Thanks Smalls!

Congrats man! I just recently signed papers to buy a new Hanks manse as well. I'll be moving in shortly after the Outing in May. Yay debt! It's a total buyer's market here in my area and the banks still have too much negative equity on their books to turn down solid offers from good buyers. If you're a qualified buyer with good credit, money is still real cheap to come by for a 30yr fixed rate mortgage....if the decision coems down to rent vs buy and you can swing a deal for decent money down, buy!

Thanks man! Congrats to yourself as well!! Yay debt is right! We've been renting for 5 years and we've had enough. The time has come. We need a house!

 

[Spank818]

Nothing like being in the red for, well, almost forever

Congrats on the decision to you two... now all you gotta do is buy it then fill it, and I don't mean with furniture either.

 

[coolbreeze]

Congrats man, there is nothing like the feeling of knowing that you own the house, well sort of, the bank owns most of it but still its great. I just got my building loan approved and my drawings approved by the city, so this time next year should have a brand new duplex built. Yah baby!

 

[9-Iron Man]

Nothing like being in the red for, well, almost forever

Congrats on the decision to you two... now all you gotta do is buy it then fill it, and I don't mean with furniture either.

Don't remind me!! :act-up:

Congrats man, there is nothing like the feeling of knowing that you own the house, well sort of, the bank owns most of it but still its great. I just got my building loan approved and my drawings approved by the city, so this time next year should have a brand new duplex built. Yah baby!

Congrats yourself! We debated buying a duplex, but it just wouldn't suit our needs for the long term. We are trying to avoid the "starter home" route if possible. We think it wil give us more stability for the long run.

 

[Sean]

A little update for everyone. AG and I have talked things over at great length and have decided to start moving forward with buying a house. We've contacted our realator and hopefully will have a meeting with the bank later this week. We are pretty nervous, but excited at the same time. This is a huge step for us, but it is the next step.

I'd like to thank everyone for their input in this thread. It is greatly appreciated and in some instances, what we needed to hear. We are looking at this for the long term so whatever we buy, we will be sticking it out for the long term. My Dad won't be thrilled, but we decided in the end, that this is what we want for us. And that is the most important thing. This is for us and for the family we plan to have.

As we move forward and ultimately find a place we like, I'll keep everyone posted if you like as to what we find!

Two Thumbs Up 9-Iron and AG!!

 

[9-Iron Man]

Two Thumbs Up 9-Iron and AG!!

Thanks Sean, I appreciate it!

 

[Super Tuna]

Very cool mate.

Looking forward to see what you two manage to find in the winter wonder land.

 

[9-Iron Man]

One word: BOOM!!

Spoiler

Pending the final paperwork and all that good stuff, this should be ours just before Easter.

 

[RatFink]

Awesome, congratulations bud!

Does it have a backyard to practice in ? haha

 

[9-Iron Man]

Awesome, congratulations bud!

Does it have a backyard to practice in ? haha

It sure does! Not the biggest yard in the world, but it is only 10 minutes away from a golf course!

Thanks man!

 

[Spank818]

One word: BOOM!!

Spoiler

Pending the final paperwork and all that good stuff, this should be ours just before Easter.

What's all that white stuff and where are all the palm trees?

Congrats, dude. Welcome to the wonderful world of home ownership.

 

[9-Iron Man]

What's all that white stuff and where are all the palm trees?

Congrats, dude. Welcome to the wonderful world of home ownership.

The white stuff is the devil, the bane of my existance! Palm trees will be planted this summer!

Thanks, we are really looking forward to it!

 

[lcsmrtn]

Congrats on the new house 9-I!

 

[9-Iron Man]

Congrats on the new house 9-I!

Thanks!

 

[Sean]

That's a beauty! :alien2::alien2: