04-16-2017, 10:32 PM | #331 |
Zilvia Junkie
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I've got 100k left on my mortgage and was planning to pay it off in 2-4years. Tired of HOA and want some land to build on with no restrictions but the thought of having my house paid makes me not want to get in another mortgage. Maybe I'll just save some of the money I was going to take from my 401k and wait for thw market to crash and buy some land. Use the land as collateral to build later. Traditionally the the stock markets will plummet with the housing market crash, right?
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04-17-2017, 08:19 AM | #333 |
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I recently did a couple of searches and there are a few houses that I can afford and put in an offer for.
The question is should I? They are old homes in old areas that I am very familiar with. My gut is telling me to wait out another year since things (everything in general) are crazy right now.
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08-08-2017, 09:15 PM | #334 | ||
Nissanaholic!
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Put it this way, if you have 100k saved up in your checking account to put as a downpayment for a house, imagine if you invested that money in yourself like learning a business from a mastermind or seminar. That 100k would easily come back to you, and you can replicate it over and over many times. If you like houses and real estate like I do, you can easily build a real estate investing company with that money, and again, that 100k would come back to you over and over many times. With significant income coming in, you can actually buy (or rent) the house you actually want to live in rather than settle for something. Good luck. www.housebuyers365.com
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08-09-2017, 04:51 AM | #335 | |
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08-09-2017, 06:16 AM | #336 | |
Post Whore!
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1) I cannot say I agree with this 100%. Why? A house (in most markets anyway) is an investment in itself. Renting is entirely the opposite and there is no ROI on renting. 2) That may be a "mainstream" idea, but is not at all reality. The downpayment to begin the process of buying a house is major hurdle for a majority of the population to begin with, and is the reason why a significant amount more people do not own homes. Example: 5% on a 450K home is between 20-30K cash depending on what else is included in the process (title lookup, transfer, broker fees, taxes, home owners insurance, escrow options, the list is endless). Not many people just have that lying around under their couch..... 3) The line stating "if you have to get a loan, you cannot afford it" is absolute nonsense. As stated above, people do not have 100K, 200K, 300K much less 10K for a downpayment. Loans are how "normal" people afford things and is somewhat a part of what bolsters the economy (spending by lower and middle class as trickle down effect has never shown to work). 4) The portion of not putting a monster downpayment down I can agree with. However, the flip side, take 20K out of the 100K and use for a downpayment/home purchase, then take the 80K and invest. Win win as now you own your own home (which is in itself an investment depending on location) and you still have funds to invest. I see a link to your site, but the entire post sounds like a pitch for drawing in new victims lol. We bought our second house in less than 9 months and I recommend a few things to people buying homes: 1) Buy what you can afford. And do not be shy about potential monthly costs. Be up front. Example: buying an older home expect to replace things you cannot see (plumbing as typically they were cast iron and rusted) and electrical (most houses back then were not grounded and ran on 100AMP input). 2) Cash/liquidity is king. The one thing we focused on was not putting a massive downpayment just to not have to deal with PMI. If your credit is good, there is a very good chance you IR would be fantastic. Essentially, the extra $100, $200 or so for the PMI (depending on how much you initially put down), will not make up the difference in savings for atleast 5+ years. And unless it is your last home, the likelihood of you moving in less than 3 years is fairly high. Essentially, we preferred to keep the cash in our pockets (read: invest, etc) and pay a slightly higher mortgage than to put a massive downpayment. 3) Be realistic |
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08-09-2017, 07:09 AM | #337 | |
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Your first statement is somewhat contradictory. The Feds would not increase interest rates if they had any inkling it would stop growth (read: the uncertainty aspect you mentioned).......they have raised it twice this year already and there are talks of a 3rd. Now is the best time of any to buy before they raise it a 3rd time..... In addition, after the 08 crash, there has been a significant amount of checks and balances put in place to prevent the same from happening again (although, I still do think those asshole bankers should have been all tossed to the dogs as the same ones are involved in a lot of recent unscrupulous practices, but I digress as they were not the only ones to blame....but anyways). Also, it all depends on which market you are in. In DC for instance, with the biggest employer being the government, the markets never really took a hit as no one lost their jobs so could still afford their mortgages. Although I do agree, unless you have $$$ burning a whole in your pocket, a massive downpayment for regular working class folks is not a good recommendation. However, I whole heartedly disagree with the remaining balance of your post (and because I thought the same before we bought our first home). |
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08-09-2017, 09:43 AM | #338 |
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In Dallas, I've been talking to a lot of ppl who are saying the same thing: They bought when housing prices were low and got crazy good deals on their homes. But now values are skyrocketing. Initially that seems great - your property just saw a 45% increase in value & you didn't have to damn thing but live in it. But the flipside is that the increased value caused their taxes on the home to increase too. One couple saw their monthly mortgage payment nearly double just off the tax increase. Ppl are appealing the increases, but who knows how that will work out & for how long.
Just something to think about.
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08-09-2017, 09:43 AM | #339 | |
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08-09-2017, 09:56 AM | #340 | |
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However, I call bs on that story. How much did thier home have to increase in value if the taxes double their mortgage payment?!?! That mathematically makes no sense........Taxes are a percentage of home value and are either spread out over the year and your Escrow will pay for a majority of it or you just pay a lump sum (more than likely for the difference). Sorry, not saying it didn't happen, but taxes was not the only factor their mortgage doubled......unless they had an adjustable mortgage, at which point they made a horrendous financial decision (if they didn't get out before it ballooned) for buying into it and one of the 3 main factors why the housing market crashed in 08.........The home value increase was not the reason their mortgage doubled........ |
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08-09-2017, 11:43 AM | #341 |
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Tell me about it. I make decent money & so does my wife. We were recently house hunting and determined the only way to get in a home that was decent was to move to some remote location. Now we're stuck doing the condo shuffle where rent is almost as much as mortgage.
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08-09-2017, 11:58 AM | #343 | |
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1) Buy a Reno property and make youtube your bitch (atleast the simple things. Deep dive plumbing and electrical its best to pay someone) 2) Spend a shit ton trying to compete with cash offers that have zero contingencies..... . . . . . (OK, well three ways)..........3) Have either rich parents, have someone bankrolling your downpayment, a sugar daddy/mammi, sell original house to bankroll, etc.....which all ties back to having access to a substantial sum of money (see #2 above) There is not really much of a spread in between sadly. This in addition to the enormous downpayment, make it prohibitively difficult for regular working class folk/family to buy a home unless they were saving from they were 2 y/old . I personally think a majority of the process and jus the shear amount of information they gather on you once you do initiate the process is utterly scary. However, at some point in life one has to take risks |
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08-09-2017, 03:47 PM | #344 |
Zilvia Junkie
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If everyone waited until they could buy homes and even cars with cash, that would be a dead fucking market. Only 1% would be buying anything. Terrible advice, in my opinion.
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08-09-2017, 07:44 PM | #345 |
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Do not buy in North Austin, taxes are through the roof! I bought in 2012 and my taxes were 5400. Now its 7200 a year! I hope the special legislature reins in the home owner taxes. My only blessing is that I retire in 2 1/2 years and my taxes will be cut in half due to my many issues.
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08-09-2017, 07:49 PM | #346 |
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If your in SOCAL and want to buy a dream house good luck! If I wanted to buy in Cali, in would look for a short sale,, military moving, or buy land and place an rv while the house is being built.
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08-09-2017, 07:54 PM | #347 | |
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I was able to score my house for well under asking in a market where almost everything is going for at/above asking quickly....because it is tiny, has one bathroom & has a few quirks because of the previous owner. But it is 100% livable & is general quite nice. As I live in it & update it, I am quite confident I'll do well if/when I sell. |
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08-09-2017, 08:20 PM | #348 | |
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Second house is currently out of the question. Makes no financial sense whatsoever. I've been looking for investment properties out of state. I could buy 2-3 homes out of state for the price of a single one in SoCal. It's nuts. |
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08-09-2017, 09:20 PM | #349 | |
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There were some comments earlier in this thread that debated whether it was better to have a high price and a low interest rate or a low price and a high interest rate. Id rather have the latter..you can always refinance you interest rate lower later on if the market allows and your property taxes will be lower..lower for life. You cant enjoy any of those perks with a high price and low interest rate. Whether or not prices will decrease is all speculation at this point and this is all my speculation, but Id say they have to drop eventually. Not like 2008, but enough to keep things going..because people will not be able to afford anything with the higher interest and mortgage payments. Some areas will probably not be hit as hard l, like CA in which case I will probably get the eff out of here. Sent from my SM-G935T using Tapatalk |
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08-09-2017, 10:13 PM | #350 | |
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I recommend a fantastic article in the NYTimes which discusses this very topic. It does a proper job breaking down why the feds raised interest rates in the past several years. its a good concise read Why the Feds raised Rates 2) House prices have never dropped (barring the financial collapse of 2008). They have stabilized but they will never drop as home prices themselves are one of the many bi products of inflation. So if you are banking on housing prices dropping or the stock market crashing being a few reasons preventing you from buying a home, you will never own a home at any rate......The banks themselves just completed a financial collapse faux scenario to replicate 08, and they all mostly did well and weathered the storm. In addition, housing prices increased in the early 2000s due to simply supply and demand. Demand was driven by an individual (for example) making minimum wage buying several properties with sub prime loans that a ballooned a few years later. That, in addition to unscrupulous practices by the banks (wrapping super high risk loans in a low risk package) and the limited regulation on the market is essentially what drove house prices up and what eventually cause the collapse. 3)Speculation. When talking large sums of money, speculation is not something I would delve into. If I am about to drop $30K of my hard earned money for a down payment, I better be sure I know the risks and have done the math on either end |
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08-09-2017, 10:25 PM | #351 |
Post Whore!
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I can tell you right now, its scary as fuck dropping the kind of cash required for a down payment. However, no one blinks an eye at dropping $600 for a HKS GTR speedo lol (which is just a piece of plastic with the speed in Km/H )
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08-11-2017, 07:32 AM | #352 | ||
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Understand that everyone lives in their own paradigm and live with different situations. Want to know the types of sellers I'm getting? I have 4 leads this week. One lead was in an accident 3 years ago with spinal injury with a 400k med bill. He can't afford his house (nor does he need it. His kids are gone). He needs to move this month or risk banks taking what he owns and killing his credit. He needs someone to buy FAST and move on with his life. If you could hear how grateful he is of what service my company is offering to him, you'd understand there's the right buyers for the right sellers. My other leads are also "must sell this week" to move on situations also. I see all your other points and understand why you think that. This isn't directed at you but more so a general post. I'm just going to say, there are more than one way of doing things. Open your mind to new paradigms. Your health, businesses, human relationships, your connection to your higher spiritual self and everything else will go further than you'd ever imagine. In terms of houses though, yes buying the traditional way of paying retail price is scary in this market. This is why I don't advise my close friends to buy homes and urge them to rent. The down payment needed to buy a house can easily be multipled if one were to invest in his or her self. In terms of INVESTING in houses, that's a different story. Investors dont buy from MLS listings retail consumer buyers are buying from (the 99 percent of population). We buy at 70 percent discount through wholesalers in any market situation (and agents that are in the know). That's how we are making money in our business. Money is made on the buy, not on the sell (and hoping for appreciation). Good luck.
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08-11-2017, 09:20 AM | #353 |
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Not all of SoCal is $$$, try moving more inland from the coast and home prices and cost of living in general will drop by half at twice the size of homes and lots their built on. If you don't want to relocate and commute a bit further, you just have to deal with higher prices for smaller homes and lots.
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08-11-2017, 09:30 AM | #354 |
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I hear that! For me saving for a down payment for another home with a family seems next to impossible! Selling while trying to find another in a timely manner also seems next to impossible.
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08-11-2017, 09:47 AM | #355 | |
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If you read the entirety of my post as opposed to cherry picking a select few lines, you would realized I addressed it from both perspectives: as a investor (80K of 100K for investing into property/bettering yourself/etc) and 20K to personally own your own home (which is also an investment). As far as my opinion on the website, I am allowed an opinion and that is what I draw from the site and your post. I have been to these "better yourself/investment" seminars and they al turn out to be the same huff and fluff and then you pay them at the end. Not saying the website you recommend falls along those lines, but its the same dog and pony show I see before someone jumps into it. If your website is not in the same breath, I apologize!. However, as I pointed out, your post itself does not reflect the reality of home buying regardless of investing or personal. Example: You mentioned if you have to get a loan you cannot afford to buy a house. That is absolute nonsense! How do normal working class people afford 1/2 the things they buy in current times?? Shoot, how do people who begin a business or (welp) start to invest money get the money?? 8/10 its from a loan....... Portions of your post like this is why I see your post as fluff and just a pitch. As you said, there are several mindsets, to which you alluded to 2 of them. I just simply marginalized some of the risk by diversifying the investment portfolio. So if the 80K invested into yourself doesn't pan out, you still have a home to fall back on/sell/rent out etc and vica versa. I am well aware of the investment mindset, I just prefer to marginalize some of the risk and make gains on several levels. And there are no guarantees that when someone invests 20K into themselves there will be a guaranteed ROI. So not only are you investing volatily, when or if it does not pan out then not only do you not have a house (which one could rent out for a small source of income), you have no where to live. And there is ZERO ROI on renting........ I just do not see a majority of what your post saying reflecting reality or makes sense. Sorry |
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08-11-2017, 03:22 PM | #356 | ||
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Sure, not everyone will do this. Infact, most wont. Most will just follow the corporate career, invest in a home and wallstreet products, and thats fine. I just want to put out there advice as someone in the business to offer value to Zilvia, a community I've been a part of for so long. //edit but seriously, 100k+ down payment! holy cow. I just can't stop ranting about this. Imagine all the seminars you can attend, and all the knowledge you can acquire, and all the coaches and mentors you can have working with you! I just think its so bonkers.
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08-11-2017, 03:38 PM | #357 | |
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Speaking of DC well, I am pretty tied into that market . Capitol Hill/Eastern Market, Petworth, Co Heights, etc. All the places you would not be caught dead sun down 10 years ago are now sprouting luxury condos/apts like weeds after May showers. Worst yet, these are going for 6-700K! Thats a metric shit ton of nope |
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08-11-2017, 07:00 PM | #358 |
Zilvia Junkie
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So, how does a 30 year old guy with two or three kids who makes $60k a year and still has school loans save up enough for a down payment on a home loan? Let's say his wife works part time and the youngest child is in daycare (mortgage payment in some states). How is that realistically possible for him to do?
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08-11-2017, 07:28 PM | #359 | |
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