Home Owners Thread

[ZenkiKid]

Originally Posted by RalliartRsX

Gotcha. And its nice to see that a banker actually has your best interest at heart! That is refreshing

Yeah, youre telling me. Right when we sat down and told her our intentions she immediately put it out there that its a bad time to attempt it.

[SSJ-S15]

Originally Posted by ZenkiKid

House prices right now especially in Socal are outrageous.

Homes in older lower income areas are hovering around $400k.

Newer homes in more suburban established areas are over half a mill.

Unfortunately the fed has raise the rates, as well as the Trump election win really driving up rates, and home prices have not come down. I don't see there being this huge drop in home prices like everyone was saying would happen when rates went up. I work as a lender, and home purchases have not slowed down that much despite the 30yf rate going up almost 1% in just 6 months.

Have you thought about starting off in a smaller condo? These are considerably more affordable for a first time home buyer

[ZenkiKid]

Originally Posted by SSJ-S15

Unfortunately the fed has raise the rates, as well as the Trump election win really driving up rates, and home prices have not come down. I don't see there being this huge drop in home prices like everyone was saying would happen when rates went up. I work as a lender, and home purchases have not slowed down that much despite the 30yf rate going up almost 1% in just 6 months.

Have you thought about starting off in a smaller condo? These are considerably more affordable for a first time home buyer

No. We dont want a condo.

I would settle for a townhome but the ones that interest us have outrageous HOA rules and shitty management.

[exitspeed]

Originally Posted by ZenkiKid

went to see a loan officer last week and she told me and my fiancee straight up that its a really bad time to even attempt to buy right now.

its telling when a bank employee pretty much tells you to not do it.

Me and my fiancee wanted to try to land a house by the end of the year this year but it looks like its not going to happen. Bright side is itll give us more time to save when we try again next year.


(I live in socal and me and my fiancee both have amazing credit and DTI ratios)

Yeah prices are high right now. I don't think we're necessarily going to see a "bubble" burst, but prices can't keep rising at the rate they are right now.

Part of whats making the prices so high (speaking for SE WI at least) is that the inventory is LOW. A house goes on the market in my neighborhood and it sees multiple over-asking price offers. The reason inventory is low is there's people like me who remember the crash and recession all too well. I could sell my house in probably a week for $100k more than I owe...and then what though? Buy a more expensive house at about the same cost? Then I need to remodel that house because anything in that price range is larger than my house, but out dated. Na, I'll sit put for a while and keep improving this house.

Which reminds me. I have to post pics of how those lockers turned out...

[lewisfk]

Buying a house is hard, my only suggestion is to build on your own land. I failed to do this and now I'm actively looking for land to build a house on. If I could do it all over again, I would of went my buddies route. He is currently living in his 5th wheel rv while his house is being built. He paid 85k for an acre of land between Temecula and Corona CA. He saved 50k in rent over the past two years. His house will be ready before Aug 2017. The house is green, with solar!

[ZenkiKid]

Originally Posted by lewisfk

Buying a house is hard, my only suggestion is to build on your own land. I failed to do this and now I'm actively looking for land to build a house on. If I could do it all over again, I would of went my buddies route. He is currently living in his 5th wheel rv while his house is being built. He paid 85k for an acre of land between Temecula and Corona CA. He saved 50k in rent over the past two years. His house will be ready before Aug 2017. The house is green, with solar!

Relocating to temecula (an hour north of where I currently am) is an option. That area is still pretty cheap.

[JM216S14]

Its fairly easy to buy one in ohio, I paid 96k for mine attached 1 car garage 3 bedroom 1600 sqft with a 2 car detached on 2 acres. Needed updated but was livable when I moved in.

[RalliartRsX]

Originally Posted by JM216S14

Its fairly easy to buy one in ohio, I paid 96k for mine attached 1 car garage 3 bedroom 1600 sqft with a 2 car detached on 2 acres. Needed updated but was livable when I moved in.

Its all about location and inventory

Here in DC: That is a 500-750K house depending on area (garage is worth 20-50k by itself)

[exitspeed]

Originally Posted by JM216S14

Its fairly easy to buy one in ohio, I paid 96k for mine attached 1 car garage 3 bedroom 1600 sqft with a 2 car detached on 2 acres. Needed updated but was livable when I moved in.

Where in OH? I was in a suburb of Columbus last year at a suuuuper dope house and it was expensive. IIRC like $700. So like what really nice houses are here.

I'm in an upscale neighborhood in a suburb 25 outside of downtown Milwaukee and my house is about $400. My neighbor's house behind me is $700 and there's million dollar houses all around Brookfield.

I'm surprised the California houses you guys are talking about aren't more.

[spooled240]

Originally Posted by exitspeed

I'm in an upscale neighborhood in a suburb 25 outside of downtown Milwaukee and my house is about $400. My neighbor's house behind me is $700 and there's million dollar houses all around Brookfield.

I'm surprised the California houses you guys are talking about aren't more.

How big is your house? We have houses here in that range but they are either pretty small and old or in areas that are bad or really far. 4 bedrooms in upscale neighborhoods are like 700 minimum.

[gbaby2089]

Originally Posted by exitspeed

Where in OH? I was in a suburb of Columbus last year at a suuuuper dope house and it was expensive. IIRC like $700. So like what really nice houses are here.

I'm in an upscale neighborhood in a suburb 25 outside of downtown Milwaukee and my house is about $400. My neighbor's house behind me is $700 and there's million dollar houses all around Brookfield.

I'm surprised the California houses you guys are talking about aren't more.

Yeesh.

Would not pay that much anywhere in Wisconsin, except for an architectural marvel with history behind it.

And this coming from someone who just bought a house in Milwaukee haha

[JM216S14]

Originally Posted by exitspeed

Where in OH? I was in a suburb of Columbus last year at a suuuuper dope house and it was expensive. IIRC like $700. So like what really nice houses are here.

I'm in an upscale neighborhood in a suburb 25 outside of downtown Milwaukee and my house is about $400. My neighbor's house behind me is $700 and there's million dollar houses all around Brookfield.

I'm surprised the California houses you guys are talking about aren't more.

I live about 20 miles west of canton. Columbus is super expensive especially places like German village.

[exitspeed]

Originally Posted by spooled240

How big is your house? We have houses here in that range but they are either pretty small and old or in areas that are bad or really far. 4 bedrooms in upscale neighborhoods are like 700 minimum.

It's like 2100sq ft, 4 bedrooms, but I have an acre of land with woods and shit.

Originally Posted by gbaby2089

Yeesh.

Would not pay that much anywhere in Wisconsin, except for an architectural marvel with history behind it.

And this coming from someone who just bought a house in Milwaukee haha

That's how much nice houses cost in Brookfield, as you know. I lived in Milwaukee most of my life. Not raising kids in the city.

Originally Posted by JM216S14

I live about 20 miles west of canton. Columbus is super expensive especially places like German village.

Yeah I forgot where it was, but the homes were older but really large.


The wife and I have contemplated moving to NY area since she works in Manhattan every week...but FUCK! A house like ours in an older, historic area is no less than a million. If she ever gets a job offer from her client we'd have to.

[R32Dragon]

Alot of those "young couple" episodes are staged. They really don't have that money.

[lewisfk]

The prices in North Austin TX is ridiculously high. I bought my house at 272k it's worth 320k in
5 year period. The real problem is the taxes. 7200 ficial year 18. I can't wait for my disability rating from the Navy.

[tricky_ab]

Townhouses in my area (less then 1500 square feet) are selling for half a million dollars...

....yeah... It's crazy!

The market is still VERY hot, and houses sell in a few days, with quite a few offers to choose from. That being said, there's not a surplus so finding something will be hard.

[ghost_silvia]

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?

[hotlavaflow]

Saving to buy a home now but I live in NYC and make just over 6 figures so it'll be 40 years before I have enough for a down payment lol.

[Highway Riding]

Originally Posted by hotlavaflow

Saving to buy a home now but I live in NYC and make just over 6 figures so it'll be 40 years before I have enough for a down payment lol.

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.

[ZenkiKid]

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.

[Silverbullet]

Originally Posted by ZenkiKid

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.

I know the mainstream consciousness thinks its just normal to put everything you have into trying to buy a house, but the truth of it is, if you have to get a loan for it, you can't afford it. I don't know what market you're in, but houses are a difficult thing to buy for our generation. Times have changed since our grand parents were young bucks and buying a house made sense (financially) back then.

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

[spooled240]

Originally Posted by Silverbullet

I know the mainstream consciousness thinks its just normal to put everything you have into trying to buy a house, but the truth of it is, if you have to get a loan for it, you can't afford it. I don't know what market you're in, but houses are a difficult thing to buy for our generation. Times have changed since our grand parents were young bucks and buying a house made sense (financially) back then.

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

Another risk with putting a big downpaynent on a house is losing that with any market fluctuations. Theres a lot of uncertainty right now in the market with interest rates on the rise and the general state of politics. I wouldnt buy right now. Keep saving those pennies.

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[RalliartRsX]

Originally Posted by spooled240

........ Theres a lot of uncertainty right now in the market with interest rates on the rise and the general state of politics. I wouldnt buy right now. Keep saving those pennies.

Sent from my SM-G935T using Tapatalk

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).

[spooled240]

Originally Posted by RalliartRsX

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).

Your first comment is contradictory lol. The feds wont raise interest rates if they knew it would be detrimental to the economy, but they have and will most likely continue to increase the rates. While low interest rates can and has kept the economy sonewhat above water, there are long term repercussions and the feds know this. And as you probably already know, typically when interest rates increase house prices will decrease and vice-versa. Thats one of the big reasons why the prices increased so rapidly back in the mid-2000s.

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.

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[RalliartRsX]

Originally Posted by Silverbullet

I know the mainstream consciousness thinks its just normal to put everything you have into trying to buy a house, but the truth of it is, if you have to get a loan for it, you can't afford it. I don't know what market you're in, but houses are a difficult thing to buy for our generation. Times have changed since our grand parents were young bucks and buying a house made sense (financially) back then.

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

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

[exitspeed]

Originally Posted by RalliartRsX

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

Agree with this 100%.

[Silverbullet]

Originally Posted by RalliartRsX

I see a link to your site, but the entire post sounds like a pitch for drawing in new victims lol.

It doesn't resonate with you because you are not the ideal person investors are buying from. It's well designed to speak to the right seller.

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.

[RalliartRsX]

Originally Posted by Silverbullet

It doesn't resonate with you because you are not the ideal person investors are buying from. It's well designed to speak to the right seller.

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.

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

[simmode1]

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.

[RalliartRsX]

Originally Posted by simmode1

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.

Yep. That's why I mentioned to be upfront with costs (and potential costs).

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........