Andy Wrote:In my mind, if you don't have close to 40-50K sitting in the bank, looking for a house is a waste of your time unless you're just researching the market.
Joan and I were almost about to pull the trigger on a house in Burke but that number was too stupifying.
And thats the reason more people rent than buy, they believe this stuff. Find a decent loan agent and you can get into ANY house just about with 0 down. We sure didn't put 50k down when we bought our house.
.RJ Wrote:white_2kgt Wrote:What do you want to know? Go find a Real Estate Agent and start looking.
Its not always that simple.
are you just arguing for the sake of arguing? You have to start somewhere, best place is to get out there and see what is available. Where do you suggest he start?
white_2kgt Wrote:You have to start somewhere, best place is to get out there and see what is available
You're right, you have to start somewhere. But you make it sound like buying a house is a trivial process. Yes, I worked at a mortage company after I got out of school for a while and I asked lots of these stupid questions.
(09-25-2019, 03:18 PM)V1GiLaNtE Wrote: I think you need to see a mental health professional.
white_2kgt Wrote:Where do you suggest he start?
I think he should start with us at NVHomes 8)
But I'm just helping you do some numbers as a favor to help you out since you're just starting your homebuying search. We do need sales though, and we build great homes ^_^
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Chad,
Buying a house with zero down is retarded. Speculative purchasing and poor financial standing creates housing bubbles.
The personal finance books I've been checking out says you should put 20% down unless you want to finance the down payment and closing.
Joan's uncle is the lead financial analyst for Dean Witter's eastern timezone/northern hemisphere and my uncle owns a real estate firm in NoVA for 20+ years and they both agree with having 20 percent down with another 10k in the bank.
Two feet.
.RJ Wrote:But you make it sound like buying a house is a trivial process.
While not trvial, it isn't hard. The amount of paperwork was only slightly more than that of a rental agreement, and getting OUT of a lease agreement, what a headache. For a month or two of work we moved from a 1 bedroom apartment with a garage that I could barely open the doors of the car while pulled in, to a 3 bedroom, 2.5 bath house on .5 acres of land and a garage with a LIFT for $200 more/month (and that monthly rate doesn't increase every year like the apartment rent did).
Andy Wrote:Chad,
Buying a house with zero down is retarded. Speculative purchasing and poor financial standing creates housing bubbles.
The personal finance books I've been checking out says you should put 20% down unless you want to finance the down payment and closing.
Joan's uncle is the lead financial analyst for Dean Witter's eastern timezone/northern hemisphere and my uncle owns a real estate firm in NoVA for 20+ years and they both agree with having 20 percent down with another 10k in the bank.
It is not 'retarded' paying someone elses motage is 'retarded'. Have your uncle or whoever look up 80/10/10 or 80/15/5 loans. In fact, goto the bookstore and buy a book on home mortages for dummies to learn more.
white_2kgt Wrote:Andy Wrote:Chad,
Buying a house with zero down is retarded. Speculative purchasing and poor financial standing creates housing bubbles.
The personal finance books I've been checking out says you should put 20% down unless you want to finance the down payment and closing.
Joan's uncle is the lead financial analyst for Dean Witter's eastern timezone/northern hemisphere and my uncle owns a real estate firm in NoVA for 20+ years and they both agree with having 20 percent down with another 10k in the bank.
It is not 'retarded' paying someone elses motage is 'retarded'. Have your uncle or whoever look up 80/10/10 or 80/15/5 loans. In fact, goto the bookstore and buy a book on home mortages for dummies to learn more.
Chad, I don't like renting either but getting in over my head with a mortage is not a good idea either.
Two feet.
I know of a fantastic real estate agent I can refer anyone here to that specializes in the NoVA area. Let me know if anyone wants her email phone #.
All of the loan "products" like interest only, ARM, etc are really not a good idea to use right now with the market on a short term decline. There is a reason these things didnt really exist before the housing boom. Now that its not booming anymore, you can get yourself into big trouble with them.
Chad also keep in mind that the market here in NoVA is much higher than MD (especially MD a few years ago), and most of us dont have 2 solid incomes.
everyone should go to bankrate.com and check out their mortgage calculator. Plug in house price and a interest rate and see how the mortgage payment looks. Dont forget to add property taxes (can be $8k+) and condo/hoa payments, and PMI if you dont have 20% down.
And take a look at the amortization table. You will be amazed how little of that payment is actually going towards the principle.
white_2kgt Wrote:for $200 more/month (and that monthly rate doesn't increase every year like the apartment rent did).
Not all of us want to live in BFE MD. I sure dont... if you like it, more power to you - its just not my thing, and not worth comprimising to have my name attached to a mortage.
Funny that you mention rent - house prices have gone through the roof around NoVa, but rental prices have stayed pretty stable. Just another consideration.
As I already said - there isnt a right answer - you keep pressing the issue such that anyone who isnt buying or considering buying a house is a complete moron.
(09-25-2019, 03:18 PM)V1GiLaNtE Wrote: I think you need to see a mental health professional.
Andy Wrote:Chad, I don't like renting either but getting in over my head with a mortage is not a good idea either.
Why do you think you will be getting 'in over your head'? If you are renting a place you have signed a contract to pay X amount for Y time (usually a year). You can work out the same payments in a house, however, after 3 months you need to move, you can sell the house and not loose much, if anything. With renting they are going to charge you, at a minimum, 1 month's rent. I don't understand the 'in over your head' argument. Its not much different than a car payment, except a new car is worth LESS the next day than what you owe for it, and will continue that way for years.
In the end, everyones got to do what they are comfortable with. I've said my peace on the topic. I just urge you to not dismiss the possibility. Don't listen to the doom and gloom everyone paints about buying a house and don't listen to the fairy tails you hear about it either (100% appreciation in 5 years). Yes, both happen, but you need to do the research yourself and decide what the best course of action is FOR YOURSELF.
I'm done, rent/buy/live in a box away.
white_2kgt Wrote:however, after 3 months you need to move, you can sell the house and not loose much, if anything
Except lots of $$ tied up in closing costs and realtor fees...
You can usually break a lease for the cost of 1 or 2 months rent. Probably cheaper than bailing on a house you just bought. Just sayin'... it aint all roses on either side of the fence.
(09-25-2019, 03:18 PM)V1GiLaNtE Wrote: I think you need to see a mental health professional.
white_2kgt Wrote:You can work out the same payments in a house, however, after 3 months you need to move, you can sell the house and not loose much, if anything. There is absolutely no chance you will ever buy a house for the same price as rent. None. Never. Not in this area.
There is also absolutely no chance you could sell a house after 3 months and not loose any money. #1 reason is the declining market. I have read reports of the market loosing 12% over the next year. #2 is closing costs. You dont get that $10k+ back. And if you roll it into your mortgage you are even more fucked, because now you owe interest on it.
Even in a solid market, the common rule of thumb is that you should not buy unless you plan on keeping the place for 5 years or you may loose money. That may not have applied during the bubble, but the bubble is over.
Evan Wrote:There is also absolutely no chance you could sell a house after 3 months and not loose any money. #1 reason is the declining market. I have read reports of the market loosing 12% over the next year. #2 is closing costs. You dont get that $10k+ back. And if you roll it into your mortgage you are even more fucked, because now you owe interest on it.
Well, I guess somebody better call up all those people that make their LIVING off buying/selling real estate and inform them their business model is faulty. I know several people who do it as a side job where they flip 2-3 houses a year and are making MORE at that then their daily job with little to NO improvements done to the property.
white_2kgt Wrote:Well, I guess somebody better call up all those people that make their LIVING off buying/selling real estate and inform them their business model is faulty
That really has nothing to do with what we're talking about here. Apples to Kumquats, again.
Someone who makes a living (even supplementary) by flipping houses is obviously not going to go after a house they actually want to live in, they're going to buy a house they can put minimal $$ into and flip for a not-insignificant profit. If you are looking for a house that you want to move into and live in, your requirements are going to be a lot harder to meet in comparison.
(09-25-2019, 03:18 PM)V1GiLaNtE Wrote: I think you need to see a mental health professional.
white_2kgt Wrote:Evan Wrote:There is also absolutely no chance you could sell a house after 3 months and not loose any money. #1 reason is the declining market. I have read reports of the market loosing 12% over the next year. #2 is closing costs. You dont get that $10k+ back. And if you roll it into your mortgage you are even more fucked, because now you owe interest on it.
Well, I guess somebody better call up all those people that make their LIVING off buying/selling real estate and inform them their business model is faulty. I know several people who do it as a side job where they flip 2-3 houses a year and are making MORE at that then their daily job with little to NO improvements done to the property. Maybe you have your head under a rock because you already own a house, but the market over the past 6 months has taken a nosedive. Like I said, 12% drop.
Im sure they had a ball flipping houses over the past 5 years, which the market let them do. When the market gains 20-30% a year, no shit there is money to be made. But that bubble has popped.
If they are stupid enough to still try that now, they are going to loose their shirt.
.RJ Wrote:white_2kgt Wrote:Well, I guess somebody better call up all those people that make their LIVING off buying/selling real estate and inform them their business model is faulty
That really has nothing to do with what we're talking about here. Apples to Kumquats, again.
Look at Evan's quote, he was saying that it isn't possible to buy a house and sell it IN THIS MARKET and not loose money. That is FALSE. It is entirely possible that you find a house, that you might even LIKE!, with a motivated seller and low ball them getting the house for 30k under asking/value. Then turn around resell in 3 months, drop 10k on closing and walk away with 20k in your pocket. Still don't think it is possible?
Not in this market. We are talking TODAY. Not last year, not 6 months ago, and not whenever your best friends boyfriends hairstylist made eleventy bazillion dollars flipping real estate.
white_2kgt Wrote:with a motivated seller and low ball them getting the house for 30k under asking/value. Then turn around resell in 3 months, drop 10k on closing and walk away with 20k in your pocket. Still don't think it is possible?
let me get this straight, you think that a house that has to take a 30k cut to sell, you can just turn around and sell it for 30k more than the other guy could.
Seriously Chad, this is basic economics. It just doesnt work that way.
Evan Wrote:But that bubble has popped.
bubble, what a wonderful word they use to describe the realestate market. Nothing I say is going to change what you've been reading in the washington post, the bubble is somebody theory, the fact of the matter is there are 10,000 new jobs coming to this area (my area, 20 miles around me) in the next 5 years. Those people are gonig to want houses. You can take your bubble and blow it.
heh. tell that to my friend who is a real estate agent who hasnt seen a house sold in months, and sees prices dropping in the order of 50k+
but chad knows better than that silly stuff called "reality"
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