Already planned for it. We’ll Move to the in-laws for a few months. Their house is 4 bedroom and empty from April to November. While looking for a home I’ll be forced to buy.
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I just can’t convince myself to buy a house.
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Already planned for it. We’ll Move to the in-laws for a few months. Their house is 4 bedroom and empty from April to November. While looking for a home I’ll be forced to buy.
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Actually you can
I think that was called "stated income" and is no longer in practice, at least around my area. I bought two homes in two years and both times I had to have a LOT of proof of income and assets. First house sucked, but I made 100G in a year so parlayed that into a much nicer house with a guest house that is rented to help pay the $4400/mo that is the mortgage/taxes/insurance. My PMI was only $160/mo and I only had to pay that for about two years before I got up to the 25% my lender requires to remove it.
One thing that can really work in your favor is if you buy in a good real estate market. Even though I have a lot tied up in my house, I would have a hard time coming anywhere near the return on investment in any other financial instrument. My $86k I put down has returned on avg about $60k/yr for the three years I've lived here. I would have had to invest something like $600k with a return of 10% to be equal. Over the long term markets like mine make people pretty wealthy or at least flush with equity to deal with life's emergencies.
If you live in a market that doesn't appreciate much, then there's not as compelling of an argument to buy.
I've never rented so I'm no expert but the way I understand it is that if there is a lease, the owner can choose not to renew an expiring lease for any reason they want. If there is no lease they can evict as long as there is notice. Not sure how much notice is needed though.
Sorry I should clarify. My wife before taxes brings home 6-7 or so a month. I add another 8-10ish per month after putting money away for quarterly taxes. I pay quarterly because I’m a sole proprietor electrician.
But yes. 800 there’s just no ****ing way. The 400 number Though I’m comfortable with. The issue is 400 buys me a piece of shit.
Most of my work is new construction residential spec homes and decent size additions. I take on large fire alarm projects as a sub for larger firms doing new construction, then a day or two a week doing filler type service work.
I leave money in my business accounts for operating income and taxes. I want to grow and form an llc or corporation and become a just a w2 employee with disbursements. It’s a transition we’re considering sooner vs later. I meet my book keeper twice a month and accountant once a month and I’m being advised to start looking at this.
As a one man operation that brings in extra labor by the project when I need it. I just get nervous buying another van and hiring 2-3 full time guys and not having enough work but with out the labor I limit myself in the projects I can take on.
I guess the perceived problem is a housing market at its peak and my desire to grow a business over buying things.
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I honestly can't afford the expense or taxes of owning a house at this point in my life. Maybe one day I will be able to, but not right now so I rent. I rent from a good management company who takes care of their property and tenants.
Me neither. Nothing is a sure thing.
But you're talking like your house price inflation will keep on trucking for a long time, like it's a sure thing. It really isn't.
So true. From my personal experience the first house I bought for $74 back in 84. Price went up to around $90. Then in 93 got transferred out of state. At that time there was a housing slump and could not sell it for what I owed, so rented it out. Again price shot up to around $300 when the anyone can buy house loans were being given out. Then the latest housing crash happened and it went back to around $100. Just last month I exchanged it for something else for $305. If you can make the payments and plan on long term you are going to be okay. If something happens and you can no longer make payment you may not be able to sell if there is another slump. Case like the gas drilling situation, what happens when the drilling stops.
I've always experienced renting to be more expensive than owning. Apartments here are like 1K on the average and my cheaper old house payment for a 4 bedroom ranch was less than 800. Not the norm everywhere?
Don't buy one then, end of discussion.
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Hated it when I rented. Now own one and love it.
actually it will. There will be ups and downs but over the long haul a house will appreciate. As my father used to say “God ain’t makin’ any more dirt”. So people will continue to drive prices up over time
Tell that to people in the rust belt, like my hometown (Youngstown, OH). You can buy a city block for $10k.
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Don't buy in a shithole, got it.
I live in FL. People actually want to visit here, unlike Ohio. Same goes for Vegas, CA, AZ, etc. Buy smart and you'll be fine.
Point is, not all homes maintain or increase in value. There are places where property values aren’t increasing. The rust belt was at one time the backbone of our country. Now it is just depressed because of the shift away from manufacturing. I was responding to RDJ’s statement that all property values increase.
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if I had the money I would be buying up some of those city blocks. you can't buy a turd and expect the turd to appreciate in value. you have to put some polish on it. You are right tho there is much to be said for location. Right now I am looking more at farmland than city property. appreciation is not as fast but long term worth in IMHO.
The last few comments cement my view in a certain way. I can’t, and it would be foolish to think the properties my parents bought in the 1980’s that have quadrupled and then some in value to yield myself the same returns. Birth rates are down. Hell. By the time I’m in my early sixties the population may be less than it is now. Then what?
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I didn’t quite phrase the question properly. My original post and argument wasn’t exactly; is it unwise to buy a home? It was more or less, is it in my best long term interest to buy a single family home vs invest in the market and my business.
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