And to stay out of debt!
ECON Is now a good time to purchase a home?
- Thread starter Truthsearch
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foreverkeeps
Veteran Member
I use the same rationale for trying to decide when to start a family. if you wait until the time is 'right'... it will never happen.
Repairman-Jack
Veteran Member
Right now in Western PA the market is rather hot, between PA's lockdown earlier this year in which realtors and real estate were not deemed essential and current rates being low (I think the other night I saw 15 year at 2.2%) have created a rush of business.
Houses right now if they are in a decent location and in ok condition are selling in 48 hours after listing and receiving multiple offers.
Houses right now if they are in a decent location and in ok condition are selling in 48 hours after listing and receiving multiple offers.
Sounds very logical except . . . people do not buy houses with money. They get a mortgage.
Why are prices high? Mass hysteria. Because when you think about it, the only reason prices rise this much is hysteria.
It certainly is not because of "facts".
The question "is now a good time to buy a house?"
Shit! There are so many answers to that question that the next question is "Who is right?" and the next is "Who is the most right?"
Do you know how much it is going to cost you to buy a house and can you afford it?
I just sold a house. I am looking at the closing statement. There is a list of what the buyer had to pay in order to buy the house.
The biggest expense was the mortgage insurance premium for the first year which is paid to HUD - $3,124.
In order to pay the second years premium, the bank will charge them an additional $260/mo.
This is because they did not put 20% down. You have 7000 down payment, that is 20% of $35,000. You can't get a house that cheap.
You will pay mortgage insurance - it will be part of your escrow payment
The buyer also had to pay the home owners premium for the year in advance. $971. In order to pay the second years home owners premium, the bank will charge them an additional $80 per month - it will be part of your escrow payment.
And then there is property taxes. The bank is going to impound in escrow the property taxes for 2020. The nice thing is, the seller is going to give you the property taxes prorated for the part of the year before you bought. But they will increase your mortgage payment for the monthly portion of property taxes. Which was another $58/month.
And as part of closing you are going to pay for title insurance and some other stuff the title company does which amounted to about $1500. And you will pay for an appraisal, termite inspection, home inspection (OMG - do this), septic inspection (really a good idea if the house is kinda fishy).
OK. having said all that, when YOU tell ME (personally) that you are going to put $7000 down I translate that as:
You probably have enough to cover the cost of getting the mortgage. The mortgage will be 100% loan to value and your monthly payment including PMI, Home insurance, taxes will be about $1400/month. Plus utilities - Phone (no cable), electric, gas, water, internet - about $350. Plus the expense of home ownership.
So, I would ask, can you afford $2000 a month.
yes I know . . . happy, happy joy joy
Sicario
The Executor
Amen. And if I had it to do over again, I'd have waited until the time was right!
Sicario
The Executor
Not me. I pay CASH!
We're closing on our 2nd home in the next couple of weeks. CASH DEAL!
Sicario
The Executor
Same here in Ohio. And the multiple offers all exceed the listing price!
Same here. My closing cost were $850 last year.Not me. I pay CASH!
SouthernBreeze
Has No Life - Lives on TB
A friend of ours just bought a new home, and paid cash for it. He pays cash for everything, including vehicles. He just refuses to go in debt for anything. How did he pay cash for his home? He sold his home in town, and took the money, and bought a new home for less than what he made on the sale of his former home. He had money left over.
If we were in the market to buy a new home right now, that's exactly the way we would go about doing it, too. We want to live as debt free as possible, especially any long term debt.
If we were in the market to buy a new home right now, that's exactly the way we would go about doing it, too. We want to live as debt free as possible, especially any long term debt.
Not me. I pay CASH!
I just sold a second home. It was a cash deal (hoping to get some Capital Gains relief from corona).
Am looking to buy another. But buyers out there are a little nutso. If this year is like most, sales will drop off in September - but because of schools being closed, I have a doubt this will happen.
If not, I'll wait till December and maybe get a shave and a haircut, a nice shirt and a tie, and a clipboard and go door to door asking people if they want to sell their house. And play "Lets make a deal"
TKO
Veteran Member
Californicators and Chicongoans are turning our area blue now. It's a sad thing to see. They want to escape the scat they've built there and want to rebuild it here. Like freaking locusts.
TKO
Veteran Member
In my hood, a house went up for sale at 8am and was sold by noon. Sight unseen. Realtor just offered more than the asking price, along with 5 others. Bid war lasted a bit I guess...but by the end of the day it was sold.
If Biden gets elected
On the bright side, now is a good time to sell if you have a good credit score and income.
But have the ability to make you mind up quickly (sight unseen) and plan to pay more than what you sell for.
SO offer it high and have a contract for your new home.
When buyers are willing to buy sight unseen, it is hysteria.
On the bright side, now is a good time to sell if you have a good credit score and income.
But have the ability to make you mind up quickly (sight unseen) and plan to pay more than what you sell for.
SO offer it high and have a contract for your new home.
TKO
Veteran Member
EVERYONE buying these homes have plates from Cali, NY, NJ, FL, IL, LA, TX, MO, or MN now. It's mostly what I see all over in this area. They are escaping crapholes but bringing it with them.
subnet
Boot
Yeah , we went from one valley to a greener valley, now going high dessert, hope my allergies go away, I think 90% of my blood is Flonase now.....
Chance
Veteran Member
Hello Truthsearch,
Might be a good time to move before the "Bill Gates Pandemic #2" arrives.
I am waiting to see what happens in November....if Trump wins, I'm buying a home in another state ASAP and moving. If Biden wins, I won't be in a big hurry to leave where I am.
Hopefully, property prices will still be high where I am and low where I will move to. Lots in the equation.
Good luck to you!
Chance
Might be a good time to move before the "Bill Gates Pandemic #2" arrives.
I am waiting to see what happens in November....if Trump wins, I'm buying a home in another state ASAP and moving. If Biden wins, I won't be in a big hurry to leave where I am.
Hopefully, property prices will still be high where I am and low where I will move to. Lots in the equation.
Good luck to you!
Chance
ivantherussian03
Veteran Member
It might depend on if your area is growing, and your state govt population estimates for next twenty years. West coast is growing. Prices have doubled since 2006 peak.
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ivantherussian03
Veteran Member
Plus, you need to buy when it is right for you. Some people can't sit on down payment ....they will piss it away. i always needeto buy or refi before I changed jobs, or before I took pay cut.
mbabulldog
Inactive
Colorado is on fire with real estate prices right now, nothing "affordable" here anymore.
Mrs. and I hope to retire in 5-10 years, then we're outta here, on our way to MO, TX, or AR
Mrs. and I hope to retire in 5-10 years, then we're outta here, on our way to MO, TX, or AR