Buying a home (USA) in our current economic condition??

[w8tlifterty]

Any and all advice appreciated. I have always rented. In my neck of the woods a decent house can be had for 70-90k (nice starter home anyway). I live on a very average income, spend very wisely, have savings and excellent credit. My little brother is also getting ready to move in w/ me (long story, but he's in some trouble). I am thinking of buying a home, live in it for a couple years, make needed repairs and eventually rent it out. Good idea? Or NO? I am afraid of what may happen in the future here? Some predict a 'double dip' in the economy, housing market declining till 2013-2016, or possible never recovering! I am struggling w/ this decision.

 

[Huge_C2]

Any and all advice appreciated. I have always rented. In my neck of the woods a decent house can be had for 70-90k (nice starter home anyway). I live on a very average income, spend very wisely, have savings and excellent credit. My little brother is also getting ready to move in w/ me (long story, but he's in some trouble). I am thinking of buying a home, live in it for a couple years, make needed repairs and eventually rent it out. Good idea? Or NO? I am afraid of what may happen in the future here? Some predict a 'double dip' in the economy, housing market declining till 2013-2016, or possible never recovering! I am struggling w/ this decision.

Get approved for a loan then go to a county auction.. Best deals by far.. In the line of work i do i see it often... Homes that are worth 200k are going for 40-60k. There are for sure some steals....

 

[w8tlifterty]

Where do I find these auctions C2? Is there a listing online?

 

[Huge_C2]

Where do I find these auctions C2? Is there a listing online?

Well you can call the county assesors office where they deal with prop. taxes and such and they can usually point you in the right direction.. Im not sure where you live and its different for every state...

 

[wasp]

never know whats coming in your life bro, i had a nice house, good job, then my rel went to shit, now i havent worked in 9 months and my house is just about foreclosed..............what ever you do, watch the women, they will suck the life right out of you

 

[Tyrone]

Any and all advice appreciated. I have always rented. In my neck of the woods a decent house can be had for 70-90k (nice starter home anyway). I live on a very average income, spend very wisely, have savings and excellent credit. My little brother is also getting ready to move in w/ me (long story, but he's in some trouble). I am thinking of buying a home, live in it for a couple years, make needed repairs and eventually rent it out. Good idea? Or NO? I am afraid of what may happen in the future here? Some predict a 'double dip' in the economy, housing market declining till 2013-2016, or possible never recovering! I am struggling w/ this decision.

I'm no expert, but why not get into what ya can now and that way, you're at least buying into the equity.

 

[ssdark1]

I'm no expert, but why not get into what ya can now and that way, you're at least buying into the equity.

not saying your wrong TY, you are probably more of an expert than i am....but what if there is no equity coming down the pipe and the money you spent on the down payment, repairs, ins, etc. could be invested into something that will actually make you $$$???

 

[Tyrone]

not saying your wrong TY, you are probably more of an expert than i am....but what if there is no equity coming down the pipe and the money you spent on the down payment, repairs, ins, etc. could be invested into something that will actually make you $$$???

Yeah, not sure...I guess I was thinking more along my own situation of paying rent for a long period of time and then went and bought a place I could live in...I was thinking of investing in the equity instead of tossing our bucks for rent, ya know. His situation is different it sounds becuase he wants to rent it out(I think that's what he said)

But if you have the $ to buy now while the economy is where it's at and could "own" a home, all the while buying into the equity, why not?

I don't know it all...some of you guys know WAY more than me about this type of thing...And I'm all ears.

 

[ou812cte]

The tax right of is well worth the ivestment, beats throwing your money down the drain if your renting. Worse case, if the home never gains any value, you own it after 360 payments. Wiith an FHA loan you only need to put down 3.5 % of the purchase price. If it's a $100,000 home you need $3,500 plus closing cost, thats assuming your not getting a credit towards closing from the sellar. The trick with real estate, buy low sell high.

 

[Pheedno]

1. Have 3-6 months living expenses in an emergency fund
2. Dont take on a mortgage that surpasses 25% of your take home.

 

[Jello]

Now's the time to buy, the house prices are already going up.

Ty is right, you are better off putting your hard earned money toward YOUR house rather than someone elses. Investment in property is never a bad idea, you just have to find the right one.

 

[jeriko1975]

my question is how can you buy another home if the home you are in is upside down by +100k? Just like the 5 million other Floridians. The prices are now at Historic lows and now is the time to buy to hopefully offset the crap i have now. Per the statement above, what would you invest in to make money in is this OBAMA economy. The only way i would invest in anything is when the Republicans get back in the House and Senate.

 

[ericraven2003]

I sell homes for a major builder. Its a fantastic time to buy. Between the interest rates and the deals on pre existing and new, you can't miss with buying. It all depends on where you live. I am not a fan of foreclosures because its very easy to get screwed buyinga fixer upper. Start with pre existing and go from there. Remember, I you are buying an older home, take into consideration how much you will pay extra for utilites vs a newer home. Example, I made a mistake and bought an older home( built in 93 in Dallas area). My electric bills during the summer run from 600-800 a month. And I don't try to keep it real cold. If I bought a newer home, built within the last 5 years, the same sq footage would be about 200 a month in the summer. Since the house is older, I could not make my money back by putting in a new AC, not to mention the huge cost of it. Make sure you are buying in good area, buying a home is an investment that should make you money in the long run. Check out crime rates, schools, distance to major work areas and shopping. Jus FYI.

 

[thebrick]

I agree with buy now if you have a stable income and a good FICO. Home prices have pretty much bottomed out and interest rates will not go down, only up with time, maybe sooner than later too. You'll have interest, property tax deductions and an equity that will build over time. You can get tax credits on certain home improvements (energy efficiency upgrades) You should buy with the intent of living there, not renting IMO. I have a friend with 3 rental properties and they are always repairing the shit that renters trash. Renters will not take the same pride in your property that you do 99% of the time, so keep that in mind.

 

[ericraven2003]

I agree with buy now if you have a stable income and a good FICO. Home prices have pretty much bottomed out and interest rates will not go down, only up with time, maybe sooner than later too. You'll have interest, property tax deductions and an equity that will build over time. You can get tax credits on certain home improvements (energy efficiency upgrades) You should buy with the intent of living there, not renting IMO. I have a friend with 3 rental properties and they are always repairing the shit that renters trash. Renters will not take the same pride in your property that you do 99% of the time, so keep that in mind.

Renters can be tough. The only place I would buy rentals would be near tech areas. That way you by pass lower priced renters. Someone paying 2k in rent is less likely to tear up your home then someone pay 800 a month.

 

[thebrick]

Renters can be tough. The only place I would buy rentals would be near tech areas. That way you by pass lower priced renters. Someone paying 2k in rent is less likely to tear up your home then someone pay 800 a month.

Very true. I will mention that one of my friend's rental homes is in a "nicer" area and when a tenant moved out (very unexpectedly BTW) they simply pulled all the drawers out of the kitchen cabinets, rather than packing, and took them all with their stuff in it

 

[wasp]

Very true. I will mention that one of my friend's rental homes is in a "nicer" area and when a tenant moved out (very unexpectedly BTW) they simply pulled all the drawers out of the kitchen cabinets, rather than packing, and took them all with their stuff in it

lol

 

[Curiousity]

Be extremely careful with those house-buying auctions.

You might not have a chance to see it or look at it closely. Or even more important, have an inspector look at it.

In fact, if there was one piece of advice I that I think you should follow without exception - it is to make sure you have an inspector take a look at the house. It would really suck to buy a house and then find out the foundation is bad. That could easily eat up any savings you get from an auction-style sale (or any type of sale.) Especially since you are looking at buying long term (turning into rental.) Can you get a good deal at the auctions? Sure. I know that in the city where I worked in the title/escrow business, those auctions had regulars that would bargain with each other about which houses they wanted... and they had researched those houses.

 

[endus]

What is wrong with people

House is not a investment. Sure you don't want to lose money but if you did, so what... its your house. This is the kind of thinking that caused all these melt down - to make a buck on your own house and treating it like a piggy bank. And stop injecting your political belief - they all are thief no matter which party.

You buy a house because you like the neighborhood, the school system, the main street, etc. Whether it goes up or down in short term is irrelevant.

I invest in real-estate but I will never buy my own house for that reason. I buy them because thats where my family/friend/neighbor is. I keep the house up so that my neighbor will appreciate them, not because it will add 5% value. I buy a particular house because thats where I want to live not because its a good investment (go buy a stock, if you want investment).

My advice is to buy a house - it will usually be cheaper than renting in long run (other than some metro area), allow you to show your ownership pride, build relationship with neighbor, and build your future from there.

 

[ericraven2003]

House is not a investment. Sure you don't want to lose money but if you did, so what... its your house. This is the kind of thinking that caused all these melt down - to make a buck on your own house and treating it like a piggy bank. And stop injecting your political belief - they all are thief no matter which party.

You buy a house because you like the neighborhood, the school system, the main street, etc. Whether it goes up or down in short term is irrelevant.

I invest in real-estate but I will never buy my own house for that reason. I buy them because thats where my family/friend/neighbor is. I keep the house up so that my neighbor will appreciate them, not because it will add 5% value. I buy a particular house because thats where I want to live not because its a good investment (go buy a stock, if you want investment).

My advice is to buy a house - it will usually be cheaper than renting in long run (other than some metro area), allow you to show your ownership pride, build relationship with neighbor, and build your future from there.

Totally disagree. I have been selling homes for 10 years. The average time a person under the age of 50 spends in a home in Dallas is 4-6 years. You sure better think of it as an investment or you will be screwed. This is a fact. There is no reason why you cant find all the things you want and buy in an area to where you can make money when you sell it.