Thread Number: 63653
/ Tag: Other Home Products or Autos
Buying a home |
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Post# 862190 , Reply# 1   1/16/2016 at 12:21 (2,994 days old) by DADoES (TX, U.S. of A.)   |   | |
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I am the type that likes to have everything paid for, and don't want to be stuck with a mortgage for a really long time.Add extra for the principle on your monthly payments to accelerate the payoff, unless the terms prohibit doing so. Add when you can if you don't have extra funds for every payment. I paid my 15-yr mortgage in 8.5 years, cut off $16,500+ interest. |
Post# 862196 , Reply# 2   1/16/2016 at 13:42 (2,994 days old) by rp2813 (Sannazay)   |   | |
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Depending on your income level and tax bracket, mortgage interest may benefit you at tax time. Around here, only people from mainland China and Hong Kong pay for homes in cash. On the flip side, if inventory is tight and bidding wars are common, a cash deal will often trump bids that are contingent on financing.
The one thing above all else that you need to accept up front is that you are not likely to find your ideal home with everything you want. You are correct -- your wish list had me conjuring up images of House Hunters and Property Brothers.
Be open to anything your agent may show you that's in your price range, and keep in mind that the best investment involves these three words: location, location, location.
And never deal with the seller's agent. You need your own advocate, particularly if this is your first rodeo. Ask friends and relatives to suggest an agent who did right by them. There are plenty of snakes out there.
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Post# 862204 , Reply# 3   1/16/2016 at 14:46 (2,994 days old) by ea56 (Cotati, Calif.)   |   | |
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I have to say that I totally agree with DADoES in reply #1. I don't know how old you are, but retirement will come quicker than you may think and having your home paid for will make your life much easier! When we took out our first mortgage in 1987 we immediately began paying 1/12th of a mortgage payment extra every mo. If you start out that way you'll never miss the extra $ and your principal will pay down much quicker. When we refied our current home in 2003 with a 15 yr. mort. we did the same thing, but this time we had autopay and we just had the mortgage company add the extra 1/12th to every mo pymt. In addition we saved $ in our bank acct. so when we reached the point that the mortgage interest wasn't enough to use as a deduction from our fed inc tax we just paid off the bal on the mort. What a relief!! And we managed to do this during the height of the mortgage meltdown, and pay off the home in just over 15 years. And we did it off of a Social Worker's and Hotel employee's salaries, so it can be done. And I also agree with Ralph in reply #2, location, location, location! You'll never find a home with everything that you want, but in time you can change these things, but the location will always be the same. I wish you good luck in your endeavor. Just remember that when you become a homeowner you also become the responsible party for all repairs and maintenance, it can be a big job, so buy a house that you can afford to keep up with both financially and time wise.
Eddie This post was last edited 01/16/2016 at 16:58 |
Post# 862221 , Reply# 4   1/16/2016 at 15:46 (2,994 days old) by whirlcool (Just North Of Houston, Texas)   |   | |
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At first a mortgage payment may seem to be more expensive than a rent payment, but as time wears on you'll soon notice that you couldn't rent a home for what you are paying in mortgage payments every month. Rent has a way of constantly rising whereas mortgage payments stay the same. |
Post# 862222 , Reply# 5   1/16/2016 at 15:47 (2,994 days old) by petek (Ontari ari ari O )   |   | |
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Just being on this site you probably have it together enough to know an ugly paint job in a house is just paint.. ugly wallpaper comes off albeit sometimes with a struggle, etc etc.. Blows my mind those real estate shows with people poo pooing a house just because of the paint, wallpaper or "old kitchen" they're all fools. But then it wouldn't make for good tv I guess.
When we bought our first house we kept it pretty conservative as to what we could afford mortgage wise etc. We were both of the mind set to pay off the mortgage as soon as possible. I think that is more common in Canada than the US because we can't deduct it from income tax so best to get rid of it. We went with bi-monthly payments and tossing in extra $ against the principle whenever possible, not that often but anything, even a hundred or two every few months cuts it down. Basically near all of my pay went on the mortgage and some of the utilities and we lived off his wages. I guess that's not as practical when you're single. Though taking in a good roomie is certainly going to help. A friend of mine in Vancouver did that for years.. A straight guy no less and never had a problem . You have to in high value markets like that. |
Post# 862224 , Reply# 6   1/16/2016 at 16:10 (2,994 days old) by DADoES (TX, U.S. of A.)   |   | |
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Post# 862252 , Reply# 7   1/16/2016 at 19:52 (2,993 days old) by LordKenmore (The Laundry Room)   |   | |
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Another point with mortgage interest deduction: there is always a risk that it will be taken away next time tax code gets tinkered with. Indeed, I think I recall that was one idea during the Bush years.
Another point. Incredibly obvious, but worth considering. If one owns a house, one is liable for property taxes, which is one thing to consider. Also there are maintenance costs on the house. It's probably a good idea having emergency cash to deal with repairs. Some probably can be predicted and budgeted for (e.g., "probably need a new roof in 5 years!"). But some can happen suddenly, like the water heater suddenly starts spurting a geyser. |
Post# 862266 , Reply# 8   1/16/2016 at 20:56 (2,993 days old) by rp2813 (Sannazay)   |   | |
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Indeed, we just got hit in a city sweep up and down our street, resulting in mandatory repairs to 104 square feet sidewalk along with 34 linear feet of curb and gutter. In this town, the property owner is responsible for for all of this.
To have the city do the work and bill us, the cost would be $3,600. We're having a contractor do the work for $2,400 (guaranteed to pass inspection).
This past October we had termite and roof work done.
We sock funds away into a dedicated account each month for household expenses, but it took a big hit. The house needs paint and a new (long) driveway, but those items will have to wait until after a recovery period.
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Post# 862284 , Reply# 10   1/17/2016 at 01:56 (2,993 days old) by petek (Ontari ari ari O )   |   | |
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Post# 862286 , Reply# 11   1/17/2016 at 02:24 (2,993 days old) by rp2813 (Sannazay)   |   | |
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Yeah, you'd think it was, wouldn't you?
As I recall, this has been an on-again, off-again thing over the years. I think it's been at least a dozen years since curb, gutter and sidewalk maintenance reverted from city to homeowner responsibility due to budget cuts. Same goes for street trees, which are almost always the culprits behind cracked or buckled curbs, gutters and sidewalks.
I do think this policy is exceptional and that in most communities, the city takes care of these things -- as it should. |
Post# 862291 , Reply# 12   1/17/2016 at 05:30 (2,993 days old) by askolover (South of Nash Vegas, TN)   |   | |
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Post# 862295 , Reply# 13   1/17/2016 at 06:15 (2,993 days old) by tolivac (greenville nc)   |   | |
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For those curbs,gutters,walks,could it be those folks live out of the city limits-in my area if your housing area has those its yours or the homeowners associations.The HOA fee would then cover those things. |
Post# 862309 , Reply# 14   1/17/2016 at 07:59 (2,993 days old) by polkanut (Wausau, WI )   |   | |
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When we bought our house on June 29, 1998 the best interest rate we could find in our area was 7.75% on a 15 year fixed rate mortgage. We paid $60,000 for our 1100 sq. ft. 3 bdrm bungalow. Our monthly payment was $660.00. We had the payments taken out of our paychecks. At the time my wife and I were paid on alternating weeks so we were in a sense making payments every week. Then on Jan. 30, 2001 my mother-in-law died, and with the inheritance received we paid off the balance. The credit union was kinda pissed, but who cares. Our monthly payment was about equal to renting a house at the time.
You won't be sorry! |
Post# 862323 , Reply# 15   1/17/2016 at 10:19 (2,993 days old) by jamiel (Detroit, Michigan and Palm Springs, CA)   |   | |
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Post# 862365 , Reply# 17   1/17/2016 at 13:39 (2,993 days old) by rp2813 (Sannazay)   |   | |
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After barely scraping up enough for a down-payment, we bought our first house in 1990 for $245K. A vintage 1957 stamped-out 3 bedroom/2 bath with 1,300 square feet. We remodeled the sad kitchen, mostly ourselves except for some plumbing, a couple of additional electrical circuits, and the new floor covering. The rest of the house we spruced up. Money was tight. The mostly original bathrooms remained with minor improvements. We landscaped front and back and gave it curb appeal that it had sorely lacked.
None of this happened overnight, but by the 10-year mark we had done about all we were motivated to do. Other than the kitchen, it didn't cost us much. We re-financed twice to lower our interest and monthly payment, but upon my insistence we never took any money out against our equity.
We bought when the market was down. It stayed down for a while, but once things picked up, it didn't take long for our place to double in value. After 18 years, we sold it -- for almost three times what we paid. Today, six years later, that house is worth over four times what we paid. Even after the mortgage meltdown, prices in that area didn't even hic-up. Part of that has to do with the school district, which was a factor in our decision (for resale), along with what was then a sleeper location that became more and more desirable. These days, nothing stays on the market for long in that neighborhood.
Granted, the real estate market in Silicon Valley is a unique anomaly and it has become insanely inflated, but just like those weight loss ads that advise in fine print, "results not typical," it serves as an example of what's possible, and real estate's potential for being the smartest and best investment one can make. Get informed, go into it with a long term strategy, and overall, you won't regret it.
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Post# 862375 , Reply# 19   1/17/2016 at 15:18 (2,993 days old) by wayupnorth (On a lake between Bangor and Bar Harbor, Maine)   |   | |
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Portland Maine is not very different, Terry. My niece has a nice house there and though the city does take care of the sidewalks, you are responsible to keep the sidewalk clear in front of your property after every snowstorm. Her water and sewer rates are outrageous for just one person, plus she has to pay a separate storm water fee every bill, going into the sewer system or not. They have to buy special garbage bags and recycle everything. Because she is in a historic district but her house is far from anything historic, she cant do many things, including replacement windows. I'm glad I am in a town of 2000 people and have well water, septic and little enforcement of what you want to do. Our houses are valued the basically the same, although mine is larger and her property tax is twice what mine is. But I would never shy away from buying as it eventually will be yours and it should gain equity if homework is done right on the total buying process. I was 22 when I bought my first place and my payment was $69 a month and I wondered if I could really afford that. I did, bought and sold more properties and now I am in the place I always wanted to be in and its all paid for now.
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Post# 862382 , Reply# 20   1/17/2016 at 15:59 (2,993 days old) by rp2813 (Sannazay)   |   | |
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Gee, now I don't feel so bad! And yeah, the sweep was a result of a complaint about sidewalks, supposedly in front of 19 properties up and down the street. The inspector went wild with the spray paint. Some people are having to replace their entire driveway approaches as well. I don't think the complainer realized that they were going to trigger all of this additional work beyond the sidewalk fixes.
It's been many years since the city took over billing for garbage and recycling. They would bill six times a year. A few months ago as a result of a cost-cutting measure, we received our last bill from them. The city disbanded its billing department and now all garbage and recycling charges appear on our annual county property tax bill.
I'm not happy about this. Part of our motivation for buying my sister out of her interest in the home my parents bought in 1960 was the ability to swing a parent-to-child transfer of the Proposition 13 property tax rate, which is so insanely low that we can manage to write a check to the county rather than have an impound account on our mortgage. With garbage fees added, our property tax bill increased by $385 per year. No matter how you slice it, we're paying the same amount for garbage, but it didn't sting as much when it was around $64 every other month.
As a homeowner, you really have to think it over before voting for things like parks, library, transportation and a host of other tax measures that appear on almost every ballot. This post was last edited 01/17/2016 at 16:22 |