Looking into buying a house...... Advice?

  • Thread starter Thread starter Juggernaut
  • Start date Start date
GuitarGuyLP":3kywtjfq said:
Skirmish":3kywtjfq said:
guitarslinger":3kywtjfq said:
Skirmish":3kywtjfq said:
I`m no expert when it comes to buying a house, but I`m an expert when it comes to finances and I would never ever go under 40% down. If you can`t do that: Move and keep renting until you have the dough. Remember subprime? :doh:
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with that rationale, wouldn't the buyer want to pay 100% cash?

:confused:
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Well, yeah. But that`s unrealistic so my advise is to keep it as safe as possible financially speaking. And everything under 40% is too high of a risk still imho unless you have a super safe job that guarantees you yearly salary raises etc... Usually the brokers will recommend a lower percentage because they want to make money.
So I second what Digital Jams said and from what I`ve read so far, the main reason for Juggernaut to look into houses are the annoying neighbours. He also said that his wife is not working full time yet, so unless they can afford a down payment of 40% I would suggest renting a house instead to stay more flexible as it still solves the original issue.

Good luck in any way though Juggernaut!
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40% is not realistic for a lot of people, or just in a lot of markets. If I went by that rule I would have needed a $140,000 down payment for a starter home where I live. How many years would you have to save up for that. Buying real estate is an investment. As such it does have a risk to it. I think that the worst of the sub prime is over, and I would say that doing a proper budget where your house payments, utilities, and taxes are 50-60% of your monthly budget at the most is much more important then having a 40% down payment.
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True, you got a point and I completely agree, especially with the proper budget part. But like you said, buying real estate is a big risk and I always cringe when I hear people talking about buying homes and taking that risk, when owning a home doesn`t rationally make their life that much better. This is something everybody should have learned from the crisis and a lot of people don`t need to own a home. If you have reasons like incoming kids and lack of space, or if you NEED to crank that 100 Watts to the max, a very high possibility of staying in that one spot for a long time etc... the benefits of owning a home are worth taking that risk imo. I don`t know if that`s the case here, but to me it seems unwise to buy just because you want to leave the neighbours behind. What if the new neighbours turn out to be just as bad after a while? What if the job makes you move across the country? Etc... There are a lot of likely scenarios where you need to get rid of the house quick (e.g. a lot of careers demand flexibility these days, and it`s going to be even more important in the future) and the possibilities of losing out are not slim.

I have first hand experience as my parents needed to sell their house because they got scammed by a broker, and they lost $400000 (fourhundredfreakingthousand) on it because they couldn`t find a buyer for three years. So, imho, really think before you buy and make a wise decision if the benefits are worth the risks.
 
Thanks guys for all the advice.....

I've got alot of work ahead of me, the urgency is now gone, Landlord came by today and we talked for a while, and the "Nieghbors from hell" are being evicted. Not only have they been a pain in our asses, they have done around $5000 worth of damage to the place and didn't have enough money for their rent this month, but yet bought a 50" LCD T.V. dumbasses.... Needless to say it pissed off the landlord and he's had enough.

:rock:

But I'm still looking an saving, but now I have time to dig in and do it right. :thumbsup:

Thanks again guys I truely appreciate it. I will be looking into all the things mentioned here for sure.
 
trey85stang":1xn7ux0x said:
guitarslinger":1xn7ux0x said:
DON'T BUY A HOUSE WITH:

1. a one-car garage
2. no basement
3. flood problems
4. a septic tank
5. water from a well
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considering he is in texas, the only thing on that list he will probably be able to meet is #3.
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1. no problem
2. shouldn't be a problem, living in Tornado alley, there are LOTS of houses here with basements. (plus thats one of my "wants" in a house)
3. DEFINETELY will be looking into this
4. not gonna happen.... :D
5. neither will this..... :D
 
Juggernaut":jsp1nd0z said:
Thanks guys for all the advice.....

I've got alot of work ahead of me, the urgency is now gone, Landlord came by today and we talked for a while, and the "Nieghbors from hell" are being evicted. Not only have they been a pain in our asses, they have done around $5000 worth of damage to the place and didn't have enough money for their rent this month, but yet bought a 50" LCD T.V. dumbasses.... Needless to say it pissed off the landlord and he's had enough.

:rock:

But I'm still looking an saving, but now I have time to dig in and do it right. :thumbsup:

Thanks again guys I truely appreciate it. I will be looking into all the things mentioned here for sure.
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Congrats!!! :thumbsup: That sounds like a great solution to me and I wish you all the best in finding a fitting home in the future! Preferably one where you can set up a rockin music basement and crank the toys! :rock:
 
I fucked up MAJOR when I first moved back here from Dallas..... the Landlord I have now, had a house I helped do some work on for him, then he sold it, Fucking thing was brick smallish front yard, BIG back yard, 2 car garage, 1 bedroom apt. behind the house, basement, 3 bedroom, 2 bath, good size kitchen and dining area, utility room, Corner lot, and a workshop on top of the garage...... $120,000.

I said something about it AFTER he sold it, and he told me, he wished I'd have said something he would have sold it to me and financed it. :doh: :doh: :doh: :doh:

That house would've been AWSOME!!! :cry: :cry: :cry:
 
Some of this has already been said but check out what the taxes are and ask to see gas and electric bills for some winter and summer months so you have an idea on how well insulated it is. Go to as many open houses - even for houses you aren't totally interested in - so you can see a wide variety of floor plans and styles as you can so you can start making a list of the 'must haves' and 'would be nices'. When you narrow it down to one or two you really want talk to the neighbors to find out what the area is like.
 
Buyers advantage right now. Especially cause you won't take a major hit selling one. Don't go over your means cause you tend to get approved way over what your going to be comfortable with.
You always will need more cash right after you move in for unforeseen shit.
Get a 15 Yr mortgage if you can deal with that, most don't want to but you'll be glad you did.
If you do get a longer mortgage, pay a little extra especially in the beginning, makes a huge difference in the end.
 
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