They shouldn't be allowed to do that 'fishbowl' lens photography! When a refrigerator is a big square in the photo it's totally useless!
Are you at least familiar with the area itself? It is so hard when you need to take others into consideration.
Buying a House
- Thread starter AeryFairy
- Start date
Are you at least familiar with the area itself? It is so hard when you need to take others into consideration.
Yes we have several areas that are definitely appealing. We were able to rule out several others. So in that respect, at least we have a few towns that we know we like.
I’m so tired of looking at houses. 
We’re spending so much time in the car. We’re driving 3 hours round trip, then the time it’s taking to go from house to house. We must have seen at least 25-30 over the last few months and only have two that we would consider putting an offer on. One is over budget and the other, a fixer upper. Pretty sure it would be a wash between the two but the fixer upper would be more practical. I just hate the thought of having to wait to have things done.
Today was a disappointment. We saw a house that I really thought was going to be the one in the town I like, but it was nothing like how it was portrayed in the listing. We pretty much exhausted all possibilities for now. We have five more to see this coming week. Then we may have to wait until the spring market.
Still waiting on word as to whether our buyers were able to get their mortgage. Only a few days left!
We’re spending so much time in the car. We’re driving 3 hours round trip, then the time it’s taking to go from house to house. We must have seen at least 25-30 over the last few months and only have two that we would consider putting an offer on. One is over budget and the other, a fixer upper. Pretty sure it would be a wash between the two but the fixer upper would be more practical. I just hate the thought of having to wait to have things done.Today was a disappointment. We saw a house that I really thought was going to be the one in the town I like, but it was nothing like how it was portrayed in the listing. We pretty much exhausted all possibilities for now. We have five more to see this coming week. Then we may have to wait until the spring market.
Still waiting on word as to whether our buyers were able to get their mortgage. Only a few days left!
@KLS52 If you manage to sell your house, but still don't see anything you want (at least not before someone else's offer is accepted), would renting for a bit be an option? I suppose if the market stays this fast-moving you might not mind buying a new place before selling your current house, but I'd be kind of scared.
I looked into renting briefly but it’s very expensive here and pets are a problem in most cases. Rents are more than what we’re paying for our current mortgage.
Things are moving along. Waiting for a closing date. Should happen before March 3rd. We cannot buy anything until our house sells as we need the funds for a down payment. We can put in an offer if we find something and sign a contract but it will have a contingency clause based on our selling our house.
Things are moving along. Waiting for a closing date. Should happen before March 3rd. We cannot buy anything until our house sells as we need the funds for a down payment. We can put in an offer if we find something and sign a contract but it will have a contingency clause based on our selling our house.
Just over a month to go. It's the same over here, mortgages often work out cheaper than rent.
I have a graduate degree in Economics. I also have an undergraduate degree in Accounting. Nevertheless, neither of these degrees provide very much insight into investment decisions.
In my opinion, real estate provides a horrible rate of return compared to large stocks. I choose to rent and invest my money instead of buying. Here is an example.
Suppose I purchase a house for $100,000 with 20% down on the mortgage. On average, the house will appreciate at approximately the rate of inflation. We will make the unrealistic assumption that inflation is zero. We will also assume that the rate of return on large-capitalization stocks after inflation is 7%.
When an investor moves in and out of the stock market very slowly, stocks are the safest form of investments around. For example, the investor who moves into the market over a period of 10 years and then moves out over a period of 10 years is very safe. The likelihood of your investment underperforming other options such as bonds is next to zero.
Assume that you pay 3% interest on a 30-year $80,000 mortgage. You will spend $2,400 the first year on interest for the loan of the house. Plus, your $20,000 downpayment will be tied up in the house and earning nothing. Your lost income on the $20,000 is $1,400 per year.
Assume that you own $100,000 in stocks. $20,000 goes towards the downpayment. The other $80,000 stays in your stock account. You will make $5,600 per year on your stock every year. You pay $2,400 dollars per year on interest. Your net gain will be about $5,600 - 2,400 = $3,200 per year. This second scenario more closely resembles renting than owning.
Completely, paying off the house is a bad idea. You will wind up getting zero return on your house. Plus, your $100,000 will be tied up in the house instead of in the stock market.
Purchasing a house is an emotional decision. Some people are simply happier doing their own maintenance and customizing the house over the years to their personal preferences. A house might make you happier, but, renting will make you richer.
In my opinion, real estate provides a horrible rate of return compared to large stocks. I choose to rent and invest my money instead of buying. Here is an example.
Suppose I purchase a house for $100,000 with 20% down on the mortgage. On average, the house will appreciate at approximately the rate of inflation. We will make the unrealistic assumption that inflation is zero. We will also assume that the rate of return on large-capitalization stocks after inflation is 7%.
When an investor moves in and out of the stock market very slowly, stocks are the safest form of investments around. For example, the investor who moves into the market over a period of 10 years and then moves out over a period of 10 years is very safe. The likelihood of your investment underperforming other options such as bonds is next to zero.
Assume that you pay 3% interest on a 30-year $80,000 mortgage. You will spend $2,400 the first year on interest for the loan of the house. Plus, your $20,000 downpayment will be tied up in the house and earning nothing. Your lost income on the $20,000 is $1,400 per year.
Assume that you own $100,000 in stocks. $20,000 goes towards the downpayment. The other $80,000 stays in your stock account. You will make $5,600 per year on your stock every year. You pay $2,400 dollars per year on interest. Your net gain will be about $5,600 - 2,400 = $3,200 per year. This second scenario more closely resembles renting than owning.
Completely, paying off the house is a bad idea. You will wind up getting zero return on your house. Plus, your $100,000 will be tied up in the house instead of in the stock market.
Purchasing a house is an emotional decision. Some people are simply happier doing their own maintenance and customizing the house over the years to their personal preferences. A house might make you happier, but, renting will make you richer.
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But it's a house....where you live. I've never compared buying a house to investing. Of course it's emotional- it's where you LIVE, it's and extension of yourself.
My mortgage will be paid before I retire, in 7 years. I only took out a 10 year mortgage. I do realize there will be improvements I'd like and maintenance expenses, but it's MINE. That means more to me then getting rich from investments
I think a lot depends on where you live. Rents are very high in some areas of the country, and being able to have disposable income to invest is hard to come by for a lot of renters. My rent kept going up 3% to %5 a year, which did not match my raises (when we got them). I made a pretty good salary where I used to work (got laid off a year or so ago), but I didn't have tons to invest when I considered my monthly expenses. I suppose I could have invested what I used for a downpayment, but I felt like I wasn't get much for my rent. There were increasing numbers of rules and restrictions and additional nickel-and-diming as well that I just didn't like.
Cost of living is also a factor. In some areas of the country the costs of the basics make it hard to even save money, let alone invest it. I'm not saying it can't be done with some discipline, but I think you need a certain level of wealth to be able to invest in the stock market.
So nearly three years ago, I bought my first house, and I'm so much happier, which means a ton more to me that acquiring wealth. I pay less in mortgage and taxes than I would have in rent. It works out to be about $200 a month cheaper. My utilities also are cheaper. I've always found utilities to be pricier in apartments. I'm not sure why that is. Maybe houses are better insulated, so heat costs are lower. And I can finally turn up the bass on my stereo! This is a big deal for a music fan such as myself.
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I disagree that paying off a house is a bad idea, especially now that mortgage interest payments may not help decrease your federal tax burden. Houses will continue to increase in value after the mortgage is paid off, and if you have no loan, those value increases are yours to keep. And besides, owning property and paying property taxes helps the community - owners tend to take care of their communities better than renters and property managers.
The big problem with mortgages is that you pay more interest and less toward loans repayment early in the payment cycle, so the loan owner gets paid faster than the property owner. 10 or 15 year mortgages cost more out of pocket each month than the traditional 30 year loan, but the amount you save in interest payments over the life of the loan is substantial, and you fully own the property much quicker. And even if you don't sign up for a shorter mortgage to begin with, most lenders allow you to shorten the loan yourself with no consequences - so you can pay more each month and that amount will go to lower the principal.
Holding individual stocks or bonds in a personal investment portfolio is very risky. Most people don't have the financial capability to manage their own diversified portfolios, and pay financial advisors (some get paid a lot!) to do it for them. Holding mutual funds, index funds or etfs is much less risky and much less expensive.
The big problem with mortgages is that you pay more interest and less toward loans repayment early in the payment cycle, so the loan owner gets paid faster than the property owner. 10 or 15 year mortgages cost more out of pocket each month than the traditional 30 year loan, but the amount you save in interest payments over the life of the loan is substantial, and you fully own the property much quicker. And even if you don't sign up for a shorter mortgage to begin with, most lenders allow you to shorten the loan yourself with no consequences - so you can pay more each month and that amount will go to lower the principal.
Holding individual stocks or bonds in a personal investment portfolio is very risky. Most people don't have the financial capability to manage their own diversified portfolios, and pay financial advisors (some get paid a lot!) to do it for them. Holding mutual funds, index funds or etfs is much less risky and much less expensive.
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I bought my flat/appartement 18 years ago. It's value doubled in the first 13 years. I also have a investment plan that I manage myself so don't invest in any risky stocks, but it certainly hasn't doubled as I only get around 4.20 % yield.
I also agree with @PTree15 about running costs. I live in a residence and the administrator makes a lot of money via the service charges. I'm sure that I'd pay less if I lived in a small house compared to my flat as you cannot decide on how the money is spent. When the roof wil need replacing, I will have to fork out approx. 8 000 Euros and if I lived in a small house it would work out much cheaper.
Owning a house is a positive step for retirement. Not many people can afford rent when their income decreases in old age. Moreover, if you have children, at least they may get an inheritance which may help them in turn to get onto that important property ladder.
I also agree with @PTree15 about running costs. I live in a residence and the administrator makes a lot of money via the service charges. I'm sure that I'd pay less if I lived in a small house compared to my flat as you cannot decide on how the money is spent. When the roof wil need replacing, I will have to fork out approx. 8 000 Euros and if I lived in a small house it would work out much cheaper.
Owning a house is a positive step for retirement. Not many people can afford rent when their income decreases in old age. Moreover, if you have children, at least they may get an inheritance which may help them in turn to get onto that important property ladder.
It’s definitely a personal decision and pros and cons to each option. I grew up in a family owned home and followed suit with owning a house as I raised a family. It’s all I know. Resenting is scary to me, worrying about ruining/causing damage to something that isn’t mine, dealing with a landlord. Although, In the process of househunting, and judging by some of the houses I’ve seen that are either being rented or have been rented, the conditions of the homes have been pretty bad. It’s as if the people renting don’t care what they do to the house because it isn’t there’s pretty much the opposite of how I would feel.
Renting in my area is also more expensive than my monthly mortgage, taxes, insurance combined. I looked into it briefly as an alternative to staying at my sister-in-law’s until we find a new house. It would’ve been nice to rent in the area where we are going to buy. But there was nothing affordable and pets are always an issue.
Renting in my area is also more expensive than my monthly mortgage, taxes, insurance combined. I looked into it briefly as an alternative to staying at my sister-in-law’s until we find a new house. It would’ve been nice to rent in the area where we are going to buy. But there was nothing affordable and pets are always an issue.
Same over here. I'm so relieved that I bought my flat, as I wouldn't be able to afford to rent it out as my income has decreased.
I don’t know. I had a melt down yesterday. It wasn’t pretty. I had to lock myself in the bathroom with my three cats because I have “no where to go” to hide. lol. Bratt was the cutest though. He was very distressed with my sobs and was very empathetic! It was so sweet. Made me feel better! 
I don’t know. I had a melt down yesterday. It wasn’t pretty. I had to lock myself in the bathroom with my three cats because I have “no where to go” to hide. lol. Bratt was the cutest though. He was very distressed with my sobs and was very empathetic! It was so sweet. Made me feel better!
Aww, wish that I could help. Lovely babies.
It will soon be just a bad memory. Hang in there.
I’m better today. I made my first call to a home inspector that I found via a Facebook group from the town I’m moving to. It was amazing. His wife answered the phone, as she handles the behind the scenes scheduling etc., and their services are so comprehensive, they will contact both well and septic inspectors. So that is two less phone calls I have to make, LOL. We are all set for 9 am next Wednesday. I’m pretty excited but also not allowing myself to be over confident because I don’t want to be disappointed should something major turn up that will need fixing.
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