So now what?

alterego2 said:
Oh it is not that bad Jacko.

Buying a house or not is a very personal decision IMHO.
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Yes, and it should be based as a combination of personal and financial factors, not just one or the other. My point was to show that one should not buy based on the old mantra that "renting is throwing away money". While that phrase is true, buying is also throwing away just as much money, unless you are lucky enough to get significant appreciation in the property. And if home values drop, buying is throwing away tons of money.

Closing costs are high, but if you are buying in the 300K range, I doubt they come up to much more than 1.5% or so.
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Nobody I know paid less than 2%. 4-5% is typical, even on places over $300K.
With all the risks now however, job risks, economic risks, house prices risk and for many on this forum the immigration issues risk, renting for a while, atleast a year or so and seeing which way the winds blows can be considered a balanced approach.. I doubt that by this time next year you would have missed the boat!
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Yes, it is highly unlikely that house prices will be notably higher in a year or two, so there is no need to rush to buy anything now.
 
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I agree with what Jack has said above. you need to keep 3-4 basic points when you go to buy anything.
- do I really need it ? yes, if you have a larger family - grown up kids and GC
- is it the right time to buy ? No !! market is still at a peak
- is it the best investment ? No ..stocks are better ..more liquid
- is it mobile / liquid ? No ..especially on visa/EAD you need to be mobile if needed
I think best time to buy would be 2 years from now ..when most of us would be closer to GC and we get an idea about home values
 
Dont buy....

I bought when I was an optimist .
I am not able to get rid of it now (in Newjersey,Edison) and with/after the retro mess I am not sure how much of a hit I have to take in terms of booking loss, after selling at a discounted price.

_____________

EB 2 PD May 2001

RD 485 March 2006.
 
Miles2Go said:
I bought when I was an optimist .
I am not able to get rid of it now (in Newjersey,Edison) and with/after the retro mess I am not sure how much of a hit I have to take in terms of booking loss, after selling at a discounted price.

_____________

EB 2 PD May 2001

RD 485 March 2006.
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i bought house this year after getting GC & am not happy with my decision. The saying that 'renting is throwing money' is absolutely false. My plan is even in 2 years hopefully I can sell at a price so no profit no loss is good enough for me. Me, wife & kids will move back to an aptmt and will continue to rent until my kids will be close to becoming teenagers. I will rent a townhouse so we will also have enough room and not go thru mortgage, property tax and other headaches. i think the best thing to do, in my opinion; if you have kids is to rent an aptmt in the best school district. this way they get the best education and you dont pay thru your nose...
what do you guys think? am i thinking correctly ????
 
gcaa said:
i bought house this year after getting GC & am not happy with my decision. The saying that 'renting is throwing money' is absolutely false.
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It is absolutely true that renting is throwing away money. But buying is also throwing away money, unless you stay in the place long enough to make a net profit (and I mean net after all expenses that would not exist for a renter, such as closing costs, commissions, insurance, and property taxes). So renting is often throwing away less money than buying.

My plan is even in 2 years hopefully I can sell at a price so no profit no loss is good enough for me.
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I seriously doubt you'll be at a no profit/no loss situation in 2 years, if you calculate it net after the above expenses mentioned above. It usually takes at least 5-10 years to get to that break-even point. The days of making a profit or just breaking even in 1 or 2 years are over, until the next bubble. But you might be able to cut your losses by selling in 2 years.
 
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Jackolantern said:
It is true that renting is throwing away money. But buying is also throwing away money, unless you stay in the place long enough to make a net profit (and I mean net after all expenses that would not exist for a renter, such as closing costs, commissions, insurance, and property taxes). That usually means at least 5-10 years. The days of making a profit in 1 or 2 years are over.
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Including the costs of living that are much higher when you are the owner yourself. Lot of apartments include basic utilities like hot water and/or heat. My gas/electric bill itself has gone up close to $300 where in my apartment I never paid more than $50. The claim on your tax return does not even come anywhere close to what one pays on interest and taxes combined.

You do get to experience a better quality of life as my experience with renting is such that unless you live in a very lavish or high-rise atmosphere (where the rent is just as high as your mortgage payment), most of the time the neighbours are low-income families who stuff their places with family members of their entire 3 generations. I do live in the northeast, so not sure if the same is true everywhere.


Stoned!
 
that is so discouraging to know. i understand jacko, you are just puting the facts for me; yes, i think i will sell in 2 years even if it is a small loss. atleast i dont have to wait another 3-4 years paying interest and prop. taxes....... shoot, worst decision of my life..
 
You do get to experience a better quality of life as my experience with renting is such that unless you live in a very lavish or high-rise atmosphere (where the rent is just as high as your mortgage payment), most of the time the neighbours are low-income families who stuff their places with family members of their entire 3 generations. I do live in the northeast, so not sure if the same is true everywhere.


Stoned![/QUOTE]

i also live in northeast, i dont think that is entirely true. you can get good aptmts for less than half your mortgage; i am talking around $ 1500 for renting a 3br townhouse. and the neighbors are not bad; well if you are unlucky you can get a bad neighbor anywhere. ofcourse i am not talking about a $ 800 aptmt where the likelihood of getting a bad neighbor is higher...
 
No one should ever buy a home in expectation of capital appreciation. Buy it with the thought to putting a roof over your head. With the cost of owning now dramatically higher than renting, renting is certainly not throwing money away, as the opportunity cost of owning is so much higher. Investigate the rent/cost ratio and see how out of whack they are.
 
I would add that it depends on lot of factors. as with most investments you need to buy low but that period has gone away. the next low in housing may be 7 years from now. quality of life is not necessarily better in a house as you end up spending lot of time on mntc.
I met a friend few weeks back and he is repenting his decision to buy (1 year owner). I would say to the point of gloom. one of the reason for that is that his wife is having some medical issues now and he has longer commutes. also his 2 year old son has already done freestyle painting on the walls.
 
Can someone buy a home without a Green Card

Hi.
I currently am on EAD and waiting for the Green Card once the Priority date becomes current for my Jan 2006 priority date.

I am in contact with a financial adviser but he seems really confused whether I can purchase real property or not.

Your feedback would be appreciated.
Thanks
 
Hey StonedAnt,
You're giving me good news. Did you use any first time buyer assistance? That's where I think the finance guy got stuck. I cannot put more than 3% down... Let me know please (if it's not too confidential, of course). I would also like to know what lender you used, as I am sure some are looser in restrictions compared to others.

Thanks!
 
I did not end up using any of the first time buyer benefits for reasons I do not exactly remember at this time. I put down 20% and took a 30 year fixed.

I used a mortgage broker through a personal contact and I was promised that the broker would cut down on the fees and misc items. I don't think the broker gave me any discounts when I paid the closing costs, but I don't think I got cheated either.

Hope this info helps.


Stoned!
 
buy it!!!

with an amount close to rent amount.
Luck = get the profit
unlucky = get your money back with extra confort of feeling of staying in your own house and feeling of being free of planting a tree.

Market is good. Rate is low.
What is yours problems guys?
 
alinaab said:
Hey StonedAnt,
You're giving me good news. Did you use any first time buyer assistance? That's where I think the finance guy got stuck. I cannot put more than 3% down...
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If your cash is so low that you cannot put down more than 3%, you're not financially ready to buy a house.

Buying a house is more expensive than you think. Property taxes, maintenance, and insurance will add on about another 50% to the monthly cost of the raw mortgage. You should have thousands of dollars in extra cash after making the down payment, otherwise whenever something goes wrong like you need an expensive repair or they raise your property taxes, you find that you can't manage it and you'll join the list of foreclosures.
 
zbd said:
with an amount close to rent amount.
Luck = get the profit
unlucky = get your money back with extra confort of feeling of staying in your own house and feeling of being free of planting a tree.
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Unlucky = lose tens of thousands of dollars.

If you buy a house and sell it for the same price that you bought it, you've lost about 10% of the house price just like that due to closing costs and commissions, unless you've kept it for such a long time (like 10 years) that the equity you get back makes up for it.
 
Though house prices are attractive..i am not diving into it.

Current econimic status is not good...we are into Recession.

Who knows what is ahead?

Stay quiet, warm and financially safe
 
Dear Guys,

I agree with most who do not recommend buying a new house when recession is in or expected.
Its just like asking a simple question " Is it expensive to buy a 6 year old Corolla". The answer is definitely NOT as simple as it seems.
For me, if I have not much money, even buying a corolla is expensive idea. And if I have a lot, then I may even think of a very high end car and not feel the pinch.

If economy is going into a recession, it also means job losses. So if we loose our job for some reason, then the situation can become complicated and frustrating. I would say even paying 50% more is worth when its green allover, than paying 50% less, when its drought or getting into that situation.
Believe me, I am an optimist, but take steps like most of us here do.
Thanks,
Sunny
 
Buy in India

Here is the best thing to do guys . Until you ge the GC buy an aptmnt in mumbai ,cyberabad , delhi whatever place in india where newly construction is going on and rent it out for next 2 to 3 years until you get GC. Property will increases surely by 10% . Sell the house after 3 years and use the prifitable money towards your down payment !

Now do you have liquid to buy 35 to 50 lakhs house in India ? if yes then good if no then no worries as you should get lawn either from SBI or ICICI .currently they runing good rate as real estate market is little down.

I strongly recommend that keep liquid revolving so atleast after 3 years you will feel good that you made something. :)
 
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