Will you buy a house now?
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WorryForGC
Registered Users (C)
good recipe to go back with what you came here with
marlon2006
Registered Users (C)
I read this same article on the The Economist that the US house market boom was coming to an imminent end... that was in 2002 and so far no end of booming house market.
I think even if the house prices fall, the houses which would take a significant hit are the ones above 500,000.00.
If you own a condo or something below 400,000.00, even if prices fall I don't think the decrease would be too significant. At least that's what people in my area say. I hear reports often that next year or so, the IT market should improve again and companies are already having a hard time finding qualified people. If so, I can't see how the house market boom will come to an end since people will command big bucks again.
I think even if the house prices fall, the houses which would take a significant hit are the ones above 500,000.00.
If you own a condo or something below 400,000.00, even if prices fall I don't think the decrease would be too significant. At least that's what people in my area say. I hear reports often that next year or so, the IT market should improve again and companies are already having a hard time finding qualified people. If so, I can't see how the house market boom will come to an end since people will command big bucks again.
texancanadian
Registered Users (C)
I had booked a house in June and I was supposed to move there in Dec. Went through selection process of tiles,paint, brick, carpet etc. Even used to go and photograph progress of the house every week. When news of retrogression hit I made a heart wrenching decision to cancel the house.
Of course it depends on your personal threshold for risk tolerance but at least for me it is best to keep you assets as liquid as possible given the situation we guys are in.
For guys in 7th plus yr of H1 who have been unable to file I 485 loosing your job absically means GAME OVER and leaving this country. At such a time where are you going to sell you house etc ?? Right now best asset is Cash in a liquid account in a bank. Cash is something you can transfer anywhere in the world on a moments notice.
By the way I am a Financial Analyst.
Of course it depends on your personal threshold for risk tolerance but at least for me it is best to keep you assets as liquid as possible given the situation we guys are in.
For guys in 7th plus yr of H1 who have been unable to file I 485 loosing your job absically means GAME OVER and leaving this country. At such a time where are you going to sell you house etc ?? Right now best asset is Cash in a liquid account in a bank. Cash is something you can transfer anywhere in the world on a moments notice.
By the way I am a Financial Analyst.
Buy a house
I think buying a house would be the best decision i must have ever made. I am right now in 7th year of H1. I got a house for myself in Jan of 2002 in a good and developing area. Very recently i got my house appraised. It has got appraised by about 20,000$
+ when i was searching a 2 bedroom apartment ( i m with my family) in good area they gave me a price of $900 a month. I am paying $200.00 extra and own a 1800 sq ft house in a good developing neighbourhood.
It also depends on the risk you are willing to take. I know from my personal expereince that i couldn't have saved as much equity as i have gathered on my house in 3 years.
Regards n best wishes for the ppl who are lookin for new homes.....
I think buying a house would be the best decision i must have ever made. I am right now in 7th year of H1. I got a house for myself in Jan of 2002 in a good and developing area. Very recently i got my house appraised. It has got appraised by about 20,000$
+ when i was searching a 2 bedroom apartment ( i m with my family) in good area they gave me a price of $900 a month. I am paying $200.00 extra and own a 1800 sq ft house in a good developing neighbourhood.
It also depends on the risk you are willing to take. I know from my personal expereince that i couldn't have saved as much equity as i have gathered on my house in 3 years.
Regards n best wishes for the ppl who are lookin for new homes.....
GCOptimism
New Member
What if??
What if someone:
1. Has already applied for 485 and has an EAD.
2. Has a good employer (consulting company), who has plenty of clients in the same area.
3. Spouse is working on EAD.
Does it make sense to buy a house?
What if someone:
1. Has already applied for 485 and has an EAD.
2. Has a good employer (consulting company), who has plenty of clients in the same area.
3. Spouse is working on EAD.
Does it make sense to buy a house?
from what i know, buying a house in a volatile environment is risky(btw you may just lose something like 5% only).
i am not sure but it may be just because of the closing cost and all the stuff you pay in the beginning, which is not accounted towards the cost of the house.
and again you lose money if you sell in hurry..(to get a good price sometimes one has to wait 3-5 months). this is just my opinion.
i am not sure but it may be just because of the closing cost and all the stuff you pay in the beginning, which is not accounted towards the cost of the house.
and again you lose money if you sell in hurry..(to get a good price sometimes one has to wait 3-5 months). this is just my opinion.
texancanadian
Registered Users (C)
When you are trying to sell a house you are immediately down 6 % because as the seller you will have to pay both yours plus the buyer's realtors fees.
Plus you loose out on closing costs, which are like 2 %. So you ae down 8% from the start. To break even your house would have to appreciate at least 8%.
Secondly in areas which still have new construction (in this case im talking about Houston, Dallas, Atlanta etc and not San Jose, NYC etc) people prefer to buy brand new houses than buy a used home.
Personally for me the most imp factor is that Spouse should also have a good stable job. If spouse is also on H1 with decent earnings its fine but if spouse is on H4 with no income than relying on 1 salary and that to an H1 persons salary is risky.
Honestly if you have to leave this country in 3 months (after that 10 yr bar applies)what would you prefer - 40 K in Cash or 50 - 60 K in house equity?
My view is Cash is King. If you have cash then you can buy house even after you get GC. Maybe they will get a bit expensive or maybe not but atleast that time you will have relatively more peace of mind plus spouse can probably work so even if you get laid off and live on daal chaval the mortgage company at least wont take away your house. At least thats the way I look at it.
Plus you loose out on closing costs, which are like 2 %. So you ae down 8% from the start. To break even your house would have to appreciate at least 8%.
Secondly in areas which still have new construction (in this case im talking about Houston, Dallas, Atlanta etc and not San Jose, NYC etc) people prefer to buy brand new houses than buy a used home.
Personally for me the most imp factor is that Spouse should also have a good stable job. If spouse is also on H1 with decent earnings its fine but if spouse is on H4 with no income than relying on 1 salary and that to an H1 persons salary is risky.
Honestly if you have to leave this country in 3 months (after that 10 yr bar applies)what would you prefer - 40 K in Cash or 50 - 60 K in house equity?
My view is Cash is King. If you have cash then you can buy house even after you get GC. Maybe they will get a bit expensive or maybe not but atleast that time you will have relatively more peace of mind plus spouse can probably work so even if you get laid off and live on daal chaval the mortgage company at least wont take away your house. At least thats the way I look at it.
Jackolantern
Registered Users (C)
When buying, closing costs are around 5-10% on top of the purchase price. Commissions when you sell will be around 3-6%. You could sell without an agent to avoid giving the 3-6% commission, but it would probably still cost you that much anyway in the form of taking longer to sell and attracting less buyers. Basically you lose 8-16% if you buy and sell quickly for the same amount.
Also don't forget property taxes and insurance, which will combine to cost you somewhere between 1-5% of the house value per year.
People conveniently forget the above costs after they sell, as they want to feel good about their decisions. They buy for $300K and sell for $350K a couple years later, and talk about making $50K profit when in reality it was a small loss.
Buying a house is indeed a big risk. However, waiting until you get the green card before you buy is also a big risk. You might lose $20-$50K if you have to sell quickly after you buy, but you could lose $100-$200K by waiting because the price could increase by that much while you wait. Renting is also a risk because you never know how much rent will increase each year.
No matter what you do, you can't escape the risks of real estate. Just don't take stupid risks like interest-only mortgages if you do decide to buy. And don't sell too fast if you have to leave the country; clear out the house and let a realtor find a buyer while you restart your life back home. Have them send the papers to you wherever you live, and then you sign them, get them notarized, send them back and the money will be wired to you.
I am buying something soon. I'm not waiting for the green card before buying, only to get it years later and wish that I bought back in 2005. If I lose 10 or 20% by buying, I'll still have something in my 401k and IRA.
Also don't forget property taxes and insurance, which will combine to cost you somewhere between 1-5% of the house value per year.
People conveniently forget the above costs after they sell, as they want to feel good about their decisions. They buy for $300K and sell for $350K a couple years later, and talk about making $50K profit when in reality it was a small loss.
Buying a house is indeed a big risk. However, waiting until you get the green card before you buy is also a big risk. You might lose $20-$50K if you have to sell quickly after you buy, but you could lose $100-$200K by waiting because the price could increase by that much while you wait. Renting is also a risk because you never know how much rent will increase each year.
No matter what you do, you can't escape the risks of real estate. Just don't take stupid risks like interest-only mortgages if you do decide to buy. And don't sell too fast if you have to leave the country; clear out the house and let a realtor find a buyer while you restart your life back home. Have them send the papers to you wherever you live, and then you sign them, get them notarized, send them back and the money will be wired to you.
I am buying something soon. I'm not waiting for the green card before buying, only to get it years later and wish that I bought back in 2005. If I lose 10 or 20% by buying, I'll still have something in my 401k and IRA.
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texancanadian said:
Cash is King but cash will not grown. 100K cash is still 100K for the next few years.
Let say one of my neighbor. They are on H1 also. They drop for the new house like you did in July 2003, move in Oct 2003 with 390K house. 2 weeks ago. They put their house on market with a bit lower than regular price due to moving (price: 570K) and got sold in 3 days with 600K.
Let see how they made: 80K drop and closing cost in 2003 becomes 290K today ( minus the cost of 2% plus 5K = 17K for selling). They got 273K today.
What do you see ? You can sell your house very fast if puting the price a bit lower than the market. However, you will get the bid price much higher than your current price
Yes, it is risky if you lose the job right after getting the house, but it is not so bad also.
The same story on my neighborhood. For 1 house, first guy comes in the first pharse and books for 400K (this is a big house, around July 2003). After few months before completion, he is affraid to lose his job (like you) and drop out. The second one come in with the price 460K on Feb 2004 ( builder loves this since they got 60K more because of the first guy drop out). The takeover guy put the house into market right after the whole neigborhood complete on 04/2004 and got it sold for 540K. So, he made 80K in less than 1 month of owning the house. Minutes all stuffs and tax, he made at least 40K in a month. What is an investment ? He is on H1B also, but he did drop 2 different houses. That is why he sold this one right after closing.
Jackolantern
Registered Users (C)
Those are all good stories, but they cannot be expected to continue in the future. Like the tech boom of the late 90s, the housing boom is an anomaly that will not continue forever.newbies said:Cash is King but cash will not grown. 100K cash is still 100K for the next few years.
Let say one of my neighbor. They are on H1 also. They drop for the new house like you did in July 2003, move in Oct 2003 with 390K house. 2 weeks ago. They put their house on market with a bit lower than regular price due to moving (price: 570K) and got sold in 3 days with 600K.
Let see how they made: 80K drop and closing cost in 2003 becomes 290K today ( minus the cost of 2% plus 5K = 17K for selling). They got 273K today.
What do you see ? You can sell your house very fast if puting the price a bit lower than the market. However, you will get the bid price much higher than your current price
Yes, it is risky if you lose the job right after getting the house, but it is not so bad also.
The same story on my neighborhood. For 1 house, first guy comes in the first pharse and books for 400K (this is a big house, around July 2003). After few months before completion, he is affraid to lose his job (like you) and drop out. The second one come in with the price 460K on Feb 2004 ( builder loves this since they got 60K more because of the first guy drop out). The takeover guy put the house into market right after the whole neigborhood complete on 04/2004 and got it sold for 540K. So, he made 80K in less than 1 month of owning the house. Minutes all stuffs and tax, he made at least 40K in a month. What is an investment ? He is on H1B also, but he did drop 2 different houses. That is why he sold this one right after closing.
Prices will flatten or fall, the only unknown is when that will happen. One should not buy a house without being prepared to take a 10-20% loss. If you realize a profit, it's a nice bonus, but profit should not be expected.
I thought we were talking about buying a house to live in it?, not to sell for a profit in two months and move out??.
i know people made 30-60% in this housing market, but that is just because of the boom.
as far as i know buying a house now may be like buying tech stocks in 2000, you never know prices may drop 20% in 3-4 months.
but still i will be interested in buying a house which will give me a decent appreciation on 3-4%, where i can expect to stay for atleast 3-5 years (good jobs in 100 mile radius), and if i have kids, add another criteria, good public school.
i know people made 30-60% in this housing market, but that is just because of the boom.
as far as i know buying a house now may be like buying tech stocks in 2000, you never know prices may drop 20% in 3-4 months.
but still i will be interested in buying a house which will give me a decent appreciation on 3-4%, where i can expect to stay for atleast 3-5 years (good jobs in 100 mile radius), and if i have kids, add another criteria, good public school.
WorryForGC
Registered Users (C)
not past the poster is asking now & future, anyone thinking of profit is sure wise;-)
Jackolantern
Registered Users (C)
If you buy a house before getting the GC you could find yourself suddenly forced to leave the country. So if you buy you should be prepared to take a 10-20% loss, because unlike GC holders and US citizens you may not have the option of living in it for 5+ years while waiting for prices to recover.techy2468 said:
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will_get_there1
Registered Users (C)
Not Now -- Please !
Though it is futile to time the Housing market, but at this stage it seems to be at peak so one should venture to buy house with great care. My recommendation is - Big NO at the moment.
I have been tracking this blog for some time http://thehousingbubble2.blogspot.com/
it gives very useful historical / current information on housing. If you want to buy then please read through the posting on this blog and then make an educated decision.
Though it is futile to time the Housing market, but at this stage it seems to be at peak so one should venture to buy house with great care. My recommendation is - Big NO at the moment.
I have been tracking this blog for some time http://thehousingbubble2.blogspot.com/
it gives very useful historical / current information on housing. If you want to buy then please read through the posting on this blog and then make an educated decision.
I am getting close to the end of my 6th year h1b and I see no light when I can file I485. I have been living my life being afraind what if I lost h-1b or I would never get my gc. So we have accumaulate no luxuries in our life except some basics. But now I am tired of this kind of life. My life span is short and I work hard to earn money to enjoy. I am currently searching a house and hope can move in soon. Even we were forced to back home, we are relatively smart and well educated people. If we can't earn as much as we got here, we should still be able to live a decent life.
blister1889
Registered Users (C)
Go ahead and buy a hoeme... The only downside is that there is a slight chance for a loss..but the upside is that you will be living in a spacious home instead of a crappy apartment..
Live life big.
Live life big.
meranumkabayega
Registered Users (C)
It all depends on a individual. Ofcourse no one can predict future, but I think one should buy a house only when one is ready--bubble or no bubble. If one is thinking of selling(even before buying), maybe it is not right time to buy. You have to get that feeling of "house, home". For us visa holders, GC is a big hindrance. 485 filed, you and spouse have EAD, stable jobs--then one can think of buying a house. It might be fruitless to wait few yrs for PD to be current.
Tread Carefully
Bullishness could turn into bloodbath on a dime. Don't do it just based on past experiences and your neighbor's experiences.
Just envisage this scenario.. You just lost your job, H1-B because of downturn caused by housing slowdown and you lost a packet of money because your house is worth less than what you bought it for. Very plausible scenario.
Respect the Risk. We don't know the Future.
Bullishness could turn into bloodbath on a dime. Don't do it just based on past experiences and your neighbor's experiences.
Just envisage this scenario.. You just lost your job, H1-B because of downturn caused by housing slowdown and you lost a packet of money because your house is worth less than what you bought it for. Very plausible scenario.
Respect the Risk. We don't know the Future.