Quiet Bath & Kitchen Fans. Pumps. Cool Mechanical Stuff. Engineers Boutique (Advertisement)

Why Now Is a Good Time to Buy a House


By mili   Follow   Thu, 12 Apr 2012, 7:53am   12,614 views   123 comments
Watch (1)   Share   Quote   Permalink   Like   Dislike  

Although the economic recovery remains sluggish and some fear rising interest rates, there are growing signs that this a good time to buy a house, according to a new study.

http://www.thefiscaltimes.com/Articles/2012/04/11/Why-Now-is-a-Good-Time-to-Buy-a-House.aspx

« First     « Previous     Viewing Comments 84-123 of 123     Last »     See most liked comments

  1. RentingForHalfTheCost


    Follow
    Befriend (8)
    62 threads
    2,503 comments
    Pleasanton, CA

    84   11:56am Sun 15 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike  

    E-man says

    Can you convince us now is a good time to sell? One man's misfortune is another man's blessing.

    All-in baby. :)

    Learn from your victory. Prosper from your failure.

    If you have more than 40% of your wealth in your house, then you should sell. You are in fact gambling for your wealth, rather than creating it.

  2. B.A.C.A.H.


    Follow
    Befriend (6)
    8 threads
    2,706 comments

    85   12:15pm Sun 15 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    FortWayne says

    If you think prices are normal now, just think what they will do once interest rates go up

    Damn. If the rate goes from 3.5 to 4.5% that will be an increase in borrowing cost (borrowing cost = "housing cost") by about a third.

  3. RentingForHalfTheCost


    Follow
    Befriend (8)
    62 threads
    2,503 comments
    Pleasanton, CA

    86   1:09pm Sun 15 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike  

    B.A.C.A.H. says

    FortWayne says

    If you think prices are normal now, just think what they will do once interest rates go up

    Damn. If the rate goes from 3.5 to 4.5% that will be an increase in borrowing cost (borrowing cost = "housing cost") by about a third.

    Forget house prices. Just imagine what happens to the U.S. revolving debt if we have rising interest rates. That is the whole reason why the Fed is buying up 70% of the notes. It has nothing to do with housing. Housing is just benefiting on the heals of our enormous debt/deficit problem in this country. Just as the judgment day will come for the debt, so will the judgment day come for housing. Your guess is mine as to how bad this will get, but it will get bad, make no mistake.

    http://theeconomiccollapseblog.com/archives/it-is-now-mathematically-impossible-to-pay-off-the-u-s-national-debt

  4. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    87   7:08am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    RentingForHalfTheCost says

    If you have more than 40% of your wealth in your house, then you should sell. You are in fact gambling for your wealth, rather than creating it.

    Well put. If a house is an "investment," it's not a very diversified one. And in places like CA, it's value will be very volitile. It's not a very "liquid" asset either. And the transaction fees (thanks to Realtors) are very expensive. And, oh yeah, this "investment" pays negative dividends: insurance, property taxes, and maintenance.

    That's not the kind of investment I want.

    A house is a place to live, not an investment.

  5. bubblesitter


    Follow
    Befriend (5)
    10 threads
    2,703 comments

    88   7:46am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    RentingForHalfTheCost says

    If you have more than 40% of your wealth in your house, then you should sell. You are in fact gambling for your wealth, rather than creating it.

    Exactly,from an investor(landlord) perspective being cash flow positive is like living rent to rent with debt slavery and being a renter from landlords perspective is living paycheck to paycheck with no debt slavery. It does NOT make sense on being a landlord on a zero or negative equity mortgage. DO THE MATH.

  6. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    89   9:37am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    If now is not the good time to buy a house, then when? Will it ever be a good time in Bay Area?

  7. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    90   9:48am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    hanera says

    If now is not the good time to buy a house, then when? Will it ever be a good time in Bay Area?

    It will be a good time to buy when the average monthly mortgage interest payment drops below the average monthly rent.

  8. FortWayne


    Follow
    Befriend (13)
    135 threads
    4,937 comments

    91   11:19am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    You know the writing is on the wall. Prices will be going down at some point big time after elections. I'm even more convinced after I heard Romney speak today.

    Property taxes won't be a write off, interest rate write off is going away as well... all that translates to a market that is more free, but also market that is based on supply and demand, not arbitrary government desires.

    Obama *might* fight against the idea with lip service on a campaign trail, but lets be realistic he'll still sign it when it will arrive on his desk.

  9. BoomAndBustCycle


    Follow
    Befriend
    39 threads
    431 comments

    92   11:32am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    FortWayne says

    You know the writing is on the wall. Prices will be going down at some point big time after elections. I'm even more convinced after I heard Romney speak today.

    Property taxes won't be a write off, interest rate write off is going away as well... all that translates to a market that is more free, but also market that is based on supply and demand, not arbitrary government desires.

    Obama *might* fight against the idea with lip service on a campaign trail, but lets be realistic he'll still sign it when it will arrive on his desk.

    Quality Auto Repair Since 1979

    That's kind of crazy talk... Not allowing property taxes to be a write off.. just lowers property values.. so the state collects less tax overall. Same with interest rate deduction. If anything states and government want to keep housing high. It's like cutting off your nose to spite your face.

    It might be decreased by a small amount... or have a cutoff.. But it's only going to affect homes over $500K and UP. I predict far less drastic changes than you are predicting. Lots of pressure on $500K homes and up is likely. You can't squeeze any more blood from the middle class, without killing GDP and the economy.

  10. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    93   11:33am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    No property tax and interest write-off means landlord have higher costs which would be recovered from tenants leading to increase in rentals. This would push the buy or rent equation towards rent.

  11. BoomAndBustCycle


    Follow
    Befriend
    39 threads
    431 comments

    94   11:34am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    wthrfrk80 says

    It will be a good time to buy when the average monthly mortgage interest payment drops below the average monthly rent.

    My monthly interest on a 4 bed/2bath pool home is only $1180 a month (and dropping every month)... I'd be lucky to rent a studio or 1 bedroom apartment for that in my area, so I would say we are already there.

  12. David9


    Follow
    Befriend (4)
    31 threads
    977 comments
    Tarzana, CA

    95   11:38am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    BoomAndBustCycle says

    If anything states and government want to keep housing high.

    Yeah, well, that's for sure.

  13. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    96   11:40am Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    BoomAndBustCycle says

    . Not allowing property taxes to be a write off.. just lowers property values.. so the state collects less tax overall. Same with interest rate deduction. If anything states and government want to keep housing high. It's like cutting off your nose to spite your face.

    Exactly. Debt=Money. The more people borrows, the more money is created, the higher the GDP and the bigger the economy grows. Housing loan is likely the biggest debt for most of us. So pushing for each citizen to have a house and subtly encouraging rising (not too fast) house prices is at the top of the agenda for most government.

  14. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    97   1:21pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    BoomAndBustCycle says

    My monthly interest on a 4 bed/2bath pool home is only $1180 a month

    The interest is "only" $1180/month? You're making some banker very happy!

    My rent is $750 a month. It costs me less to rent a place to live than it costs you to rent money for a place to live. And my property taxes, insurance, and maintenence are included in my rent!

  15. bubblesitter


    Follow
    Befriend (5)
    10 threads
    2,703 comments

    98   1:58pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    wthrfrk80 says

    BoomAndBustCycle says

    My monthly interest on a 4 bed/2bath pool home is only $1180 a month

    The interest "only" $1180/month? You're making some banker very happy!

    My rent is $750 a month. It costs me less to rent a place to live than it costs you to rent money for a place to live. And my property taxes, insurance, and maintenence are included in my rent!

    Yeah,you are like spending 60 cents only,and spending NOT spending 1 $ and getting 25 cents back,so your net change is +15 cents. Once you own you can never get that math right. :)

  16. tatupu70


    Follow
    Befriend (3)
    19 threads
    7,569 comments

    99   3:59pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    bubblesitter says

    Yeah,you are like spending 60 cents only,and spending NOT spending 1 $ and getting 25 cents back,so your net change is +15 cents. Once you own you can never get that math right. :)

    Well, if you really want to get the math right, I'd expect one to compare renting and owning in the same city. Owning in Bay Area vs. renting in Corning, NY is a bit of a false comparison, wouldn't you say?

  17. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    100   4:11pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    tatupu70 says

    Well, if you really want to get the math right, I'd expect one to compare renting and owning in the same city. Owning in Bay Area vs. renting in Corning, NY is a bit of a false comparison, wouldn't you say?

    True. Unless the ability to move is part of the equation! Why pay more than you need to? There are plenty of good jobs in locations outside of the bay area. There aren't too many in Corning, NY but there are plenty elsewhere. It all boils down to what kind of job you can get vs. cost of living. The ratio isn't very good in the bay area.

  18. tatupu70


    Follow
    Befriend (3)
    19 threads
    7,569 comments

    101   7:46pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    wthrfrk80 says

    Unless the ability to move is part of the equation! Why pay more than you need to?

    Good point. My post was mainly towards bubblesitter, but I forgot he's got me on ignore so it's a useless endeavor.

    Regradless, your point is a valid one.

  19. Clara


    Follow
    Befriend (10)
    11 threads
    169 comments
    San Bruno, CA

    102   7:57pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Many of my friends bought this year. They don't look too dumb to me. They seems to be enjoying their new homes.

  20. BoomAndBustCycle


    Follow
    Befriend
    39 threads
    431 comments

    103   11:57pm Mon 16 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    wthrfrk80 says

    BoomAndBustCycle says

    My monthly interest on a 4 bed/2bath pool home is only $1180 a month

    The interest "only" $1180/month? You're making some banker very happy!

    My rent is $750 a month. It costs me less to rent a place to live than it costs you to rent money for a place to live. And my property taxes, insurance, and maintenence are included in my rent!

    Did you even read what i wrote!? It would cost me more than $1180 a month to rent a 1 bedroom 600 sq ft apt! I also pull in six figures working in the tv and film industry. I wouldnt make close to that anywhere else without going back to school and changing careers. So moving isnt a viable option or a desire.

  21. dodgerfanjohn


    Follow
    Befriend
    27 threads
    1,086 comments
    Los Angeles, CA

    104   7:48am Tue 17 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    I already feel vindicated.

    My employer has been dealing with their lack of incoming revenue issue for the past several years by placing employees on four furlough hours per week amoungst other measures, most of which there are lawsuits filed against at this point.

    In our most recently proposed contract, the furloughs would be eliminated and we would receive a 4% cost of living increase. We would also have to give up all the lawsuits as well as contribute 8% more to vested benefits that we would be permanently voting away. Obv this is absolutely horrible.

    But many of my co-workers foolishly stretched to mortgage homes. And they are bitching and whining about how much furloughs are "costing" them. LOL. Keep in mind, at least one of these people makes 30% more than me, and another makes almost twice what I do...both very well into the $100K+ range.

    I rent, and even though I make substantially less, I am in a MUCH better financial situation. All furloughs mean to me is that I save $1000/mo instead of $1400-1500/mo(on top of my 457 contributions).

    The difference is, I did not buy a house I cannot afford. I do not renovate a home with renovations I cannot afford. I live in a place were rent is very affordable. I have enough savings to live on well past my lease. If my income dropped substantially, I could very easily move into a place that is about 2/3 the cost of my current rental.

    At this point, mortgaging a home is like throwing money away.

  22. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    105   8:13am Tue 17 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    BoomAndBustCycle says

    I also pull in six figures working in the tv and film industry. I wouldnt make close to that anywhere else without going back to school and changing careers. So moving isnt a viable option or a desire.

    As long as you make six figures you're just fine living in CA. And you're probably right, if you're in TV and film you're "stuck" in CA.

  23. New Renter


    Follow
    Befriend (3)
    28 threads
    5,056 comments
    San Jose, CA

    106   8:54am Tue 17 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    hanera says

    No property tax and interest write-off means landlord have higher costs which would be recovered from tenants leading to increase in rentals. This would push the buy or rent equation towards rent.

    And what makes you think your friendly neighborhood landlord isn't already charging you the maximum possible? Raising the rent means risking losing you as a tenant. Even in times of low vacancy this is risking a lease to a deadbeat who will trash the place upon eviction. This happened in the last apartment I rented. I found this out when I asked why the apartment had just been renovated as we were looking to rent it. Those people went somewhere, maybe they're looking to rent your place next.

  24. New Renter


    Follow
    Befriend (3)
    28 threads
    5,056 comments
    San Jose, CA

    107   8:55am Tue 17 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Clara says

    Many of my friends bought this year. They don't look too dumb to me. They seems to be enjoying their new homes.

    Yes, lots of people feel great as they are GETTING herpes, not so great after.

  25. freak80


    Follow
    Befriend
    65 threads
    5,520 comments
    Corning, NY

    108   8:57am Tue 17 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    New renter says

    Yes, lots of people feel great as they are GETTING herpes, not so great after.

    Ba zing! +1.

  26. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    109   3:01pm Tue 17 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    New renter says

    Even in times of low vacancy this is risking a lease to a deadbeat who will trash the place upon eviction. This happened in the last apartment I rented. I found this out when I asked why the apartment had just been renovated as we were looking to rent it.

    Which neighborhood of San Jose? I want to avoid that neighborhood.

  27. thomas.wong1986


    Follow
    Befriend
    16 threads
    4,424 comments

    110   12:01am Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    mili says

    Although the economic recovery remains sluggish and some fear rising interest rates, there are growing signs that this a good time to buy a house, according to a new study.

    its never a question of WHEN ... but HOW MUCH ???!

    for the uninformed who will overpay today! its NOT a good time to buy today.

    but for the informed who will NOT overpay its a different story...

    for the biggest purchase in your lifetime.. its always better to question the PRICE and not WHEN.

  28. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    111   12:05am Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    http://www.mercurynews.com/business/ci_20410464/bay-area-rent-renters-expensive-squeeze-tight-market?source=email

    Kennon Reinard and her husband were among those who felt the time was right. The couple has rented a two-bedroom apartment in Chicago for the past six years. Over the past month, they looked at 14 houses before making an offer of nearly $260,000 on a four-bedroom home on the Northwest side of the city.
    "We've always wanted a house, but we never thought we could afford one," said Kennon Reinard, 33. "But we started noticing friends buying houses last summer and, when we checked it out, we realized we could own a whole home with a backyard without paying that much more than what we're paying in rent."
    The Reinards had been socking away a portion of their paychecks for all the years they rented and both have solid credit histories. They are coming to their closing in May with a down payment of more than $25,000.
    "We feel very safe in our jobs," Reinard said. "We've been pretty financially responsible so we got thumbs up after all the checks."
    http://www.mercurynews.com/real-estate/ci_20416459/new-home-construction-pick-up-soon-report-suggests?source=autofeed#

  29. StoutFiles


    Follow
    Befriend (1)
    24 threads
    557 comments

    112   7:23am Thu 19 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike  

    hanera says

    "But we started noticing friends buying houses last summer

    But we noticed the Joneses got a new house, and we had to keep up with them! I would hope that they aren't tapping into all their savings for that paltry 10.5% down payment.

  30. New Renter


    Follow
    Befriend (3)
    28 threads
    5,056 comments
    San Jose, CA

    113   10:59am Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    hanera says

    New renter says

    Even in times of low vacancy this is risking a lease to a deadbeat who will trash the place upon eviction. This happened in the last apartment I rented. I found this out when I asked why the apartment had just been renovated as we were looking to rent it.

    Which neighborhood of San Jose? I want to avoid that neighborhood.

    Foxchase by Blossom Hill and Almaden Expressway.

    The complex is quite nice though and is quite reasonable when it comes to returning your deposit - at least they were with us

  31. Shawn


    Follow
    Befriend
    3 threads
    106 comments
    San Diego, CA

    114   11:31am Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    wthrfrk80 says

    BoomAndBustCycle says

    I also pull in six figures working in the tv and film industry. I wouldnt make close to that anywhere else without going back to school and changing careers. So moving isnt a viable option or a desire.

    As long as you make six figures you're just fine living in CA. And you're probably right, if you're in TV and film you're "stuck" in CA.

    I have to disagree with that. It's really frustrating to look at the census data and see that your above the average income and then talk to realtors who suggest you downsize your expectations. "You should consider a townhouse or a condo....."

    Then again, I guess I never upsized the % of income I was willing to spend on housing when I moved out here, so I'm not really playing the game according to local rules.

  32. strange little vine


    Follow
    Befriend
    1 comments

    115   11:56am Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    In the cities I am interested in, the average homes that are 1,200sf or less are selling for $400-$600 a square foot and the ones that are 1,300sf + are selling for $250-$400 a square foot. Most of the homes in the $250-$400sf price range are nicely remodeled, were as the homes in the $400-$600sf are mostly fixer-uppers. What is the logic behind this?

  33. CrazyMan


    Follow
    Befriend
    509 comments
    Boulder Creek, CA

    116   12:27pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Clara says

    They seems to be enjoying their new homes.

    Today's buyers are tomorrow's defaulters, me thinks.

  34. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    117   3:05pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Rent or buy?

    Assume a 30-year fixed interest loan.

    Rent: Total rents paid over 30 years is less than Interest paid over 30 years for the mortgage + Property taxes paid over 30 years + Insurance taxes paid over 30 years + Home improvements/maintenance made over 30 years

    Principal repayment should not be included as it is not expenses, it is equity i.e. PITI without the P and add home improvements/maintenance.

    Buy: Price of house has appreciated more than 20% of the purchase price at the end of 30 years.

  35. bubblesitter


    Follow
    Befriend (5)
    10 threads
    2,703 comments

    118   4:11pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    hanera says

    Principal repayment should not be included as it is not expenses, it is equity i.e. PITI without the P and add home improvements/maintenance.

    Sure,but it has to be considered as lost "opportunity cost". For the time period of that 30 years(especially next 10 years or so) price may go down and you are just paying a $ to the bank for let's say 90 cents(assuming 10% decline with no DP on the loan) you borrowed,you are not gaining anything - Instead you could have invested that principal into something worth that fetches some money,let's say at the least 2% on a 5 year CD,yeah I'd go for that rather then having 5 years of declining home equity. PITI calculation does not include DP. If you have DP then you loose a part of DP as well. Most people here can't do the math correctly on how much is lost if the value of home sinks after one has bought - it is SIGNIFICANT. The argument I hear from the other side is,but you still pay the rent? right? sounds like speaking for Larry Yun.

  36. hanera


    Follow
    Befriend (3)
    8 threads
    324 comments

    119   4:43pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Bubblesitter,

    For the house that I'm currently staying in, if the price of the house has not appreciated by more than 20% + opportunity cost by the end of 30 years, it is better off for me to rent it (just theoretically). Unfortunately, opportunity cost is hard to compute. For example, if at the peak of stock market in 2007, I'd invested in a very safe bank stock like C, I would have lost 90% of my investment. Whereas if I'd invested in a risky growth stock like AAPL, my investment would have tripled. To push this to the limit, if I'm a lucky person, renting would be the way to go since investing in AAPL would grow my net worth by leaps and bounds.

  37. bubblesitter


    Follow
    Befriend (5)
    10 threads
    2,703 comments

    120   5:18pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    hanera says

    Unfortunately, opportunity cost is hard to compute.

    All I am saying is prices are sinking in some of high priced areas of CA and may do so for another 5 to 10 years - It is not a good time to buy when prices are sinking. I recommend renting until the prices are sinking,and buy only when price/rent makes sense. I am NOT recommending renting for life. That is why I pointed you a safe 2% CD option,at least you don't loose your $,but if you buy a property now in some insanely priced areas it'd be a bad decision - turn your 1 $ into 70 cents(loosing 2% interest on 1 $ and completely loosing 30 cents).

  38. New Renter


    Follow
    Befriend (3)
    28 threads
    5,056 comments
    San Jose, CA

    121   7:29pm Thu 19 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    APOCALYPSEFUCK is Tony Manero says

    No, it means waking up to a tongue bath from the harem, being carried to the dining salon by your adoring wives and fed fresh fruit from your fields, before retiring for the first orgy of the morning and later, over coffee brewed from beans from your fields, planning the afternoon's concert with the castle's music director and conductor of the resident symphony. Lunch figures in there once in a while if you can move your jaw after the orgy. . .

    THANK YOU for putting things into perspective! Screw home ownership as the American dream - Sultanization, that's the dream for me!

  39. fewy


    Follow
    Befriend
    2 threads
    36 comments

    122   9:57am Fri 20 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    strange little vine says

    In the cities I am interested in, the average homes that are 1,200sf or less are selling for $400-$600 a square foot and the ones that are 1,300sf + are selling for $250-$400 a square foot. Most of the homes in the $250-$400sf price range are nicely remodeled, were as the homes in the $400-$600sf are mostly fixer-uppers. What is the logic behind this?

    strange little vine,

    This effect is attributed to that I like to call the 650k barrier. It depends on the area but 650k is approximately the highest amount a first time home buyer with a small down payment and a FHA loan can afford. Again depending on the area once you get over 700k people tend to have 20% down payment which limits potential buyers. The next barrier if you are not looking in the fortress areas is 800k. If you want a conforming loan you will need to put down 20% and any amount over the 800k.
    Smaller homes make for good rental units, if it is under 600k and you can rent it out for 2.5k some people look at this as a long term investment even if it does start with a negative cash flow.

  40. 1sfrenter


    Follow
    Befriend (1)
    11 threads
    224 comments
    San Francisco, CA

    123   11:27am Fri 20 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    fewy says

    This effect is attributed to that I like to call the 650k barrier. It depends on the area but 650k is approximately the highest amount a first time home buyer with a small down payment and a FHA loan can afford.

    We are considering (and qualify for) 90K worth of down payment assistance from the city (interest free, deferred payment, some of it entirely forgivable) and the max we are allowed to buy is 637K.

    There have been 2 houses we loved that went for 650K and 675K and they were out of reach for us.

« First     « Previous comments    

mili is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 189 milliseconds to create.