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edvard2 says

dodgerfanjohn says

The people having problems with landlords and rental issues like noise and stuff....its not renting that is the issue. It's the property. Bad rental situation isn't any reasonable impetus to buy. Motivation to move? Yes. Buy? No.

Totally, totally agree. As I mentioned before I basically rent exactly what it sounds like the OP wants, and what's more, I'm paying $1,200 for our share. Its a nice neighborhood with good neighbors. Sweet situation in any case.

You know what's worse? A bad loan owning situation, or maybe realizing you don't own a thing but debt and liability.

there's nothing wrong with using a mortgage to purchase a home. Especially if you dont feel like tying up all of your cash.

renters who cry foul and say you dont really own anything either sound more like jealously to me.

AM said: With a 10 or 15 yr mortgage, if I have the ability to service the debt in a meaningful fashion - then that debt is productive and helps me get to the future where I don't have to pay rent at all.
The ROI on a paid off home usually isn't that great. That's not to say paying off a mortgage is a bad thing as many folks benefit from a paid off home in retirement. It's a nice fixed return with home equity available in an emergency. But going for a shorter term on the mortgage basically says "I don't have the financial discipline to do anything better with my money than stuff it into the piggy bank which is my home". The truth of the matter is, though, most Americans probably fall in that category where they benefit from the forced savings account aspect of a mortgage.

I never thought I would buy a home. This changed though on 9/8/11 when I closed on a very nice home about 10 miles north of Denver. I moved from San Jose, CA. When I lived in SJ I swore I would NEVER buy, at least not in that area, not in Calibubbleya. I barely make 6 figures so 3x that doesn't back Jack in that area. Renting sucked, I could of/should of moved, but the place I was at was nice and a in a good location downtown. What sucked about it was the constant influx of spoiled college students who didn't give a rats ass about quiet hours. Home from the bar at 2:30am on Wednesday morning, yep, time to crank the jams. Incompetent landlords too. Constantly giving out my parking space to new renters. As I said I could have/should have moved. Why didn't I? Every time I shopped around the rent prices made me sick. Luckily I qualified for a below market rate on my unit, so the cost was low for the area. LOL. Still makes me chuckle to think a six figure income earner was getting subsidized housing, but that's California for ya.

One day I thought "What if I could take my Cali salary out of Cali?" Hmm... I was being groomed for management and my team was being built on the other side of the world (Pune, India). I approached my boss with this and he talked to his boss and the verdict was "Live where you want, your team is remote anyway".

BOOM SHAKA LAKA!

My reasons for wanting to buy are many, mostly inline with what's been post already. It puts a smile on my face watching my little girl play in the backyard. Watching my wife in her kitchen. Hanging in my basement, playing my guitar louder then ever possible in my old apartment. I may be a slave to debt as Ms. Perry says, but I've never been happier. I am fully expecting the value of this place to drop below what I paid. Am I going to cry and stop paying the mortgage, and whine, and then bitch about it? Nope. I'm going to live here for a very long time, pay this place off at least 10 years early (30 year mortgage here) and keep smiling.

If something beyond my control happens and I can't follow through with my plan, then I will take the memories of living here with me wherever I go.

If you rent all your life and then die, what do you have? Do you get a Patrick.net t-shirt for your corpse? LOL.

toothfairy says

sound more like jealously to me.

Well, NOT buying declining value property sounds like financially smart decision to me. Is that all you can come up with?

bubblesitter says

toothfairy says

sound more like jealously to me.

Well, NOT buying declining value property sounds like financially smart decision to me. Is that all you can come up with?

well if you wanted a rising value property you shouldve bought in 2005

toothfairy says

shouldve bought in 2005

You meant before 2000? correct? Care to honestly disclose when you bought?

Edvard2, are you the same person as Bob on burbed.com? Just curious, as Bob has the exact same situation. Lives in the east bay with a housemate, from the southeast, wants to move to Austin or Nashville or someplace like that but still lives here.

Greg1867 says

My reasons for wanting to buy are many, mostly inline with what's been post already. It puts a smile on my face watching my little girl play in the backyard. Watching my wife in her kitchen. Hanging in my basement, playing my guitar louder then ever possible in my old apartment. I may be a slave to debt as Ms. Perry says, but I've never been happier. I am fully expecting the value of this place to drop below what I paid. Am I going to cry and stop paying the mortgage, and whine, and then bitch about it? Nope. I'm going to live here for a very long time, pay this place off at least 10 years early (30 year mortgage here) and keep smiling.
If something beyond my control happens and I can't follow through with my plan, then I will take the memories of living here with me wherever I go.
If you rent all your life and then die, what do you have? Do you get a Patrick.net t-shirt for your corpse? LOL.

#1. You just compared apples to oranges(rental apartment vs. purchase house). If you wish to make compelling arguments, compare like situations. You disingenuously attempt to make the reader of your post believe that renting an apartment is the same price as your mortgages on a house, and thats pure bullshit.

#2. Rental houses have backyards for your kid to play in and kitchens for your wife to cook in, and basements(theres basements in California?) to play guitar in.

#3. What puts a smile on my face is an abundance of 20 year old inexpensive hookers.

Greg1867 says

One day I thought "What if I could take my Cali salary out of Cali?" Hmm... I was being groomed for management and my team was being built on the other side of the world (Pune, India). I approached my boss with this and he talked to his boss and the verdict was "Live where you want, your team is remote anyway".

Truthfully I don't understand why this situation isn't more common these days. I'd say that 95% of the interaction I have with people at my job are with people who don't even live here. I'm on the phone half the day with people from all over the country. If I were offered the chance to "Live where I want", you'd better believe I'd be packing tomorrow. Hell- I'd even take a significant pay cut.

^ you can now buy a house on an acre+ in CO for the cost of an apartment in CA again:

http://www.redfin.com/CO/Larkspur/1976-Kinnikinnik-Dr-80118/home/35255416

Monthly outgo: $1860
Outgo less principal repayment: $1400
Average cost of ownership over 30 years: $1100

The median in this area went from $360k in 2002 to $490k in 2006, now it's back down to $370k.

I think that's a good level to buy at.

Bellingham Bob says

median in this area went from $360k in 2002 to $490k in 2006, now it's back down to $370k.
I think that's a good level to buy at.

How is this a like argument? I can buy a house in Detroit for less than the change I hand a hobo.

So f----- what?

dodgerfanjohn says

How is this a like argument? I can buy a house in Detroit for less than the change I hand a hobo.
So f----- what?

How is that a like sentence? It's a pretty simple argument really--prices are back to non-bubble levels.

What does the price of a house in Detroit have to do with anything?

dodgerfanjohn says

So f----- what?

Waiting for the bottom is a questionable exercise.

The example I gave was a house that sold in 1997 for $335k sold this summer for $425k.

In 1997, rates were 7.5% - 8%, and the conforming limit was $214,000.

Compared to 1997, the 2011 price of this house was a bargain.

The original point was that one can buy some good land now for what it costs to rent in CA.

It's a point well worth taking seriously.

I don't see a bottom forming yet, but I do think if certain things happen in the next year or two we could very well see jaw-dropping inflation across the board later this decade.

Maybe I'm beeing trolled?

Even at the height of bubble mania it was cheaper to mortgage in some parts of the country than pay rent in a CA apartment so in dont get the argument

tatupu70 says

dodgerfanjohn says

How is this a like argument? I can buy a house in Detroit for less than the change I hand a hobo.
So f----- what?

How is that a like sentence? It's a pretty simple argument really--prices are back to non-bubble levels.

What does the price of a house in Detroit have to do with anything?

The comparison as stated was buying a house in Colorado to renting an apartment in CA. Why not Detroit, Killeen TX, or BFE, KS as well?

Prices in metro urban CA, other than very few exceptions(Covina for instance) are still very much in a bubble.

dodgerfanjohn says

Even at the height of bubble mania it was cheaper to mortgage in some parts of the country than pay rent in a CA apartment so in dont get the argument

That may be so, the Front Range area had something of a bubble, 2005-2006.

It came late and wasn't as pronounced, but my friend bought into it (in 2006) right at the top and his place has lost $200,000 or so in the 5 years. Shoulda rented, but he was taking $400,000 of bubble-era equity with him from CA to CO so it's not so bad for him.

The property I listed above with a $1100/mo cost of ownership is 2.3 acres in one of the better areas to live in the Denver/CS area. It is not some random shithole. Not everyone can work remotely, but if you can, getting out of California is a very good idea, quality of life-wise.

Hence my "location". I think I'd be pretty happy up in Bellingham. $425,000 can buy some very nice places up there, too.

http://www.redfin.com/WA/Bellingham/1387-Nigel-Rd-98226/home/15810444

dodgerfanjohn says

Maybe I'm beeing trolled?

If anyone is trolling, it's you. Bob's post wasn't in response to you at all. It was simply an observation mostly agreeing with the post directly before it. That's why he had the carat (arrow pointing up)

bubblesitter says

toothfairy says

shouldve bought in 2005

You meant before 2000? correct? Care to honestly disclose when you bought?

sure but first tell me why you want to know?

toothfairy says

bubblesitter says

toothfairy says

shouldve bought in 2005

You meant before 2000? correct? Care to honestly disclose when you bought?

sure but first tell me why you want to know?

So I can find out how under water your big ticket item is. :)

Bellingham Bob says

Hence my "location". I think I'd be pretty happy up in Bellingham. $425,000 can buy some very nice places up there, too.
http://www.redfin.com/WA/Bellingham/1387-Nigel-Rd-98226/home/15810444

Bob, Is this correct ? Sold for $515K in 1995? considering many home prices today are much less... someone really porked themself badly.

Property History for 1387 Nigel Rd
Date Event Price Appreciation Source
Sep 09, 2011 Price Changed $429,000 -- NWMLS #260253
Aug 08, 2011 Listed (Active) $439,000 -- NWMLS #260253
Jul 25, 1995 Sold (Public Records) $515,000 -- Public Records

bubblesitter says

toothfairy says

bubblesitter says

toothfairy says

shouldve bought in 2005

You meant before 2000? correct? Care to honestly disclose when you bought?

sure but first tell me why you want to know?

So I can find out how under water your big ticket item is. :)

you cant tell that from knowing when I bought. You also need to know the location and how much I put down.

Funny because my boss asked me the other day if I was looking to buy. I've only been at the new job for 5 months and no rush to buy now.