patrick.net

Yup to save for a DP we are renting half the house we will buy. It blows

Call it Crazy says

JH says

Yup to save for a DP we are renting half the house we will buy. It blows

You wanted to live in Paradise!!

It's the smart thing to do. You make sacrifices in the initial stages, and live well thereafter.
You probably have no credit card balances as well.

All true and reliable cars bought with cash. I think the problem will come when we go to buy and say "hell no we don't want our monthly payment to double" and buy a shack. Then keep saving down payments, buying a rental property every 3 years until we are filthy rich. Or just buy 1 big ass house, become house poor, and regret not moving to jersey...

Strategist says

It's the smart thing to do. You make sacrifices in the initial stages, and live well thereafter.

You make sacrifice in the beginning, then go on throwing tons of money at it, sacrifice your vacations and retirement so you can "own".

That's what your 6%/yr leads to inevitably (and obviously) in a no wage growth environment.

Let's stop all the government support of housing. You want a house? Get a private mortgage. If the lender wants at least 20% down? So be it. If it were my money I would also want the borrower to have some skin in the game.

Watch prices drop and inventory rise!

Call it Crazy says

Call it Crazy says

You can come to Jersey, buy 1 big ass house, and NOT be house poor..

Case in point. My son is moving back here from Denver. He has a contract on a house: Center hall colonial, 4 br, 3-1/2 ba, office, 2 car garage, finished basement, 10 years old, inground pool, on a 1/2 acre. Price is $270K.

Try finding THAT in Paradise!

Well, let's play price is right.
"Drew, I'd like to add a 1. Make it $1270K!"

Well, I just got an email alert today on a similar house within my school district:
4/3, 2842 sf, 0.49 ac, $1,100,000
This house has no pool or basement and is 60 years old.

It's funny how you need $500,000 to buy in (900sf non-updated, so over $500/sf), but when you get to the larger homes, the prices start to compress. Half acre in Fullerton for $1.1 M is pretty solid and less than $400/sf. IF you are sitting on $250k for dp and closing....hahah...that dp is the price of your son's house!!!

JH says

Yup to save for a DP we are renting half the house we will buy. It blows

Is anyone in your family in any branch of the military or a DOD employee?

Call it Crazy says

hoping your job/income doesn't go south

Yes, that is exactly the concern and the reason we might continue to be cheap asses even when we decide to buy.

turtledove says

Is anyone in your family

No, but we can actually get 5-10% dp conventional loans for the same interest rates as 20% without pmi, so we are going to be fine. As long as we don't spend $1.1M hahah. So when I tell CiC we would need a $250k dp, I refer hypothetically to the buyer of the million dollar half acre home up the street...not myself!

Call it Crazy says

I kept getting that "But we can afford a more expensive house" song and dance over and over.

What year was this? Because if this was her strategy in 1990, she might be lauded a RE genius.

Call it Crazy says

Guess what, she's so happy (after the fact) what our mortgage payment is now and how much space we have here... Geez... wives...

I am the one to push for the bigger house here because of the shit-slum I grew up in in Chicago. But I think my wife will bring reason to the game haha

Call it Crazy says

turtledove says

Call it Crazy says

I kept getting that "But we can afford a more expensive house" song and dance over and over.

What year was this? Because if this was her strategy in 1990, she might be lauded a RE genius.

Last year..

She's a future RE genius.

JH says

Call it Crazy says

Guess what, she's so happy (after the fact) what our mortgage payment is now and how much space we have here... Geez... wives...

I am the one to push for the bigger house here because of the shit-slum I grew up in in Chicago. But I think my wife will bring reason to the game haha

Why are women always smarter then men?

Strategist says

Why are women always smarter then men?

And better looking. It's hardly fair.