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And I don't know how realtors come up with the amounts that they say you qualify for. Most are totally unrealistic. I feel that taking the figure they say you qualify for and halving it is more realistic.
I don't know how they come up with them, but I can tell you why they come up with them: Realtors work on COMMISSION. Once they close the deal and get their money. It is not their concern whether you can pay for the house or not, that is between you and the mortgage company. It's the ol' "I'm not against you; I'm for me!" Attitude.
Last edited by savage24; 04/25/17. Reason: Spelling
"There's no schadenfreude like Hillary Clinton schadenfreude."
- Tamara Keel
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Campfire Outfitter
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We moved from Texas to this God-forsaken state of Illinois in 1999. Took out a 30 year note on a house and placed a hefty down payment. The next year interest rates fell to 3.2% from the 4% we were paying. We refinanced and took out a 15 year mortgage. My wife succeeded in paying almost 20 double payments. We paid for our home 2 years ago. We paid for our vehicles almost 8 years ago. Having no house note or vehicle payments is sooooo nice. I'll drive my truck until it becomes too expensive to maintain. My wife will drive her Vibe forever. I save a little back for the downpayment I'll have in reserve for my next new vehicle...if I ever get another one. A truck equipped as mine is now runs around 60K. Sure can buy a lot more of the important stuff like guns, bullets, brass, powder and a Dillon XL 650 since we got rid of the pesky monthly payments.
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Campfire Kahuna
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Campfire Kahuna
Joined: Feb 2001
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Anchorage is teetering on the verge of a big recession, IMO&E, and I am looking at investing in a few properties in a few years. Screwed up by not buying some during the crash in the late '80s.
Almost bought a strip mall at Old Seward and Huffman for 500k in '88 and it would have been ridiculously good by now and paid more than its own way.
During that crash a bunch of big banks invested in this market and propped up the condo and starter house end of things a bit too much.
Not calculating all of the benefits of owning can make someone think it is a bad idea to own...
Mark Begich, Joaquin Jackson, and Heller resistance... Three huge reasons to worry about the NRA.
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Campfire Outfitter
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I hear the comments about selling 30 years later and maybe breaking even.
It doesn't take a genius to point out that the 30 year renter has nothing to sell to
"break even" after 30 years of handing money over.
Renting is literally paying the landlords mortgage.
Maker of the Frankenstud Sling Keeper
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Campfire Ranger
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Campfire Ranger
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For much of my life Brick & Mortar has frustrated me with, "We don't have that in stock, but we can order it."
It turns out so can I. Yup. This wasn't always the case in the past because there was no way to find distributers and other dealers, but now the www makes that easy. Parts lists and DIY instructions are also available from mulltiple sources. It's not always just about price, but often time as well.
What fresh Hell is this?
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Campfire Tracker
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Campfire Tracker
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Being able to qualify and being able to afford it are two different things. I wouldnt let anyone tell me what I can afford, only I know that as only I know what I spend on other things other than my mortgage. Just because a Bank or mortgage company will fund you at 40% of your income doesnt mean you will be able to pay it if your going to spend big money on toys and vacations. They dont take into account where your going to get the money for a repair either. Use a realtor to show whats available in the area and for info on comps and leave it at that. Why anyone would take advise from a realtor ( and I am a commercial realtor) on their own personal finances is beyond me.
Life can be rough on us dreamers.
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Campfire Tracker
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These days price of Real Estate is more cyclical and due to the job market people are more transient. Makes it difficult to commit to a mortage on a house if you dont know when you have to move you will be able to sell it and clear your mortgage.
My Grandfather graduated from high school got a job bought a house . He lived in the same town and worked at the same plant until he retired and eventually passed away. Makes good sense to buy if this is your expected situation.
Myself on the other hand graduated from college and moved 6 times the first 15 years. While now I am stable and own my own home these days I would have got smoked if I would have tried to own while I was coming up.
That Said I lived in cheap rentals and saved my money up for for a place of my own. I didnt have to go out and do a 80/20 mortgage for 30 years.
Life can be rough on us dreamers.
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Campfire Regular
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OP
Campfire Regular
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Renting is literally paying the landlords mortgage.
There's no mortgage on my rental property anymore. My renter is paying for my guns.😊 "I spent the rent money on a gun again." Is an ongoing joke with me.
"There's no schadenfreude like Hillary Clinton schadenfreude."
- Tamara Keel
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Campfire Outfitter
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Campfire Outfitter
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For much of my life Brick & Mortar has frustrated me with, "We don't have that in stock, but we can order it."
It turns out so can I. Yup. This wasn't always the case in the past because there was no way to find distributers and other dealers, but now the www makes that easy. Parts lists and DIY instructions are also available from mulltiple sources. It's not always just about price, but often time as well. My nice, but 5-year old Samsung flat screen had sound, but no picture. The local B&M wanted $100 to look just look at it - repair would be extra. I spent 20-minutes on the internet and learned to it was probably a component on the power supply board. The component was a few bucks, but I could buy a brand new board off eBay for $50. I rolled the dice and spent the $50. When I opened the box I said, "Ah, so that's what a TV power supply looks like." I found the board that looked just like it in my TV and replaced it. The internet provided all the instructions. The flippin' TV STILL didn't work. Just kidding, it works great. 
Forgive me my nonsense, as I also forgive the nonsense of those that think they talk sense.
Robert Frost
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Campfire Oracle
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Campfire Oracle
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Gen-x and millennial are stuck in a market where the migration to another company is the only way to advance a career, which could mean migrating to any point in the world on weeks notice. Renting makes more sense when you don't know where next month's paycheck is coming from.
Three days of joining a company, setting down roots, and putting in your 45 years for a pension are gone.
I'm sad for people living that lifestyle and raising children. I went from kindergarten thru high school in the same school district and lived in the same house from 1st grade thru HS. I attend class reunions because I know every one of those people and I've known many of them since grade school. I have a hometown. If someone asks me where I am from, I have an answer! I am sure there are positives to living in lots of places and meeting new people all the time, but I'm happy not knowing what they are. I am aware that people who change jobs every 3-5 years are seen as "go getters" by management in a lot of fields these days. That is also foreign to me. I am a building engineer and in my work the longer you are in one place, the better you know it. I have been at my current job 6 years and work with a guy that has been there for over 30. He is a wealth of information and whenever he is off and there is a crisis, he is the first person management will call and ask 'how fast can you get here?" When I was laid off in 2009 I went to work for a real [bleep] property management company. I was in charge of an 18 story and a 5 story office building. Most engineers last about 2 years there. I lasted 22 months. As a result of that high turnover rate, (and really bad upper management/ownership) the place is in complete disarray. The same old problems were being addressed by a new guy who had no knowledge of how guys before him had tried to rectify the situation. Equipment was valved off and out of service and no one knew why; some said it leaked, others said it was plugged up. Everyone agreed that it had not worked for years. Projects were abandoned half complete because the guy doing the work had left for a better job or been fired And I'm sad for people stuck in the same job for 45 years or 4 generations of people never leaving a 5 mile radius. Staying in one place from tit to grave ain't something that makes someone 'special'
"Dear Lord, save me from Your followers"
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Campfire Outfitter
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Ditto RyanTx.
I preach two things to my kids.
1. You don't have to be rich to retire with wealth. You just need to start early and keep at it. Have a retirement age goal and work towards it.
2.NEVER get a 30 year mortgage. You can get any term you want. If fifteen isn't doable try a 20, but never a 30. A home is only worth its equity.
I am not in good shape for retirement. Inadequate retirement account, at a scary age with a tenuous job which if lost would likely cut my salary in half. No savings. (yes- I have a wife with some issues) Still have some years left on my mortgage which I refi'd from 30 to 15 years some time back. New homes cost twice they did when I bought mine.
I want my kids to be better prepared than I.
When a country is well governed, poverty and a mean condition are something to be ashamed of. When a country is ill governed, riches and honors are something to be ashamed of
. Confucius
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Campfire Regular
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No question, the knife can cut both ways when it comes to the benefits of ownership.
One of my neighbors moved from a small town in New Mexico a few years ago. He had purchased a house on five acres for around $200,000 five years before. Just after he left, the real estate market tanked for some reason and he could not sell his house for four years. When he did, he sold it for $160,000. His payments were around $1,000 a month, so he paid $48,000 over the four years for a home he couldn't sell or live in, not to mention the loss.
One of my coworkers moved from Fallon, Nevada in the fall of 2008. When he went to sell his house, it appraised for $60,000 less than he paid for it two years before and $40,000 less than he owed on it. Nobody bought the house, and since he was a young guy with three kids, he couldn't pay the mortgage so the bank took it back. Ruined his credit and he is still renting 9 years later.
I own a lot of real estate myself, so I am not saying ownership is a bad thing, but like everything else, it does not work for everyone. Especially people in industries where you have to "Move to move up".
The first great thing is to find yourself and for that you need solitude and contemplation. I can tell you deliverance will not come from the rushing noisy centers of civilization. It will come from the lonely places. Fridtjof Nansen
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Campfire Outfitter
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Campfire Outfitter
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Even a 30 year mortgage is better than paying rent for 30 years
Maker of the Frankenstud Sling Keeper
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Campfire Regular
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Campfire Regular
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At 4% I'd take a 1000 year mortgage.
abusus non tollit usum
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Campfire Tracker
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Owning has been good for me and I think it is still preferable for a young family looking to settle down. I do however think there's risk in buying a McMansion thinking you will flip it and make a fortune. There's good buys in older homes but kids don't want them they watch too much HGTV and can't live w/o the bells and whistles. I just sold my Moms house a 60 s vintage ranch . Sure it needed some updating but it was a well built house. And the improvements were all pretty much superficial and could be done while living in it. Kids today just can't see that. My Dad was offered 25% more for the house 20 years ago than we got this year . He didn't sell as at the time prices were higher , ranches were still in demand not so much now and there have been new subdivisions pop up since then.
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Aug 2002
Posts: 37,876 |
Let us not forget either how many more adults are single or divorced nowadays. Under those circumstances folks are considerably less likely to commit to the degree of "settling down" a house implies.
Also, I've been a 30 year teacher, same school, ain't too many professions offer that sort of stability and longevity any more.
Our home was cheap and the modest note will be paid off in less than 5 years, where it is ain't ever gonna be worth much more than that tho. It wasn't bought as an investment in mind but mostly as a cheap place we could have dogs and a garden and such, for that it has worked well, and may generate a modest rental income for my son. Just gonna eventually hand it over to him anyway.
Birdwatcher
"...if the gentlemen of Virginia shall send us a dozen of their sons, we would take great care in their education, instruct them in all we know, and make men of them." Canasatego 1744
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