That's what it's appraised at anyway


Okay??

This was the biggest problem. I make around 20K a month and don't even own a house at that price!! FN insane to drop $700K On a house. Just go rent. My friend rented in Mountain View for less than 2K a month and then the idiot just bought a home 3 months ago for $900K now he's making $5K a month payments!!! He makes about $20K a months too but after that, cars, living, etc... he's only putting away about 8% into long term savings. This is what scares the hell out of me, where are all these tards banking on their home as their long term investment gonna get paid when they're too old to work. ME, and YOU (20-30 year olds).

Just rent and do your part to force the needed downturn. Roofs are for rain protection not pimp pad, show off, piggy banks FFS!

 

wow...20k a month.
you must be in a millionair club.
your friend also makes 20k a month.
What business r you in? Gigolo? Even gigolo wouldn't make that much.

You talk up here like buying house a year ago: no stated income needed, no credit check required.

 

Bought mine, apr 5.375%, and got it $28,000 under the appraisal. Seller was highly motivated. Worked for Sony in San Jose. They had put down on a house north of Gilroy, and was in deep s---, if they didn't sell it quick. They only stayed here part time, it was like brand new. Price $268,000, today's price still much higher. Last time appraised was $600,000, now probably gone down $100,000 I guess, don't really know, but still can't lose.

 

Ok, whew at $20k a month and $2k/mo. rent, that's about 10% of your gross income going to "housing" or $24k / year... out the window, no return, pissed away. Including taxes paid to earn that $24k/year, you really had to earn about $45k in your tax bracket in order to take that $24k home.

Your friend, who's now paying $5k/mo. on his mortgage is at about 25% of his gross income or $60k/year. With his mortgage interest deduction, he's taking home about an extra $2k/month ($24k/year) in real income. So, the $90k he had to earn to make that $60k/year mortgage, really only cost him about $65k in real income after his mortgage interest deduction.

Meaning his cost for housing has only gone up an additional $1k/month ($12k/year) and he's actually "investing" in the best long term investment plan the Bay Area has ever seen. Granted, it's not going to continue to go up at rates seen in the recent past, it's already plateaued and even dropped in some areas, but in the 10 to 15 year time frame, his house will increase in value at a greater rate than inflation AND he will both build equity by paying down his mortgage AND significantly reduce his tax burden until he's about 15 years into his 30 year mortgage with his mortgage interest deduction.

With the simple strategies I described in my earlier post, you can dramatically shorten that 30 year note as well. Once your house is paid for, you're in the clear. No more rent. What would you do with an extra $24k/year of discretionary income? I can think of lots of things... Oh, yeah, I'm already doing it!

 

hey eric is royce, im on the same boat by the way. i want to get my own place out here in sac. i graduate in the fall and want to move out from my parents house soon but i dont want to rent i want to own. you should jus move to sac its alot cheaper good luck man. also dont forget to msg me what parts you have for sale. peace.

 

which area of Sac are you planning to live in? Just for your info, the house prices in Lincoln/Roseville/Rocklin area are pretty affordable.

 

Well I didn't want to get into a pissing match but WRONG. I'm guessing your a mortgage broker. And for the previous post of 20K a month meaning somebody is in the millionair club

First, Mortgage interests deduction of $24K a year?

Second, his house will surely not fetch $900K now or in the next 5 years. Houses are over inflated due to people selling on above statements. Ohh it's a great investment...

I think unless you are planning on staying in a place for 10+ years to life with a REAL (fixed rate, 10-20% down) mortgage than rent and take your additional investment cash into other markets. real estate is now for retards, ten years ago fine but when everybody is and can do it.... Usually a bad thing.

http://www.youtube.com/watch?v=kUldGc06S3U

For home buyer enjoyment

 

I was thinking that all the folks who have dumped 40-60K into a 30K car are the milionairs here

20K a month isn't top of the food chain. takes home roughly 8-9 after taxes, a decent 401K offering, health care, etc... drop a 5K a month mortgage, 2x 1K a month car loans, food, oh wait I'm out of money allready. This is the point i'm trying to make.

 

You know why I said you are full of ****. Look at all the numbers you gave us.
You make 20K a month but only take home 8-9? You are full of ****.
Here's why:
You make 20K for a single person. Let's say you pay 500 bucks (very unlikely for a single) for health insurance , 2k for 401k(10 % which is very unlikely). Guess what buddy, you still end up around 17.5K before tax. Now look at the tax bracket, you pay max 33% for your bracket (http://www.savewealth.com/taxes/rates/2006/single/), you still take home about 11.5K.

Now can you see that you are full of ****. If you made that much, you would know exactly how much you get back.
Like I said, you talk up here like buying a house a year ago. No income verification or fico score needed.

 

good analysis....very thorough...the guy is full of shiet..lol..he definitely knows nothing about finance if he's really making $20k a month, which i highly doubt it.

 

[QUOTE=sokudo9l6]there are quite a bit of foreclosures in Sacramento already. Back in June, i went to a home auction, I was suprised to see that many houses. Most of them were brand new too. But yeah...good call on the wait.. A lot of my friend's parents are in real estate and they all predict another year or so before the prices are steady again. However, it's not a bad time to start looking tho...just find one you like and hope its still there in a few months. Then LOWBALL

+1. Even the foreclosure house sale is still higher than the value of today's prices. In order to sell, the bank or loan company will need to take a loss of $50-$100K to get to current home prices.

BTW: What are the recent prices right now in Sac region? Elk Grove or Folsom area?? I know Folsom is higher $$. I might have to take a equity loan off of my S.F. apartments to get 1-2 rental homes if the price is right. Just let the renters pay for them. If you have some extra cash, now's the good time to invest into rental properties. With all the foreclosures, people are going to have to live somewhere. They need to get out of fantasy land go back to renting.

h

 

well my parents just bought a house here in lincoln, where i live right now. it was a good deal, brand spanking new JTS house 6 bedrooms, 4 bath, 4 car garage, with a nature reserve in our backyard for only $570. JTS dropped the price $200k.

but ya im planning on looking in those areas, most likely roseville, off blue oaks or fiddyment. if not probably antelope. ya i probably wont to buy a house probably before dec of '08.

 

[QUOTE=rgtopz]the prices in Elk grove are about $200 - $210 per sq. ft. I'm not too familiar with the prices in Folsom because i don't borther looking at things i know i can't afford. There are also a **** load of houses for sell in the Laguna West area (very close to Elk Grove). You won't have any problems finding a house there because any street you turn into you're going to see at least one house for sale. Hope that helps.

 

wow...how many sq. ft.? That's a really good deal! But then again, the prices around that area is the cheapest in greater Sacramento. I thought about moving out to Roseville/Lincoln but the long commute to downtown everyday kind of drove me away.

 

You cought my bluff I am full of sheat sorry gang I only make 200 a month. only an idiot would not max out a 401K plan (At ~200K a year this would be 10%) , than max IRAs, If you have children max ACT527 plan, have a rainy day fund of at least 6 months financial requirements.

I'm not going to argue on a forum about what my income looks like it but Please OP don't listen to the hype of housing as an investment from this tard. There has been plenty of money made in that market for many years but the next 5 is not the time to do it in CA. And to anybody else reading along if you can't meet the previous steps above and your looking at a half million dollar home take a look at any retirement calculator on the web and realize how much you need to invest to have a healthy retirement before the age of 55 (healthy as in raking in 5-10K a month). Keep in mind SS is probably not gonna kick in for you EVER unless your allready in your late 40s now. There's a reason why mortgage companies shating bricks and laying off, contractors are bankrupting and selling their F350s, and I have interviewed almost every resume I have recieved from the NoCAL, PHX, MSP and LSV area are coming from real estate sector

I'm reply to these posts on the forum purely because I have witnessed first hand what happens when you invest poorly, through family members who did not have the opportunity to enjoy a real retirement because they owned a lifestyle out of their range (big house, big car, BIG bills). When my uncle passed he told me that he wishes he'd retired and traveled the world. We sold his house after he died and spent the entire profit on family travel.

 

Don't forget state tax.... 33% federal, then 10%(?) state tax, and not to mention the social security "TAX".

 

i think theres about 3700sq? ya, it is cheaper out here, but the price of the houses havent gone down as much as compared to roseville. i understand the commute, cuz i do it haha. ya i jus got a job of stockton blvd in downtown. it takes me about 45 min w/o traffic, 1 hr wit traffic.

 

Okay, if you believe this, you're buying in to the doom and gloom I posted about.

Buying a home is one of the smartest investments anyone can make, any time. sure sales are flatening and in some areas, declining. This is an opportunity for people to buy for the long term. The time of "flipping" real estate is dead for now. Thats why I stated the real buyers are still out there because they are looking for 1) a place to call home 2) a long term investment. Over the last 5 years it was, 1) short term investment 2) short term home. Thats a huge shift that people like yourself don't understand.

My buddy just bought a foreclosed townhome 2bd/2ba w/garage for $375,000 and put 10% down. It was bought 2 years ago for $500,000 Are you calling him a retard? 5 - 10 years from now he'll be sitting on a lot of equity.

Lots of re-sales and foreclosures out there to take advantage of and if someone is buying new construction, the sellers will most likely go to 5%-6% credit to you for closing costs, upgrades, hoa's etc.

Think about it this way, when you rent, you are paying someone else's mortgage and building their home equity. Also, a home is the only physical asset that CAN appreciate. Your car (unless you have an exotic or classic), motorcycle, boat, ATV will all slowly depreciate no matter what you do to it ie body kit, wheels, motor, wing.... on the other hand, upgrade your kitchen or add a room or custom landscaping, and you will add value to your home.


Good luck

 

nice deal your buddy cought and he was also well prepared for it putting almost 40K down. If he can also afford to invest in other areas and have a cash backup plan (home as an investment doesn't help when a job is lost) than no he made a smart move. I'm not saying that buying a home is always a bad move it's just that buying one for investment or out of your range with the thought it'll appreciate and you can move into a larger home with the equity dumped into a down payment is not going ot happen for the next five years.

 

Also, anybody who gets paid bi-weekly on a salary + commish will painfully know that monthly commish check get's slammed into a higher tax bracket. Sure you get it back at the end of the year but it impacts your monthly take home income.