how much and how long did it take you to get a house?
I was 42 but living as a gypsy in the military accounts for that! I moved every 24 to 36 months for 20 year going everywhere from Japan, Australia, San Diego, San Francisco, Riverside, Seattle, Denver ... when we ended up in Riverside near the end of my career we decided to buy.
When I bought my first home I put down 20% and the payment is very very comfortable.
When I bought my first home I put down 20% and the payment is very very comfortable.
Even though the interest aren't the best right now, I think it's the perfect time to get into a house. Just in my neighborhood in Concord, there are alot of home for sale. Since the For Sale signs are staying on longer than the sellers want, I would think that they are highly motivated to sell. If your budget is around $500-$600k, you won't have a problem finding a "decent" home. Good luck.
My wife and I are both 26. we started looking in feb and closed on our house in april. we live in Hubert NC within 5 miles of the ocean and having our boat in the water. we have a 1600 sq ft house with 1/3 acre. under 200k.
you never know what you will find until you start looking.
you never know what you will find until you start looking.
i have had my house since i was 20 years old but i looked 18 lol. My house is a little over 2000 sq ft. it has 3 bedrooms and 2 bathrooms and a garage all for 130,000 dollars and it was a brand new house thats what you get when you live in texas ha. oh yeah the apr is 5.5 good luck trying to find that low of interest these days i believe it keeps going up.
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From: Project Hollywood...PUAs UNITE
hey eric,
if you're looking for a house in the bay area, it's gonna be a doozy. Prices are gonna be at least $500K, unless it's a townhouse.....
so go from there i guess...
good luck bro!
Kit
if you're looking for a house in the bay area, it's gonna be a doozy. Prices are gonna be at least $500K, unless it's a townhouse.....
so go from there i guess...
good luck bro!
Kit
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From: Bay Area, CA
Originally Posted by 06blueZ
... but it must be different in California. No way would I be a homeowner in CA right now. I got a 1500 sqft house for under 200k here...
Last edited by mg350ZR; Sep 5, 2007 at 02:11 PM.
Originally Posted by proframer
I just bought a house in san diego a 2300 sq. ft. house for $549,000
oh yeah im 27
oh yeah im 27
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From: Monterey, California
Originally Posted by sokudo9l6
thats actually not bad for Socal. I am looking at homes in Sacramento and they're about $200 - $225 per sq. ft. here. But then again, if I get the really BIG houses, then its more like $175 per sq.ft.
People in this area that purchased a house in the past 2-3 years have lost a good $50-100K on the value on the house. Many of which got the creative loans with 0 money down. There are getting screwed right now.
I would wait another year or two. This is just the beginning of the foreclosure wave yet to come. Good time then to purchase a home.
Originally Posted by rgtopz
Good luck in the Bay Area. Loans require at least 10-20% down payment. Property Tax is a Killer. I bought my house in 2000 for $330,000 (2750 sq. ft.)
People in this area that purchased a house in the past 2-3 years have lost a good $50-100K on the value on the house. Many of which got the creative loans with 0 money down. There are getting screwed right now.
I would wait another year or two. This is just the beginning of the foreclosure wave yet to come. Good time then to purchase a home.
People in this area that purchased a house in the past 2-3 years have lost a good $50-100K on the value on the house. Many of which got the creative loans with 0 money down. There are getting screwed right now.
I would wait another year or two. This is just the beginning of the foreclosure wave yet to come. Good time then to purchase a home.
thanks guys. I'm not ready to purcahse a house yet. Maybe in a year or two. I dont want to be too far from work so somewhere around the san mateo, DC, area would be ideal. Of course i want to have a house in SF since i'm living there right now but the prices are too high for me to afford. Need to look at places that is cheaper.
Thanks for the insight fellas. I definitly will start looking and doing more homework. Another idea in my mind is getting one of my good friends to purcahse a house with. Then after the house is paid for we can sell it or rent it out for some extra cash and continue to purchase more houses and build up a collection =)
Thanks for the insight fellas. I definitly will start looking and doing more homework. Another idea in my mind is getting one of my good friends to purcahse a house with. Then after the house is paid for we can sell it or rent it out for some extra cash and continue to purchase more houses and build up a collection =)
damn... 200k for a house.... ~sigh only wish that was true in the bay area...
couple tips on house buying.
If this is going to be your primary resident and you plan on living in it for a while, anytime is a good time to buy. The housing market will always fluctuate. Look at it as a long term investment that you get to live in and enjoy. Just looking at the previous trend as well as current trend. Yes, people who bought within the past couple of year lost equity in the house. But if they live there for the next 5-10 years, I'm sure they will recover the equity if not surpass on the value of the house. Real estate in the Bay area have always rewarded the long term buyer.
Just make sure you look for a mortgage that you can afford. I would stay away from any "creative" financing. If you are planning on buying in couple years, it doesn't hurt to start looking around now so you get an idea of what type of house you really like. I must have looked at ~25 or so houses and about a year before I got the one I'm living in now. It also help to get an agent once you're settle down in an area that you want to live in.
Last advice, start saving if you haven't already. Having a nice down payment will help with the monthly mortgage payment not to mention help drive down the rates. Oh one more thing, it might be a good time to check your credit scores if you don't already have good credit. You have couple of years to pay off the debits if you have any. Scores in the high 700/800 will get you better rates.
couple tips on house buying.
If this is going to be your primary resident and you plan on living in it for a while, anytime is a good time to buy. The housing market will always fluctuate. Look at it as a long term investment that you get to live in and enjoy. Just looking at the previous trend as well as current trend. Yes, people who bought within the past couple of year lost equity in the house. But if they live there for the next 5-10 years, I'm sure they will recover the equity if not surpass on the value of the house. Real estate in the Bay area have always rewarded the long term buyer.
Just make sure you look for a mortgage that you can afford. I would stay away from any "creative" financing. If you are planning on buying in couple years, it doesn't hurt to start looking around now so you get an idea of what type of house you really like. I must have looked at ~25 or so houses and about a year before I got the one I'm living in now. It also help to get an agent once you're settle down in an area that you want to live in.
Last advice, start saving if you haven't already. Having a nice down payment will help with the monthly mortgage payment not to mention help drive down the rates. Oh one more thing, it might be a good time to check your credit scores if you don't already have good credit. You have couple of years to pay off the debits if you have any. Scores in the high 700/800 will get you better rates.
Last edited by whatever; Sep 5, 2007 at 10:25 PM.
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From: Project Hollywood...PUAs UNITE
hey eric...the whole getting a house with a friend is tough. in the beginning, you might be cool, but things can turn sour quick....especially when it comes to money. creative ideas turning bad....you know
not trying to scare you off that idea, but just be weary of it
not trying to scare you off that idea, but just be weary of it
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From: Bay Area
CEO is right. I've seen more friendships broken up because of money.
If you plan to live in it for awhile, ie. 5 to 10 years, pretty much anytime is a good time to buy and the sooner the better if for no other reason then the tax savings, equity and credit. Renting is for suckers.
I bought my first house when I was 27. Best investment I ever made.
Start saving every freakin' penny now. Live like a freakin' hermit until you buy your house. If you walk by a vending machine and feel like getting a Coke, don't. Put that .50 or .75 into your "house" savings account. You'll be amazed how quickly all that spare change adds up.
Buy as much and as big as you can "comfortably" afford. No crazy financing at 1% + neg. amort. or anything crazy. Get a standard 30 year note with a fixed interest rate. You can always refinance if rates drop later, but if you get an adjustable and rates go up, you can still refinance, but you'll be stuck at a higher rate.
You can still get into the low 6% range now with decent credit, low debt to income ratio, a good stable job history and a reasonably priced house.
A 30 year loan where you have the OPTION to make double payments is better than a 15 year loan where you're REQUIRED to make "double" payments. Your interest rate won't be quite as good on the 30 year loan, but if you run into financial trouble, you can go back down to the "minimum" payment.
Pay half your mortgage twice a month and you'll shave 10 years off your 30 year note. Make an extra payment every year and you'll shave another 5 years off your 30 year note.
Once you calculate your tax deduction on your mortgage interest on a $400k house at 6.5% your take home pay can go up as much or higher than $1000 / month.
Make sure you have enough to cover home maintenance and repairs. The 25 year "guarantee" on the 6 year old roof on my first house needed replaced the first year I owned it and the company that "guaranteed" the roof had gone out of business about 3 years earlier... Gee, I wonder why? I try to make a major improvement to my house every year. Although I skipped a few during the dot.bomb to conserve cash in the event I was out of work.
Anyway, buy early and buy often. Even if you can only afford a condo or town house now, you're better off starting there than pining over a house where you can't get financing and you'll get the tax deduction and start building equity that you can use to finance the next buy. If you're really good, after a few years, you can rent that first one out, let someone else pay the mortgage (which is all a renter is doing - paying someone else's mortgage and building equity for the landlord - Thank you!) and use the equity to finance the down payment on your next new house!
I have friends who have used this method to buy several houses. One currently owns 5 houses and another is up to 3 houses. You need to be pretty good with managing your money, but these guys will be retired if they choose and living very comfortably off their rental income by the time they're in their 40's.
Good luck!
If you plan to live in it for awhile, ie. 5 to 10 years, pretty much anytime is a good time to buy and the sooner the better if for no other reason then the tax savings, equity and credit. Renting is for suckers.
I bought my first house when I was 27. Best investment I ever made.
Start saving every freakin' penny now. Live like a freakin' hermit until you buy your house. If you walk by a vending machine and feel like getting a Coke, don't. Put that .50 or .75 into your "house" savings account. You'll be amazed how quickly all that spare change adds up.
Buy as much and as big as you can "comfortably" afford. No crazy financing at 1% + neg. amort. or anything crazy. Get a standard 30 year note with a fixed interest rate. You can always refinance if rates drop later, but if you get an adjustable and rates go up, you can still refinance, but you'll be stuck at a higher rate.
You can still get into the low 6% range now with decent credit, low debt to income ratio, a good stable job history and a reasonably priced house.
A 30 year loan where you have the OPTION to make double payments is better than a 15 year loan where you're REQUIRED to make "double" payments. Your interest rate won't be quite as good on the 30 year loan, but if you run into financial trouble, you can go back down to the "minimum" payment.
Pay half your mortgage twice a month and you'll shave 10 years off your 30 year note. Make an extra payment every year and you'll shave another 5 years off your 30 year note.
Once you calculate your tax deduction on your mortgage interest on a $400k house at 6.5% your take home pay can go up as much or higher than $1000 / month.
Make sure you have enough to cover home maintenance and repairs. The 25 year "guarantee" on the 6 year old roof on my first house needed replaced the first year I owned it and the company that "guaranteed" the roof had gone out of business about 3 years earlier... Gee, I wonder why? I try to make a major improvement to my house every year. Although I skipped a few during the dot.bomb to conserve cash in the event I was out of work.
Anyway, buy early and buy often. Even if you can only afford a condo or town house now, you're better off starting there than pining over a house where you can't get financing and you'll get the tax deduction and start building equity that you can use to finance the next buy. If you're really good, after a few years, you can rent that first one out, let someone else pay the mortgage (which is all a renter is doing - paying someone else's mortgage and building equity for the landlord - Thank you!) and use the equity to finance the down payment on your next new house!
I have friends who have used this method to buy several houses. One currently owns 5 houses and another is up to 3 houses. You need to be pretty good with managing your money, but these guys will be retired if they choose and living very comfortably off their rental income by the time they're in their 40's.
Good luck!
Last edited by lww; Sep 6, 2007 at 09:12 AM.
What you have to keep in mind right now is the home/mortgage industry is cyclical....
My parents bought their house in 1978 for $78,000 with 18% interest. In 1995 it appraised for $450,000 The house is now worth $750,000
When I started in this industry with Freddie Mac in 2001, I was locking in loans at around 7.50%... When I started originating in 2002 to July 2007, I was anywhere from 3.875% to 6.875%. 1st week of August, I was in the 7.25%+ range. Today, I am in the 6.75%+
The media is so doom and gloom...yes, some people are getting screwed but its not a huge % of the overall industry. The media makes it seem like EVERYONE is screwed which scares off buyers and its evident in this thread. Home values go up and down...you can gain 100K in 1 year and then lose 50K in 3 months but you're still up! Or maybe you bought 0 down and you lost 50K in equity so you're negative.... Well, stick it out for the next couple of years and you can be possibly gain equity and then sell.
The Bay Area is always in demand for housing. Builders/developers are not going to stop just because rates are high. People will buy homes/condos because they are starting a family, or they're relocating or if you're like me, for the tax right off. A developer just broke ground right next to my building and across the street is another high rise that just started selling. Sales might be slow now but it will pick up.... this is the part of the year where it slows down anyway....
Housing is just like any other financial market. peaks and valleys. ups and downs. over supply, low demand. If anything this current market has shaken out all the bad brokers and buyers who thought they could out-smart the market. Now you have to be the real deal to buy. No more "consultants" who state income at $20K monthly and really make $7500 and want 100% financing for $700,000
My advice is to keep your eyes open for opportunity if you want to buy. Yes the rates are higher, but the prices are falling. The rates look like they are softening a bit and the Fed will probably have to make a move. The Presidential race is upon us and this will definitely be a hot topic... if there is a war or terrorism or a katrina-esque disaster the rates would soften again, a long with our market. I'm not hoping for these things but it will definitely impact the housing market again where the rates will be lower and the prices will balance and then move towards the upside.
Bottom line, its one big circle jerk....
My parents bought their house in 1978 for $78,000 with 18% interest. In 1995 it appraised for $450,000 The house is now worth $750,000
When I started in this industry with Freddie Mac in 2001, I was locking in loans at around 7.50%... When I started originating in 2002 to July 2007, I was anywhere from 3.875% to 6.875%. 1st week of August, I was in the 7.25%+ range. Today, I am in the 6.75%+
The media is so doom and gloom...yes, some people are getting screwed but its not a huge % of the overall industry. The media makes it seem like EVERYONE is screwed which scares off buyers and its evident in this thread. Home values go up and down...you can gain 100K in 1 year and then lose 50K in 3 months but you're still up! Or maybe you bought 0 down and you lost 50K in equity so you're negative.... Well, stick it out for the next couple of years and you can be possibly gain equity and then sell.
The Bay Area is always in demand for housing. Builders/developers are not going to stop just because rates are high. People will buy homes/condos because they are starting a family, or they're relocating or if you're like me, for the tax right off. A developer just broke ground right next to my building and across the street is another high rise that just started selling. Sales might be slow now but it will pick up.... this is the part of the year where it slows down anyway....
Housing is just like any other financial market. peaks and valleys. ups and downs. over supply, low demand. If anything this current market has shaken out all the bad brokers and buyers who thought they could out-smart the market. Now you have to be the real deal to buy. No more "consultants" who state income at $20K monthly and really make $7500 and want 100% financing for $700,000
My advice is to keep your eyes open for opportunity if you want to buy. Yes the rates are higher, but the prices are falling. The rates look like they are softening a bit and the Fed will probably have to make a move. The Presidential race is upon us and this will definitely be a hot topic... if there is a war or terrorism or a katrina-esque disaster the rates would soften again, a long with our market. I'm not hoping for these things but it will definitely impact the housing market again where the rates will be lower and the prices will balance and then move towards the upside.
Bottom line, its one big circle jerk....