Members RSBro Posted February 4, 2009 Members Share Posted February 4, 2009 Well I've pretty much made up my mind that I'm going to be leaving this POS place after April 15th. I could be a dick about it and just walk now, but in the sense that I've been here 3.5 years and my prospective employer will give them a call, it's not the best way to go about it. Anyway, I'm probably going to be working in the Houston area, but I despise living actually "in" Houston, so it'll be Spring/The Woodlands for me, more than likely. I'm not seeing any marriage in my forecast for the foreseeable future, so leasing isn't that big of a deal. I'd like to get a house, as I can't go back to apt/condo living after being in a house the last 2-ish years. However leasing into the 4-figures has me hesitant about technically "wasting" that much every month. I don't mind as my rent is dirt cheap right now, but I donno about actually getting a decent place that'll always re-sellable or able to lease out in the future. I just REALLY don't want to mess with the hassle or BS of prop taxes, insurance, homeowner's dues, etc.. at this point in my life, especially on just one income. But if the other shoe is about to drop, and IMO I think it is, it may be worth waiting out another 5-6 months and really snagging a nice setup for teh cheap. Link to comment Share on other sites More sharing options...
CMS Author Craig Vecchione Posted February 4, 2009 CMS Author Share Posted February 4, 2009 I had a neighbor who moved from, and back to, The Woodlands. I'd wait, if you're looking for the best bargains and know your income is secure. This {censored}er is still crashing and burning. Wait until it starts to come back up...so you 'lose' a tiny bit, but I think this mess has more drop left in it. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 4, 2009 Author Members Share Posted February 4, 2009 I had a neighbor who moved from, and back to, The Woodlands. I'd wait, if you're looking for the best bargains and know your income is secure. This {censored}er is still crashing and burning. Wait until it starts to come back up...so you 'lose' a tiny bit, but I think this mess has more drop left in it. I wish to God I was where I'll be in 10-15 years on that income right now, in this same location. The deals on some of these homes that were mid 7-figures just a year or two ago are downright insanely awesome. Link to comment Share on other sites More sharing options...
Members L-1329 Posted February 4, 2009 Members Share Posted February 4, 2009 Your thought process sounds exactly what mine's been for a long time. I've always put off buying because of job/location issues, and the thought that I'd never be in one place long enough to make buying feasible or smart. So, I've rented for my entire adult life. Renting is not 'wasting' money, it's saving money, and in situations like your's its been a neccessity. Renting meant I haven't lost anything in the worst real estate market in our lifetimes. The other side of the coin is that if you ever are going to want to buy, then you need to just buy. Find the best deal for your situation and enjoy it. I just closed on my first home last week, a new construction that is going to be a dream home. I still have job issues, and other considerations, but I'm just ready to buy and start enjoying my OWN home for once. It sounds to me like you're at that point too. Interest rates are super low, many existing homes are available, builders are looking for new deals and are willing to deal, there is just not going to be a better time. Even if values drop a little more yet, you're still going to be in a great position in a few years if you buy smart now. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 4, 2009 Author Members Share Posted February 4, 2009 Your thought process sounds exactly what mine's been for a long time. I've always put off buying because of job/location issues, and the thought that I'd never be in one place long enough to make buying feasible or smart. So, I've rented for my entire adult life. Renting is not 'wasting' money, it's saving money, and in situations like your's its been a neccessity. Renting meant I haven't lost anything in the worst real estate market in our lifetimes. The other side of the coin is that if you ever are going to want to buy, then you need to just buy. Find the best deal for your situation and enjoy it. I just closed on my first home last week, a new construction that is going to be a dream home. I still have job issues, and other considerations, but I'm just ready to buy and start enjoying my OWN home for once. It sounds to me like you're at that point too. Interest rates are super low, many existing homes are available, builders are looking for new deals and are willing to deal, there is just not going to be a better time. Even if values drop a little more yet, you're still going to be in a great position in a few years if you buy smart now. Yeah it's not flat out "wasting", as you save the costs and hassle of doing it yourself, and being 100% responsible, but that's why I put it in quotes, for sure. But I think you're right. If I can secure the pay scale I"m looking for, which shouldn't be terribly hard, I may just buckle up and buy. I'm still a few months away meaning it could drop out more, but people always move more during the summer it seems after school is over so around May/June, I probably will start gettin' on the heavy end of all this. Plus, my mortgage could conceivably be less even with the extra costs factored in than a leased home with those costs added in. Link to comment Share on other sites More sharing options...
Members L-1329 Posted February 4, 2009 Members Share Posted February 4, 2009 Plus, my mortgage could conceivably be less even with the extra costs factored in than a leased home with those costs added in. I've always found that there was a pretty clear dividing line between lease rates for apartments vs. homes, and how they compare to mortgage rates. Leasing a home puts you way closer to the monthly costs of what your own mortgage rate would be, and makes it harder to save. A nice apartment would be less obviously, and much simpler to save and deal with. In my case, I'm going to be about a thousand bucks a month higher with everything included than I am here in this apartment, but probably about the same rate if I was renting an equivelent house. For me it makes much more sense to buy a house, or rent an apartment. Renting a house is zero gain. But beyond all this, just the thought that this spring I'll move into my own place makes any amount of money feel well spent. It's about having a place, or having a home. I can't wait to have a home:cool: Link to comment Share on other sites More sharing options...
Members Ender_rpm Posted February 4, 2009 Members Share Posted February 4, 2009 I'm buying this spring. The market here isn't as bad as most places, so even if it takes another small dip, it's not going to be a major bummer. Plus, as DINKs currently, we're getting hammerred with taxes this year We figure we're stable for 2-3 years with our jobs, the market is good, I have a VA loan eligibility, and there's a ton of tax credits out there for first timers, now is a good time. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 4, 2009 Author Members Share Posted February 4, 2009 I'm buying this spring. The market here isn't as bad as most places, so even if it takes another small dip, it's not going to be a major bummer. Plus, as DINKs currently, we're getting hammerred with taxes this year We figure we're stable for 2-3 years with our jobs, the market is good, I have a VA loan eligibility, and there's a ton of tax credits out there for first timers, now is a good time. Just FMI, is your "Beltway", "Beltway 8", by any chance? I know sorta who's around these parts, but just making sure with you! Link to comment Share on other sites More sharing options...
Members bnyswonger Posted February 4, 2009 Members Share Posted February 4, 2009 I'd jump in now and start seeing what's available. I bet within a month or two, congress will make the current $7500 tax credit (which is really a recoupable no-interest loan) a no-payback simple and very nice tax credit. I'd be surprised if that doesn't a relatively quick effect prices and interest rates...but what the hell do I know. Trying to time any market is a tricky thing - if what you want is out there and affordable now...why wait? You also might take some pride in helping get the economy moving in the right direction. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 4, 2009 Author Members Share Posted February 4, 2009 I'd jump in now and start seeing what's available. I bet within a month or two, congress will make the current $7500 tax credit (which is really a recoupable no-interest loan) a no-payback simple and very nice tax credit. I'd be surprised if that doesn't a relatively quick effect prices and interest rates...but what the hell do I know. Trying to time any market is a tricky thing - if what you want is out there and affordable now...why wait? You also might take some pride in helping get the economy moving in the right direction. I know about what I want to spend, I just need to secure a new job first... hehehehe. The market here isn't as bad as other places simply b/c the jobs haven't dried up. But compared to what they normally go for, it's a great time to buy. Link to comment Share on other sites More sharing options...
Members Ender_rpm Posted February 4, 2009 Members Share Posted February 4, 2009 Just FMI, is your "Beltway", "Beltway 8", by any chance? I know sorta who's around these parts, but just making sure with you! Nope, DC, THE Beltway, home of Beltway Bandits, Beltway Insiders, and Traffic from hell re: the tax credit- last I heard, the Stim Pack Congress is considering has AT LEAST made the credit just a one shot, no payback deal for 1st timers, while the Reps wnt to increase it to 15K for everyone. Either way, its new kitchen appliances next tax season Link to comment Share on other sites More sharing options...
Members Johnny_Crab Posted February 5, 2009 Members Share Posted February 5, 2009 I'd wait, if you're looking for the best bargains and know your income is secure. This {censored}er is still crashing and burning. Wait until it starts to come back up...so you 'lose' a tiny bit, but I think this mess has more drop left in it.+1 Have to agree. Oh, and yet another basic technical analysis principle is that an "M" formation (otherwise known as a "double top") usually retraces the at least the entire run that produced the left-side of the "M". We can argue over whether that's 200 or 450 - either is really, really bad. above from the last January post at: http://market-ticker.org/ It's 4th down and 90 yards to go and DC ain't punting, they're goin' for it. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 5, 2009 Author Members Share Posted February 5, 2009 Well I did some looking last night, talked to my gf who is actually from there and is moving there also (hopefully) this summer, and I think I'm just going to buckle up and try to buy. I don't know that I can go back to apt living, and for a 2/2 apt in the Woodlands, it's going to easily cost more than buying a house, and possibly more than even LEASING one, which is crazy, but true. I like the 3/2 layout, but may have to go with 2/2 for now, and just depends on what I can afford. Link to comment Share on other sites More sharing options...
Members txbass68 Posted February 5, 2009 Members Share Posted February 5, 2009 Dude get the 3/2. Resale on a 2/2 is not very good. Right now builders are wheelin and dealin to boost their sales. If you are looking new, push for as many free up grades and appliances that you can get. I just bought a new house in Mansfield, TX. about 4 months ago. It is a 4/2/2 and came with a free washer and dryer, frig., dishwasher, sprinkler system, ceiling fans in all rooms, and oven. I also got the builder to pay $6000 towards my closing. I paid $152,00 for it. I got an interest rate of 5.75. They are at 5.125 now. You should seriously look into it. Well I did some looking last night, talked to my gf who is actually from there and is moving there also (hopefully) this summer, and I think I'm just going to buckle up and try to buy. I don't know that I can go back to apt living, and for a 2/2 apt in the Woodlands, it's going to easily cost more than buying a house, and possibly more than even LEASING one, which is crazy, but true. I like the 3/2 layout, but may have to go with 2/2 for now, and just depends on what I can afford. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 5, 2009 Author Members Share Posted February 5, 2009 You got a 4/2/2 in Mansfield for $152k?? Jeez man... I know I needed to move up there, and in a hurry! Link to comment Share on other sites More sharing options...
Members Picker Posted February 5, 2009 Members Share Posted February 5, 2009 Nope, DC, THE Beltway, home of Beltway Bandits, Beltway Insiders, and Traffic from hell re: the tax credit- last I heard, the Stim Pack Congress is considering has AT LEAST made the credit just a one shot, no payback deal for 1st timers, while the Reps wnt to increase it to 15K for everyone. Either way, its new kitchen appliances next tax season My sister's first band was the Beltway Bandits (in DC), but that was several years ago. Is there another band by that name? Link to comment Share on other sites More sharing options...
Members Jugghaid Posted February 5, 2009 Members Share Posted February 5, 2009 You got a 4/2/2 in Mansfield for $152k?? Jeez man... I know I needed to move up there, and in a hurry! So buy now and change jobs later. It will look better to a lender that you have been at your current job for 3.5 years anyway as opposed to 6 momths. Link to comment Share on other sites More sharing options...
Members catphish Posted February 5, 2009 Members Share Posted February 5, 2009 It's 4th down and 90 yards to go and DC ain't punting, they're goin' for it. Link to comment Share on other sites More sharing options...
Members RSBro Posted February 5, 2009 Author Members Share Posted February 5, 2009 So buy now and change jobs later. It will look better to a lender that you have been at your current job for 3.5 years anyway as opposed to 6 momths. I need to look and see what I can afford. Is there any simple calculator that you can just plug some figures in? I've seen them before I just need to Google it. The problem is, where I want to live, it'd be tough to swing until I got that new job. I get a pittance (literally 5 figures less) than what's about 30-45 miles away. Link to comment Share on other sites More sharing options...
Members Jugghaid Posted February 5, 2009 Members Share Posted February 5, 2009 I need to look and see what I can afford. Is there any simple calculator that you can just plug some figures in? I've seen them before I just need to Google it. The problem is, where I want to live, it'd be tough to swing until I got that new job. I get a pittance (literally 5 figures less) than what's about 30-45 miles away. Commute. How much do you want your mortgage to be and how much do you have for a down? figure all that out and you can get a good idea here http://www.mortgagecalculator.org/ I would go with maybe 35% of your income for a payment. Link to comment Share on other sites More sharing options...
Members scampi Posted February 5, 2009 Members Share Posted February 5, 2009 rates are still hot, up a tad from where we locked in about a month ago but still good 4.625 paying just 1/8th of a point Link to comment Share on other sites More sharing options...
Members RSBro Posted February 5, 2009 Author Members Share Posted February 5, 2009 Commute. How much do you want your mortgage to be and how much do you have for a down? figure all that out and you can get a good idea here http://www.mortgagecalculator.org/ I would go with maybe 35% of your income for a payment. I just found that now that you posted it. I figure I'm getting greedy if I look over $175k. I'd like to look between 150-175k. I can put down anywhere from 25-50, which is a good thing. My income doesn't reflect that I have that much free cash, but it's accumulated over time and from various gifts and jobs ever since I was little. I could get by with $1k a month, with mortgage, taxes and insurance altogether. Maybe 1100-1200. Link to comment Share on other sites More sharing options...
Members scampi Posted February 5, 2009 Members Share Posted February 5, 2009 I just found that now that you posted it. I figure I'm getting greedy if I look over $175k. I'd like to look between 150-175k. I can put down anywhere from 25-50, which is a good thing. My income doesn't reflect that I have that much free cash, but it's accumulated over time and from various gifts and jobs ever since I was little. I could get by with $1k a month, with mortgage, taxes and insurance altogether. Maybe 1100-1200. you can always ask the prospective lender what they're looking for in terms of front/back ratios too - I believe on the back end some might comfy up to about 40% so long as you're employed and have good credit, but in reality they would prefer that you be closer to 30% or just a bit over that - the back ratios could normally be higher, but many lenders are trying to avoid the situations that led to a collapse in the housing markets to begin with Link to comment Share on other sites More sharing options...
Members RSBro Posted February 5, 2009 Author Members Share Posted February 5, 2009 you can always ask the prospective lender what they're looking for in terms of front/back ratios too - I believe on the back end some might comfy up to about 40% so long as you're employed and have good credit, but in reality they would prefer that you be closer to 30% or just a bit over that Ok lost me there- what exactly does that mean? I seriously know nothing about this, so feel free to pile on the insults. Link to comment Share on other sites More sharing options...
Members scampi Posted February 5, 2009 Members Share Posted February 5, 2009 Ok lost me there- what exactly does that mean? I seriously know nothing about this, so feel free to pile on the insults. this might help a little bit http://homebuying.about.com/od/buyingahome/f/030508_Affordab.htm basically these are some ratios used for determining what types of loan you qualify for, and whether you can afford it based upon known quantities like monthly income there are other factors involved with scoring your loan as well (like credit, assets), but the back ratio is definitely an important one - while that link I posted above lists thresholds for fha and conventional, in reality I believe most lenders would prefer their clients are NOT pushing the boundaries of max ratios Link to comment Share on other sites More sharing options...
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