U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Connecticut
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-23-2010, 08:14 PM
 
Location: Fairfield, CT
5,548 posts, read 8,235,995 times
Reputation: 5817

Advertisements

Quote:
Originally Posted by renovating View Post
You keep posting about questionable debt and terms....have you driven around a lot of our state?

I am so amazed in my own town about the young stay at home moms living on one income with no struggles in a gorgeous home. I am not so sure about how many couples are taking on so much debt??? And, they seem to be weathering these awful economic times ok, too.

You buy your home to be your home. And forget about whether or not it's a money maker or not. And my final thought on this is that the real estate market is cyclical...it will go up again.
I've heard a lot of horror stories about people taking on high amounts of debt, on questionable terms (adjustable rates, negative amortization for the first 3 years, etc.) in order to buy a house they couldn't really afford.

I know these aren't all the people. What I say pertains to people who have bought what they couldn't afford. If they can afford it truly, they can do whatever they want (though even then, a huge house might not be the smartest financial decision).

Keep in mind that you can't always tell from external appearances how well people are really doing. I'm glad to hear you see people doing well. A good number of people are doing well, but it doesn't take a high percentage of people in trouble to collapse our system.
Reply With Quote Quick reply to this message

 
Old 05-23-2010, 08:28 PM
 
Location: Connecticut
24,775 posts, read 40,394,039 times
Reputation: 7048
Quote:
Originally Posted by Yankeerose00 View Post
I agree with that. I think the answer is somewhere in the middle and it depends on the buyer. I don't think a single person or newlyweds need a 5 bedroom house, especially if they can barely afford it. However, I cringe when I watch these HGTV shows like House Hunters or My First House and you see young couples buying a 1 bedroom condo with the notion that they will just sell it in a couple of years when they are ready to have kids. Up until the 1990's, I always heard of the 5 year rule, as in, you should plan on staying in a house 5 years before selling otherwise run the risk of losing money. Then for a short time, people could buy and sell within a year or two and turn a profit. The past 5 years have put us in such a bind that now financial experts are saying to get a house you will be in 5-8 years, even 10 years.
I read this message board occasionally that is just for the housing market. It's really sad how many people are stuck in their house because it's depreciated so much. There are many who are renting their house at a loss each month because they couldn't sell it and their job required them to move. I can't imagine having to rent and be a landlord and put $200-300 a month into a house and know that I'm going to have to do this for the next 10 years or longer.




Not a few years. We're looking at 10 years. Where we lived in Virginia is nothing like it is here. I'm amazed at how little new construction there is in CT. We bought in an area that was far from the city because at the time, that was all we could afford, There are half finished subdivisions all over our area. Directly across the street from our house they started a subdivison meant to have 25 homes. They cleared 25 lots and 4 years later, there are only 5 homes built. It's a huge mudhole. Only 3 of the 5 homes are sold. There are tons of foreclosures and short sales in that area. Believe me, I would have been delusional to think we would have been able to break even, let alone make a profit had we stayed another few years. There is such a thing as throwing good money after bad. Sometimes you have to cut your loses and move on.

It's true that eventually a person who has lost money on their home will make that money back. Eventually. But the question is how long? Anyone who is under water 30-40k or more and thinks they are going to make that back in a couple of years better think again. We knew we wanted to move back up north. Had we waited until we could break even, we could have been waiting 10 years or more and we aren't exactly getting younger. My husband got a job opportunity and we weighted it out and decided to cut and run. It sucks but I have no regrets. We sold our house a year ago and now it's worth even less than what we sold it for according to zillow. The number of foreclosures in that area are up 15%. Real estate is local and CT has been very lucky in this regard. There are parts of the US where homes are worth 50% of what they were in 2005! Do you know how long it's going to take to rebound from that? That area has a long way to go before it hits the bottom.

Another example, my aunt bought her house in Arizona in 2005 for 300k. Today, it's worth maybe 150k though there are hundred of homes just like it for sale in her area. Realistically if she went to sell it, to make it stand out, she'd have to price it at 130k or less. When is that house going to be worth 300k again? Nobody knows exactly, but just a little bit of economic sense will tell you that it's not going to be in 3-5 years.

Again, I would never advocate a person selling at a loss unless it's really what is best for their situation. For us it was. I could not live in the south any longer. I gave 20 years of my life living someplace I wasn't happy. I could imagine another year of waking up and seeing a giant mudhole across the street with big ugly for sale signs from the un-finished subdivision. I was done. Buying was the mistake. Not selling. At least for us.
I see that there were circumstances involved that were taken into consideration that I was not aware of. I am talking mainly about here in Connecticut and not other parts of the country where things really went wild. I am also not talking about leaving a home for job relocation purposes either. I am talking about someone who buys a home and then panics when the price drops and sells which is what you are giving the impression in your posts. Sorry about that, Jay
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 08:33 AM
 
262 posts, read 520,454 times
Reputation: 127
I agree that people shouldn't buy one bedroom homes, they are just too difficult to sell and don't have enough flexibility for life changes like having children. On the other hand, I hate the "we need our first home to be big and brand new" attitude that seems so prevalent in our society. There are a lot of 1,000 sq foot capes and ranches out there that would be perfectly good starter homes that people turn their noses up at because they want their first home to be some huge colonial instead. A three bedroom ranch is fine for a family. You don't need a formal dining room, you don't need a master suite and you don't need a home office unless you work from home. Somewhere in the past 50 years our expectations of what our first house should be inflated to unrealistic proportions and when banks said "yes" to almost any amount people were happy to buy that dream home instead of the house that was more realistic to their budget. It was really hard for people to say no to that and buy a house that meets their needs but not their wants.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 08:51 AM
 
Location: The brown house on the cul de sac
2,081 posts, read 4,137,612 times
Reputation: 9305
[quote=Appias;14311252] A three bedroom ranch is fine for a family. You don't need a formal dining room, you don't need a master suite and you don't need a home office unless you work from home. quote]



No dining room? Well then where would you have dinner guests, Thanksgiving or any holiday dinner?
I love my formal dining room...matter of fact it is one of my favorite rooms because for the most part, it remains clean!

3 bedroom ranch is fine for a family? Hmm, well I think that depends on the family and its' size. Can't imagine having all my kids share 2 bedrooms.

We have an office...it is now a combined playroom...but I love having my desk and files for family paperwork and bills and school supplies all in one place. It makes organization a lot easier for me. I don't work from home but I do NEED my office.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 09:12 AM
 
262 posts, read 520,454 times
Reputation: 127
[quote=renovating;14311514]
Quote:
Originally Posted by Appias View Post
A three bedroom ranch is fine for a family. You don't need a formal dining room, you don't need a master suite and you don't need a home office unless you work from home. quote]



No dining room? Well then where would you have dinner guests, Thanksgiving or any holiday dinner?
I love my formal dining room...matter of fact it is one of my favorite rooms because for the most part, it remains clean!

3 bedroom ranch is fine for a family? Hmm, well I think that depends on the family and its' size. Can't imagine having all my kids share 2 bedrooms.

We have an office...it is now a combined playroom...but I love having my desk and files for family paperwork and bills and school supplies all in one place. It makes organization a lot easier for me. I don't work from home but I do NEED my office.
You might love your formal dining room, but would you really tell people buying their first home that they need it? If so then you are contributing to the bigger, more mentality. You work your way up to the house with a formal dining room. You don't necessarily start there. The same is true of the home office. You don't seem to want to differentiate between wants and needs. There are things that are very nice to have but you don't need them in your first house.
To answer your questions, houses without formal dining rooms have eat in kitchens. If it is a starter house you will probably do big holidays dinners at the grandparent's houses. And yes, kids can share rooms. Unless you have more than 4 kids you can manage in a 3 bedroom house. Most families these days are not that large so while you might have a family with more than 4 kid most families these days are smaller than that.

Last edited by Appias; 05-24-2010 at 09:41 AM.. Reason: fixed typo
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 12:02 PM
 
Location: The brown house on the cul de sac
2,081 posts, read 4,137,612 times
Reputation: 9305
[quote=Appias;14311822]
Quote:
Originally Posted by renovating View Post

You don't seem to want to differentiate between wants and needs. There are things that are very nice to have but you don't need them in your first house.
Who am I to tell someone what they "want" vs "need" in any home they buy? Quite frankly, I needed a dining room in my first home and an even bigger one in my second home. And, I would never buy a home without a dining room. I think there was a thread about that on here....

And honestly some people could say that electricity and running water are a "want"
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 12:38 PM
 
Location: Connecticut
24,775 posts, read 40,394,039 times
Reputation: 7048
[quote=renovating;14314264]
Quote:
Originally Posted by Appias View Post

Who am I to tell someone what they "want" vs "need" in any home they buy? Quite frankly, I needed a dining room in my first home and an even bigger one in my second home. And, I would never buy a home without a dining room. I think there was a thread about that on here....

And honestly some people could say that electricity and running water are a "want"
Very true but most people really do NOT need a formal dining room. And doubling up kids in a bedroom is not really that bad either for a first home. People do have big expectations these days but then again, why not? Jay
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 12:58 PM
 
262 posts, read 520,454 times
Reputation: 127
I'm so glad these issues are coming up because I think they strike at the heart of the thread topic which is foreclosures.
In the past decade people have been confusing need with want and so when banks said "yes you can" they bought the house they wanted not the one the needed. Look at the Ikea houses(if you've ever been in an Ikea you'll know what I mean). Now granted they have optimized layout, but still they are comfortable family homes and are all under 1,000 square feet. What was really important to you as a kid? What were your needs? Stability, safety, food in your belly, a roof over your head and a feeling of being loved. What are our needs as adults?Those same things. A dining room is not in that list. I think that owning a home is a wonderful thing and people who can easily afford to buy the house they want as their first house are in a fortunate and enviable position, but we shouldn't hold that up as the norm because it sets unrealistic expectations. We are seeing some of the consequences of those expectations play out in our current market where people who shouldn't have bought at all did and other people bought more than they could afford because they bought the home they wanted instead of the one they needed (and could actually afford). Lastly, I think that delayed gratification is a part of life. We should be teaching young people that you can't get what you want immediately. You have to wait and work hard to get it. Why do we tell children they have to do wait and work hard in school if they want that toy, but we tell people fresh out of college that not only do they need to buy now, but it needs to be their dream home? I guess if you can't see the hypocrisy in that then we'll just have to agree to disagree.
Reply With Quote Quick reply to this message
 
Old 05-25-2010, 11:44 AM
 
5,037 posts, read 4,210,621 times
Reputation: 2348
Home prices fell again in March and if you look a bit further into it, things still arent too peachy and if tactics and policies dont change, we could be heading for more problems.

March home sale prices fell, even with low mortgage rates and the tax credit program that just ended. That is not good news. That points toward a system that is weakening further.

It looks like atleast in the first quarter, most mortgage loans have been handled by the government. We have FHA basically taking over where Fannie and Freddie left off. All this is going to catch up to them and some are predicting that FHA will need a bailout in a year or so. Some dont say that will happen, but as you recall, many including DC politicians ignored and fought off warnings about Fannie/Freddie back in 2004. And look where we are today?
Reply With Quote Quick reply to this message
 
Old 05-25-2010, 05:17 PM
 
Location: The brown house on the cul de sac
2,081 posts, read 4,137,612 times
Reputation: 9305
Quote:
Originally Posted by BucsLose View Post
Home prices fell again in March and if you look a bit further into it, things still arent too peachy and if tactics and policies dont change, we could be heading for more problems.

March home sale prices fell, even with low mortgage rates and the tax credit program that just ended. That is not good news.
Are you talking nationwide or in CT? Can you provide a link for me?

In Fairfield County things are looking up:

http://rismedia.com/2010-03-10/regio...-january-2010/
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Connecticut
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top