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Old 09-17-2015, 06:04 PM
 
103 posts, read 64,083 times
Reputation: 180

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Quote:
Originally Posted by pistisan View Post
If you are happy and satisfied in your current 2/2 at $1100 don't move, house ownership is not for everyone...and as you pointed out you could save thousands every month by staying there. There are many other fees besides taxes, and mortgages that you need to cover such as HOAs, higher utilities, fix/break, lawn, etc. It is really up to you, just don't stress yourself financially as it is not a pretty picture when you seat in a $450K home but can't go out for a dinner to save for the monthly mortgage payment.
This.
Make sure u have accounted for every single item mentioned in pistisan's post. Lawn alone can cost upto 800 a year if u hire someone to cut grass for you. Otherwise if u plan to cut ur own grass, make sure u have the spare post-closing capital to buy lawn mower + edger + trimmer etc.

You are doing the right thing by asking for opinions other than what your realtor is telling you. Be wary of many websites that also advocate home ownership over renting as an investment. Many of the real estate advise web site articles are simply regurgitated real estate sales pitches. There are too many imponderables in the equation here for a simplistic "home is an investment" approach.
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Old 09-17-2015, 08:46 PM
 
216 posts, read 248,994 times
Reputation: 110
Quote:
Originally Posted by FalconheadWest View Post
There you go, your criteria is putting you into that price point and it's not the agent telling you that you need to be up that high. As a Realtor, my job is to show you what you "want". As the buyer, you then need to figure out what you "need". If you don't want $450k, you should not be shown $450k... BUT, you have to be willing to compromise on what you want.

Why are you stuck on a sqft number? A number means nothing, it's the floorplan. Many 3000 sqft homes feel like 2000 sqft because they are choppy and don't flow well. Many 2000 sqft homes feel like 3000 sqft because they're a good use of space. Drop the number, and look for the number of bedrooms you need, gameroom/media, whatever, and if that's in a 2500 sqft house, so be it.

The average person moves every 5.9 years, so there is nothing wrong with you moving again in 4-5 years. People do it everyday.

Agree - it is my responsibility to tell my realtor what I want and for how much.
I mentioned few times that I do not want to be at high end of price range and the monthly payment worries me.
The alternative is keep renting for now, be flexible in terms of location and buy later when I really need a home. I should be able to find something else.

The answer I got was that it will only get worse and it is better to buy now and build equity as the home appreciates. I know she is looking out for us and wants us to buy and enjoy home now rather than waiting.

But I am not sure I want to commit to a big payment while I am still uncertain on location and income level (wife is between jobs).
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Old 09-18-2015, 05:43 AM
 
502 posts, read 614,037 times
Reputation: 906
Quote:
Originally Posted by aggierk View Post
Agree - it is my responsibility to tell my realtor what I want and for how much.
I mentioned few times that I do not want to be at high end of price range and the monthly payment worries me.
The alternative is keep renting for now, be flexible in terms of location and buy later when I really need a home. I should be able to find something else.

The answer I got was that it will only get worse and it is better to buy now and build equity as the home appreciates. I know she is looking out for us and wants us to buy and enjoy home now rather than waiting.

But I am not sure I want to commit to a big payment while I am still uncertain on location and income level (wife is between jobs).
Then don't buy it. Stop sending mixed messages to your realtor. Only you can determine what you can afford. We're a family of 5, we rented a 4 bdrm house in Coppell for 3 years for $1900/mo. Then we bought a house in Frisco 2 1/2 years ago and my monthly payment is $2700 which I can easily afford. But you have to figure out other expenses including utilities. During this time we have spent at least $15k on home improvements and repairs.
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Old 09-18-2015, 08:35 AM
 
177 posts, read 235,783 times
Reputation: 225
If you don't have kids yet, in my opinion it makes ZERO sense to buy a 3000+sq ft home. You would be dumping tons of money on taxes and utilities and upkeep alone so why not take a different approach that will maximize your financial future? An alternative would be to start with a 2000sq ft home under $300k, live in it for several years and then when you have kids and really need to 'upgrade' your space you can rent out the 1st home as an investment property. Take all that extra money you would be spending on a $450k home and save it for home 2! I would not drown my finances on a huge house right off the bat.
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Old 09-18-2015, 09:17 AM
 
769 posts, read 488,010 times
Reputation: 1786
Quote:
Originally Posted by jpushiys View Post
Otherwise if u plan to cut ur own grass, make sure u have the spare post-closing capital to buy lawn mower + edger + trimmer etc.
Are there people who buy a $450k house who don't have the cash for a lawn mower?!
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Old 09-18-2015, 09:35 AM
 
216 posts, read 248,994 times
Reputation: 110
Quote:
Originally Posted by aggieplaya View Post
If you don't have kids yet, in my opinion it makes ZERO sense to buy a 3000+sq ft home. You would be dumping tons of money on taxes and utilities and upkeep alone so why not take a different approach that will maximize your financial future? An alternative would be to start with a 2000sq ft home under $300k, live in it for several years and then when you have kids and really need to 'upgrade' your space you can rent out the 1st home as an investment property. Take all that extra money you would be spending on a $450k home and save it for home 2! I would not drown my finances on a huge house right off the bat.
Thanks for your reply. I will consider this option seriously by looking at some older homes.
If the market is too hot and we cannot find a home, I will just have to wait.
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Old 09-18-2015, 09:37 AM
 
216 posts, read 248,994 times
Reputation: 110
Quote:
Originally Posted by octo View Post
Are there people who buy a $450k house who don't have the cash for a lawn mower?!
Yes, that could be me - if I buy just based on the initial costs without knowing all other costs, this will happen.
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Old 09-18-2015, 09:42 AM
 
216 posts, read 248,994 times
Reputation: 110
Quote:
Originally Posted by VegasMan_72 View Post
Then don't buy it. Stop sending mixed messages to your realtor. Only you can determine what you can afford. We're a family of 5, we rented a 4 bdrm house in Coppell for 3 years for $1900/mo. Then we bought a house in Frisco 2 1/2 years ago and my monthly payment is $2700 which I can easily afford. But you have to figure out other expenses including utilities. During this time we have spent at least $15k on home improvements and repairs.
I take responsibility and I agree I am a confused first time buyer who does not know what he needs.
Its been only 2 weeks and I toured 2 builders with my realtor one afternoon.
Since then, I have been trying to figure out the timing and target home instead of wasting my realtor's time.
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Old 09-18-2015, 09:43 AM
 
443 posts, read 339,594 times
Reputation: 272
Quote:
Originally Posted by aggierk View Post
Yesterday I have had a friendly debate with my realtor on budget and timing.
She has been showing me homes where I am not comfortable with my monthly payment but she thinks it is worth it because the home would be 10-20% more expensive next year.

I am first time buyer so it is natural I am confused especially when I know I will not be using every room of the house.

My rent is now $1100 (2 BR, 2 bath) and a decent place to live (in here for 3 years).
Lack of storage, older appliances all are concerns but I could easily live here for another 2-3 years.
My income is likely to remain the same for next 2-3 years.

I am married but no kids so I have been looking for 3 years and decided to invest my money elsewhere and never had the downpayment.

I have using the following calculator and it tells me that I need to buy if I cannot rent same home under $1800.
http://www.nytimes.com/interactive/2...ator.html?_r=0

But I do not need same home.
As I see it my monthly payments if I buy 450k home (my realtor has been recommending these) are $going to 3400 with tax bill alone being 11000 (almost same my rent now).

So my debate with her was that if I am not using all bedrooms in home or the schools right away, why should I buy the home?

She mentioned building equity for a home that I may buy next year out of necessity (if I have a child).
But my argument was that there will always be 450k home that I can buy and by waiting I will have flexibility of location and investing all the money I save.

If I choose to live in $1100 rented apartment for 1-2 years instead of staying in nice home, does waiting for market to cool down make sense?
Even if market heats up, wouldn't the money I save (almost 2300) every month give me larger downpayment towards same or better house 1-2 years from now?

What am I missing here?
$450k house, do you make $175k-$200k a year? I assume the answer will be no as you are renting in a $1,100 2/2. If it is no, then lower that way down.
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Old 09-18-2015, 10:08 AM
 
922 posts, read 564,028 times
Reputation: 1478
Quote:
Originally Posted by aggierk View Post
I take responsibility and I agree I am a confused first time buyer who does not know what he needs.
Its been only 2 weeks and I toured 2 builders with my realtor one afternoon.
Since then, I have been trying to figure out the timing and target home instead of wasting my realtor's time.
Its not your fault you dont know. Thats like faulting a first time parent for wondering if that (insert baby sound here) is normal.

You haven't done this before. Get a realtor that knows a lot about that and deals with first time buyers often. First timers need a lot of direction and advice and there is a lot of flip flopping and going back and forth on what they do/dont want. All that should be expected by your realtor. Lots of first timers want fairies and unicorns and have to come down to earth after looking around a bit.

Your realtor works for you. They aren't doing you a favor. They work FOR you. If you are not getting the support and advice you need for goodness sake get another realtor. This isn't like buying a car you didn't want that the sales person talked you into. Its so much worse. And this is the easy fun part. Once you pick the home there's inspections and escrows and loan approvals and lots of other people in the mix with their own part to play all of which can get very confusing very fast. Your realtor is the CEO of this transaction. You are the shareholder. Think of it that way. He/she needs to make sure you understand, are comfortable with and complete this entire transaction right up to final closing if they are to be paid.

Get a realtor thats on your team. One who is an advocate and a teacher of this process, not one that will try to fit you in their niche. You aren't wasting their time any more than you waste your lawyers time.

Last edited by BLDSoon; 09-18-2015 at 11:17 AM..
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