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Old 03-18-2008, 09:03 PM
 
24 posts, read 187,571 times
Reputation: 25

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Hi, i'm in the Military and will be our here for another 5 years. I'm looking to buy a house in NW Las Vegas now that the market is down; when we first moved here we couldn't afford anything but we've recently found a house that's in a decent neighborhood for $190k, 1,9xx sq ft, 2car garage, 4br, 3 bath, all major appliances, and is move in ready. We will be "house poor" but we're willing to sacrifice especially if we can sell for a higher price in 5 years.

Is this a good idea? Any advice would be appreciated. Thanks!
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Old 03-18-2008, 09:13 PM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,622,228 times
Reputation: 836
I personally would not stretch myself too thin, especially on the gamble that housing will appreciate significantly in the next 5 years. It very well may, however there is always a chance that it won't. If you are forced to relocate in 5 years and the home has not appreciated, then what? I would think very carefully about this.

On another note, you couldn't afford anything before because housing costs were too high? Or because you made less money? The reason I ask is because I run into quite a few first time buyers that have recently gotten a raise or new job that think that they will now qualify for a home. However, income must be averaged over the last 24 months, with a few exceptions, so I am forced to break the bad new to quite a few hopeful people on a weekly basis.

Also, just so you know, rates on a VA 30 yr fixed are 6% as of the end of business today, and there is no MI required on a VA loan, so expect a payment of around $1450-$1500, including taxes and hazard insurance.
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Old 03-18-2008, 09:24 PM
 
24 posts, read 187,571 times
Reputation: 25
We've been approved for a VA and we created a budget where we have $400-600 disposable income every month (it fluctuates since my wife is a waitress). We'll also have a friend who's moving in with us for a year, before he gets stationed out, that will pay $300 a month plus 1/3 of utilities; our budget does not include his contribution to the bills so we have an idea of what we'll have without a roommate. I've not gotten a promotion; we were just priced out of the market for what we were looking for.

My wife and I are very worried about being stretched thin; however, if in 5 years we break even or make a small profit off this house we feel it will be worth the learning pains
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Old 03-18-2008, 09:44 PM
 
Location: Las Vegas
3,731 posts, read 5,886,680 times
Reputation: 1247
My honest opinion halfbreed...rent, don't buy. This is currently not the market to make any kind of profit off a home in a short period of time.

You can rent a beautiful home for 5 years, and invest whatever capital you may have left over every month so that it makes a monthly cash flow for you while you're renting/living here. No headaches, your money is still "working" for you, less risky, you can sleep at night, and you can be out at the end of your stint here quickly (and without taking a loss) when the time comes to leave.

Five years is not a very long time, and orders change sometimes. Perhaps you'll be out of here in three years? I had a girlfriend who's hubby was supposed to be here for 5 years...he got ordered to do his "out of country" stint after he was here for three years...so they had to get out fast to head to England, Lakenheath I think it's called. He is an F-14 pilot and does "flyover" missions over Turkey.

They were glad they had rented, the orders came so fast and they had to pack and get their initial shipment of their home contents out really fast, they're glad they had no "ties" in Las Vegas to complicate matters. They had all intentions of coming back to Las Vegas..to purchase a home, but they got transferred to Idaho after the England stint.

House poor is not something you want to do, especially if you'll only be here for five years. Why make it miserable?

Las Vegas will still be here when you get a permanent commission or are discharged. Then purchase a home you can hold onto for the long run.

If in fact, Las Vegas IS the place you want to stay in.

Best of luck, and we salute you!
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Old 03-18-2008, 09:44 PM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,622,228 times
Reputation: 836
It sounds like you have a very good idea of what to expect, and based on what you've written here it sounds like you are pretty well prepared. $700-$900 in disposable income including your friend's contribution is still highly risky, especially since there is no guarantee that the friend will be in your place for 5 years. Honestly, if you are that serious about buying I would strongly suggest that you find something more affordable. You're cutting it way too close, IMO.

On another note, who are you pre-qualified with? USAA? The reason I ask is because I consistently find myself competing for business with them, and they usually come out ahead.
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Old 03-18-2008, 10:07 PM
 
24 posts, read 187,571 times
Reputation: 25
My realtor recommended a mortgage broker who found the loan for us. It's at 6.15%.

We've actually made the bid on the short sale home today and so it's not ours yet. We like it and it's everything we need: Granite Counter tops, all appliances, and move in ready. I'm just starting to have second thoughts and the replies to this thread aren't making me feel any more confident

Here's a link to the house: 8164 Finch Feather St, Las Vegas, NV 89143 | Zillow Real Estate
It's from Zillow so the prices aren't accurate.

Thanks for the replies! I might have to turn the house down if I actually do get it!
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Old 03-18-2008, 10:21 PM
 
Location: Here and there, you decide.
9,569 posts, read 15,032,968 times
Reputation: 2473
20% below asking price? any other offers on the house? my guess is that it would sell for around 230ish
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Old 03-18-2008, 10:24 PM
 
24 posts, read 187,571 times
Reputation: 25
The actual price on the MLS is 188k. House number is 764739 in the system.
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Old 03-18-2008, 10:30 PM
 
Location: Las Vegas, NV
120 posts, read 256,117 times
Reputation: 46
BUY IT --- why wouldn't you buy it? It's your primary home - the market is down. The interest and taxes are tax deductible! This is a NO BRAINER..... is it the bottom of the market? Who knows. Can it go down more? Sure! But who cares?

Why would you rent, and pay someone elses mortgage, and then have nothing to show for it when you move?

If you can't sell the primary down the road, for whatever reason, then you RENT out your property!

Build some wealth!! And one more thing, my famous catch phrase:

patience, my friends............
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Old 03-18-2008, 10:33 PM
 
Location: Here and there, you decide.
9,569 posts, read 15,032,968 times
Reputation: 2473
looks like a nice house, my bad on the listing $$, i'm suprised that it already shows "contingent offer"... gotta love them tiny las vegas backyards though.. and yes vegas4u is right.. Buy It! You mortgage is probably $1300ish, where can you find a rental for that and deduct..
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