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Old 03-21-2015, 02:07 AM
 
32 posts, read 31,965 times
Reputation: 33

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Rent currently: $1100. I take care of yard. Since renting with a landlord that lets me be VERY independent, I've gained all the yard tools, most of the appliances, all lots of basic skills on how to identify and fix issues. 1550 square feet/2 story/"fair" shape/3 car garage.

Figured since I could buy a better/bigger house for $1100-1200 a month, then I would be having a better investment. Tired of two stories. 1800 square feet/1 story/"great" shape/3 car garage.

Paid 10% down (after saving for a year). Paid for one increment of points to get the rate to 3.785%, locked. 30 year mortgage.

A small second mortgage was applied to rid of PMI, but it's all rolled up in my final $1180 payment (including HOA, taxes, everything).

Now I finally can claim taxes. I'll probably break even, minus improvements and maintenance. But now with more investment potential!

Location is really awesome. The floor plan was awesome. After 10 houses and 6 months of looking, this one was it. Offered $5k less, but eventually had to pay full price and closing costs, which ended up appraising to be a good deal. Everything, including work, is exactly 1 mile away.

Inspection went well. A couple minor issues. All professionally resolved by the seller (and some will be).

Signing on Monday. First time home-owner. My relator is wonder why I am not excited for such a "great property that will be a fantastic investment." I guess it doesn't feel real yet.
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Old 03-21-2015, 09:18 AM
 
2,600 posts, read 5,467,764 times
Reputation: 2387
It'll hit when you sign the paperwork !!!
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Old 03-21-2015, 10:25 AM
 
12,404 posts, read 9,221,478 times
Reputation: 8868
Now you will be bearing the maintenance costs, plus, the loss of any earning potential on your down payment funds (say in a mutual fund).

And the value of the property may go up or down. You won't know in advance.

But at least a portion of your monthly payment is going to principal now...
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Old 03-22-2015, 02:56 PM
 
6,361 posts, read 7,344,952 times
Reputation: 10822
As long as you're happy with your decision, you did fine.
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Old 03-23-2015, 09:10 AM
 
Location: Southern California
4,350 posts, read 4,944,071 times
Reputation: 2129
Quote:
Originally Posted by kawahonda View Post
Signing on Monday. First time home-owner. My relator is wonder why I am not excited for such a "great property that will be a fantastic investment." I guess it doesn't feel real yet.
There is usually some anxiety with the first home purchase, it is possible you'll never feel great about this one.
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Old 03-23-2015, 01:12 PM
 
5,076 posts, read 7,985,558 times
Reputation: 4613
fair shape = you will never have free time or savings again
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Old 03-23-2015, 01:16 PM
 
Location: Somewhere in USA
537 posts, read 453,812 times
Reputation: 467
it's ok, you have a roof over your head and a home to come to...up or down of the house value doesn't mean anything. A home is NOT really an investment if you live in it for most of your life here on out. Just work harder, get pay higher to live a comfortable life.

congrats.
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Old 03-23-2015, 02:19 PM
 
Location: Boise, ID
8,013 posts, read 22,549,458 times
Reputation: 9233
Pfff...don't listen to people who say you'll never have savings or free time again. There are always some people who insist that buying any home, ever, is a money trap and that you will always come out ahead with renting. That is sometimes true, but not always.

If you are planning to stay put for at least 5 years, and your payment stayed basically the same, and you were ALREADY doing your own yard work, paying your own utilities, and some of your own minor maintenance, as it sounds like you were, life doesn't change that much with owning, other than you build equity. You will have a few more expenses, such as homeowners dues, that are on top of your PITI payment, as well as anything that breaks will now be your expense.

I've owned my house for the last 12 years, and I manage about 170 rental houses and duplexes. The amount of time I spend on maintenance and the amount of time my tenants spend is about the same. I do my own yard work. My tenants do their own yard work. If something is broken, I call the repairman and then meet him. If my tenants have something broken, they call me, I call the repairman, and the tenants meet him. Everything is about the same amount of time and effort for the tenants as it is for me.

Tenants do come out ahead on maintenance costs, but in 12 years, the only expenses I've had that I tenant wouldn't have would be replacing a dishwasher, a compressor on the fridge (which in many cases with a house rental, would be the tenant's fridge anyway) and I think I'm going to have to replace my A/C this summer, as I've had to repair it twice and I think it is going out again. So maybe $2000ish total in 12 years. Everything else I've had for expenses have been things a tenant would also have had: Yard care supplies, furnace filters, light bulbs, batteries, that sort of thing.
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