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The sellers aren't going to lower the price or pay the closing costs now; they have a ratified contract. And two weeks to closing, all contingencies most likely have been removed, so any negotiating leverage is gone. It is what it is-- and that's a legally binding contract. Trying to back out now would probably increase the buyer's out-of-pocket, not lower it. This is the time to focus on the positive, not worry about what years down the road might-- or might not-- bring.
I'm not thinking about back out or anything...I'm just trying to 'refocus' and get excited again about purchasing my new home. I guess I'm just nervous thats all. BTW-The seller is paying 3000 in closing costs.
Look at it this way. I don't know what you pay for rent, but lets say it's $1000 per month.
If you rent for the next two years you will be paying $24,000 of someone elses payment. That $24,000 will be gone...gone I say!
If you lose money on the condo, but lose less than $24,000 you will still be ahead of renting. So cut yourself a little slack, $24,000 worth of it.
That still doesn't say you won't lose even more than $24,000, but you know you lose $24,000 if you rent.
Gosh! Did you find the magic mortgage company that doesn't charge interest and the magic town that doesn't charge taxes and the magic house that never needs fixing! Did ya?
Gosh! Did you find the magic mortgage company that doesn't charge interest and the magic town that doesn't charge taxes and the magic house that never needs fixing! Did ya?
I think her math probably assumed taxes escrowed in the payments. You are also paying taxes on rentals, it's just that you are paying taxes for the owner and not yourself. Also, there are tax advantages for owning.
In 2 years the payments will have mostly toward interest, you are correct. A good home warranty handles many repairs. Also, a home can appreciate but a rental never will for the renter.
Also, many times the mortgage is more affordable than what you can rent the same property for.
There are many variables in real estate and it's impossible to predict the outcome. I can tell you this: Many owners have made money on real estate, no renter ever has.
Sounds to me like you got a great deal that fits your situation. Stop being a creative worrier and enjoy the fact that you have just purchased your new home! Why in heavens name are you worrying about moving out when you haven't even moved in yet?
And stop listening to relatives and friends unless they are positive, supporting and happy for you. Many of them have their own agenda which has nothing to do with you and that goes on regardless of the market.
REJOICE! You're going to have YOUR OWN PLACE! YAY!
Coco, I live in Marietta now, but lived inside Atlanta for awhile. We ended up selling for just under what we paid for our townhouse, but it was older and there were some foreclosures around us bringing down the price. However, we walked away with a check at closing because we had paid down the mortgage some... which wouldn't happen if we had been renting. I wouldn't worry about resale if you hold on to it for awhile, but I wouldn't start thinking just two years into the future. If the market hasn't stabilized by then you will probably want to hold onto it longer, or you will need to make some improvements for the value to go up so you can make a profit.
That being said, I don't think you should be thinking about resale at all unless you are changing things in the house. We're painting the walls and putting in new floors and I'm thinking of ways to only have to do it once because we know how long we want to be in that house. However, I am also really just enjoying having my own home that I can do what I want to and make it mine. Make your condo feel like home and don't worry about resale before you even move in.
Coco, did you have a buyer's Agent ?? Did you get a CMA ?? the problem is when you go directly to the seller or the agent who is representing the seller,this agent is not going to do much for you. that is why is a good idea to have your own agent. fell free to have one of us run a cma for you( no strings attached) if you did't have your own agent to represent you. to me is better to loose the ernest money than to get into something much bigger
Marty makes a good point of the financial advantages of paying towards a mortgage in a condo rather than renting an apartment. If when the time to sell comes, the market is terribly bad, you can always rent it out for a while.
But Marty's logic is flawed- sure, with the rent, you throw away $24k in rent, but with the mortgage, you throw away probably $20k in interest (since you'll pay little principal back, and taking into account tax write-offs). Granted, $20k is better than $24k, but let's not kid ourselves and make it sound like the OP will be coming out with $24k more in assets than he would otherwise.
I think her math probably assumed taxes escrowed in the payments. You are also paying taxes on rentals, it's just that you are paying taxes for the owner and not yourself. Also, there are tax advantages for owning.
In 2 years the payments will have mostly toward interest, you are correct. A good home warranty handles many repairs. Also, a home can appreciate but a rental never will for the renter.
Also, many times the mortgage is more affordable than what you can rent the same property for.
There are many variables in real estate and it's impossible to predict the outcome. I can tell you this: Many owners have made money on real estate, no renter ever has.
All true. But I am beyond tired of the "renting is throwing away money bull". Renting is paying for the use of a property for shelter. Period. It's major advantages are 1. Easy entry qualifications. 2. Flexibility. We pay for lots of transient items - food, clothing, vehicles, going to the movies. It is just the price of living.
Ownership has its own benefits, primarily security. But plenty of money is thrown away too - hundreds of thousands in interest, taxes and maintenance, depreciation and opportunity cost of money tied up in a home. And equity in a home is illiquid.
You're other points, are sometimes accurate, but not complete:
Sometimes PITI is less than rent (and if not planning to move, well why NOT buy?), currently it is generally more, in some parts of the country double.
Yes, some owners have made money on their properties -but as we are beginning to see, it is also possible to LOSE on a home purchase, big time. Someone facing foreclosure loses not only any equity, but all of the payments they made while inhabiting the house, essentially renting from the bank for years with nothing to show at the end. And LOTS of people are upside down right now - they have lost money by living in their homes.
I'm not trying to diss home ownership -just the attitude that renting is always bad and buying always good. The choice should suit the individual and the situation, not be a good/bad propostion. And that is what that simplistic post indicated.
Look at it this way. I don't know what you pay for rent, but lets say it's $1000 per month.
If you rent for the next two years you will be paying $24,000 of someone elses payment. That $24,000 will be gone...gone I say!
If you lose money on the condo, but lose less than $24,000 you will still be ahead of renting. So cut yourself a little slack, $24,000 worth of it.
That still doesn't say you won't lose even more than $24,000, but you know you lose $24,000 if you rent.
not to forget, you can write off taxes..for your interest too hahha..then again if you pay extra yearly..you can pay off faster than way.
Dont worry ..you re going thru cold feet and buyers remorse....
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