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.
Thank you all for your input...It is all very useful.
My husband is being transferrred from within his current, US company so at the moment it looks like they will pay re-location but not housing, which is understandable in todays market.
In Melbourne we haven't been very affected by the current economic crisis and houses in my area are still rising in price. It can actually be very frustrating when a house is advertised for $500K and actually ends up selling for 20% more...thats why i was asking about the asking price and the expectations attached to it.
I will def look into a lawer...when it comes to the time. Ideally I am looking for great school district, easy commute to local airport and city, 4 bedrooms, yard...I am happy to buy a place where the kitchen and bathroom needs updating.
I am planning on coming out in September (not really so far away when there is so much to organize) with my daughters to check out areas and schools....We are then going to have to pretty much decide on an area then and there as the girls will need to be put into school. From my research I haven't heard anything bad about either Avon or Glastonbury, except that a commute from Glastonbury is easier.
thanks again for your input...this forum is fantastic
I am planning on coming out in September (not really so far away when there is so much to organize) with my daughters to check out areas and schools....We are then going to have to pretty much decide on an area then and there as the girls will need to be put into school.
It would be better if you can get here a little sooner because many school districts will be starting ~August 30th this year. Schools in this area typically start after Labor Day, but Labor Day is a bit later this year. For ease of transition for your daughters, it would be best if they're in attendance on the first day of the school year.
For ease of transition for your daughters, it would be best if they're in attendance on the first day of the school year.
Actually, a friend of mine's children disagree with this. They note that people usually make a fuss when someone new comes into a school in the middle of the year, so the new kids will be able to meet more kids. On the first day, everyone if new (or at least for their particular grade) so there is nothing exciting about another child. Just a different way of looking at it, but I understand it. Jay
Thank you Jay, I have actually heard the same logic from a few people. My older daughter who is eight has had two new kids in her class the past two years and they are always very excited to meet them. I am also hoping the fact that they will be coming from the other side of the world with accents might help them with other kids being more curious and wanting to get to know them...fingers crossed with that one ;-) My only concern for school, apart from the social aspect, is the spelling and adjusting to "American English" as appose to "English". both my girls are excellent at spelling so it will be interesting to see how long it takes them to drop the "u's" etc....not really a concern more a curious thought.
Location: Montreal -> CT -> MA -> Montreal -> Ottawa
17,330 posts, read 33,016,638 times
Reputation: 28903
Quote:
Originally Posted by shell down under
Thank you Jay, I have actually heard the same logic from a few people. My older daughter who is eight has had two new kids in her class the past two years and they are always very excited to meet them. I am also hoping the fact that they will be coming from the other side of the world with accents might help them with other kids being more curious and wanting to get to know them...fingers crossed with that one ;-) My only concern for school, apart from the social aspect, is the spelling and adjusting to "American English" as appose to "English". both my girls are excellent at spelling so it will be interesting to see how long it takes them to drop the "u's" etc....not really a concern more a curious thought.
I was thinking the exact same thing. I don't have kids but I thought: in they walk with their cute little accents... instant interest to become friends with them. And once they start tellling their new friends about the "different" things that they had in Oz -- oooooh! This is going to be easy-peasy for them.
I also wouldn't worry about dropping the "u" -- I moved to the US (no "u") from Canada (yes to the "u") when I was forty years old -- so that's MANY years of spelling locked into my brain -- and I had no problem. Granted, I knew about "the lost u" of American spelling many years before I had to implement it, so maybe you could just give the girls a little warning about "color" and "favorite" and "behavior" not having the "u". There's actually not many words like it anyway.
The culture shock from Oz to CT might be an eye opener but what is the downside to renting? I have this argument all the time with people but right now renting is much cheaper than buying. If you can leave out the fact that the house is not "yours", then fiscally I really don't see much sense in buying.
Before the great real estate crash, the main advantage to buying was the the house will increase in value. Since that is not the case, if you look at just the numbers and not be bogged down by emotional attachments, renting makes the most sense. Yes, I've heard the argument that you are throwing your money away on rent, but if you purchase, you are throwing your money away on interest and taxes.
For a million dollar house with an 800K mortgage. In 10 years, you will pay $450K in interest, 150K in taxes and 130K in principal. So you've put 200K down. Your payment is roughly 5K a month, your taxes are $1500. So out of the $6500 a month you are paying for your house, $1k is going to pay down the principal.
In this market, the same house probably rents for $4k a month. So to buy a house, you have to pay $2500 a month more to live there to have 1K of principal paid every month. Granted there is a tax deduction and you do much better if the price of the house rises, but there is a lot of unknown.
Not being from the area, I suggest rent for a year or two, get to know the area you want to live in and then look at the numbers again. Good Luck!
The culture shock from Oz to CT might be an eye opener but what is the downside to renting? I have this argument all the time with people but right now renting is much cheaper than buying. If you can leave out the fact that the house is not "yours", then fiscally I really don't see much sense in buying.
Before the great real estate crash, the main advantage to buying was the the house will increase in value. Since that is not the case, if you look at just the numbers and not be bogged down by emotional attachments, renting makes the most sense. Yes, I've heard the argument that you are throwing your money away on rent, but if you purchase, you are throwing your money away on interest and taxes.
For a million dollar house with an 800K mortgage. In 10 years, you will pay $450K in interest, 150K in taxes and 130K in principal. So you've put 200K down. Your payment is roughly 5K a month, your taxes are $1500. So out of the $6500 a month you are paying for your house, $1k is going to pay down the principal.
In this market, the same house probably rents for $4k a month. So to buy a house, you have to pay $2500 a month more to live there to have 1K of principal paid every month. Granted there is a tax deduction and you do much better if the price of the house rises, but there is a lot of unknown.
Not being from the area, I suggest rent for a year or two, get to know the area you want to live in and then look at the numbers again. Good Luck!
A few items to consider:
1. Mortgage interest and property taxes are fabulous deductions to have - they can amount to considerable savings and should not be ignored. On a 5k a month mortgage @ 5% interest, you can bank ~$700 per month in a 33% income bracket - that's $8,400 per year that you just can't get with renting.
2. Historically, the median and average sales prices of homes has risen and will likely continue to rise (if the past 60 years are any predictor of the future):
If anything, I think now is the time to buy since prices are so low- if you can afford it you most definitely should try. Keep in mind that if you plan to live anywhere for less than 4-5 years you probably shouldn't be buying anyway.
Also I would recommend you have a lawyer for the process. They will look out for your interests. The realtor (or real estate agent) you work with represents the seller and is not looking out for your interest. I am not sure if this is how it is handled in your country but it is recommended here. Jay
Actually if the realtor is a Buyer's Agent, he does not represent the seller or has any of the seller's intersets at hand, unless it is a subject of dual agency (representing both seller and buyer). A realtor representing the buyer must follow the fiduciary duties that put the client's interest ahead of any other parties including his/herslf. He will find properties for the client and contact other realtors about their listings, negotiating on behalf of the client. You should always have a realtor(buyers agent) of your own and should not use the listing agent as your realtor. This way you have your own representation in negotiations for price, closing costs etc. I agree with Jay that seeking out a qualified lawyer is a must as well.
Also Shell Down Under, there is something called stated income to get a loan without your finances etc. being looked over. You would have to put down at least 50% on the property you are buying. I'm not that familiar with the process but I knew it does exist.
PS Jay I know you probably knew this already but your post might of threw off some people.
I agree. For many there is a great savings on your income taxes since you can deduct mortgage interest and taxes. If this deduction gets you into a lower tax bracket, the savings can be even greater. Right now home prices and interest rates are low so it may be a good time to buy. Some will argue that prices could go lower but if you stick it out for several years this should not be an issue. Also note that when you own the home, there is no landlord telling you what you can and can't do to the house. In a rental, the landlord sets the rules. Jay
I would strongly urge you to rent at first. When we moved back East and bought our first home, we made a big mistake. We bought a beautiful house, in what looked like a beautiful neighborhood, but the people in the neighborhood were low-class nuisances. We should have listened to our parents' advice and rented for at least 6 months. I would recommend renting in better areas of West Hartford, Avon, Simsbury, Glastonbury. I'm assuming your spouse's job is in Hartford area. Schools in all these towns are good, West Hartford is the most liberal and diverse. Once you've arrived, you can begin to get to know the market and the area better, and buy where you think you'll be happiest.
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.
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.
