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.
I agree, except when the next crash comes, I would do whatever is necessary to buy a house before it goes back up. Even if that means buying before paying off all the debt. At least historically, the market crashes suddenly and pretty fast, stays down a while then shots back up pretty quickly. You may not have a lot of time to act once you realize the market is recovering. Real estate seems to behave differently than the stock market which jumps all over the place within a given year.
You want to make sure that your house payments are the same as your rental payments or possibly less
Because there's always going to be additional costs to owning a house
All you respondents predicting a sharp correction in the housing market, on what are you basing that opinion? And would you care to venture a guess as to when it will come to pass?
We sold our home very quickly and have a nice property to live in until we buy. But I agree prices are high in the areas of the country we're interested in, SW and SoCal. Our grown daughter and her husband are very successful in real estate, but primarily commercial. They are urging us to wait.
Have you looked at any USDA homes ? some of those are really nice and they are further out from town but I found my really nice house that way and I'm very happy . Get a real estate agent and start looking at USDA homes you might swing one of those and still be able to pay off your debt .
OP, I think its good to be asking this question now and giving yourself time to prepare. Whenever i have bought any property (and I own several and invest in both commercial and residential real estate) I always make sure I am in the best financial shape to make an offer. Its kind of like training for a marathon-- you just don't go running, you need a little time to get ready, have the right shoes, etc.
Get your credit card debt paid off. Its not huge. That is an easy one. Maybe think about trading in the truck for something with a lower monthly payment? My mate bough an expensive German car which ended up being a lemon and ALWAYS needed repairs. We were able with the help of a good credit union loan to trade it in for something more reliable and reduce the monthly payment and interest AND get an awesome warranty on the new car. Start bulking up your savings. Maybe doing some odd jobs here and there will bring in extra cash for you which you can put toward a down payment.
Do some research on loan types and lenders as they are not all created equal. And start following Redfin/Zillow/Trulia in your desired area to get an idea of what houses are selling for at close (not listed for-- two different things) Keep favorites in your list and watch how long they are on the market so that when you are ready you can pounce. Go to open houses and meet realtors making note of the ones you like and might want to work with.
All this prep will pay off. Further it will put you in a great position when you are ready. It will also help "scratch the itch" for house buying so you can know that each step taken is getting you closer to your goal. Good luck!
The real estate market always cycles. It is definitely highish right now in many areas- not the time to by. It is probably not at a peak and might go higher, but it will crash sooner or later, it always has although the general trend is up that does nto mean you cannot buy during a down time and ride the next wave. Wait for a crash and buy then. Meanwhile pay off as much debt as you can.
That's exactly what my real estate agent said... except she was telling me it was a good time to sell my home and then buy in a less expensive state where homes for sale are plentiful.
OP, I agree with Coldjensens.. wait and pay off your debts and save whatever money you can.
Yes and that's what I will do. Btw... y'all said the system cycles. Do you think the same applies for apartments/rent houses too? Or once they go up in price that stays?
Yes and that's what I will do. Btw... y'all said the system cycles. Do you think the same applies for apartments/rent houses too? Or once they go up in price that stays?
Home sales do have an impact on rental prices. If homes are scarce, or out of buyers reach financially rents are usually higher. A few years ago when all those balloon mtgs came due and people had their homes foreclosed on, rents went up because those people had no where to go and apartments were scarce.. Yes, it sucks but thats what happened.
If there's a glut of homes for sale on the market and they're not selling well.. rents may be cheaper because those people may need the money to pay off their own home and they need renters.
I don't know how apartment buildings work though. I can only speak as a former LL that used to rent out an apartment in a private home.
I owned a home for 4 years, it was a fun experience and then when people get divorced you lose the house. So I have owned before.
I don't look at it as a investment. Future equity is nice if I want to sale one day. But I would be buying to live there for along time.
I most likely will pay the truck off first and then save.
Same here. Too many people buy houses and only think about money and never truly live or enjoy their home.
Research research research you can even buy a small piece of land and build a small house or put a manufactured home or mobile home on it.
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.
Same here. Too many people buy houses and only think about money and never truly live or enjoy their home.
