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Q: What's the difference between a recession and a depression?
A: A recession is when your neighbor loses their job, a depression is when you do.
Rule #1: Have enough cash and cash equivalents (CD's, Savings Bonds, ...) put aside to pay at least six months worth of expenses. If you don't have that, you are in no position to leverage up in buying a home. (And yes, a mortgage loan is leverage.)
There is no such thing as a recession proof house. The best thing is to put 20% down, have a big savings cushion, and buy when you know your job is secure.
OP, your list is very much like the house we just bought, except ours was built in ‘69. It’s an exceedingly good purchase and we are very pleased with it, and with the pretty much instant equity we are getting by carefully updating it.
We bought it for $185k, are putting in about 15k in upgrades, including the electrical and some plumbing, hot water heater, etc, and we could turn around and easily sell it 215k or so as soon as the updates are complete. It would also make a pretty good income property.
How about 3 bed /2 bath ? less likely to take a hit ?
No one here can say if a 4bed/3bath is too big or small without more detail because this could be a 1,800 sq ft home or a 3,500 sq ft home. Plus it depends on how many people will be living there. 50 years ago most people didn't live in these big houses of today. Keep in mind though that a 3 bedroom home could sometimes cost the same or more as a 4 bedroom home as there's more to price than just the number of bedrooms!
There is no such thing as a recession proof house. The best thing is to put 20% down, have a big savings cushion, and buy when you know your job is secure.
please explain
some are better than others obviously nothing is 100% sure
I think bigger fancier houses are more likely to lose value more often during recession
houses in neighborhood that are likely to go downhill in the next few yrs or so will definately lose more value
if a mid sized town loses major businesses then houses will suffer
obviously I'm planning on 20% down and have already started saving on it and I plan to buy approx in 1 yr from now as it will take time to explore , research, plan and save up on down payment
No one here can say if a 4bed/3bath is too big or small without more detail because this could be a 1,800 sq ft home or a 3,500 sq ft home. Plus it depends on how many people will be living there. 50 years ago most people didn't live in these big houses of today. Keep in mind though that a 3 bedroom home could sometimes cost the same or more as a 4 bedroom home as there's more to price than just the number of bedrooms!
Agree , 2500 sq ft is what I'm hoping so maybe 3 bed/2 bath
at this time 2 adults and 1 kid , maybe 2 kids so for 4 people in total
people say have a guest bedroom too, but in total i think I will have people come and sleep over maybe 4 weeks a year , do I need to maintain a room and keep it empty for 11 months ? why cant one of the kid just share with other one for 4 weeks out of 52 ? heck even I can sleep in the living room if needed
Plus i plan to complete and update the basement once I buy it and maybe create a whole living space own there so that can be the additional bedroom
There is no such thing as a recession proof house. .
You are actually wrong. There are places where a person who is getting say $1500 a month on Social Security buys a home in an area with not a lot of jobs. They buy a small 2/1 in very good shape for $40K. Their payments are $189 a month plus 110 for taxes and insurance if they can buy in a low cost insurance and tax state. Payments are $300 a month. Voila recession proof. They can also rent the other bedroom to a friend or family member for $400 a month and their mortgage will be zero with a gain of $100.
OP, your list is very much like the house we just bought, except ours was built in ‘69. It’s an exceedingly good purchase and we are very pleased with it, and with the pretty much instant equity we are getting by carefully updating it.
We bought it for $185k, are putting in about 15k in upgrades, including the electrical and some plumbing, hot water heater, etc, and we could turn around and easily sell it 215k or so as soon as the updates are complete. It would also make a pretty good income property.
Q: What's the difference between a recession and a depression?
A: A recession is when your neighbor loses their job, a depression is when you do.
Rule #1: Have enough cash and cash equivalents (CD's, Savings Bonds, ...) put aside to pay at least six months worth of expenses. If you don't have that, you are in no position to leverage up in buying a home. (And yes, a mortgage loan is leverage.)
Do you advise people to continue renting indefinitely, maybe paying 50%+ more monthly while renting vs. owning a comparable dwelling?
We aren’t either, really. We bought it as a temporary home for the next five years or so while we build, and then we’re either going to sell it or rent it out, but it will be the primary residence for us for a good while. It’s a little smaller than what you’re looking for (2200-ish square feet) but big for the area, and with four bedrooms instead of the standard three, plus it is a ranch. All that sets it ahead in a stable neighborhood of long term owners, in the best school district, with extremely short drives to amenities and major freeways, in a wonderful midwestern town with plenty of types of industry.
If we needed to rent it out because the market was depressed for selling we could, but we didn’t purchase it as an income property or a flip and renting it out isn’t our first choice. However we did keep the value in mind and got one that was priced under what it should have been. Despite being in the middle of the renovations we are really thrilled with the purchase - zero regrets.
Don’t overlook older houses - especially in the Midwest you are often better off with something from the 30’s-60’s than newer construction that was done cheaply. Many of those homes need some system upgrades but nothing insanely expensive to manage, so you get a lot of bang for your buck over a home that is late 19th century or depression/prewar area, that might need work on the foundation and such as well as modernized systems. But if you’re just looking at construction from 1980-now you’re really missing out on some of your best bargains and neighborhoods in much of the Midwest.
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