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Rental is a good idea if you want to see if the market goes lower. $1000 a month on rent is better than $1000 a month towards a mortgage, plus about another $500 a month for tax and insurance. You wont be building much equity for a couple of years anyway if market continues to slide. I Don't agree with the comment about expensive rentals, there are tons of homes out there and owners will negotiate, they have little choice if they want a tenant to cover their running costs on a house they can't sell. Look for a house that is for sale/for lease - they are the ones who will most likely work with you. When a market bottoms out (not yet I think ), then the next day you will not see an upturn in the 30-40% to get it back to where it was, when did you see that happen (except maybe two years back and that was not so extreme). If you see a t 7% growth per year on values, that will be something good and that will take several years to get things back to where they were. So unless you are planning to hold property for several years, think first. Goodness I hate to say that when I am in this business!
I think these last posts have been in response to Shells OP(who I would also advise to rent since they have the option to do so), but in my case I think I've decided to stay put for the 1 yr + that it will take for hubby to finish the pre-engineering courses at community college since that doesn't require more debt in terms of tuition and then see where we are at that time before deciding to either cut out or send him to Miami and keep sitting on the house. I know I won't get the money we put down on the house back, at least not for an unknown period of time, but the one thing that would just send me over the edge would be having to shell out money to get rid of it. Given that we put a significant amount down and I don't owe a ton over market value, I feel like it's doable in another year or so. I guess that might make it more attractive to my lender in a short sale scenario since they wouldn't have to write off so much (and assessing the interest I've paid they would be basically getting the whole amount anyway though I know that/s not THEIR goal-they want more) So we'll see. This has been a really hard lesson for us. My parents both thought the market might go down but we had just come from Broward where we couldn't get into anything other than a fixer-upper and were afraid that we'd get caught in the crunch here and again not be able to afford anything. At the time $250k was a very modest price for new construction. Not so much anymore.
We moved out of Palm Harbor in 2005 and as you can surmise we did sell our house at excellent price. Alas, we now want to move back! lol We moved to east of Nashville (Hermitage) where we got a 3000+ for 254,000 and thou not as bad as FL the housing (seller) is a bit low. My hubbys biggest concern is the taxes and Insurance and the schools in FL (have a 2yr old) and selling this house. I believe that with my going back to work in FL plus my intentions of being involved in our daughters schools,that we will be fine.
With that being said, would this be a good time to move back re:Buyers market and how long do u think it's going to remain that way in Florida? In other words, how long should we wait to move back? I heard on news that the market is going to start flipping this spring. Any advice is appreciated!
The market will turn around when one of two things happen.
1. Wages increase to match cost of living..........yeah right.
2. Prices come down to match what people earn.......most likely.
I don't think it;s as much of an affordability problem as it is a lack of demand coupled with loss of jobs (which was of course tied to the decline) A new construction house can be had in Lee County for $130 and condos/townhouses as low as $99k (probably similar to other ares in Southwest florida). if that's not affordable to the average Joe then I don't know what is. It's not going to go back to 1990 when you could get a new construction single family for $80k or less. The excess inventory caused the demand to decline since people weren't fighting over the same house anymore and slowly the fever went down. I remember there were waiting lists for communities priced at $250K and above. If so many people couldn't afford that then who was on those lists? And no it wasn't wealthy retirees, it was young families and couples like most. The lowered rates made people able to now afford those prices and those rates have not gone up. Now that the prices have gone down the formula should be more people buying which would lead to job growth. Unfortunately it's going to be hard to have one without the other. Only time will tell.
What a fantasy. to afford a 130K house one should be making at least 45K and to really cover it more like 55K. that's still a minority of the working population. It certainly isn't the "average joe." even on that income, with rents what they are it's hard to save a significant down payment. Check the mortgage calculators and see if I'm not right. I think I checked what we could afford if my husband got afull time teaching position and it wasn't near 130K.
those wait listers for 250K homes? they're now lined up at the courthouse seeing their houses go into foreclosure. they're the two income families who lost one income to "downsizing" or one partner trying to stay home with the kids or some other loss that they can't make up now.
Quote:
Originally Posted by FIU2000
I don't think it;s as much of an affordability problem as it is a lack of demand coupled with loss of jobs (which was of course tied to the decline) A new construction house can be had in Lee County for $130 and condos/townhouses as low as $99k (probably similar to other ares in Southwest florida). if that's not affordable to the average Joe then I don't know what is. It's not going to go back to 1990 when you could get a new construction single family for $80k or less. The excess inventory caused the demand to decline since people weren't fighting over the same house anymore and slowly the fever went down. I remember there were waiting lists for communities priced at $250K and above. If so many people couldn't afford that then who was on those lists? And no it wasn't wealthy retirees, it was young families and couples like most. The lowered rates made people able to now afford those prices and those rates have not gone up. Now that the prices have gone down the formula should be more people buying which would lead to job growth. Unfortunately it's going to be hard to have one without the other. Only time will tell.
45k is not much when it's coming from two incomes. With our first house we were earning something like that, each of us were making somewhere in the 20K range and we bought a house for $145k with a $5k down payment. The problem is now people spend too much of their income. No one is saving money anymore. they want to have it all. Together we STILL don't earn more than 70K and that afforded a 250k home and we're not in the courthouse and we still put away money every month. Too many people putting things on plastic, don't want to drive old cars, don't want to buy their clothes at TJ Maxx. I see it ALL the time. I work in HR and I fill out the forms for Habitat for Humanity which by the way if you run a family on 40K or less you pretty much qualify so sorry I don't buy the I'll never own a house cry. People want the government to support them and help them when they get themselves into trouble. Sorry but I don't think my tax dollars should go to bail people out of deals they couldn't handle. No one helped us with anything. But whatever, there will always be people like you that will complain about everything and will never get anywhere. You probably don't qualify because you simply have TOO MUCH DEBT. Work on that first and then maybe you'll be able to buy something one day.
my only disagreement is what about singles or couples where one can't work and the other just doesn't make near 45K? You see, we're the people who are at risk to homelessness. BTW, I've checked with Habitat and every time I was told
families with children are given preference and that we'd have to be in substandard housing to qualify. This despite my having MS and not being able to work. I even looked in one community in NJ where Habitat was building 2 story townhomes and said they wouldn't make them adaptive to the disabled. The entrances were several steps above street level so no access at all.
But FIU2000, You are so right about debt. I don't even shop TJMaxx. I go to thrift shops and if you know style and quality you can get some awesome stuff. Most of what is in my house and on my bod comes from one. We have a car loan because the old car, fix'em up scenario didn't work for us and I've gotta say, with computerization it's getting harder, BUT we bought a 5 year old VW Beetle with low mileage. The car payment is less than what we were paying on repairs on the 10year old cars. We get 30 mi/gal in town cause its a stick. We don't keep credit card debt cause that's the worst.
I wish you well with your house. You sound like you ave good sense about finances. My big worry was that you'd lose money to unload it. I hope things don't get worse and you can pull some equity out.
Quote:
Originally Posted by FIU2000
45k is not much when it's coming from two incomes. With our first house we were earning something like that, each of us were making somewhere in the 20K range and we bought a house for $145k with a $5k down payment. The problem is now people spend too much of their income. No one is saving money anymore. they want to have it all. Together we STILL don't earn more than 70K and that afforded a 250k home and we're not in the courthouse and we still put away money every month. Too many people putting things on plastic, don't want to drive old cars, don't want to buy their clothes at TJ Maxx. I see it ALL the time. I work in HR and I fill out the forms for Habitat for Humanity which by the way if you run a family on 40K or less you pretty much qualify so sorry I don't buy the I'll never own a house cry. People want the government to support them and help them when they get themselves into trouble. Sorry but I don't think my tax dollars should go to bail people out of deals they couldn't handle. No one helped us with anything. But whatever, there will always be people like you that will complain about everything and will never get anywhere. You probably don't qualify because you simply have TOO MUCH DEBT. Work on that first and then maybe you'll be able to buy something one day.
Originally Posted by FIU2000
"45k is not much when it's coming from two incomes. With our first house we were earning something like that, each of us were making somewhere in the 20K range and we bought a house for $145k with a $5k down payment. The problem is now people spend too much of their income. No one is saving money anymore. they want to have it all. Together we STILL don't earn more than 70K and that afforded a 250k home and we're not in the courthouse and we still put away money every month. Too many people putting things on plastic, don't want to drive old cars, don't want to buy their clothes at TJ Maxx. I see it ALL the time. I work in HR and I fill out the forms for Habitat for Humanity which by the way if you run a family on 40K or less you pretty much qualify so sorry I don't buy the I'll never own a house cry. People want the government to support them and help them when they get themselves into trouble. Sorry but I don't think my tax dollars should go to bail people out of deals they couldn't handle. No one helped us with anything. But whatever, there will always be people like you that will complain about everything and will never get anywhere. You probably don't qualify because you simply have TOO MUCH DEBT. Work on that first and then maybe you'll be able to buy something one day.
YOU GO GIRL!!!!! It does my heart good to read the words of someone in your generation that is so self reliant and willing to accept the consequences of her/his actions!! In this atmosphere of entitlement mentality in this country it's all too easy for people to assign the blame to external forces. It was oh so refreshing to read your post.
I feel for you, I really do. My mother-in-law is also disabled and her husband is the sole breadwinner and I know it's not easy. They do probably give preference to people with kids at Habitat (most likely why we never got any assistance with our first house, but we have chosen to wait to have kids until we are financially able) Anyway, I am all for anyone who tries their best to help themselves which it sounds like you have tried to do. I just get irritated with people who think someone is always going to bail them out when they get in over their heads. I've known people who claimed bankruptcy when really if they had tightened their belts they probably wouldn't have had to.
I keep hearing about this impending recession and it's really scary. I really think I've decided to keep sitting on the house as long as we can and hopefully see this thing through. We can figure out the school thing somehow. I've even looked into him living in one of those roommate style apartments while he goes to school because it would be the only way to afford it while I stay put. It's not what we want but can't always get what you want right?
I think I mentioned the idea of him living at school a couple of days a week, didn't I? You guys have to much going for you in the common sense and maturity dept. to blow it on romantic notions. Of course it's hard to be apart but you'll get thru it. Even after 20 years we'd hate to have to be in that position. I like tonynorie's post and agree with everything he said about you. Just stick to your guns and you'll be fine. I predict a long and happy marriage. That doesn't mean there won't be bumps and as I also mentioned previously, look at the couple who are apart because of Iraq. I don't want to get political, I'm just saying that according to their beliefs, they are sacrificing with no guarantee of a happy personal outcome. For you, if you believe your husband needs this education and it's bout of your true desire, then you will be sacrificing too but it will almost assure a good result.
Quote:
Originally Posted by FIU2000
Jessiesma,
I feel for you, I really do. My mother-in-law is also disabled and her husband is the sole breadwinner and I know it's not easy. They do probably give preference to people with kids at Habitat (most likely why we never got any assistance with our first house, but we have chosen to wait to have kids until we are financially able) Anyway, I am all for anyone who tries their best to help themselves which it sounds like you have tried to do. I just get irritated with people who think someone is always going to bail them out when they get in over their heads. I've known people who claimed bankruptcy when really if they had tightened their belts they probably wouldn't have had to.
I keep hearing about this impending recession and it's really scary. I really think I've decided to keep sitting on the house as long as we can and hopefully see this thing through. We can figure out the school thing somehow. I've even looked into him living in one of those roommate style apartments while he goes to school because it would be the only way to afford it while I stay put. It's not what we want but can't always get what you want right?
All the best.
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wow
The entrances were several steps above street level so no access at all. 
yep
