Driver Posted June 20, 2017 Share Posted June 20, 2017 There is no right/wrong answer to this question, nor is there a "rule of thumb." well said and well thought Carrie-- this almost feels like a new you, or-- I think a lot of it has to do with 30-year mortgages just not being a good deal. That is absolutely not true. Depends on what rates were at the time, one's income, anticipated living situation over the next several years, and so on. A 30 year fixed is often a better idea than a shorter ARM, but the opposite can be true as well. Really depends on the individual circumstances. There we go. My unqualified opinion is that people who buy a house looking to "create wealth" are wrong-headed in the first place. Unless your name is Trump, or you want to rent out 30 homes, or you can afford to be a real estate speculator, it's probably not a good motive for buying a home. What a lot of people forget about when it comes to owning a home is the hidden costs: roof repairs, air conditioning \ heating repairs (depending on what part of the country you are in), water heater and piping repairs, electrical, paying a premium on mortgage insurance if you don't put enough down to give you enough equity (on top of home owner's insurance), and whenever the a-holes at the city or county assessors office decides to artificially raise the value of your home to generate higher taxes, all come to mind. Oh, and then, depending on where you choose to buy your home, there is the unholy wickedness of soul stealing HOAs. I don't know if I agree that home buying to build equity is wrong-headed, but you're right in that it's not something you'll succeed at if you go cheap or get a fixer upper. I resisted the notion for a long time and actually got some great advice from Carrie about just as easy/smart ways to make my money work for me. We ended up lucking into a place, so I went the home route after all-- but I certainly get the irritation at the mindset of home ownership being an essential life level-up everyone must do. Link to comment Share on other sites More sharing options...
Driver Posted June 20, 2017 Share Posted June 20, 2017 .. double post Link to comment Share on other sites More sharing options...
Guest El Chalupacabra Posted June 20, 2017 Share Posted June 20, 2017 My unqualified opinion is that people who buy a house looking to "create wealth" are wrong-headed in the first place. Unless your name is Trump, or you want to rent out 30 homes, or you can afford to be a real estate speculator, it's probably not a good motive for buying a home. What a lot of people forget about when it comes to owning a home is the hidden costs: roof repairs, air conditioning \ heating repairs (depending on what part of the country you are in), water heater and piping repairs, electrical, paying a premium on mortgage insurance if you don't put enough down to give you enough equity (on top of home owner's insurance), and whenever the a-holes at the city or county assessors office decides to artificially raise the value of your home to generate higher taxes, all come to mind. Oh, and then, depending on where you choose to buy your home, there is the unholy wickedness of soul stealing HOAs.I don't know if I agree that home buying to build equity is wrong-headed, but you're right in that it's not something you'll succeed at if you go cheap or get a fixer upper. I resisted the notion for a long time and actually got some great advice from Carrie about just as easy/smart ways to make my money work for me. We ended up lucking into a place, so I went the home route after all-- but I certainly get the mindset of home ownership being an essential life level-up everyone must do. Buying a home certainly comes down to being at the right place and time, too. And one thing I agree on, it really does depend on your personal situation. What little I know about house purchasing in LA, sounds like you may have literally had the deal of a lifetime, and is fortunate for you that you jumped on the deal when you did. That all said, I was trying to answer Tex's question from my point of view & my personal situation (which I suspected he may in fact be in a similar situation to mine): solidly middle class single guy, who is not in the real estate profession, and I'm someone who knows enough about purchasing homes that would get me into trouble. People with families and double incomes, or people who are of above average means financially can make suggestions, but I don't think that their situations are similar enough in my case to really apply all that much. My philosophy is buy a home that you want to live in for 5 years or more, have an actual need to have a house, and buy it because you actually want to live there, not as a spec home, unless, like I said, that is your profession and you have the capital and know how to do it without losing your ass in the process. I think that contributed to so many people being upside down in their homes a few years back. I'd be happy to be wrong though, and if I could learn something, great, but that was where I was coming from with my recommendations. Link to comment Share on other sites More sharing options...
Driver Posted June 20, 2017 Share Posted June 20, 2017 Sorry-- I left out some words that made it clear I was also agreeing with you-- I meant that I fully get the irritation at the mind-set some have that owning a home is an essential life step. Link to comment Share on other sites More sharing options...
The Choc Posted June 20, 2017 Share Posted June 20, 2017 I'd find it hard to go back to an apartment at this point. Even the stuff about the house that is "work" is alot of times enjoyable because you take pride in the results. Actually recently went in with my cousin and bought my grandmothers lake house. Link to comment Share on other sites More sharing options...
Guest El Chalupacabra Posted June 21, 2017 Share Posted June 21, 2017 Sorry-- I left out some words that made it clear I was also agreeing with you-- I meant that I fully get the irritation at the mid-set some have that owning a home is an essential life step.It's all good. I mean, owning a house is a worthy goal. And for a lot of people, it is indeed a smart financial movie as well as the most ideal situation if you are trying to start a family. It's just not on everyone's bucket list. Link to comment Share on other sites More sharing options...
Metropolis Posted July 15, 2017 Share Posted July 15, 2017 Renovations. You watch enough home design shows and you here people complain about living through a renovation. Well now I know. I took vacation this week so I could be home while we have our great room renovated. That and the room and the kitchen were repainted different colors. We were told five days and it looks like it will take at least another couple of days to finish. I'll share some pics when its done, but man I can't wait until this is done. A house can be a labor of love. Link to comment Share on other sites More sharing options...
monkeygirl Posted July 26, 2017 Share Posted July 26, 2017 yes. Renos don't seem like a big deal until you live through one. Things is, you never can be sure what to expect-you open walls and sometimes find things that were fine UNTIL you opened the wall, NOW, they have to be brought up to code. And there's so much that can happen on the contractor's end from the wrong product or size being sent and it's usually something that HAS to be done before the rest can continue... I told people my first husband worked for (contractor/remodeler) that they should expect to pay twice as much as the original estimate and count on it taking 3 times as long, in a major remodel. STILL, I'd rather own a home. When you do the reno, you get to make it YOURS Link to comment Share on other sites More sharing options...
Good God a Bear Posted July 26, 2017 Share Posted July 26, 2017 I feel you Metro. I decided to reno my kitchen. It has been a royal pain in the ass. New cabinets, countertops, backsplash, paint, flooring, appliances, etc. I had someone (aka my brother) convince me he would do the painting and backsplash and save me some money. I fought him because I knew what would ultimately happen and it did...he did half the work then got busy and couldn't finish. So here I am...painting and backsplashing... Anyway started the process in February. Still going. Only have the floors left though. Link to comment Share on other sites More sharing options...
Ms. Spam Posted July 28, 2017 Share Posted July 28, 2017 How hard is it to tile/backsplash? My ex says it's super easy and I can do it myself. My kitchen is very small but I want to update some things to enjoy my home a bit more. Link to comment Share on other sites More sharing options...
Recommended Posts