Home Buying & Real Estate Thread

[fahqu001]

Recent flip I did in San Diego

Before and after pic...


Finished pics...

 

I'm waiting for you to show me the way, sensei. lol I just moved to Mission Valley from Houston. Anyway, where exactly is that? One day when I'm bored, I wouldn't mind driving past it.

 

[sneaksoy]

of course, I purchased because it made more sense than renting, I`m just speaking in general though that the whole "American Dream" of buying a home is a sham, I dont believe in looking at the place you live as an actual investment, because there are so many intangibles you can't control. I view a home as a necessity where you have to do what makes the most sense financially opposed to holding a dream you will gain crazy equity or something.

Agree completely - The "American Dream" continues to be sold because financial institutions continue to make billions from home lending. "Homes are a great investment, buying a home will make you financially stable, home ownership is the key to long term wealth, etc" is all just marketing rhetoric from banks to spur on their own bottom line.

I am all for home ownership, I just don't like to see people jump into it before they're truly ready. I'm also not a proponent of small down payments and PMI (literally giving money away, it's the equivalent of renting) but every situation is different. Don't buy into "The American Dream of homeownership" before you're truly ready.

 

[super t1ght]

On the fha and pmi talk, i dont know the future but i had a really good experience personally. I bought my house feb 2012, put down 5% for my fha 30 year. House was 225k. Around feb 2015 i refinanced to a conventional 15 year, cut out the pmi. House appraised for 285k.
I actually pulled out 20k (cash out refi) with the intent to purchase a 2nd home but ended up deciding not to do it after a long, frustrating search and i changed employers which affected what loan if qualify for. Its cool how much my house has appreciated, and Im glad to cut out pmi, and will have my house paid off in maybe 12 years with extra payments. My monthly payment on my 15 year conventional is barely more than my 30 year fha was due to the pmi.

 

[capital sb]

Like I said please point me in the direction where people under the age of 30 are putting 20% down on a home without help from mommy and daddy. Statistics are showing that homeownership rates are dropping due to people not being able to save enough money for a down payment.

FHA and Conventional loans both offer loans with little money down. There are 0% and 3.5% Conventional loans . VA loans are no money down, I don't see anyone telling vets to stay away from them and they have been around forever .

As you see in this thread many people have used forms of assistance to acquire their property. Imo use of assistance to acquire a home does not mean you can't afford the monthly payments, nor does it mean we will foreclose on our homes.

 

[al audi]

Imo this of buying a house and gaining insane equity are long over lol, pretty much only people who were able to do that were the parents of White Baby Boomers who were able to get their homes dirt cheap with govt assistance on top of discriminatory practices that kept non whites from having access to these benefits this crippling their ability to build wealth. Its kind of sad they still sell everyone else the dream of "Buying a home being an investment". The only reason I even bought a house was because it cost me waaaaay less than renting, but if you are not getting a sweet deal and you factor in high property taxes and maintenance you gotta ask yourself is buying a home even worth it?

That's why more people our generation actually have no problem with renting.

 

[luckyluchiano]

On the fha and pmi talk, i dont know the future but i had a really good experience personally. I bought my house feb 2012, put down 5% for my fha 30 year. House was 225k. Around feb 2015 i refinanced to a conventional 15 year, cut out the pmi. House appraised for 285k.
I actually pulled out 20k (cash out refi) with the intent to purchase a 2nd home but ended up deciding not to do it after a long, frustrating search and i changed employers which affected what loan if qualify for. Its cool how much my house has appreciated, and Im glad to cut out pmi, and will have my house paid off in maybe 12 years with extra payments. My monthly payment on my 15 year conventional is barely more than my 30 year fha was due to the pmi.

How does that work? Doing FHA and then refi to a conventional loan to knock out the PMI?

First few yrs of a mortgage you are barely making a ding to the principle of the loan, I assume you made extra payments or something?

 

[sneaksoy]

Like I said please point me in the direction where people under the age of 30 are putting 20% down on a home without help from mommy and daddy. Statistics are showing that homeownership rates are dropping due to people not being able to save enough money for a down payment.

FHA and Conventional loans both offer loans with little money down. There are 0% and 3.5% Conventional loans . VA loans are no money down, I don't see anyone telling vets to stay away from them and they have been around forever .

As you see in this thread many people have used forms of assistance to acquire their property. Imo use of assistance to acquire a home does not mean you can't afford the monthly payments, nor does it mean we will foreclose on our homes.

I'm 23 and put 20% down on my house last summer with zero money from my parents. Sure it's not in NY/LA or some major market, but it can be done. Just need the patience and diligence to save if owning a home is something important to you.

Like I said, I really respect what you were able to do in acquiring your home and I think FHA and assistance programs can be good, but I would not advocate for putting less than 15% down unless you really really know what you're doing. VA loans may have been great in the 60s and 70s when the housing market wasn't inflated like it is today. At that time you could bank on home equity appreciation so the risk of having no money down was lesser. Like luckyluchiano mentioned though, it's a different market now. You can't bank on homes appreciating like the baby boomers once could.

 

[Los Angeles]

@ooIRON MANoo CALHFA

 

[edshoecator]

I'm 23 and put 20% down on my house last summer with zero money from my parents. Sure it's not in NY/LA or some major market, but it can be done. Just need the patience and diligence to save if owning a home is something important to you.

Like I said, I really respect what you were able to do in acquiring your home and I think FHA and assistance programs can be good, but I would not advocate for putting less than 15% down unless you really really know what you're doing. VA loans may have been great in the 60s and 70s when the housing market wasn't inflated like it is today. At that time you could bank on home equity appreciation so the risk of having no money down was lesser. Like @LuckyLuchiano mentioned though, it's a different market now. You can't bank on homes appreciating like the baby boomers once could.

Most loans can be had with as little as 3%. Why put so much down with the initial cost of moving in (appliances (some houses come with them), furnishings, etc.)

FHA loans been around forever.

It's more about the terms IMO.

Adjustable vs Fixed.

The former is the reason a lot of people lost homes. Magically, you can afford that 600k house when you're only paying interest.

To each his own though.

 

[super t1ght]

How does that work? Doing FHA and then refi to a conventional loan to knock out the PMI?

First few yrs of a mortgage you are barely making a ding to the principle of the loan, I assume you made extra payments or something?

I meant to say you need 20% equity. I was making extra payments but what really helped was my house appraising for 285k when i bought it for 225k 3 years prior. I still had room the pull out that 20k and still have 20% equity. In hindsight i wish i didnt pull the cash out since i ended up not using it for a 2nd home downpayment.

 

[super t1ght]

I dont think its wrong to buy a house with a FHA loan with pmi. Its not ideal but its still better than wasting money by renting. I know in some situations, renting is better. But if your house is going to appreciate, you have the income to not only afford your mortgage, but make extra payments, have money for homeowners insurance/prop maintenance/prop taxes, then why wait to buy? That is kind of a gamble that housing prices are going up in your area. Then refinance to a conventional and dont pay pmi anymore, once you have 20% equity.

 

[luckyluchiano]

I meant to say you need 20% equity. I was making extra payments but what really helped was my house appraising for 285k when i bought it for 225k 3 years prior. I still had room the pull out that 20k and still have 20% equity. In hindsight i wish i didnt pull the cash out since i ended up not using it for a 2nd home downpayment.

oh ok, so the equity is based on the appraisal? And that appraisal is diff than the property value right? Excuse the elementary questions, I`m not looking to do this as I have only been in my house a bit over a year, just want the knowledge for the future.

 

[fahqu001]

 

I'm 23 and put 20% down on my house last summer with zero money from my parents. Sure it's not in NY/LA or some major market, but it can be done. Just need the patience and diligence to save if owning a home is something important to you.

Like I said, I really respect what you were able to do in acquiring your home and I think FHA and assistance programs can be good, but I would not advocate for putting less than 15% down unless you really really know what you're doing. VA loans may have been great in the 60s and 70s when the housing market wasn't inflated like it is today. At that time you could bank on home equity appreciation so the risk of having no money down was lesser. Like @LuckyLuchiano mentioned though, it's a different market now. You can't bank on homes appreciating like the baby boomers once could.

Most loans can be had with as little as 3%. Why put so much down with the initial cost of moving in (appliances (some houses come with them), furnishings, etc.)

FHA loans been around forever.

It's more about the terms IMO.

Adjustable vs Fixed.

The former is the reason a lot of people lost homes. Magically, you can afford that 600k house when you're only paying interest.

To each his own though.

Never owned a home (military and move too much, so I'm scurred lol), but I know an ARM will sink a lot of people and I'd steer clear of them. For some savvy people that know what they're doing, it may be advantageous, but for the average Joe ... not so wise. Between that and rise in property taxes, many people have that WTF did I do moment, ultimately resulting in foreclosure, as you alluded to. At the end of the day, unfortunately, there are a lot of people that are just looking to make a sale to line their pockets whether it's the auto or home selling industry.

 

[capital sb]

I'm 23 and put 20% down on my house last summer with zero money from my parents. Sure it's not in NY/LA or some major market, but it can be done. Just need the patience and diligence to save if owning a home is something important to you.

Like I said, I really respect what you were able to do in acquiring your home and I think FHA and assistance programs can be good, but I would not advocate for putting less than 15% down unless you really really know what you're doing. VA loans may have been great in the 60s and 70s when the housing market wasn't inflated like it is today. At that time you could bank on home equity appreciation so the risk of having no money down was lesser. Like luckyluchiano mentioned though, it's a different market now. You can't bank on homes appreciating like the baby boomers once could.

Did you put down 60K+? This is our reality in major metro areas and 60K is on the very low side. Even with 15% down you still have PMI , so I don't get this down talking on loans sub 20% down.

I would have needed to put down close to 75K on my home for 20% down. Not sure where I could get that from only 6 months out of college. Rent would have been about $2700/mo. I chose to buy using assistance.

The issue comes in when people get ARMs and buy more house than they can afford. That is what caused the market crash. Appreciation still exists, it is around 2% per year on average thanks to inflation. Homes are never going back to the pre 2000s pricing, the reality is that home prices will continue to rise. Yes there will be corrections here and there, but overall it is an uptrend. Here in the DMV area homes are back to the prices before the crash, some areas higher than pre crash. I don't see this changing anytime soon.

 

[flyny]

I don't understand how any regular working college grad in their 20s will be able to put 60k+ on their home. That doesn't seem realistic to me. Taking into consideration that a lot of times, those folk have student loans to pay back, high rent prices that set them back, plus other expenses?

 

[al audi]

I don't understand how any regular working college grad in their 20s will be able to put 60k+ on their home. That doesn't seem realistic to me. Taking into consideration that a lot of times, those folk have student loans to pay back, high rent prices that set them back, plus other expenses?

did someone say that in here? or somebody has done that in here? ineeda to read the last few pages.

 

[SneakerProSr.]

If you want to buy a house move to Texas.

Great value and damn near guaranteed appreciation.

4 years ago I was scared kept renting then I bought a house at the start of August this year.

If I bought 4 years ago I could have sold my house and pocketed 60K.

Two of my co-workers literally sold their houses for above asking price in about week.

I can't speak for everyone but here you are an idiot if you keep renting.

Hell I closed on my home on July 31 this year and if you want the exact same house in my subdivision the asking price is 20K more from what we paid.

The apartments I lived in 4 years ago have jumped in price 150% in that time frame.

Companies are flocking to Dallas for the tax benefits and in my area more Fortune 500 companies have moved here than I can count.

 

[fahqu001]

If you want to buy a house move to Texas.

Great value and damn near guaranteed appreciation.

4 years ago I was scared kept renting then I bought a house at the start of August this year.

If I bought 4 years ago I could have sold my house and pocketed 60K.

Two of my co-workers literally sold their houses for above asking price in about week.

I can't speak for everyone but here you are an idiot if you keep renting.

Hell I closed on my home on July 31 this year and if you want the exact same house in my subdivision the asking price is 20K more from what we paid.

The apartments I lived in 4 years ago have jumped in price 150% in that time frame.

Companies are flocking to Dallas for the tax benefits and in my area more Fortune 500 companies have moved here than I can count.

People should just move to Texas because it's one of the best states to live. Ain't for some, but it's definitely for me. I just moved from Houston because I had to, not because I wanted to. 

 That said, it's not the prettiest, but there's a ton of opportunity and people mind their damn business 

 

[al audi]

My cousin lives in Dallas, they built they house from the ground up. Dallas gets tooooooo gotdamb hot though.

 

[capital sb]

did someone say that in here? or somebody has done that in here? ineeda to read the last few pages.

Yes sneaksoy is suggesting that people should just grind and drop that 20% on a 350K-500K home in their 20s. Not really sure how it's possible to save up 60K-130K in a few years, but that is the suggestion.

Longer you wait the more prices increase and the longer you must save,

This is where I wanted to live potomac yards, crystal city area lol probably never will. All of the lower price homes are studios or condos sub 1200sqft.

 

[al audi]

Yes sneaksoy is suggesting that people should just grind and drop that 20% on a 350K-500K home in their 20s. Not really sure how it's possible to save up 60K-130K in a few years, but that is the suggestion.

Lmao good ol NT

I guess if you majored in a REALLY good field

 

[eugenile gts]

http://www.zillow.com/homes/for_sal...502953,37.117621,-122.13192_rect/10_zm/0_mmm/

thats in san jose--mind you SF area prob is worse and you get even less for your money and an even older house, anyways in SJ any decent home in good neighborhoods is easy 700K+ while bad neighborhoods in the notorious east side is still $500K, these should only show single family detached homes. no condos or townhomes just beause thats whatI'm looking for. so folks saying i have to save up $140K 20% downpayment to avoid PMI, plus i have to set money aside for closing cost, property tax if not impounded, and other misc. when and how am i just gonna get $140K, that downpayment is some of the homes people posted here in other states that have been remodeled with nice big yards.

its very discouraging to say the least. I'm in my 30s and a lot of my peers who live here simply cant afford to buy even if they wanted to. Even those with college educations. Even buying a $500K house, which means it will be crappy and dated that definitely needs to be remodeled or fixed up in a lot of ways, in a not so good neighborhood. thats $100K downpayment 20%. even those making 100K a year will struggle or not even be able to afford a home here. You prob need dual income both making about $100K a year (200K+ combined) to play ball.

a lot of folks here still live with their parents, simply just accept the fact they will rent forever, or move out of their parents only to move in a house with other friends renting a room for $500-600 a month just to say they moved out of their parents. Rent around here for a 2 bedroom is easy $2000, and 3+ or a house to rent is easy 2500-4000+ thats some of yall mortgages if not more for the big *** house and lot.

so even if i was able to pull 20% out my *** lol on a $600K house, on a 3.8% interest 30 years. which lets say i save this amount by the time im 45 years old lol. based on the average property tax, insurance, my monthly mortgage will be near $3000 a month, not including utilities and other expenses. and say i have 2-3 kids by then. thats paycheck to paycheck and if either myself or wifey lose our job, we done. definitely no living comfortably in those conditions

so is this real life fam? if so.. im dead fam..

 

[ekrev98]

I'm waiting for you to show me the way, sensei. lol I just moved to Mission Valley from Houston. Anyway, where exactly is that? One day when I'm bored, I wouldn't mind driving past it.

If I weren't leaving town for the holidays I would've given you a tour. This property is in Del Cerro (near SDSU). I'm closing escrow on another property in the same area and I should be getting started the first week of 2016. I'll be sure to post some pics.

If you have free time and you want to meet up, I'll be more than happy to talk real estate/flipping and possibly provide opportunities for you. Just PM me your info and we'll get together.

 

[damokunasenshi]

Question guys,
Right now I'm renting out a place with a buddy. But I've been looking for a place to buy for a while. Haven't found a home I like at all in my area. But I found a 1 bedroom condo w/ garage that got foreclosed on(dirt cheap). Would it be a smart decision to purchase this condo( it would be cheaper to buy then what I'm currently paying in rent)

I figure If anything I could rent it out maybe turn it into investment property? Any advice would be helpful.

 

[yeah]

It would be a smart move only if you have money in the bank. Foreclosed properties are hit or miss... The person may have taken great care of it, or they may have stopped cleaning as soon as they got the eviction notice. You may have to put five, ten, twenty thousand dollars into the space before its even livable. Condos can also come with association fees that are separate from the mortgage. That is a constant expense that will probably not go away, so find out if there is a HOA and remember to consider the fees when budgeting.

Check out the condo. Get it inspected to the best of your abilities. But if the water and other utilities are shut off, as is common in foreclosures, and you aren't able to have every inch of that space inspected, don't do it. The monthly mortgage may be cheaper than renting, but the other out of pocket expenses that you will incur during and after the homebuying process will bankrupt you.