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Sophia posted:- Secure (actuarial, hard to find people to do it who want to live in rural Indiana) You seem a lot better off than people that post the same questions in this thread, including me. With 25% down and a secure job, I don't have much else to argue. Only thing to think about are limited of the HOA (Like I could never live in one that doesn't allow satellite tv), and the single bit, but it seems you got that covered.
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Feb 23, 2012 06:19
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Cmdr. Shepard posted:I don't think so, because it was a 401k that rolled into an IRA. By having to pay tax on it, it's as good as if I never paid into my 401k at all. The fact that I'm 28 years old with no retirement account right now (except for a government pension) is a story for another day I guess. I'm just hoping that when I retire my pension will still be there. You realize that you have to pay taxes on 401k money when you take it out too, right? I just can't believe that someone could be naive enough to think that they would be able to get away tax free for something like a house payment.
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Feb 23, 2012 11:39
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Chin Strap posted:You realize that you have to pay taxes on 401k money when you take it out too, right? I just can't believe that someone could be naive enough to think that they would be able to get away tax free for something like a house payment. As a Canadian, I find this comment a little bizarre, but mainly because we're allowed to take withdrawls from our RRSP's (A tax-deferred Retirement Savings Account) (up to 25k) specifically to make a downpayment on a new house. The catch being that two years after the year of purchase, you have to start repaying it in equal instalments over the next 15 years. Failure to do so causes you to take that years instalment into income. It was specifically designed to help individuals purchase new homes and still encourage retirement savings. I would have just assumed that the US would have had a similar program, although I would have definitely checked it out prior to making the draw. Edit: Also, I thought you could transfer your IRA to a solo 401k, and then borrow against that. I'm guessing the contribution limit of the Solo 401k is limited to a percentage of Self-employed income, and not to a percentage of Employment Income though? If not, that would be an easy move to avoid taking a taxable draw. Fiesty Francis fucked around with this message at 13:09 on Feb 23, 2012 |
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Feb 23, 2012 13:03
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Fiesty Francis posted:As a Canadian, I find this comment a little bizarre, but mainly because we're allowed to take withdrawls from our RRSP's (A tax-deferred Retirement Savings Account) (up to 25k) specifically to make a downpayment on a new house. The catch being that two years after the year of purchase, you have to start repaying it in equal instalments over the next 15 years. Failure to do so causes you to take that years instalment into income. I didn't talk about loans, and neither did he. He talked about cashing it out and just outright using it. We have 401k loans in the US that can be used for a similar purpose as what you talk about. That isn't the same as thinking you can just get money tax free.
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Feb 23, 2012 13:10
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Advent Horizon posted:I have to ask - why would you liquidate an IRA to fund a down payment? At the moment, it probably doesn't make sense due to the low rates for borrowing (and anticipated higher rates of returns in the market coming up). However, 10 years ago it probably made perfect sense. 10K in an IRA earning 5 or 6% is probably a wash (or close to it) with borrowing 10K at 5 or 6% but at the rate home prices were increasing (>8% a year) the house was a better investment.
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Feb 23, 2012 15:14
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Dbhjed posted:Renting  Really? I haven't found this to be true in the rentals I've been in that had yards.
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Feb 23, 2012 15:45
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Splizwarf posted:
I think his post is more geared to apartments more than a duplex or similar.
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Feb 23, 2012 15:54
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I've rented a home where the lawn care was included. The chick who ran the rentals know someone who just loved to mow the lawn, and had another friend take care of plowing the driveway and rural road to the home in a timely fashion just after a snow storm. I've seen a lot of house rentals where this was included, or it is part of the HOA/Community and therefor included. I think some places know people hate doing yard work.
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Feb 23, 2012 17:07
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If you rent a Mother-in-Law apartment the owners probably mow their own lawn.
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Feb 23, 2012 17:20
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Advent Horizon posted:If you rent a Mother-in-Law apartment the owners probably mow their own lawn. Just checking craigslist in Northern Virginia there are several homes listed that include yard work, so it's not just those doing it. I guess it's a selling point, at least in this area.
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Feb 23, 2012 17:49
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Sophia posted:Edit: And don't let this post make you think I've already decided; I'm just answering devil's advocate-style to your questions. You raised a good point about the length I plan to live there. Yeah, you sound like you're in a pretty good situation for that Sophia. Also, geez, only $80 a month for snow removal / yardwork? They must get a solid deal by contracting the whole complex, because let me just say that it is nowhere near that cheap out here.
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Feb 23, 2012 21:36
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Kalli posted:Yeah, you sound like you're in a pretty good situation for that Sophia. Also, geez, only $80 a month for snow removal / yardwork? They must get a solid deal by contracting the whole complex, because let me just say that it is nowhere near that cheap out here. Yeah, I'm guessing so, but it's also that the guy that does it really likes to mow so he does it at a cheaper price than others might. Plus Indiana is nice and flat so you can just set it on forward and go for a long time before stopping or turning around. 
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Feb 24, 2012 00:57
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While that does seem like a pretty good rate, I think the general premise is invalid (that a benefit of HOA is not having to mow your own lawn). Private homeowners (and renters) unencumbered by an HOA can also hire landscaping companies. You can hire someone to shovel your driveway, too. It's all just a matter of cost. Personally, I'd far rather hire myself, than have an HOA with all the uncertainty and bylaws and legal helplessness that comes with them, just so someone else spends the fifteen minutes on the phone it takes to arrange for lawnmowing services.
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Feb 24, 2012 01:34
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Residency Evil posted:No, it was her answer to the question I asked. I was curious because when I've run some numbers for my area through the NYT calculator, it always comes out to approximately 5-6 years or so on rent vs buy. She made it sound like a no-brainer. I'm not saying that it's a bad calculator, but the results it gives of the time period to break even are ENTIRELY based on the home appreciation rate, which cannot be predicted (rent increases also factors in as well). It is a good comparison tool for comparing expenses of renting vs buying, but it is not a crystal ball. Historically speaking a small appreciation that barely beats inflation is a reasonable guess, but ask anyone who bought in 2006 how that worked out for them.
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Feb 24, 2012 02:25
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Yeah "historically speaking" might apply (or it might not*) for property held for decades. It has virtually no bearing whatsoever on property held for 3-5 years, and especially not an individual property held for 3-5 years in a particular market. *it doesn't: see, Japan, 1980-2010. Also: Empire, Rome: 200AD to 1200AD.
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Feb 24, 2012 02:30
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So, just went to a first-time housebuyers seminar at work (we're not looking right now, but wanted to learn!) and...we pretty much knew everything already. The agent (mostly talked about buyer's agents of course) was pretty good, some new stuff, some things we already knew, good to have an agent up front, agents split the 5% etc etc. The attorney gave a bunch of good info (title insurance awesome, MERS not necessarily going to poison every lien and deed ever, at least in MA). The lender was complete and utter bullshit, saying that loans at 5% are fine, you just need SPMI, 10% lets you do a double mortgage to avoid PMI totally, and...you could put 20% down. I guess. It was just complete bollacks and I'm wondering whether all lenders are like that (not at all looking out for the buyer's overall best interest re: buying at all, how much to put down, how expensive a house to get). Are there any that *aren't* like that?
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Feb 24, 2012 02:47
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silvergoose posted:The lender was complete and utter bullshit, saying that loans at 5% are fine, you just need SPMI, 10% lets you do a double mortgage to avoid PMI totally, and...you could put 20% down. I guess. Lenders make more money the shittier your loan is. Most lenders are like that, there are some up front mortgage lenders out there. The entire property buying business is a loving racket.
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Feb 24, 2012 03:47
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How do credit unions compare? Ours is pretty drat big and in some regards seems to act like a bank, but it seems they'd generally *try* to be better...
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Feb 24, 2012 06:53
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Well, ours told us that they would be overjoyed to help us, and if we wanted to buy a house we'd need to deal with their real estate branch, which was about an hour and a half away, in person. Where all their agents were, implying that we'd need to talk someone into driving an hour and a half up every time we wanted to see a house, which didn't suggest a good client/realtor relationship. So I quit caring how good they were right there. Otherwise they've been better than almost all banks, although the last bank I had was a community bank founded on the principle of eliminating bullshit fees, so it's stiff competition.
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Feb 24, 2012 14:04
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skipdogg posted:Lenders make more money the shittier your loan is. Most lenders are like that, there are some up front mortgage lenders out there. The entire property buying business is a loving racket. Well, so, okay: here is a more specific question. In the greater Boston area, any recommendations for lenders to talk to (eventually, not right now)? I don't want to work with dicks trying to sell me on lovely loans.
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Feb 24, 2012 15:24
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I'm so confused right now. I live in the Metro Atlanta area and put in an offer of $115K on a foreclosure that had sold for $150K at the height of the boom. The offer was accepted. I had it inspected and discovered that it needs $6500 worth of repairs, which my realtor is trying to negotiate off the price. I decided that if I couldn't get at least a major concession, I would terminate the contract. A few minutes ago I heard from my lender. The property appraisal came in at $80K.  I'm baffled. Except for that one big repair, the home inspector said the place was in really good shape, and he was shocked by how cheap it was. I've driven around and talked to people, and the neighborhood seems very safe and well-established, though not ritzy at all. The county's schools are some of the best in the state. This is my first house purchase. Is any reason for such a huge discrepancy? Am I missing or overlooking something really obvious? I don't really know what to do next, either. If the bank won't move, I certainly don't want to buy so high above the appraised value. And if they do move, is that just an opportunity to buy a house that I like for really cheap, or am I heading into some kind of danger zone? I just don't know what's going on 
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Feb 24, 2012 17:18
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Blue Scream posted:I'm so confused right now. You have the chance for an even better deal because the bank realizes no one will be able to get a loan with the appraisal. The only way you would be able to buy that house would be in cash or with a massive downpayment. To get 20% LTV you'd need to put in around 50k. I know what I'd do next. I'd revise the bid and then move on if the bank said no. I don't know what situation would cause the bank to not sell the house. Usually that's the realm of sellers who can't afford or are for some reason offended by the low appraisal.
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Feb 24, 2012 17:27
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Blue Scream posted:I'm so confused right now.
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Feb 24, 2012 17:58
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The Noble Nobbler posted:I know what I'd do next. I'd revise the bid and then move on if the bank said no. I don't know what situation would cause the bank to not sell the house. Usually that's the realm of sellers who can't afford or are for some reason offended by the low appraisal. Yeah, now that I've had a chance to wrap my head around the price drop, that's my plan. The bank might just walk away and hope they get another buyer whose lender will give a higher appraisal. But I'm already under contract and am willing to get this property out of their hair. It's not like they have a sentimental attachment to it. Oh well, either I'll get an amazing deal or I won't. Que sera sera. (I'm trying not to get excited by thinking about what I can put the saved money towards. Don't count your bathroom renovations before they're hatched, guys.)
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Feb 24, 2012 18:56
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We were in a similar situation, appraisal came in exactly 30k below what we'd agreed on. The seller dropped the price because nobody in this market is going to put more cash down to buy a place for over the appraised value.
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Feb 24, 2012 18:59
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Blue Scream posted:The bank might just walk away and hope they get another buyer whose lender will give a higher appraisal. I was under the impression that you as the buyer had the option to decide whether the appraisal was made public. When we almost bought a house, the seller wasn't just handed a copy of the appraisal (which figured because it was paid for out of pocket by us), they had to bargain for a copy of it. Another part of the bargaining (on the way out this time) was whether we made the appraisal public, because if we did it would have to be published in any future listings of the house, but if we kept it private, then the next prospective buyer would have to get one done, presumably after the owner tried to sweeten up the parts that were flagged in the appraisal we had gotten. Is that a state-by-state thing?
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Feb 24, 2012 19:32
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Splizwarf posted:I was under the impression that you as the buyer had the option to decide whether the appraisal was made public. It might be. My realtor told me that appraisals weren't public--she didn't mention anything about giving me the option to make it so.
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Feb 24, 2012 19:53
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I think it is a state-by-state thing. Have you actually read the appraisal? You should be able to find out exactly why the number came in where it is, and it should mostly be based on comparable properties recently sold in the same area, plus the condition of the property itself, plus some math to factor in various trends. There really shouldn't be any mystery about why an appraisal number is what it is. You might not get the house if the bank gets a cash offer above the appraised value, but a cash investor would have to be a fool to offer more than an appraised value. And unless your particular appraisal is wildly off the mark, regardless of whether it's public or not, other offerers should be coming up with similar numbers. I'd guess there's a pretty decent chance you can pick up the house for $80k.
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Feb 24, 2012 21:14
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Leperflesh posted:I think it is a state-by-state thing. The lender sent the appraisal along after my initial panicked post, so yes, now I have read it. Honestly, the appraiser didn't even seem to catch some of the problems with the house that the inspector did--there was no mention of the thing that's gonna cost $6500 to fix. It mostly came down to comparables, as you said, which were different than what my realtor told me. She'd told me that one house nearby sold for $92K and another for $120K. No mention of the two that sold for $80K and $74K. (This makes her sound bad, but in all fairness she's otherwise been pretty stellar this whole time. Trulia's comparables are all way higher, too.) It's interesting, in that this is an older neighborhood ("my" house was built in 1978) right next to a brand new subdivision where they're building mini-McMansions that are selling between $300-400K. e: Just heard back from the bank. They suggested I could either put down more in cash, or I could apply for Homepath financing instead, because that doesn't require a property appraisal at all!  Yeah, no thanks. I should hear for sure by Monday, but I'm pretty sure I'll get the house for 80K. Blue Scream fucked around with this message at 23:22 on Feb 24, 2012 |
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Feb 24, 2012 21:43
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We just ran into the same problem on a property we were really interested in. We were under contract at a price we were comfortable with, had started packing and had exercised an early termination clause in our lease. Then yesterday we found out that the appraisal came in about 7% below our agreed-upon purchase price. Unfortunately this is a large chunk of change because it's a SFH in a major city and we don't want to add cash without getting equity. It's frustrating because it makes you feel like an idiot for overbidding. On the other hand, due to the low sales volume during this time of year (and due to the market in general) it's possible the lack of comps caused the appraisal to come in too low. Also, the appraisal is formulaic and doesn't necessarily take into account all of the features of the house we liked. Of course the realtors on both sides are saying to use another lender and another appraisal company. But who wants to go fishing for an appraisal to justify a higher purchase price? I said reduce the price or we walk. I think we will walk.
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Feb 25, 2012 05:05
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I have a pretty unique question, and I’m just looking for some feedback on an idea I had. I can't tell if it's a really good or really retarded idea. In the next few months, my parents are selling about $3MM worth of undeveloped subdivisions and looking to retire. They’re planning on doing a 1031 exchange in order to avoid paying capital gains tax—meaning they are going to be buying some other properties elsewhere with a portion of the money (mostly rural land on which to live)—and investing the rest. I myself have been considering buying a home and floated the idea of them “buying” the home for cash and selling it to me via contract for deed.* My parents really liked the idea, as they’d avoid paying taxes on whatever the purchase price of the house is** and they’d get a pretty reasonable and steady return on their money. I like the idea because it keeps the money in my family, and I could probably get a bit more house for my money if it’s bought with cash (even if it’s not my own). Is there anything I’m overlooking that would make this a retarded idea? I’m aware of standard “do never buy”. I have some mild concerns of mixing family and money, and I know things can happen to sour a relationship--even (especially?) between parents and children--but I would be very serious about paying on time, and probably pay it down fairly aggressively, and my parents aren't the type to try to control everything. Obviously we would talk this all over with a very good accountant. *A contract for deed is kind of like a mortgage, except that it doesn’t involve a lender—it’s just an agreement between a buyer and a seller. The seller agrees to deed the property to the buyer after a certain amount of money has been paid based on a certain schedule and at a set interest (sound familiar?), but the seller remains the legal owner of the property until that time. The buyer can typically “assign” the contract (roughly the same thing as selling the house while it’s still under mortgage) or walk away and forfeit all the money s/he has already paid. I don’t know what kind of closing costs there would be for a contract for deed, since there wouldn’t be agents or anything, as far as I’m aware? Unless I’m misunderstanding it, the closing costs would only occur when the house is bought by my parents. **We're aware they'll pay taxes on the payments I'd make to them.
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Feb 26, 2012 08:19
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JimTheSarcastic posted:I like the idea because it keeps the money in my family, and I could probably get a bit more house for my money if it’s bought with cash (even if it’s not my own). My main issue is you trying to get "a bit more house". You don't need a bit more house (trust me, I've got more house than I can use and all it does is add to the utility bills). Other than that, the one downside to not getting a mortgage is if you stop paying, it will cause problems. Either they lose by letting you stay in the house for free or you lose when they take the house back and all of your paid in money is defaulted.
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Feb 26, 2012 19:05
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Month 7 of my short sale adventure is winding down. On tuesday we told the seller's agent we needed a contract by friday or we were walking away from the deal. BoA didn't even deign to tell me to gently caress myself.
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Feb 27, 2012 21:45
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Any recommendations on how to estimate how much a house may sell for? I'm currently basing the value of my home off of the Zestimate but I'm going to assume this is a bad idea. I'm not in any rush to sell the home if that matters.
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Feb 28, 2012 14:15
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Orange_Lazarus posted:Any recommendations on how to estimate how much a house may sell for? I'm currently basing the value of my home off of the Zestimate but I'm going to assume this is a bad idea. I'm not in any rush to sell the home if that matters.
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Feb 28, 2012 15:00
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Orange_Lazarus posted:Any recommendations on how to estimate how much a house may sell for? I'm currently basing the value of my home off of the Zestimate but I'm going to assume this is a bad idea. I'm not in any rush to sell the home if that matters.
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Feb 28, 2012 16:54
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Orange_Lazarus posted:Any recommendations on how to estimate how much a house may sell for? I'm currently basing the value of my home off of the Zestimate but I'm going to assume this is a bad idea. I'm not in any rush to sell the home if that matters. Around here (Northern Virginia) a quick rule of thumb is, assuming good condition, you can estimate a sale price by adding 10-15% to the current year's tax assessment. At least that's what my wife and I have been seeing over the past few months.
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Feb 29, 2012 03:36
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Or not. Apparently i'll have a contract to sign on monday.
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Mar 2, 2012 21:22
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How can I manipulate the system to utilize my wife's credit and my income? Long story as short as I can make it: I bombed my credit by essentially up and moving from one state to another in order to get back to my home state, to be with my wife. It's not that I have debt, I have a 300 dollar credit card and a few things that people claim that I owe them. I've attempted to make all of these things right, but one creditor is unwilling. I'm in the process of fixing all of those. Time is not on my side. My wife has good credit. She is taking a leave of absence from work, so from a lender's perspective she has zero income. The reason that she is taking a leave from work is because her grandmother is old and in need of care. Her grandmother needs a home. It is best for all parties involved if her grandmother comes to live with us. The time "crunch" is because her grandmother is in an assisted living situation, now. They have deemed her unable to live by herself, now. Option 1 is for grandmother to move in with us. Option 2 is to move to a nursing home. No one involved wants her in a nursing home. My wife is a nurse and is qualified to care for grandmother... all things point towards the correct move being to our home. I have disputed the things that are wrong on my credit and paid the ones that were not, but it is not an overnight process. In order for my wife to be able to use my income, I need to be on the mortgage. In order for me to be on the mortgage, I have to qualify. I'd love to rent, but my wife and I have 3 kids, her brother (my best friend) is in a rough spot and is staying with us, and adding grandmother on top... we need space. No one around us is renting anything big enough for less than 3500 a month and we don't want to spend that much. We have found a home within our price range that will be perfect. We have asked the owner for a lease-option, in an attempt to get all of my poo poo fixed, to no avail. They did not even respond. We have looked for lease-option properties, but again... nothing big enough. Time is the most important thing. I expect in 3 months my credit will be in repair, and according to hsbc's "simulator" once the incorrect things are removed, my credit will be near perfect. It's just... I don't have 3 months. If we do wait that long, grandmother will have to go into a nursing home. If she goes in, it will cost her nearly 200,000 dollars. That is a lot of money to waste. Is it possible to get this solved?
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Mar 5, 2012 15:30
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Where I live, month-to-month leases are quite common. Can you just find a house to rent for 3 months and then go from there? Maybe rent a smaller house than you think you "need", make kids share a bedroom and brother bunk with grandma for 3 months, that sort of thing? I mean it won't exactly be pleasant but it would only be temporary.
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Mar 5, 2012 15:35
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