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That's interesting has it stayed optimistic for the last 400 pages? I guess it will until people can't sell.
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Apr 2, 2017 14:43
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I haven't done as full of a walk through, but having followed along for most of the thread, advice generally leans towards making home buying as sound of a financial decision as possible. Savings for down payments, emergency funds, general maintenance. I think a lot of people lament how some markets have gotten, but if you are doing the right things finance wise, it may protect the homeowner a little more from market changes. Never 100% of course, but there has never been a lot of "the markets will go up forever" at least in this thread.
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Apr 2, 2017 15:55
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Nobody has been a total Polyanna the entire time, in '09 after the crisis there was a lot of "wait, wait, prices still are correcting," and although some people bought (they had to for whatever reason), the sentiment actually seemed to brighten when prices had really corrected downwards and were nearing the bottom. It's nice to have hindsight, but it does seem to be a pretty savvy group of people making suggestions in here. #macro
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Apr 2, 2017 16:43
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do never buy has certainly dried up that's probably because fewer of us are upside down / at a loss on our homes 
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Apr 4, 2017 16:59
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I also like to think the rising prices and more competitive markets in some areas are adding resistance for people who would previously see signs and think "poo poo I can afford that, I should buy a house!" Then again, I do see people on Reddit who, without even actively looking for a home, happen upon an open-house on the drive home and put in an offer on the spot.
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Apr 4, 2017 19:24
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I think a big part of it is that, ten years ago, there was just a massive cultural expectation that what you do in life is grow up, get married, and buy a house. Two generations did that and built generational family wealth that way, and so a ton of people in their 30s and 40s today found themselves intensively pressured by parents to buy, and their peers were buying, etc. When this thread was in its heyday, we'd get people coming in on a weekly basis who, once they answered a few questions, revealed they were clearly in no position to be buying a house, or were spending way too much, or were buying entirely on the expectation of making money. Nowadays, everyone remembers the housing crisis, and with prices more or less fully recovered, a lot of folks are thinking another downturn is at least possible. We just don't get those bright-eyed neophytes coming in talking about how they're totally going to afford a $500k house on a $70k annual salary because they can get a 3% down FHA loan and will make $100k in profits in five years so they can just sell whenever and it'll be great! So, Do Never Buy is no longer the constant refrain of people trying to instill some basic caution and financial common sense in people who don't know what they're doing. I can't remember the last time we more or less unanimously told someone looking to buy that they absolutely should not be buying. Instead we're usually just giving people some advice about the details but they're still probably OK to buy a house, provided they do X Y and Z.
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Apr 4, 2017 19:30
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I feel like markets are getting more competitive. There's been about 5 or 6 homes on my street for sale recently that all sold within days, whereas I bought mine 18 months ago it had been sitting for quite a while. They're all selling for 60k more than I paid as well, looking forward to seeing how much my property taxes rise next year...
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Apr 4, 2017 19:33
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The opposite happened on my block. Last year, a few houses sold within days of being put up. But last fall/winter, there were two houses that sat for sale for 2+ months each.
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Apr 4, 2017 19:35
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Leperflesh posted:Nowadays, everyone remembers the housing crisis, and with prices more or less fully recovered, a lot of folks are thinking another downturn is at least possible. We just don't get those bright-eyed neophytes coming in talking about how they're totally going to afford a $500k house on a $70k annual salary because they can get a 3% down FHA loan and will make $100k in profits in five years so they can just sell whenever and it'll be great! Man, I don't get these people at all. My wife and I are finally making really good money, and we are agonizing about whether we can afford a 225K house in a neighboring town. Meanwhile I have some real scum-bum friends buying 400K former crack dens because they are close to downtown, and I don't know how the gently caress they plan on paying for anything.
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Apr 4, 2017 19:36
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ElGroucho posted:I don't know how the gently caress they plan on paying for anything. I mean not to be rude but you can't really know what their books look like. Even among my best friends (very open about matters of finance) the exact size and scope of peoples' wealth and priorities aren't totally clear to me.
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Apr 4, 2017 19:53
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That's true, I don't know who much the Apple store at the mall pays
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Apr 4, 2017 20:08
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Ghostnuke posted:I feel like markets are getting more competitive. There's been about 5 or 6 homes on my street for sale recently that all sold within days, whereas I bought mine 18 months ago it had been sitting for quite a while. They're all selling for 60k more than I paid as well, looking forward to seeing how much my property taxes rise next year... What is the thread consensus on extremely competitive markets? I recently relocated to Denver CO for work and the housing market here is insane. I realize that it's due to so many people moving to one place, but the prices are rising so fast it seems unsustainable. I'm in a good place financially but it seems like you need to enter a bidding war for any desirable house at the moment.
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Apr 4, 2017 20:14
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Just over a week till my closing, is it okay to have a nervous break down yet?
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Apr 4, 2017 20:16
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Photex posted:Just over a week till my closing, is it okay to have a nervous break down yet? just relax and let the sweet darkness of crushing debt slide over you
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Apr 4, 2017 20:20
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hot sauce posted:What is the thread consensus on extremely competitive markets? I recently relocated to Denver CO for work and the housing market here is insane. I realize that it's due to so many people moving to one place, but the prices are rising so fast it seems unsustainable. I'm in a good place financially but it seems like you need to enter a bidding war for any desirable house at the moment. My wife and I just went under contract on a house in Denver, and yep it's pretty crazy. What I've found is that $350k - $400k is pretty much the bottom price for any house within city limits regardless of the quality, location, etc., which means that you have to do a lot of research and evaluation to see what's actually worth it in that price range. In general it doesn't actually matter, because anything under half a mill is going to get scooped up by a cash offer if it's anywhere near desirable, anyway. If you are in the market for something going on the other side of $500k, you'll find it to be a little easier and less competitive, but houses stay on the market for a week or two max in most cases. As to whether the pricing right now is sustainable or not, who really knows? I was feeling a lot of trepidation going into our house search just based on the outward appearance of things returning to pre-2008 levels, but in actuality I think it's significantly different. The price surge is being caused by a historic inventory shortage instead of easy/predatory lending, and I don't think that Denver is going to start shrinking any time soon, even if the marijuana industry kicks the bucket. A lot of what is driving people here is tech, and that's probably not going anywhere any time soon. The huge influx of people also means that the market is getting propped up by people bringing money with them from out of state, but at the same time wages in tech here are below the national average. As wages rise, it could be that cost of living will go up with it and continue to prop the market up even as the growth slows down and inventory grows. So long story short, yes it's a very competitive market but there may still be room for growth or the bottom may fallout tomorrow...?
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Apr 4, 2017 20:33
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So I know in the past that a lot of us have said that additional principal payments are silly when your interest rate is less than 4%, but I've still been making extra $500/mo principal payments because I just loving hate all of the debt. Is anyone else in that boat? Those extra payments would be for nothing if prices suddenly tanked or if I lost my job and couldn't keep making payments, but if the point is to actually own a house outright eventually then I'd rather be done in 10-20 years than 30
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Apr 4, 2017 21:37
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QuarkJets posted:So I know in the past that a lot of us have said that additional principal payments are silly when your interest rate is less than 4%, but I've still been making extra $500/mo principal payments because I just loving hate all of the debt. Is anyone else in that boat? Those extra payments would be for nothing if prices suddenly tanked or if I lost my job and couldn't keep making payments, but if the point is to actually own a house outright eventually then I'd rather be done in 10-20 years than 30 Yeah, I always make extra so that I'm not paying for 30 years.
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Apr 4, 2017 21:39
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You could probably invest that money somewhere else and make more money than you're saving by paying down the principle on your house.
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Apr 4, 2017 21:39
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HEY NONG MAN posted:You could probably invest that money somewhere else and make more money than you're saving by paying down the principle on your house. Yes but you can live in a paid off house. Would you suggest people take out a home equity loan to purchase investments? (Like the bank that loaned you the money you can't lose!)
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Apr 4, 2017 21:47
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I don't think I was suggesting that, no.
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Apr 4, 2017 21:49
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HEY NONG MAN posted:You could probably invest that money somewhere else and make more money than you're saving by paying down the principle on your house. On what time scale and while paying what amount of taxes, though? I thought that the long-term investment return outlook was much more like 5% right now, the guaranteed 4% return for paying off a mortgage sounds pretty appealing to me.
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Apr 4, 2017 21:54
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Listen to this dude who predicted the 2008 crash talk about the current economy https://www.youtube.com/watch?v=k6y35aO_fpU. (we still bought anyway.  )
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Apr 4, 2017 22:01
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Photex posted:Just over a week till my closing, is it okay to have a nervous break down yet? I'm right there with you. Closing on the sale of my current place in 2 days, and on the purchase of my new place 4 days after that. 
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Apr 4, 2017 22:25
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when you guys talk about 300,000+ homes I feel like a real poor for buying a 180k townhouse.
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Apr 4, 2017 22:25
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Photex posted:when you guys talk about 300,000+ homes I feel like a real poor for buying a 180k townhouse. I'm in the process of moving from a city where I bought a 2400 sqft new construction 2 car garage house on a quarter acre lot for $160k to one where $350k-400k gets me half of a duplex. Oh man it's scary.
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Apr 4, 2017 22:26
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Photex posted:when you guys talk about 300,000+ homes I feel like a real poor for buying a 180k townhouse. $300k is what the townhomes start at in Seattle. EDIT: actually scratch that. The cheapest one I can find is $350k.
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Apr 4, 2017 22:27
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QuarkJets posted:So I know in the past that a lot of us have said that additional principal payments are silly when your interest rate is less than 4%, but I've still been making extra $500/mo principal payments because I just loving hate all of the debt. Is anyone else in that boat? Those extra payments would be for nothing if prices suddenly tanked or if I lost my job and couldn't keep making payments, but if the point is to actually own a house outright eventually then I'd rather be done in 10-20 years than 30 Sup extra $500/month buddy. (Actually, $599. Just re-fi'd and kept paying the same amount.) I could be putting this money into savings every month, but at 6% avg returns on a taxable brokerage account, needing to pay 15-28% in cap gains, and maybe needing to sell in a recession, everything seems to average out to a wash against my 3.75% mortgage. If I can manage to make this my forever home I will be done paying off this mortgage 11 years earlier. Right or wrong this is what I'm doing after my wife begged me not to plow every extra dollar into our mortgage. Also saving $260,214.29 - $154,751.85 = $105,462 in interest seems nice. This is a guaranteed cost of doing business, whereas the market is variable.
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Apr 4, 2017 22:28
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Photex posted:when you guys talk about 300,000+ homes I feel like a real poor for buying a 180k townhouse. When you talk about a 180k townhouse, I feel like I live in the most expensive place on the planet, so we're even! Edit: Just looked at Zillow. Cheapest 3br/2ba townhome within city limits is around 450k. Cheapest one I'd want to live in is over 650k. Insane. metztli fucked around with this message at 22:38 on Apr 4, 2017 |
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Apr 4, 2017 22:28
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QuarkJets posted:So I know in the past that a lot of us have said that additional principal payments are silly when your interest rate is less than 4%, but I've still been making extra $500/mo principal payments because I just loving hate all of the debt. Is anyone else in that boat? Those extra payments would be for nothing if prices suddenly tanked or if I lost my job and couldn't keep making payments, but if the point is to actually own a house outright eventually then I'd rather be done in 10-20 years than 30 I pay enough extra to work out to an extra payment each year. But my reserve isn't as high as I'd like it to be so I want to get that on firmer ground before I really go hog wild on paying things down.
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Apr 4, 2017 22:45
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HEY NONG MAN posted:You could probably invest that money somewhere else and make more money than you're saving by paying down the principle on your house. Yeah, I know. That's an argument I've even made in this thread before. Assuming a 7% annual return on average and treating the returns like compounded interest, investing in mutual funds would likely bring in a lot more profit in the long run. But that debt just feels bad
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Apr 4, 2017 22:54
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Thoguh posted:I pay enough extra to work out to an extra payment each year. But my reserve isn't as high as I'd like it to be so I want to get that on firmer ground before I really go hog wild on paying things down. To put my mortgage payments brag in context, that extra $599 is without sacrificing my immediate quality of life or other financial goals: My 401k and two IRAs are both maxed each year, we have a 6-month buffer in the savings account @ 1% interest, and save money on top of this for things like vacations, home improvement, blackjack, and hookers.
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Apr 4, 2017 22:55
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I don't understand how further bragging contextualizes the initial brag, but this is all good info.
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Apr 4, 2017 23:04
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How big is your dick
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Apr 4, 2017 23:07
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ElGroucho posted:How big is your dick He makes sure to come early, so it's like coming one extra time every year.
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Apr 4, 2017 23:16
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Photex posted:when you guys talk about 300,000+ homes I feel like a real poor for buying a 180k townhouse. Woo townhouse buddy! It kind of sucks in a way because when we have family and friends over no one is really impressed and they say it's too small, but I'm happy that we were smart and bought within the limits of what we could reasonably afford.
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Apr 4, 2017 23:35
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remigious posted:when we have family and friends over no one is really impressed and they say it's too small Unless they're offering to buy you a bigger place, they should gently caress right off.
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Apr 4, 2017 23:43
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remigious posted:Woo townhouse buddy! It kind of sucks in a way because when we have family and friends over no one is really impressed and they say it's too small, but I'm happy that we were smart and bought within the limits of what we could reasonably afford. I mean our place is 1300sqft which is a lot of space for a married couple who doesn't plan on having kids, I can't wait to finish the basement.
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Apr 4, 2017 23:55
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HEY NONG MAN posted:I don't understand how further bragging contextualizes the initial brag, but this is all good info. I never claimed to be humble.
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Apr 4, 2017 23:58
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Subjunctive posted:Unless they're offering to buy you a bigger place, they should gently caress right off. This is what people say when they are trying to tell themselves that they're perfectly happy living in the suburban wasteland they're currently in and those crazy city people are insane for paying so much for housing. Don't take it too personally. It's just rationalization. The same variety of rationalization by which city people look at the suburbs and say my god, what a soulless wasteland, all those cookie cutter houses, how could anyone want to live like that, I'm so glad we're paying a king's ransom for this closet-sized apartment we can barely live in, because we get to be liberal and sophisticated.
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Apr 5, 2017 00:01
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Well, I'm a crazy city person, but I still think they should gently caress off.
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Apr 5, 2017 00:24
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