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FidgetyRat posted:Just a note for the OP. PS, I know firsthand, this is the worst. When TurboTax tells me that I'm too rich to deduct some type of interest, I die a little inside  No PMI for me, but just in general. Keep this in mind if you're "rich" like me.
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May 6, 2009 14:47
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FidgetyRat posted:I hear you.. We make just over 110/y but also live in an area where taxes are higher, house prices higher, and thus PMI is a larger chunk.. Even though our family makes 6 figures, we're not exactly going out and buying flat screen TVs.. Between student loans, the house, etc, we live comfortably, but not in excess. Get ready for when you get older and can't deduct your kid's college tuition because you're too rich. That's the real heartbreaker.
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May 6, 2009 18:27
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TheAngryDrunk posted:Don't feel bad. All mortgage tax interest deductibility does is artificially raise prices on homes. If you could deduct the interest, your home would just cost more.  You just blew my mind on something that is completely obvious.
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May 8, 2009 20:10
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Cheesemaster200 posted:I absolutely hate this argument. It's even simpler than that. House prices are based on affordability, period.
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May 11, 2009 20:34
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moana posted:How can you reconcile this with the past few years, then? Aren't we saying that the housing bubble broke because people really couldn't afford what they were buying? I'm adding these posts to the OP since I'm sure this will generate a lot of discussion and because I'm curious what people think will happen. That's the whole point. The past few years, there were exotic mortgages that made houses affordable (in the short term), but this is long term unsustainable because in actuality the homes were not affordable. Historical data is useless except that for the most part, home prices have stayed at roughly the same price--relative to wage inflation--since...I guess WW2. Ask yourself this. What makes a home price appreciate, if noone can afford to pay more for it?
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May 12, 2009 00:28
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Cheesemaster200 posted:But my point is what is keeping the same thing from happening again for the next 15 years? Interest rates are at record lows right now, and I think the major thing keeping back the housing market is spending reduction do to the recession rather than the housing market still imploding. With low interest rates, higher prices are more affordable, so it'll keep housing prices up until interest rates are at normal levels, when you'll need more money to afford the same price (since the interest payment is higher). Prices will have to go down, rates will not stay this low forever. Where is the price increase coming from where values are "realistic?" Can people afford more expensive houses? If they can, then yes, prices will go up. If they can't, where is this extra money coming from that is going to push up the price of houses? Now, lets say you buy a house in a rural/suburban area, that over time develops. As it develops, more jobs come to the area, causing the median wages in the area to increase at a faster pace than inflation. In this scenario, yes, your house will be more valuable. But this doesn't have anything to do with interest rates, historical trends, or anything other than affordability. The people in the area are able to afford houses that are more expensive, and as such, the house prices increase.
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May 12, 2009 02:45
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glompix posted:stuff You've decided against buying the house--and that's good--but I'm gonna use your post as an example in my "wtf is wrong with people" post. Your parents, girlfriend, and every average person it seems, still think housing is a great investment, based on historical trends, AFTER house prices have plunged 35% in a year, and are continuing to do so. It's unbelievable how much that thought is ingrained into our heads...and because of this, it is my thinking that houses will NEVER be undervalued, unless somehow this perception is changed (my guess is that it won't be). After big stock market crashes, the people who say "don't invest in stocks, stocks will never supply the same return, yadda yadda" far outweigh those who say "oh it's cheap, because it's cheaper than it was yesterday, buy now!" However, you can flip those statements, as more people now think housing is a great deal because it's cheaper than it was yesterday than those who are saying it's over, and housing will never provide the long term gains that they used to. I wonder why that is.
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Jun 10, 2009 21:16
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The Flying Clog Wog posted:I'm not planning on buying a house right now, I'm just wondering if any of you can just sort of give me an estimate of when it might be a possibility. Not sure on this since I don't know anything about London/the London housing market, but is it anything like Manhattan? People with normal salaries can't sniff a nice apartment in Manhattan. There are, however, surrounding areas that they live (in north new jersey, brooklyn, or queens), is there anyhthing like that you can look into? Just trying to point out that you're not alone--buying a condo in an expensive city is out of reach for most people.
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Jun 11, 2009 14:17
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Why should they let the $8000 tax credit be used as a down payment? Isn't that eerily similar to a no money down loan?
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Jun 17, 2009 16:02
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ManDingo posted:I ran accross this article today and thought it might be worth posting. Man, this is just insane. Keep artifically inflating the housing prices, why the hell not. But on a lighter note, I will be looking to buy a condo in miami in the 150-200K range if this bill passes. Retirement planning, almost 20 years early 
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Jun 19, 2009 15:35
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FidgetyRat posted:I'm genuinely curious as to why people even go for townhomes/condos when SFH's are available. At least in my area, a Condo/Townhome can sell for just as much as a full 2-story home on a decent lot where neighbors aren't sharing walls. This is like asking why people buy a toyota instead of a lexus, at least in most markets.
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Jul 6, 2009 15:09
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Ophelia's Ashes posted:Ok. I'm not disagreeing...but I need you to explain it to me. And I really don't get why you think my car payments will be $1000+. Every "online car payment" calculator I do through websites states if I put $5k down and finance for 60 months, it will be like...$567 (approx) a month. Do yourself a favor and save up 20% before you buy the house, NOT from an unsecured loan. You make entirely too much money to not be able to save $40,000 inside of 1.5 years, maybe 2. The house is certainly not outside your budget, that's a relatively cheap house, the car maybe stretching it--I don't know too many people in the $100-120K income area who own a car like that. Then again, said people generally live in much more expensive houses. Just the fact that you have no savings with that kind of salary puts up a red flag in my book--by saving the down payment for yourself, you'll not only save yourself money but you'll prove yourself that you are fiscally responsible enough to do so; it's win-win. There's no rush to buy a house, don't do it until you're ready.
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Jul 16, 2009 02:01
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Zombie Dictator posted:Even though we're in the middle of a real estate crisis, everyone I know lives in an area that hasn't lost value. Funny how that works. And everyone I know who has taken a vacation to Las Vegas has won. No wonder Vegas is doing so poorly!
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Aug 10, 2009 19:39
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senor punk posted:shadow puppet of a: That is why I live in Astoria, hahahaha. Though to be fair it's a modest and not very big 2 BR on the 5th floor of a 90 y/o walk up. As ridiculous as the prices are it's sadly just the way it goes in NYC's market, and especially in Manhattan. And living in Astoria gives you the pleasure of having hipster neighbors everywhere you look The reason there's such a premium for living in Manhattan is...it's great. Tons of (EXTREMELY) high paying jobs right at the doorstep, the best restaurants, etc. It's easy to look at a 2BR on the upper east side vs. a mansion in the midwest with similar costs and see the homes themselves can not compare, but the atmosphere can not compare either.
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Mar 2, 2010 15:34
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bad news brown posted:This seems like the right place to ask this. I've got about $130k saved up and I have zero debt (student loans, credit cards, etc. all paid off). Would it be a better idea to buy a condo outright, make a large down payment on a house or condo, or just make a smaller (20-40%) down payment on a property? What's your income? Expenses? You'd be in a very different situation if you were making $150,000 a year compared with $50,000 a year.
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Mar 2, 2010 22:30
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