Looking for advice...

If your not into new construction IMO 08' will be the low point so I'd wait unless you find something perfect.
 
Jarod said:
The contract fell through on the house I was trying to buy, I think that may be a good thing, because the guy was unwilling to pay for a new roof. Now the apprasial came in at the price I wanted to pay all along.

In the meantime I found a rental that my wife and I like. The rent would be what our current mortgage and taxes and insurance are.

So do I try to re-negotiate the origional deal or just rent for a year. Is the realestate market going to drop more in the comming year?>
Click to expand...

Have sex with LOTS of women. Not one or two, LOTS of women. Ya here me boy?
 
Jarod's right not to use an agent. Most of the ones we talked through out the year kept trying to hint (without actually saying anything) that prices would go up despite the obvious and what every single freakin' economist that wasn't on the National Association of Realtors payroll told us. My bet would be on the market where you are dropping over the next year.

The people who didn't take our offer last spring for $372K, are still $350K+ in debt, and are now trying to get rid of their house for $360K. If they are smart they will take the offer and keep it moving. So many sellers are trying to be greedy.
 
he came down to 485,000. we told him to go to hell unless he paid for a new roof...

Told him the offer was only good until noon. He has not responded and its 2... At 3:30 we are signing a lease on a very nice home!
 
Jarod said:
he came down to 485,000. we told him to go to hell unless he paid for a new roof...

Told him the offer was only good until noon. He has not responded and its 2... At 3:30 we are signing a lease on a very nice home!
Click to expand...

if he dropped it to 470 and no new roof would you take it?
 
Jarod said:
he came down to 485,000. we told him to go to hell unless he paid for a new roof...

Told him the offer was only good until noon. He has not responded and its 2... At 3:30 we are signing a lease on a very nice home!
Click to expand...

While it sucks to throw money away on a lease, in this case I think you are going to be happy with that decision. My guess is that the money you save in home values decreasing will more than offset the amount you paid on the lease.
 
Superfreak said:
While it sucks to throw money away on a lease, in this case I think you are going to be happy with that decision. My guess is that the money you save in home values decreasing will more than offset the amount you paid on the lease.
Click to expand...

If home values decrease you loose less in a lease than you would with a mortgage. You build almost 0 equity the first five years of a 30 year mortgage.
 
Don't you have to consider taxes too? If I'm not mistaken I thought if you sold your home and immediately rolled it over into another mortgage you had some form of tax relief. Alex you haven't been in your current home very long right?
 
Jarod said:
If home values decrease you loose less in a lease than you would with a mortgage. You build almost 0 equity the first five years of a 30 year mortgage.
Click to expand...

Um... that is what I said, but thanks for the clarification. Side note... the amount of equity you lose in a home is not dependent by how much equity you currently have in the home.

If you paid $485k for that home now with nothing down (just for examples sake) and it declined in value over the next year by just 8% (about 39k) then that decline is more than what you would have sunk into your lease (assuming a 3k per month lease.... which is approx what you would pay on a 30 year fixed at 6%...and yes 6% was used deliberately on the high side)

Bottom line, again assuming you had nothing down, you would in one year have a negative 39k equity in the home if purchased compared to the 36k sunk into a lease. That is essentially the breakeven point. Again, assuming that your lease is approx what your mortgage payment would have been.
 
Jarod said:
The contract fell through on the house I was trying to buy, I think that may be a good thing, because the guy was unwilling to pay for a new roof. Now the apprasial came in at the price I wanted to pay all along.

In the meantime I found a rental that my wife and I like. The rent would be what our current mortgage and taxes and insurance are.

So do I try to re-negotiate the origional deal or just rent for a year. Is the realestate market going to drop more in the comming year?>
Click to expand...

Dont buy for at least a year.
 
LadyT said:
Don't you have to consider taxes too? If I'm not mistaken I thought if you sold your home and immediately rolled it over into another mortgage you had some form of tax relief. Alex you haven't been in your current home very long right?
Click to expand...

4 years, tell me if I am wrong, but I think because it was homesteded for over three years I do not have to pay cap gains.
 
Jarod said:
4 years, tell me if I am wrong, but I think because it was homesteded for over three years I do not have to pay cap gains.
Click to expand...

I think you only have to worry about capital gains taxes if the gains were over either $250 or $500K (yeah, I know big difference) and you resided there for over 2 years, so it sounds like you're in the clear unless your gains were well over $250K. If they were just over you can deduct your home improvements over that time to reduce your liability. But this is from vaguely reading overviews. I'm no CPA.
 
You must log in or register to reply here.
Back
Top