Dear folks who wish you owned your own home

somdrenter

somdrenter

Sorry, I'm not Patch...
Want it to sell?

Drop the price....

Home sales rose in '09 as prices plunged 12 pct.

Home sales rose in '09 for first time in 4 years, boosted by government spending, low prices

WASHINGTON (AP) -- Sales of previously occupied homes rose in 2009 for the first time in four years, despite a December slump that was due to a tax credit that led many buyers to complete sales earlier.

Still, prices plunged more than 12 percent last year -- the sharpest fall since the Great Depression. The price drop for 2009 -- to a median of $173,500 -- showed the housing market remains too weak to help fuel a sustained economic recovery.
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Home sales rose in '09 as prices plunged 12 pct. - Yahoo! Finance
 
somdrenter

somdrenter

Sorry, I'm not Patch...
Baja28 said:
Then you won't have any payments and can use the equity to enjoy yourself.
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What the previous poster is pointing out(maybe) is opportunity cost. While despite what you may fabricate Baja, no one has advocated renting indefinitely. Historically, housing has just kept up with inflation. You may have noticed, there was a housing bubble, and there are ways to mitigate high housing prices (one of which is renting).

I have seen local (decent) neighborhoods drop to 2005 prices (and continue to drop), while my down payment has increased substantially. What’s my opportunity cost?
 
Baja28

Baja28

Obama destroyed America
somdrenter said:
True. But speaking of equity, how is one tapping into it whithout selling?
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I just closed on a refi at 3.75%. I didn't sell anything. I still own my home AND have a damn fine toy to play with this summer. A renter cannot do that.
 
GWguy

GWguy

*
:lmao:

All I can say is that I will no longer be paying into a mortgage. The money I would have used to pay the mortgage is not being used for rent. It will be put into a high yield account. At such time that the market for home sales recovers, and it will, I'll be ready to sell, take that money and invest that, and be that much farther ahead. The price delta alone between what I paid for the house vs what I will sell it for INCLUDING the interest paid during the mortgage is far more than any interest I might have gained by selling now and investing. And in the meantime, I have a place that is totally free from some landlord's whim, I can't be kicked out because he defaulted on HIS mortgage, I'm not paying HIS mortgage, and I can retire with no worries.

End game.
 
somdrenter

somdrenter

Sorry, I'm not Patch...
Baja28 said:
I just closed on a refi at 3.75%. I didn't sell anything. I still own my home AND have a damn fine toy to play with this summer. A renter cannot do that.
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I too have some new toys for the summer, but paid cash for them.

The economy may be the poorer for it, but recent times has shown it: Debt is not wealth.
 
Baja28

Baja28

Obama destroyed America
GWguy said:
:lmao:

All I can say is that I will no longer be paying into a mortgage. The money I would have used to pay the mortgage is not being used for rent. It will be put into a high yield account. At such time that the market for home sales recovers, and it will, I'll be ready to sell, take that money and invest that, and be that much farther ahead. The price delta alone between what I paid for the house vs what I will sell it for INCLUDING the interest paid during the mortgage is far more than any interest I might have gained by selling now and investing. And in the meantime, I have a place that is totally free from some landlord's whim, I can't be kicked out because he defaulted on HIS mortgage, I'm not paying HIS mortgage, and I can retire with no worries.

End game.
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:high5: I see my boy Two-er didn't last long. :killingme
 
vraiblonde

vraiblonde

Board Mommy
PREMO Member
Patron
vraiblonde said:
That's pretty scary, when you think about it. Irresponsible home buyers got in over their heads and now the government is supposed to bail them out? How about if you rack up too much credit card debt with high interest? Should the taxpayers have to bail you out of that, too?
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I'm like a freakin' prophet.
 
T

Two-er

Member

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T

Two-er

Member
Baja28 said:
Ok Einstein, lets back up here.

1. How did you get a paid off house worth $500K?
2. What kind of mortgages do you think you're going to get with $50K/year? Remember, you said "several" earlier. Even if it were 2, you're living in a blue collar apt. at best.

:gossip: You're not very good at this.
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Where did I say several?

$50,000 a year in interest that you earn on your $500,000 investment will pay a mortgage on a $500,000 house (about $3,500) and a mortage on a $200,000 house (about $1300). Live in the $500,000 house and let your kids live in the $200,000 house (or rent the $200,000 to someone else).

:dye:

Or - live in your $500,000 house that's paid off, earn 1.25% annual return, and pay the couty $5000 a year for the priviledge of doing so. My checking account earns 1.25%.

:killingme
 
TrueSOMDGirl

TrueSOMDGirl

resident Spring Bunny
Two-er said:
Where did I say several?

$50,000 a year in interest that you earn on your $500,000 investment will pay a mortgage on a $500,000 house (about $3,500) and a mortage on a $200,000 house (about $1300). Live in the $500,000 house and let your kids live in the $200,000 house (or rent the $200,000 to someone else).

:dye:

Or - live in your $500,000 house that's paid off, earn 1.25% annual return, and pay the couty $5000 a year for the priviledge of doing so. My checking account earns 1.25%.

:killingme
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What about the people who cannot buy a house because of poor credit? I know of a few that have tried and tried and no luck. They had some medical problems and it screwed their credit scores, another person was laid off and had to file bankruptcy...they would love to buy a house, since they are paying rent and do not plan to move anytime soon. Are there any programs out there to help them?

off topic I know, sorry but would love to help them out if I can or pass on some good information to them.
 
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