Dear folks who wish you owned your own home

[DallasRed]

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.

Do owner financing or a lease purchase.

 

[TrueSOMDGirl]

Do owner financing or a lease purchase.

I am so sorry, I am a complete dumbass when it comes to these things, can you tell me more about this?

 

[Baja28]

Just saying that a $500,000 house sitting there earning 1.25% annual return is lame compared to $500,000 invested wisely earning 10-12%. Even a modest 10% return on that $500,000 would earn you $50,000 a year. In other words, more than enough to pay for your housing along with housing for a few of your kids.

Where did I say several? See your post above.

$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).

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%.

Ok, my turn to talk slow although I'm pretty sure you won't comprehend.

1. Where did you get the $500K to invest?
2. Where did you get the $500K house that's paid off?
3. Where do you get 10% interest?
4. What does any of this have to do with renting?

Go away and don't come back until you can make sense.

 

[somdrenter]

You're owned!

Wait a sec Baja….I forgot about this little tidbit…..you're still not accounting for the “housing bubble” (perhaps you’ve heard of it).

Yes, when ones mortgage payment is a little over $700, it’s hard to see where someone could go wrong by buying. You’re not accounting for a time frame in which mortgage prices were 40%-50%+ of income.

 

[somdrenter]

5 more years for us.

Is this a case in which you purchased during the bubble years and will have it paid of in 5 years?

 

[somdrenter]

4. What does any of this have to do with renting?

Go away and don't come back until you can make sense.

What does purchasing at pre-bubble prices have to do with the topic at hand?

 

[TrueSOMDGirl]

What does purchasing at pre-bubble prices have to do with the topic at hand?

okay, again I am not the smartest person in here, I can admit that. I also suck at grammar, but what is a bubble price?

 

[somdrenter]

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.

Fix your credit. Save for a down payment.

 

[Baja28]

Wait a sec Baja….I forgot about this little tidbit…..you're still not accounting for the “housing bubble” (perhaps you’ve heard of it).

Yes, when ones mortgage payment is a little over $700, it’s hard to see where someone could go wrong by buying. You’re not accounting for a time frame in which mortgage prices were 40%-50%+ of income.

Well I can't help you. I suppose you'll just have to rent and make someone else's mortgage payment. :shrug:

This whole thing started a year or so ago when you and Patchy (mainly patchy) implied that anyone who bought or owned was a moron and that renting was the only way to go. Well it isn't. If you're 30+ years old and don't own your home, you're the moron. Not those of us who bought and have paid off their homes.

 

[Two-er]

Ok, my turn to talk slow although I'm pretty sure you won't comprehend.

1. Where did you get the $500K to invest?
2. Where did you get the $500K house that's paid off?
3. Where do you get 10% interest?
4. What does any of this have to do with renting?

Go away and don't come back until you can make sense.

Come back when you can tell me why it's smart to sit in a house that's completely paid off and earning you 1.25% annual return and pay the county for the priviledge of doing so (which was my original point).

Meanwhile, don't quit your day job because you'll never be a real estate tycoon. For the 2nd time in one thread - you're fired...

 

[TrueSOMDGirl]

Fix your credit. Save for a down payment.

Not me but thanks. They have tried, they are working on it but somethings will not be fixable.

I was wondering if there are any options for them since the houses are so cheap now.

 

[somdrenter]

okay, again I am not the smartest person in here, I can admit that. I also suck at grammar, but what is a bubble price?

The housing bubble.......

 

[somdrenter]

Not me but thanks. They have tried, they are working on it but somethings will not be fixable.

I was wondering if there are any options for them since the houses are so cheap now.

What qualifies as cheap? Would you not be better of at affordable?

 

[TrueSOMDGirl]

The housing bubble.......

Please continue...I am interested in why this is a big deal. I owned a home, I chose to sell it and rent soley because it worked out for me since I am always being relocated every three to six months.

But other than that, I do have friends that are interested in buying a home for the security and investment. So what are you saying about the housing bubble?

 

[TrueSOMDGirl]

What qualifies as cheap? Would you not be better of at affordable?

I do not understand what you are asking. If it the homes are cheaper, would that not make them more affordable??

 

[somdrenter]

Well I can't help you. I suppose you'll just have to rent and make someone else's mortgage payment. :shrug:

This whole thing started a year or so ago when you and Patchy (mainly patchy) implied that anyone who bought or owned was a moron and that renting was the only way to go. Well it isn't. If you're 30+ years old and don't own your home, you're the moron. Not those of us who bought and have paid off their homes.

Baja, if you haven’t noticed, you are paying someone’s else’s mortgage (if you’re a taxpayer). Me nor Patch has said buying a home makes you a “moron” and “renting is the only way to go”.

We did call the housing bubble. We did predict the some of the economic effects of the burst. Again, comparing a $700 mortgage to a mortgage made during the run up is not looking at all the facts.

 

[somdrenter]

Please continue...I am interested in why this is a big deal. I owned a home, I chose to sell it and rent soley because it worked out for me since I am always being relocated every three to six months.

But other then that, I do have friends that are interested in buying a home for the security and investment. So what are you saying about the housing bubble?

You got me there. Turn the TV to the financial news (just have it on in the background), Google “Housing Bubble” and go from there.

 

[somdrenter]

I do not understand what you are asking. If it the homes are cheaper, would that not make them more affordable??

No. First, it has to be affordable before it becomes “more” affordable.

 

[TrueSOMDGirl]

No. First, it has to be affordable before it becomes “more” affordable.

I still have no clue what that means. If homes that were selling for 300k last year and are selling for 250k now, does that not make them cheaper and more affordable?

 

[somdrenter]

Please continue...I am interested in why this is a big deal. I owned a home, I chose to sell it and rent soley because it worked out for me since I am always being relocated every three to six months.

But other than that, I do have friends that are interested in buying a home for the security and investment. So what are you saying about the housing bubble?

Real estate bubble - Wikipedia, the free encyclopedia

United States housing bubble - Wikipedia, the free encyclopedia