buying real estate - Page 8

GrooveNougat · #1 10-12-2005, 08:32 PM

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need some info on buying a house/condo

can you just walk into a real estate office and start asking questions? i am kind of a bum, i don't see myself fitting in. also nobody in their right mind would give me a loan due to having no job but what if parents co-sign? should it be no problem after that or could i still run into trouble?

let's put it this way, what is step #1?

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Daryn,
The advice on here so far has been a mishmash of incoherent blabbering. Step 1, put on your good sweatpants and go talk to a real estate broker. Step 2, they'll put you in touch with a mortgage broker who will tell you anything you need to know about getting a loan.

As long as you've got the cash, they'll be tailoring to you. www.realtor.com or www.themls.com might help you get started too.

Good luck house/condo hunting.
Cheers

Indiana · #2 10-13-2005, 11:44 AM

Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

Shajen · #3 10-13-2005, 12:02 PM

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Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

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Two things:

1) saying "discuss" just pisses me off. Nothing personal, but if we are going to talk about it, we don't need someone telling us to. Either it gets responded to or it doesn't.

2) in the majority of situations, renting is a negative sum game. For example, I moved to Atlanta in 1998. I rented for 5 years. Average rent was $1100 a month. 5 * 12 = 60. 60 * 1100 = $66,000 with nothing to show for it. I've lived in my house for 2 years now, and in that time I've received tax breaks and my home has appreciated a decent bit. That means if I were to sell it tomorrow, I'd get a decent chunk of cash back. You can't do that renting. Owning a home gives you several advantages over renting, first and foremost is appreciation in your home. Second, there are the tax considerations. Also, you can sell your home. Finally, owning a home means you don't have to put up with a bunch of other idiots like you would if you were renting.

Renting is right in some areas (like San Fran, NYC, or SoCal), but for the majority of the country, owning is the way to go. It all depends on where you live.

Oh, Daryn, if you read this, something to consider is the Homestead Act. Google it. It's pretty awesome.

Indiana · #4 10-13-2005, 12:15 PM

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Two things:

1) saying "discuss" just pisses me off. Nothing personal, but if we are going to talk about it, we don't need someone telling us to. Either it gets responded to or it doesn't.

2) in the majority of situations, renting is a negative sum game. For example, I moved to Atlanta in 1998. I rented for 5 years. Average rent was $1100 a month. 5 * 12 = 60. 60 * 1100 = $66,000 with nothing to show for it. I've lived in my house for 2 years now, and in that time I've received tax breaks and my home has appreciated a decent bit. That means if I were to sell it tomorrow, I'd get a decent chunk of cash back. You can't do that renting. Owning a home gives you several advantages over renting, first and foremost is appreciation in your home. Second, there are the tax considerations. Also, you can sell your home. Finally, owning a home means you don't have to put up with a bunch of other idiots like you would if you were renting.

Renting is right in some areas (like San Fran, NYC, or SoCal), but for the majority of the country, owning is the way to go. It all depends on where you live.

Oh, Daryn, if you read this, something to consider is the Homestead Act. Google it. It's pretty awesome.

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1) I'm sorry.

2) Still not convinced. I must reveal that I run real estate deals on the side so you don't need to verse me in any homstead act stuff. Now, why do you think that the feds changed the tax on a sale situation in 1997? It because people needed incentives to buy. Tax breaks are a bullshit deal but without them the housing market would be much weaker. Whenever you are getting a tax "break" it is a "break" on the interest only. Paying interest means that you are paying somebody else's bills. Its like a rakeback. So its not really a golden break in anyway.

Let me give you an example. Ok, in Indianapolis you can get a good place to rent for $800 (californians are salivating now) per month. Now to own a decent condo its gonna be around $190K. That's going to be like, i dunno, $1200/month with 10% down with $1000 going to interest. So the tax break is like 300-400 per month. But guess what? You will spend 300/month on upkeep and condo fees. So say goodbye to Mr. Tax break. Now what does this leave? It leaves the bank with a nice payday and about $250 in equity payments. If your house only appreciates 3.5% per year then its no great deal to buy over rent. Plus as a renter you have basically no worries. Dont forget that you will pay 7% when you sell and perhaps you will pay rent for 6months in two separate places.

Indy

Shajen · #5 10-13-2005, 12:23 PM

I have a hard time reconciling an $800 a month apartment with a $190k condo.

Those are comparable in Indianapolis? Really? The housing market there must really suck.

astroglide · #6 10-13-2005, 12:57 PM

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You will spend 300/month on upkeep and condo fees

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i'm not checking the other figures, but i think that is a really high estimate. i live in a 200,000 condominium and my condo fees are 140/month. that includes insurance which covers anything on the walls or floors and all of the structure (paint, flooring, shower walls, etc), the only insurance needed is for personal items like televisions and computers.

Indiana · #7 10-13-2005, 01:30 PM

140/month is very cheap for condo fees. Downtown indy the minimum for anything reasonable is $285. Depends on where you live and the age of your place.

Indy

haakee · #8 10-13-2005, 08:26 PM

Don't forget property taxes.

daryn · #9 10-13-2005, 12:03 PM

[ QUOTE ]
Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

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i just want to live in the place

ptmusic · #10 10-13-2005, 08:43 PM

Buy Home Buying For Dummies

Really! My wife and I learned a lot from it. We gave up on our first choice house when we were out bid, and that was a learning experience too.

We had learned so much that when we went after another house, we were negotiating masters. Or at least we did an adequate job. Plus we got a great loan deal.

Learn, don't just jump in. It is the biggest, riskiest investment you probably will have made up to this point, by far.

-ptmusic