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  1. #31
    a Beautiful Disaster B bunny LV<3's Avatar
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    Default Re: Good time to buy a home?

    Quote Originally Posted by THE-GUY View Post
    ^^ SO you think the price will continue to drop?
    Yuuup especially in california!

    L . O . V. E

  2. #32
    Bag Fan Newbie Mr. GUNG's Avatar
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    Default Re: Good time to buy a home?

    I think the prices will drop but one should not expect their house to be an investment in the slightest during this time. If anything, home values will continue to plummet for buyers and for owners.

  3. #33
    Official Bagista
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    Default Re: Good time to buy a home?

    Quote Originally Posted by boysRsmelly View Post
    Don't forget you have to pay property taxes Guy. Remember to figure that in to the cost when you're deciding what you can and cannot afford.
    When you go to the bank, they will usually put your property tax and insurance in escrow. So when you qualify for the loan, the bank will calculate the monthly effect of property tax and insurance in to what payment you can afford. It can add up. For me, my PTI portion of my payment is around $600 per month...but I live in a state with no personal income tax so our RE taxes are high.

  4. #34
    Official Bagista
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    Default Re: Good time to buy a home?

    Guy, if you plan on buying a house think of this. Buy something a little smaller - condo is a good idea if you don't like maintenance or yardwork. Then, when you get married and move on, you can rent out that place (just make sure if you buy in to a condo or co-op you are allowed to rent - some HOAs prohibit this) and buy your next place. Chances are with your down payment and the payments you have made on it, the rent you will receive will more than offset your payment. Currently, you can deduct up to $25,000 from your income as a passive activity loss for residential real estate rentals from your federal income tax. You may think 'whoa why would i do something like lose $25,000 per year" but you need to remember you can deduct things like fixing the HVAC or having the yard mowed that you can't deduct when you live in it. Furthermore, you can depreciate the asset and deduct a portion of your basis each year (your basis will be what you paid for it, less any deductions you take for home office prior to converting the property to a rental).

    So, you are really building wealth. Chances are, the property values will appreciate again and as that happens your loan value decreases so your net worth increases faster than if you just saved money. With rental income you will be suprised at how fast you can build wealth - especially if you are handy and can do things yourself. Although, I would suggest using a property management company to screen tenants once you decide to move on.

    I don't like the idea of renting a couple of rooms unless they are to people you know. People out there are strange and you don't want some wack job living with you. If you have people move in, make sure you obtain a $1M liability insurance umbrella policy to protect you and your assets.

  5. #35
    Official Bagista
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    Default Re: Good time to buy a home?

    OH! Another thing...if your property appreciates in value enough, and your payment decreases and you don't have a great deal of money for down payment, as long as you keep an 80% MV to debt ratio you can borrow the 20% down payment from your previous property to put on the new one down the road. This will help you because you wont' have to pay private mortgage insurance.

  6. #36
    ♥'s RM Jess's Avatar
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    Default Re: Good time to buy a home?

    MULTI QUOTE, please!

  7. #37
    The Asian Sensation
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    Default Re: Good time to buy a home?

    OOooH Alot of good info. Thanks Nash!

  8. #38
    Official Bagista
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    Default Re: Good time to buy a home?

    *****
    Last edited by NashvilleDiva_83; March 25th, 2009 at 11:37 AM.

  9. #39
    The Bag Star M_Butterfly's Avatar
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    Default Re: Good time to buy a home?

    I do think it is a good time to buy a house if you have the money. Everyone is diiferent but I did not have already one I would be looking into it.

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