Reply to 7K Mortgage on a HHI of 500k

Forum Index » Real Estate

Reply to "7K Mortgage on a HHI of 500k"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I wouldn’t be buying anything right now!  Only reason I’d buy would be if I had to relocate for a job.  I’d wait this one out. [/quote]

So what do you recommend people do? Wait for a “crash” that may never happen? Same mindset of not investing money. Who cares if the price declines in the short term, you’ll never time it right, so just buy and play the long game. [/quote]

I bought in 2006 and wish that I hadn't. It really damaged me financially at a young age. Sitting it out is actually wise advice.

I say that as someone who is currently under contract to buy a house. I was able to sell my house at a high price, relocated for work, and am making a large down-payment for our current house. One hand is essentially washing the other since I profited from the market.  That isn't the case for a first time home buyer.

OP, I think when you're starting out, it's normal be stretched with your mortgage, and you grow into it.  But if you're nervous, it's okay to live under your means.  We have a HHI of 900k, but our new house has a mortgage of $6k/month. That puts us in the upper range for the area that we moved to and makes sense, since we don't want to be in a house on a hill away from the community we moved into. But 1.2M doesn't go far in DC so you may need to be comfortable with a hefty payment. There is no one answer to what you should have as a mortgage at higher incomes.  [/quote]

How did it damage you? Did you sell at a poor time? If you were close in DC 2005-2006 was not a huge deal for real estate prices...relative to tertiary markets. [/quote]

DP.  No one knows what the future holds, including for the DC market.  But it seems unwise to rush to buy a home during such a hot housing market with less than 20% down and a large mortgage.  Why the rush?  [/quote]

[b]Repeat, If i buy a house for 1.55M and it declines to 1.4M (10% drop)..how does this impact my life? You should never buy a house you don't plan to live in for 7-10 years. [/b]

7-10 years from now, odds (which are very high) are good that the price will be higher, or the same. Homes you live in are not meant to be investments[/quote]

More likely it would be 10% followed by little if any appreciation. You could be underwater for years.  It’s easy to say you don’t care because you aren’t moving, but things happen. School districts change, crime increases, job relocation etc.  Do you really want to be stuck with a house you have to write a check for to sell?  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics