Reply to buying now or waiting another year?

Forum Index » Real Estate

Reply to "buying now or waiting another year?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I just bought.  These posts stress me out a little.  I paid premium (over asking), but not absurdity (ie 100+ over asking).  I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also.  The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out.  I think it’s likely our new home could see a small drop in value in the months/ my ears ahead.  But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better.  And I’m at peace with that.  The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc.  no one knows what will happen.  Waiting would have been very difficult for my family so I am glad we didn’t do it.  Only you know what’s right for you and your family OP.[/quote]

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty?  Do your kids not go to college?  Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens?  Is it that bad?

It sounds like you made the best decision for your family.  Rest easy.

This is the way.[/quote]

Yeah I don’t know.  I was underwater in 2008 and the subsequent years.  It was terrible.  Just the fact I couldn’t sell my property.  I had to continue paying a mortgage for a property where I had negative equity.   Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off.  I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check.  I would have liked to move to another city but I couldn’t.  When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck.  Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing?  Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine.  But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

[/quote]

For most people buying $1m+ houses in the DMV, losing $100k does not mean being underwater.  [/quote]

Being underwater means owing more on the mortgage note than the total value of the house. The prior poster was saying that he owed $100,000 more on the note than he could sell his house for. I don’t know a lot of people for whom a $100,000 isn’t a big deal. Even people buying $2m houses aren’t going to feel good about losing $100k in equity. That’s a quarter of your 20% down even at that level. That’s a lot of money to just about anyone with a mortgage. [/quote]

[b]I don't know where you got that[/b].  A PP posed hypo about losing $100k in value, with no mention of being underwater.  the responding PP assumed that losing $100k meant one was underwater, and compared it to his own experience.  I was simply pointing out that for most people buying $1m houses, they can lose $100k and not be underwater.  No one suggested it is the optimal situation, or even a pleasant experience.  [/quote]

This is where I got it (scroll up):

“Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck.”
[/quote]

Good lord.  It's apparent from the whole exchange that the PP you quoted conflated losing $100k and being $100k underwater.  He never said he was underwater by $100k.

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