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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:33 PM
Original message
Just WHY are people buying homes anyway?
Nice to have that big fancy home...

While unable to have a job long enough to pay for it; or be less than likely to keep up with payments "inbetween jobs".

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Redstone Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:36 PM
Response to Original message
1. I work for myself, so I'm never "between jobs."
Redstone
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evlbstrd Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:38 PM
Response to Original message
2. I needed a place to grow kids.
They take a lot of space.
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Evoman Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 01:31 PM
Response to Reply #2
90. Not really..I mean, space is nice...
but me and my siblings (3 of us) grew up in a 3 bedroom (okay..more like 2 and a half) bedroom house with one bathroom.
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evlbstrd Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-05-06 08:55 AM
Response to Reply #90
95. I'm the oldest of six.
We never had a house bigger than 3 bedrooms. I kinda wanted better for my family.
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greguganus Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:38 PM
Response to Original message
3. Alot of people dont care if it gets paid for.
I know people in their 60's buying homes with 30 year mortgages! I can't believe banks will finance them. I asked one man about it and he told me he'll let his children worry about it after he's dead.
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Misunderestimator Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:50 PM
Response to Reply #3
7. So someone in their 60s shouldn't buy a home?
Why not? It makes good fiscal sense to buy a home no matter what age you are. And taking out a 30 year mortgage also makes sense, since you can deduct the interest you spend on it on your taxes.

You build equity in a home, and the home usually increases in market value. So his children should be pleased that they will have something to sell when he's "dead." Better than cash stuffed in a mattress, or in the stale stock market, or in horribly low interest CDs or savings accounts.

I'm fascinated that you think it's a bad thing for someone in their 60s to take out a 30-year mortgage.

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greatauntoftriplets Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:51 PM
Response to Reply #3
9. Uh....ever hear the words appreciation or equity???
Housing values go up. The children will worry about it after he's dead because they'll be hot to get the equity out of the house when they sell it.

I just bought and am past 50. Lenders loved me because I have an excellent credit rating and virtually no debt.

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Momgonepostal Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:52 PM
Response to Reply #3
11. One advantage to that is he can get a fixed rate
Rents are a lot more volatile and I can see how many seniors, or anyone really, would rather lock into a fixed payment than be at the whim of a landlord. It's easier to plan with a fixed amount.

His heirs will be able to either sell the place when he dies and pocket the profit, or refinance and live there themselves, for a much lower payment than if they we're to start over. If he were renting, the heirs would get nothing and have to clean out his rental unit by the end of the month.

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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:54 PM
Response to Reply #3
38. 30 year mortgages were a part of housing plans since FDR. One
of the reasons no one can afford housing to day is because this idea has been dropped. Think about it. If you pay rent for 30 years you have nothing. If you buy and die before it is paid for at least your kids have the equity. I am speaking as someone who is virtually homeless. I live at one or the other daughters homes throughout the year. I wish I could buy a small trailer to call my own.
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cynatnite Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:40 PM
Response to Reply #3
58. Geez, what a way for that guy to love his kids...
:eyes:

Most parents don't want their kids saddled with crap like this.
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mccoyn Donating Member (512 posts) Send PM | Profile | Ignore Fri Aug-04-06 09:12 AM
Response to Reply #3
81. That only works if it appreciates faster than the interest accumulates.
Its a good deal if interest - appreciation < rent. I'm not convinced it is. Too many people value houses for non-financial reasons for it to be profitable, unless your a flipper who only holds them for a short period without accumulating too much interest.
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uppityperson Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:38 PM
Response to Original message
4. better than living in a car or a box on the street
self employed generalists can usually find something to do. No large mortgages though and a low standard of living, few expectations and needs all helps.
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wakeme2008 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:43 PM
Response to Original message
5. moving to mid state California
and am dreaming about a single wide mobile home.... that all single me needs. :)

But I do have a couple vices....





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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:43 PM
Response to Original message
6. cuz I bought one in a growing market 10 years ago
sold it and paid cash for this one

no rent, no mortgage and taxes less than $200 a YEAR

seemed like the thing to do at the time. and 10 years ago I got more house for less money than what I could rent.

today, well..... maybe not so much but in 10 years lots can change :shrug:
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Phx_Dem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:51 PM
Response to Reply #6
8. Why is your property tax so low?
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Momgonepostal Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:55 PM
Response to Reply #8
12. That seems low to me too
Here that would be about a $15,000 house.
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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:19 PM
Response to Reply #12
19. ahh yes, I remember California property taxes. the bungalow I owned
there cost 4 times the taxes as here in SE NM for a comparably priced property (what the bungalow was worth then is what I paid for this place now)
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lutefisk Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 12:11 AM
Response to Reply #12
67. Here, that would be about a $7500 house (Wisconsin) n/t
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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:16 PM
Response to Reply #8
18. cuz part is just for the land
and the other part is the tags for the mobile home

since it isn't "officially" on a permanent foundation it doesn't count as a house.

NM has some very low property rates in the smaller counties. they make their money on sales taxes which is comparable to Phoenix (8.1%)
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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:52 PM
Response to Original message
10. because I dont want to pay rent for my WHOLE LIFE????
Edited on Thu Aug-03-06 07:53 PM by LSK
You have 2 choices, a mortgage or rent. One of them eventually no longer has to be paid. Tough choice...

:shrug:
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sarge43 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:56 PM
Response to Reply #10
14. Yes and fixed rate mortgage is handy, too.
Edited on Thu Aug-03-06 07:56 PM by sarge43
Having the rent jacked every time you turn around gets old fast.
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Clarkie1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:35 PM
Response to Reply #10
48. Yes, but...
Edited on Thu Aug-03-06 09:36 PM by Clarkie1
Rent for a comprable property is generally quite a bit less than a mortgage payment, and the difference can be invested. If it's done right, the investments can make up, or even do better than, the property appreciation.

Renting makes more sense than buying for a lot of people, and it comes with less risk and less responsibility.
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Clark2008 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:49 PM
Response to Reply #48
62. Not true. Not unless you're in a big city.
I have a two-bedroom house with a bonus room that I pay less in mortgage for than I could EVER rent for. And we're talking about $100 to $300 bucks less a month.

It's actually CHEAPER monthly in most of the country to buy. Granted, you have to pay for repairs yourself, but you build up equity that usually surpasses what you spend in repair.
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Clarkie1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 03:31 AM
Response to Reply #62
69. That's not the reality in the S.F. bay area.
I'm saving a lot of money by renting...and live in a nicer place than I could buy.
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sandnsea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 07:56 PM
Response to Original message
13. It's like rent control - one payment the rest of your life
Plus a tax deduction and probable profit on the sale. Buy two homes, live in one and then sell the other for your retirement. Really is the best thing to do at any age.
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judaspriestess Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:00 PM
Response to Original message
15. cause its better than paying someones else's mortgage
and piss your money away. Sure my mortgage payment is higher than rent but its a HOME. not an apartment and you can earn money on your home. My home has gone up 125K but I am not going to touch my equity.

Now on the other hand, lets see someone pays rent at oh 800 a month = 9600 a year
9600 a year x's 10 years = 96,000

No thanks.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:40 PM
Response to Reply #15
26. It's still a gamble
Your equity could just as easily go down. And all the money you pay doesn't go to the principal balance of your mortgage. An astounding amount goes to the bank... some banker's pocket... to pay for his lifestyle.

It used to be a safe bet.


I wish you luck.
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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:42 PM
Response to Reply #26
30. and with rent ALL the money goes to someone else
:shrug:
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:53 PM
Response to Reply #30
37. I'll be able to rent at a much lower rate than the interest I'm currently
paying on my mortgage... and I'll save the HOA fee... and I'll be able to put a couple hundred dollars in savings every month. That couple of hundred is a far greater gain than anything I'd be able to realize in the real estate market at this moment.

Oh, I guess I should mention I live in Los Angeles County... where for $500k you too can be the proud owner of a 1200 sq ft, split level townhouse in a gang infested ghetto... no joke.

On what I make flipping properties in LA like I have for the past 25 years, living here making big bank income that I couldn't make anywhere else BUT a big city, I have earned enough to go to a small town somewhere and pay cash for a house with plenty left over.

Every situation is different and not everyone SHOULD EVEN CONSIDER owning their own home.
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Clarkie1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:39 PM
Response to Reply #37
50. I hear ya. I'm in the S.F. bay area...happily renting.
Edited on Thu Aug-03-06 09:40 PM by Clarkie1
There is nothing for less than 1/2 million here.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 08:57 AM
Response to Reply #50
76. People just don't have perspective
San Francisco and Los Angeles are not in Colorado or Iowa or Montana or even Ohio... If you want to buy a house worth $600k, and I'm talking plain old house in a plain old neighborhood, with grass and trees and a couple of parks... not freaking Beverly Hills... you need a yearly income of about $120,000.

Or, if you're like me, you buy a house in the ghetto for half that.

It's ridiculous. And people just don't get it.
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kestrel91316 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:17 PM
Response to Reply #37
56. Boy, ain't THAT the truth!

"Los Angeles County... where for $500k you too can be the proud owner of a 1200 sq ft, split level townhouse in a gang infested ghetto..."

Spend $800k+ for a TEAR-DOWN.

I never thought I would be one of the Have Not's.............
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:00 AM
Response to Reply #56
77. Me either
We are the displaced middle class. There's no way in hell I can do as well as my parents did, and by today's standards, they didn't have a pot to piss in. But they were able to afford a house in a nice neighborhood... The house I grew up in. That house sold recently. My folks paid $25,000 for it in 1970. It sold a few weeks ago for $750,000. I kid you not. That is the reality in southern California.
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kestrel91316 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 10:21 AM
Response to Reply #77
84. I can't figure out where the people that spend this much on
average middle-class homes are getting the money for the down, the mortgage payments, and their expensive cars to boot.

When they come to me with their cats they usually plead poverty.......but I know where they all live, and they're anything but poor. Maybe lots of people are just foolish with money.
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judaspriestess Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:49 PM
Response to Reply #26
52. if you divide one payment into twelve months
and apply that to the principle you knock off eight years of the mortgage and so on.

There are ways of paying your mortgage off sooner.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 08:54 AM
Response to Reply #52
74. Yes, of course there are ways of lowering your mortgage
But it's still a gamble in this day and age. No matter how careful and how frugal and how smart you are about managing your mortgage, you can still very easily end up with more mortgage than house value because the market is so unstable. It has become very much like buying stocks.
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ReadTomPaine Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:02 PM
Response to Original message
16. To FLIP it, baby!
Where have you been?

Incidentally.. that's also one of the main reasons for the bubble.. but at least some people can say with pride "I got mine!"

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ShaniqaPie Donating Member (22 posts) Send PM | Profile | Ignore Thu Aug-03-06 08:42 PM
Response to Reply #16
29. Thanks you Alan Greenspan
The same house I could buy ten years ago for $100,000 now costs about $300,000. Funny thing is, the monthly payment is still $1000 a month because the fool Greenspan lowered interest rates to near zero. Tell me what my house goes for when rates reach historically normal levels. Hint: The monthly payment will be about $1000 a month. Nobody's getting that big a raise, and no movie stars or CEO's are going to want to live in my house, so answer: $100,000. Just bought recently at historically low interest rates (fixed, no fool), and expect to lose a lot. Gotta live somewhere.

There are some idiots buying townhouses for their kids to live in and go to college. There is no-sh*t a radio ad by a bank promoting the idea that you will double your money in a couple of years. I'll bet there is some weeping and gnashing of teeth over this. In 1929, it was a stock market bubble bursting. Now we've got a housing bubble, a stock market bubble, and a great big aging generational bubble about to quit working, quit paying taxes, and stat collecting pensions and social security. We are all so very screwed.

Do I blame Alan Greenspan? Not so much as I do Richard Nixon. He's the one who converted us to fake monopoly money backed by nothing but the promise that the government and central banks would do things to promote a good economy. Gold-backed dollars are now politician-promise backed dollars.

S.
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 03:40 AM
Response to Reply #29
70. My college friend's dad did that decades ago
he bought and old house that had been made into two apartments.. We lived upstairs, and she rented out the lower apartment. The rent from that apartment paid the mortgage and half the utilities for the whole place.. The downstairs guys got a cool apartment, and when she graduated, dad sold it for a profit..

So basically, he got the tax deduction, she got free rent for 4 years (I paid a whopping $40 a month), and Pops made aprofit when he sold it :)

Everyone won :)


and we had som fantastic parties :)
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OPERATIONMINDCRIME Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:03 PM
Response to Original message
17. What Are You Talking About? Is There Any Context?
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:51 PM
Response to Reply #17
35. The context has been spoken by many.
I hinted at part of it in my OP.

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OPERATIONMINDCRIME Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:57 PM
Response to Reply #35
40. Still Don't See Any Real Context Of Validity.
Millions of people buy homes, afford their homes and hold jobs just fine. If you would've provided more insight in the OP as to why you asked such a broad generalized question, or included a link to some story, or gave a rhyme or reason for the seemingly illogical question of "why do people buy houses", then maybe the concept of the OP wouldn't seem silly to me.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:02 PM
Response to Reply #40
44. Methinks you over-think
I think you are a very smart person and sometimes smart people over-think, and thereby miss the simple.

It was a simple question and it got simple answers... and it got complicated answers too.

Not everyone thinks in terms of context.
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Thu Aug-03-06 09:13 PM
Response to Reply #44
45. Deleted sub-thread
Sub-thread removed by moderator. Click here to review the message board rules.
 
JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 08:51 AM
Response to Reply #44
73. Darn! I missed it! n/t
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omega minimo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:02 AM
Response to Reply #73
78. "Ow. Ow. Humorous Smilies Hurt My Feewings. I'm Tellin'!"
:cry: :cry: :hide: :nopity: :nopity:
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:03 AM
Response to Reply #78
80. haha! ok
:)
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OPERATIONMINDCRIME Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 04:26 PM
Response to Reply #73
91. See The First Reply? It Was Basically A Bunch Of Childish Stuff Like That
Edited on Fri Aug-04-06 04:26 PM by OPERATIONMINDCRIME
and other immature and unproductive attacks.

Believe me, you didn't miss much and consider yourself fortunate for not having had to waste your time in reading it to begin with LOL
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Poppyseedman Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:20 PM
Response to Original message
20. Here is a beautiful home for $65,000
http://www.homesonsale.co.uk/index.php?page=out&id=1590...

Reception Rooms: 2
Bedrooms: 3
Bathrooms: 3
Type of Property: Detached
Price: USD65000
Central Heating: Gas
Burglar Alarm:
Parking Facilities: Drive
Gardens: Front & Rear
Double Glazed:
Near Shops:
Near School:
Loft:
Utility Room
Patio: Yes

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Clark2008 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:55 PM
Response to Reply #20
63. To each his own, I suppose.
I think that house is hideous. I like yards and trees. If I wanted to live like that, I'd live in an apartment.

I also wouldn't want to be bombed by Israel.

:evilgrin:
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 08:50 AM
Response to Reply #63
72. Yeah, to each his own
Some of us can only afford a townhouse like that and you just dissed us all by calling our homes "hideous".

I could afford a house with a yard and trees and all that if I wanted to live in the middle of nowhere USA, but I live in Los Angeles and unless you want to spend half a million, minimum, you will buy a townhouse as shown above and be proud you can do that much.

I swear, people have no sense of perspective at all.
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NMMNG Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 03:46 AM
Response to Reply #20
71. Nice house, great price.
But the location is a bit too unstable for my taste.
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Texasgal Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:26 PM
Response to Original message
21. Ummm... I don't have a big "fancy" home
It,s only about 1200 sq feet.

I bought it for the yard and being able to paint every room in my house another color. I also am gaining equity by doing so... what's your beef?

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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:36 PM
Response to Original message
22. Wellll, I own a paid off home. It's not a great big fancy one, but
it's a nice, 1600sq ft 3BR, 2BA single story with a garage on 1 acre with a fenced yard and utility building. My taxes are $1,000/yr, and I don't want a damn mortgage!

I understand anyone wanting to buy a nice big new house and anticipate the appreciation, but for me, I prefer just not having any expense except the annual taxes.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:37 PM
Response to Original message
23. It made sense when I bought my first home
and again when I sold that one, nearly doubled my money, and bought the second home. It was literally cheaper than rent. Not anymore! I don't know where people are getting all the money it takes.

I divorced and screwed myself in the settlement just to get the hell out of the relationship faster... tired of it all. So I only had enough to invest in a three bedroom townhouse. The neighborhood is going to hell in a hand-basket, but the properties are still selling for $400+!!!

I just put my place on the market. If it sells for what I think it will, I will make a clear $100k profit. I will take my money, lay low, and hope for the best when the dust settles.

I just don't want to have a mortgage right now. I don't want to have any debts, period. I don't want to owe my soul to China, or to whomever it will be that calls in all the loans...
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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:41 PM
Response to Reply #23
28. i dont get it
Whats the difference between a rent and a mortgage??? Mortgage can remain constant and eventually goes away. Rent keeps rising and never goes aways.

I dont understand people sick of mortgages??? Do you live free somehow???
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:45 PM
Response to Reply #28
32. Sure, mortgage can go away... in decades!
Edited on Thu Aug-03-06 08:47 PM by Juniperx
I'm just saying... I've been a homeowner for nearly 25 years and I've done very well. It's been a great investment. It's not looking like such a great investment right now, so I'm taking my marbles out of the game for a while. My last house gained 25% in two years. I KNOW for a fact that it will not gain anywhere near that much in the next several years. I could in fact loose a lot of money that is now in equity if prices fall drastically. Cut and run, yep.

Edited to say... you can't base anything on past performance. And with the economy in a tailspin, and trust me, it is, I just don't feel it's safe to leave my money in a real estate investment. It's like any other investment... you have to buy low and sell high. Well, I'm selling high and I'll bet you dimes to donuts I'll be buying low AGAIN! in about five years.
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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:47 PM
Response to Reply #32
33. you dont want a mortgage or rent when you retire
My mortage should be gone before Im 50.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:49 PM
Response to Reply #33
34. And I won't!
I've made a lot of money in my real estate investments and I feel it will be safer in CD's for the next five years. I could easily loose the whole enchilada if the market goes to hell.
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NVMojo Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 11:56 PM
Response to Reply #23
65. we are feeling just like you, Juniperx. Currently waiting for our house
to sell in one town and we're renting in another and then we'll be laying low. The next two years don't look to good for that old housing bubble. Economists say it has already burst in CA, and the rest of the states will be following soon.
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JuniperLea Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:02 AM
Response to Reply #65
79. Yep, I think it's the only safe thing to do
Unless you've been in your house for 10 years and your equity is far greater than your mortgage, it's a freaking gamble to hold onto a house and mortgage right now.

Don't feel bad. I think we are making a very sound decision and we'll come out of this ok :)
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bridgit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:39 PM
Response to Original message
24. hard to figure, foreclosures are at a record high as well...
we're staying right where we are in our little 1bdrm :thumbsup:
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Raine Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:40 PM
Response to Original message
25. Cause when you pay rent
you are only enriching someone else and are at their mercy, and it doesn't have to be big and fancy.
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bridgit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:44 PM
Response to Reply #25
31. there's a tipping point with rent, if you start paying upwards of 900...
1,000 bucks then yeah, take a look around for a mortgage...but that may put you somewhere near 1,400 to 1,500/month maybe more so :shrug:
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mccoyn Donating Member (512 posts) Send PM | Profile | Ignore Fri Aug-04-06 01:02 PM
Response to Reply #31
89. And that $500 would make a nice investment. -nt
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NewJeffCT Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:40 PM
Response to Original message
27. with the price of gas these days...
it might be worth it to buy a home if it cuts your commute considerably.

My wife & I are considering it.
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:52 PM
Response to Reply #27
36. Bingo. But a problem is,
when you lose your next job (average job length is now under 5 years because employers don't want to retain their workers), you'll be stuck with another job that's some distance away.

And we've all seen how the creditors operate these days. They're not going to continually want to refinance a person who, get this, "can't keep a job".

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Texasgal Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 08:56 PM
Response to Reply #36
39. Not necessarily true.
Most lenders will look at your job history, if you have changed jobs they will look to see if you stay in the same type of work environment.

Example: I am an RN, the hospital laid me off. I went to work for a private surgical center. I am still a nurse. Most lenders understand that and it will not be a mark against you.

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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:00 PM
Response to Reply #36
41. thats what savings are for
:shrug:
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Earth_First Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:01 PM
Response to Original message
42. Because we're tired of building some else's equity...
For ~$200 less per month, we can build a modest home with the principles and responsibility towards a self-sustaining lifestyle that we desire.
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LordLovesAWorkingMan Donating Member (272 posts) Send PM | Profile | Ignore Thu Aug-03-06 09:01 PM
Response to Original message
43. Um, to live in?
Is that a trick question?

Can you please define "fancy?"
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newyawker99 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:37 AM
Response to Reply #43
83. Hi LordLovesAWorkingMan!!
Welcome to DU!! :toast:
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Clarkie1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:29 PM
Response to Original message
46. Not worth it for me to buy.
Edited on Thu Aug-03-06 09:38 PM by Clarkie1
I'm in the S.F. bay area, and it makes much more sense to rent.

I have no interest in putting almost everything I have into paying mortgage payments. It's nice to be able to afford things like nice vacations, a nice car, etc. And right now I'm leasing a very nice condo with a view of the bay...life is good.

If I bought a place like where I'm living now I'd be paying about $1200 a month more than I am paying in rent, plus almost $300 a month homeowners, after a perhaps $75,000 downpayment. I'd rather keep the 75K, invest it, and keep saving.
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lectrobyte Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:30 PM
Response to Original message
47. Because I looked at what I'd been paying in rent for 10 years or so.
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zulchzulu Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:38 PM
Response to Original message
49. I moved to a place where I could afford a decent home...
I like fixing things up, so it's been fun...and it beats paying $2,300/month for a shithole that I'll never own...
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Rockholm Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 09:40 PM
Response to Original message
51. Because People Need A Place To Live.
Edited on Thu Aug-03-06 09:41 PM by Rockholm
Excuse me, but some of us are able to afford nice homes because we have really good jobs that pay very well.
Get off the class crap and the pity pot.
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LWolf Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:00 PM
Response to Original message
53. I bought a little over a year ago.
I couldn't get anything at all, let alone anything close to what I wanted, for the price I paid if I were buying today. The housing market has effectively priced me right out of it; if I hadn't bought then, I not only couldn't buy now, I could barely afford to rent an apartment.

So my place is falling apart and needs more work than I will ever be able to pay for barring some unseen future influx of cash; I'll be living in a run-down fixer for the rest of my life.

But...my payment will never go up. My equity will continue to grow. I don't have to ask anyone for permission if I want to tear something down, paint, plant, etc.. I can do whatever the hell I want, within the law, of course.

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tyedyeto Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:03 PM
Response to Original message
54. My s/o's son just bought a house
He's tired of throwing money down the drain. The house is less than a year old, but 'nothing fancy'. A place to call his own?
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lectrobyte Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:07 PM
Response to Original message
55. It doesn't have to be a big fancy place. And if you're out of a job,
it doesn't matter if you're renting or whatever, you got a problem. BTDTAGTTS.
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lastliberalintexas Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 11:16 AM
Response to Reply #55
88. Yeah, neither the mortgage company nor the landlord will be very
understanding of missed payments due to layoffs. I don't understand why that would supposedly be a knock against buying a home versus renting, unless of course one is only taking into consideration the $500K McMansion type houses. :shrug:
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MazeRat7 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:20 PM
Response to Original message
57. Because its cheaper then renting. (n/t)
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Clark2008 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:45 PM
Response to Original message
59. Because I just got married in January and my family
is tripping over each other.

My house was great for just my son and me and our two dogs, but you move in a grown man and another dog and, Voila, no more room.

Besides, we didn't buy a McMansion - we're moving into a nice 40s era brick A-frame with about a 1,000 more square feet and lots of room for the doggies in the basement/den and backyard.

That's why! :hi:

(BTW, we didn't spend a small fortune, either).
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Fountain79 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:47 PM
Response to Original message
60. Much better to buy than rent...
I rent, I should know. I am basically giving my money to someone and seeing no return for it. At least owning a house gives a person a nice break on their taxes and is an actual investment.
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ellie Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:48 PM
Response to Original message
61. ? I just bought a house
after renting for years. I was tired of stupid landlords who watched everything I did. If they didn't trust me, why did they rent to me? I was never late, they had nothing to complain about. The last straw was my last landlord who told me that I would never find anything better than his $800 one-story house. I found a house in the city that is three floors plus a full basement for a little more than $800. Screw him. I was making him rich while I had nothing to show for all those years of renting.

That's why people buy houses.
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AlCzervik Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-03-06 10:57 PM
Response to Original message
64. i need someplace to store the hundred dollar bills i light cigars with
doesn't everyone?

Why do you think people own homes...a place to live, raise or not raise kids, build some equity maybe?
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On the Road Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 12:08 AM
Response to Original message
66. There's an Underlying 3-4% Inflation Rate
which is pretty much permanent regardless of fluctuations. If you buy in an area that is expanding or improving, it can be considerably more. Factor that out over a working life and a house you buy today will be well worth it when you retire.

On the other hand, you need stability to make it work. And a lot of people are buying houses today with unrealistic expectations. And if you bought six months ago, chances are you have negative equity.
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ProfessorGAC Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 10:44 AM
Response to Reply #66
85. There's A Dual Dilemma Here Too
As real wages fail to rise, and as income security falls, there will come a point at which the added valuation makes the house unsalable. So, if one thinks of a house as an investment, it could actually go up in value (by the minimum 3-4% you mentioned), but then have nobody available to buy it should you want to sell.

So, the valuation increase has done nothing but increase the taxation level, but that investment cannot be recouped.
The Professor
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On the Road Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 11:02 AM
Response to Reply #85
86. Well, I Was Referring to the Value as Determined by Recent Sales
I agree that houses are becoming unaffordable -- I don't know how ordinary people are buying some of properties in urban areas today. When that wall of affordability is hit, prices have got to stagnate or come down.

Personally, I think the fact that prices have spiked and have retreated only moderately is an indicator of general inflation in the future. But we'll see.
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ProfessorGAC Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 11:14 AM
Response to Reply #86
87. Yeah, I Know
That's why i said dual dilemma. Even if the equity is enhanced by a lot early, and then falls a little, there STILL might not be anyone to buy it. So, you face the inflation issue you describe, but could face the possibility that there are no buyers, even if you stand to make a reasonable profit.

Two thorns on the same branch.
The Professor
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Throd Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 12:22 AM
Response to Original message
68. 'Cuz if you can, it beats the shit out of renting.
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tenshi816 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 08:57 AM
Response to Original message
75. Especially when you can just take one
left behind by the folks who get Raptured...
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MadHound Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 09:30 AM
Response to Original message
82. Because for many people it makes fiscal and personal sense
I live in the Mid Missouri area, and renting a comparable place to my house(a twenty acre farm and house) would be more expensive than my monthly mortage payment. In addition, I actually have something to show for all that money, unlike a rental where you have nothing. In addition, if my personal finances go bottom up, or I have an emergency of some kind, I have another fiscal tool to tide me over until I'm back on my feet.

Then there are the personal reasons. In a rental unit, one is always uncertain of how long you will stay in any one spot. Unless there is a dire crisis, I know where I'm going to be living for the rest of my life, which is rather comforting. In addition, when you own a house you can make modifications and changes that you want to, rather than having to deal with a landlord. And then there is simply the soul satisfaction of improving and owning your place of residence. I have put in an orchard, berry bushes, gardens, remodeled rooms, etc. over the past three years since I've bought my house, and it brings me a great deal of satisfaction to see the improvements already in looks and value, along with the satisfaction of helping the earth itself rebuild after being treated harshly for many years.

These are a few of the reasons why people own their homes. It may not make sense for everybody, especially where the housing market is insanely high. But for the most part, owning a home is still a smart move to make.
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Vinca Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 04:40 PM
Response to Original message
92. Why are people buying homes?
Because they need a place to live . . . maybe? Our mortgage payment is a fraction of what rent would be and most places don't allow pets. It's also nice to know you can paint the walls purple and puke pink if it strikes your fancy.
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Catherine Vincent Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 05:00 PM
Response to Original message
93. I bought a home because I got tired of hearing the couple
having sex in the next apartment (and vice versa). :evilgrin:
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Baclava Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-04-06 05:26 PM
Response to Original message
94. I am sooooooooo glad I bought my house when I did...
6 years ago...I couldn't afford to buy where I live now...it's more than doubled in price.
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