Saving for a house

[arminnie]

Mine is the exact opposite. It has appreciated - according to the appraisal district and yes, I did protest - 25% in two years! I wish it hadn't because it's putting me on the hook for higher taxes.

My taxes in New Orleans TRIPLED from when I bought (10 days before Katrina in 2005) and 2007. I was in one of the few areas that did not flood. But I will take higher taxes over being flooded.

 

[dischick4778]

Wow! Thank you all for your thoughts and advice. I appreciate all of it. To those of you finally getting your dream I am so happy for you and you give me encouragement. We have considered if owning a home is the right thing at this point and we believe it is. We are looking to find a nice home and settle in for the future. We are not planning to buy something and up and sell within a few years. So we do believe it would be a great investment for us. The hardest part is the waiting for the savings to build. Because we are also waiting to start a family until we are just about ready to buy the house. That is two major things we want, house and kids, and are getting impatient to have. But it is nice to see so many people who have succeeded and it makes me feel better. Thanks again!!

 

[Boston Tea Party]

My taxes in New Orleans TRIPLED from when I bought (10 days before Katrina in 2005) and 2007. I was in one of the few areas that did not flood. But I will take higher taxes over being flooded.

WHOA.

 

[J3nn78]

We too are saving for a home. We have been saving forever and hope to be able to purchase about a year from now. We live is such an expensive area with sky high taxes too. I just have to make sure we dont overextend ourselves. Just because you are approved for a certain amount doesnt mean you should take that full amount. This is a big reason why so many people are foreclosing because they were overextended.

Gotta make sure we have enough money left over for disney

 

[stitchlovestink]

It's not that owning a home isn't an investment, it's that it's almost always a long term investment. The real estate run up that happened the first part of this decade is unusual to say the least.

There are other benifits to home ownership than just profit though. Even though owning my single family home costs considerably more than owning my old 2 bedroom condo, I wouldn't go back to the condo for anything. I like being able to do anything I'd like on my property and not have the HOA on my case, or my across the hall neighbor complaining about every little thing (actually, my across the street neighbor now calls the city code enforcement for every little thing. I guess some things you can't get away from!). We have more space, a yard, and more privacy. Those are things it's harder to put a price tag on.

I couldn't agree more
I do think that you have to view it as a long term investment. If you're not going to be in an area very long (job transfer or the like), it does not always make sense to buy. And yes, people do lose money on real estate, but more often you do make money. We were in our last house 12 yrs and sold it for 2 1/2 x what we paid. After about 4 yrs, I couldn't have rented a 2 bedroom apt for the same amount we paid for our mortage payment and our payment incl RE taxes and HO ins. I would not like renting w/ kids and having to worry about the landlord increasing the rent too much or deciding to sell the property (or whatever reason) and having to worry about changing school districts for my kids. That's something I'm not willing to compromise on. I agree owning a home can be expensive. But if you stay put, eventually it will be paid off and you will have a place to live when you retire. At that point, your expenses will be ins, taxes, and upkeep. In almost all cases (with the rare exception), these costs will certainly be less than the cost of rent. Rental rates will always continue to rise. just my .02

Mine is the exact opposite. It has appreciated - according to the appraisal district and yes, I did protest - 25% in two years! I wish it hadn't because it's putting me on the hook for higher taxes.

Don't ya hate those tax bills.

 

[stitchlovestink]

We too are saving for a home. We have been saving forever and hope to be able to purchase about a year from now. We live is such an expensive area with sky high taxes too. I just have to make sure we dont overextend ourselves. Just because you are approved for a certain amount doesnt mean you should take that full amount. This is a big reason why so many people are foreclosing because they were overextended.

Gotta make sure we have enough money left over for disney

That and the people who were greedy and wanted that rock bottom interest rate (which BTW was an adjustable) so they could get that McMansion. Now that the ARM has reset/adjusted they're crying the blues. Should've gotten a fixed rate mortgage then. You'd know what your payment was for the life of the loan minus the increase in taxes/insurance. But (again MOST cases) those things are not going to cause your payment to double like the interest rates on the ARMs. I do feel bad for the people who didn't understand how it would work. It's very sad. But I have a 'friend' who chose the ARM because they wanted a cheap house payment. Their house payment isn't so cheap now.

 

[dischick4778]

We too are saving for a home. We have been saving forever and hope to be able to purchase about a year from now. We live is such an expensive area with sky high taxes too. I just have to make sure we dont overextend ourselves. Just because you are approved for a certain amount doesnt mean you should take that full amount. This is a big reason why so many people are foreclosing because they were overextended.

Gotta make sure we have enough money left over for disney

Yes, you are right. It is always best to stay within your means no matter what you might be approved for. Buying a house is not something to take lightly. And that is why we are glad that we have this time during the saving process to really understand all the details that go into it. But in the end it is our goal, and I am looking forward to it - someday.