Just wondering if anyone out there looking to buy is thinking of holding off to see if prices go down, we are both still living at home and would love to buy a house but LI is crazy! i am thinking that maybe we should rent for a year or so and see if it gets any better and just save so we can have a heftier down payment. Then again interest is low, I am so confused!!
Sasha96
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Re: House hunting
We're looking to buy a home and we think we have the contract for the property our offer was accepted on in the mail (that is a long, long story!). My FH and I have been living at home (we didn't even go away to college) and would like a place of our own. While we could rent, we feel that we have good salaries/jobs and the desire to own. Plus, with the interest rates as low as they are now, we can afford more than if the rates were higher. I can't imagine the interest rates going much lower. We would like to build equity and be able to use the resell of this townhouse (we're likely to get) to help us buy a house when we are ready. That way we can get a house that we'll want to stay in and make our home for years to come.
I don't know what housing prices are going to do on LI. Our market is so crazy that I can't predict it. Prices may slow down or even plateau but I don't think they will go down. It's a tough decision because it is one of the biggest decisions you'll make in your life. I wish you all the best in making a decision!
michele31
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Re: House hunting
Prices are not going to drop by 10's of thousands. You might see a slight drop in certain areas but a $330K house will be $315K. When that begins to happen interst rates may go up a bit too. Renting for a year is a good way to get used to living together and figure out where you want to live. But it is very expensive to rent also. There is a lot of stress looking for a home, getting a mortgage etc..when you are also planning a wedding. Some people can do it, but others really cannot handle all the pressure. Also, when you own you need A LOT of stuff such as a lawn mower, more furniture etc... You are also financially responsible for a lot more than if you rent. If you have the money for the wedding and a good downpayment, and feel you can handle planning and house hunting then try it. But if you are a bit hestitant I would hold off for a few months.
Claud2001
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Re: House hunting
Thursday's Oprah show had some great advice for those of us who are in the market for a new home. I think it's important to understand that buying a home is not just about how much stress you can handle (although that is a major factor), but what you can comfortably financially handle.
First, you need to be honest with your financial situation. Make sure to discuss with your FH ALL of your debt and his debt, credit ratings and current incomes. That is step one. Also, look at what your expenses will be for your wedding. Are you planning on paying everything in cash, or are you using credit to pay for your wedding? You will not be able to afford a home if your combined debt after the wedding exceeds both your incomes.
Also, some advice that was given on the show was very valuable. If you don't have a sizable down payment for a home - at least 20% - you can 'play house' for six months to a year to help you save. For example, if you want to buy a $300K home, you will need at least $60K for a 20% down payment. Figure that your monthly mortgage payment will be about $1900 a month (roughly) depending upon property taxes and insurance. While you are both still living at home or renting, see if you can easily put together that mortgage payment, and save it in the bank. If you are still able to live the lifestyle you want AND make your 'fake' mortgage payment, AND save some money for disposable income, THEN you are ready to buy and afford a home. Edited to add that at the end of the year, you'll already have saved enough for a sizable down payment.
I thought that was a very good test for whether or not you are financially ready to afford a home of your own. Good luck!
tarakinspa
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Re: House hunting
Wow thanks trying to make FH read what you wrote right now!
Sassy
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I heard about that show too, and it is very good advice, I think. I think what FH and I may do is buy a Condo first, get our feet wet, lol, something that we know won't be a problem to afford, as oppossed to a 300,000-350,000 house. So we could buy the condo now, and after like 2 years, sell it and move on to our dream house. Plus, the taxes in LI are a killer We want to take our time.
curly2003
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Re: House hunting
We just got back from a few open houses and I get more and more depressed all the time. We don't want to rent but in the end we might have to. We REALLY wanted to buy a home but I do not think prices are going to plummet anytime soon and the houses we are looking for in the 250-285 range are GARBAGE!!!!!
Sassy
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You are so rightm you cannot get anything decent on LI for less than 300 these days, that's why we're doing the condo route, ever think about that Curly?
curly2003
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I have thought about that Liz, but FI and I want a family pretty soon after the Big Day and I REALLY wanted a back yard and stuff. I don't know. We've been looking for over a month and it's very frustrating. We just have to wait and see because we still have 11 months
drjenn10
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Re: House hunting
That sounds like good advice from oprah! I am just starting to apply for pre-qualification for mortages. I plan to buy a house ASAP, I'm tired of giving my money away to a landlord each month, and I am tired of apartment living. Yes there's plenty of crappy homes out there , I am going to try to buy new if I can afford it.
tarakinspa
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Re: House hunting
But have you looked at the condo prices?! A 2 bedroom in smithtown was $369k They are just as expensive as houses and you still have to pay maintenance fees which is like paying rent, and then the resale is questionable. My FH wants to go this route but i am so unsure about it.
curly2003
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Re: House hunting
That't excatly what I was doubting Condo prices are also through the ROOF!!!!!!! It's insane. I saw a condo listed in Huntignton for 280K. What the F***
Sassy
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Aw maaaaan, I didn't know Condo prices were that high, that stinks !!! WTF !!!!!!!
NIHA
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I have to say that somethings that Suze Orman on Oprah said don't apply to NYC Metro area. She said that your monthly mortgage payment should not be more than 25% of your salary. Maybe this applies in other parts of the country, but many people in LI and NYC pay close to 50% of their salary in rent/mortgage.
curly2003
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45% of our salary is what my broker calculated as far as the loan process. That's 45% of mine and 45% of Fi's salary going to a MORTGAGE!!!!!! I guess we don't HAVE to eat
pmb
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Re: House hunting
We are going to start looking in January. We've spoken with a mortgage counselor and it takes awhile for everything to fall into place with the mortgage so we are going to start working on that next month. That way, when we go to look for houses, the mortgage will be waiting. I am not comfortable buying a house at this point, because i think it is going to be a struggle so we decided to look for something that has an apartment in it that we can rent for a few years.
Concerning the down payment - you really need to take a good look at the numbers when determining how much to put down. Sometimes, you might be better off only putting 10% down because the 20% will only make your mortgage payment go down by $60 or so. Also - when you put less than 20% down you have to pay PMI until the equity of your house equals 20% of the value. Home prices are rising at the rate of 15% or more a year around here so it might be worth it just to pay the PMI and saving the extra money that you would have put down as a safety.
tarakinspa
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Re: House hunting
sigh.... this is so overwhelming!! I wrote an email to Suzie orman for help
Sasha96
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Condo prices are quite high; most are similar to small homes in cost. But it depends on what you are looking for in a home. When you compare the quality of houses at the same price as condos, the houses are typically in need of much more work. The condos mostly need aesthetic work, some updating. You do pay maintenence but you need to look at what you are getting for the cost (just gardening/shoveling, etc. or amenities too, if so how many). We have been looking for almost 6 months now and are close to having a contract on a townhouse. For us to afford to buy on LI means that we can't spend much fixing it up (or gutting the house, in some cases!). We look at houses and condos and haven't seen any houses we could see ourselves in.
I think that what you anticipate your lifestyle to be over the next few years will be a determining factor in the type of housing you purchase. If you are thinking of starting a family right away, then a home with a yard may be very important.
house prices WILL NOT be coming down in the future if the stock market continues to go down the way it does...
since people are pulling out of the SM...most peope put money into real estate...creating more of a demand...
DH and I are planning to leave NY, but if we weren't we would look into getting a condo...it really makes sense to get some kind of equity...
Buttafli1277
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Re: House hunting
Tara as you know FH and I have been house hunting for a long time. There is definately crap out there. I don't even think the prices will drop, I think they will just stay where they are. FH feels that it will be hard to save more money when renting. When you rent it's like giving a partail mortgage payment to someone. As for a condo, you might as well buy a house. They are just as crazy expensive as a house. FH is working so much overtime right now cuz he's so determined to buy a house. Even though we are pre approved, our parents don't want to see us struggling financial with loads of bills. This is definately a stressful decision.
