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Ameristanians....Don't Buy Your Home Yet

Nakosis

Non-Binary Physicalist
Premium Member
If you paid top dollar, & have a fixed rate loan, you should be OK.
But if you have an adjustable interest rate loan....uh oh.
Yes, I made sure it is fixed.
Also the mortgage payment is $1600 less than I was paying for rent.
(Rent in Calif vs mortgage in Florida.)
 

mikkel_the_dane

My own religion
Yes, I made sure it is fixed.
Also the mortgage payment is $1600 less than I was paying for rent.
(Rent in Calif vs mortgage in Florida.)

Well, from Denmark. Bought at a good time. Used to the low rate to the max, as it allowed the wife to get a new education and better work. Switched to fixed rate in time.
 

Revoltingest

Pragmatic Libertarian
Premium Member
Yes, I made sure it is fixed.
Also the mortgage payment is $1600 less than I was paying for rent.
(Rent in Calif vs mortgage in Florida.)
But don't forget that owning has additional costs...
- Property tax
- Special assessments
- Insurance
- All utilities
- Maintenance
- Replacements
- Losses
 

mikkel_the_dane

My own religion
But don't forget that owning has additional costs...
- Property tax
- Special assessments
- Insurance
- All utilities
- Maintenance
- Replacements
- Losses

Yeah, I know. But that is a part of it as a modern human in such an economical system for the 1st world in general.
 

JustGeorge

Not As Much Fun As I Look
Staff member
Premium Member
I bought in 2018. Fixed interest rate.

My well-off relatives advised I buy the most expensive house I could in the best area I could, count on the fact we'd make more money eventually, and just eat beans and potatoes for a few years.

I didn't listen. I bought over 20k under my loan allowance(which was 80k; bought at 56k). Assumed **** would happen, and the lower price would be beneficial. **** did happen(Covid). This time, the blue haired poor person was right. So glad to have bought under budget.
 

Revoltingest

Pragmatic Libertarian
Premium Member
I bought in 2018. Fixed interest rate.

My well-off relatives advised I buy the most expensive house I could in the best area I could, count on the fact we'd make more money eventually, and just eat beans and potatoes for a few years.

I didn't listen. I bought over 20k under my loan allowance(which was 80k; bought at 56k). Assumed **** would happen, and the lower price would be beneficial. **** did happen(Covid). This time, the blue haired poor person was right. So glad to have bought under budget.
To buy the spendiest home one can means
a bigger loss if prices fall. I prefer to treat
home ownership as buying what's needed.
You go girl !!
 

mikkel_the_dane

My own religion
I bought in 2018. Fixed interest rate.

My well-off relatives advised I buy the most expensive house I could in the best area I could, count on the fact we'd make more money eventually, and just eat beans and potatoes for a few years.

I didn't listen. I bought over 20k under my loan allowance(which was 80k; bought at 56k). Assumed **** would happen, and the lower price would be beneficial. **** did happen(Covid). This time, the blue haired poor person was right. So glad to have bought under budget.

The wife and I did the same and that was over 20 years ago now.
 

Wu Wei

ursus senum severiorum and ex-Bisy Backson
I know it's obvious to most, but this might be good advice to some.

What's happening?
Loan interest rates are rising.
Monthly loan payments are rising.
This reduces how much buyers can borrow,
which reduces how much home buyers can pay.
In response, sellers will reduce prices.
But the market responds with some delay.
(Techie types call this "phase lag".)
So falling prices will continue to fall.
Exercise patience.

The danger?
In 9.11.2001 the terrorists attacked.
Businesses began contracting.
People had reduced ability to pay their loans.
This came to a head in 2007, when loan defaults
became risky to survival of lenders.
People who owed more than their house was
worth were "under water". They couldn't even
afford the cost of selling, so they couldn't move
to where better jobs were.
Prices are at an all time high.
"Collapse" in home prices is coming, experts say
So the potential for prices to fall is great.
An economic hiccup could put recent buyers far under water.
Don't get caught in that.

I can't predict the how much or how soon of anything.
Save for your down payment.
Rent or live with your parents til prices fall.
Good luck.

But I too already bought, and paid for my home..... and at least 2 of 3 others are bought and paid for too........ NOW you tell me
 

Secret Chief

nirvana is samsara
Well, bite me,
This is what I in effect hate about this forum. The USA is not in the world in one sense and in another the only country in the world.

So for us non-Ameristanians it shouldn't be in the material world and consumer affairs. It belongs in a forum, that is not this. ;) :D
Prices have been going up for about 2 years, but hey this isn't America.
 

Alien826

No religious beliefs
In general, hang in there and don't panic. Over the years the house market and the Stock Market (invested conservatively) have been two of the best investments you can make.

Remember, you only lose money when you sell. When the markets crashed in 2008 my savings halved. Then over a few years they recovered the losses and continued on up. They are now down a bit, it won't last. If you have a house and can afford the mortgage (and other) payments, don't worry if you are under water. Nobody is going to kick you out of your home. With a fixed rate mortgage, the rate can't go up. Rent can, and does. Wait. Over the years, the trend have been up.

Here are things that can be disastrous though.

A variable rate mortgage.
Losing your job.
Needing to take money out of savings, as opposed to just wanting to.

I recommend keeping some cash in a readily available place (say a savings account) to tide you over.
 
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