Just bought a house in Woodbury

NEW -> Contingent Buyer Assistance Program
[quote author="etheran" date=1207639352]Skek,



I can understand why he is asking. Even though I am about to close my escrow soon, I am still curious about what others think. I am a first time buyer so that could be the reason why. Nonetheless, it is simply human nature to just always wonder and think about "if, coulda, woulda, and should've."</blockquote>


Will you be spending more to own each month vs. rent eth?
 
Yes - the key question is how big is that gap in own versus rent $$.



I didn't plan to buy until later this year or if I can pick a place for 35% off their peak in selective places. However, we think we got a place 22% down from peak and have more to go but we love the place and believe that the upgrades in the house that the seller has put in probably implies a 30% drop already. Seller lost a boat load of money.



Nonetheless, at the end of the day, we are paying to own way more than to rent. However, we found the place we love, no homes backing, and wonderful area.
 
[quote author="etheran" date=1207641142]Yes - the key question is how big is that gap in own versus rent $$.



I didn't plan to buy until later this year or if I can pick a place for 35% off their peak in selective places. However, we think we got a place 22% down from peak and have more to go but we love the place and believe that the upgrades in the house that the seller has put in probably implies a 30% drop already. Seller lost a boat load of money.



Nonetheless, at the end of the day, we are paying to own way more than to rent. However, we found the place we love, no homes backing, and wonderful area.</blockquote>


Hey, if you love it, can afford it long-term i.e. will never need to refi, and are comfortable with a potential 20-25% decline from today's pricing, more power to you man. Congrats...



Even if we found a house we loved, it's not likely to be affordable long-term (28% DTI on current incomes is my target) yet, meaning on a jumbo 30-year fixed. I have found places that we liked a whole bunch, but they were only doable on 5-7 year mortgages so a 20% equity loss would create a HUGE refi risk down the line.
 
I started this thread to get general feelings from the public.

Depending on different angles looking at the real estate market, each one of you all has given excellent points.

Believe me guys, I don't let these opinons affect my decision.
 
[quote author="ipoplaya" date=1207642200][quote author="etheran" date=1207641142]Yes - the key question is how big is that gap in own versus rent $$.



I didn't plan to buy until later this year or if I can pick a place for 35% off their peak in selective places. However, we think we got a place 22% down from peak and have more to go but we love the place and believe that the upgrades in the house that the seller has put in probably implies a 30% drop already. Seller lost a boat load of money.



Nonetheless, at the end of the day, we are paying to own way more than to rent. However, we found the place we love, no homes backing, and wonderful area.</blockquote>


Hey, if you love it, can afford it long-term i.e. will never need to refi, and are comfortable with a potential 20-25% decline from today's pricing, more power to you man. Congrats...



Even if we found a house we loved, it's not likely to be affordable long-term (28% DTI on current incomes is my target) yet, meaning on a jumbo 30-year fixed. I have found places that we liked a whole bunch, but they were only doable on 5-7 year mortgages so a 20% equity loss would create a HUGE refi risk down the line.</blockquote>


I am using a 30-yr jumbo loan at a good rate. I do not know what is DTI but I think i have a good cushion. I can cover mortgage payments 3.0x after taxes. I also have two years of interest payments in california munis... I think I am safe for now.
 
[quote author="etheran" date=1207643155][quote author="ipoplaya" date=1207642200][quote author="etheran" date=1207641142]Yes - the key question is how big is that gap in own versus rent $$.



I didn't plan to buy until later this year or if I can pick a place for 35% off their peak in selective places. However, we think we got a place 22% down from peak and have more to go but we love the place and believe that the upgrades in the house that the seller has put in probably implies a 30% drop already. Seller lost a boat load of money.



Nonetheless, at the end of the day, we are paying to own way more than to rent. However, we found the place we love, no homes backing, and wonderful area.</blockquote>


Hey, if you love it, can afford it long-term i.e. will never need to refi, and are comfortable with a potential 20-25% decline from today's pricing, more power to you man. Congrats...



Even if we found a house we loved, it's not likely to be affordable long-term (28% DTI on current incomes is my target) yet, meaning on a jumbo 30-year fixed. I have found places that we liked a whole bunch, but they were only doable on 5-7 year mortgages so a 20% equity loss would create a HUGE refi risk down the line.</blockquote>


I am using a 30-yr jumbo loan at a good rate. I do not know what is DTI but I think i have a good cushion. I can cover mortgage payments 3.0x after taxes. I also have two years of interest payments in california munis... I think I am safe for now.</blockquote>


If that's mortgage, prop tax/MR, hoa, and insurance 3x on gross income less taxes, then you sound fairly safe. That is close to what 28% DTI breaks down to for me. Trying to keep my total monthly nut on the home at around 2.75X total take home after factoring out income taxes, ss/med taxes, maxing 401k and Coverdell IRA, and contributing to my wife's pension. The number is around 3.25X gross less income taxes...
 
"We checked out this house 2 weeks ago. We did not like it. This house violated some Feng shui principles (front door line directly with the back door, stair faces front door directly) which is a no no for me. In addition, there?s something about the layout of the house that my wife does not like."



I was checking out the <a href="http://www.calpacifichomes.com/floorplans/cortile/3.html">floorplan </a>you are buying catchme. Isn't there a door to the outside, in the great room, visible from the front door and almost in a straight line?



Won't your chi just go right through and not circulate through-out the rest of the downstairs? You'll have a chi-less kitchen and dining area. What kind of remedy are you planning?
 
[quote author="ipoplaya" date=1207645129]"We checked out this house 2 weeks ago. We did not like it. This house violated some Feng shui principles (front door line directly with the back door, stair faces front door directly) which is a no no for me. In addition, there?s something about the layout of the house that my wife does not like."



I was checking out the <a href="http://www.calpacifichomes.com/floorplans/cortile/3.html">floorplan </a>you are buying catchme. Isn't there a door to the outside, in the great room, visible from the front door and almost in a straight line?



Won't your chi just go right through and not circulate through-out the rest of the downstairs? You'll have a chi-less kitchen and dining area. What kind of remedy are you planning?</blockquote>


Doors are ok when they are not aligned in a parallel position. It would better if they missed one another by at least 1mm.
 
[quote author="ipoplaya" date=1207645129]"We checked out this house 2 weeks ago. We did not like it. This house violated some Feng shui principles (front door line directly with the back door, stair faces front door directly) which is a no no for me. In addition, there?s something about the layout of the house that my wife does not like."



I was checking out the <a href="http://www.calpacifichomes.com/floorplans/cortile/3.html">floorplan </a>you are buying catchme. Isn't there a door to the outside, in the great room, visible from the front door and almost in a straight line?



Won't your chi just go right through and not circulate through-out the rest of the downstairs? You'll have a chi-less kitchen and dining area. What kind of remedy are you planning?</blockquote>
ipo player,



my house's layout is different than the model home or the plan layout online. The entrance is right in the middle. Door from the great room to patio is about 70 to 80 degree to the right.
 
Both of the plan 3's are fine. The square entry foyer plan has the back door visible from the entry door and that is ok as long there is no overlap. I reviewed the plan and there is no overlap. Congratulation on your purchase of the quarter round entry foyer plan. It is BK certified that front door and back door both have no feng shui conflict. Make sure that you hang a small crystal at the centroid of your foyer ceiling for channeling good chi for your baby and your wife.
 
[quote author="catchmeifyoucan" date=1207653144][quote author="ipoplaya" date=1207645129]"We checked out this house 2 weeks ago. We did not like it. This house violated some Feng shui principles (front door line directly with the back door, stair faces front door directly) which is a no no for me. In addition, there?s something about the layout of the house that my wife does not like."



I was checking out the <a href="http://www.calpacifichomes.com/floorplans/cortile/3.html">floorplan </a>you are buying catchme. Isn't there a door to the outside, in the great room, visible from the front door and almost in a straight line?



Won't your chi just go right through and not circulate through-out the rest of the downstairs? You'll have a chi-less kitchen and dining area. What kind of remedy are you planning?</blockquote>
ipo player,



my house's layout is different than the model home or the plan layout online. The entrance is right in the middle. Door from the great room to patio is about 70 to 80 degree to the right.</blockquote>


Ah, good for you catch. I was worried your downstairs would be mostly chi-free...



I was being a little snarky as chi is only something I have really only considered much via kung fu movies. Chi-less kitchen... I'm probably the only one, but that just brings a simle to my face every time I type it... Does more food get burnt when you cook in a chi-less [IPO giggles] kitchen?



Based on a quick Google search, one can evidently make the chi turn with strategically-placed house plants and keep it from rushing out of the house with wind chimes. I know some of you take this stuff seriously, but it's just not for ole IPO.
 
<blockquote>I forgot to mention about this. My agent said she tried to pull some info (tax owe, # missing payments...) from selling agent but this person stayed pretty tight lips about it. Who knows what's gonna happen.</blockquote>


Please, please tell me you didn't believe this. I would give you this info, or show you how to get this <strong><em>free</em></strong> public info, but then I would deserve 5 times the commission of your agent on principle alone, and I only accept ? and gold. But, I know 3 year olds that could find that info. No... I am being serious and I am not just being snarky, I really do know of a 3 year old that knows how to use google, that I would bet a beer on it, that they could find it. I mean, losing to a 3 year old to bowling is one thing, but a google search... that is pathetic. Ask your agent who Chriss Street is, and if they do not know, fire em faster than you can say IHB.



ipoplaya - Re: your comment about builder financing, maybe... but 99.9% of the time you are still paying for it. I was about to leave a snarky comment, but I am too happy to see you push the cup of Kool-Aid away. That, and I am pretty sure I have ranted about it before, and the secondary market is the same for all. Especially for StanCrap, it's not like they have many favors left. Most likely the buyer is paying for it in some shape or form, and don't be fooled.
 
<blockquote>I would give you this info, or show you how to get this free public info, but then I would deserve 5 times the commission of your agent on principle alone, and I only accept ? and gold. </blockquote>


I was hoping you would respond to this, <strong>graph</strong>. I am a relative newcomer to this board and I don't have a financial mind but your posts about the availability of this information are tucked away in the recesses of my brain. When we're ready to buy I'm going to make sure I have all of this information in my hands before I go into any negotiation.



This grasshopper is grateful to you and the other sensei on this board!
 
[quote author="catchmeifyoucan" date=1207642667]I started this thread to get general feelings from the public.

Depending on different angles looking at the real estate market, each one of you all has given excellent points.

Believe me guys, I don't let these opinons affect my decision.</blockquote>


You started a thread to get some other opinions, BUT in your own words "I don't let these opinons affect my decision."



Why not? Isn't seeking advice, absorbing it, and then making an informed decision a VASTLY more intelligent/logical way to go about a major decision?



Or are you driven by emotion, the arch-enemy of logic?



Logic would DEFINITELY say that you should rent (an IDENTICAL UNIT can be rented!) for less money, saving more (for your downpayment, preferably), then buy at a lower price point (which is assuredly coming. It's not a question for most folks here - it is reality).



This would allow you to enjoy the 'unit' you are planning on buying (and you get to test drive it, which is great, you might find it doesn't suit you!), save more money for a larger downpayment on the unit when the COSTS OF THE UNIT ARE DOWN. This will make a DRASTIC difference in your actual home payment.



Let's say you wait 2 years, renting an identical unit for around 2300-2500. Then you buy in 2010 when the home is (very conservatively) $350K. You put down your downpayment of around $100K, have a $250K mortgage at... let's say 7% (rates go up).



Your payment is now $1663.26 + taxes, HOA, etc... You have to be coming in AT LEAST $700+ less per month... probably closer to $1000 less...



And you lose NOTHING. You can still live in the same style unit for that entire timeframe...
 
You must log in or register to reply here.
Back
Top