Thread: To buy or not to buy, that is the question...

Unfortunately buying a house has become a complicated financial decision based more on investment than anything else. When I was living in the L.A area people would line up for weeks outside a new development and buy sight unseen. They would live there a year or two and sell.

I remember a time when buying a house was a quality of life issue and nothing more. "The American Dream" was what they called it.

Too bad times have changed.

Originally Posted by Cangooner

So...

any clearer about buying that house now?

FWIW, buying my place was the best decision I ever made, but it made sense *for me*. Whether or not it does for anyone else depends on their situation, the market, what they are looking for, and how they want to live. So if you want to, and you're able, then buy. Before signing the papers though, be sure in your mind that you're not making yourself "house poor". I.e. don't over-extend yourself. I could have spent more on a place when I bought here, but am glad I didn't. That extra $$ has gone towards things that matter to me, mostly my workshop, forge, etc.

Best of luck, whatever you decide.

Yeah, same sentiment here. If I were young and single again I might consider more modest accomodations for a time to put away a REAL nest egg so that when I did actually have a family (which was the main reason I bought a home and decided to put down roots) I had something in the pocket to put down. I have known a couple of people who were warehouse dwellers. If you can deal with the lack of the Leave It To Beaver surroundings and have a long range plan that can put you in the quick financially. I wouldn't do it like the one guy who showered under a garden hose and crapped at the Merita Bread Box next door for a decade. I would however consider a place at a complex a customer owns. They have plumbing which could be modified and the units are 1100 sq. ft. plus big enough to build in a second level. He rents them for $450/month. So for $450 a month you could have 2000 sq. ft. for a few years and save $10.8k/year on a comparable house. 5 years of that would give you $54k in pocket to put down...just sayin'. It's not for everyone but I might consider it given it to do again.

Originally Posted by Cangooner

So...

any clearer about buying that house now?

FWIW, buying my place was the best decision I ever made, but it made sense *for me*. Whether or not it does for anyone else depends on their situation, the market, what they are looking for, and how they want to live. So if you want to, and you're able, then buy. Before signing the papers though, be sure in your mind that you're not making yourself "house poor". I.e. don't over-extend yourself. I could have spent more on a place when I bought here, but am glad I didn't. That extra $$ has gone towards things that matter to me, mostly my workshop, forge, etc.

Best of luck, whatever you decide.

Haha this thread has some great advice and definitely helped. I am house hunting, just researching which areas will fit me best. I most certainly will not go overboard. A nice, small place is all I need.

Originally Posted by thebigspendur

Unfortunately buying a house has become a complicated financial decision based more on investment than anything else. When I was living in the L.A area people would line up for weeks outside a new development and buy sight unseen. They would live there a year or two and sell.

I remember a time when buying a house was a quality of life issue and nothing more. "The American Dream" was what they called it.

Too bad times have changed.

Times have definitely changed. I know many people my age and older who speak as if they'll never be able to buy a home. I think that's part of a larger narrative, however, irrespective of financial situation. We're living in times where ownership is increasingly discouraged. It's all about consumption: buy, use, toss, repeat.

You might lose everything you own. An earthquake, a riot, floods, bushfires etc. Does it stop you buying a car, and other expensive things? You should of course take out insurance on the house and get a mortgage. If for whatever reason you are forced to leave your home and lose everything you have the bank will have paid for (part of) the house.

In this country you need to have additional insurance for earthquakes, floods and many other things. Some can be prohibitively expensive and most don't have it. Also certain acts of nature are never covered.

Originally Posted by thebigspendur

In this country you need to have additional insurance for earthquakes, floods and many other things. Some can be prohibitively expensive and most don't have it. Also certain acts of nature are never covered.

This brings up a good point to myself.

I will have to reread my policy and talk to my agent.

The only major one that has been mentioned is that I know I am not covered for damage from a war. But now I am wondering if that includes riots and terrorism.

After Hurricane Andrew a lot of the insurance companies wanted to stop offering coverage in coastal areas and put riders on for hurricanes but the governor and the state insurance commissioner assured them they would never insure another thing in Florida if they did so.

Originally Posted by PaulFLUS

After Hurricane Andrew a lot of the insurance companies wanted to stop offering coverage in coastal areas and put riders on for hurricanes but the governor and the state insurance commissioner assured them they would never insure another thing in Florida if they did so.

I personally don't mind if you live in a hurricane or flood zone but what makes me mad is when you want the government to bail you out when the once every 5 or 10 year storm shows up.

P.S.The one I can feel sorry for is a tornado because as far as I can see they are very random. They can take one house in the middle of many out with not a scratch on the neighbors.

Originally Posted by 32t

I personally don't mind if you live in a hurricane or flood zone but what makes me mad is when you want the government to bail you out when the once every 5 or 10 year storm shows up.

P.S.The one I can feel sorry for is a tornado because as far as I can see they are very random. They can take one house in the middle of many out with not a scratch on the neighbors.

Very true. Having lived through the 2011 Joplin, MO tornado it was crazy to see houses gone on one side of the street and on the other nothing, not even a scratch. Surgical precision.

Originally Posted by 32t

Water runs downhill.

Depends where the hill is.

Never seen a waterfall going uphill, have ya? Oh and by the way all water falls from the sky, even the stuff underground, and whatever river you have anywhere. And no matter what colors beer is Rocky Mountain clear, or so s it magic uphill running water, pissed from a golden unicorn?