pennquaker09
Brilliant_Rock
- Joined
- Nov 2, 2007
- Messages
- 1,943
How much square footage are we talking about?
Date: 11/30/2009 12:43:42 PM
Author: Italiahaircolor
Date: 11/29/2009 10:16:36 PM
Author: Mara
Instantly upon moving in, we''d have a grand total of 140k in equity if we didn''t use a down payment (which we are). Do you see the ''smart buy'' here? Considering the house is move in ready, it''s an even better deal. Even if I had to float two mortgages for a year, I''d still be ahead.
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Well actually, you wouldn''t have anything in equity technically until you sold the property and were holding that $140k in your hand. And even then after realtors fees etc it might only be like $100k.
If you guys floated two mortgages for a year ...using funny money numbers here... but lets say 2k each mortgage, then the actual situation is you guys have paid 24k cash out of pocket for the 2nd mortgage; and you might have 140k in the house but if you haven''t sold it, it''s not your cash yet.
The house might be a ''great deal''...but it''s all just funny money until the house has sold and you may not resell it for a few years as well. I would buy the house if you wanted to live in it now and think it will appreciate over time. But yeah selling right now could be a PITA for sure. That''s why we decided to rent ours.
What does your husband think? You mention him not letting *you* make an offer until you''ve seen it... does he have an opinion either way?
And again this might all be a moot point because even if you guys offer, foreclosures are so iffy. But good luck either way.
My husband wants me to be happy...he''s extremely easy going and laid back by nature. I am the decision maker, although I do depend on his input on these large purchases, he''d never ''tell me no'' if this is something I really want. Mark is equally impressed by this home...and he''s excited about the potential golf course, gym, club house and all the other perks of community living. He sees the benefit and he''s all for it as well...just not until we''ve actually seen the home...however, this morning he did call the agent and ask to see ANY other row home in the development to get a feel for the floor plan and then we''ll put in an offer.
As far as the equity...maybe I said that wrong. My current home has (for the sake of the posting) 50k in equity. My DH bought it at the peak of the market and paid full asking. This new home we''re looking at is 140k below ''fair market value''. So...even if I had to ''give my house away''--making just enough for realtor fees, the new buyers closing fees and what not, I''d still be moving into a new home that, brand new, was worth more than mine will be 5 years from now.
The flip side is, my DH and I have been saving to buy a home for a couple of years now. We''re not talking putting our pennies in a jar either. We''ve realized what it would take to get into what we want and we''ve saved hard. We have a comfortable nest egg that we wouldn''t need much of to get into this new home, leaving a nice cushion for ourselves in the interim months that may leave us floating two mortgages.
My condo is in a desirable area right by a college, a 15 minute drive to down town Chicago and a 5 minute walk to Lake Michigan. Being more than a one bedroom, I have never had issue finding tenants. Selling it is never something I''ve entertained before...but if 2011 changes my circumstances, I would happily unload it if need be...but as of right now, I really don''t look at it as ''debt'' because it''s actually bringing in a healthy income.
I'm not Italia, but I believe is the same as current condo. That would be A total dealbraker for us. I'm sure this is not her case but were we live a condo isn't desirable for some reason, most couples in our age group want: location, extra room and land. Yeah a bit more $ but much better results IMHO. But again, every couple has their own dynamics.Date: 12/2/2009 4:49:22 AM
Author: pennquaker09
How much square footage are we talking about?
Yes...not good either...Date: 12/4/2009 11:51:53 PM
Author: tigian
Any updates Italia?