How much house to buy?

[woowoo]

Wow,
There is alot of debt in this thread
Just for giggles...

My Crib:
1000 sq ft. house
3 Bedroom 1 bath
Single story brick ranch on slab
Large lot in an older subdivision
Location: Southern indiana

76k Purchase price
8k down
Financed 68k@7% (va)
Payment with tax and insurance:$540 a month

Edit:
I make about 55k
My wife stays at home with our five year old daughter.



I owe about 58K after five years of payments
I will pay this house off and own it.

 

OP, I work in the RE market, if you need any general advice feel free to PM me.

 

[Jumpem]

Originally posted by: Fingolfin269
This has nothing to do with being a jerk man. I worked while in college while also taking the maximum amount of hours allowed per semester on a few occasions. I'm not trying to talk down to anyone who takes student loans but am merely pointing out why a lot of people end up taking student loans.

And I definately agree with Mugs on this. Most people would be just as well served going to a state school as opposed to a $40k/yr. private institution. Your college degree and where you receive it is not what determines whether or not you are successful in life.

Ok, maybe I took what you said the wrong way. I worked during my first two years of college, but after that I was just too busy with projects and homework to fit a job in.

My school was a private school, but I have no doubt it's what got me a great positon after graduation.

 

[dxkj]

Originally posted by: SampSon
Don't buy more house than you need.

I don't agree with that... you need to factor in that you will be selling the house in X number years (unless you are certain you will live there for 30 years)

It is important to buy what you need, but also buy what will be popular when you resell.

 

[dxkj]

Originally posted by: Jumpem

Originally posted by: Fingolfin269
And the problem with student loans isn't necessarily that people get student loans. It's that people get student loans and don't work while in school therefore accruing additional debt that could be relieved by actually working instead of drinking.

Hey, you know what... don't be a jerk.

I went to college and have my share of college loans. You try working when you have to spend 40+ hours a week on a project for a single class. For some majors and schools work isn't an option.

When I went to school i worked between 30 and 70hrs a week (depending on which semester you look at)

I still had to take out loans, and I didn't drink... gotta love blanket statements.

 

Originally posted by: dxkj

Originally posted by: SampSon
Don't buy more house than you need.

I don't agree with that... you need to factor in that you will be selling the house in X number years (unless you are certain you will live there for 30 years)

It is important to buy what you need, but also buy what will be popular when you resell.

That is automatically factored into what you need. You don't need a 5bed 3 bath 4000 sq foot center hall colonial if you're just a couple. You still wouldn't need it if you had 3 kids.

All houses will be "popular" when you resell. Real estate is a finite resource. I have not see the popularity of any particular type of housing increase or decrease dramatically in any historical sense. Except when a "new" type of design is created and becomes popular. Though at this stage in the game the designs of houses are very set and there isn't a whole lot of room for change.

The only factor in popularity of real estate is location, trust me on that.

I've dealt with thousand of home owners, and I deal with at least 20 new clients every week. You do not want to buy more than you need and you never want to over extend yourself financially. Also, you really don't want to buy a house with future profits in mind. You buy a house to live in.

 

[dxkj]

Originally posted by: SampSon

Originally posted by: dxkj

Originally posted by: SampSon
Don't buy more house than you need.

I don't agree with that... you need to factor in that you will be selling the house in X number years (unless you are certain you will live there for 30 years)

It is important to buy what you need, but also buy what will be popular when you resell.

That is automatically factored into what you need. You don't need a 5bed 3 bath 4000 sq foot center hall colonial if you're just a couple. You still wouldn't need it if you had 3 kids.

All houses will be "popular" when you resell. Real estate is a finite resource. I have not see the popularity of any particular type of housing increase or decrease dramatically in any historical sense. Except when a "new" type of design is created and becomes popular. Though at this stage in the game the designs of houses are very set and there isn't a whole lot of room for change.

The only factor in popularity of real estate is location, trust me on that.

I've dealt with thousand of home owners, and I deal with at least 20 new clients every week. You do not want to buy more than you need and you never want to over extend yourself financially. Also, you really don't want to buy a house with future profits in mind. You buy a house to live in.

Ok.... I had received earlier advice about not buying a large home in a small neighborhood, or a small home in a large neighborhood. I guess as long as its a house, someone will want it

 

Originally posted by: dxkj

Originally posted by: SampSon

Originally posted by: dxkj

Originally posted by: SampSon
Don't buy more house than you need.

I don't agree with that... you need to factor in that you will be selling the house in X number years (unless you are certain you will live there for 30 years)

It is important to buy what you need, but also buy what will be popular when you resell.

That is automatically factored into what you need. You don't need a 5bed 3 bath 4000 sq foot center hall colonial if you're just a couple. You still wouldn't need it if you had 3 kids.

All houses will be "popular" when you resell. Real estate is a finite resource. I have not see the popularity of any particular type of housing increase or decrease dramatically in any historical sense. Except when a "new" type of design is created and becomes popular. Though at this stage in the game the designs of houses are very set and there isn't a whole lot of room for change.

The only factor in popularity of real estate is location, trust me on that.

I've dealt with thousand of home owners, and I deal with at least 20 new clients every week. You do not want to buy more than you need and you never want to over extend yourself financially. Also, you really don't want to buy a house with future profits in mind. You buy a house to live in.

Ok.... I had received earlier advice about not buying a large home in a small neighborhood, or a small home in a large neighborhood. I guess as long as its a house, someone will want it

It all depends on location. If you buy the #1 house in a not so desirable neighborhood then the sale may be a tougher sell in the future, but it will almost always go.
If you buy one of the smaller houses in a very desirable neighborhood then the sale will be a lot easier. Typical buyers will sacrifice size, quality and amenities in order to live in the area they want to be in.

 

[nakedfrog]

Originally posted by: SampSon
It all depends on location. If you buy the #1 house in a not so desirable neighborhood then the sale may be a tougher sell in the future, but it will almost always go.
If you buy one of the smaller houses in a very desirable neighborhood then the sale will be a lot easier. Typical buyers will sacrifice size, quality and amenities in order to live in the area they want to be in.

Damn skippy. That's exactly what I did, closing in 4 hours. No central A/C, no garage, but the right place and right price.

 

Originally posted by: nakedfrog

Originally posted by: SampSon
It all depends on location. If you buy the #1 house in a not so desirable neighborhood then the sale may be a tougher sell in the future, but it will almost always go.
If you buy one of the smaller houses in a very desirable neighborhood then the sale will be a lot easier. Typical buyers will sacrifice size, quality and amenities in order to live in the area they want to be in.

Damn skippy. That's exactly what I did, closing in 4 hours. No central A/C, no garage, but the right place and right price.

Of course you did. Home buyers are as predictable as it gets.

 

[SouthPaW1227]

Originally posted by: SampSon
[QTypical buyers will sacrifice size, quality and amenities in order to live in the area they want to be in.

True, true. And I also agree about private colleges...aside from Ivy League names on a resume, everything else is esentially equal. I'm going to a State university (granted, it's got of the top engineering programs around, and one of the only PGM degrees on the east coast) and I'm working myself to death while maintaing a good GPA so I come outta college completely debt free. I graduate next fall and I'm debtless to this point and have been saving what I could....and I've already paid off the lady's engagement & wedding ring. I've also been blessed w/ an amazing internship that pays VERY well and will hopefully lead to a secured position right outta graduation. Reading this house stuff has been great food for thought

 

[nakedfrog]

Originally posted by: SampSon
Of course you did. Home buyers are as predictable as it gets.

No one wants to live in the ghetto

 

Originally posted by: nakedfrog

Originally posted by: SampSon
Of course you did. Home buyers are as predictable as it gets.

No one wants to live in the ghetto

Unless you sell crack.

 

[markgm]

OP, we're pretty much in the same situation financially. I'm single and getting a place up in CT for about 250k. I put 5% down with about 1800 or 1900 a month for mortgage payments. The loan I got was for 30 years 5.75% no points. I plan on renting out a room or two and paying the thing off in 5 years.

I struggle with the paying off the house vs. investing argument every day. On one hand you have a safe investment, and on the other you have more money for retirement. If I create one more Excel spreadsheet comparing the two I think my computer will kill me.

Sometimes it's not about money, but about emotions. What are you comfortable doing? I think you could easily swing the payments. Where people get in trouble is when you need both people working to pay the bills, then you have a big 'uh oh' if one loses a job. How you are now you can swing it, and if your wife gets a better job, then bonus!

Only 63 more days until closing!

House

 

[dxkj]

Originally posted by: markgm
OP, we're pretty much in the same situation financially. I'm single and getting a place up in CT for about 250k. I put 5% down with about 1800 or 1900 a month for mortgage payments. The loan I got was for 30 years 5.75% no points. I plan on renting out a room or two and paying the thing off in 5 years.

I struggle with the paying off the house vs. investing argument every day. On one hand you have a safe investment, and on the other you have more money for retirement. If I create one more Excel spreadsheet comparing the two I think my computer will kill me.

Sometimes it's not about money, but about emotions. What are you comfortable doing? I think you could easily swing the payments. Where people get in trouble is when you need both people working to pay the bills, then you have a big 'uh oh' if one loses a job. How you are now you can swing it, and if your wife gets a better job, then bonus!

Only 63 more days until closing!

House

Looks new

 

[aj58]

Originally posted by: dxkj
We have been looking at houses in the Milwaukee area for a few weeks and we started looking down at 130-150k, and we looked a few in that price range and was fairly dissapointed. Then we looked at a few in the 160-175k range and found more options but nothing we really liked. The realtor suggested we also look from 175-200k


My income is 51k a year, and my wife will be pulling in around 15k a year (while at grad school)

Is 200k too much house to saddle ourselves with at this time? We have almost 35k in savings, and will probably do an 80 10 10 loan if we get a 200k house, and pay off the piggy loan asap (rates would be 5.5 for 80% and 6.5 for 10% )

We are still looking so we might find a perfect house for much less, so Im hoping

any thoughts?

That's cheap compared to the home prices here in CA. I make about the same as you but the homes here cost 3-5 times more depending on the city and area. I keep wondering if i should move to Texas and buy myself a $300K 5000Sq. Ft. Mansion on a 1 acre land...

 

[Jumpem]

Originally posted by: aj58
That's cheap compared to the home prices here in CA. I make about the same as you but the homes here cost 3-5 times more depending on the city and area. I keep wondering if i should move to Texas and buy myself a $300K 5000Sq. Ft. Mansion on a 1 acre land...

Yes, but more than 1 acre.

My hard limit is 2 acres. No less. I'd prefer 3-5 if I can find what I want.

 

[Fingolfin269]

Originally posted by: Jumpem

Originally posted by: aj58
That's cheap compared to the home prices here in CA. I make about the same as you but the homes here cost 3-5 times more depending on the city and area. I keep wondering if i should move to Texas and buy myself a $300K 5000Sq. Ft. Mansion on a 1 acre land...

Yes, but more than 1 acre.

My hard limit is 2 acres. No less. I'd prefer 3-5 if I can find what I want.

That's how I am also. I want a lot of land and in order to get that I'll probably have to get an older house since I want character in the environment of that land. It's hard to find new houses on character filled land pretty much anywhere these days.

 

[Jumpem]

Originally posted by: Fingolfin269
That's how I am also. I want a lot of land and in order to get that I'll probably have to get an older house since I want character in the environment of that land. It's hard to find new houses on character filled land pretty much anywhere these days.

I just want to find a nice chunk of woods. Clear out a spot in the middle for a house.