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Message
Bad idea to buy a new house right now?
Posted on 9/8/22 at 12:11 pm
Posted on 9/8/22 at 12:11 pm
Have my house on the market with hopes to purchase another house for sale in the same neighborhood that fits our family better long term.
Mortgage balance will go from $300k to $450-500k. Rate goes from 2.75% to 5.5% or more (which is the hardest for me).
Long term (next 5 years) our family would like to make a move, but we love our neighborhood and doubt we will look elsewhere in our town unless there’s a perfect set up.
I’ve bought 2 foreclosures and an estate sale thus far, so it’s hard for me to think I’m buying at the top of the market, even if I’m also selling at the top of the market.
Mortgage balance will go from $300k to $450-500k. Rate goes from 2.75% to 5.5% or more (which is the hardest for me).
Long term (next 5 years) our family would like to make a move, but we love our neighborhood and doubt we will look elsewhere in our town unless there’s a perfect set up.
I’ve bought 2 foreclosures and an estate sale thus far, so it’s hard for me to think I’m buying at the top of the market, even if I’m also selling at the top of the market.
Posted on 9/8/22 at 12:15 pm to Furbs311
quote:
Long term (next 5 years) our family would like to make a move
So you would buy a house and then move again in 5 years? If so, I'd probably just wait it out.
Posted on 9/8/22 at 1:11 pm to Furbs311
What is wrong with the current house you are living in?
Posted on 9/8/22 at 1:50 pm to Furbs311
By staying where you're at you can probably make that ?second? move in 3 years as opposed to 5 years.
Think of how much you'll lose in movers, realtor fees, closing costs, and interest rate.
Why move twice when you can move once and come out ahead? Temporary discomfort long term success
Think of how much you'll lose in movers, realtor fees, closing costs, and interest rate.
Why move twice when you can move once and come out ahead? Temporary discomfort long term success
Posted on 9/8/22 at 1:55 pm to Drunken Crawfish
Sorry, I no speak English well.
I mean we can make our current house work well for another 5 or so years, but as the kids get older, we’d like a little more room. The house we are looking at checks all our long term boxes.
I mean we can make our current house work well for another 5 or so years, but as the kids get older, we’d like a little more room. The house we are looking at checks all our long term boxes.
Posted on 9/8/22 at 2:00 pm to Ron Cheramie
quote:
What is wrong with the current house you are living in?
Just a little small as our kids get older. It’s 3 br 2 bath and we have four girls 7 and under (I know… ). Lots of room sharing happening now, but a little extra room would be nice.
Posted on 9/8/22 at 2:08 pm to Furbs311
From most indications, home prices will not be declining. But the rate of increase has slowed. There is still more demand than supply for houses. If I were you with 6 people in a 3BR house, I'd make the move.
It will likely be a LONG time before interest rates return to the historic lows of the last couple years.
It will likely be a LONG time before interest rates return to the historic lows of the last couple years.
Posted on 9/8/22 at 2:09 pm to Furbs311
quote:
I mean we can make our current house work well for another 5 or so years, but as the kids get older, we’d like a little more room. The house we are looking at checks all our long term boxes.
Wait.
Prices are starting to come down and interest rates are going up. Since you can stick it out for a few more years, do so.
The Fed still has at least another .5 in increases left this year and have mentioned another .5 is likely next year. Housing prices are likely to continue dropping at least until next year.
Once the Fed has inflation under some sort of control, they'll likely revisit lowering rates to spur economic activity (if it's needed). Hold out for that (so, at the soonest it MIGHT be late 2023 but probably slightly more likely in 2024, depending on the economy of course).
Posted on 9/8/22 at 2:10 pm to Furbs311
In 2010 after the sub-prime meltdown took place, we found a house in Florida that was 4 bedrooms, 3 baths in a gated community. Nice layout and maybe 3000 square feet. It was about 3 years old and the bank was selling it for $100k. It was built for $450k. Nobody was issuing mortgages at that time so it would have been an all cash deal but we didn't want to move to FL or manage a rental from here in NY. Beautiful place though.
Looks like the housing market is going that way again, so there could be some real nice bargains over the next couple of years.
Looks like the housing market is going that way again, so there could be some real nice bargains over the next couple of years.
Posted on 9/8/22 at 2:15 pm to Auburn1968
quote:
Looks like the housing market is going that way again, so there could be some real nice bargains over the next couple of years.
My concern is one of those “bargains” might be the house I’m selling too. But point taken.
Posted on 9/8/22 at 2:44 pm to Bard
quote:
Prices are starting to come down and interest rates are going up. Since you can stick it out for a few more years, do so.
If this is true(which I don't believe it is) if he waits, then the price of his current house will drop as well. So what's the difference in selling high and buying high as opposed to selling low and buying low.
As long as the ratio is about the same, I say do it and make your family and yourself comfortable and happy.
ETA: I posted before I read your last post. I think you hit the nail on the head.
quote:
My concern is one of those “bargains” might be the house I’m selling too
This post was edited on 9/8/22 at 2:49 pm
Posted on 9/8/22 at 4:09 pm to Furbs311
Yeah I was going to say wait, with the way your OP read. Sounded like you'd be leaving the new house after 5 years. But seems like that's not the case.
If you find something that
1- you like
2- will be there for a "while" - what's that? Idk, but certainly more than 5 years
3- fits your budget
Then go for it. The waiting game is a dangerous one. And depending on which market you're in, could really backfire.
If you find something that
1- you like
2- will be there for a "while" - what's that? Idk, but certainly more than 5 years
3- fits your budget
Then go for it. The waiting game is a dangerous one. And depending on which market you're in, could really backfire.
Posted on 9/8/22 at 4:21 pm to Furbs311
You don’t have to buy another house.
At some point, kids can share space.
I would not mortgage my future to give them their own room.
However, if you want more space, that is reasonable as well. I am not reflexively against getting a bigger house, but you don’t have to.
At some point, kids can share space.
I would not mortgage my future to give them their own room.
However, if you want more space, that is reasonable as well. I am not reflexively against getting a bigger house, but you don’t have to.
Posted on 9/8/22 at 5:04 pm to Furbs311
Buying the home you live in as a CONSUMER PURCHASE FIRST and not a primary investment. If you don't maximize your dollar but you are happier does it really matter?
Posted on 9/8/22 at 5:48 pm to Furbs311
Sounds like you want to double your mortgage payment to possible gain an additional 25% in square footage? Guess it depends how cramped space really is.
Posted on 9/8/22 at 5:58 pm to makersmark1
quote:
You don’t have to buy another house. At some point, kids can share space.
Not some point, they share now (hello triple bunk bed!). And while more room would be nice, we definitely aren’t going to be heartbroken if this doesn’t work out. The other house in the neighborhood has been one my wife has loved for a long time and checks all the “wish list” boxes. But we both agree there’s nothing wrong with our girls growing up learning how to live close to one another and share space.
Posted on 9/9/22 at 12:00 am to REB BEER
quote:
From most indications, home prices will not be declining. But the rate of increase has slowed. There is still more demand than supply for houses.
This is all true. I told myself things would get better and prices would decrease drastically. Problem with that line of thinking is that we are wanting in an area that everyone else wants to be in also. Couple that with the lack of supply and the high demand that you mentioned, and you have a recipe for difficulties of finding what you want and not paying a price that's high as a giraffe's arse.
When homes would pop up, we kept feeling like we were having to possibly settle on a so-so house. We even looked at a number of houses, but none of them met our criteria for what we were ultimately looking for. We've basically been looking hard and heavy for the past six months. Fast forward to this past week...
My wife wound up finding some listing from a lady on some local damn Facebook page that was looking to sell her house. It met the square footage criteria, newer house, open concept design that we wanted, storage, high ceilings, cabinet space, covered back deck with entertaining area, on 3 1/2 acres, etc. Only thing that was missing was a shop....I'll have to build that.
She posted it that night, and I contacted the lady the next morning at about 8:30.
I saw it around mid morning the day after she posted it and someone had already been there at 6:00am and told her they would give her asking price. I was on my way out of town, so I didn't stay too terribly long, but didn't really need to study every minute detail of the house. I knew right off the bat it was exactly what we have been looking for and told her we could do 5K over asking. The lady was a little overwhelmed by the whole deal and she told me she'll have to think on it and didn't anticipate having two offers from the first two people that looked at it.
I texted the lady about 30 minutes after leaving and told her my wife wanted to come by at about 1:30 to see it, if that's ok. She was naturally fine with it. Luckily for me, the lady and my wife hit it off and visited for about an hour and a half. Long story short, the lady loved my wife to death and that's kinda what tipped the scale and is really why we even got the house.
I guess what I'm trying to say is that the housing market is still crazy as shite, and having a little luck is sometimes what you need to get what you want.
Posted on 9/9/22 at 2:05 am to Arkapigdiesel
quote:
From most indications, home prices will not be declining. But the rate of increase has slowed. There is still more demand than supply for houses.
Prices are already coming down and demand is at like a 22 yr low---not sure what metrics you guys are looking at.
Even during the '08 crash, it was the cumulative decrease of 1-2% per month that totaled up to be a crash.
We're just in the beginning of this thing--this is like late 2006 we're seeing now---just wait.
Posted on 9/9/22 at 8:41 am to Furbs311
Sounds like the best financial move would be to remodel and add on to your current home, unless the lot just will not ever fit your parking, additional cars as kids age, etc...
Posted on 9/9/22 at 12:06 pm to Furbs311
quote:
The house we are looking at checks all our long term boxes.
But you're only going to be there 5 years?
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