(Closed) Buy now or wait?

posted 5 years ago in Home
Post # 3
Member
5001 posts
Bee Keeper
  • Wedding: September 2013

Can you really afford it? What if one of you loses their job, could you still afford it? You need to really look at your finances and savings to figure it out…

Post # 4
Member
1293 posts
Bumble bee
  • Wedding: December 2018

@QueenOfSerendip:  Income properties are great! I have 6 ๐Ÿ™‚ I absolutely say buy now and start building equity. You hope you’re making lots more in the future, but you don’t know that for certain. Either way, might as well put your money into something you will own. Even if you do end up selling it or turning it into an income property so you can upgrade, you will make money. What do you make when you leave your rental? Nothing ๐Ÿ˜›

Post # 5
Member
130 posts
Blushing bee
  • Wedding: February 2015

It depends if you think it will sell in a reasonable amount of time or not.. when you do finally decide to sell. You don’t want to be stuck with a house you don’t love if you can’t and need to sell to get your dream home.

 

Even though it’s still kind of a “buyers market” in our area, if you’re priced right, you can sell quite quickly. 

 

If you can afford to have 2 properties in the future, I don’t see why not! You’ll save $300 a month for something you OWN! And you can always put that in savings towards the downpayment on the next place! ๐Ÿ™‚

 

Post # 6
Member
3277 posts
Sugar bee
  • Wedding: June 2014

Make sure you can get approved for a big enough loan, especially with starting new jobs they tend to be cautious about giving loans out. But we’re in that situation and just bought a house that will turn into an income property in 3-6 years. If it’s a home you love then I would say go for it after talking to the bank

Post # 8
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

I actually disagree with BoxerLady on being a landlord. I HATE it. It’s not for everyone, so think long and hard about whether it’s what you both truly want to deal with. You have to be up in someone else’s business in an uncomfortable way. “Tenant, it is a fire hazard if you keep that huge pile of dirty laundry right next to the gas furnace in the basement.” “Dear tenant, we are getting complaints from the neighbors about roaches coming from the shared walls of your dwelling. We are going to be treating on c day. Please do x,y, and z in order to prepare.” And then you go in and realize that not only have they not done x, y, and z, but that the roach problem is in direct relation to the food bits left everywhere. If you have a good tenant, it’s may be fine. But a bad one is misery. And they seem so normal when you meet them. And their last housing reference was glowing (probably to get them the f out of the last landlord’s hair!).

 

Post # 9
Member
526 posts
Busy bee

don’t forget about everything else that adds to the mortgage price, namely REAL ESTATE TAXES!! here they are $10 less than my mortgage payment monthly.  add all of your utilities and a savings for what will (not might!) go wrong and it might end up costlier than renting.  I was in a hurry to own a home, ‘its such a good investment’ then the market crashed.  wishing i had a do over on that one! we now live in an underwater home.  boo.

Post # 10
Member
1293 posts
Bumble bee
  • Wedding: December 2018

@QueenOfSerendip:  That’s what cemented my answer…You’d be paying to less each month to own, and you’d have equity. You can’t beat that option. And if you do decide to go the income property route, what you make off the property will cover the mortgage for that property as well as some of the mortgage on your new house. You really can’t go wrong, and it’s a nice buffer to have.

There is a dark side of tenants, but that’s what you’ve got to screen them properly (i.e. credit checks, police checks, proof of income, and references). You will have a home inspection, so it’s not like you will be renting out a house that is falling apart and will require your poor Darling Husband to be making house calls.

We just moved to Nova Scotia and our income properties are in Ontario (where we used to live). We’ve hired a property manager to deal with any issues that come up, and that option is even less work for us. I’ve been lucky to have good tenants overall, and I absolutely think any downside is worth dealing with for the extra thousands of dollars each month. Do it!  

Post # 11
Member
1293 posts
Bumble bee
  • Wedding: December 2018

@lovekiss:  Hm. The money is worth it to me. I’ve never had any nasty tenants and I do very detailed background checks. Everyone is different but it sure supplements our income ๐Ÿ™‚

Post # 12
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

@BoxerLady:  I think everyone has a different experience. I know that I hate it, and I know that friends of ours hate it. For us and our friends, we are just waiting until the market comes back up. I own mine free and clear, but prices are so depressed in the area where the home is located and the only offers I got on it were from cash investors at below market value prices. I’m not giving the house away for that little. And our friends are currently upside down on their old house, so they are renting it out until they can break even on it and sell at that point in time. Their renter ended up getting them in trouble with their HOA for noise and parking violations and generally being a drama queen with them. Maybe neither of us has good luck with tenants.

Post # 13
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

1. Do either of you have at least 3 yrs solid employment history in your fields?

2. Are you including taxes, insurance, and maintenance in that $450/mo?

3. How hot is the market by you? I’ll assume if you can get a home for $450/mo that it isn’t in a major city where prices will rise a lot in the next 1-2 years.

Interest rates aren’t expected to rise much if at all for at least another year, so that means you won’t be missing out on that by waiting. If the housing market by you isn’t the kind that goes up in price substantially, i’d wait until you make more money, and have saved up!

Post # 14
Member
8472 posts
Bumble Beekeeper
  • Wedding: July 2012

Did you say monthly mortgage payments are $450.00!?!?  I’m moving to Kansas!!!

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