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Thread: Advice on Buying a House

  1. #46
    Member BernieCarbo's Avatar
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    Re: Advice on Buying a House

    Quote Originally Posted by Sea Ray View Post
    There's only so much space and I like to keep my posts short. I also didn't talk about paying rent from age 55-85 either. Let's be generous with maintenance on the house. Let's say you spend $10K yr on lawn services, fixing things etc. You're up to $300K. Interest on the money, say you get to $400K. You've still got to pay rent for the rest of your life.

    Most folks would likely reinvest the equity in their house and move up a couple times and they'll likely end up with a really valuable house to sell as they're pricing retirement communities.

    To each their own. If you're in a good situation renting; don't have low-life neighbors with whom you're sharing a wall, good landlord etc, I can see the appeal of not having maintenance worries, but in the end it's hard to justify putting equal amounts of money into rent that could be spent on mortgage if you're planning this from your late 20s.
    If you stuck $10k into investments instead of house maintenance, you would have at least $1 million after 30 years, not $400k. That's what I mean about looking at the true cost of owning a home. If someone wants to reinvest equity and move up and have a really valuable house to sell, that's great if it works and they have run the true numbers, but my son couldn't make the numbers work.

    Also, I said that my son and DIL moved into a new property with all of the amenities. The neighbors are awesome, the property manager is cool and responsive, etc. I'm not talking about renting from slumlords.

    Again, all I meant in my post is to consider all the options. Don't buy a house just because it's expected of you, or for some investment. If it's something that someone really wants, go for it. But renting doesn't have to be a drag, and it's great if you want mobility and flexibility.

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  4. #47
    Member BernieCarbo's Avatar
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    Re: Advice on Buying a House

    Quote Originally Posted by RedTeamGo! View Post
    Eh, different strokes for different folks.

    Renting is great for some, owning a house/mortgage is great for others.

    Bernie, I respect your perspective on things, but holy smokes man, you are seriously the biggest know-it-all I’ve ever come across. No offense, as you certainly do know a lot.
    I'm not a know it all, and don't take it that way. But I do know what works for me, and hate to see people dig themselves into a hole simply because they didn't think outside the box, and I see that a lot in the midwest, probably because of the inherent German conservatism. But I've been around, lived in multiple countries, saw what other people did to make do with far less than what we have, and took away a lot of little things from that to make life work for me. I didn't even go to college until I was 36 and started from nothing, so I didn't have much room for error and still wanted my family to have a happy stress free life. I pulled it off, but man, even if I suggest that a young couple get a used refrigerator instead of going into debt at HD, they act like I want to send them to a concentration camp or something. Honestly, I couldn't care less what other people do with their lives, but I see so many that are stressed out and unhappy with money and feeling guilty about not spending time with the kids and fighting all the time (hence, 50% divorce rate), I'm going to pipe up when someone says "it has to be this way and that way". It doesn't.

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  6. #48
    Member Redsfaithful's Avatar
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    Re: Advice on Buying a House

    Quote Originally Posted by REDREAD View Post
    Yea, it's not ideal but
    it makes sense to have the home while the kids benefit.
    I wanted to chime back in to add that, while I haven't gotten there yet, I think there's no reason why couples wouldn't live much more cheaply once kids are graduated from school.

    Your spending in life should look like a parabola I think, low in your 20s (putting aside college spending), highest when kids are in high school/college, and then back to lowest as you head into retirement.

    I think people get into trouble when they keep spending into their 50s and 60s instead of downshifting.

    Not that you want to take on debt willy nilly right now, just that yeah, I think it actually can be ok to spend a little more during this 20 year or whatever stretch. It's all a good excuse to talk about what you and your partner envision for your life after the kids and what that spending would look like.
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  8. #49
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    Re: Advice on Buying a House

    * Attended the 1990 and 2010 Reds Division clinchers *

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    Re: Advice on Buying a House

    Quote Originally Posted by goreds2 View Post


    That deserves a trophy AND a certificate.

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  12. #51
    First Time Caller SunDeck's Avatar
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    Re: Advice on Buying a House

    These threads always make me feel like I've been bumbling my way through life; I couldn't begin to calculate how much I've spent on my home each year for maintenance or whether it's been or will be a better investment than renting. I do have a couple observations:

    Location is the biggest thing and buying a home means making one's best guess about the current value of location (school quality, convenience to amenities, relative crime rate, etc.) and the future value of the location. I'd say most of our equity, which is significant, has been the result of luck and good instincts.

    One reason I've preferred owning is it allows me to freeze the monthly cost of owning the home in the past. In 10 years $1,300 will not buy a person nearly what it will today, yet it will pay for the exact amount of their home's square footage as it did when they purchased it.

    Learn to do some work yourself but know your limitations. I'm always shocked when we learn how much it costs to have someone do something that is relatively easy. Of course, when I started out my hourly rate was $0.00. Ive since updated that to $1,200 and contractors seem cheaper :-)

    The last point is about value. As I've gotten older and lived through the struggles of parenting, deaths of friends and family members, and as I've tried to understand what all this means, I have come to the conclusion that saving for retirement is abstract, not rooted in a reality of complete information. It's a crap shoot. That's not to say one shouldn't try, but my recommendation is to remember it's also important to extract as much value out of the present as is possible. But that value doesn't need to break the bank either.
    Next Reds manager, second shooter. --Confirmed on Redszone.

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  14. #52
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    Re: Advice on Buying a House

    What a wonderful piece of advice. I'll pass it along to young folks when/if it the subject comes up.
    Until one has loved an animal, a part of one's soul remains unawakened. - Anatole France

  15. #53
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    Re: Advice on Buying a House

    Iím kind of in a weird place. Iím going to retire in the next 4-7 years. We sold our house at what I thought was peak last spring. We are renting a very nice house, not losing any tax break because of the huge standard deduction now. But....I donít live renting as much as I thought I would. So now Iím debating buying, but Iíd lose the fee to sell it when I retire, and move south.


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  16. #54
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    Re: Advice on Buying a House

    Quote Originally Posted by hebroncougar View Post
    Iím kind of in a weird place. Iím going to retire in the next 4-7 years. We sold our house at what I thought was peak last spring. We are renting a very nice house, not losing any tax break because of the huge standard deduction now. But....I donít live renting as much as I thought I would. So now Iím debating buying, but Iíd lose the fee to sell it when I retire, and move south.

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    What do you mean lose the fee?

  17. #55
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    Re: Advice on Buying a House

    Quote Originally Posted by BuckeyeRed27 View Post
    What do you mean lose the fee?
    Iíd have to pay someone 6% to sell it when I retire and move.


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  18. #56
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    Re: Advice on Buying a House

    Quote Originally Posted by hebroncougar View Post
    I’d have to pay someone 6% to sell it when I retire and move.


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    Oh ok. Yeah I mean with your time frame though, I don’t think the commission is that big of a factor. Potentially 7 years from now is a really long time.

  19. #57
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    Re: Advice on Buying a House

    Quote Originally Posted by BuckeyeRed27 View Post
    Oh ok. Yeah I mean with your time frame though, I donít think the commission is that big of a factor. Potentially 7 years from now is a really long time.
    Thatís where I struggle. Is the home going to appreciate more than the $$ Iíd be paying to sell it in that time frame.....Iíd be looking in the 350k range. If itís closer to 4 years. I doubt it. Even after 7.....I know homes are at an all time bubble right now.


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  20. #58
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    Re: Advice on Buying a House

    Quote Originally Posted by hebroncougar View Post
    That’s where I struggle. Is the home going to appreciate more than the $$ I’d be paying to sell it in that time frame.....I’d be looking in the 350k range. If it’s closer to 4 years. I doubt it. Even after 7.....I know homes are at an all time bubble right now.


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    Depends on location, there are neighborhoods where I think your downside is less. On some of these tract house cookie cutter subdivisions with average schools, I think your odds of getting hit are higher.
    Turning and turning in the widening gyre
    The falcon cannot hear the falconer;

  21. #59
    First Time Caller SunDeck's Avatar
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    Re: Advice on Buying a House

    Quote Originally Posted by hebroncougar View Post
    That’s where I struggle. Is the home going to appreciate more than the $$ I’d be paying to sell it in that time frame.....I’d be looking in the 350k range. If it’s closer to 4 years. I doubt it. Even after 7.....I know homes are at an all time bubble right now.


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    Or look at it this way, the buyer's paying the commission. :-p
    Next Reds manager, second shooter. --Confirmed on Redszone.

  22. #60
    Member Sea Ray's Avatar
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    Re: Advice on Buying a House

    Quote Originally Posted by SunDeck View Post
    Or look at it this way, the buyer's paying the commission. :-p
    The buyer? Not really. It's the seller. I'm particularly curious about how this works when a house that's selling is not using an agent. Invariably the way these things work is that the buyer has an agent and that agent's commission is paid for by the seller at closing. If you're the buyer, why not get an agent? You're not paying for him


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