I'm a home owner!

Search
Go

Discussion Topic

Return to Forum List
This thread has been locked
Messages 21 - 40 of total 51 in this topic << First  |  < Previous  |  Show All  |  Next >  |  Last >>
Reilly

Mountain climber
The Other Monrovia- CA
Sep 29, 2016 - 10:04pm PT
BTW, if you put a hun or two extra per month towards the principal you will
be amazed at how much you will save in the long run. If you don't figure
you're in it for the long run then put that money towards improvements and
hope prices keep on keepin' on!
cragnshag

Social climber
san joser
Sep 29, 2016 - 10:19pm PT
Sweet! Congrats.

We were looking to buy in South San Jose a few years back and it was unreal how shiity of a place you get for half a million dollars. We were doing our house hunting between the Bernal and Cottle exits and finally gave up when we were at an open house where the seller/realtor didn't bother to get rid of the old tire half buried in the front yard, or clean up dog crap in the garage and backyard, or even tape live electrical wires hanging out of exposed interior walls. And they wanted $480,000 for the place (4 years ago).

We ended up buying a nice newer home 20 miles south in Gilroy... further from Guadalupe Rocks, but closer to Pinns and Yos :) We cashed out our 401K's as well for the down payment. In the bay area, your house IS your retirement...
JOEY.F

Gym climber
It's not rocket surgery
Sep 29, 2016 - 10:20pm PT
Best to you Blue, it can be a b***h home owning.
Like the septic system that went out on this place. Well no water and sewer bills at least...
All good in the long run though.
Gary

Social climber
Desolation Basin, Calif.
Sep 30, 2016 - 06:28am PT
It's not a good idea most of the time to 'borrow' from yer 401K. You'll be
heavily penalized by the IRS plus your house isn't going to make nearly the
return on investment your 401K is.

There is no penalty to take a loan from your 401k. You pay the interest to yourself, so that's good. I did that to buy my condo. Like Bluey said, it's cheaper than renting, plus the rent doesn't go up.

Good luck with the house, bluering. Are you handy with tools? :-)
EdwardT

Trad climber
Retired
Sep 30, 2016 - 07:10am PT
Congrats. Owning beats the hell of paying rent.
pyro

Big Wall climber
Calabasas
Sep 30, 2016 - 07:27am PT
Good for you steve!

I borrow from 401k which put me into a house also..

If you want to save money from having a pest guy spray for ants or other bugs just go onto domyownpestcontrol.com..

I use the same stuff as terminix guy..save $$$


Congrats
Reilly

Mountain climber
The Other Monrovia- CA
Sep 30, 2016 - 07:34am PT
I stand corrected, thanks! But I am still correct that a home is not the investment most think it is. Many studies have shown it only keeps pace with inflation except in bubbles.
apogee

climber
Technically expert, safe belayer, can lead if easy
Sep 30, 2016 - 08:13am PT
There are numerous practical, indirect advantages that come along with homeownership. All things considered, it is still one of the best, single investments most people can make.
The Lisa

Trad climber
Da Bronx, NY
Sep 30, 2016 - 08:16am PT
Congratulations on a place of your own! Mortgage beats rent in so many situations.
Wayno

Big Wall climber
Seattle, WA
Sep 30, 2016 - 09:38am PT
Good move, Steve. Hopefully the bubble won't pop too soon and then after you have some equity and you get too old to afford the cost of living in Cali, you can sell and buy five houses out in the country somewhere. We just bought 3200 sq. ft. of a place on 3/4 of an acre for 90k. We will sell our place in Seattle for five times that. We bought this Seattle place new and the quality of the construction is crap. The fifty year old place in Republic is built way more solid.
NutAgain!

Trad climber
South Pasadena, CA
Sep 30, 2016 - 09:55am PT
Congrats Steve!

As long as you can afford to keep making payments even during a bubble, in the long run you'll come out alright whenever it pops. And it's not clear how much it will really pop in the silicon valley versus towns a farther out.
the Fet

climber
Tu-Tok-A-Nu-La
Sep 30, 2016 - 10:02am PT
Congrats.

Buying one of the lowest priced houses in the south bay is a pretty safe investment. There are so many jobs and so much money in the bay area that even if/when prices take a downturn there is price pressure at the bottom of the market that will keep the lower end from dropping off dramatically and any downturn will eventually come around and it will appreciate again.

After owning a few houses I would suggest: figure out what the best returns on investment will be when you sell it, e.g. kitchen and bath remodels, and do them now so you get the benefit of them while you live there. You are going to pay for them anyway so might as well have all the time in your house enjoying them.

As mentioned you could pay additional principal every month, or make one extra payment a year to just principal. You will pay a lot less interest in the long term. But you've got to compare that to doing home improvement. The dollars may be better invested there, especially with interest rates so low. And if it's a fixer you'll spend 2 to 3 times as much time and money working on it as you expect. Been there, done that. Seriously get that in your head now, if you think it will take one weekend to fix a deck or something, figure 2-3.
Majid_S

Mountain climber
Karkoekstan
Sep 30, 2016 - 10:04am PT
let me guess

A 220 sqft Dog house near story and king with tons of project to do but no worry, I got you plenty of contractor in SJC to fix it up. By the way, i got a buddy who is selling house on 3AC lot in Gilroy for $900K

Gary

Social climber
Desolation Basin, Calif.
Sep 30, 2016 - 10:09am PT
But I am still correct that a home is not the investment most think it is. Many studies have shown it only keeps pace with inflation except in bubbles.

For me buying the condo was better than paying rent. The mortgage payment was cheaper than rent. Plus rent goes up, mortgage payments don't. When renting, you pay the property taxes while the landlord gets the tax benefits. Every payment gets you equity, while rent just goes down the toilet.

It doesn't always make sense, true, but for me it did. Especially buying at the bottom of the market.
Jon Beck

Trad climber
Oceanside
Sep 30, 2016 - 11:32am PT
Congrats Bluey, smart move. Keeping a home for the long term has the added benefit of eventually paying the lowest property taxes in the country thanks to Prop 13
cragnshag

Social climber
san joser
Sep 30, 2016 - 12:44pm PT
Another thing to consider is that with all the money the fed has been printing over the last ten years, we are overdue for some inflation.

So if you are in a fixed rate mortgage at 3.5% and in a few years inflation spikes to 3.5% or higher, your effective rate will be 0% and you'll be paying off the loan with "cheaper" dollars (since inflation will slowly raise wages as well). That's what I'm counting on anyway...
James Wilcox

Trad climber
Goleta/Virginia Lakes
Sep 30, 2016 - 02:14pm PT
Congratulations on the new home!
Adventurer

Mountain climber
Virginia
Sep 30, 2016 - 02:29pm PT
Congrats on the new home!!!
labrat

Trad climber
Erik O. Auburn, CA
Sep 30, 2016 - 02:29pm PT
Congratulations on your new purchase.

I'll be spending my weekend on yard work and home improvements.....
guyman

Social climber
Moorpark, CA.
Sep 30, 2016 - 02:39pm PT
Congratulations...... Now your really livin the American Dream.

Messages 21 - 40 of total 51 in this topic << First  |  < Previous  |  Show All  |  Next >  |  Last >>
Return to Forum List
 
Our Guidebooks
spacerCheck 'em out!
SuperTopo Guidebooks

guidebook icon
Try a free sample topo!

 
SuperTopo on the Web

Recent Route Beta