to buy or not to buy house

Discussion in 'After Hours Lounge (Off Topic)' started by Philip_G, Jun 8, 2003.

  1. Philip_G

    Philip_G Producer

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    Since I'm new to denver, I either have to find an apartment, buy something, or live in a cardboard box [​IMG]

    I found a nice apartment, but it's 900/month for a 2 bedroom, plus deposit and so forth, no carport, no garage.

    I can rent a townhouse for 1k a month, most of them are decent, but same deal on the parking.


    houses are 200k and up for anything small and decent, I could probably swing that.

    today I found a townhouse for sale in a new complex, it's nice, 2 car garage, then up to the livingroom, then up to the kitchen, then up to the bedrooms, it's a 3 bed, 2.5 bath, 1400 sq ft, pretty nice, but again it is a townhouse.. my payments with homeowner's fees, taxes, insurance, all that would be 1165 a month.

    the place WILL go up in value like any real estate around here, I won't be tossing away 12k a year, and according to the mortgage lady once you figure in the interest writeoff and tax savings my payment is really closer to 900/month.
    the loan is an FHA first time buyer deal, 0 down (I'm po') at a 3.75% arm for the first year, then can go up a max of 1% or 2.25 over the t bill, so it could go down (ya right)

    I just dunno [​IMG] it's a lot of cash... I suppose it saves me on my car insurance too, being a homeowner.
     
  2. Philip_G

    Philip_G Producer

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    pictures [​IMG]

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  3. Keith Mickunas

    Keith Mickunas Cinematographer

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    With interests rates as low as they are, it makes a lot of sense to buy a house if you can afford it. If you plan to be there at least a couple of years it most likely will be beneficial.

    What's the cap on this ARM? Mine can rise as much as 5% or 6% over the life of the loan, but is limited on an annual basis. You may want to look at a 5 year ARM at a higher rate to get a bit more security, or perhaps go with a fixed rate, which you might get between 5% and 6%. With interest rates this low I'm not sure an ARM is that worthwhile. I bought my house a year ago, and now the fixed rate loans are lower than my ARM.

    Also, I think the townhouse is a good idea. I wouldn't spend 200k unless I was making a good bit more than I am now. That's all relative to where your comfort level is. If 200k is the max the bank will give, stay way under that. IMHO banks will loan you too much. Remember you need to have money left over each month to buy stuff for the house. Considering the numbers you provided, I think buying the townhouse sounds a lot better than renting the apartment.
     
  4. GordonL

    GordonL Supporting Actor

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    A lot of people say buy the biggest house you can afford but I say buy the biggest house you can afford if you become temporily unemployed. If you're in the Hi-Tech industry, it'll happen at least once in your life-time. [​IMG]

    Depending on location, townhouses can have nice appreciation. My townhouse's value has quadrupled since it was built. It has doubled since I bought it. [​IMG]
     
  5. DaveF

    DaveF Moderator
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    Philip -- are you in a rush to buy? How about renting for a year and taking some time to determine the best place in Denver to live, based on your lifestyle and interests. It would also give you time to establish a budget and better know how much you could spend on a house.

    I'm looking for a house right now and it's a frustrating process. My challenge right now is to not just give up and buy some stupid-expensive house that looks good. Patience can be a virtue in house-hunting, until you've found what you really want and then you have to move quickly.

     
  6. Marc S Kessler

    Marc S Kessler Stunt Coordinator

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    Buying a home makes more sense than renting as you are building equity. However if you don't expect to live in the Denver area for more than just a couple of years renting may be a better choice considering closing costs. If you decide to buy try to get a fixed rate mortgage. Rates are as low as they have ever been and when or if they start going up ARM's will get hit hard.
    Don't forget that the higher monthly payments may be offset by getting a mortgage interest tax deduction.
     
  7. Philip_T

    Philip_T Supporting Actor

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    BUY BUY BUY!! Especially my house as I'm trying to sell it to buy a bigger one.[​IMG] Seriously, if you can swing it, buy a house. IMHO, the Denver market has been very hot for the past 4-5 years and home prices have shot through the roof. Now we are seeing our market cool down a little (properties values are not increasing as much as they were and staying on the market a lot longer before they sell). The condo/townhouse market has a high amount of active listings currently, meaning, you may be able to offer below asking price and strike a deal. However, I feel that the condo/TH market has overachieved lately and possibly hit a ceiling (I still can't believe what I sold my condo for 2 yrs ago) where as a detached single family residence should still have some room to grow (not to say that condo/TH's wont). If you can swing a DSF vs an ASF, I would consider it, especially if you don't have to pay those annoying HOA fees (they can add up). The DSF market does have a lot of current active listings as well, so you might be able to get a deal on one as well. And with rates as low as they are now, it makes more sense to take the plunge, who knows how long they will stay this low or if they will ever be this low again.
    As far as apartments go, due to the high vacancy rate of apartments in the Denver metro area, you can usually haggle with them over concessions/rent rates as they desperately want to fill their empty units.
    PM if you want to Philip_G as I am somewhat familiar with the Denver market and can break it down further. And no, I'm not a lender or real estate agent pining for work.

    Regards,
    Phil
     

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