Hi guys, I have a small story to tell.
I currently rent an appartment from my girlfriends uncle, my girlfriend lives with me in said appartment.
Yesterday he (landlord) sees i left a light on in my attic space and starts peeking through from his side to see whats in there, just junk btw.
He then asks my girlfriend if he can come in and then promptly heads upstairs by himself and goes into the attic to turn the light off.
I feel like Ive lost all sense of privacy in this place, and a bit violated.
That has been addressed so I dont want to talk about that right now.
So I'm starting to do some reall heavy thinking about getting my first house.
What do you fellow TC members think about buying a home in these market conditions?
And would you have any suggestions of where to find relatively cheap places or other suggestions for someone thinking about becoming a first time home buyer?

If you are secure in your job, then now is a really good time to buy. Interest rates are low and home prices are low. A recommendation I would make is to be sure you have enough garage and shop space :thumbsup:

If you are not secure with your job, another apartment may be what you need.

Good luck.

With the housing bubble collapsed, there should be some reasonable deals out there in most parts of the country. If you have some money saved for a good down payment, and you have a steady income, then getting a mortgage would be possible. I have had no regrets for buying a house when I was 25 years old. The last couple houses have been bought cash or purchased in under 5 years. When you have your house paid off, you are pretty secure; you need only to pay for taxes, insurance and utilities.
I would say that you should take a look at buying now.

go for it. I never regretted buying when I did.

go for it. I never regretted buying when I did.
:yes: The best investment you will ever make in my opinion. Good luck! :thumbsup:

go for it. I got my place when i was 23. best investment I ever made. just make sure you've got enough for a down payment so you dont have to pay PMI, and make sure you find just what you want. like a basement or garage, etc.

go for it. I got my place when i was 23. best investment I ever made. just make sure you've got enough for a down payment so you dont have to pay PMI, and make sure you find just what you want. like a basement or garage, etc.

I have enough to put a 10% down payment on the homes I'd be looking at.
I've also heard people talk about PMI before but can someone explain that to me please?

It's a buyer's market for sure. If you can buy, buy now. Banks are more stingy with their money, so they expect you to have good credit and they will expect a down payment. The days of zero money down is a thing of that past, I think. It's never been a better time to buy.

Oh, I just saw the PMI question. I'm no expert and maybe someone will chime in with a better explanation, but PMI is an insurance policy to the bank in case you would default on their loan. It's an extra charge you pay on your payment (if they require it) but you can get it waived after a couple years if you've been on time with they payments. You have to request it to be removed, I don't think it will come off automatically.

PMI is Private Mortgage Insurance. It is insurance the bank takes out on their investment in you, and they make YOU pay for it. The rates vary depending on how much you put down and what the ratio is between the equity you have in the house and how much it's worth. If you put 20% down you don't have to pay it. If you put down say 15%, and 3 years later the house has appreciated in value to the point where the bank owns less than 80%, you can petition to have the PMI removed.

I have enough to put a 10% down payment on the homes I'd be looking at.
I've also heard people talk about PMI before but can someone explain that to me please?

pmi, is insurance on the loan for the lender. i love the fact we get to pay the premium, for the lender. anyway, buying a home now, would be a tremdiuos move on your part. don't worry about cheap, find the nicest home you can afford in the nicest neighborhood you can find. there are deals everywhere. i know this is going to sound wierd, but try to find a home on your own. realtor's aren't going to find you the least expensive home, remember they work on commission.

i've recently had some friends have luck at auctions, and foreclosures. go to your banker, get preapproved, find a reputable escrow company, and get out there and find that bargain. if at all possible try to get a short term loan 15-20 year, also, i always impound taxes if possible. i know a lot of people don't like to do this, but things (emergencies) come up, and have a way of eating your $, so impound pretty much gaurantees the $ will be there when taxes come.

try to look a little ahead, nice neighborhood, in a place you can grow in. you don't want to have to move when say, you get married, have a kid, want a dog, want a garage, etc.

a young man should try to get a three bedroom, at least two car garage. this gives you plenty of room to grow.

this, like finding a decent car, will be work, and it's considered one of the most stressful times in your life. work hard, don't let people double talk you out of any upfront cash, get the principle paid down as quick as possible (when you get to 20%, you get to dump p.m.i.) and don't buy, just because it's cheap. make sure you have a good home inspection company lined up, you don't want a bunch of hidden issues.

like cars, the trick is to get as much as you can for your $, to do your homework so you don't get taken, and find a home as finished as possible, because those small repairs, can hide big problems.

get out there, kick ass, take names, and claim what you want....

try to look a little ahead, nice neighborhood, in a place you can grow in. you don't want to have to move when say, you get married, have a kid, want a dog, want a garage, etc.

a young man should try to get a three bedroom, at least two car garage. this gives you plenty of room to grow.
..........and don't buy, just because it's cheap. make sure you have a good home inspection company lined up, you don't want a bunch of hidden issues.

like cars, the trick is to get as much as you can for your $, to do your homework so you don't get taken, and find a home as finished as possible, because those small repairs, can hide big problems.



Just highlighting pearls of wisdom. I bought my first condo at 19, not the best location and that was the only crappy part of my deal. I bought my second house at 25 and I had much higher standards on what I wanted. If I would have followed what harley outlined above, my first condo would never been purchased and instead of reapplied in a better location or better rental area (near university). Location, Location, location is a cliche but its true because you live in the neighborhood, pick the right community, school systems, your commute to work, etc etc etc.

What part of Mass would you be looking to buy in?

:yes: The best investment you will ever make in my opinion. Good luck! :thumbsup:

Depends when you bought :) . Based on recent sales, I've lost $130k in value from $312k. Going to be years before I see an equity. Horrible investment to be honest. Beats renting though.

For most of the country I'd say it's a great time to be buying a house. Low mortgage rates, good deals, good supply of houses on the sale block. I will also recommend buying a home that you can grow into. Buy something that appeals to family living. Easier to stay in longer and easier to sell if you need to move. If you're putting a buget together of what expenses will look like after buying a home, Overestimate. There are many items you need to acquire: latters, garden hoses, garden tools, lawn equipment, chemicals to kill bugs, plus all the "upgrading" you'll probably want to do after you move in. The list of crap to buy never seems to end.

Talk to a mortgage broker and get pre-approved (not pre-qualified). There is a BIG difference. Pre-approved means the bank is ready to lend money to a certain amount. Pre-qualified means, you are qualified to a certain amount based on your income level, but the bank has not done any formal checks to verify your income, credit, or whether they will lend. Once pre-approval is in hand, start shopping.

Depends when you bought :) . Based on recent sales, I've lost $130k in value from $312k. Going to be years before I see an equity. Horrible investment to be honest. Beats renting though.

For most of the country I'd say it's a great time to be buying a house. Low mortgage rates, good deals, good supply of houses on the sale block. I will also recommend buying a home that you can grow into. Buy something that appeals to family living. Easier to stay in longer and easier to sell if you need to move. If you're putting a buget together of what expenses will look like after buying a home, Overestimate. There are many items you need to acquire: latters, garden hoses, garden tools, lawn equipment, chemicals to kill bugs, plus all the "upgrading" you'll probably want to do after you move in. The list of crap to buy never seems to end.

Talk to a mortgage broker and get pre-approved (not pre-qualified). There is a BIG difference. Pre-approved means the bank is ready to lend money to a certain amount. Pre-qualified means, you are qualified to a certain amount based on your income level, but the bank has not done any formal checks to verify your income, credit, or whether they will lend. Once pre-approval is in hand, start shopping.


hang in there alan. first, it's not really an investment, it's a home, second, like always, it'll turn around, it always does. also the tax credit over renting is well worth it.

a lot of people showed no integrity in this mess. if you lost your job, or some other circumstance caused you to lose a home, i'm truly sorry, but for those that just simply abandoned thier responsibilty, you friggin suck!!!!

here's an example, guy around the corner bought a home, took out several lines of credit, bought motorhomes, bikes, etc. short sold the home and moved to arkansas. so he killed the a.s.p. of the neighborhood, juked the bank out of about 200k, then took all his new toys and moved. or the people who moved just because they didn't want to make payments on a home because it was now worth less than purchase price.

a home is a long term situation. if you made a bad investment, you shouldn't make everybody else pay. but it seems to be our way these days. kill your wife, go play golf in florida, run a business into the ground, take your golden parachute and bail...

i bought my house right, it's gone up, it's gone down, but it's my home, and unless i lose my job, or die, i'll see threw my responsibilty. not dump it on others...

hang in there alan. first, it's not really an investment, it's a home, second, like always, it'll turn around, it always does. also the tax credit over renting is well worth it.

a lot of people showed no integrity in this mess. if you lost your job, or some other circumstance caused you to lose a home, i'm truly sorry, but for those that just simply abandoned thier responsibilty, you friggin suck!!!!

here's an example, guy around the corner bought a home, took out several lines of credit, bought motorhomes, bikes, etc. short sold the home and moved to arkansas. so he killed the a.s.p. of the neighborhood, juked the bank out of about 200k, then took all his new toys and moved. or the people who moved just because they didn't want to make payments on a home because it was now worth less than purchase price.

a home is a long term situation. if you made a bad investment, you shouldn't make everybody else pay. but it seems to be our way these days. kill your wife, go play golf in florida, run a business into the ground, take your golden parachute and bail...

i bought my house right, it's gone up, it's gone down, but it's my home, and unless i lose my job, or die, i'll see threw my responsibilty. not dump it on others...

Well put . I bought my house when everything was high. But I did get out of the "Boston mentality" I also put down a very good down payment . The way I look at it is even if my house took a 30% hit if I want to sell and upgrade ( I do) I will still be better off. No offense to the Boston area people but I lived in that area way to long.

Investment for money - buy up all the vans you can. Then buy up all the property down by the river. Then wait for buyers of the van down by the river package.

Investment for freedom, tax, being able to mow your back yard naked with a beer and cursing the mower, doing what you want, knowing that what you have is yours and not a bottomless renters money pit - buy a home.

Biggest advantage for getting into a home is upward and lateral movement if you so desire later on. Its not the wait, live, sell for cash and make a ton of money, buy cars with it and another house. Its the buy, live in it and if you decide to you can move into another home. Its like muscle cars - you have to get into the game somehow to be able to play the game and get what you want, reach your goals, buy, sell, etc. Otherwise - just enjoy the view from the sidelines and eat your popcorn. Gotta make the jump and bite the bullet.

Im in the same boat as alan. House was worht half a million a couple years back, now down to about 250, maybe less but I stopped paying attention because its where I plan to stay for a long time, my home, put a lot of work into it so overall worth as of now doesnt matter much to me. Its more about upward and even lateral movement to a better of different location down the road than anything else. Home prices are home prices and excluding cost differences between counties, states, etc that were always there they are directly proportional.

Investment for freedom, tax, being able to mow your back yard naked with a beer and cursing the mower, doing what you want, knowing that what you have is yours and not a bottomless renters money pit - buy a home.




Right on. I wander around my house naked whenever I want, don't shut my bathroom door.. that sort of thing. I try to avoid mowing naked... most of my neighbors have children and I'm not looking for any lawsuits or trying to land a spot on the sex offender list. I can come and go as a please, there is nobody to answer to, and if someone is there i don't want there I can tell them to get the hell out. some of that may have been TMI for yous but whatever.

One last thing not mentioned, look VERY HARD aka think twice about getting a home with an HOA (Home Owners' Association). I heard horror stories from many about the few who control the board and the rest that have to follow. I thought I was lucky and got a good hoa but sure enough, after a few years they tried creeping in regulations, laws, etc until a few of my neighbors and I got our message across to the power hungry fools this wouldn't be stood for.

HOA - require second look.

One last thing not mentioned, look VERY HARD aka think twice about getting a home with an HOA (Home Owners' Association). I heard horror stories from many about the few who control the board and the rest that have to follow. I thought I was lucky and got a good hoa but sure enough, after a few years they tried creeping in regulations, laws, etc until a few of my neighbors and I got our message across to the power hungry fools this wouldn't be stood for.

HOA - require second look.

I agree, I have heard too many negative things about HOA. I srtipped a wrecked Camaro in my driveway for a 2 weeks. If I lived in a place with a HOA, I would imagine they would have had a problem with that - not to mention the Chevelle on jackstands right now ;).

Depends when you bought :) . Based on recent sales, I've lost $130k in value from $312k.
Sorry to hear that Alan :(, I hope the market turns around for you sooner than later. :thumbsup:

We bought the house in '91 (after the booming 80's :sad:) not for investment but as a home, we were tired of being someones rent bitch as well.

Paid 120K, could easily sell the house tomorrow for 240K. Took every penny we had (had to sell the musclecar I had back then :sad:) to make the 10% down payment.

When I look back now I have no regrets :noway: other than having to sell the musclecar which was replaced in time. :yes:

The advice that 1BlackHarley gave you is very good. A few other things worth mentioning are think resale. Most likely the first house you buy will not be your last. So if you buy the house nobody else wanted when it comes time to sell you won't be able to unload. I'm not saying don't buy a house that needs some work. I'm saying don't buy a house that has negatives that you can't change or change easily such as a house on a busy road or a house with the kitchen in the basement. That kind of thing. You might want to check out this website www.biggerpockets.com (http://www.biggerpockets.com). It's primarily for real estate investors but is loaded with information about buying houses and finding deals. You might even be able to find a house that offers owner financing and could avoid PMI.

I may have missed this but don't forget the Obama 8k check you will receive for the 1st time buyer credit.

The first thing I need to do is go talk to my bank, I have enough for a 10% down payment on some homes but after all the closing costs and special fees it adds up to nearly double what I have saved for it.
I was even thinking about selling my Jeep to get a little more capital.
I also just heard about the $8000 first time home buyers tax credit which makes it a little bit more affordable.
I actually even went to the HR department at work today to throw my hat in the ring for possible advancement.

My plans for the house is to look for a house selling for less than it is worth.
Live there for 5+ years or so, by then the market will have hopefully rebounded some and sell it for profit.
Pay off the old home loan, apply for a new one and invest in some rental property.
Are there any problems with a plan like this?

I also just heard about the $8000 first time home buyers tax credit which makes it a little bit more affordable.

Keep in mind that's a tax CREDIT - 1. You won't see it until tax time and 2: You might not see $8k. example: Your fed tax obligation is only $4,000 so you can only use $4k of the credit, and the rest goes into next year and so on.

You'll get the $, it just might not be all at once.

Live there for 5+ years or so, by then the market will have hopefully rebounded some and sell it for profit.
Pay off the old home loan, apply for a new one and invest in some rental property.
Are there any problems with a plan like this?

Any house you buy at below value will probably need some work. Even if you do it all yourself, you still have to invest $ in supplies. Don't forget to include those future expenses in your math.

Another thing to ask about: Escrow - this is where the lender takes some of your $ and puts it into an account each month for your home owners insurance and property taxes. They have to pay you interest but it's little to nothing. Find out how long they require you to use their escrow and if you can get out of it and save on your own. (obviously only do this is you can discipline yourself to say the $)

Pay off the old home loan, apply for a new one and invest in some rental property.
Are there any problems with a plan like this?

Yes - Renters.

Good luck with that.

Other than that your plan sounds good but I wouldnt expect too much of a rebound any time soon unless you count serious inflation. That bubble will never come back to anywhere near what it was. I wouldnt expect to pay 250k for a home today and be able to turn a serious profit in 5 or even 10 years. So much inventory out there, so many builders still with vacant houses along with forclosures and everything else. So I say stick to the buying and obtaining to live in the home without jumping too far out front and counting chickens that might not hatch (thus, placing you into the camp of all the current problem children out there living in vans....down by the river)

:D

I would invest in rental properties myself but that involves renters and dealing with people. I'd rather buy a house and turn it into a Kennel and deal with dogs. They dont become squatters, sit in the home and laugh at you while not paying rent, go to court and ignore bills and orders, cant kick them out, destroy houses before they leave or argue that it was already in bad shape, run up unpaid bills, etc and the law, it seems, is all on their side. Then you end up like the guy that rented to the red hot chili peppers when they first started out and couldnt get rid of them - went to the house and removed all the doors and windows. They still stayed there for another year.

I dont have enough land to dig all the holes I would need for "evicting" renters. ;)

you have to remember, that if your home has appreciated, so has most property, so the gain you have is negated by higher buy price on the next property. i get an underpriced property (they all are now) when the property appreciates enough, i take a small line of credit, and use that to buy another property.

that's why i say, buy a property to grow with. right now your young....scenario, you buy a 3 bedroom home, rent is x per room (usually 1/3 of mortage), you rent two rooms out, now if you make your mortage, and add the rent from the two rooms, you can fesably knock about seven years off your mortage by making principle only payments above the mortage, which excellerates the the mortage by eating up a larger and larger part of the principle. once you decide to marry or that you've officialy have your bills under control, you can boot the renters, hopefully into your new rental property....

Where would be a good place to check for forclosed property?
Ive heard everything from banks to forclosure attourneys as well as just sitting outside a courthouse and waiting to see what comes by.

Where would be a good place to check for forclosed property?
Ive heard everything from banks to forclosure attourneys as well as just sitting outside a courthouse and waiting to see what comes by.

all good leads. it's all up to how much effort you put into it. my s-i-l just bought a large home (2,800 sq.ft.) for 280,000, a year ago, this same home was well over 500k. look for foreclosure seminars in your area, get on good terms with your banker. a close friend of mine just offered 66k for a home that sold for 294,000 just last year, and the bank took it. i can tell you story after story, but if you don't have your ducks in a row, nothing will happen. like said earlier, get prequalified, that will tell you what bracket to look in, then start hounding the papers, your bank, and leads you get. it's hard work, nobody is going to knock on your door and offer it to you, you have to go get it.

my first home (decades ago) was a repo mobile home, some p.o.s. realtor said i couldn't get it for under 56k, i found the bank who owned the note, offered 32.5k and they took it.
it's out there, you can do it, you just have to be prepared, and have to be able to follow any lead.....

Where would be a good place to check for forclosed property?
Ive heard everything from banks to forclosure attourneys as well as just sitting outside a courthouse and waiting to see what comes by.



I would imagine tax assessors office would be a good place to start....our local newspapers are full of auctions on both new as well as used homes...my advice is this, remember when you bought your first Chevelle.....forget about how pretty it was on the outside, you looked deeper and found the problems, bondo, rust ,missing parts....same way with a home....look deep for hard to find problems, ask questions, how old is the roof, any leaks, check foundation for settling, how old is air conditioning/heating...these types of repairs are costly and surprises are no fun after you move in.....so many people look at the stone floors, corian counter tops, beautiful vanities, all these are easily changed at a later date, new roof, foundation repair, upgraded electrical wiring, newer plumbing...these things can cost a small fortune and sour you real quick on what you thought was a great deal.....go slow, take your time, look past the pretty, look at the physical aspect of the home your eyeing...and if it were me, in this market, buy as much house as you can comfortably handle payment wise, i don't think we will ever see this market again......15 year mortgage max if you can swing it....30 year mortgage just eats you up....good luck:thumbsup:

Matt I asked before what part of Mass . Just curious I often hear of house up on the north shore of Mass .

To address the tax credit, you dont have to wait until your tax return to get the money. You can file an ammended tax return and could get the $ a month or so after closing assuming all the correct papers were filed for the ammendment. Also in order to get the credit the property has to close before Dec. 1, 2009 to be eligible for it. I am a licensed realtor in WA and have talked to other agents who have had clients that have gotten the whole 8K not just part. The tax credit is 10% or $8,000 which ever is greater, so unless you buy under $80,000 you should be able to get the full $8k unless you have other tax issues.
Auctions and repos would be a great way to go, just requires a little more leg work to find them and check into them. Not sure about MA but in WA if you buy at an auction you have to pay right then and there and they usually dont take financing on the auctioned homes.
I have some good friends (basically family) in MA that own their own Real Estate brokerage, so if you are interested I can get you intouch with them, just pm me if you are interested. If you know my Uncle well we are all good company :)
Hope this info helps.

To address the tax credit, you dont have to wait until your tax return to get the money. You can file an ammended tax return and could get the $ a month or so after closing assuming all the correct papers were filed for the ammendment.


I'm not doubting you but could you expand on that?

If I buy a house today (tax year 2009), and quallify for the full $8k, how do I file an amended return for a year that I haven't filed an initial return for yet? :confused:

I'm not doubting you but could you expand on that?

If I buy a house today (tax year 2009), and quallify for the full $8k, how do I file an amended return for a year that I haven't filed an initial return for yet? :confused:

Originally Posted by BULKSSNEPH
To address the tax credit, you dont have to wait until your tax return to get the money. You can file an ammended tax return and could get the $ a month or so after closing assuming all the correct papers were filed for the ammendment.


:yes: please do explain...my cousin just bought a house and closed 3 weeks ago...he is well aware of the tax credit but not about what BULKSSNEPH mentioned.

Just a quick reply from work addressing where in MA I am looking.
I am located in Western MA, Pittsfield specifically. The city is mostly a dump so ive been looking within a 30 mile radius of town.

Matt, Pittsfield has places that are ok. I'd check out Lee and housatonic Don't go upto N A because its cheap. New york state houses are cheaper , but check the property taxes before buying $$$ good luck with your search I live in Gt. B
Bob

Matt, Pittsfield has places that are ok. I'd check out Lee and housatonic Don't go upto N A because its cheap. New york state houses are cheaper , but check the property taxes before buying $$$ good luck with your search I live in Gt. B
Bob

Ah another great point. Property taxes - houses are dirt cheap in rochester, ny but the property taxes are atrocious. The town recentely lost a lot of tax base since kodak is t heir number one employer, so city passes on loss of taxes to property owners.

Lots of great advices and trinkets here and there.

The tax credit can be applied to your 2008 return, that is why you would need to file the ammended tax return if you wanted to get it quicker than when you file for your 2009 return. Here are a couple FAQs taken from federalhousingtaxcredit.com


Q. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

A.Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.


Q. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

A. Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.


Hope this clears up some questions. Here is the link if anyone would like to check it out more.
http://www.federalhousingtaxcredit.com/2009/home.html

The tax credit can be applied to your 2008 return,

Wow! didn't know that. Thanks!

That's awsome for anyone who's a 1st time buyer :thumbsup:

Your welcome, Im glad I could help. The tax credit also applies to previous homeowners that havent owned a home in (I believe) 5 years, thats another aspect of the credit alot of people dont realize.

if you want to move to windsor ontario you can buy two houses everything is so cheap. unemployment rate is highest in country though

Matt how long have you had your car???I live in the same dump of a town as you and i've never seen it before....-John