 I bidded on a house and now I cant afford it what do i do? |
| The other day I went to an auction and bidded 20000 over budget. The real estate person was really hassling me and I dont know why but I paid to much. I have not signed anything and I have not paid a ... |
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 Mortgage ? |
Can I cosign on a mortgage when I have no credit? As in no bad credit, no good credit?
Additional Details
I would be cosigner. Hubby is the major bread winner.
I have never ... |
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 Rent increases? |
| My landlord increased my rent twice already, once every 6 months since I moved to my apartment. Now they want to increase the late charges from $50 to $100! a couple of months ago we got a letter ... |
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 When a tenant gives 'written notice' when wanting to terminate a rental agreement. Does by email count? |
| We want to move out asap. The contract states 1 months written notice (nothing about it being signed). I emailed about 2 weeks ago, can I now write a signed letter and back date it?... |
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 Is there a sales tax on buying real estate? |
| If you buy a house, do you need to pay a sales tax on top of everything else?... |
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 I want to refinacne my mortgage in CA, are you a loan officer? |
| I got a 7% F mortgage for 15 years and i want to refinance it because i want to take out cashout of 90000 out of my equity of $250000. My credit score right now is 692. I want to contact some good ... |
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 Can a landlord raise the rent any amount he wants in a private house? |
| So far he has tried to raise my rent 100 every year since I moved in! I have no lease but isn't there some kind of guideline he must follow as a landlord?... |
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 When buying a home, should you tip your real estate agent? |
| I know the agent gets paid based off of the price of the home; however, what is a good way to show my appreciation for his work after closing?... |
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 Moving out of parents house.? |
I am 24 in part time eduction to get the qualifications i need to get a job coz i left school when i was 14 due to bullying. I live in the uk.
do you guys have any advice for someone ... |
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 Pay final rent or just move out? |
| We are in the final stages of a house being built, and we should close in the next few weeks. It is the beginning of July and we are contemplating just putting our stuff in storage, moving in with a ... |
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| Landlord Neglects? |
| I live in the state of Illinois, Everthing runs of electric. Now if my landlord have some electric work done and left us, me without electric for 4 days, and I had to go to hotel is she require to ... |
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 Where can I find the previous owners names and info of a house? |
The address is 10114 Kirkdale Houston, TX Zip: 77089
So far, all I could find is that the home was built in 1967. Any helpful sites? Preferably sites that don't require a fee.... |
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 Where to look for homes for sale no realtor? |
| want to see homes for sale in northern ky area.woild like to see homes for sale in 150.0000 ... |
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 My landlord has told us to leave... what are my rights? |
| Me & my partner were horrified to return back from our holiday last nite to find that our landlord had been in our house without our permission while we were away. He told us last week that the ... |
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Vanessa Q | Why rent?..still does not make sense, ...? |
even though being a 'renter' is less responsability you NEVER finish paying the landlord. Of course being a home owner, you pay property taxes and insurance...but you get to write it off at the end of the year!! I just dont see the benefit of throughing away your money. Can someone explain or is it just that some people are just not finanially ready? |
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Skywalking
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You are asking a really loaded question. The housing market thrives on the balance of renters and owners. With apartment buildings, you cant have one with out the other. Real estate agents use your question to tap into the renter market. It is true not many people are able to own. A mortgage payment and monthly rent are both liabilities. But also keep in mind, homeowners have a lot more at stake, many lose money when their homes lose value. You already asked this question, are you a proud newly purchaser and going "renter bashing?"
She's just an agent using this infamous sales pitch. I read her other questions. |
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Anna
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Let me give you a couple of examples that personally happened to me.
I moved to Dallas TX in 1985 and looked for a property to buy. I thought everything I saw was overpriced and decided to wait and watch the market. A year later, those same properties were selling for $5,000 less. Two years later, the same properties were selling for $10,000 less. Five years later, the properties were selling for $40,000 less. If I had bought in 1985, I would have lost $40,000. I finally bought a house in 1992 (7 years after I moved to the city) for $67,000; the seller had paid $107,000 for it in 1984. They had to come to the closing table with over $30,000 to close the sale. How's that for losing money? Bet they didn't get anything like that in write offs.
I moved to Washington DC in 1995. I rented an apartment for $800/month. My friend decided to buy her unit because she could get the write offs. It cost her $1500 a month for mortgage, escrow and condo fees. This move cost her $8,400/year more to live in the same property I did. Would I prefer to keep that $8,400 in my bank account --YES!!! The real estate market was in a slump, so the value of her property did not start to increase until 2001. By that time, she had spent $50,400 more than I had spent to live in the same property. A good decision -- I don't think so.
You can deduct your interest and property taxes only on Sch A of your tax return (if you have enough to itemize over the standard deduction). You cannot deduct the insurance or condo fees, any upkeep or maintenance costs. However, your deductions on Sch A are only as good as your tax rate. In other words, your tax bill is not reduced dollar for dollar for these costs. If you spent $5,000 for interest and taxes and your tax rate is 15%, you would save $750 in taxes (not $5000), and the other $4250 are just sunk costs, you never get an advantage for paying them. If you are in the 30% tax bracket, then you would save $1,500 in taxes and the other $3,500 are sunk costs with no avantage.
In a period of declining real estate prices, it is not a good decision to purchase property unless you know beyond a shadow of a doubt that you are buying at a deep, deep value below appraisal. This is because you cannot know if the market will continue to decline and you could be stuck with a mortgage greater than house value.
I believe you can tell by the above 2 examples that buying a house is not always the best use of your money. |
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Jason W
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If you might move away in less than N years (where N could be between 2 and 30, depending on your city), renting is a better deal. Buying a property and then selling it soon afterwards incurs closing costs on two transactions. You have to buy a property that will appreciate quickly (either through the market or through improvements) or that you can readily rent out to recoup your mortgage interest, taxes, and other business expenses. If you choose to become a landlord, that opens up a whole new slate of responsibilities: you have to interview tenants, check credit, and arrange to have repairs done. By contrast, as a tenant, you can pack up and move away when your lease is done.
Of the money you spend on taxes and mortgage interest, you can only recoup what your tax rate is. If you're in a 28% tax bracket, that means that 72% of your mortgage interest and property taxes are gone -- paid into oblivion, just like rent supposedly is.
In many cities, to buy an apartment costs significantly more than renting. There are two ways to remedy that: either rents soar or property values fall. Some folks bank on the latter and wait the market out. |
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donfletcheryh
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If one is planing to be in one place for 3 or more years, it may be worth while buying. But price fluctuations and even the difficulty of making a quick sale when needed may make it more advantageous to have rented.
When there is a very high local vacancy rate, typically because the local purchase market has been too hot, when there is a solid risk that prices of purchased homes will go down, then one has to weigh risk of devaluation into the purchase choice. This disappears if one stays through a whole business cycle or more.
When you first move to a region, and do not know what the local market is like, where the best places are, it can be a good idea to rent for a year or so.
But if you are sitting on a bundle of cash and the market is down, it can be a good move to buy right away. |
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Dom
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To me this isn't even a debate and while your statement makes sense, it is a little off. For a more simple way of seeing things, my wife and I were getting a car. We are a new family and we wanted to try out the SUV thing. SO we had to make a choice. Buy a SUV for $30,000 and be stuck with it for a long time (unless we sell for a loss) or rent it (Lease). If we leased it, we would have smaller payments (renting vs. owning) and after a few years if we are in a different place, we walk away from it without a huge financial hit (not all houses go up in value. What if you are not set to live where you are at for at least 5 years?).
I rent right now and I am not against it. For one, with rent right now I don't have to pay for the dishwasher that needed a complete replacement, pay for water and garbage, insurance, property taxes, and the broken door knob. I am new to my area and everything looks nice but around the corner is the low income housing which I did not know about. As a renter, I can get out. If I purchased then I would be in trouble.
Also if rent for me costs $18,000 and housing prices are falling $40,000 in the year, I am actually saving money.
Buying a house costs a lot more than renting. So yes renting is throwing your money out but it isn't at the same time. |
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nirav92126
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oh no - the renting vs owning debate still lives!
at the peak of a market cycle, if it costs twice as much to own as to rent, then buying is a dumb idea. Throwing away a dollar to get 30 cents back from the IRS is a another dumb idea.
if you can rent for the same cost as owning, then you'd be dumb not to buy - of course, there are other very important considerations to consider. Are you planning on moving, starting a family, etc which will determine whether you should buy or not.
It doesn't matter whether you rent an apt or rent the money to "buy" a house, you're still living in someone else's house! |
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Craig T
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A great deal of people never finish paying mortgage payments either.
Seems pretty obvious you have your mind made up but haven't really considered the whole picture. |
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Aeon
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Well my family and I are expats in Singapore, and we'll only be there for about 3 years (till I graduate) so it's a lot easier just to rent than buy. For instance, we're paying $9,500 per month rent on a penthouse, and buying it would cost like millions, its a lot cheaper option for us. |
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gp man
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I rent because of credit history if it was up to me, I would buy a home. |
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lizzabif05
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It's not exactly all about throwing money away.
First off, you don't have the expense of repairing the house. Should something expensive break or go wrong, you only pay a percentage or 100 bucks.
Also, some people cannot get approved for a home loan. Most people actually can't if they are moderate income families.
It's much less on your record to not pay your rent than a mortgage. If you don't pay your rent, you have a late fee, then you might get evicted if that's what it comes to...if you dont pay your mortgage, you screw up your credit, your ability to get housing is much more difficult, and you are in trouble with the banks and out of a home that you put a big downpayment on.
Usually you pay insurance on a rental as well, but that's only up to 200 a year approx.
If you have a home, you also pay for community fees if they apply, which can be 200 a month in some places.
Some rentals include utilities, too...so that's a deduction...plus where I pay 1500 a month, I can only be approved for a mortgage of 850-900 because of my husband's income being low and I'm a stay at home mom...the banks and loan companies make these rules to where you can only get like 1/4 or 1/3 of your income to be a mortgage, when in reality, most families pay like 1/2 to 3/4.
Hope this helps :) |
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