taking the plunge, now give it to me straight

[meadandale]

Almost $500k for a house (albeit a large one) in vacaville still seems quite high. This house looks like it is on an end lot near the road as well which reduces it’s appeal (to me).

But, if YOU like it, are not in a toxic loan and can afford the payments, go for it. However, you need to be psychologically prepared to be paying on a house that is worth less than you owe for it cause that could happen quickly.

[Nancy_s soothsayer]

Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.

[Nancy_s soothsayer]

Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.

[Nancy_s soothsayer]

Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.

[Nancy_s soothsayer]

Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.

[Nancy_s soothsayer]

Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Author]

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