If you bought one place, then went to buy another place...

Did you actually have the down payment for the second place? How do people do this? Are we supposed to have another $40K saved up? We only bought a co-op in 2007. We don't have another down payment. What are we doing?

TIA!

Re: If you bought one place, then went to buy another place...

We sold our first home for $110K more than what we bought it for so that money was our down payment for our current home. We had to close on our first home first and the seller needed to agree to a sale contingent upon us selling ours.

Re: If you bought one place, then went to buy another place...

this is our second house and we had a separate down payment for it.


we're currently selling and have a small down payment saved, but are counting on some of the equity in the house to round it out for a bigger house.

Re: If you bought one place, then went to buy another place...

We purchased in 2005 and our home is still estimated to be worth less than what we paid for it then. Since we have been faithfully paying our mortgage down, I hope that we will be able to get out our down payment We have also been saving money for a new home. When we are ready to sell/look for a new home I hope to use both the old down payment and the new money to form a larger down payment for a bigger house. If you are lucky and purchased your house before the run up in prices then you could use the equity gained by the passage of time.

ETS: The general rule of thumb that I have heard is you should look to stay somewhere for a minimum of 5 to 7 years to recoup the closing costs and all of the initial expenses of a home.

I feel like those people who were lucky enough to purchase a house before 2003 are able to purchase a great home now because they most likely got into the market before the big run up in prices and can sell for way more than they purchased for and now that the market is a little deflated/interest rates are low they can jump on a great deal. For us, I feel like we missed the boat so to speak. So for people who are in the same place we are, that purchased at the height of the market (2004-2006) they unfortunately will have to wait longer to make money on the sale of their homes. Historically it took a long time to gain appreciation in the value of your home. It was only within the past couple of years that people were able to buy and flip homes for great appreciation. Unfortunately that does not exist any more.

Message edited 5/15/2010 9:42:58 AM.

Re: If you bought one place, then went to buy another place...

we bought our house dec 06, just when the market was coming down.

at first this house was a 5 year plan, but coming up on year 4 thats not gonna happen. we put too much time and $$ into it.

We plan on staying put for 3 more years, and saving up another DP during this time. We will then decide to either stay put (and do an extension) or trade up. I want to have $$ in the bank for another DP and bank whatever we make on the sale.

luckily our area hasn't depreciated that much (a house around the block just sold for more than we paid )