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Palebride
I am an amazing bakist
Member since 5/05 13673 total posts
Name:
Lori
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What would you do?
My brother was telling me about a house that is selling for WAAAAAY below market value becasue the owner needs to move and no longer cares about getting what she was asking. She mentioned being willing to accept about $150,000 below the price the house is currently listed at.
It's a nice house in a gorgeous area - one of the areas DH and I have been watching.
The problem is that even with the price being knocked down so much, it's more than we were looking to spend. But, it has a legal apartment that we could always rent out if we needed to.
I'm afraid of relying on a tenant for my mortgage payments though, and it would be REALLY tight if we didn't have a tenant. In a few years, we can afford the payments on our own, as my salary increases every year.
But this could be a dream house for us, and a chance that might not come again.
I'm torn!!!
Ideas? Suggestions? Tenant stories to share?
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Posted 6/30/06 7:11 PM  |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: What would you do?
as good of a deal as it sounds, I probably wouldn't do it.
I am very practical (so is DH) and truly believe in not living beyond my means. no $800 shoes, handbag or a Lexus for me. Even though I could buy those things, I won't. So I would definitely not over-extend myself on something as big as a house.
good luck in whatever you decide. 
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| Posted 6/30/06 7:22 PM |
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justme1
Proud SAHM
Member since 5/05 1955 total posts
Name:
Jodi
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Re: What would you do?
Im usually pretty practical too but I think if you LOVE the house and its your dream home and you COULD afford it without the tenant ( i see no reason if the house is nice why you couldnt get a tenant quickly) I would do it.
YOu can always make your tenant sign a 1 year lease so you know for the first year your covered.
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| Posted 6/30/06 7:40 PM |
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Maathy317
Grammie's Little Man
Member since 2/06 3235 total posts
Name:
D
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Re: What would you do?
I'd wait. Even though your salary will increase over time, so will taxes and every thing else that comes with owning a home. It's amazing what will crop up out of the blue. If you can manage the payments comfortably and don't need to rely on a tenant, then go for it. If not, I would think about this. Good luck in whatever you decide to do.
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| Posted 6/30/06 8:12 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What would you do?
Posted by Maathy317
I'd wait. Even though your salary will increase over time, so will taxes and every thing else that comes with owning a home. It's amazing what will crop up out of the blue. If you can manage the payments comfortably and don't need to rely on a tenant, then go for it. If not, I would think about this. Good luck in whatever you decide to do.
I was watching the night line "mortgage matrix" story last night- and they said that you should NOT count on your salary going up - basically for the same reasons you just gave-
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| Posted 6/30/06 8:43 PM |
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Palebride
I am an amazing bakist
Member since 5/05 13673 total posts
Name:
Lori
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Re: What would you do?
Posted by Beth1210
Posted by Maathy317
I'd wait. Even though your salary will increase over time, so will taxes and every thing else that comes with owning a home. It's amazing what will crop up out of the blue. If you can manage the payments comfortably and don't need to rely on a tenant, then go for it. If not, I would think about this. Good luck in whatever you decide to do.
I was watching the night line "mortgage matrix" story last night- and they said that you should NOT count on your salary going up - basically for the same reasons you just gave-
But for the next ten years, I am contractually going to have 2 increases per year because I am a teacher.
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| Posted 6/30/06 8:56 PM |
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MommaG
Yay Spring!
Member since 5/05 5133 total posts
Name:
Gloria
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Re: What would you do?
Buying a house is always scary, whether it's within your expected price range or not. You might have to really budget for a while but if the numbers support it, I would do it. Opportunities like that don't come around very often. And if she was going to take 150k less than asking price, and asking price was market value, you automatically have $150k equity in your house. Worse comes to worse, you could sell it and maybe even make some money in the process.
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| Posted 6/30/06 9:19 PM |
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2Pisces
Life Coach
Member since 2/06 3337 total posts
Name:
Paige
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Re: What would you do?
 what a tough decision. I think that things always have a way of working out. If you think you can swing it....Go for it!
Whjatever you decide to do Good Luck. I know how scary it can be. We backed out of a house when we first started looking becuase we were so nervous and it was really a great house. However, having said that "our" huse did come aroung 6 months later. (I really don't think I am helping you here). 
Good Luck.
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| Posted 6/30/06 9:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What would you do?
Posted by Palebride
Posted by Beth1210
Posted by Maathy317
I'd wait. Even though your salary will increase over time, so will taxes and every thing else that comes with owning a home. It's amazing what will crop up out of the blue. If you can manage the payments comfortably and don't need to rely on a tenant, then go for it. If not, I would think about this. Good luck in whatever you decide to do.
I was watching the night line "mortgage matrix" story last night- and they said that you should NOT count on your salary going up - basically for the same reasons you just gave-
But for the next ten years, I am contractually going to have 2 increases per year because I am a teacher.
but what they are saying is you shouldn't count on that b/c other things are going to go up- like gas, oil, taxes, inflation in general
there point was you should buy a house you can afford now- not in 10 years
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| Posted 6/30/06 9:30 PM |
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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Re: What would you do?
Posted by MommaG
Buying a house is always scary, whether it's within your expected price range or not. You might have to really budget for a while but if the numbers support it, I would do it. Opportunities like that don't come around very often. And if she was going to take 150k less than asking price, and asking price was market value, you automatically have $150k equity in your house. Worse comes to worse, you could sell it and maybe even make some money in the process.
I completely agree with this...every word.
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| Posted 6/30/06 9:57 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: What would you do?
Lori- I would be too nervous if I had to rely on the rental income. I think I would want to be able to afford the house without the tenant, and then if I did decide to rent, that money would be bonus money - to invest, do improvements on the house, vacations, whatever. For me and DH, what you are considering would be too close for comfort.
And, just to consider, it isn't always easy to get a tenant out, even if you decide you no longer need the income.
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| Posted 6/30/06 10:10 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: What would you do?
We have two rentals, now down to one, and its tough if you don't have $$ to fix stuff that breaks. If the hot water heater goes, AC/heat, etc you have to fix it. There are gaps between tenants, deposits to return, you have to claim the income--all considerations. I would not do it personally if it'll eat up your savings, particularly if you have kids, that just sounds way to risky. Planning to afford what you currently have is a risky plan.
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| Posted 6/30/06 10:30 PM |
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Palebride
I am an amazing bakist
Member since 5/05 13673 total posts
Name:
Lori
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Re: What would you do?
Thank you everyone! There's a lot to think about!
We haven't even seen the inside of the house yet, so this is all purely hypothetical. But, could be a good possibility one day...
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| Posted 6/30/06 11:37 PM |
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