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new house? what to do, what to do...

Discussion in 'Off Topic [BG]' started by Relic, Aug 14, 2007.


  1. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    What do you do when you face the prospect of buying a great house in a great area, great school district, but after mortgage/taxes/insurance/food/bills etc will be left with virtually no cash each month, maybe even into the negative?
    Do you take the plunge and pray, or do you stay put in a crappy area and enjoy being able to buy things and have spare cash?
    I have to make that decision in about 4 hours...

    uUuhHHhhHhHhhgh
     
  2. Keep the great area and school district, but pick a different house.

    Also, consider the market situation. If you expect the property to appreciate quickly, you may gain equity quickly and be able to refinance and/or pull equity out to offset the suffocating mortgage.
     
  3. If you have spare cash where you are now, I would stay put and invest it. Buy the nicer place when you know you can handle the payments. We see peoples "dream" homes going on the market all the time here in Fl. It might take 10 years to save enough for the purchase but recovering from mortgage default will hurt forever :(
     
  4. Thor

    Thor Gold Supporting Member In Memoriam

    Getting in is much harder than staying in. Go for the best you
    can get. Your family deserves it.

    Later you will concentrate on jobs, job upgrades, and whatever
    you need to do to pick up the slack.

    Don't be afraid to make critical and positive decisions.

    Negotiate the price down as hard as you can.
     
  5. Spector_Ray

    Spector_Ray

    Aug 8, 2004
    Texas
    If you barely have any cash after the house now, imagine what it'll be like in 2 years. If the area is a nice one, that means it's popular and property and school taxes will go nowhere but up. That means your payment will go up. I say pass and maybe find something bordering that area or a happy medium elsewhere.
     
  6. Sounds like the new house would be great, but imagine the stress you will put on yourself worrying about the payments and stuff.

    I say stay put for now.

    edit - add a poll
     
  7. Stay put.

    No mater how much you think it will cost to live there, it will be more. Find something more in your means in the same or similar neighborhood. It can't be the only house with greener grass.
     
  8. jkritchey

    jkritchey

    Jul 23, 2002
    Northern Va.
    Do you have kids in school? That may change the equation.
     
  9. Geoff St. Germaine

    Geoff St. Germaine Commercial User

    I wouldn't do it. It's a bad idea. If you can't afford the house, you can't afford the house. If you don't have enough money one month, what aren't you going to pay for?
     
  10. mortgage poor is no way to go through life.

    One unplanned car breakdown or other crisis and you're in trouble.

    factor in your taxes, water and sewer, home insurance, children, daycare, food, utilities, and it all adds up quick. Live within your means.

    Sure that plasma tv looks good, but not when it's out on the street with your ass. ;) Stay put, and build on what you will need when you do get the house...the nice sofa. the china cabinet. the king size waterbed...whatever....get that stuff now so you are prepared, versus buying it (or worse financing it) after you bought the house...

    You should factor in all the expenses like said above, and triple them. Now with that figure, that is what you should have in the bank, BESIDES your down payment. At least. You need a buffer for the unexpected. Now don't touch it. Build on it if you can (find a way) but only dip if there is an emergency.

    Make that neighborhood your goal. Find a more humble house if you can in said neighborhood, and go for that if it fits your budget...but don't "bank" on the future. Too many people have, or have gone for ridiculous mortgages like interest onlys, and the foreclosure rate is currently at alarming levels for a reason.... poor planning, inflated prices, and banks willing to give anyone a loan.

    Whatever you do, plan wisely, and cover your ass.

    Mon
     
  11. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    As I see it, here are some of the variables that I'm dealing with:

    -I rent right now, lease is up in 2 weeks, landlord says he'll extend for 2 or 3 months if need be but that's it.
    -present area is bad and going downhill fast. We've had three gang shootings, a spate of robberies and just Sunday an attempted rape. This all within a mile radius. I don't feel it's safe for the family to be here.
    -with what I qualify for at the moment, we do not have a whole lot of options. It's either a crappy house in a nice area or a nice house in a crappy area. That's basically how it is in NJ. I've looked at a crap load of houses all over the state at this point
    - I can go for a cheaper house in a nice area but really just how much difference is there in your monthly bottom line? let's say I pay $15,000 less and get a house with less rooms or that needs fixin' up, how much less a monthly payment does that really translate to in a 30 year mortgage? $42? I could save that much just by changing my cell phone plan, and buy the nicer house, see what I mean?
    I dunno...this is tough
     
  12. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    yes, and the school district I'm in is BAD.
    That's pretty much my #1 reason
     
  13. Diggler

    Diggler

    Mar 3, 2005
    Western PA
    Live below your means. Do NOT become house poor.
     
  14. Did u look in PA? You are real close to Bucks County...

    Plus I think our car insurance rates are cheaper...
     
  15. jkritchey

    jkritchey

    Jul 23, 2002
    Northern Va.
    Schools rule. That's my choice. I was house rich, cash poor when i moved into this dwelling and just sucked it up for a few years. Houses in good school districts seldom lose their value.
     

  16. For the time being, is there an opt-in where your child could attend the school district you desire, the caveat being you supply the rides to and from? That is what I am doing just this coming school year with my daughter.

    It's a nice option, and a motivator for when you do get into the neighborhood you want, your child will already be enrolled and acclimated.
     
  17. Thor

    Thor Gold Supporting Member In Memoriam

    Relic, I had already seen the old thread about the 'hood, which is why I
    answered as I did. Suck it up and cut out other unnecessary expenses.
    Your family comes first.
     
  18. Why do you have only four hours to decide?

    Just wondering...
     
  19. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    yeah honestly that's pretty much my thought process.

    Let me put this out to you guys and tear it apart as you see fit.
    here's what I'm feeling at the moment:

    I need to get the hell out of dodge, and fast. If I have to feel the need to sleep with a gun within arms reach then it's no way to live. Money stress is one thing, health/life/limb stress is another especially in regards to ones family.
    I move into this house and suck it up for a few years. I cut every single corner that I can to save bucks. With all the proposals I've had from cover bands, I can def make a few extra bucks each month that way. I work OT, and do whatever I can.
    Housing prices in that area are on the rise as word gets out, I might be able to finagle a refi in there eventually for some relief.

    if if if if...
     
  20. Are you also factoring things like the cost of home insurance, property tax, water and sewer bills? It's probably a much bigger difference than that $42.00 dollars. Sounds to me you are trying to talk yourself into it.

    These are the things that seem to increase every year. Not to mention when the house needs repairing it's usually expensive. My boiler broke down during the winter and it cost over $900.00 to get it fixed.

    Point is you shouldn't tap yourself out. Things like that just seem to pop up at the most inconvenient times.
     

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