Thread: Should I buy a house?

Without any work history you probably won't be able to get a loan. Lenders are looking for a 2 year work history in the same line of work. Talk to some local lenders, they might make the decision for you.

It is always better to buy a house instead of just renting a house over years, that will be possible if you have enough resources of acquiring one, but in every problem there are always solutions, just start by listing down all your finances are they enough for a down payment? is your monthly income can sustain your loan payment? is your current job is for a long term? I can see what your are after for is the current low rate of the housing price, if you still wait for more years the price might go up.

You should talk to a lender to see if you first do qualify and she what you are getting into.

It is an excellent time to buy w/ rates being low. Also the $8K credit expires the end of this year and who knows if it would be extended.

Does your mom have experience being a landlord since she will ultimately be responsible for the home if you move out of the area? Will the rent even cover your monthly expenses?
There are a lot of things to think about before purchasing.

Originally Posted by 89Vision

...but I've been hearing things about houses being so inexpensive right now

They sure are!!

Originally Posted by 89Vision

I've heard that the 10%/$8,000 tax credit can be used towards a down payment,...

Sort of misunderstood the $8K tax credit... it is exactly that... A CREDIT, it is not HARD COLD CA$H that can be applied to a down payment... You need to come up with the CA$H, and then the government will allow you to get 10% of the purchase price ($8K MAX) as a tax credit on your 1040.

Originally Posted by 89Vision

My question comes down to: would it be worth it? I'm considering the idea mainly as an investment, rather than a permanent residence.

Well, I would start with getting a house/duplex for your residence, and then "upgrade" as you find the opportunites, and keeping the previous residence as "rentals." (But that is me.)

Also, I would consider some more ways of getting into a house, and even to the point of FOREGOING the tax credit, if the opportunity arose, where you entered into a house "subject-to" existing financing for little to nothing down. (Again, but that is me.)

Later!

I say go for it if possible. I bought my first home when I was in a similar situation, no sweat.

It's always better to buy a house instead of renting a house over years. You'll just waste your money in rent its better to buy house, if some financial problems then you can get the home loans easily from market.

There is no best time to buy a house- obviously no one can predict the future, but everything I am reading (and I try to read a ton on the subject) points out that the bottom (whatever that may mean!) isn't going to hit us until the end of 2010, maybe even early 2011...

And please don't just listen to everyone's opinion on here... do your own digging. You will never know the "right" choice, but if you arm yourself with as much knowledge as you can, you will at least make an informed choice.

Best of luck to you!

Stirling Gardner

C'mon, you have got to be kidding!

Here is the long and short of if it is the right time to buy a house... DOES IT MAKE SENSE TO YOU!!

Simple as that, if you can get into a house, that will save you money (or at least will cost you the same as what you are paying in rent,) then it is a good thing to get involved with. Now if you are looking to use the house as an investment (and not a homestead [something you are living in,]) then will the house bring in a +CF each month? If so, again, it is the right thing to get involved with.

Personally, with all the huge deals out there, where lenders are basically giving houses away, just so that they can liquidate some of their inventory (turn it into CA$H,) you would be hard-pressed to not find a deal out there... But I suppose not 100% of the houses on the market are in some form of distress (financial, economic, etc.) and are being sold by people that want top-dollar and don't NEED to sell. For those situations, it WILL NOT MAKE SENSE to you to get involved with.

So again, who cares of what the value of the house is today, verses what it will be in the future... Since again, if it will be something you are going to live in verses renting, you can't lose, as you will get nothing in return by renting a place, whereas you will have a house worth something; if you are investing, and it throws off a +CF, does it matter if the house is worth less than what you bought it for, if you are getting surplus CA$H for renting it?

Truly it is a mind-shift that you need to experience, if what I am talking about doesn't make sense. For many, this might come across as trying to explain quantum physics to a baby. For other's... They will "get it!"

I hope this little chat helped!

Later!