Comments on: Homebuying jitters

By: Ben-David

Ben-David — Mon, 04 Aug 2008 06:01:29 +0000

If the condo requires some fixing up (and they all do) you can save money by doing some things yourself. I’ll never understand why people pay someone to paint their houses – especially the interior.

And the jeep may come in handy during the fix-up/move-in stage. Hang on to it – not so good to make so many major changes all at once.

Can we interest you in at least retiring to Israel?

By: CGHill

CGHill — Sat, 02 Aug 2008 20:44:37 +0000

“When you find the home that makes you go, ‘Wow, I want to live in THIS place’ the second you walk in, you buy it.”

It really is that simple. I did that myself. And yes, I fretted for days before the closing that I’d gotten in over my head, or worse.

I’m approaching the fifth anniversary here at Surlywood, and I’m still persuaded that it was the right move. I think things will work out just as well for you.

By: John M.

John M. — Fri, 01 Aug 2008 23:17:38 +0000

Sounds really exiting. I’m happy for you! Ford Foci are pretty good. I have a 9 year old Honda and and a 14 year old Chevy Blazer that still runs great (It oughta since we’ve replaced every bloody part in the thing). We’re thinking of getting a new truck, but we’ll probably keep the Blazer just to haul mulch and stuff. I don’t want to give her up!

By: Meryl Yourish

Meryl Yourish — Fri, 01 Aug 2008 15:40:50 +0000

Jack, I had an Escort. Two of them, actually. They’re sturdier than they look, too.

But again, I’m going to settle into the new home first, see how the new budget shakes out, and go from there.

Tom, yes, it’s paid for. I was thinking of trading it in for a VERY inexpensive car that gets better gas mileage and paying the difference. But again, I’m going to wait a bit.

By: Meryl Yourish

Meryl Yourish — Fri, 01 Aug 2008 15:34:59 +0000

Mark, when you find the home that makes you go, “Wow, I want to live in THIS place” the second you walk in, you buy it.

Richmond prices aren’t going to drop much more, particularly in the condo type and area I want to live.

And, well, read my post. NFW am I staying in this craphole for three more years. And it’s pointless to move to another apartment and pay someone else rent. Why should I?

And oh yeah—a mortgage lender whose father lives in the complex I want to buy told me I got a great price on the condo. I think I’ll take his word for it, as he lives—and lends—in the area. And he has no dog in this fight, because I’m not using him.

By: Jack Friedman

Jack Friedman — Fri, 01 Aug 2008 06:01:22 +0000

It’s in no way sexy, but I’ve got a ‘99 escort that I only paid $3500 for 4 years ago, and they’re easily had for that price and less now. It’s a Mazda 323 powertrain, and can easily do 200,000 miles. With manual 5-speed it’ll do mid-upper 20s in the city and 30+ mpg on the highway. Has dual front airbags. And the 1.6 liter 5-speed is actually zippy to drive. If you have a trustworthy mechanic and any luck at all, it’s a great bargain/strategy. Check Consumer Reports best used car buys. I think the 97 thru 2000 escorts all are especially trustworthy. Just a thought. No big car note necessary for this kind of strategy.

Jack

By: Tom Frank

Tom Frank — Fri, 01 Aug 2008 03:49:16 +0000

I’ll assume the Jeep is paid for; in which case, it is unlikely you could save enough by getting a more economical car to make a monthly car payment.

Unless you have the cash to pay for the more economical car, it’s likely not worth it.

I developed an excel spreadsheet that illustrates the cost/benefit, which I will email you if you wish.

By: Sarah G.

Sarah G. — Fri, 01 Aug 2008 03:34:11 +0000

I disagree, with thinking like that it never would be a good time to buy. The market around here in the greater Richmond metro area was never particularly hyperactive. Housing was experienced a minor correction (we’re talking a thousand). An upended mortgage is very unlikely. The basic rule of thumb of staying at least three years to offset the closing costs still holds.

By: Mark James

Mark James — Fri, 01 Aug 2008 02:33:25 +0000

Personally, I wouldn’t buy a home yet since the home market isn’t supposed to hit bottom until 2009, or even 2010. I think home prices will stabilize for a while before they go up. So unless you can buy a house real cheap (on auction from a bank, say), I wouldn’t buy now. Otherwise, you’ll end up with an upended mortgage where you owe more than the house is worth. Then if you sell it, it’s a short sale.