Ugh, F the housing market and the banks!!

[FLEXjs]

There is nothing wrong with debt. Its one of the most important things taught to those in finance and venture capital. Leveraging your capital to work for you with some appropriate debt is a great thing. I can't think of a single business that functions entirely off of liquid capital. Doing so is bad for its value.

Too much debt is bad and so is too little debt. Most people just don't know how to appropriately leverage debt to their favor and instead think of debt as maxing out department store credit cards.

In a Business, debt reduces shareholder risk and increases ROI.

The analysis doesn't hold true when discussing personal finances. Consumer Debt is almost never a good thing for an individual.

 

[Dex]

The housing market is very interesting right now. It's good and improving around here and that's why I'm selling. New Home Sales info came out yesterday and missed by almost 100k. I was even more shocked with the market didn't even react to that. Most analysts still blame it on the weather so maybe waiting it out would be a good idea, shortz.

 

[tommyguns2]

Yep, I'm sorry but I am adamant about no debt!

I know a couple that are always going on trips, out to eat almost every night and booze isn't cheap....THEN here and there when under the influence I have to hear about all the credit card debt, how they are going to stop doing all that shit...blah blah blah...never changes, no thanks!

Jenner, you're smart! We talk so much about freedom on this forum, and then so many voluntarily put financial handcuffs on ourselves by purchasing things on credit we have no business getting. I've got no problem with buying a toy, but I'll buy that with cash. I did purchase my house with a loan, but I had 20% down, and my first house was only $79,000, so I didn't attempt to buy more than I could afford.

When you don't have cash flow issues dictating your financial decisions, you have freedom!

 

[Jenner]

Jenner, you're smart! We talk so much about freedom on this forum, and then so many voluntarily put financial handcuffs on ourselves by purchasing things on credit we have no business getting. I've got no problem with buying a toy, but I'll buy that with cash. I did purchase my house with a loan, but I had 20% down, and my first house was only $79,000, so I didn't attempt to buy more than I could afford.

When you don't have cash flow issues dictating your financial decisions, you have freedom!

well and shit always happens right, things you can't control...then what? You're already tapped out and say you have a medical emergency (or something else serious) most likely the payments will bankrupt you...............not gonna happen

 

[shortz]

Just curious shortz, with all of the things against you guys as far as selling...why did you buy another home? Why didn't you guys stay where you were at, if you don't mind me asking.

Moved out of state. There were incredible job opportunities for my wife, and one we just couldn't refuse. Had we stayed in pa, we would not have moved out of that house.

We are losing money every month even with rent payments. Funny that we have to claim taxes on that, isn't it? The original plan was to sell to the renters, but they said there are too many houses around going for really cheap and if we can't get that low, they are bailing on us and buying from someone else

 

[Turbolag]

I think I'm confused, do you mean you are no longer in Tx ? Or is the house you're selling in Pa?

 

[shortz]

This is the house in pa from before we moved to texas.

I think you're confused because we just moved within Texas.

 

[Jenner]

Moved out of state. There were incredible job opportunities for my wife, and one we just couldn't refuse. Had we stayed in pa, we would not have moved out of that house.

We are losing money every month even with rent payments. Funny that we have to claim taxes on that, isn't it? The original plan was to sell to the renters, but they said there are too many houses around going for really cheap and if we can't get that low, they are bailing on us and buying from someone else

k, that makes sense then...must have missed that part somewhere down the line. Yea, that really sucks.

Maybe just find other renters if possible?

 

[Get Some]

It's all about what market you live in. In my particular market in Southern CA, home prices are up 30% in just over one year. NO way some of these houses are worth what they are on the market for. So, in my case I'm starting to see inflation creep in. There is still a high demand to live where I do so prices will not drop for some time I would imagine... unless for some reason this summer the market gets flooded with product, that will surely drive down the prices. Also, homes under $700K are selling like crazy right now, for more than they're worth. Homes priced between 700 and $1 million are holding steady and homes at prices above that still sell because people who can afford that still have cash and cash is king. As long as you can purchase a house with an interest rate below 5% there will continue to be buyers in the market for now. If you bought between 2002 and 2007, you are likely not in a good place right now, but the best thing to do is ride it out if you can. I know refinancing is not an option if you don't have any equity but trust me, the prices will come back up sooner than you think. We are not talking about 10 years or even 5. Keep working hard to get a renter back in there and keep working hard to support your family and good things will come.

 

[FLEXjs]

I think you're confused because we just moved within Texas.

No; he's confused because he's Turbo. LOL.



Anywho I hope things get better in the market soon for you.

 

[shortz]

It's all about what market you live in. In my particular market in Southern CA, home prices are up 30% in just over one year. NO way some of these houses are worth what they are on the market for. So, in my case I'm starting to see inflation creep in. There is still a high demand to live where I do so prices will not drop for some time I would imagine... unless for some reason this summer the market gets flooded with product, that will surely drive down the prices. Also, homes under $700K are selling like crazy right now, for more than they're worth. Homes priced between 700 and $1 million are holding steady and homes at prices above that still sell because people who can afford that still have cash and cash is king. As long as you can purchase a house with an interest rate below 5% there will continue to be buyers in the market for now. If you bought between 2002 and 2007, you are likely not in a good place right now, but the best thing to do is ride it out if you can. I know refinancing is not an option if you don't have any equity but trust me, the prices will come back up sooner than you think. We are not talking about 10 years or even 5. Keep working hard to get a renter back in there and keep working hard to support your family and good things will come.

We purchased it in 08, literally at the highest peak before the market crashed. We also have a horrible finance rate, but considering that we're so upside down, I'm not sure the bank will even refinance us for a rate and term we can handle