Foreclosures

Out of context: Reply #29

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  • Boz0

    Btw, Josev.. I totally understand what you are saying..
    But here's how it happened for me..

    I knew that the houses were on the high side.. My houses were sold for about $160-$170k just before they started building them..

    Since I moved from Europe to States it took me a while to get credit and all that stuff to buy a house.. I always planned to buy a house because from business side it never made sense to rent for more then 2-3 years because of the difference in mortgage and rent.. You have about 2-3 years of renting before mortgage starts making sense.

    So I finally got a chance to buy a house.. I just needed a place to settle.. The houses were mostly finished and I bought my house on a great location in the community (probably the best one) . Until I could qualify those houses were about $220k but since they finished the community I basically paid them on the high end ($240k or something like that + some additions to the house)... 1800 sq.ft. house.

    Mind you, this was still super super cheap compared to national prices of houses, especially considering Cali and Nevada and so on market values.. I paid willingly on the high end because I was planning on staying there for about 10-15 years until I could really build my own dream house by myself. IN the mean time, if you looked at historically and how prices rose on average (1-3% annually - very very low estimate) there was no reason for anyone to look at it otherwise and I wasn't planning on making money, the math said it would really just break even with the house.

    So being a bit under water didn't bother me if the market was steady and stable.. That's why I continued paying for a while my mortgage when all my friends were short selling.

    But as the situation started getting worse because of the greed and system collapsing.. you start realizing that it will never go back (even if tomorrow we had the historic rise in real estate market, you still can't get in the next 10-15 years back to what I paid)..

    To me right now it makes sense.. I can't tell you how much I hate moving and finding a new house to rent and settling there, but since banks and investors and everyone looked at it as business with zero feeling of responsibility, why should I or anyone in a similar position? We shouldn't.

    Boz 0Permalink
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    • A mortgage making sense has nothing to do with a specific timeframe (2-3 years). It has more to do the rent to purchase ratio. In some locations it makes sense to rent forever.Josev
    • ratio. In some locations it's cheaper to rent for the long run.Josev
    • http://www.nytimes.c…Josev
    • right.. with that math it made more sense here in AZ to rent up to 3 years and I did rent for 3 years.. then it made more sense to buy a houseBoz
    • to buy a houseBoz
    • Im with boz. Mortgage made sense in my area. Figured id jsut break even in my timespan, but other factors ruined that and now im bailingdeathboy
    • now im bailingdeathboy
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