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Time to buy a new house?

Old 12-18-2008, 11:18 AM
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Default Time to buy a new house?

Ok, here's my situation. Need a new house. My current home was purchased more for the 3 acres of land than for the house. We were going to build behind the existing house and then tear the old one down. Never happened for a couple of reasons, but turns out I'm glad it didn't. Traffic on the road out front has increased from very quiet to 30,000 + cars / trucks a day. Very noisey and I hate noise... I want peace and quiet. But as you can imagine, the commercial potential for the 3 acres has increased drastically. Not only that, but I have been running my businss out of the house since I started it and will need a seperate office for it if things keep going as they are. So-- I don't want to sell my current land / house, but I need to get out. One other thing. Don't owe much on existing house and I have the money in the bank to pay it off if I want to but it hasn't made a whole bunch of sense to do that since I refi'd it about 5 years ago for 4.875% and the notes are quite low. ( I could afford both this note and the note on another house if I need to) Being a small bus. owner, it felt better to have that cash in the bank and I'm earning almost as much in interest as I'm paying on the mortgage

I've been kind of sitting on making a move while passively keeping an eye on the local real estate market but haven't done anything as of yet. I really wanted to buy land, 5+ acres, and build on it, but that may not be the best route for me now for a couple of reasons. First, I got an email from a realtive who is in real estate saying this: 30 years, 4.6%, no closing costs, no orig fees. Second, if 2009 keeps me as busy as 2008 did, I won't have time to keep on top of a building project and if I did build, I'd have to do a construction loan and then finance 10-12 mos from now... rates could go up in that time and I'm a cheap bastard.

One other piece of info. Most of my cash is in short term CD's that will not mature for another 3-4 months. I'd rather not take the penalty hit if I don't have to.

I have seen a few houses up for sale that fit my requirements and budget that are on 3+ acres so buying an existing house is a possibility.

Need opinions / options / ideas, I'm tired of chewing on this.

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Old 12-18-2008, 12:19 PM
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Default Re: Time to buy a new house?

Markets vary tremendously with the locale - that said - Yep, seems like THE time to buy to me.

When everyone is greedy be fearful: when everyone is fearful be greedy. - W. Buffett

Have fun - gotta be lots of bargains everywhere!


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Old 12-18-2008, 01:56 PM
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Default RE: Time to buy a new house?

Don't do a thing until you sell your house......rent a home after that and build your other home at that point in time.
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Old 12-18-2008, 04:00 PM
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Default Re: Time to buy a new house?

Ya go with what tireless said and your rate is great on the current house, that said cash is king now if you have it I would not hesitate
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Old 12-18-2008, 04:08 PM
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Default Re: Time to buy a new house?

Do you want to be a landlord?????If the answer is YES, then keep your house,your note is low and it's a good rental market. If the answer is No, then dump it and move on. My 2 cents. Best of luck
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Old 12-18-2008, 06:05 PM
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Default Re: Time to buy a new house?

Use the existing house for your offices and buy the place you want to live. Maybe when things improve, you can turnover the existing place to commercial.

Good Luck,
Aubrey
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Old 12-18-2008, 11:17 PM
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Default Re: Time to buy a new house?

aubrey - 12/18/2008 8:05 PM

Use the existing house for your offices and buy the place you want to live. Maybe when things improve, you can turnover the existing place to commercial.

Good Luck,
Aubrey
Yes, that's kind of what I was thinking. Rent the old house to my business which I'm pretty sure can do w/o even dealing with rezoning since I'm rural now. May even be some tax benefit in there. Meanwhile, the longer I sit on it, the more the traffic increases on the road out front, the higher the value (I hope). Economy here is not bad and there really aren't any "deals" out there. I can't see where home values around here have dropped at all, but they certainly haven't risen in the last 12 mos either.

Thanks for the thoughts everyone.
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Old 12-19-2008, 02:08 AM
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Default Re: Time to buy a new house?

Back-in-Black - 12/18/2008 2:17 PM Economy here is not bad and there really aren't any "deals" out there. I can't see where home values around here have dropped at all, but they certainly haven't risen in the last 12 mos either.
Now I have no idea but, I don't think you'll see a reduction in prices from the sidelines. I think one has to get out into the market place and see how many houses are empty that are listed and then make offers to get a real sense of market values. IMO if there is empty houses for sale on the market then there has to be serious deals out there.
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Old 12-19-2008, 05:42 AM
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Default Re: Time to buy a new house?

Garett - 12/19/2008 4:08 AM

Back-in-Black - 12/18/2008 2:17 PM Economy here is not bad and there really aren't any "deals" out there. I can't see where home values around here have dropped at all, but they certainly haven't risen in the last 12 mos either.
Now I have no idea but, I don't think you'll see a reduction in prices from the sidelines. I think one has to get out into the market place and see how many houses are empty that are listed and then make offers to get a real sense of market values. IMO if there is empty houses for sale on the market then there has to be serious deals out there.
Yes, but don't forget, I have a relative in the real estate business so I can get 1st hand news w/o actually getting involved.
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Old 12-19-2008, 05:54 AM
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Default Re: Time to buy a new house?

So far as the notes, you can drag out the closing to about the same time as it takes for them to mature.
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Old 12-19-2008, 06:05 AM
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Default Re: Time to buy a new house?

From what I've read, it doesn't look like home prices will be going up any time soon so I would guess you can wait for the CD's to mature (if you need them for the downstroke). As far as the interest rate offer, I don't know how long that would last but again, things are not looking like there will be any major increases in the short term.

Maybe you could structure a deal to close when your CD's mature, 90 to 120 days isn't really that long. The finance company might commit to locking in your rate. You can always ask.
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