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How did you feel before buying a house?
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amother
OP


 

Post Sun, May 08 2022, 4:47 pm
We currently have our saved money invested in stocks with the hope for it to grow long term. Today, my husband was offered a deal to buy a house which would empty our savings and we would need to borrow money. Real estate is insanely high where we live. It is so hard for me to make the jump and see all our hard earned savings disappear into a small house. Is this what most people feel like when buying a house?
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Amarante




 
 
    
 

Post Sun, May 08 2022, 4:54 pm
Is this really a deal?

Have you spent time extensively looking at homes so that you have a real sense of what is available and at what price?

Are you going to have to borrow for the down payment or does the borrowing consist of standard mortgage loan.

Are the monthly payments realistic for your income? Don't forget that as a homeowner you wlll have expenses that you don't have as a renter and you need to be able to come up with the money if the pipes leak or an appliance breaks down. I just paid $300 to fix a toilet and that was a relatively simple repair.

When I bought my house I had looked at a lot of different houses and so I felt comfortable that this was truly the house I liked at a price that reflected fair market value. No house will be perfect unless you have truly unlimited funds of course but I could go forth at peace that I had done enough research and looking so that my choice was the best possible and that I wouldn't have regrets later that I had rushed into something or missed something that I could have avoided.
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WitchKitty




 
 
    
 

Post Sun, May 08 2022, 5:02 pm
I felt so much calmer when we bought.
Instead of feeling that I was wasting money on rent, I am paying less for mortgage and know it is actually doing something.
Yes, owning a house is expensive. Taxes, fixing things... but on the other hand, it's your house. You're taking care of it. Instead of calling the owner, waiting for him to check it out, then he gets the cheapest person to fix it then you call him the next week again because it happened again. Your house, your decisions.
But any big thing I buy gives me that feeling you're describing- what, that's all my hard work into one thing?
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amother
Poinsettia


 

Post Sun, May 08 2022, 5:21 pm
We sunk all our savings into a house and things were really tight for the first year. But rent would have been just as much as our mortgage and prices are only going up so we felt it was the right choice
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amother
Bone


 

Post Sun, May 08 2022, 5:33 pm
I think if you live in an area with very costly real estate and are not wealthy you will probably feel this way.
I'm not saying this is the right house or you really got a great deal, but I am acknowledging that in such a market it feels crazy.

We had a similar experience. When I thought about it, I was like, all those years all this money for just a house? But we wanted a house, we had saved for it, and this was an affordable house in a really high cost area. It's a lot of money and it may feel crazy because in Cleveland you could buy 3 houses for this price, but it's your house in your location. It's a lot of money and also worth a lot of money.
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amother
Red


 

Post Sun, May 08 2022, 5:37 pm
RE is crazy now where we live too. As much as I would like to buy, and we can afford to, we're going to wait a little and see if things settle. As long as I have a choice I want to feel good about it and not regret buying during a bubble. I'm fairly certain things will either level off or drop at least somewhat, so there's no reason to rush in now. If we found a real deal and the house felt right we would probably do it. But it has to feel right.
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hodeez




 
 
    
 

Post Sun, May 08 2022, 5:39 pm
We got a good deal on an amazing house that was perfect for us. Watching our savings drain was anxiety inducing and frightening, but bh we are so happy with the move, as are our kids.
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westchestermom




 
 
    
 

Post Sun, May 08 2022, 5:43 pm
We waited until we could find something we could comfortably afford. It means we live a bit far from everything in an old house and used all our savings but it had a new roof and nearly everything worked even if everything wasn't pretty. I also had a backup plan, I could borrow against my pension for emergency repairs.
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amother
Raspberry


 

Post Sun, May 08 2022, 7:28 pm
It's really hard. I went from having savings and money into the bank to putting it all into our house. It was so hard to not have that cushion financially. But now we have more space and the house will go up over time. It is tighter financially now and I need to try to build up savings again for expenses. Houses have necessary repairs and you need to spend on them. But you shouldn't just buy the first house. You should look around.
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amother
Thistle


 

Post Wed, May 11 2022, 6:34 am
Houses don't go down they stabilize readjust and go up again.
When I bought my house we borrowed evey penny. Bh we paid all off and mortgage too.
Rent was at that time 1200-1400. Mortgage with taxes was 1650. After 22 yrs all others now pay 4000 for identical house I pay 1700 including maint insurance taxes and utilities.
Its much better than savings account.
Also quality of life.
Now we don't need to wave goodbye to our paychecks as they pass by in the bank account on the way to the landlord.
Also in years to come when we leave behind the house it would give our children much more than a savings account would.
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amother
Crocus


 

Post Wed, May 11 2022, 6:54 am
amother [ Thistle ] wrote:
Houses don't go down they stabilize readjust and go up again.


I bought in 2008 bubble in a hot area and it def went down for a few years. It went back up but took a long time.
But you buy a house to live in.
It’s impossible to know what will happen
Back then they said it was impossible but if interest rates go really high and ppl lose jobs in a recession no one knows what will be.
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amother
Opal


 

Post Wed, May 11 2022, 8:48 am
We saved up to buy a house, so I didn't feel like I was draining my savings.
The savings wasn't put away for any other purpose.
It was money set aside to buy a house.
We felt very excited and grateful!

Maybe the problem is that you don't love the house you are looking at?
We also spent a lot more than we had imagined and stayed with some debt, but I love love love our house.
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amother
Rose


 

Post Wed, May 11 2022, 9:07 am
Just be careful waiting too long as interest rates are going up. I might be moving to a less expensive city soon, but we looking up mortgage rates and was shocked. For sure 2 percent higher than 2 years ago (we had decent rate already, but then re-financed during COVID.) Ugh!!! Feels like so hard to get ahead.
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amother
Phlox


 

Post Wed, May 11 2022, 9:11 am
People downplay how valuable it is to own property. You need to see your house as your investment. Sell at the right time and you get a return. But it’s best to love the house.
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justforfun87




 
 
    
 

Post Wed, May 11 2022, 9:13 am
I don't think anyone looks back and says I shouldn't have bought. The prices never go down, it just doesn't. Even the housing bubble of 2008 the house prices have now exceeded that.
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amother
Camellia


 

Post Wed, May 11 2022, 9:23 am
The first apartment that we bought in Israel we were able to get a 90% loan for because it was only way that we could afford it. We had a pretty big mortgage but we were way less than renting and we had something that we really liked. Fast forward 10 years and we doubled our money on it. And we were able to buy something else larger and nicer. So I don't know if you have to absolutely love it just you want to buy in a market where you know that it's going up. I feel like with renting or just throwing away money and you never know when they will raise your price or ask you to move. There's just some piece of mind of owning your own home.
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mommish613




 
 
    
 

Post Wed, May 11 2022, 9:30 am
One of the big ticket items that people save for is a house. It’s an investment in your future. I don’t know how old you are but hopefully you will have many more years to build your savings back up.

If the house is being sold for market value and you have enough space for you and your family to live comfortably AND you looked into the neighborhood and it would be a good fit for you AND you can afford the monthly mortgage payments then you shouldn’t worry.

It is disconcerting to buy now when things are at an all time high now but there’s no way to know what the future would bring.
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pause




 
 
    
 

Post Wed, May 11 2022, 9:50 am
justforfun87 wrote:
I don't think anyone looks back and says I shouldn't have bought. The prices never go down, it just doesn't. Even the housing bubble of 2008 the house prices have now exceeded that.

There were plenty people who were in the red for many years before the value of their house returned to what it was when they bought before the 08 crash.
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tichellady




 
 
    
 

Post Wed, May 11 2022, 10:44 am
I felt extremely nervous and anxious. It’s such a big purchase and you barely get to even spend time in the house. I couldn’t sleep for weeks
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amother
Mocha


 

Post Wed, May 11 2022, 11:45 am
We used all our savings, plus we borrowed some $ for our down payment. I felt very anxious as we suddenly went from having lots of cash in the bank to $0! Bh we repaid most of it. Slowly starting to save up again. We are so happy we bought when we did. Our property's value has increased nicely.
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