Buy a GTR or a House?

birdmanx1 · 09-12-2011, 02:11 PM

Quote:

Originally Posted by Isamu

actually, houses can gain value in as little as 1 year... very rarely will a house decrease in value.

Infact, like somewhere here in Minot, houses are going up dramatically..
My wife and I are looking for a house right now.. and even in some of the less then desirable areas... the houses which cost 50-100k 10 years ago, are now going for 150-200k..

There is a sub-division that just went up last year, homes sold for 200-250, and are now selling from 250-300k...

Tim, the market in North Dakota is very different to let's say FL, NV, OH. Home prices are actually going up in your state with the heavy presence of oil companies and defense industries buying up huge lots of land. I do agree that in some areas pricing went up, DC is one of those examples because of the Federal Gov. I looked into buying rental properties early in the year but held off due to the issues with renters (wrecking your home, leaving you with repairs for the next one, bad tenants, low return due to declining home pricing). Please don't get me wrong, a house is a much better investment than a car but if one at at the early stages of his/her career (where you might be expected to move around) buys a house thinking that it will return big in a few months, then that person will be up for some nasty surprise. We are no longer in the 90s & early 2000s where you were guaranteed major returns once you bought your house

birdmanx1 · 09-12-2011, 02:15 PM

Quote:

Originally Posted by Cmike2780

Tell that to the people who bought a house in Vegas, Arizona, Florida etc... It varies by location obviously, but for the most part, in weaker markets, it might not be another 15 years before the market value rebounds. The supply as of now, far exceeds the demand, hence the increasing amount of people "underwater" with their house. Just as an example, my uncle bought a brand new house in Jacksonville, FL about 3 years ago for about $250k. Really nice house and far larger than anything you could find in NY for the same price. It's valued at around $180k now. He's pretty much stuck there now unless he takes a huge loss. Scary thought should the unexpected happen like a layoff.

I didn't see you post Mike but you said exactly what I was stating in my post. If one expects to be in an area for a while then a house purchase will make sense despite the market trending. If one expects to be in an area for 2 years or less (usually typical for people in early stages of their career), a house makes absolutely no sense if the intend is to sell. Average home ownership duration is 5 - 7 years BTW.

Isamu · 09-12-2011, 02:21 PM

Quote:

Originally Posted by birdmanx1

Tim, the market in North Dakota is very different to let's say FL, NV, OH. Home prices are actually going up in your state with the heavy presence of oil companies and defense industries buying up huge lots of land. I do agree that in some areas pricing went up, DC is one of those examples because of the Federal Gov. I looked into buying rental properties early in the year but held off due to the issues with renters (wrecking your home, leaving you with repairs for the next one, bad tenants, low return due to declining home pricing). Please don't get me wrong, a house is a much better investment than a car but if one at at the early stages of his/her career (where you might be expected to move around) buys a house thinking that it will return big in a few months, then that person will be up for some nasty surprise. We are no longer in the 90s & early 2000s where you were guaranteed major returns once you bought your house

I know, but I just don't want the kid to think that he won't see any return...and it's not always a matter of stages of ones career, I could be shipped off at any time. but again, I have a wife... so it makes the descion easier for me.
and again, you are very correct. the market is very geo-centric... as for my area... you forgot the flood that took 1000s of homes forcing our market to skyrocket.... FFFUUUU mother nature!

Isamu · 09-12-2011, 02:25 PM

Quote:

Originally Posted by birdmanx1

I didn't see you post Mike but you said exactly what I was stating in my post. If one expects to be in an area for a while then a house purchase will make sense despite the market trending. If one expects to be in an area for 2 years or less (usually typical for people in early stages of their career), a house makes absolutely no sense if the intend is to sell. Average home ownership duration is 5 - 7 years BTW.

I guess I am just in a better situation then most as far as housing market..

and when I was in Arizona.. the market was vastly superior.. it was a buyers market yes, but people were still seeing better then average returns!

I wish I had purchased when I was in Tucson... :sadface:

birdmanx1 · 09-12-2011, 02:45 PM

Quote:

Originally Posted by Isamu

I know, but I just don't want the kid to think that he won't see any return...and it's not always a matter of stages of ones career, I could be shipped off at any time. but again, I have a wife... so it makes the descion easier for me.
and again, you are very correct. the market is very geo-centric... as for my area... you forgot the flood that took 1000s of homes forcing our market to skyrocket.... FFFUUUU mother nature!

HAHAHA you are right broski, there are some great deals far and in between. D*mn flood, I'm glad you were not in the direct path from the pics you sent pfeeeeeeeeww

AZ was hit haaaaaaaaaard with this market, some great deals to be had though for those with an extended horizon!

Isamu · 09-12-2011, 03:15 PM

Quote:

Originally Posted by birdmanx1

HAHAHA you are right broski, there are some great deals far and in between. D*mn flood, I'm glad you were not in the direct path from the pics you sent pfeeeeeeeeww

AZ was hit haaaaaaaaaard with this market, some great deals to be had though for those with an extended horizon!

dude, we are looking at a few places.. upwards of 250k which SHOULD be more like 200... ffff minot.

LONDON2012 · 09-12-2011, 03:41 PM

I was recently went through a similar decision except with the 370z or house. I'm a few months out of college. I have a job that pays ok, but not what I want to do long term. Also married though, and my wife makes a decent amount more than me and is on a long-term career path with her company.

I skimmed the thread and I think I saw you live with your parents. First thing I think of is picking up a chick with the GTR and trying to take her back to mommy and daddy's house. I don't see that ending well. So that's out as an option. IMO

As far as house or save up money, in general, I think it depends on rent prices. We bought a house at 4.25% interest, but everything combined mortgage insurance, prop tax, house insurance, loan, it all comes out to $75 a month more than what we were paying in rent for a two bedroom one bath apartment. We bought what most people consider a starter home: 1600 sqft, 4 bed, 2 bath. We plan on living in it until retirement though. We don't have a very good emergency fund saved, but with the costs of renting and owning being similar, we felt that it made sense to buy at this time.

I guess all that to say that I think buying a house can still make sense in this environment. Also the Fed is going to keep interest rates low for the next 2 years, and obviously the inventory is huge, so I don't think there is any rush. Buy if you have a long-term plan and can visualize how owning a home will help meet your certain long-term life goals.

Pelican170 · 09-12-2011, 04:00 PM

Quote:

Originally Posted by m4a1mustang

If you've only had your job for 3 months I wouldn't buy anything right now.

Isamu · 09-12-2011, 04:25 PM

Quote:

Originally Posted by LONDON2012

( Click to show/hide )

where do you live that a 4brdm 2 bath is a starter home

but I agree buying a house is a good plan

bacalhau16 · 09-12-2011, 11:37 PM

I must admit, taking a girl back to my parents house is pretty much out of the question, but Ive gotten lucky with just going to their place or lifeguard chairs at beachs which is always fun on a nice summer night.
I have the house inspection scheduled for tomorrow and meeting with the mortgage broker right after that. This house is also a 4 bedroom 2.5 bath, so I guess where I live its a 2400 sq foot starter home as well, lol.

bacalhau16 · 09-12-2011, 11:41 PM

I also was referred to as "kid" at some point in this convo. I dont really care or am offended at all, but not a kid by any means. Im the general manager of a restaurant doing approx $50k a week in sales, nothing crazy, but not a small restaurant either. I first started general managing a restaurant when I was 21, and moved out of my house about the same time on my own. I just really love cars. A lot. And deciding between a GTR or a house, is a serious debate of sorts to me. I know what the correct answer should and will be, as I am already purchasing the house, but it still doesnt mean I dont look at GTRs for sale on cars.com and autotrader everyday.

birdmanx1 · 09-13-2011, 06:04 AM

Quote:

Originally Posted by bacalhau16

I must admit, taking a girl back to my parents house is pretty much out of the question, but Ive gotten lucky with just going to their place or lifeguard chairs at beachs which is always fun on a nice summer night.
I have the house inspection scheduled for tomorrow and meeting with the mortgage broker right after that. This house is also a 4 bedroom 2.5 bath, so I guess where I live its a 2400 sq foot starter home as well, lol.

Congrats on moving ahead with the house purchase. May I suggest you add a clause allowing you to back out without losing any proof of intent money if there are further damages you discover post inspection and pre-closing. Not ensuring that such clause is added will potentially cost you big money. Also spending an extra $200 for an independent appraiser might help you should the lender pick be biased. Congrats once again Bacal, exciting stuff

b1adesofcha0s · 09-13-2011, 08:31 AM

Quote:

Originally Posted by birdmanx1

Congrats on moving ahead with the house purchase. May I suggest you add a clause allowing you to back out without losing any proof of intent money if there are further damages you discover post inspection and pre-closing. Not ensuring that such clause is added will potentially cost you big money. Also spending an extra $200 for an independent appraiser might help you should the lender pick be biased. Congrats once again Bacal, exciting stuff

Good luck with the house purchase!

Isamu · 09-13-2011, 01:32 PM

Quote:

Originally Posted by birdmanx1

Congrats on moving ahead with the house purchase. May I suggest you add a clause allowing you to back out without losing any proof of intent money if there are further damages you discover post inspection and pre-closing. Not ensuring that such clause is added will potentially cost you big money. Also spending an extra $200 for an independent appraiser might help you should the lender pick be biased. Congrats once again Bacal, exciting stuff

truth... on a side note. imma hit you up in a pm man, gotta tell you about this house im looking at

birdmanx1 · 09-13-2011, 05:34 PM

Quote:

Originally Posted by Isamu

truth... on a side note. imma hit you up in a pm man, gotta tell you about this house im looking at

sure thing bro. Hit me up whenever

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09-12-2011, 03:41 PM	#67 (permalink)
LONDON2012 Base Member Join Date: Jun 2009 Location: colorado Posts: 109 Drives: 2014 Mustang Rep Power: 15	I was recently went through a similar decision except with the 370z or house. I'm a few months out of college. I have a job that pays ok, but not what I want to do long term. Also married though, and my wife makes a decent amount more than me and is on a long-term career path with her company. I skimmed the thread and I think I saw you live with your parents. First thing I think of is picking up a chick with the GTR and trying to take her back to mommy and daddy's house. I don't see that ending well. So that's out as an option. IMO As far as house or save up money, in general, I think it depends on rent prices. We bought a house at 4.25% interest, but everything combined mortgage insurance, prop tax, house insurance, loan, it all comes out to $75 a month more than what we were paying in rent for a two bedroom one bath apartment. We bought what most people consider a starter home: 1600 sqft, 4 bed, 2 bath. We plan on living in it until retirement though. We don't have a very good emergency fund saved, but with the costs of renting and owning being similar, we felt that it made sense to buy at this time. I guess all that to say that I think buying a house can still make sense in this environment. Also the Fed is going to keep interest rates low for the next 2 years, and obviously the inventory is huge, so I don't think there is any rush. Buy if you have a long-term plan and can visualize how owning a home will help meet your certain long-term life goals.

09-12-2011, 11:37 PM	#70 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 13	I must admit, taking a girl back to my parents house is pretty much out of the question, but Ive gotten lucky with just going to their place or lifeguard chairs at beachs which is always fun on a nice summer night. I have the house inspection scheduled for tomorrow and meeting with the mortgage broker right after that. This house is also a 4 bedroom 2.5 bath, so I guess where I live its a 2400 sq foot starter home as well, lol.

09-12-2011, 11:41 PM	#71 (permalink)
bacalhau16 Base Member Join Date: Jun 2011 Location: palm coast Posts: 108 Drives: 2013 nissan 370z Rep Power: 13	I also was referred to as "kid" at some point in this convo. I dont really care or am offended at all, but not a kid by any means. Im the general manager of a restaurant doing approx $50k a week in sales, nothing crazy, but not a small restaurant either. I first started general managing a restaurant when I was 21, and moved out of my house about the same time on my own. I just really love cars. A lot. And deciding between a GTR or a house, is a serious debate of sorts to me. I know what the correct answer should and will be, as I am already purchasing the house, but it still doesnt mean I dont look at GTRs for sale on cars.com and autotrader everyday.