Buying a house

Discussion in 'General OFF TOPIC' started by mc2, Jan 22, 2013.

  1. mc2

    mc2 Active Member Contributor

    OK, I'm back in the good old USA after a 15 year absence and its great to be an American in America. Now I am in a serious mode to buy a house for the first time; I do have two Fat Boys to provide a home for!

    From limited research and words from a few friends, the consensus here in MN is - the housing market is making a slight turn toward appreciation and that it's a great time to buy.

    I've started looking over the web ads to find many sales on Foreclosure, Short Sales and Bank Owned. I've heard that if a bank sells a home they have been sitting on, for far less than the listing price, the government will re-imburse at least a part of the difference. (However, and if so, I question the integrity or ethics of your tax dollars doing that, but it is the system).

    I'm not looking for a fixer-upper, but do want to stay busy with practical improvements to flip it in 12 to 18 months. Then perhaps upgrade and do it again. Of course it is all dependent on the economy.

    I will not require any funding for the purchase, and therefore, feel a strong advantage in negotiations and long term sustanence, regardless of the economy (to a point greater than if monthly payments were involved).

    I will appreciate any comments or experiences with the market as it is.
  2. r_k_dragon

    r_k_dragon Active Member

    Since you'll probably get lots of comments, I'll just start with you're funding plan. With the mortgage interest still being tax deductible, I'd lean toward financing for 10-15 years and simply double or triple up on principle payments. Or just pay it off before you're ready to sell. Just a thought!:breakdance:cheers
  3. Jeff Klarich

    Jeff Klarich Well-Known Member Contributor

    Good advice, why use all your money! take advantage of the banks money and you have a tax write off at the end of the year.
  4. Rubyred

    Rubyred Senior Member

    As far as I know banks very rarely take ownership because they become liable for taxes owed. Make sure you know the tax liability on any foreclosures, short sales, etc. JMO.
  5. Breeze3at

    Breeze3at Well-Known Member

    Spend some money and hire a qualified, certified home inspector. There are many things the average person does not know to inspect. We had our current house inspected, and soon found the inspector missed a problem with the air handler. Their insurance/guarantee paid for the repair.
  6. turnerbend

    turnerbend Active Member

    Be prepared for the long haul and remember that if you can get a good deal, so can the next buyer. Flipping went out a few years back....
  7. martillo

    martillo Active Member

    Pay for it outright, the interest deduct is minimal, rates are at about 4% In your income bracket you will only be allowed to deduct (insert your tax bracket) times the interest only on you house payment. Look up Dave Ramsey Financial Peace
  8. 2000classic

    2000classic Active Member


    VERY good advice!!!!!:s
  9. mc2

    mc2 Active Member Contributor


    One never gets to much information about such matters.

    I've rarely, if ever, been one to be in the long term norm with the system, any system. After 60 years I don't see that changing.

    A bank loan will be difficult without an income, but I will be on the lookout for options. (No, I'm not independently wealthy either - just at an advantage at the this time).

    I'm certianly considering short and long term scenarios, and appreciate the replies.

  10. krtracr

    krtracr Member

    IMOif you have the chance to pay cash, do it. It give you better options with insurance.

    Not sure what is required in MN, I live in Florida where mortgage companies require wind storm coverage, most require flood insurance even if you are not in a flood zone.

    I have never had flood insurance and have not had wind storm coverage since 2005, to the tune of 3 to 4 GRAND per year.

    Sure we are taking a chance, but in our area, in order to keep the premium down the deductable is about 25 GRAND and the coverage is limited.

    Good luck