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TOPIC: Do you need to own a home?

Do you need to own a home? 5 months 2 weeks ago #1

  • FrankN
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Yeah that is crazy, I would never sign up for that unless there was some kind of huge discount.
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Do you need to own a home? 5 months 2 weeks ago #2

  • Wanderer
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Share your thought ... found a house but it was contingent on six other home sale contingencies and I knew in the back of my mind someone would fall out and the house of cards would fall in. Walked away.
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Do you need to own a home? 5 months 3 weeks ago #3

  • FrankN
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JGibbs wrote:
JacksonM wrote:
My grandparents did it perfectly. The closing of their old home was contingent on the closing of their new home. They bought in the morning and sold in the afternoon.
That method seems smarter to me. I can't imagine balancing two mortgages on top of everything else. Seems to me that scenario could push a seller into accepting a lower offer just to be done with it.

Did the seller of the new home have an issue with that though? That is the only hangup I could see with that. If I were selling ahome, I wouldn't want another home sale to be contingent of selling my house.
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Do you need to own a home? 6 months 2 weeks ago #4

  • JGibbs
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JacksonM wrote:
My grandparents did it perfectly. The closing of their old home was contingent on the closing of their new home. They bought in the morning and sold in the afternoon.
That method seems smarter to me. I can't imagine balancing two mortgages on top of everything else. Seems to me that scenario could push a seller into accepting a lower offer just to be done with it.
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Do you need to own a home? 6 months 2 weeks ago #5

  • JacksonM
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JGibbs wrote:
Buy another house before the other is sold? I know people who have done it and they wound up selling their home for much less because of it. I'm not seeing the positive side. Wouldn't that hurt your credit rating and your ability to get a mortgage for the second house? Maybe this works if the first home is paid off and the buyer is looking for to move or looking for a vacation home.

I finally did look at the article. One of the reasons is basically the fear of missing out. If you just LOVE the new one but don't have a buyer, it could be worth the leap. Seems to me you won't love trying to pay two mortgages. My grandparents did it perfectly. The closing of their old home was contingent on the closing of their new home. They bought in the morning and sold in the afternoon.
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Do you need to own a home? 6 months 3 weeks ago #6

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Buy another house before the other is sold? I know people who have done it and they wound up selling their home for much less because of it. I'm not seeing the positive side. Wouldn't that hurt your credit rating and your ability to get a mortgage for the second house? Maybe this works if the first home is paid off and the buyer is looking for to move or looking for a vacation home.
Last Edit: 6 months 3 weeks ago by JGibbs.
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Do you need to own a home? 6 months 3 weeks ago #7

  • JacksonM
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I've started looking at homes for sale in my area just to see what's out and about. The site I've seen searching through recently sent me an article listing reasons why you should buy before you sell. I admit I haven't read the article, but it seems like a ludicrous idea to me.
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Do you need to own a home? 1 year 5 months ago #8

  • FrankN
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Interesting to hear TISHBEL, what area of the country do you live in?
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Do you need to own a home? 1 year 5 months ago #9

  • Tishbel
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One of our reasons for buying was because any mortgage we got would have been far cheaper than rent where we were moving. There was a lack of good rental property in the area, so decent rentals were priced sky high. If we ever move we'll probably see about letting the house rather than selling it!
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Owning a home is wonderful as long as you can afford it. 1 year 7 months ago #10

  • FrankN
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Well at a high level, its because financing is so cheap right now. Also we are still in a growth/recovery of the economy so people "feel" richer. That has a lot to do with people deciding to make a purchase on their house.
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Owning a home is wonderful as long as you can afford it. 1 year 8 months ago #11

  • Breakinger
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FrugalFran wrote:
FrankN wrote:
I am still looking right now. Housing prices in my area are at all time highs so I am being extremely cautious about purchasing.

We're in a similar boat because even though we live in a very rural area, there has been a pipeline boom going on here for several years. All that money coming into the region jacked up prices big time.

Even though my husband and I already own our own home, we've been looking for the past few years for some place else to live. We absolutely love our home right now, but we don't like the location of it. We have also been running into the issue of home prices being on the rise. Does anyone know why it seems like they are very expensive again?
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Do you need to own a home 1 year 8 months ago #12

  • MidSouthGal
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The American Dream had its roots in a different culture, and more importantly a different economic climate. The dollar cannot buy what it used to 30 years ago. A factory worker could own a home, work a 9 to 5 job, and afford the yearly vacation for his family. These days it is not uncommon for both spouses to have degrees, work two jobs, and barely afford rent.

But yes, for me we already own a home.
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Owning a home is wonderful as long as you can afford it. 1 year 8 months ago #13

  • Wanderer
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Would suggest that the quality of the housing market has an affect. If housing turns well and keeps or increases values (California) not a problem. Today, what employer offers long term? Few, so we need to take the risk. If the numbers work go for it. Owned several houses and it is important to keep the eye on the ball ... purchase using the business side of our mind rather than emotional to ensure we are not setting ourselves up to fail (market).
Last Edit: 1 year 8 months ago by Wanderer.
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Owning a home is wonderful as long as you can afford it. 1 year 8 months ago #14

  • Moneyes
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I think the main thing people need to keep in mind when buying a home is their own financial security. Home contracts are long term, so your employment situation needs to be the same.
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Owning a home is wonderful as long as you can afford it. 1 year 8 months ago #15

  • FrugalFran
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Wanderer wrote:
As we are aware from the melt down of 2008-2009, high prices can leave us underwater so caution is extremely important. Yes, paying rent leaves no equity but being underwater is worse as you have no equity and an albatross around your neck!!!

No doubt, Wanderer. It's amazing to me how many people I know that are under water with their homes. Some of them are well enough off that they can afford to take the loss, but others are just walking away.
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