Comments on: Housing Has Dropped And Rates Are Low – Should I Buy A House? http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/ Building Wealth and Entrepreneurship When Your Wife Wants to Stay at Home With the Kids Wed, 17 Mar 2010 15:14:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Parag http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1386 Parag Wed, 15 Apr 2009 19:00:06 +0000 http://mywifequitherjob.com/?p=4154#comment-1386 Well written. Just a few points I think you missed. 1. I think it makes sense to compare the rent vs buy numbers over several years instead of just one year. You should ideally use the time you plan to stay in your current home. 2. My rent has been increasing by $50 to $100 every year. This increment needs to be taken into account. 3. Lastly, your calculation is making the assumption that the price of your house will stay the same. If I decide to keep the house for say 5 years and then the value of the house increases between 5-10% than house buying may not be all that bad. Well written.

Just a few points I think you missed.

1. I think it makes sense to compare the rent vs buy numbers over several years instead of just one year. You should ideally use the time you plan to stay in your current home.

2. My rent has been increasing by $50 to $100 every year. This increment needs to be taken into account.

3. Lastly, your calculation is making the assumption that the price of your house will stay the same. If I decide to keep the house for say 5 years and then the value of the house increases between 5-10% than house buying may not be all that bad.

]]> By: The Real Estate Toolbox: Top 50 Resources & Web 2.0 Sites for Buying or Selling a Home — Bankling http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1378 The Real Estate Toolbox: Top 50 Resources & Web 2.0 Sites for Buying or Selling a Home — Bankling Mon, 13 Apr 2009 23:50:35 +0000 http://mywifequitherjob.com/?p=4154#comment-1378 [...] My Wife Quit Her Job provides an interesting look at calculating the true value of buying right now. Just because prices and rates are low, doesn’t mean it’s a good time to buy for everyone. [...] [...] My Wife Quit Her Job provides an interesting look at calculating the true value of buying right now. Just because prices and rates are low, doesn’t mean it’s a good time to buy for everyone. [...]

]]> By: Reader Response: Should I Buy A House Right Now? | MyWifeQuitHerJob.com http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1366 Reader Response: Should I Buy A House Right Now? | MyWifeQuitHerJob.com Mon, 13 Apr 2009 15:56:19 +0000 http://mywifequitherjob.com/?p=4154#comment-1366 [...] received a surprisingly large number of emails after writing my last article entitled Housing Has Dropped And Rates Are Low - Should I Buy A House? so I thought I’d devote a blog post to addressing some of these mails. I was kind of shocked [...] [...] received a surprisingly large number of emails after writing my last article entitled Housing Has Dropped And Rates Are Low – Should I Buy A House? so I thought I’d devote a blog post to addressing some of these mails. I was kind of shocked [...]

]]> By: duce http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1359 duce Sat, 11 Apr 2009 05:10:58 +0000 http://mywifequitherjob.com/?p=4154#comment-1359 i love the post i love the post

]]> By: Miguel Wickert http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1357 Miguel Wickert Fri, 10 Apr 2009 13:54:12 +0000 http://mywifequitherjob.com/?p=4154#comment-1357 Steve, Perceptive evaluation on your part. A lot of people struggle with processing the numbers and easily get caught up in the glamor of wanting their dream home. And when this happens, they'll pay the price in more ways than one for a chunk of their lives. It's sad, I remember learning about all of this in college and realizing how ignorant the masses are- I couldn't recall ever learning this in high school. I was disappointed. If I had the cash flow, I'd aim to invest it into a product or situation which will possibly create more breathing room and cash to pursue other opportunities. Thanks for sharing. -Mig Steve,

Perceptive evaluation on your part. A lot of people struggle with processing the numbers and easily get caught up in the glamor of wanting their dream home. And when this happens, they’ll pay the price in more ways than one for a chunk of their lives. It’s sad, I remember learning about all of this in college and realizing how ignorant the masses are- I couldn’t recall ever learning this in high school. I was disappointed.

If I had the cash flow, I’d aim to invest it into a product or situation which will possibly create more breathing room and cash to pursue other opportunities. Thanks for sharing.

-Mig

]]> By: Happiness Is Better http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1350 Happiness Is Better Wed, 08 Apr 2009 11:09:35 +0000 http://mywifequitherjob.com/?p=4154#comment-1350 Nice analysis. The pride of ownership factor is a big one. I'm sure at some point (if you guys decide to buy a home), while owning a home, you guys are going to decide that you need to upgrade the kitchen for example. Even on a smaller scale, landscaping can get pretty expensive. Great post! -Dustin Nice analysis. The pride of ownership factor is a big one. I’m sure at some point (if you guys decide to buy a home), while owning a home, you guys are going to decide that you need to upgrade the kitchen for example. Even on a smaller scale, landscaping can get pretty expensive.

Great post!
-Dustin

]]> By: Steve http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1349 Steve Wed, 08 Apr 2009 01:46:34 +0000 http://mywifequitherjob.com/?p=4154#comment-1349 @Julie Good to hear from you! Since you are in the real estate business, I'm kind of surprised that you agree with me:) Though I guess renting a property and living in it are completely different scenarios. I would like to give being a landlord a try sometime and when I do, I'll be sure to comb each and every one of your articles. @ Peter When I owned my townhouse, there was a bunch of miscellaneous expenses during my 8 year stay there. Fixing things was quite a pain and I'm somewhat relieved to be renting again. @Evan Agree with you 100%. I'm going to write a followup article that address this. Thanks for pointing this out. @Stephen Deep down, I really want a house, but I also don't want to feel obligated to work for my mortgage. I hope what I'm doing is the right thing, at least in the near term. Thanks for the comment! @Asithi Yep, I agree with you and Julie. It definitely is a lifestyle. I owned a home for 8 years before selling it last year. It was fun to have full control over the look and feel of my place but I don't miss the maintenance. @Julie
Good to hear from you! Since you are in the real estate business, I’m kind of surprised that you agree with me:) Though I guess renting a property and living in it are completely different scenarios. I would like to give being a landlord a try sometime and when I do, I’ll be sure to comb each and every one of your articles.
@ Peter
When I owned my townhouse, there was a bunch of miscellaneous expenses during my 8 year stay there. Fixing things was quite a pain and I’m somewhat relieved to be renting again.
@Evan
Agree with you 100%. I’m going to write a followup article that address this. Thanks for pointing this out.
@Stephen
Deep down, I really want a house, but I also don’t want to feel obligated to work for my mortgage. I hope what I’m doing is the right thing, at least in the near term. Thanks for the comment!
@Asithi
Yep, I agree with you and Julie. It definitely is a lifestyle. I owned a home for 8 years before selling it last year. It was fun to have full control over the look and feel of my place but I don’t miss the maintenance.

]]> By: Steve http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1348 Steve Wed, 08 Apr 2009 01:41:05 +0000 http://mywifequitherjob.com/?p=4154#comment-1348 @Jonathan My sentiments exactly. In my gut, I feel like there's still a few years remaining in this recovery so it's probably best to wait a little bit @Nathalie My parents made most of their wealth through real estate so they are somewhat biased. Back in their days, a house was only 1.5-2x their yearly income. These days, it's more like 8x @Sue Thanks for pointing that out. I tried to make up a modest number to account for repairs ($100 a month) but that probably wouldn't be enough to cover everything. @Jonathan
My sentiments exactly. In my gut, I feel like there’s still a few years remaining in this recovery so it’s probably best to wait a little bit
@Nathalie
My parents made most of their wealth through real estate so they are somewhat biased. Back in their days, a house was only 1.5-2x their yearly income. These days, it’s more like 8x
@Sue
Thanks for pointing that out. I tried to make up a modest number to account for repairs ($100 a month) but that probably wouldn’t be enough to cover everything.

]]> By: Small Steps to Health http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1345 Small Steps to Health Tue, 07 Apr 2009 22:43:38 +0000 http://mywifequitherjob.com/?p=4154#comment-1345 My husband and I just brought our first home a month ago. We did the math and our numbers were an extra $200 a month for the mortgage. But when you add in taxes, insurance, HOA, lawn service, etc, it ended up costing about $900 extra. Since that was the amount of money we were putting aside each month for a down payment on a house, it just makes more sense in our situation to get the house now than to wait a couple more years. Julie Board mention that owning a house is more about a lifestyle. I completely agree. I find myself more interested in getting to know my neighbors and involve in community events. Before I would come home and just close the door. And I also find that I love being a home owner. We finally get to paint the walls and I am planning my garden for next spring. It is a nice feeling to go home to my own castle. My husband and I just brought our first home a month ago. We did the math and our numbers were an extra $200 a month for the mortgage. But when you add in taxes, insurance, HOA, lawn service, etc, it ended up costing about $900 extra. Since that was the amount of money we were putting aside each month for a down payment on a house, it just makes more sense in our situation to get the house now than to wait a couple more years.

Julie Board mention that owning a house is more about a lifestyle. I completely agree. I find myself more interested in getting to know my neighbors and involve in community events. Before I would come home and just close the door. And I also find that I love being a home owner. We finally get to paint the walls and I am planning my garden for next spring. It is a nice feeling to go home to my own castle.

]]> By: Stephen - Rat Race Trap http://mywifequitherjob.com/housing-has-dropped-and-rates-are-low-should-i-buy-a-house/comment-page-1/#comment-1344 Stephen - Rat Race Trap Tue, 07 Apr 2009 22:28:52 +0000 http://mywifequitherjob.com/?p=4154#comment-1344 Great article! I loved your detailed analysis. My personal opinion is that you are making the right decision. I think home ownership is overrated and risky. Having said that I have owned a home since I was 21 (the bank has owned it most of the time). Great article! I loved your detailed analysis. My personal opinion is that you are making the right decision. I think home ownership is overrated and risky. Having said that I have owned a home since I was 21 (the bank has owned it most of the time).

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