Answer to Brad's Housing Question

[Marvin [GodfatherofSoul] Bellamy]

Thanks for the info.

13 machines!  What are you training Counter-Strike clans?

Aaron wrote:

>[rant]
>
>You asked for the rant so here goes....
>
>Housing prices are still climbing because interest rates are low.
>
>Most people, when buying a house, look only at the monthly payment.  With
>Interest rates low they can afford a more expensive house so people with
>crappy houses want to sell for more.
>
>The average age of the house buyer keeps dropping as well.  These people
>tend to have less financial experience and don't research housing trends
>like older buyers do. (I just bought a house and I fall into the "younger"
>category although I researched for three years beforehand.)  They see the
>"no money down" loans and jump into a house no matter what the price is.
>
>The third problem is that we're led to believe from the time we're kids that
>our lives aren't complete unless we own a house.  "You're throwing away
>money." they say.  Well, my rent was $625 a month, my house payment is $759.
>So it's costing me more...  "But you're building equity!"
>
>"Huh?  All I see if $45 in equity a month for the first five years."
>
>"But it's tax deductable."
>
>"But it's still out of pocket and It's only $900 more than the standard
>deduction I have now.  And what about the $300,000 the house will actually
>cost me over the next 30 years?"
>
>"But the house will appreciate over 30 years."
>
>"So you're telling me that in 30 years... IF by some mirriclemy house value
>has TRIPPLED...  I MIGHT break even on this whole deal?"
>
>It's at this point the mortgage broker starts looking like a rat trapped in
>a cage...  So why did I buy a house?  One reason:  A woman.
>
>In my opinion the housing market is out of hand.  A friend of mine just
>bought a 3 bedroom, 1 bath home in Johnson county for $125,000.  That
>doesn't seem too bad untill you see that the house is 50 years old and only
>950 sq ft.  It's because of this that I moved to Missouri.  I just got a
>nice house, in a nice area, totally remolded, 1700 sq ft, 22 years old on
>the forclosure block for under $100K.
>
>My advise?  Only buy a house that you can afford to make twice the monthly
>payment or more on
>.  It's the only way I see I'll come out ahead.
>
>AND....  HEH, you thought I was done....  To move this back to being Linux
>related... Anyone want to come over and help me run CAT 5 through my money
>pit?  I have 13 machines that need to be reconfigured and set up as well. :)
>
>[/end rant]
>
>Aaron
>
>
>>--- Bradley Miller <bradmiller at dslonramp.com> wrote:
>>
>>>At 07:02 PM 8/1/02 -0500, Marvin [GodfatherofSoul] Bellamy wrote:
>>>
>>>>BTW, to you
>>>>home owners out there with some business knowledge.  Why is the
>>>>
>>>housing
>>>
>>>>market still climbing?  You'd think that the value of housing would
>>>>
>>>drop
>>>
>>>>now that fewer people can afford them.
>>>>
>>>That's the wildcard in this weird economy -- a lot of people are
>>>asking
>>>those same questions.  I *thought* I read that existing home sales is
>>>down,
>>>while new home sales is still up?  Perhaps I'm wrong . . .
>>>
>>>My theory?  (And it can only be called that at best . . . )  I think
>>>that
>>>some people are still trading up/out/etc... while the interest rates
>>>are
>>>lower.  Why buy someone's used home for $100,000 when you can get a
>>>brand
>>>new home for $140,000 and about the same payment that someone 4-5
>>>years ago
>>>had?  That being said, I haven't seen too many new homes that I would
>>>want
>>>to pay even $100,000 for.  They are sloppily put together, cheap
>>>looking
>>>interior wise, and about as useful as  . . . well you get picture.
>>>I'm
>>>quite happy with my 20 year old house (1982 - hard to fathom . . . )
>>>that
>>>has a nice large driveway and real wood everywhere.  Our home was
>>>model
>>>home for this subdivision when it opened up so it has a lot of little
>>>neato
>>>(for the time) things to spruce it up
>>>
>>>-- Bradley Miller
>>>
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