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(LAMP) Just put an offer in on our first house


Dr. Fong

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Just playing the waiting game to see if they'll accept the offer.  It's a great little house that is perfect for my wife and young son.  I hope we get the house, but man am I not looking forward to having a mortgage.  Wish me luck.

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Hope you get it! Most likely, the biggest single investment of your life (until you sell and buy the next one). Treat it that way and you'll realize the value of real estate when you decide to sell. You will not have to worry about real estate demand slowing in VA Beach.

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Hope you get it! Most likely, the biggest single investment of your life (until you sell and buy the next one). Treat it that way and you'll realize the value of real estate when you decide to sell. You will not have to worry about real estate demand slowing in VA Beach.

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I dunno... if Gavin moves back there - you may see a dip. 0:)

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The mortgage isn't the hard part.  It's when stuff starts breaking down that you'll miss the old "just call maintenance" days.

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I'm reminded of that quote, "No one is ever as stupid as the person who owned your house before you."

 

Every time I look down my crawl space, I shake my head and say WTF?!?!

 

0:)

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Your primary residence should not be treated as an investment.

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Please clarify. This is the fourth house I have owned. I knew that I would eventually sell the previous homes I owned and cared for them as I would my 401k and any other investment. When I sold them, I reaped the rewards of that care.

 

Though I intend to settle for quite a while in my present place, I still consider it an investment and treat it as such for someday, far in the future, we will sell it. Though we have made many changes to make the house our personal paradise, we never make changes that will impact the long-term value of the property.

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Please clarify. This is the fourth house I have owned. I knew that I would eventually sell the previous homes I owned and cared for them as I would my 401k and any other investment. When I sold them, I reaped the rewards of that care.

 

Though I intend to settle for quite a while in my present place, I still consider it an investment and treat it as such for someday, far in the future, we will sell it. Though we have made many changes to make the house our personal paradise, we never make changes that will impact the long-term value of the property.

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When you sold your first three houses what did you purchase with the equity? Another house to live in correct? Unless you plan to downsize or live in an area where the homes are much less expensive all you are doing is purchasing a new place to live. Your home is a place to live and really nothing more. Any equity you have is pretty much 100% illiquid. I consider investments something I can liquidate fairly quickly or something I can draw income from during my retirement or to supplement my current income. A primary residence is neither of these. Now, a rental property is a different story. While it's still illiquid and maybe not easily liquidated I can still draw income from it or sell it and then in turn invest the proceeds in something that IS liquid and draw income from that.

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When you sold your first three houses what did you purchase with the equity?  Another house to live in correct?  Unless you plan to downsize or live in an area where the homes are much less expensive all you are doing is purchasing a new place to live.  Your home is a place to live and really nothing more.  Any equity you have is pretty much 100% illiquid.  I consider investments something I can liquidate fairly quickly or something I can draw income from during my retirement or to supplement my current income.  A primary residence is neither of these.  Now, a rental property is a different story.  While it's still illiquid and maybe not easily liquidated I can still draw income from it or sell it and then in turn invest the proceeds in something that IS liquid and draw income from that.

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OK - I see your point but two items you mention are exactly what I intended. 1.) I moved from a location in a state where housing prices were ridiculously high to another state where they were much more reasonable. 2.) Eventually, all of us will get old and downsize.

I will contest your other point - just because some is not very liquid does not disqualify it as an investment. For example, a 401k is an investment but, due to tax law, it is not something that is very liquid until you reach a certain age.

I consider an investment something that will appreciate over time. A car is not an investment. If your house is not going to appreciate over time, then consider moving elsewhere or fix it up. When I sold all of my places, the appreciation I received was far more than any stocks/bonds/mutual funds/etc. return I would have received if I placed the money there. Real estate appreciation in many parts of the country is just ridiculous over the past 10-15 years. I lived in a few states and checked out many parts of the country before I decided where I wanted to hang out. But I researched every place I moved in detail before I moved there. Spoke with the local government and zoning boards so I had an idea beforehand what was proposed for development (residential & commercial), how the state or local govt. was enticing business to that area, what kind of competition I would have if I sold my place, property value increases over the past 5-10 years, etc. This resulted in having a 50-80% appreciation in value for each of the homes I sold. And this after only living there for 2-4 years each time.

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So we're still waiting. Man I hate this. I think the agent is pissed that we offered below the asking price. Too many of these agents around here have gotten too used to the good days and forgotten how to actually do some work to sell a house.

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UPDATE:

 

Didn't get the house. We were offering a little less than the asking price and a mysterious last minute contract came in and beat us out. I suspect the selling agent pressured someone she had previously shown the house so that she wouldn't have to split the comission with our buying agent, but who the hell knows.

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UPDATE:

 

Didn't get the house.  We were offering a little less than the asking price and a mysterious last minute contract came in and beat us out.  I suspect the selling agent pressured someone she had previously shown the house so that she wouldn't have to split the comission with our buying agent, but who the hell knows.

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It'll happen.

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UPDATE:

 

Didn't get the house.  We were offering a little less than the asking price and a mysterious last minute contract came in and beat us out.  I suspect the selling agent pressured someone she had previously shown the house so that she wouldn't have to split the comission with our buying agent, but who the hell knows.

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Damn realtors. Oh wait, that was another thread. Sorry about the house.

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