Forum Settings
       
Reply To Thread

Buying a house soon.Follow

#1 Mar 26 2012 at 6:24 AM Rating: Good
Well Zam, I started on this forum as a 14 yr-old wise ass. Who trolled and flame warred as much as possible.

However, now I'm 22 and I have a family my own. I'm looking into either buying a house, renting to own, or buying land and building a home. I'm looking for some feedback from the masses on what my compatriots of zam think on these three which is the smarter option on a 35k a yr salary, and what should I look for in a house, seeing as how the best I've lived in up to now is a crappy two bedroom apartment...

Thanks in advance.
____________________________
I'm back, not to cause trouble. And anyone who knows the original Weedjedi.....please don't karma bomb me. Just saying.
I'm 20 now, more mature and less stupid. And the only reason I didn't use the original weedjedi is because I can't remember it's login details.
#2 Mar 26 2012 at 6:39 AM Rating: Excellent
Soulless Internet Tiger
******
34,669 posts
If you buy a home, when calculating the mortgage/taxes/etc to figure out how much you're going to need to pay monthly and whether it fits into your budget, add another 10-15% onto the figure. When you call the landlord for repairs and routine maintenance you'll find your bank account answering the phone.

Knowing what country you live in would help as well, given there are substantial differences in how mortgages work depending on the country you live in. For example, as I'm told, in the US, when you sign a mortgage for 30 years at 5% interest, you pay 5% for the 30 years. In Canada that same mortgage means you borrow the money over 30 years but the 5% interest is only for the first 5 years and then you renegotiate that rate for another 5 years.
____________________________
Donate. One day it could be your family.
Need a hotel at a great rate? More hotels being added weekly.

An invasion of armies can be resisted, but not an idea whose time has come. Victor Hugo

#3 Mar 26 2012 at 6:55 AM Rating: Good
Unforkgettable
*****
13,160 posts
Uglysasquatch wrote:
Knowing what country you live in would help as well, given there are substantial differences in how mortgages work depending on the country you live in. For example, as I'm told, in the US, when you sign a mortgage for 30 years at 5% interest, you pay 5% for the 30 years. In Canada that same mortgage means you borrow the money over 30 years but the 5% interest is only for the first 5 years and then you renegotiate that rate for another 5 years.
In the US, you can get a fixed rate mortgage, where the interest rate remains the same over the life of the mortgage, but there are also adjustable rate mortgages where the interest is fixed for a period of time, after which it changes. Since I've never had a mortgage myself, I don't know how "negotiable" that adjusted rate is, but it sounds similar to how you describe Canadian mortgages.
____________________________
Banh
#4 Mar 26 2012 at 8:06 AM Rating: Good
******
43,139 posts
Owning means you can do pretty much whatever you want to it.
____________________________
George Carlin wrote:
I think it’s the duty of the comedian to find out where the line is drawn and cross it deliberately.
#5 Mar 26 2012 at 9:06 AM Rating: Good
Soulless Internet Tiger
******
34,669 posts
lolgaxe wrote:
Owning means you can do pretty much whatever you want to it.
Sure, so long as it fits into the local ordinances. You know, like having to have 20% brick, or no driveway lights, or some other stupid thing.
____________________________
Donate. One day it could be your family.
Need a hotel at a great rate? More hotels being added weekly.

An invasion of armies can be resisted, but not an idea whose time has come. Victor Hugo

#6 Mar 26 2012 at 11:17 AM Rating: Excellent
Unforkgettable
*****
13,160 posts
Uglysasquatch wrote:
lolgaxe wrote:
Owning means you can do pretty much whatever you want to it.
Sure, so long as it fits into the local ordinances. You know, like having to have 20% brick, or no driveway lights, or some other stupid thing.
Damned "no landmines" ordinances!
____________________________
Banh
#7 Mar 26 2012 at 12:11 PM Rating: Decent
I live in the US more specifically in northwestern Ohio.
____________________________
I'm back, not to cause trouble. And anyone who knows the original Weedjedi.....please don't karma bomb me. Just saying.
I'm 20 now, more mature and less stupid. And the only reason I didn't use the original weedjedi is because I can't remember it's login details.
#8 Mar 26 2012 at 12:47 PM Rating: Excellent
******
43,139 posts
Oh, in that case buy land. It's like, what ... $10 and some wolf hides?
____________________________
George Carlin wrote:
I think it’s the duty of the comedian to find out where the line is drawn and cross it deliberately.
#9 Mar 26 2012 at 2:30 PM Rating: Excellent
lolgaxe wrote:
Oh, in that case buy land. It's like, what ... $10 and some wolf hides?


Colorful beads, actually.
____________________________
idiggory, King of Bards wrote:
I have a racist anus.
#10 Mar 26 2012 at 3:22 PM Rating: Excellent
@#%^
*****
15,781 posts
When you're looking at houses, you have to consider the fact that you and the mrs be having sex in this house for a while. Make sure you're able to picture how it'll work in the different rooms with your furniture and such.
____________________________
"I have lost my way
But I hear a tale
About a heaven in Alberta
Where they've got all hell for a basement"

#11 Mar 26 2012 at 10:46 PM Rating: Excellent
Cervixhouse-Five
******
30,635 posts
If you purchase a house, remember that you want a fixed rate mortgage, not an adjustable rate (ARM).
____________________________
Kurt Vonnegut (1922-2007) wrote:
I am eternally grateful.. for my knack of finding in great books, some of them very funny books, reason enough to feel honored to be alive, no matter what else might be going on.
#12 Mar 27 2012 at 12:09 AM Rating: Excellent
Avatar
******
27,263 posts
Sir Spoonless wrote:
Uglysasquatch wrote:
lolgaxe wrote:
Owning means you can do pretty much whatever you want to it.
Sure, so long as it fits into the local ordinances. You know, like having to have 20% brick, or no driveway lights, or some other stupid thing.
Damned "no landmines" ordinances!
Most municipalities forget to include a "no mounted turrets" ordinance. And if they do, you can get some small ones and claim they're sprinkler heads.
____________________________
Someone on another forum wrote:
Wow, you've got an awesome writing style.! I really dig the narrator's back story, humor, sarcasm, and the plethora of pop culture references. Altogether a refreshingly different RotR journal (not that I don't like the more traditional ones, mind you).

#13 Mar 27 2012 at 6:21 AM Rating: Decent
Well this has been informative and hilarious all in one go.

Kudos, OoT.
____________________________
I'm back, not to cause trouble. And anyone who knows the original Weedjedi.....please don't karma bomb me. Just saying.
I'm 20 now, more mature and less stupid. And the only reason I didn't use the original weedjedi is because I can't remember it's login details.
#14 Mar 27 2012 at 11:27 AM Rating: Excellent
I bet you think this title's about you
*****
14,189 posts
How long are you looking to stay in one place? How is your credit? How is your wife's credit?
____________________________

#15 Mar 27 2012 at 12:15 PM Rating: Excellent
Everyone's Oiran
Avatar
*****
15,894 posts
If you are buying a house in a geographic region above the Tropic of Cancer, then you want the main windows of the house to face South. No this isn't some New age or Feng Shui crap. If the windows facing south start at the floor, or close to the floor, and there's at least a small ledge some height above the windows, then the rooms will be flooded with sunlight in Winter, and the Sun will be excluded in Summer. This will add enormously to the comfort and pleasure of the house, while keeping your heating and cooling bills smaller.

I'd go full out in installing roof insulation, like that space station thin silvery stuff I'm sorry I don't know the name of. If you don't go with bricks or rammed earth, insulate the walls.

DOWN LIGHTS USE A CRAP TON OF ELECTRICITY. I don't know if LED lights are available yet, but I believe they are efficient (low running costs) look into it.

Think about everyone's most important wants/needs. Shelter for the car/s? A bath? Especially with young kids, a bath? A separate toilet somewhere from the bathroom so that guests can go? Who does the ironing, and where would they like to be when they do it? We used to have a pull-down ironing board on a cupboard door in the lounge room, so the ironer could watch TV. Lots and lots of cupboard space? Using an architect will usually add at least 15% to the value of your house, but most architects don't put in enough cupboard space. Insist the architect put in cupboard space as well as wardrobe space.

Do you want the kids to be using their computers in a main living area so you can monitor their net activity and you can help them easier with their homework? Or do you want them to have quiet private study areas in their bedrooms? having a window in front of an often used desk, especially a computer desk, can be very protective of eye-sight, as your eyes get a chance to change focal distances from the screen to out the window.

Is the houseblock in a flood plain? Do you want to raise the house off the ground in case of floods? considered a ramp as well as steps? Building on a cement base can keep houses warm, but putting a house up on stumps can keep it cool. Find out more about the insulating qualities of both options. Also, verandas and porches are surprisingly insulating. If you can afford it, wrap some as far round the house as you can.

Are you morning people or evening people? what do you do in the mornings? Put those rooms on the East. What do you do in the evenings? put those rooms on the west.

Steel frames for houses are insect proof, but the more metal around, the more electronic unfriendly your hose will be, and it might interfere with cell phone reception. Will insects/termites be an issue in your area? Is there ANY? chance of snow in your area? Might there be with all the wild weather changes recently? You'll want a very steeply pitched roof then. Otherwise, plants on roofs have been proved to drasticly reduce the heat roofs collect and radiate back out.

Are you worried about the stability of electricity supply in your area? Remember, never ever put an electric generator in-doors, if they leak, everyone will die in their sleep. Solar panels are getting cheaper, look into any government deals on installing them, or in the electric grid buying solar generated excess electricity from you. Is it a drought prone area? A water tank can be made into a garden feature, or tucked away discreetly. How pricey is a good water filter system to make it safe? Do you want to harvest your grey water from sinks and washing machines to run out onto the garden?

Deciduous trees will be cooling in Summer, and let light in in Winter. If you leave the leaves on the ground, they'll break down into more topsoil. If you plant plants indigenous to the area, you'll get birds and critters. Much better to give them plants to eat from than feeding them with a feeder, which attracts aggressive birds and critters. Spiky, dense shrubs around the perimeter will encourage a lot of wildlife and keep them safe from cats and predators.

Do you want family pets? Fence in a yard for them and the kids? If you install a basketball hoop, make sure it's on a sturdy pole that is very securely cemented into the ground.

Edited, Mar 27th 2012 2:40pm by Aripyanfar
____________________________
<3

http://www.reddit.com/r/Forum4/
#16 Mar 27 2012 at 6:56 PM Rating: Decent
Encyclopedia
******
31,369 posts
Holy cow Ari! That's a lot of info. Honestly though, I'd stick to just the stuff that can't be changed once you buy the home. So the type of foundation, location, facing of windows, etc are important. The rest can be improved/changed later. He's working on a $35k/year budget here, which couldn't buy you an outhouse where I live, but is probably just sufficient for Ohio. But he's still not going to be buying a mansion on a hill or anything.

Given housing prices right now, if you can get into a home, even if it's not the "perfect" home for the long term, it's probably a good idea. Just make sure you can afford it. Don't get an ARM unless that's the only way you can get the loan, and then only do so if the initial calculated payment is low enough that it could double and you could still manage it. Interest rates are super ridiculously low right now, so take advantage of that fact and that there are lots of good deals to be had. Pretty much anything you can afford today will be likely worth twice as much in 10 years, so you can sell that and assuming you'll be earning quite a bit more in 10 years then buy the perfect house of your dreams with the extra guest room (and toilet), patios, verandas, large yard, water recycling system, solar power, etc.
____________________________
King Nobby wrote:
More words please
#17 Mar 28 2012 at 10:48 AM Rating: Excellent
***
2,790 posts
If you build your own house I highly recommend using closed-cell spray foam insulation instead of the traditional fiberglass stuff. The spray foam is a little more expensive, but in the long run it works a lot better and will help keep heating and cooling costs down.
____________________________
Sir Xsarus wrote:
That's pretty much the best ninja edit ever.


Final Fantasy XIV: A Realm Reborn
Midgarsormr realm
Eartha Kitty 30 BRD/12 MNK
#18 Mar 30 2012 at 2:01 AM Rating: Decent
Scholar
****
5,159 posts
I'm ignoring most of this thread because I don't know anything about real estate. However, this:

WeedjediRedux wrote:
Well Zam, I started on this forum as a 14 yr-old wise ass. Who trolled and flame warred as much as possible.


caught my eye. You have 39 posts. How much flame warring could you have gotten up to? And if this is a fresh start you owe us the name of your old account
#19 Mar 30 2012 at 2:22 AM Rating: Excellent
Unforkgettable
*****
13,160 posts
Majivo wrote:
And if this is a fresh start you owe us the name of your old account
Well, based on his current account name, I'm going to take a wild stab in the dark and guess he's weedjedi. Around 900 posts from 2005 to 2009.
____________________________
Banh
#20 Mar 30 2012 at 8:34 AM Rating: Excellent
Needs More Smut
Avatar
******
20,070 posts
My husband and I bought our first house a few years back.

If you are wanting to buy a "used" house or a foreclosure, you can get a better deal than you could buying land and building one from scratch, just from where we currently are in the housing bubble cycle. You may want to start out a bit smaller for a starter house, and then plan to build one ten years down the road tailored more to your specifications.

And if you do want a pre-built house, your best bet is to get a real estate agent. An agent will be able to negotiate you the best deal, and can find houses that aren't actually listed. Our agent called us out of the blue after we'd rejected a second house and said, "I have a house for you." Turned out to be a brand new, builder foreclosed house that was originally going for 160K but for which we were able to put in an offer of 110K to successfully buy.

Edited, Apr 3rd 2012 1:30pm by catwho
____________________________
FFXI: Catwho on Bismarck. Once again a top bard on the server: Dardaubla 90 on 1/6/2014
Thayos wrote:
I can't understand anyone who skips the cutscenes of a Final Fantasy game. That's like going to Texas and not getting barbecue.

FFXIV: Katarh Mest on Lamia - Member of The Swarm and the League of Extraordinary Crafters
#21 Mar 30 2012 at 12:59 PM Rating: Good
Internet Footsie Lawyer
*****
12,846 posts
Sir Spoonless wrote:
Majivo wrote:
And if this is a fresh start you owe us the name of your old account
Well, based on his current account name, I'm going to take a wild stab in the dark and guess he's weedjedi. Around 900 posts from 2005 to 2009.


The original, I think was banned.

If you have a home built, you know everything is brand new. If you buy an older home, some older homes are built better than newer ones. Either way, pay for an inspection if you buy an older home.
#22 Apr 01 2012 at 1:18 PM Rating: Excellent
Everyone's Oiran
Avatar
*****
15,894 posts
^ An inspection by an engineer. A house can look lovely, but unseen the roof, walls or foundation can be crumbling to bits inside, and only an engineer who will crawl through the whole thing, and knows what tell-tales to look for, will catch it. Or something like faulty electrical wiring or plumbing. Unseen problems with an existing house can cost $20,000 or more to fix it. It is well worth paying an engineer to inspect any house you are seriously considering buying.
____________________________
<3

http://www.reddit.com/r/Forum4/
#23 Apr 01 2012 at 1:42 PM Rating: Excellent
Needs More Smut
Avatar
******
20,070 posts
Aripyanfar wrote:
^ An inspection by an engineer. A house can look lovely, but unseen the roof, walls or foundation can be crumbling to bits inside, and only an engineer who will crawl through the whole thing, and knows what tell-tales to look for, will catch it. Or something like faulty electrical wiring or plumbing. Unseen problems with an existing house can cost $20,000 or more to fix it. It is well worth paying an engineer to inspect any house you are seriously considering buying.


And if you end up buying the house even knowing all its blemishes, you can sometimes negotiate to have the sellers pay for the inspection or in cases of egregious issues, have them pay for the repair. Our seller (the bank) had to pay to fix some electrical issues because the house was considered unfit to sell as-was.
____________________________
FFXI: Catwho on Bismarck. Once again a top bard on the server: Dardaubla 90 on 1/6/2014
Thayos wrote:
I can't understand anyone who skips the cutscenes of a Final Fantasy game. That's like going to Texas and not getting barbecue.

FFXIV: Katarh Mest on Lamia - Member of The Swarm and the League of Extraordinary Crafters
#24 Apr 01 2012 at 6:47 PM Rating: Decent
Scholar
****
5,159 posts
Sir Spoonless wrote:
Majivo wrote:
And if this is a fresh start you owe us the name of your old account
Well, based on his current account name, I'm going to take a wild stab in the dark and guess he's weedjedi. Around 900 posts from 2005 to 2009.

Huh. I guess this is one of the rare occasions where it actually pays to read somebody's name.
#25 Apr 02 2012 at 5:57 AM Rating: Good
Majivo wrote:
Sir Spoonless wrote:
Majivo wrote:
And if this is a fresh start you owe us the name of your old account
Well, based on his current account name, I'm going to take a wild stab in the dark and guess he's weedjedi. Around 900 posts from 2005 to 2009.

Huh. I guess this is one of the rare occasions where it actually pays to read somebody's name.



GrowlingBunny wrote:
Remembering names is important mmmkay??!


Closest thing I could find to reading names...
____________________________
I'm back, not to cause trouble. And anyone who knows the original Weedjedi.....please don't karma bomb me. Just saying.
I'm 20 now, more mature and less stupid. And the only reason I didn't use the original weedjedi is because I can't remember it's login details.
#26 Apr 05 2012 at 2:09 AM Rating: Good
****
9,258 posts
Holy sh*t, you still exist.

I have no applicable advice regarding your house purchasing situation.

/shrugs, wanders off
____________________________
Master Meleagant Driftwood of Stromm, Warrior of the 69th level(EQ)
Rhyys, Human Warrior of 67th level(WoW)

The World Is Not A Cold Dead Place.
Alan Watts wrote:
I am omnipotent insofar as I am the Universe, but I am not an omnipotent in the role of Alan Watts, only cunning


Eske wrote:
I've always read Driftwood as the straight man in varus' double act. It helps if you read all of his posts in the voice of Droopy Dog.
#27 Apr 05 2012 at 6:34 AM Rating: Decent
Driftwood wrote:
Holy sh*t, you still exist.

I have no applicable advice regarding your house purchasing situation.

/shrugs, wanders off



I think I'm more surprised that you remember me, than you are that I still exist...
____________________________
I'm back, not to cause trouble. And anyone who knows the original Weedjedi.....please don't karma bomb me. Just saying.
I'm 20 now, more mature and less stupid. And the only reason I didn't use the original weedjedi is because I can't remember it's login details.
#28 Apr 06 2012 at 10:24 PM Rating: Decent
Internet Footsie Lawyer
*****
12,846 posts
WeedjediRedux wrote:
Driftwood wrote:
Holy sh*t, you still exist.

I have no applicable advice regarding your house purchasing situation.

/shrugs, wanders off



I think I'm more surprised that you remember me, than you are that I still exist...

Oddly, I'm rather fond of you both. You two, LinusX and Cody were the children of the OOT Family. In some ways I think experience each of you, in some ways helped me be a parent(certainly getting a Barbie flung at my head as my 2 year old screams "Newspaper", requires patience LOL). Seeing the adult that you all grew into, is amazing.

Welcome home! Also, family pics would be nice kthx
#29 Apr 06 2012 at 10:28 PM Rating: Good
Internet Footsie Lawyer
*****
12,846 posts
these are mine =)
#30 Apr 07 2012 at 1:31 PM Rating: Good
****
9,258 posts
WeedjediRedux wrote:
Driftwood wrote:
Holy sh*t, you still exist.

I have no applicable advice regarding your house purchasing situation.

/shrugs, wanders off



I think I'm more surprised that you remember me, than you are that I still exist...


I don't usually forget people, even on the internet. You also have a memorable posting name as I think that Weed and Jedis go together quite well.


niobia wrote:
WeedjediRedux wrote:
Driftwood wrote:
Holy sh*t, you still exist.

I have no applicable advice regarding your house purchasing situation.

/shrugs, wanders off



I think I'm more surprised that you remember me, than you are that I still exist...

Oddly, I'm rather fond of you both. You two, LinusX and Cody were the children of the OOT Family. In some ways I think experience each of you, in some ways helped me be a parent(certainly getting a Barbie flung at my head as my 2 year old screams "Newspaper", requires patience LOL). Seeing the adult that you all grew into, is amazing.

Welcome home! Also, family pics would be nice kthx


In lieu of non-existant family pics, here is a picture of an alpaca.
____________________________
Master Meleagant Driftwood of Stromm, Warrior of the 69th level(EQ)
Rhyys, Human Warrior of 67th level(WoW)

The World Is Not A Cold Dead Place.
Alan Watts wrote:
I am omnipotent insofar as I am the Universe, but I am not an omnipotent in the role of Alan Watts, only cunning


Eske wrote:
I've always read Driftwood as the straight man in varus' double act. It helps if you read all of his posts in the voice of Droopy Dog.
#31 Apr 07 2012 at 5:51 PM Rating: Decent
Internet Footsie Lawyer
*****
12,846 posts
better than spiders ;) cute and fuzzy!
#32 Apr 08 2012 at 12:38 AM Rating: Excellent
Everyone's Oiran
Avatar
*****
15,894 posts
It IS an excellent alpaca. We have proof.
____________________________
<3

http://www.reddit.com/r/Forum4/
#33 Apr 09 2012 at 8:55 AM Rating: Good
**
697 posts
I am a fan of renting or leasing before you buy. For just a few hundred dollars you can have an attorney draw up a "Lease with Option to Buy" contract that sets the purchase price and terms. Do it right, and deduct(fully or partially) the payments you make in "rent" from the purchase price after a year or two of being there, all the while building equity and down payment. That is how we bought our first house down here in the keys and it was such a good arrangement.

But at least move into the general area of where you want to be, and get some seat time there. 3-6 months in a neighborhood can show you a lot of what the area is like which is important with a family. Hit the local breakfast joints, chat with the neighbors and listen to what is being said, you know... like recon. Subscribe to the local paper and listen to the local radio and television if it is available.

Neighbors make the difference between a house and a home. The best hut in the world is no good if you have sucky neighbors. Even worse if you find out after the fact that crack hood central is just around the corner (well, unless you and your new family are into that sorta thing).

Remember the 3 rules to real estate: location, location, location... means buying the low end hut surrounded by higher end units or a nicer neighborhood will always pay off in the end.

And lastly, caveat emptor. Being aware of what it is that you are buying by a close inspection or paying for a professional inspection is all money and time well spent.

Good luck to you and yours.
____________________________
Shadechaos of Seraph Bismarck
R.I.P. Cindy 2.26.56 - 4.18.13
~She made a difference~
#34 Apr 09 2012 at 5:48 PM Rating: Decent
Encyclopedia
******
31,369 posts
RaiseIII wrote:
And lastly, caveat emptor. Being aware of what it is that you are buying by a close inspection or paying for a professional inspection is all money and time well spent.


Oh! From recent experience my sister and her husband are currently going through (currently meaning "since last fall"): If the house has a solid foundation, spend the $300 to have a plumber check all the pipes with the camera dohicky. Especially if the house is even remotely old. I suppose the good news is that now they know why the soil around their house has always been so moist. She'll have to adjust her garden watering after this though.
____________________________
King Nobby wrote:
More words please
#35 Apr 12 2012 at 12:49 AM Rating: Good
Cervixhouse-Five
******
30,635 posts
RaiseIII wrote:
I am a fan of renting or leasing before you buy. For just a few hundred dollars you can have an attorney draw up a "Lease with Option to Buy" contract that sets the purchase price and terms. Do it right, and deduct(fully or partially) the payments you make in "rent" from the purchase price after a year or two of being there, all the while building equity and down payment. That is how we bought our first house down here in the keys and it was such a good arrangement.


We just sold our house last month. We had some people who were interested in doing a lease-purchase. Basically, rent with an option to buy at the end of six months.

We would never have agreed to do this and deduct the rental payments from the purchase price. Granted, you're talking about a few years, and we were looking at six months, but had we done that, we probably would've owed a few thousand at closing, and it would not have been beneficial to us at all.

Thankfully, we ended up with someone who wanted to buy the house outright before we finalized anything with the lease-purchase people and only had to pay about $550 at closing.
____________________________
Kurt Vonnegut (1922-2007) wrote:
I am eternally grateful.. for my knack of finding in great books, some of them very funny books, reason enough to feel honored to be alive, no matter what else might be going on.
#36 Apr 12 2012 at 4:17 PM Rating: Decent
Encyclopedia
******
31,369 posts
Belkira wrote:
RaiseIII wrote:
I am a fan of renting or leasing before you buy. For just a few hundred dollars you can have an attorney draw up a "Lease with Option to Buy" contract that sets the purchase price and terms. Do it right, and deduct(fully or partially) the payments you make in "rent" from the purchase price after a year or two of being there, all the while building equity and down payment. That is how we bought our first house down here in the keys and it was such a good arrangement.


We just sold our house last month. We had some people who were interested in doing a lease-purchase. Basically, rent with an option to buy at the end of six months.

We would never have agreed to do this and deduct the rental payments from the purchase price. Granted, you're talking about a few years, and we were looking at six months, but had we done that, we probably would've owed a few thousand at closing, and it would not have been beneficial to us at all.

Thankfully, we ended up with someone who wanted to buy the house outright before we finalized anything with the lease-purchase people and only had to pay about $550 at closing.


Yeah. Unless I'm missing something about the deal, it seems like it's beneficial to the buyer, but not at all to the seller. I can't see why anyone would do that unless it's the only way they can get someone to buy the property. The owner is taking on all the risks and costs of renting to someone, but instead of getting the money from that rent as gain for himself, he's using it to reduce his future profit on the sale of the house to the renter. Why do this?
____________________________
King Nobby wrote:
More words please
#37 Apr 12 2012 at 5:31 PM Rating: Good
Avatar
*****
11,869 posts
gbaji wrote:
Belkira wrote:
RaiseIII wrote:
I am a fan of renting or leasing before you buy. For just a few hundred dollars you can have an attorney draw up a "Lease with Option to Buy" contract that sets the purchase price and terms. Do it right, and deduct(fully or partially) the payments you make in "rent" from the purchase price after a year or two of being there, all the while building equity and down payment. That is how we bought our first house down here in the keys and it was such a good arrangement.


We just sold our house last month. We had some people who were interested in doing a lease-purchase. Basically, rent with an option to buy at the end of six months.

We would never have agreed to do this and deduct the rental payments from the purchase price. Granted, you're talking about a few years, and we were looking at six months, but had we done that, we probably would've owed a few thousand at closing, and it would not have been beneficial to us at all.

Thankfully, we ended up with someone who wanted to buy the house outright before we finalized anything with the lease-purchase people and only had to pay about $550 at closing.


Yeah. Unless I'm missing something about the deal, it seems like it's beneficial to the buyer, but not at all to the seller. I can't see why anyone would do that unless it's the only way they can get someone to buy the property. The owner is taking on all the risks and costs of renting to someone, but instead of getting the money from that rent as gain for himself, he's using it to reduce his future profit on the sale of the house to the renter. Why do this?


Well sorta. It essentially means you are charging more for the house than it's actually worth, so you get to sell it for more than you otherwise should for the aggravation of this sort of contract.

The seller should just evaluate it as a couple separate things, one a offer to rent for X time for Y amount, A tentative offer to buy the property at Z-Y dollars, and sale of the option to sell the property for X period of time, where X is the rental term, Y is the rental valuation and Z is the listed sale price of the property, If any of these components is not where the seller would like it to be, they should reject the deal.

Edited, Apr 12th 2012 7:35pm by Timelordwho
____________________________
"Observe what happens when you force a man to change"
Just as Planned.
#38 Apr 12 2012 at 10:22 PM Rating: Good
The Duck Whisperer
*****
15,512 posts
Avoid HOAs. Oh god, avoid HOAs.
____________________________
Iamadam the Prophet wrote:

You know that feeling you get when you have a little bit of hope, only to have it ripped away? Sweetums feeds on that.
Reply To Thread

Colors Smileys Quote OriginalQuote Checked Help

 

Recent Visitors: 71 All times are in CDT
Aethien, gbaji, Iamadam, Xsarus, Anonymous Guests (67)