homes vs renting ?

Discussion in 'Off-Topic' started by Mathematics!, Jul 24, 2013.

  1. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    I am wondering on these situations

    1) if one bought a home (with a 25 to 30 year mortgages) and found out that he wanted to move and not keep the house as a second places. In the case that he only lived there for 6months to 2 years. Would it be more of a waste of money to buy a home in this sort time as opposed to rent an apartment.

    Basically what I am getting at is short term home buying is it more of a hassle and cost more money then just going with an apartment rental.
    My main concern is more with being stuck in trying to sell the house and not being able to immediately move. Is it possible to just give up the house to the bank/or real-state person for selling and move into the next house or apartment... or is there something that gives you a bad reputation or won't allow you to move into the next places with out selling the first places.

    The benefits to owning a home or paying a mortgage to own a home is that you will eventually own it if you want. This is a big benefit over a apartment in terms of owning it. My only thing is getting out of / moving to a different location is it harder if you own a home then an apartment or can you always move quickly from home to home as you can from an apartment to apartment. Other then the paper work.

    What I am think is if a person can't make up his mind on where he want to live and has stayed in the same place for a long time. I would think it would be better for him to live in a home he pays a mortgage on so in the case he never moves he eventually owns the home. And in the case he eventually can make a decision / want to move he can still move in a reasonable amount of time. Correct ?


    your thoughts on how long it takes a home owner to move in and out of home/apartments in a reasonable amount of time.
     
  2. Metalmann

    Active Member

    Dec 8, 2012
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    I own my own farm/shops, and they are paid in full.

    But, as long as you have to pay a tax on something....do you really own it?


    Nah!
     
  3. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    When the government talks about your land or any land ,they use an expression

    that is called the "Land Use Plan" .The government only intents for you to use the

    land. England seems to use that system, is that correct.
     
  4. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    your more secure in your own home where as you can get thrown out of an apartment more easier. Plus the fact that you you own the home in the senses
    that you only have to pay tax's not a monthly bill once its paid for in full.
    Lets not be crazy with this.

    So what I want to know is it difficult in move out of a house or can you just move and give it to the realtors/banks to deal with or must you sell it before moving out of it into another home. For example will you still have to pay for both in the process of moving from one to the other if you don't sell it first before moving. Or can you just tell the realtors its yours now I am moving and just pay for the new place you moved to?
    I am Talking about in the case where you still don't own the house completely yet i.e your still paying a mortgage
    And you want to move out
     
    Last edited: Jul 24, 2013
  5. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    Homeowners are being required to pay more taxes and fee's every year. User

    fee's on every thing. Read your mail and learn the meaning of percent, percentages

    millage, fire and water districts. Homeowner assoc fee's ,special assessments...you

    don't own a home. You don't know the language. (pool girl) (dog walker) (golf cart)

    (club house fee's) (caddy)
     
    Last edited: Jul 25, 2013
  6. WBahn

    Moderator

    Mar 31, 2012
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    If you throw the bank the keys (the Realtor has nothing to do with it after closing) then you will have a foreclosure on your credit and the bank can come after you for any delinquency, which occurs when they sell the house for less than is still owed on it plus all of their costs associated with taking it back and selling it. And keep in mind that the bank may not want to take it back, which means that if you don't keep making the payments that you go into default on the loan and the entire loan generally becomes due and payable immediately and you continue to be responsible for the insurance, taxes, HOA dues, etc., etc. It might take the bank several months or even more than a year to actually foreclose and by that time you have thousands of dollars in late fees and penalties stacked up on top of the outstanding balance of the loan. Then you have to remember that the bank is motivated to sell the property quickly which means they will accept well under market value if that is what it takes, which will result in a larger delinquency that you are are responsible for.

    The decision to purchase a home should NOT be made lightly. There are significant advantages, but there are significant responsibilities and risks, as well.

    Depending on how you do it, when you purchase a home you will have costs associated with it that will "typically" (whatever that means) be in the $2000 to $5000 range. So you start out in the hole, especially if you roll the closing costs into the mortgage, which can include several more thousands of dollars for prepaid items such as interest, insurance, and taxes.

    Unless you put down enough of a down payment (generally 20% of the purchase price), you will also have to pay for mortgage insurance, which is about the most expensive insurance you will ever have.

    You will also have maintenance expenses that you will have to be in a position to deal with, in some cases immediately. If you are renting and the hot water heater fails, you call the landlord and expect them to replace it the same day or possibly the next day. If you own the home, you need to shell out the $500 or so and need to do it on the same time frame. You also need to be in a position to replace the roof when it wears out, or risk serious damage to the house if you don't and you end up with roof leaks.

    Then, as you pointed out, the property is an anchor that can be hard to weigh if you need to move on short notice. Even in a good market, it is going to take you about a month to close the sale of a house AFTER it goes under contract. You do NOT want to enter into a contract on a new home or enter into a lease on a rental before you CLOSE the sale on the existing home unless you KNOW you can handle BOTH payments for an extended period of time (unless you have adequate contingency clauses in place).
     
  7. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    Define- middle class homeowner...2 -government employment incomes..with

    federal union secure jobs.
     
  8. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    Ok if this is true then how fast can a house be sold or what is the average time it takes a homeowner to sell his houses if he wants to ? (There must be an average or a range to expect to wait before one can sell and move)

    Question 2
    Once you own a home i.e payed all the mortgage in full then other then tax , utilities , and maintance fees (if applicable ) is there any other things for the house you have to pay for.

    Is insurance required like car insurances ? That would be the only thing I could think of that you need to also pay.

    Anything else in terms of home.
     
  9. JoeJester

    AAC Fanatic!

    Apr 26, 2005
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    Why don't you buy a good pickup and a travel trailer. Then if you decide to move in six months .... take your home with you.

    Then home is not only where you hang your hat, but it's where you decide to park your home.
     
  10. Blackbull

    Well-Known Member

    Jul 26, 2008
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    Loosewire, the government nationalised the minerals in the land in 1942, this was to stop landowners claiming a royalty on coal mined under their land. The coal industry was taken over by the government in 1946. We may own the land but the government own the soil. Similar to the people who spend thousands of pounds on personal car registration plates, they are actually owned by the Secretary of State and can be seized at any time.
     
  11. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    Wait I thought god created the world so I think he owns the government as well.

    But all I want to know right now is how fast or typical how long does it take to sell a house. Basically if a person was unsure if he wanted to stay in the area how long could he be stuck if he want to move out of a house.
    Obviously he could just move when ever but this would effect his ability to move into another place/buy another place looking at bad credit or his passed ditching a houses
     
  12. WBahn

    Moderator

    Mar 31, 2012
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    If you have a home that is worth $200k and are willing to sell it for $120k, then you can find companies that will write you a check and close within a few days. But that is the kind of discount they are looking for because they are going to want to get a crew in there and sink about $40k into it and then turn around and sell it for about 20% below market to move it quickly and then get on to the next house. But if you want to get market price, you will have to compete for buyers with everyone else that is trying to sell a house. The "average" varies all over the place. Right now, in the area that we want to move to, houses are typically under contract within two days of when they are listed. A year ago those same houses, selling for much less, would have taken months to get a buyer. A year from now, who knows? Just twenty miles away, the market is very different.

    And don't forget that even if you get the home under contract the same day that you list it, you are still typically looking at about a month to go through all the steps needed to close.

    You may have an HOA that you have to pay dues and fees to. For where I currently live, I have to pay the HOA a little over $200/yr for (mostly) road maintenance and $150/yr for trash service. Some of the homes we looked at -- albeit briefly -- has HOA dues in excess of $300/mo. But those covered lots of things, too.

    Yes and no. You are required to carry liability insurance on your car in order to operate it on a public road in order to protect others that you might harm. You are NOT required to carry collision or comprehensive insurance because those only protect YOUR interest and that is your decision to make. Now, if you have a loan on the car, then the terms of the load usually require you to carry collision and comprehensive coverage because now that coverage is protecting the lender's interest. I'm not aware of any government (state or local) that requires you to carry any kind of liability insurance on real estate that you own ( HOA might, but if they do it is almost always bought by the HOA and included in the dues). So homeowners insurance is similar to collision/comprehensive on a car -- the lender almost always requires you to carry homeowners insurance in order to protect their interest. Once the mortgage is paid off, you can elect to drop the coverage. It would be stupid to do so, in almost all cases, but it is your choice.
     
  13. Blackbull

    Well-Known Member

    Jul 26, 2008
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    Don't know never sold one. The house opposite mine took 19 months to sell; the market is depressed. Seems the people who have the money are buying the houses at nock down prices to rent out to people who can't afford the huge deposit required to buy one of their own.
     
  14. WBahn

    Moderator

    Mar 31, 2012
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    How long does it take to sell your car? If you want $5000 over Blue Book, it's gonna take a while. If you want $5000 under Blue Book, it's not gonna take very long.

    If you are trying to sell a house in Detroit, you need to give it away. You can find fairly nice houses for sale for under $10k and people won't buy them because the risk of owning property in Detroit is too high right now.
     
  15. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    well I talk to a realtor and he basically said he could give a round about approximation provided the location some are quick a fee months others take a bit longer so there is nothing guaranteed though looking at past statistics there should be an average based on location , age , ...etc.
    But for this one would have to just call up a realtor/estate person that is familiar with that location/house and just go with what he or other realtor/estate people say for this /location/house.


    One other thing is how is the paper work for buying a house is it understandable or totally unreadable from a layman point of view.
    Basically don't want to sign my life away
     
  16. loosewire

    AAC Fanatic!

    Apr 25, 2008
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    In the U.S. most soil and air rights do not go with the purchase of home.

    A third party already owns them. Most people don't read their title.
     
    Last edited: Jul 25, 2013
  17. WBahn

    Moderator

    Mar 31, 2012
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    The first actual house I bought (the first home I bought was a townhome) we did that as FSBO (For Sale By Owner) with no agents and no lawyers at all. Everything went very smoothly. But that is because both myself and the seller were interested in a smooth, equitable transaction and not trying to stick it to the other person.

    The key thing is the Sales Contract, as it sets the terms for almost everything else. Most states have a standardized contract with most of the boiler plate and common options already in place. If you have an agent, they will generally start with that and then do the tweaks for your particular case. If you don't, then that is up to you and the other party to come to agreement on.

    Most people do not read the contract and that can get them in trouble real easily. The verbage is not too arcane, but it is a legal document and the words have pretty precise legal meanings that may not be perfectly obvious to a casual reader. But few people get tripped up on the fine points of the contract. They generally run afoul of the very clearly stated terms that they didn't bother to read.
     
  18. WBahn

    Moderator

    Mar 31, 2012
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    Then don't buy a house, because you pretty much ARE signing your life away. You are entering into a binding, legal contract promising to pay someone many times your annual wage (in most cases) over the course of the next two or three decades and giving them significant legal recourses to ruin your life in many different ways if you fail to abide by the terms of the contract you signed.

    It is NOT something to do lightly. It really sounds like you are not ready to take something like this on yet.
     
    Metalmann likes this.
  19. Metalmann

    Active Member

    Dec 8, 2012
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    When it comes to business and money, no form of a God is going to help you.;)

    Bankers, and the Law, only go by what's in writing; not some imaginary dude in the sky.

    The time frame of a sell....varies from place to place, country to country, city to city, county to county, burgh to burgh, day to day, etc.

    Even in this crappy economy, the big boys are buying like crazy.
    This is when they pad their future pockets, from others misfortune.

    Since the beginning of time.
     
  20. Mathematics!

    Thread Starter Senior Member

    Jul 21, 2008
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    Ok so is there some online example of what the typical paper work for buying and selling houses. Just want to see how hard it is to understand all of the paper work if one needed to or wanted to.

    Any links to an example would be great thanks.

    I have looked at leases and these are a lot of times the general outline is standard with modifications based on features/location/leasers wants. Leases for the most part can be read in a relatively short time and pretty much understandable for the most part ( probably not all the time but my experience in look at them seems not ridiculously complicated... but a house is a totally other thing...

    I know your land is separate but you pays for air spaces other then maybe a plane company ?
     
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