Good time to buy a house??
- Thread starter Elite
- Start date
sfsuphysics
Supporting Member
Wow that is good... just wish I could find a nice piece of land away from civilization for a similar steal, then I can leave the rat race! 
jimsar
Guest
Andy, ZIP code is 94591.
The size of the previous loan reflects inflated prices going back maybe 3 years or so. My Mexican handyman rents a room in a house down the street from this one. He said the owner paid >$400,000 a few yeas ago, spent $10k upgrading the pool area and making an in-law unit. It's now in the market for $95,000, no takers, because the additions had no permits, and the pool is looked at as liability by investors. Short sale. It will be foreclosed soon, because they haven't paid mortgage in over 6 months.
Most prices here went down ~50% in the better neighborhoods.
Jim
The size of the previous loan reflects inflated prices going back maybe 3 years or so. My Mexican handyman rents a room in a house down the street from this one. He said the owner paid >$400,000 a few yeas ago, spent $10k upgrading the pool area and making an in-law unit. It's now in the market for $95,000, no takers, because the additions had no permits, and the pool is looked at as liability by investors. Short sale. It will be foreclosed soon, because they haven't paid mortgage in over 6 months.
Most prices here went down ~50% in the better neighborhoods.
Jim
Elite
Guest
I'm staying in San Jose .. Can't leave this place :bigsmile:
We found a house in 95148 area. Pretty school for my boys. The bank approved the loan today. We will lock the rate next week because it's good friday and weekend is coming up. If everything is good, we will close the deal in couple weeks or the end of the month. I'm planning to spend a month to work on the house because it needs new paint, floor and new kitchen( .. A lot of little works here and there. The last sale price was ~$700,000. We got it for $390,000. It's just a little house but that is all we can afford. I will be hella busy in couple weeks.
.. Can't leave this place :bigsmile:We found a house in 95148 area. Pretty school for my boys. The bank approved the loan today. We will lock the rate next week because it's good friday and weekend is coming up. If everything is good, we will close the deal in couple weeks or the end of the month. I'm planning to spend a month to work on the house because it needs new paint, floor and new kitchen
( .. A lot of little works here and there. The last sale price was ~$700,000. We got it for $390,000. It's just a little house but that is all we can afford. I will be hella busy in couple weeks.
Elite
Guest
Thanks Tong .. The house is about the size of your storage :Sp ..
The house is only about 1050sf. The garage is converted into two bedrooms plus a bath with permit. There is also a room with its own bathroom in the back without permit. I can rent out the rooms and my house payment is about $1200 a month (that's including the property tax and insurant). That is a lot cheaper than what I'm paying for rent right now. The best part is they have their own entries. 8)
The main house is small but it's ok. Less cleaning.. The suck part is no room for fish tank ..
.. The house is about the size of your storage :Sp ..The house is only about 1050sf. The garage is converted into two bedrooms plus a bath with permit. There is also a room with its own bathroom in the back without permit. I can rent out the rooms and my house payment is about $1200 a month (that's including the property tax and insurant). That is a lot cheaper than what I'm paying for rent right now. The best part is they have their own entries. 8)
The main house is small but it's ok. Less cleaning.. The suck part is no room for fish tank
..
jimsar
Guest
Congrats, Phong, and welcome to the Home Depot, Lowes and Harbor Freight Tools. You'll be a frequent visitor, guaranteed.
It's been a year since I've gone "tankless". so there's life after reefing. Been enjoying watching the electric meter spin backwards, don't feel the urgency yet to get back to the hobby.
jim
It's been a year since I've gone "tankless". so there's life after reefing. Been enjoying watching the electric meter spin backwards, don't feel the urgency yet to get back to the hobby.
jim
sfsuphysics
Supporting Member
Out of curiosity Jim, the property taxes on the house, is the house assessed at the price you paid for it, or some much higher value representative of the value of the house before things went kerplunk?
seminolecpa
Past President
Mike they can only make you pay property taxes to the extent of the value you paid in year one and increase it by a max of 3% if it is like anywhere else around here I have seen. That is how my neighbors with twice the house pay a third as much in property taxes as I do.
Stupid law.
Stupid law.
sfsuphysics
Supporting Member
Bryan, that's a result of proposition 13, it's a reason I get away with paying 1/10th as much in property taxes as my neighbors The difference is that your neighbors bought the house back when the sell price was similar to the average assessed price of homes, where in this case the value they ended up selling for was much less what the average assessed value of properties in that area.
Always wondered if you could transfer property to other people simply by selling for a ridiculously low amount.
The difference is that your neighbors bought the house back when the sell price was similar to the average assessed price of homes, where in this case the value they ended up selling for was much less what the average assessed value of properties in that area.Always wondered if you could transfer property to other people simply by selling for a ridiculously low amount.
Vincerama2
Supporting Member
If you pay down 20%, you don't have to pay PMI.
V
V
seminolecpa
Past President
sfsuphysics said:Bryan, that's a result of proposition 13, it's a reason I get away with paying 1/10th as much in property taxes as my neighbors
Always wondered if you could transfer property to other people simply by selling for a ridiculously low amount.
True, but it is probably also part of the reason we have such high state income taxes and sales tax. I totally understand why they do it I just don't like it because I am on the wrong side of it.
Otakuthugster
Guest
Yeah, wonderful rate. I just tried gettind a lone adjustment, and the best they can offer is 5.375%. I would also need to pay an extra ~$13,000 since we now have negative equity from the price drops.
Oh well. Best of luck to you, tho'. Let me know if you need advice on installing Pergo floors.
Oh well. Best of luck to you, tho'. Let me know if you need advice on installing Pergo floors.
itsacrispy
Guest
Wow, 4.5% is great! The best we could get was 5.5%.
Vincerama2
Supporting Member
What the! 4.5%!! Amazing!
I can get close to that, but I have to pay points. We're in the process of a refi now. The no-points rate fluctuates around 5%-5.25% with a point paid, I can drop it to about 4.75 or something. If I had a lot of spare money and could jam the loan down to a "conforming loan" then I could get 4.5 ... but really...who has that kind of spare money?!
V
Congrats Phong! Make sure to pick up the Home Depot 1-2-3 Home Improvement book, or the Black & Decker "Home Improvement" book,t hey have great pictures and provide step-by-step help on everything from repairing to installing just about everything around the home! I just lent mine out to a coworker who also just bought a house!
I can get close to that, but I have to pay points. We're in the process of a refi now. The no-points rate fluctuates around 5%-5.25% with a point paid, I can drop it to about 4.75 or something. If I had a lot of spare money and could jam the loan down to a "conforming loan" then I could get 4.5 ... but really...who has that kind of spare money?!
V
Congrats Phong! Make sure to pick up the Home Depot 1-2-3 Home Improvement book, or the Black & Decker "Home Improvement" book,t hey have great pictures and provide step-by-step help on everything from repairing to installing just about everything around the home! I just lent mine out to a coworker who also just bought a house!