| 20 yrs old 1st time buyer S.FL |
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teing35
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| 20 yrs old 1st time buyer S.FL |
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Iam a frist time buyer in miami,fl 20 yrs old, and plan on moveing a little
north where the prices arent so so high. I recently ran into some cash 100k
and wanted to do something smart with it like buy a place for myself. But
Ive heard alot about how the real estate market in fl will crash because
prices are so overblown. Please give some of your advice as to what i
should do. I would hate to have a property and then be upside down on
it  .
-Gabriel
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Mon Sep 12, 2005 4:47 am |
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Andrew
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Good question with all the talk about a real estate bubble lately.
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Mon Sep 12, 2005 5:32 am |
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teing35
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qe
Last edited by teing35 on Mon Sep 12, 2005 3:51 pm; edited 1 time in total |
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Mon Sep 12, 2005 3:49 pm |
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teing35
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Exactly, I wanted to see if anyone here could give me some insight. The reason iam even conidering this property is because its on the beach. I've heard over and over again "The beach is the beach, Prices wont drop".
I would to here what others have to say before I get myself in over my head at he ail end of a bubble.
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Mon Sep 12, 2005 3:50 pm |
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BlankenshipFP
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No one has a crystal ball, so it's not likely you're going to get a definitive answer.
What I'll throw in as advice is this: learn about the housing market, at least enough to know if a particular property is value priced (vs. overpriced) before you make your leap into buying.
Also - if you're talking about buying a home to live in long term, the question of the housing bubble shouldn't be as important. Obviously you don't want to own a home that is worth less than the mortgage, but if you can afford the payments and are not intending to sell it, why should it matter?
Hope this helps -
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
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Last edited by BlankenshipFP on Wed Sep 14, 2005 6:39 pm; edited 1 time in total |
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Tue Sep 13, 2005 3:37 pm |
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MattL
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Keep in mind that at 20 Years old your life can change pretty quickly. If you suddenly decide to go back to school next year you wouldn't want to have to sell the house. You wouldn't lose money on the value ofthe home, but you might not break even due to closing costs, etc.
A big part of the decision is determined by where you are (and will be in the near future) of your life, not just the investment itself. It has to be the right investment for you at this point. Only you can decide that.
Personally I would wait a couple years and invest in something more liquid until then, but that is just me.
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Tue Sep 13, 2005 8:20 pm |
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ushomeloans
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Good point about the age, are you ready to be tied down, or will you resell anytime you want. Are you looking to a home as an investment, then it is a different story. Here in california I wouldnt get into a home to flip it for equity right now with the markets cooling -thats right not bursting even in the craziest markets- because after taxes and cost of selling, all the equity will be gone. If you want to live in it for some time, year or so and then rent it, make sure the rents work before buying, and on the beach, it probably wont. Up north on the other hand... let me know if you needed a number to a local Real estate agent to work with.
Good luck.
Thanks,
Chris Kemp
US Home loans
chriskemp@us-homeloans.net
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Tue Sep 13, 2005 10:48 pm |
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teing35
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Thanks for all the tips... Iam considering buying in an area where prices
really have'nt gone up as much as other spots. I really want to get a
condo on the beach and have been doing as much research and I think
right now is a bad idea. I would be streaching myself too much and I think
down here in South Florida the condo market is the one thats most at risk.
I hope Iam right and can pick one up 2-3years down the road at bargain
compared to today's prices.
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Fri Sep 16, 2005 4:12 am |
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ushomeloans
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use some of it, and tuck the rest away in a CD/ money market
Thanks,
Chris Kemp
US Home loans
chriskemp@us-homeloans.net
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Fri Sep 16, 2005 6:07 pm |
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sololoy
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| Re: 20 yrs old 1st time buyer S.FL |
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Chris is right. Put as little down payment on a home and tuck the rest away on a CD or Money Market Investment. The housing demand will never subside, but it can burst because of overpricing. Study where you live very well and see how much it has fluctuated in the last 5 or 10 years. Today, it's not about using most of your money to pay off a property or home, it's about being smart with your money. If you use the least amount of money to invest into realestate you will still win because the way the realestate market is going, you can refinance in 5 years and lower your payments anyway. That's my point of view.
David Sanchez
Kingsburg, California
Tel: 559-647-4277 Fax: 520-843-4399
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Mon Sep 19, 2005 12:55 am |
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teing35
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Thanks for all the advice. I've been looking in an area where there mostly
townhouses and found a few I like rangeing from 215-280k should I be
looking at 10 or 20% down?
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Mon Sep 19, 2005 3:07 am |
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sololoy
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quote:
Originally posted by teing35
Thanks for all the advice. I've been looking in an area where there mostly
townhouses and found a few I like rangeing from 215-280k should I be
looking at 10 or 20% down?
If you can go 10% down that would be the best. Chris above and many other lenders will tell you to finish off your loan the quickest and not pay on your interest, but tell me when is it that you plan to pay off your mortgage anyway? Wouldn't it be better to have the lowest payment on your mortgage, get a 30year loan and keep as much money for you and invest it instead? Don't listen to me, I am not a lender, I am just a simple mechanical engineer, but from what I am experianced I think I'd rather invest my money where I can make money and not let the mortgage company make money out of my extra or higher payments. If you pay 1000 dlls a month on a 30year loan instead of 2000 dlls on a 15 year loan, who is going to make money from the extra payment? I'd rather put 1000 dlls in a 15 year investment and let it make me 500,000 thousand dollars and then pay my mortgage outright and buy another home.
Thats my theory on money from a simple mechanical engineer. Good Luck! David
David Sanchez
Kingsburg, California
Tel: 559-647-4277 Fax: 520-843-4399
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Mon Sep 19, 2005 4:30 am |
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teing35
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You guys make some really good points. I agree on putting 10% and
putting the rest to work. I just dont know what to put it in. I dont want to
be tempted to do something dumb like buy a car or something 1 yr from
now(Iam a car freak, but know it's a bad investment). I know thats once I
invest my money and see it gaining value I would'nt be tempted to buy
anything and would just keep investing. I just need the right place to start.
-Gabriel
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Mon Sep 19, 2005 4:48 am |
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ushomeloans
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Please dont say, what I would say, I can do that
"Chris above and many other lenders will tell you to finish off your loan the quickest and not pay on your interest".
I would advise that if you can make more somewhere esle, do it. To figure out what you actual pay in percentage go here,
http://www.finance.cch.com/sohoApplets/MortgageTaxes.asp
and if you can get more then 5% return, pay less on the mortgage. Problem is, that is somewhat hard to do, and requires self control. Easy if you can put it in an IRA or another money making tool.
Thanks,
Chris Kemp
US Home loans
chriskemp@us-homeloans.net
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Mon Sep 19, 2005 8:38 pm |
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