My First House

[Nona]

Hi adameepoo (and others)

I've really enjoying reading this post...very interesting, enough to get me to signup for this forum.

I just wanted to add my two cents to the question of the house values.

Having moved into a new community on the South side of Houston in 2005 the value of my house has pretty much depericated.

To make it even worst is the HCAD "market" value of my home is COMPLETELY out of sync with actual selling trends in my neighborhood.

I'm too am a single person with no person to support outside of myself and my dog. If I had 50k right now to invest in something, the last thing I would consider would be a house. That is from an investment, trying to get the highest roi, standpoint.

However, if you need a place to stay and see renting as a waste of money, getting a house would be your best solution to that problem. Builders are reducing homes and many homes are for sale. It's a complete buyers market and yours for the taking. In looking at new home pricing list I got 6 months to 1 year ago to current rates, I'm seeing price reductions from 10k - 20k.

Another thing I was thinking, and please correct me if I'm totally off base here (legally and/or finanically). You mentioned using your IRA if things get really bad financially. However, wouldn't you have to pay crazy taxes on that come years end? Would it (and I'm truely asking a question here), be better to use the IRA as the downpayment for your first house tax free and keep your already taxed 50k for that rainy day?

NONA

[adameepoo]

Hi adameepoo (and others)

I've really enjoying reading this post...very interesting, enough to get me to signup for this forum.

I just wanted to add my two cents to the question of the house values.

Having moved into a new community on the South side of Houston in 2005 the value of my house has pretty much depericated.

To make it even worst is the HCAD "market" value of my home is COMPLETELY out of sync with actual selling trends in my neighborhood.

I'm too am a single person with no person to support outside of myself and my dog. If I had 50k right now to invest in something, the last thing I would consider would be a house. That is from an investment, trying to get the highest roi, standpoint.

However, if you need a place to stay and see renting as a waste of money, getting a house would be your best solution to that problem. Builders are reducing homes and many homes are for sale. It's a complete buyers market and yours for the taking. In looking at new home pricing list I got 6 months to 1 year ago to current rates, I'm seeing price reductions from 10k - 20k.

Another thing I was thinking, and please correct me if I'm totally off base here (legally and/or finanically). You mentioned using your IRA if things get really bad financially. However, wouldn't you have to pay crazy taxes on that come years end? Would it (and I'm truely asking a question here), be better to use the IRA as the downpayment for your first house tax free and keep your already taxed 50k for that rainy day?

NONA

Thanks for the input. I'm glad others are finding this thread as useful as I have.

I think I've pretty much decided not to buy a house... not for any fincanical reasons, but because I've seen literally every single new construction in my price range in the areas that I want to live in, and cant find a single one I can see myself living in, let alone buy.

As far as the IRA goes, I would't dare touch that except in case of an emergency. I'd keep a few months living expenses in savings just in case, and 3 months is the longest it has taken me to find a job - I switch quite often. So I had used that as a maximum. Others have suggested a longer time frame, and that would probably be the safer bet.

I know you can take a penalty-free loan from an IRA "towards the cost of a first-time house purchase", so I'm assuming it counts for a mortgage payment (I'm just guessing, but somebody feel free to correct me).

Anways, I'm a little bummed about not finding anything I liked. But builders, if you're reading this, next year, please for the love of God, no more Pine wood flooring!

[sarahiki]

Hi adameepoo (and others)

I've really enjoying reading this post...very interesting, enough to get me to signup for this forum.

I just wanted to add my two cents to the question of the house values.

Having moved into a new community on the South side of Houston in 2005 the value of my house has pretty much depericated.

To make it even worst is the HCAD "market" value of my home is COMPLETELY out of sync with actual selling trends in my neighborhood.

I'm too am a single person with no person to support outside of myself and my dog. If I had 50k right now to invest in something, the last thing I would consider would be a house. That is from an investment, trying to get the highest roi, standpoint.

However, if you need a place to stay and see renting as a waste of money, getting a house would be your best solution to that problem. Builders are reducing homes and many homes are for sale. It's a complete buyers market and yours for the taking. In looking at new home pricing list I got 6 months to 1 year ago to current rates, I'm seeing price reductions from 10k - 20k.

Another thing I was thinking, and please correct me if I'm totally off base here (legally and/or finanically). You mentioned using your IRA if things get really bad financially. However, wouldn't you have to pay crazy taxes on that come years end? Would it (and I'm truely asking a question here), be better to use the IRA as the downpayment for your first house tax free and keep your already taxed 50k for that rainy day?

NONA

Nona, do you mind if I ask what general neighborhood you're in? I didn't realize there actually been depreciation in Houston. I know some of the 'burbs have been pretty flat, but that's scary that there are neighborhoods that have lost value.

Anyone else know of neighborhoods losing value?

[Porchman]

Thanks for the input. I'm glad others are finding this thread as useful as I have.

I think I've pretty much decided not to buy a house... not for any fincanical reasons, but because I've seen literally every single new construction in my price range in the areas that I want to live in, and cant find a single one I can see myself living in, let alone buy.

As far as the IRA goes, I would't dare touch that except in case of an emergency. I'd keep a few months living expenses in savings just in case, and 3 months is the longest it has taken me to find a job - I switch quite often. So I had used that as a maximum. Others have suggested a longer time frame, and that would probably be the safer bet.

I know you can take a penalty-free loan from an IRA "towards the cost of a first-time house purchase", so I'm assuming it counts for a mortgage payment (I'm just guessing, but somebody feel free to correct me).

Anways, I'm a little bummed about not finding anything I liked. But builders, if you're reading this, next year, please for the love of God, no more Pine wood flooring!

Actually, you cannot loan against an IRA. Common misconception. You can "play" with the money for 60 days. That's it.

Good choice, adameepoo, at not looking at a home as an investment. Poor for liquidity and if you "switch [jobs] quite often", then you may need some of that. Poor allocation, too. Those who believe Houston real estate is without risk are fools (FOOLS, I say!).

BTW, pine floors - not my first choice, but I really like ours.

[Nona]

I know you can take a penalty-free loan from an IRA "towards the cost of a first-time house purchase", so I'm assuming it counts for a mortgage payment (I'm just guessing, but somebody feel free to correct me).

I used my IRA (only about 2 years worth of savings) money when I got my home. The IRS doesn't care what you use it for as long as you use it in the first year (or so) you buy your house. I mean they (IRS) don't ask for reciepts or anything when filing a regular tax return. So I used mine for acutal post-purchase construction upgrades.

Nona, do you mind if I ask what general neighborhood you're in? I didn't realize there actually been depreciation in Houston. I know some of the 'burbs have been pretty flat, but that's scary that there are neighborhoods that have lost value.

Anyone else know of neighborhoods losing value?

Yea you know there is a thread that has a link that shows housing trends in Houston (and surrounding) that acutally kinda confirmed that the values in my neighborhood are dropping. My sub is CityPark (288/W. Orem)

Actually, you cannot loan against an IRA. Common misconception. You can "play" with the money for 60 days. That's it.

Porchman, what do you mean "play" with?

NONA