Price for houses

[Guest Plastic]

I've heard a couple of times in Houston people giving away houses for a dollar. The latest one I heard was in a neighborhood on FM 529. DOn't know how or why but the houses were being given away only for $1.

Then there's rent. I want to rent a house but I'm thinking it'd be cheaper if I just buy. If I just buy a house and quite the loan after 1 or 2 years that would be cheaper wouldn't it? That's assuming Tittle or Escrow companies allow it.

[travelguy_73]

To your second question, you are asking a rent vs. buy question, right? It's pretty easy to calculate, and there are a number of websites that can help you.

A few points:

--I believe most mortgages allow for early payoff. If you get one that doesn't, run the other way.

--If your mortage payment + insurance + taxes - tax benefit (being able to itemize deductions) <= rent + renter's insurance, you are probably a good candidate for buying instead of renting.

Downside of buying and selling within a few years is that the market here doesn't appreciate like in other parts of the country, so you could find yourself selling your property in 3 years for not a lot more than what you paid for it (+ improvements). You're stuck with the real estate commission as well. Of course you have the headache of maintenance as well...no property manager to call! Of course you can always just rent the property out, but that's a whole different topic!

I had my last house for about 3 years before selling. I made decent money on it, but it was because I bought the house for a great deal and was smart about what money I put into it (used my own labor).

[Guest Plastic]

So if I sell the houseI'm still considered the owner? If I move out doesn't the house go back to the realtor or the escrow company?

And renters insurance, we have to pay renters insurance?

Edited March 13, 2006 by Plastic

[travelguy_73]

So if I sell the houseI'm still considered the owner? If I move out doesn't the house go back to the realtor or the escrow company?

And renters insurance, we have to pay renters insurance?

If you buy a house you own it until you sell it, pay off your mortgage company, and have the title transferred to the new owner. You do not/cannot give it back after the title is in your name. Of course you can stop paying the mortgage and the mortgage company can/will foreclose and take the property back, but you will ruin your credit!

It sounds as if you don't have a good fundamental understanding of the home purchase process. I would recommend that you look online for resources--there is a ton out there that describe the process so we don't need to recreate the wheel here.

As for renter's insurance, it protects your personal contents when you rent a house/apartment/condo, etc. It only covers your contents, not the property you live at. It usually costs substantially less than property insurance, which homeowners are required to have when they own a property. Really, everyone should have insurance one way or the other. To not do so it taking a big risk.

[wendyps]

you get what you pay for. If someone is selling a house for a dollar, it is because the property is condemed because it is next door to a landfill, or directly on a runway, or the house is for sale and not the property and the developer doesn't want to pay the cost of teardown.

as for buying versus renting. The short answer is yes, buying is generally cheaper/the same as renting (including insurance and taxes) per month, however, if you don't intend to stay for xx years, take a look at the online calculators mentioned above. There are lots of costs to buying/owning/selling a home that have nothing to do with the mortgage.

[Guest Plastic]

Wait were required to have house insurance? When a fire ,hurricane,or flod happens it's a good thing to have, but millions of people pay for it and never use it,like car insurance.

Besides if anything were to happen to my hoe i'd just move. I wouldn't spend the money to repai it.

[TJones]

Wait were required to have house insurance? When a fire ,hurricane,or flod happens it's a good thing to have, but millions of people pay for it and never use it,like car insurance.

Besides if anything were to happen to my hoe i'd just move. I wouldn't spend the money to repai it.

Plastic, I agree with you completely, I don't think you should buy homeowner's insurance. You should invest that money into a new KEYBOARD, so that you will be able to spell ALL the words you use here correctly.

Edited March 14, 2006 by TJones

[TheNiche]

if anything were to happen to my hoe i'd just move.

If something did happen, I'd hope that you'd at least have the common courtesy to chop up her body into tiny bits and dump it somewhere near the Port...think of it as an 'homage' to her exceptional hoe-ness in regards to the care and treatment of seamen. Then you could move, and I'd hope you'd have the sense to go to Mexico.

Wait a sec...'seamen' is spelled with an 'a', right?

[Guest Plastic]

Well since were talking hoes, I wouldn't move I'd get another one.

[TJones]

If something did happen, I'd hope that you'd at least have the common courtesy to chop up her body into tiny bits and dump it somewhere near the Port...think of it as an 'homage' to her exceptional hoe-ness in regards to the care and treatment of seamen. Then you could move, and I'd hope you'd have the sense to go to Mexico.

Wait a sec...'seamen' is spelled with an 'a', right?

All depends on what part of Houston you are in.

[TAK]

How old are you, Plastic?

[HoustonianInColorado]

How old are you, Plastic?

I am wondering this as well.

Another point to remember about getting a house foreclosed on . . .

Not only do you ruin your credit, but if the foreclosure is not part of a bankruptcy, the IRS considers the value of your mortgage as forgiven debt, and taxes it as income. I disagree, since if it was truly forgiven, you would be able to keep the house. But thems the rules!