11 Reasons To Not Buy A House

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Submitted by HLS on August 22, 2015 - 5:09pm

Not sure if any other Realtor or Mortgage Broker wants you to read this.... I'm happy to share it:

http://www.forbes.com/sites/kellyphillip...

(Real estate has become a generational disease.
For those with a limited time frame who have only lived in CA, realize that it's not a normal market)

Submitted by Hatfield on August 23, 2015 - 8:26am.

Not a real estate professional, so I don't have a dog in this fight, but what a stupid article by a hack writer.

It's entitled "11 Reasons Why *I* Never Want To Own A House Again" yet already by number three we're at "Homes often tempt people borrow more than they can afford."

A better article would have listed upsides along with downsides. Ok, so if you don't buy, what are your alternatives? Do you get to stop paying rent if you stay in the same place for 30 years? One cannot overstate the security of living free-and clear at some point, which you can never do as a renter.

He mentions that home prices generally rise with inflation. But he fails to mention that rents do also, yet mortgage payments are fixed for the life of the loan.

Submitted by no_such_reality on August 23, 2015 - 10:02am.

She likes renting more. In a place were her rent payment is higher than her mortgage payment. With a landlord that replaced a dead oven same day. Meanwhile she's replacing cabinet pulls.

The article was written two years ago. Let's all send a follow up letter and ask how she likes the unpredictable annual rent increases. Or if she moved cause of them and hassling with deposits. I imagine she's not rent control since the oven got replaced pronto.

Submitted by bearishgurl on August 23, 2015 - 2:11pm.

IMO, this young lady (age 35-40?) is two jokers short of a full deck. First of all, she apparently still has minor (school-age?) kids living with her and her spouse and now believes that renting (while paying HIGHER rent than her former PITI? and being at the mercy of a landlord's whims) is preferable to being a homeowner. She claims she had been a homeowner for 15 years and was "tired of it" but didn't list any complaints about the home itself or neighborhood. Since she didn't mention any other homes but the one she just sold, we'll just assume she owned the home she just sold for 15 years and it was their first home.

Probable backstory: We all know that the 15 years between 1998 and 2013 (the date of the article), she and her spouse have had plenty of opportunities to "fog a mirror" in order to remove home "equity." I would bet marbles to chalk that that is exactly what they did, getting themselves into "hot water" and later accepting a "40 year mod deal" from their lender. After they paid their 2% "modded" payments for ~2 years, they probably sat down, (finally) did the math and realized that it would take them way too long to pay down the new note with all their back interest payments folded into it (which they defaulted upon while under those "exotic" terms they signed up for in the mid-aughts), lol. So they came to the conclusion that they had already removed most of their home "equity" and would try to get out by the skin of their teeth and were successful in doing so only due to the passage of time. Of course, their credit is now shot and so they can't qualify for any mortgages at present. Thus, they're now "happy" smiley-faced renters who aren't "trapped" anymore by their evil house :=)

She doesn't state that she was or is employed full time but it appears she may be a tax professional so she at least has steady work 4 months per year. However, she DID state that she herself still has student loans (plural) and you have to ask yourself why she co-signed a purchase-money note with her spouse in the first place with those outstanding student loans looming over her head (likely at 6-8% interest)! The reader also has to wonder why, now (15 years later), she still has (the same two?) outstanding student loans (plural)!

Really dumb all the way around. She isn't the first "accountant-type" in the interwebz that has made sorry a$$ personal financial decisions and she won't be the last.

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