Home Buying & Real Estate Thread

[crcballer55]

I'm working on a follow-up for some of our renter clients and need some input from homeowners outside of the industry. What was the thing that convinced you to finally buy? Why did you decide to buy in the area you did?

 

[CleanestNdaCity]

I'm working on a follow-up for some of our renter clients and need some input from homeowners outside of the industry. What was the thing that convinced you to finally buy? Why did you decide to buy in the area you did?

It was always a goal of mine to buy a house, so I didn't really need convincing. Something to call my own, a tax write off, and not throwing money away were the contributing factors. As far as the area goes, I've always lived in areas that surround the current city I'm in, and also have hung out here, and I liked the area. Schools are good (for when I decide to have children) and just overall a good area.

 

[turbospartan]

I'm working on a follow-up for some of our renter clients and need some input from homeowners outside of the industry. What was the thing that convinced you to finally buy? Why did you decide to buy in the area you did?

In Denver metro area, we had been renting a condo for 3-4 years. Owners wanted to sell, so we had to move. Had a hell of a time finding anywhere to rent, especially with our dog (pit). Found a 9-month lease for like $1750/mo and we had decided that after those 9 months, we were either buying a house or moving out of CO. Found a house after losing multiple bids, mortgage comes out to $150+ less than what we were renting for. Plus we can have any dogs we want, do whatever we want to the place, build equity, etc.

Area for us, was also dog related. Denver proper has BSL which bans pits, so we specifically looked in pit-friendly areas.

 

[B Sox]

I'm working on a follow-up for some of our renter clients and need some input from homeowners outside of the industry. What was the thing that convinced you to finally buy? Why did you decide to buy in the area you did?

I'm in the industry, but I think it's really important to make prospective buyers aware of the tax benefits of home ownership. You can put monthly payment numbers in front of renters, which may show that you could own for a number similar to what you are renting for, but being able to deduct property tax and mortgage insurance is what really makes it beneficial, on top of the ability to gain equity, which is something you'll never get by renting.

I totally get that it is incredibly difficult to buy something similar to what you're available to rent in certain markets, but in other markets where the pricing is similar, it's really a no-brainer to buy if you plan on being there long term.

 

[turbospartan]

I'm in the industry, but I think it's really important to make prospective buyers aware of the tax benefits of home ownership. You can put monthly payment numbers in front of renters, which may show that you could own for a number similar to what you are renting for, but being able to deduct property tax and mortgage insurance is what really makes it beneficial, on top of the ability to gain equity, which is something you'll never get by renting.

But now that tax deduction might not be as important, as the federal standard deduction is now raised to $12k per individual.

Depends on the house price and the interest rate, but the loan needs to be at least ~$290k and 4.5% interest rate to exceed $12k in loan interest per year.


Edit: Didn't consider property taxes. Good thing here in CO is that they are quite cheap, relative to the home values. Less than $2k a year for me.

 

[HankHill]

I'm working on a follow-up for some of our renter clients and need some input from homeowners outside of the industry. What was the thing that convinced you to finally buy? Why did you decide to buy in the area you did?

Currently looking to buy. I’ve rented for years and was fine with that. Was in a low COL area and would frequently travel for business early on. Was not trying to purchase a home and be stuck with high payments and maintenance compared to rent.

Moved to a high COL area for a new job and stayed with a sibling and his wife at their house. Didn’t want to overstay my welcome, but was not interested in renting a place that was $1000+ more than what I was used to. I can see myself at the job for a while so decided to look for a home instead.

 

[EnvyTheGreen]

I'm in the industry, but I think it's really important to make prospective buyers aware of the tax benefits of home ownership. You can put monthly payment numbers in front of renters, which may show that you could own for a number similar to what you are renting for, but being able to deduct property tax and mortgage insurance is what really makes it beneficial, on top of the ability to gain equity, which is something you'll never get by renting.

I totally get that it is incredibly difficult to buy something similar to what you're available to rent in certain markets, but in other markets where the pricing is similar, it's really a no-brainer to buy if you plan on being there long term.

How beneficial is it regarding property tax?

I’m looking to buy and the purchase price isn’t the problem, it’s the taxes. The house I’m currently looking at is nearly $1K a month in taxes, which if I know I can get a lot of that back on my tax return, I can live with that.

 

[turbospartan]

How beneficial is it regarding property tax?

I’m looking to buy and the purchase price isn’t the problem, it’s the taxes. The house I’m currently looking at is nearly $1K a month in taxes, which if I know I can get a lot of that back on my tax return, I can live with that.

You basically just need to assume that you can write off that amount from taxable income. $1k a month = $12k a year, which is the same as the "standard deduction" this year and going forward. Anything additional after that $12k, is what becomes a tax savings to you.

So you need to consider the value of deducting anything over $12k. If Property Taxes are $12k and Mortgage Interest is $10k - you'd get to write off $10k as non-taxable. $10k x (whatever tax bracket you are in) = how much you save. So if you're in the 25% bracket (to make it simple) - you'd "save" $2500 on taxes. But you still have to pay the taxes and interest up front - but you'll get a $2500 tax return (depending on how you file, etc).

 

[B Sox]

But now that tax deduction might not be as important, as the federal standard deduction is now raised to $12k per individual.

Depends on the house price and the interest rate, but the loan needs to be at least ~$290k and 4.5% interest rate to exceed $12k in loan interest per year.


Edit: Didn't consider property taxes. Good thing here in CO is that they are quite cheap, relative to the home values. Less than $2k a year for me.

Less than $2k

That's insane to me

 

[EnvyTheGreen]

You basically just need to assume that you can write off that amount from taxable income. $1k a month = $12k a year, which is the same as the "standard deduction" this year and going forward. Anything additional after that $12k, is what becomes a tax savings to you.

So you need to consider the value of deducting anything over $12k. If Property Taxes are $12k and Mortgage Interest is $10k - you'd get to write off $10k as non-taxable. $10k x (whatever tax bracket you are in) = how much you save. So if you're in the 25% bracket (to make it simple) - you'd "save" $2500 on taxes. But you still have to pay the taxes and interest up front - but you'll get a $2500 tax return (depending on how you file, etc).

Gotcha. Appreciate it.

 

[turbospartan]

Less than $2k

That's insane to me

I know... and it was only $1600/yr before they re-assessed my house last year, with a six-figure value increase. My parents have a house in MI that is maybe worth $100k, and their annual taxes are like $4500. My house is probably $400k+ and only $2k/yr.

 

[xbiker47]

Wish my taxes were that low

 

[CrownRoyalDaddy]

Damn i was hoping to get a nice tax return next ywar. Bought this year but it was only 220k and my property taxes are somewhere around 2k

 

[itshlittt]

Wish my taxes were that low

me too 9k a year for me.

 

[domvon]

I know... and it was only $1600/yr before they re-assessed my house last year, with a six-figure value increase. My parents have a house in MI that is maybe worth $100k, and their annual taxes are like $4500. My house is probably $400k+ and only $2k/yr.

Same, live in Arvada, CO (10 mins outside of Denver) and my property taxes are $1700 on $350k house. Granted, my taxes went up about $1000 last time they were assessed. Current value is close to $415-$430k so preparing for another increase.

 

[moderndarwin]

Don’t think I’ll ever have the down payment saved up to buy a house. Don’t know how people are doing it. I’m trying to save $500 a month right now and am hoping to push that to around $1-2k a month someday in the future. Going to be a solid 5 to 8 years at least before I ca truly afford the down payment on a $400k house ($80k).

 

[townbidness]

Living with my parents was a blessing. I wouldnt have been able to buy squat. Bay area is no joke.

 

[SuperQ]

Don’t think I’ll ever have the down payment saved up to buy a house. Don’t know how people are doing it. I’m trying to save $500 a month right now and am hoping to push that to around $1-2k a month someday in the future. Going to be a solid 5 to 8 years at least before I ca truly afford the down payment on a $400k house ($80k).

Are you trying to avoid PMI or just to put 20 percent down? Also, what is the market like where you're located?

 

[domvon]

Don’t think I’ll ever have the down payment saved up to buy a house. Don’t know how people are doing it. I’m trying to save $500 a month right now and am hoping to push that to around $1-2k a month someday in the future. Going to be a solid 5 to 8 years at least before I ca truly afford the down payment on a $400k house ($80k).

We have great assistance programs in Colorado for buyers to get into a home. Roughly $3-4k out of pocket to purchase with a 2nd loan that covers 3.5% down payment. 2nd loan doesn't accrue interest and only paid back when you sell or refinance. Not a bad option to get your foot in the ownership pool and get out of renting.

 

[turbospartan]

Same, live in Arvada, CO (10 mins outside of Denver) and my property taxes are $1700 on $350k house. Granted, my taxes went up about $1000 last time they were assessed. Current value is close to $415-$430k so preparing for another increase.

I live in Arvada too

 

[domvon]

I live in Arvada too

I was thinking where you could live with the pitbull and from some reason Arvada never crossed my mind. lol

 

[moderndarwin]

Are you trying to avoid PMI or just to put 20 percent down? Also, what is the market like where you're located?

Avoiding PMI would be nice but didn’t realize there are actually ways to buy without the full 20% down. Varies - currently in Bay Area so there’s nothing that is possible here since some people buy outright with cash and homes are a million+. Most likely will look to buy in Sacramento tho in around 2 years since hopefully I can work remotely and live there instead.

 

[fapmasterjr]

Just bought a home, paid it via crypto and it being so new (the tech)...it was one hell of an experience. Lots of crazy stuff with UW. It was a 800k home we put down 20%

If anyone is in this situation or will be in the future, im more than willing to share the experience.

 

[SupremeBeing5]

Don’t think I’ll ever have the down payment saved up to buy a house. Don’t know how people are doing it. I’m trying to save $500 a month right now and am hoping to push that to around $1-2k a month someday in the future. Going to be a solid 5 to 8 years at least before I ca truly afford the down payment on a $400k house ($80k).

How many jobs do you have?

How many hours you work?

Are you paying a high car note or rent that’s unessacary?

What else do you spend your money on besides basic needs?

A lot of things factor in. $500 a month is low, but it’s a start. Keep stacking.

 

[SupremeBeing5]

Just bought a home, paid it via crypto and it being so new (the tech)...it was one hell of an experience. Lots of crazy stuff with UW. It was a 800k home we put down 20%

If anyone is in this situation or will be in the future, im more than willing to share the experience.

That’s dope PaRappa Da Fappa