Me and my husband want to buy a house. A fixer upper has crossed our path here in Gainesville FL. It's 1600 sqf and in a good neighborhood. We are young (19 and 21) and skilled and can do all the labor ourselves. We plan to sell the house in six or seven years and we want it to sell quickly! lately the market has sucked so much, I don't know if it's a good idea to pour an extra 10 grand into a house when people are selling at the prices they bought them for. Let me know what you think!
2006-12-22 06:29:27 · 15 answers · asked by Michelle T 1 in Business & Finance ➔ Renting & Real Estate
if you can get the house for a good price(20 to 30 % off appraisal) and you need a place to live, than you are making a safe investment. Interest rates have not gone up too much............yet.
2006-12-22 06:34:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First before you even think about buying the house have it check out, completely. The last thing you need is to open up a wall and find out some really bad is wrong with the house.
If the house is solid, and you're talking, new windows, doors, bathroom(s), kitchen, etc. then take out a pen and paper a figure out what the loan will cost over six years, (I'd use a fixed mortgage 15 years) that way you can see if you'd be money ahead by buy and fixing the house up and selling it verses renting. (current rent X 12 X 6 for $500 it's 36,000)
If the dollars are right, then ask yourself this, what are the odds I'd have to leave before year 6? Anything less then 90% rent.
OK the Dollars are right, and you're locked into a job for the next 6 years then make a low offer. At least $20K (or more) under what they're asking. They might take it. It easier to go up on an offer then go down.
Hoped it helped.
EDIT
When you're doing the numbers, figure out what you could sell the house for today, (after you fix it up) not six years from now. After all you don't really know what the market will be six years from now, only what it is now.
2006-12-22 14:56:07 · answer #2 · answered by Richard 7 · 1⤊ 0⤋
The real estate and mortgage industry follow a pattern. When rates go up home prices go down. When prices go down rates go up. You can NEVER predict what will happen 6 years from now. Who knows Bush may start a world war in the next 6 months....... Think about it if you think it is a sound investment than pull the trigger. If you think it has a high probability of losing you money in the long run than don't do it.
2006-12-22 16:48:26 · answer #3 · answered by Michel D 2 · 0⤊ 0⤋
Do some research and see if any other houses where recently sold in the neighborhood and, how much they sold for. If they sold for at least 10grand more than what your paying for the house before you fix it up then that's good. also pay attention to the school system, parks,shopping areas access to major highways that sort of thing. If there are those types of things near by and, there is still vacant land in the area that's also good because alot of things can be built or, be changed in a seven year period.
2006-12-22 14:40:45 · answer #4 · answered by J H 1 · 0⤊ 0⤋
There's never a "right" time to buy a house. If you have found something you can afford in a good neighborhood and you are willing and able to improve it, that sounds like a good idea. Go for it. Just don't get in over your head in terms of financing since in many markets (particularly FL) housing prices are dropping now.
2006-12-22 14:32:40 · answer #5 · answered by Gene 3 · 0⤊ 0⤋
Save yourself a headache! Learn from the real guys making money and from their own experience... move on to the next deal where luck is on your side again where you find a home with no repairs. They are out there you just have to be patient and do your due diligence before signing any paperwork, that's where everyone gets into trouble, they jump in without doing the research.
The market is slow... wait for the rebound and you should be safe!
2006-12-22 15:19:42 · answer #6 · answered by realestatemichigan 3 · 0⤊ 0⤋
Sure, the market is bad if you are a seller. If you buy now and fix it up the market will be entirely different in 5-7 years. Now is the time with great mortgage rates. Do it!
Good Luck
2006-12-22 14:54:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋
well things can really change in 6-7 years... right now the market is bad for the sellers, but the buyers have the upper hand. so, you could get a super deal on the house. in 6-7 years the market will probably change drastically. plus, it would be better than throwing your money away renting.
go for it.
2006-12-22 14:31:19 · answer #8 · answered by christy 6 · 1⤊ 0⤋
When the market sucks is when you WANT to buy. You are not selling it for another 6-7 years. Do it, fix it, live it, sell it!
2006-12-22 14:31:55 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Once we get George Bush out of office and, hopefully, get someone in there who has a brain of a quality better than a marshmallow, and who knows how to not run his own country into the ground, the market should turn around and maybe we all can have a better life!
2006-12-22 14:39:42 · answer #10 · answered by Venice Girl 6 · 0⤊ 1⤋