Att'n Home owners! Is it worth it?

So, the fiancee calls from the bank at which she works.

Good deal on mortgages right now, apparently.

Not sure of the rate, but all the tellers and bankers were raving about it.

Monthly payments of anywhere between $800 and $1,200, depending on the size of the mortgage. I do know the $1,200 is for $205,000, which, to buy a house in this market, you'd need.

Anyway, guess the term of the mortgage . . . . ready? Forty fucking years! Yes, 40! I'll be dead. Literally, I will be dead. I can't see myself living to age 71.

Is it even worth it to buy a house? $1,200 a month until death makes no sense when I can pay $750 a month until I die. In an apartment I have no maintainence, no hassels, no taxes, no headaches, no repairs.

Please, someone tell me buying a house is worth it - and why.

 

It's worth it if you can afford it.

You build equity -- so you can get even deeper into debt if you want to.

You also don't have to share walls and ceilings with other apartment dwellers.

 

If you live in an apartment, you don't get to do never-ending projects... you don't know whatr your missing... although, please feel free to come over and help me brick a sidewalk border.

 

40 year mortgage.. you build equity slower, but you're still building equity.
You get to deduct the property taxes and mortgage interest on your income taxes.
You get to call it your home to do whatever you want with it, as opposed to the restrictions on a lease.

 

or look into townhome ownership... someone else takes care of the outside maintenance, you take care of the inside maintenance.

 

Sue, last time I took out a mortgage was with the Bank of Montreal and we had a choice of 10, 15 or 25 year amortization periods. And instead of monthly, the mortgage payments are biweekly.

So, if you can afford it, try and take an amortization period that's as short as possible.

A house is always worth it if you can afford it. Just don't make yourself house-poor.

 

It's not for everyone. Some people are renters; others are owners. You have to figure that out for yourself.

Buying a house, you're not throwing 100 percent of your monthly payments away. You keep some of it in equity.

Most houses come with home warranties now. With that, you pay $50 and the home warranty company will send somebody out to fix major problems like a leaky roof or malfunctioning central air. Make sure you've got one for the first few years. Eventually, you might decide it's not worth the cost as you become more confident in your ability to handle the occasional home owner crisis.

Slappy, I'll help you brick that sidewalk border if you'll climb up in my attic and rewire a light fixture in our sun room.

 

Sue's a fellow Canuck. We don't get those deductions up here.

 

I've thought about buying one of these before but if I'm buying something, I don't want to be sharing a wall with a neighbor.

 

IMO, I wouldn't buy a house yet. The market hasn't bottomed out yet. It has dropped a lot, for sure, but I think it's still falling, and will be for some time. But if you see a really good deal, go for it, if you want to get a house.

 

That's the mindset of an investor. If you see a house you want, in the neighborhood you want and you can afford it, why wait?

 

Also depends on your real estate market.

Bought mine in 1990 for 89K. House up the street, virtually the same size, slightly larger lot, in somewhat of a state of disrepair, sold this month for $285K. Had three offers in a week.

Tax advantages for morgage interest. If you have a reasonable payment, yes, it's worth it. Stay away from adjustables. Put as much down as you can reasonably afford. And overpay on your monthly payment as much as you can reasonably afford.

I have a 15-year at 5.5 percent, my third refinance. It's definitely worth it, if you don't go house-poor buying it.