NicksGamingStuff
NicksGamingStuff
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April 16th, 2012 at 5:38:13 AM permalink
I decided not to buy a car (something I knew deep down, but the helpful advice from everyone on the forum helped!) I now want to use that money to buy a house or a condo. Only the Wizard has seen my small apartment. I have been browsing real estate here in LV, there is a lot for sale! A mortgage payment would be about the same or lower than my rent. Anyway, that is just an update from me. My big project this year is to buy some property. I won't ever see rates this good for the rest of my life, and I am satisfied living here in LV since I know when I buy I will have a hard time reselling.
boymimbo
boymimbo
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April 16th, 2012 at 5:39:45 AM permalink
Good for you. It's probably a wise decision and it's good to see your money go into the capital of your home.
----- You want the truth! You can't handle the truth!
JamieV
JamieV
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April 16th, 2012 at 6:35:41 AM permalink
I think that is a great decision on your part. Las Vegas definitely has some great opportunities to own property and I wish you the best of luck on your purchase. I really considered relocating to Las Vegas because I know I could own property but I couldn't get myself to do it. Maybe next year I will re-examine my options.
Bang Biscuit!
pacomartin
pacomartin
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April 16th, 2012 at 6:35:46 AM permalink
Quote: NicksGamingStuff

I won't ever see rates this good for the rest of my life, and I am satisfied living here in LV since I know when I buy I will have a hard time reselling.



While the gonzo increases in real estate value may be gone forever, that doesn't mean you can't still do some old fashioned sweat equity. If you have money and a job then you are in control. A lot of value can be found by cleaning up a yard, replacing some drywall, fixing some old cabinets in a kitchen. It's much cheaper than adding a bathroom.

If you can afford it, 15 year mortgages have dropped their interest rates spectacularly. If you can't afford a 15 year mortgage, then take a 30 year mortgage and try and add $50 extra a month to reduce principal.
ThatDonGuy
ThatDonGuy
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April 16th, 2012 at 6:36:13 AM permalink
Quote: NicksGamingStuff

A mortgage payment would be about the same or lower than my rent.


Don't forget that, if you itemize, you can deduct the interest - and if you don't itemize, the interest by itself might be enough to exceed the standard deduction (I assume Nevada still has no state income tax).
DJTeddyBear
DJTeddyBear
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April 16th, 2012 at 6:38:40 AM permalink
Quote: NicksGamingStuff

A mortgage payment would be about the same or lower than my rent.

There's more than that involved.


You have to also consider the taxes, as well as general maintenance stuff that you're currently depending on your landlord.

What about utilities? Are any included in your apartment that you'll suddenly have to pay for?

Then there's homeowner's association fees if you buy into that type of development.

Let's not forget about insurance!



Don't get me wrong. Owning is better than renting. Just be sure you're thinking about all the variables.
I invented a few casino games. Info: http://www.DaveMillerGaming.com/ ————————————————————————————————————— Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
FleaStiff
FleaStiff
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April 16th, 2012 at 7:50:21 AM permalink
Quote: DJTeddyBear


Then there's homeowner's association fees if you buy into that type of development.


Avoid HOA tyranny if at all possible.

Sweat equity? Fine if you can trade your sweat in a sensible manner. Just don't buy a tear-downer that has been trashed by vagrants and think some sweat will take care of insidious problems such as mold or legal problems such as a foreclosure of dubious validity.

Vulture funds are picking over the debris of Vegas real estate. You do not know for certain the geographic location of your dealing job, you only know the present one. Its not an industry known for stability of earnings or employers.

Good luck to you.

I think it was a wise decision to abandon the "show" of a car that spends most of its time empty.
Home Depot has books and classes. Those books and magazines are free at the local library.
Learn to apply your sweat to various items.
tsmith
tsmith
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April 16th, 2012 at 8:13:47 AM permalink
DJTeddyBear has mentioned some good things that most first-time buyers don't consider, that add up to quite a bit. Taxes can usually be escrowed as part of the mortgage, raising your monthly payment.

Also remember that your credit score has a big impact on whether you'll be able to get financing at all, just like with a car. If your score isn't that high or you've been at your job less than 2 years a bank might pass on giving you a mortgage. There are companies that cater to people with less-than-stellar credit, but be warned that your interest rate might be a little higher because of it, raising your monthly payment.

If you do decide to go house-hunting make sure you look only at properties that are within your budget. Don't let an agent show you homes you can't afford and don't let an agent talk you into anything. By the same token, if you hate a house the minute you walk into it, walk right back out and don't try to talk yourself into it because you'll always regret it.

Never forget about re-sale. Don't buy a property in a bad area just because it's cheap because you might never be able to sell it when you want to leave.

Look past the paint colors and furniture because you're not buying the furniture and paint is the cheapest thing to change. Don't be distracted by the cosmetics. Make sure to turn on the faucets and flush the toilets to check the water pressure. Check the electrical panel to make sure there are no fuses and that there are sufficient breakers with empty slots for expansion; a full panel might indicate that some circuits are overloaded. Look at the roof and ask how old it is, check the foundation for cracks.

Good luck.
Nareed
Nareed
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April 16th, 2012 at 8:19:15 AM permalink
Quote: tsmith

Check the electrical panel to make sure there are no fuses and that there are sufficient breakers with empty slots for expansion; a full panel might indicate that some circuits are overloaded.



I've been advised that on older proeprties, you may watn to have an electrician check the instalation, too.

And as a matter of course I'd make sure the water heater works.
Donald Trump is a fucking criminal
DJTeddyBear
DJTeddyBear
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April 16th, 2012 at 8:35:04 AM permalink
Quote: tsmith

If you do decide to go house-hunting make sure you look only at properties that are within your budget. Don't let an agent show you homes you can't afford and don't let an agent talk you into anything.

Similarly, if you get pre-approved for a mortgage, don't assume that you can actually afford to purchase something for the amount of the pre-approval.

When the wife and I purchased our house 13 years ago, we were pre-approved for almost $400K. We purchased a home priced at $178K. And we struggled with the finances for the first few years.


Quote: tsmith

By the same token, if you hate a house the minute you walk into it, walk right back out and don't try to talk yourself into it because you'll always regret it.

I disagree.

You've already driven out to the house. It takes only a few more minutes to look around so you can use it as a basis of comparison.

Our agent took us to a house next to rail road tracks. We told her "no" before we even got out of the car. But she said, "We're already here. Let's just take a look and see if there is anything there you DO like, so I'll have a better idea of what to look for." It made sense.
I invented a few casino games. Info: http://www.DaveMillerGaming.com/ ————————————————————————————————————— Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
thecesspit
thecesspit
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April 16th, 2012 at 8:39:36 AM permalink
If your agent doesn't say that, find a new agent.

I don't agree that renting is always financially worse than buying. If prices are dropping, if you need the freedom to move, if you'd be "house poor", if you don't want to make repairs, if you like sharing accommodation... there's very good reasons to stay renting. I didn't buy until 2 years ago, and that's only because I had decided I'd stick around in this town for a 5-10 years at least.
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
tsmith
tsmith
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April 16th, 2012 at 9:07:34 AM permalink
Agents can be sneaky. Your agent should already know what you want and what you don't want before you look at any home; she said that to you because she was hoping you'd find enough to like about it to unload it on you. I'm sure you don't remember because it was so long ago but I'll bet a dollar that it was one of her listings that she was having trouble selling because of the location. I know real estate agents and how they think and the tricks they use on their clients.

What I meant was not to talk yourself into buying a home you don't absolutely love just because you like maybe one or two things about it. Most people make up their mind about a house within the first 20 seconds of walking inside. I've bought my share of houses and I know right away if I like one or not. If I hate a house from the get-go I can't see the point of spending any more than 20 seconds in it.

There are enough online tools these days to make reasonable comparisons without wasting time driving around looking at properties you'll never want to buy.
thecesspit
thecesspit
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April 16th, 2012 at 9:28:47 AM permalink
I thought I wanted a ground floor patio, until I looked at a place with one. I thought I was happy with a split level apartment, until I looked at one. Looking at places you think you might like, even if you rapidly decide you don't is a useful exercise, -as long as you and the agent learn from it-. f the agent is being sneaky or pressuring you, dump 'em.
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
AZDuffman
AZDuffman
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April 16th, 2012 at 9:49:26 AM permalink
Quote: DJTeddyBear


Our agent took us to a house next to rail road tracks. We told her "no" before we even got out of the car. But she said, "We're already here. Let's just take a look and see if there is anything there you DO like, so I'll have a better idea of what to look for." It made sense.



That is a sign of a good agent. In LV more houses will be of similar styles, but in the northeast you get all kinds of places. Most of the general public does not know how to really describe what they like in houses. Few have been in a lot of houses and seen what is out there. When I bought my first house I bid on the second one I saw. (deal did not work.) Agent actually asked me if I was sure and "I should see what I like."

I was in the fortunate situation in that I had a job that took me into many single family homes. I bet I have been in well over 500, maybe nearly 1,000. I told her as much and said because of that I knew what I liked. Told her politely and she understood since she was in even more places than I was. When she did show a house I liked she said she knew it was outside some of my parameters but she knew I would like it.

Moral of the story is professionals know many things the average person does not. The average person will realize the professional was right but often too late. You don't have to take the advice, but listen to it.
All animals are equal, but some are more equal than others
tsmith
tsmith
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April 16th, 2012 at 9:52:31 AM permalink
"If the agent is being sneaky or pressuring you, dump 'em"

Absolutely ... if you can even tell that's what's going on. You'll never feel a thing with a really good agent who has spent years mastering the art.*

Something to keep in mind: I don't know how it works in Nevada, but in Alabama, if you look at a property with one agent, switch agents, and then decide to buy the property you saw with your original agent, s/he's the one who gets the commission on the sale, not your current agent.


*My friend of 20 years is a real estate broker, and she has told me all the tricks-of-the-trade that she has used to sway a decision in her favor when a client is on the fence about a house. She will never try to convince someone to buy something that is of unstable construction or in an unsafe area for children or completely wrong for them, but she has been known to show someone a dump and then a higher-priced house so that of course they'll go for the higher-priced one, or reduced her commission o rpaid for inspection herself so that a buyer will purchase one of her listings instead of another agent's (so that she doesn't have to share the commission).

She has tried to talk me out of two houses that I ended up buying, including the one I'm living in now, because she thought they needed too much work, but I prevailed and was happy with both decisions.
WongBo
WongBo
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April 16th, 2012 at 9:56:03 AM permalink
i prefer to think of real estate agents as "used house salesmen".
it helps me equate them with that other paragon of honesty: the used car salesman
In a bet, there is a fool and a thief. - Proverb.
teddys
teddys
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April 16th, 2012 at 12:43:23 PM permalink
I had the opportunity to look at condos in LV about three years ago, when I was looking to buy for investment at the bottom of the market. I wish I had . . . it would have been a better investment than law school :(

There are some REALLY nice properties for cheap. You should have your pickings of what you want. If you are okay living farther out (near Red Rocks), you can have a nicer place. Closer to the Strip they will be slightly less nice. Almost everything is HOA (Home Owners' Association).

A nice, quiet area with lots of nice housing stock is the Southwest Valley area (S of 515, W of I-15). I have a friend who lives there.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
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