DFWHeavy
Topic Author
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Self Gloss: We Bought A Home!

Fri Jul 22, 2011 5:29 pm

About 8 weeks ago we finally closed on the "house of our dreams". It's truly more than we could have ever asked for when we started looking at the beginning of the year.

After some unfortunate events around the time of our close and move in, things are finally starting to settle down in our suburban Dallas home. Now that we can check this accomplishment off the list, what could be next...? A Baby maybe  


On a side note. Because of the housing market, we raped the seller on the price and now our neighbors are upset that we got a deal of the century since they paid so much more for theirs.

3,027 sq ft house with a man-cave, 3 1/2 years old, for $215K. I smile every day I wake up  

Cheers
Christopher W Slovacek
 
MadameConcorde
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 5:39 pm

Quoting DFWHeavy (Thread starter):
what could be next...?

Make it a happy home, the place where you really want to be!


  
There was a better way to fly it was called Concorde
 
Ken777
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 5:58 pm

Quoting DFWHeavy (Thread starter):
Now that we can check this accomplishment off the list, what could be next...?

Congrats on the house! You did get a good deal and it should pay off very well for you in the future. Just remember that it will take a while for prices to rebound.

With your mortgage you should have an amortization sheet that shows the interest paid each month and also the principle paid each month. One of the best games going in the market is to add at least one principle payment each month while it is low. On my first house (MANY years ago) the monthly principle was about $12 a month - and my wages then were just about as low.  

We did make multiple payments. Adding $12 to the monthly payment meant we paid two months on the mortgage. It obviously went up over time, but it saves a lot of money. If you have a 30 year mortgage then one payment saves the interest on that amount for 30 years. It is also a good way to save money with the interest tax free because you are saving interest expense and not "earning interest income".
 
wilco737
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:14 pm

Hey, congratulations to your new home! Hope you enjoy it every day!

wilco737
  
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:16 pm

We are aware that prices may take a while to rebound, but is just fine because we plan on being here for quite a while. We have actually begun putting an extra couple of hundred towards to Principle each month and as bad as this sounds, we are going to pay off the house with the funds the mother-in-law leaves us after her passing.

I'd say the house will likely be paid in full within the next 3-4 years.

Thanks everyone!
Christopher W Slovacek
 
comorin
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:33 pm

Quoting DFWHeavy (Thread starter):
3,027 sq ft house with a man-cave, 3 1/2 years old, for $215K.

I think I am going to   

btw what are your Local and Real Estate taxes like?

Congrats!
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:37 pm

Because we have no state income tax, Texas taxes are relatively high. We are currently fighting our tax bill, but it's someone in the neighborhood of $5,500-$6,000 a year for a home like ours.

Different counties have varying property tax rates and then it's typically based on sq footage. A lot of people, like us, will argue that the home isn't worth what the county is assessing. We have a hearing on August 17th to try and get a reduction on ours.
Christopher W Slovacek
 
comorin
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:44 pm

You may want to keep the taxes up so that you still have good civic services and attract quality buyers.
 
desertjets
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:45 pm

Congrats on your new home.

It is insane how inexpensive housing is in TX. A good friend of mine in Houston is looking for a new house a little further south in the Lake Jackson area and she has shown me some of stuff she is looking at. The amount of house you can get for $200k is ridiculous (TBH what she showed me wasn't much of my style of home). To make things worse is that Dallas and Houston were not as impacted by the insane run up in prices during the housing bubble to begin with.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:50 pm

It is pretty amazing how much house you can buy for $200-$250K in Texas.

I watch the shows and people are looking to find a little one or two bedroom "Condo" with no yard and expensive HOA fees for $400K+. It's utterly ridiculous and I can't understand for the life of my why so many people go this route when you can be in a place like Texas where you can actually afford a real home.

Now this isn't a vouch to say everyone should move to Texas, but places like Texas where you can buy so much more for so much less.
Christopher W Slovacek
 
desertjets
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 6:57 pm

Quoting DFWHeavy (Reply 9):
I watch the shows and people are looking to find a little one or two bedroom "Condo" with no yard and expensive HOA fees for $400K+. It's utterly ridiculous and I can't understand for the life of my why so many people go this route when you can be in a place like Texas where you can actually afford a real home.

I generally think that real estate prices have been overly inflated and was only made worse by the types of lending that were happening during the real estate bubble. That said the 3000 sq foot suburban house isn't my cup of tea at this point in my life. different strokes for different folks as they say. But I wouldn't want to be paying your electric bill during a Texas summer.

one thing I do on a semi-regular basis is look up real estate listings on line. And I have to thank my friend for pointing out trulia.com, which has a far better interface than Realtor.com.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 7:01 pm

We have 2 A/c units. Our bills have ranged from $133-$249 in the middle of summer. You really only have about 3 months where it's semi high, but I'm very happy with our electric bill given the size of the house and the face that we just had something like 15 straight days over 100 degrees.
Christopher W Slovacek
 
Kiwirob
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 7:24 pm

Quoting DFWHeavy (Reply 4):
we are going to pay off the house with the funds the mother-in-law leaves us after her passing

Not sure if she's still alive or has passed on, which is it?
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 7:28 pm

Once she has passed on.
Christopher W Slovacek
 
Kiwirob
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 7:31 pm

So is she on her way or has she in good health and you have a long wait ahead (hope its the latter).
 
something
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 11:31 pm

Quoting DFWHeavy (Reply 11):
We have 2 A/c units. Our bills have ranged from $133-$249 in the middle of summer.

That should be criminal. After you said that, I looked up what energy costs in Dallas. According to this reliable looking website you can get the kilowatt/hour for as little as 4.5 cents. I pay 44 cents. To be fair, that has something to do with the exchange rate and needs to be adjusted to the average incomes/costs of living/spending power, but in any way I'm paying at least 6-7 times as much. Damn.

http://www.powertochoose.org/_content/_compare/showoffers.aspx


But congratulations on the purchase! Not sure I would have bought real estate because renting is in many cases the cheaper alternative (if you know how to invest the money that you are not tieing up with the purchase right), but if the seller was desperate and went down with the price enough that the mortgage payments are insignificantly higher than what the rent for the place would have been, you clearly made the right choice. And that at your age. Wow! What an achievement! Congratulations from my part again. Happy for you  
..sick of it. -K. Pilkington.
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Fri Jul 22, 2011 11:37 pm

Unfortunately, she isn't in very good health. We just moved her to an assisted living place near us this past weekend from California to finish out her life. She probably doesn't have more than a couple years at the rate shes been going.
Christopher W Slovacek
 
sleekjet
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RE: Self Gloss: We Bought A Home!

Sat Jul 23, 2011 9:05 pm

Where is your house? My wife and I are in far north Rockwall County.
II Cor. 4:17-18
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Sat Jul 23, 2011 9:30 pm

Hi Sleekjet,

I'm in Sachse (at the very southern edge of Collin County).
Christopher W Slovacek
 
IMissPiedmont
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RE: Self Gloss: We Bought A Home!

Sat Jul 23, 2011 9:46 pm

I was just in Texas earlier this month and found a chuck of property in Wilson county. 40 acres for $150,000. I might just leave the desert for that, it's getting too crowded with Californians here. And if I can get electric bills that cheap I'll be happy. I'd also be closer to family, a sandy beach.... oh well, congratulations on the house.
The day you stop learning is the day you should die.
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Sat Jul 23, 2011 10:21 pm

Thank you IMissPiedmont.

I think you should to Texas  
Christopher W Slovacek
 
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HAWK21M
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RE: Self Gloss: We Bought A Home!

Sun Jul 24, 2011 10:35 am

Congrats.
A Home is a home...........
I may not win often, but I damn well never lose!!! ;)
 
panam330
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 4:28 am

Quoting DFWHeavy (Reply 6):
Because we have no state income tax, Texas taxes are relatively high. We are currently fighting our tax bill, but it's someone in the neighborhood of $5,500-$6,000 a year for a home like ours.

That's not too shabby coming from my end! I live in upstate NY, in a house of nearly identical value, on .3 acres. Our taxes are $11k per year, we ARE taxed on our income, and our electricity is about twice as much per kWh as yours. Looks like it's time to move to TX. Congrats on the purchase! One of the best investments you could ever make, or so it's said (unless you bought at the height of the bubble  banghead  ).

[Edited 2011-07-24 21:30:03]
 
DFWHeavy
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 12:38 pm

Thanks Panam330,

We are pretty sure it's a good investment, but not naive enough to say the value still couldn't go down a bit. Given that we bought it for so cheap and got a fixed 4.75% interest rate, I think we'll do ok  
Christopher W Slovacek
 
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nighthawk
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 1:46 pm

Quoting Ken777 (Reply 2):

With your mortgage you should have an amortization sheet that shows the interest paid each month and also the principle paid each month. One of the best games going in the market is to add at least one principle payment each month while it is low. On my first house (MANY years ago) the monthly principle was about $12 a month - and my wages then were just about as low.  

We did make multiple payments. Adding $12 to the monthly payment meant we paid two months on the mortgage. It obviously went up over time, but it saves a lot of money. If you have a 30 year mortgage then one payment saves the interest on that amount for 30 years. It is also a good way to save money with the interest tax free because you are saving interest expense and not "earning interest income".

Not sure what "principle" payments are, if we have them we call them something different, but one piece of advice I heard is as follows:

The interest on your mortgage is calculated daily, and most banks will let you repay your mortgage bi-weekly or monthly. If you choose to repay bi-weekly you can chop a good few years off the mortgage repayment period, while not paying any extra.
 
something
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 3:07 pm

Quoting nighthawk (Reply 24):
Not sure what "principle" payments are

Payments in addition to the mortgage payment, to pay off the mortgage quicker and thereby reduce interest expense.
..sick of it. -K. Pilkington.
 
Okie
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 5:19 pm

Quoting something (Reply 25):
Payments in addition to the mortgage payment, to pay off the mortgage quicker and thereby reduce interest expense.


You are on the right track but missing a little in your description.
Principal is the amount of the loan
A normal payment early in a loans life would be a very small amount towards principal and a lot of interest, near the end of a loan the amount towards the principal will be high and a small amount towards interest.

Some loans have restrictions on extra payments, you have to check with your institution who holds the mortgage.
As Ken mentioned if there a no restrictions then a few extra bucks will make a big difference down the road, the main issue is that the mortgage companys do not like to have to re-figure your loan.

Congrats there DFWHeavy

Okie
 
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golfradio
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RE: Self Gloss: We Bought A Home!

Mon Jul 25, 2011 7:08 pm

Congratulations! It is a milestone in everyone's lives.

I can't belive how cheap real estate in Texas is. Here in the Greater Toronto Area, $215K will buy you a 20 year old, 2 bedrooom condo apartment with condo fees in the range of $500 per month. A house of your size will be easily push a million a dollars based on the upgrades.

Quoting DFWHeavy (Reply 23):
We are pretty sure it's a good investment, but not naive enough to say the value still couldn't go down a bit. Given that we bought it for so cheap and got a fixed 4.75% interest rate, I think we'll do ok

A home is your refuge where you relax, unwind and raise a family. I would never treat my house as an investment. If it appreciates great, if not you just cherish the happy memories you build in your house.
Bring back the old site.

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