Comments on: Buying a Home, part four: Calm Before the Storm

By: Get Rich Slowly » 2006 » October » 19

Get Rich Slowly » 2006 » October » 19 — Thu, 19 Oct 2006 03:52:05 +0000

[...] Featured Entries How to Spend Less – Lessons From ‘Why We Buy’Toward Financial IndependenceThe Boing Boing Digital EmporiumAn Introduction to HomesteadingControl Impulse Spending with the 30-Day RuleMy Paycheck is Late AgainA Brief Guide to Better SleepBuying a Home, part four: Calm Before the StormFree Comics from the Federal Reservelinks for 2006-10-03 [...]

loading....

By: Get Rich Slowly » 2006 » October » 12

Get Rich Slowly » 2006 » October » 12 — Sun, 08 Oct 2006 18:44:14 +0000

[...] Buying a Home, part four: Calm Before the Storm [...]

loading....

By: Christina

Christina — Thu, 05 Oct 2006 20:49:34 +0000

Grounding outlets doesn’t cost much. We had one outlet grounded (with an upgrade to 20 amps output) at $300.00.

What about all the appliances? They are currently in working order, but…

You’re buying a postWWII era house so…
if original furnace is there, expect to replace it for a more efficient model.

Appliances older than you are might be still working — we have a 1950s refrigerator, but we’ve replaced the stove and the washer. If the appliances have issues where you have the option to troubleshoot or replace, replace with energy efficient models if the return on investment warrants.

loading....

By: Bryan C. Fleming

Bryan C. Fleming — Thu, 05 Oct 2006 17:06:56 +0000

Luneray,

You’re buying in a slow housing market. Here in Detroit you pick up homes for a song. My neighbor has 2 house payments right now. He took $110,000 off the price of his old house. He still can’t sell it.

You’re buying at a great time. Relax and enjoy!

- Bryan
http://www.BryanCFleming.com

loading....

By: finance girl

finance girl — Thu, 05 Oct 2006 16:28:36 +0000

Congratulations on the home purchase! You are now on your way to building equity in your own place, which is very fun (and hopefully you won’t have many surprises your first year of ownership!)

loading....

By: triple-e

triple-e — Thu, 05 Oct 2006 15:36:04 +0000

The wiring could be very costly > 5000, depending on the house and what wiring was run. That sounds like the only gotcha so far. Good luck!

loading....

By: JM

JM — Thu, 05 Oct 2006 15:08:51 +0000

Yeah, your water line will probably break, and there will be a hurricane that causes the 3 year old roof to leak. The yard has gophers. You have carpenter ants the pest inspector didn’t see because it was a little cold the day he came by. etc. But these things are generally covered by warranty and insurance (less $500 deductible of course), or aren’t as expensive to deal with as you might think. There will be tons of hidden expenses and things that need to be fixed right now.

Did your realtor advise you to NOT do major remodeling changes for the first year? That would be pretty good advice if they did. Things are going to come up that you are going to have to deal with. That is the nature of owning a home. But the things you have to keep in mind through it all is:

1. homes are an investment, and any improvements/repairs you make will likely increase the value and make it that much more attractive to the next buyer (generally), so you should expect 50% back on the money you put into any given major project. Remember the golden rule when it comes time to sell: How it shows, it sells.

and

2. You are no longer throwing away your rent money every month.

Those are what keep me going. Even if house prices decline severely, they have always rebounded given enough time, historically speaking.

loading....

By: Duane Gran

Duane Gran — Thu, 05 Oct 2006 14:49:17 +0000

Be sure to thank those dogs (if they are still around) when it comes time to sell again. People’s tolerances vary, but if the dogs are still there (or their 8 new puppies) then expect the next buyer to put you in the same vice. Just sayin’…

loading....