I thought this was an interesting point from Dave Ramsey.
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Best time to buy a house?
- Thread starter mbsieg
- Start date
I'd have to say that's pretty unrealistic in this day and age. If you're saying pay for the whole thing at once.
If you're saying when you can make a down payment and the monthly payments easily, I agree with that.
I can tell a story about a person who bought a house about the same as many people would.
It was on the local news. A woman was having problems making the payment on her home. They were asking people to donate so this good woman would not be thrown out of her home. Many people were posting how bad it was when good people would be forced out of their homes by the money hungry rich people. The local news gave a little more information about the poor woman. She bought a $200,000 house and didn't pay anything down. She worked as a part time school bus driver.
There are a lot of people much like this woman. They cannot afford to buy a house. Then they try to buy a house that cost more than the average for where they live. They have not saved up any money to use as a down payment. They do not have a job that pays enough to make the payment on the house. Then they want other people to pay for their house to make up for the stupid thing they have done.
It was on the local news. A woman was having problems making the payment on her home. They were asking people to donate so this good woman would not be thrown out of her home. Many people were posting how bad it was when good people would be forced out of their homes by the money hungry rich people. The local news gave a little more information about the poor woman. She bought a $200,000 house and didn't pay anything down. She worked as a part time school bus driver.
There are a lot of people much like this woman. They cannot afford to buy a house. Then they try to buy a house that cost more than the average for where they live. They have not saved up any money to use as a down payment. They do not have a job that pays enough to make the payment on the house. Then they want other people to pay for their house to make up for the stupid thing they have done.
chowderman
Well-known member
it was the Obama "edict" that every American must be permitted to fulfill the home ownership dream.
rules changed, guidelines changed . . . they did it WOOHOO!!!
and then it all collapsed, into recession.
same thing here - people buying houses they could not remotely "afford" the mortgage/insurance/taxes on.
neighbor did three refi's - still wound up loosing the house.
many many local reports of defaults/evictions - people who did not have / _never had_ the ongoing income to actually 'pay the bills'
and history shall shortly repeat itself . . .
rules changed, guidelines changed . . . they did it WOOHOO!!!
and then it all collapsed, into recession.
same thing here - people buying houses they could not remotely "afford" the mortgage/insurance/taxes on.
neighbor did three refi's - still wound up loosing the house.
many many local reports of defaults/evictions - people who did not have / _never had_ the ongoing income to actually 'pay the bills'
and history shall shortly repeat itself . . .
Just had a gentleman on Facebook arguing with me in a group, stating the best way to get a low interest rate on a new car was to purchase it and then refinance his house and roll it into the mortgage. I basically told him he was nuts. You don't roll a depreciating item into your mortgage. It's one of the worst things you can do. It was a 30-year mortgage. On top of everything. He was convinced his monthly payment was less so he was paying less interest....
chowderman
Well-known member
most of the idiot-US-consumers only consider the $/month payment.
that the $/month payment will continue to 58 years , , , not a concern . . . .
the whole 'buy now pay later' ala eBay scheme is also starting to unravel as people come to understand they're paying (with interest...) 3x, 4x the purchase price.
that the $/month payment will continue to 58 years , , , not a concern . . . .
the whole 'buy now pay later' ala eBay scheme is also starting to unravel as people come to understand they're paying (with interest...) 3x, 4x the purchase price.
Part time bus driver would be a good 2nd or 3rd job, not as primary work.
When people are young, and building up cash and assets, they should be working a minimum of 60 hours a week.
Save, don't blow it on frivolous stuff, invest wisely, and by the time they are 30 ish they should be able to buy a home cash, or at a minimum 50% down. Not a mansion, but a liveable home.
If you have a mortgage, get a roommate, or 2 or 3.
People rely on credit far too much, then can't make the payments.
Also stop eating out, drive a reasonable used car, no gas guzzlers, or new cars you cannot buy with cash.
Society is out of control expecting a free ride.
When i was young, and broke, 8 of us rented a 4 bedroom house, 3 couples sharing rooms, 1 had her own bedroom, and for a discounted rent Tom had his bed in the living room. We rarely ate out, but cooked. I was a full time university student, and also worked 6 nights a week, 8 hour shifts. Summer holidays I was working 80 hours a week.
My life advice to anyone that will listen is that you will be amazed at how much disposable income you will have when you don't have any debt. It's hard to live with in your means and deny yourself the things that it seems everyone else has but remember that all those other people more than likely have one thing in common - debt.
That's what I was brought up to believe in the UK after WW11. My father always taught me that if you can't afford to pay cash, you can't afford it. He explained how principal and interest worked for the benefit of the loan company and not for the borrower.
That's how I live my life today. The only debt that I've ever had was a mortgage. Oh! I have bought a couple of tractors at 0% interest which isn't really debt but more of a deferred payment.
This is the same logic many learned in school when they all got "Participation" Trophies.
Same leadership from the Gubmit that ruined our school educations.
Same Gubmit forced banks to have easy credit.
And why the housing market collapsed.
Can you say Fannie Mae?
So, how about we go back to merit based success ....and include the risk of failure.