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Buying a home

Duramax

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1.Crazy to even think about right now.
2.Wait 3 months
3.Wait 6 months

What is everyone’s take? This is in AZ, Tucson to be exact.

I think we would be crazy, I just want the groups opinion.
 

LBsuperJET

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1.Crazy to even think about right now.
2.Wait 3 months
3.Wait 6 months

What is everyone’s take? This is in AZ, Tucson to be exact.

I think we would be crazy, I just want the groups opinion.
Been wondering the same thing actually.
 

Spudsbud

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Virus aside, I dont see.the Fed doimg anything/much with rates for awhile. .25 of a point maybe, so...... why wait.....
 

HNL2LHC

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I have always been one to buy for the sake of buying not to try to time the market. We never planned on moving often or far so it was never put into consideration. At 25 i did not want to pay my hard earned cash to someone else. We did whatever we could to buy. Started with condo and moved up.

Price/interest rates always balance out. Currently high price low interest. 1970s low price high interest rates.

Just having a house and paying some else’s mortgage is reason enough for me.

The sooner you buy the sooner that your expenses will be stable unless ARM. and sooner that it will be paid off.

Don’t pull cash out to buy toys, Save enough to buy a second place and don’t sell the first. Don’t leave beyond your means. You can do it. Any questions just ask. Only stupid questions are the ones not asked. 👍

Plus at this point we have 4 homes, 3 rented, and in the last 12 months values have gone up fairly well. Don’t get me wrong there have been a few tight years but well worth it over the years.
 
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SW_GLASS

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I live in Tucson. My wife and I relocated from Socal three years ago. Prices are high right now in Tucson due to supply and demand. More people looking for houses then selling them. If you want I can talk to my friend who is a real estate agent as well as works in the real estate department at Pima county and see if they have any projections what might be happening housing wise in the next 3-6 months.
 

DLC

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Like what HNL2LHC said look at getting into some sort of investment property for a rental potential - duplex or condo single family home set it up to rent not to live in forever!

It might take 6 months to find the right deal, so I would be looking and walking thru homes condos etc.

don’t wait to time the market! , that never works
 

lbhsbz

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Well, prices were stupid 3 years ago....I waited a year and they got more stupid when I found a house to buy...but I paid it. I (and many) thought that Covid would affect prices, but it doesn't seem they have...they keep going up.

If you're buying a house to live in, and don't plan on selling soon, and you can afford the payments and like the house...buy it. You'll still be able to afford it even if zillow says it ain't worth shit and you'll still like the house, and it will recover in "value"...especially with the level of inflation we're going to be experiencing. If you plan on buying it to live in for a few years and flip to make a bunch of money...be more cautious.

Personally, I'd buy what I can afford and take advantage of the low interest rates.
 

HOOTER SLED-

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I dont think its ever a bad time to get into a house.....personally , I'd wait for a dip. I bought in 2005, just before the peak. Only regret I have is not buying sooner....or waiting. I'm barely back to the price range that I paid. Frustrating. Don't know why this pocket or area is just stuck at that price range. Shit, the house we almost bought at the same time for 30k less is even valued at 80k more than mine. I don't get it. Lame
 

DaytonaBabe

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Depends a lot on your situation. We just moved into our new home on Saturday. We signed papers and put money down to begin the build back in Jan 2020, before we knew about what a shitshow 2020 was going to be. Knowing what we know now, we still would have done the same thing. Yes, prices are high, but we've been looking for the right house on the right lot for over 3 years. Interest rates are loooow. Yep, the market will tank at some point. It's cyclical, so it will come back again at some point too. Does the current state of affairs in our country scare the shit out of me? Yep. But, I'm not gonna live my life in fear of what could be. I don't regret our decision one bit.

If you have found THE perfect house in the perfect area that you have been dreaming about, my advice would be to pull the trigger.

Pic of our kitchen since the rest of the house is boxes. Lol. Ugly black Keurig is going away once our fridge with Keurig comes in from backorder.
20201117_082847.jpg


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Flying_Lavey

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I live in Tucson and have been watching housing prices and availability for the past year or so. I feel the pricing trend of the new tract housing usually is a pretty good indicator on the trajectory at the moment. I can see these prices maintaining or climbing for at least through the end of they year, unless eviction freezes are continued. If not, I feel the inventory is going to increase here in about 6 months and as long as there isn't a huge influx of refugees from California, prices should drop a little.

Thats my humble take on it though and I'm hoping I'm right cause that would put us in a damn near perfect position to buy at that time.

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Looking Glass

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I live in Tucson and have been watching housing prices and availability for the past year or so. I feel the pricing trend of the new tract housing usually is a pretty good indicator on the trajectory at the moment. I can see these prices maintaining or climbing for at least through the end of they year, unless eviction freezes are continued. If not, I feel the inventory is going to increase here in about 6 months and as long as there isn't a huge influx of refugees from California, prices should drop a little.

Thats my humble take on it though and I'm hoping I'm right cause that would put us in a damn near perfect position to buy at that time.

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When did you buy?
 

traquer

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Price/interest rates always balance out. Currently high price low interest. 1970s low price high interest rates.

^ That's very true, I didn't think of it like that.

My biggest dilemma now is I have too many options. I work online for myself so location doesn't matter. Buying in Texas would be the smart choice, staying in CA would be the fun choice...
 

LargeOrangeFont

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^ That's very true, I didn't think of it like that.

My biggest dilemma now is I have too many options. I work online for myself so location doesn't matter. Buying in Texas would be the smart choice, staying in CA would be the fun choice...

Texas is only smart if you buy a house for cheaper than here. People sell their $1M house here and go buy a $1M house there and get creamed on the property taxes. It’s still a savings vs. CA, but not a tremendous one.
 

LargeOrangeFont

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1.Crazy to even think about right now.
2.Wait 3 months
3.Wait 6 months

What is everyone’s take? This is in AZ, Tucson to be exact.

I think we would be crazy, I just want the groups opinion.

If you are renting you are throwing money away every month. Rent will never get cheaper. Interest rates have never been lower. What exactly are you waiting for? If in another year for prices to drop 10% after after going up another 6% from today? You just lost money in the rent you paid for the year waiting for prices to drop 4%.
 

BHC Vic

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Housing market is interesting. When we bought 3 years ago in norco I told my wife we were making a mistake and buying at the top of the market and paying too much. I told her if she’s wanted it, let’s do it, and I’ll make it happen. Well three years later the house has gone up at least 100k. Not sure I could afford it today.
 

Instigator

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How soon do you want to pay off a mortgage?
As long as your not planning on selling in the next 3 to 5 years why wait?
 

Bear Down

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We purchased our home in SO CAL in 2018.. .When we made our offer, I knew we were really on top of our price range and felt like we were over paying. Today, we would never be able to buy in our neighborhood....I guess what I am trying to say if you are ready to buy and can afford it, BUY. If you are waiting for market to drop, I think you'll just hurt yourself and budget in the long run.
 

MeCasa16

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Texas is only smart if you buy a house for cheaper than here. People sell their $1M house here and go buy a $1M house there and get creamed on the property taxes. It’s still a savings vs. CA, but not a tremendous one.
If you’re buying a house in Texas for 1 million, I’ll give you an example;
101391A1-1BCE-4C15-9590-48956466DD44.png
7FDF8B7E-2567-42F9-BE43-4F5152AAE2D8.png

1.15 million. 10k/yr in taxes.
How much do you think he needs to make a year to afford that house? I’m guessing their income is enough that the state income taxes of California would slaughter the savings of property taxes. Texas has 0% state income tax... mic 🎤 drop.
My wife and I are based in LA for work, but would never consider living in CA for just that reason... It’s a ridiculous amount of money to pay for the sunshine tax.
 

boatnam2

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I was talking with my lender the other day( chase bank) and he was telling me the amount of people not paying their mortgages is off the chart, along with forbearance people . In my mind if I was buying long term I would just because you have time on your side. Being older I have gotten to see 3-4 cycles and always heard this will never end stories buy now or you will never be able to. I plan on picking up something for retirement, might wait it out some and see what happens, could go higher, but will for sure go way lower at some point imo.
 

hallett21

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If you’re buying a house in Texas for 1 million, I’ll give you an example;
View attachment 943911 View attachment 943912
1.15 million. 10k/yr in taxes.
How much do you think he needs to make a year to afford that house? I’m guessing their income is enough that the state income taxes of California would slaughter the savings of property taxes. Texas has 0% state income tax... mic [emoji441] drop.
My wife and I are based in LA for work, but would never consider living in CA for just that reason... It’s a ridiculous amount of money to pay for the sunshine tax.

Wouldn’t taxes go up after sale? 10k is based on the 800 valuation it looks like. Unless I’m seeing it wrong taxes would be closer to 14k.


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boatnam2

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I thought property tax in Texas was like 2-2.4?
 

Singleton

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Wouldn’t taxes go up after sale? 10k is based on the 800 valuation it looks like. Unless I’m seeing it wrong taxes would be closer to 14k.


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your accurate. The 10k is based on the 800k valuation
 

LargeOrangeFont

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If you’re buying a house in Texas for 1 million, I’ll give you an example;
View attachment 943911 View attachment 943912
1.15 million. 10k/yr in taxes.
How much do you think he needs to make a year to afford that house? I’m guessing their income is enough that the state income taxes of California would slaughter the savings of property taxes. Texas has 0% state income tax... mic 🎤 drop.
My wife and I are based in LA for work, but would never consider living in CA for just that reason... It’s a ridiculous amount of money to pay for the sunshine tax.

You aren’t wrong, even with that miscalculation on the property tax Texas is still cheaper than CA. The savings just aren’t as significant if you take your entire CA home spend to Texas. If you bought a home similar or a slight upgrade to what you have in CA, definitely big savings.

That said I know a dozen people that moved to TX and bought mansions.. they are “all in” almost the same cash outlay as in CA, but the cost of living is lower and they are in a mansion lol.

just depends on what you want to do.
 

2Driver

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Depends a lot on your situation. We just moved into our new home on Saturday. We signed papers and put money down to begin the build back in Jan 2020, before we knew about what a shitshow 2020 was going to be. Knowing what we know now, we still would have done the same thing. Yes, prices are high, but we've been looking for the right house on the right lot for over 3 years. Interest rates are loooow. Yep, the market will tank at some point. It's cyclical, so it will come back again at some point too. Does the current state of affairs in our country scare the shit out of me? Yep. But, I'm not gonna live my life in fear of what could be. I don't regret our decision one bit.

If you have found THE perfect house in the perfect area that you have been dreaming about, my advice would be to pull the trigger.

Pic of our kitchen since the rest of the house is boxes. Lol. Ugly black Keurig is going away once our fridge with Keurig comes in from backorder. View attachment 943856

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That looks awesome Mel, congrats. Love that huge island. Glad you added the disclaimer for the Kuerig, because I was going to say....LOL.
 

MeCasa16

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Wouldn’t taxes go up after sale? 10k is based on the 800 valuation it looks like. Unless I’m seeing it wrong taxes would be closer to 14k.


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The taxes are based on tax assessed value, not sale price.. The home value for a sale, and the tax assessed value are independent trajectories. The tax assessor and assessor used for your lender on the purchase of a home are not related in any way. Go on Zillow and look at houses that have sold in 2019 and then look at their 2020 tax assessed value. They may have gone up some, but nowhere near the value of the home.
 

941Punk

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My brother has a home in Mansfield TX, On Friday morning it hit the market at 275k, Friday night it was under contract at 285k.

Unreal.
 

c_land

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If you’re buying a house in Texas for 1 million, I’ll give you an example;
View attachment 943911 View attachment 943912
1.15 million. 10k/yr in taxes.
How much do you think he needs to make a year to afford that house? I’m guessing their income is enough that the state income taxes of California would slaughter the savings of property taxes. Texas has 0% state income tax... mic 🎤 drop.
My wife and I are based in LA for work, but would never consider living in CA for just that reason... It’s a ridiculous amount of money to pay for the sunshine tax.

My taxes in CA on a $500,000 house were almost $8k a year after special assessments, LLMD, community facilities districts, and whatever else they felt like tacking on. I don't think people realize that CA property taxes still aren't a great deal.
 

monkeyswrench

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As others have said, if you can, and are currently renting, buying something can't hurt you. So long as you buy within your means. In terms of interest and price, there's something called "Laffer's Curve". As interest rates fall, prices go up. On a gragh, where those two lines meet would be the opportune moment to get the best of both. Interest seems to be the lowest I've ever seen, and the market is probably the highest...so maybe Laffer was right. If you plan on staying in the house for a good deal of time, buying a bit on the high side is no big deal...the price will come back even if it falters some.
I'm 43, and 2 of the first three houses I lived in were foreclosures. Between "sweat equity" and the market timing (lucky as hell, not my planning) I made enough to buy in Az. Everybody's situation is different though. I was single in the first house, and by the 3rd house we were a family of 5. Look at the long term goals, and also what might happen. If kids are a possibility, schools and shopping effect location. If older, or may have a parent needing care at some point, hospitals and doctors come into play.
 

Riverhound

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The taxes are based on tax assessed value, not sale price.. The home value for a sale, and the tax assessed value are independent trajectories. The tax assessor and assessor used for your lender on the purchase of a home are not related in any way. Go on Zillow and look at houses that have sold in 2019 and then look at their 2020 tax assessed value. They may have gone up some, but nowhere near the value of the home.
Thats correct... When we lived in Flower Mound, TX we appealed our property tax assessment and had it reduced due to inflated values used by the county. I think the broader issue is total cost of living, even if you swap housing cost 1 to 1, you are still going to see an approximate 25-30% decrease in your overall living expenses from CA to TX. At least we did.
 

pronstar

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Texas property taxes are high as a percentage, around 2.5%, compared to CA.

But the houses also cost 1/3 less compared to coastal CA.

A million bucks doesn’t go far in coastal CA.
But it’ll get you the Taj Mahal in most of DFW.


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Here's my experience. My buddy moved to Az 5 years ago and has been renting at $1400/month, waiting for the next crash. $84,000 in rent waiting for houses to go on sale. I've been in my house 18 months and value has gone up $30,000. He pays $1400 a month plus utilities. My house has been paying me $1000 a month, after paying mortgage and utilities. We both are not living beyond our means.
 

hallett21

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The taxes are based on tax assessed value, not sale price.. The home value for a sale, and the tax assessed value are independent trajectories. The tax assessor and assessor used for your lender on the purchase of a home are not related in any way. Go on Zillow and look at houses that have sold in 2019 and then look at their 2020 tax assessed value. They may have gone up some, but nowhere near the value of the home.

But if you buy an 800k valued home for 1.15 million the new assessed value will be 1.15. Unless you’re saying that Texas does it differently?




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boatpi

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Right now it’s all about the money some low rates about a week ago we’re low in 2 1/4% on a purchase
 

Riverhound

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1.Crazy to even think about right now.
2.Wait 3 months
3.Wait 6 months

What is everyone’s take? This is in AZ, Tucson to be exact.

I think we would be crazy, I just want the groups opinion.

We currently live in Tucson and yes the market is inflated at the moment so you "might" take the chance of overpaying if you purchase now. The reality is Tucson is historically a moderate housing market that hasn't been impacted by large value swings up or down so your risk is low in my opinion.

If you're trying to time the market to save a few $$$$, good luck. Even the pros mis the mark most times, others just get lucky and claim they're Carnac the magnificent! Interest rates are at historic lows so if you can find a place you fall in love with and fits your budget I would go for it.
 

pronstar

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But if you buy an 800k valued home for 1.15 million the new assessed value will be 1.15. Unless you’re saying that Texas does it differently?




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Yeah it’s a bit different here.
Texas property taxes are assessed at “market value”.

Believe it or not, they do not have access to selling prices on homes.

So disputing property taxes and county-assessed values is a cottage industry. It’s about $400 to have a firm fight to lower your assessed value.


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MeCasa16

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But if you buy an 800k valued home for 1.15 million the new assessed value will be 1.15. Unless you’re saying that Texas does it differently?




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I’m saying sales prices and the tax assessed value are completely different. They don’t base property taxes on the sales price. It goes off of the assessed value from the tax assessor. They are not related in the way most people think. Sales price does not affect property tax. That’s not just Texas. It’s everywhere.
 

Cdog

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Here's my experience. My buddy moved to Az 5 years ago and has been renting at $1400/month, waiting for the next crash. $84,000 in rent waiting for houses to go on sale. I've been in my house 18 months and value has gone up $30,000. He pays $1400 a month plus utilities. My house has been paying me $1000 a month, after paying mortgage and utilities. We both are not living beyond our means.


You can wax poetic on and on about this concept but the guy's buying 350k homes with 5% down caught in their own feedback loops won't listen. I see it all the time. Meanwhile 1/4 by 1/4 goes by and and they lose more ground.
 
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Cdog

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I’m saying sales prices and the tax assessed value are completely different. They don’t base property taxes on the sales price. It goes off of the assessed value from the tax assessor. They are not related in the way most people think. Sales price does not affect property tax. That’s not just Texas. It’s everywhere.

What state are you referring to? Texas?

Assessed value is based on sales price data in many states like AZ. In CA its 1% of the sales price + local assessments.
 

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You can wax poetic on and on about this concept but the guy's buying 350k homes with 5% down caught in their own feedback loops won't listen. I see it all the time. Meanwhile 1/4 by 1/4 goes by and and they lose more ground.
Huh?
 

Singleton

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If you like the house buy it.
I think of real-estate as a long term investment. It will go up, it will go down. in the end, should be worth more in 10-20 years when you want to sell. If you need to sell, your % of return might be smaller or negative based on market.
 
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2Driver

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Guys are in the wrong places.

In Carefree my taxes are $3,400. That’s for a 3,800. sq ft with pool and seperate A/C 3-car garage on just shy of 10 premium acres with 50 mile views. Paved roads city water.

Next door In Scottsdale taxes would be closer to 6k and in Prescott 7k+.
 

COCA COLA COWBOY

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If you’re buying a house in Texas for 1 million, I’ll give you an example;
View attachment 943911 View attachment 943912
1.15 million. 10k/yr in taxes.
How much do you think he needs to make a year to afford that house? I’m guessing their income is enough that the state income taxes of California would slaughter the savings of property taxes. Texas has 0% state income tax... mic 🎤 drop.
My wife and I are based in LA for work, but would never consider living in CA for just that reason... It’s a ridiculous amount of money to pay for the sunshine tax.


I have a client that just sold his home in Oceanside that is in the process of moving to Texas, DFW area. His plan was to downsize as it's just him and one 18 year old son. His home in Oceanside was 3200sf home on a decent sized lot and great floor plan. When I spoke to him last night I asked about his downsized new home, he stated it didn't work out....he bought a 6000SF, 6 bedroom home with a huge media room for $500k!
 

hallett21

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I’m saying sales prices and the tax assessed value are completely different. They don’t base property taxes on the sales price. It goes off of the assessed value from the tax assessor. They are not related in the way most people think. Sales price does not affect property tax. That’s not just Texas. It’s everywhere.

Well when we bought our house the new assessment was to exact digit of what we paid lol

But then again that’s LA County


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