Comments on: Home Buying Smarts http://gailvazoxlade.com/blog/archives/117 Tue, 07 Sep 2010 01:51:48 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Erik http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-965 Erik Sun, 11 May 2008 13:44:29 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-965 Gail, both my wife and I are big fans, and occasionally regret that the care we've taken with our finances precludes our appearing on your show. We bought our first home two years ago, plunking down 20% on a 150K home that's about 90 years old in a "slightly less than optimal" neighborhood. As we were moving 100km, and were not certain we would find jobs paying anything better than minimum wage we did the numbers (more than once) and found something we liked that we could afford even if everything went horribly wrong (employment, interest rates...whatever). Funny how the numbers climb upward so rapidly. At the very beginning we set our ceiling at 150K and started looking in the Hamilton area at 80K homes, in a matter of weeks we were looking in a different city at homes costing 125K, then 135K. Technically the house we ended up buying was 5K more than our ceiling (155K) and still for just a few thousand more, and then a few thousand more... but you get the idea. I can see where people fall into the trap, getting approved for X doesn't mean you have to buy a house for the total value of the approval. Our logic was we should buy a house we can afford under "near worst-case scenarios" and one that we would be able to pay off rapidly if things stayed the same or improved. We're now accelerated bi-weekly with the extra added onto the payments (as much as they will allow) which will save us a bomb. We're not house-poor, and thanks to our home inspection (which WAS a condition on our offer) we've not had any nasty suprises since taking possession. Great advice! Gail, both my wife and I are big fans, and occasionally regret that the care we’ve taken with our finances precludes our appearing on your show.

We bought our first home two years ago, plunking down 20% on a 150K home that’s about 90 years old in a “slightly less than optimal” neighborhood. As we were moving 100km, and were not certain we would find jobs paying anything better than minimum wage we did the numbers (more than once) and found something we liked that we could afford even if everything went horribly wrong (employment, interest rates…whatever).

Funny how the numbers climb upward so rapidly. At the very beginning we set our ceiling at 150K and started looking in the Hamilton area at 80K homes, in a matter of weeks we were looking in a different city at homes costing 125K, then 135K. Technically the house we ended up buying was 5K more than our ceiling (155K) and still for just a few thousand more, and then a few thousand more… but you get the idea.

I can see where people fall into the trap, getting approved for X doesn’t mean you have to buy a house for the total value of the approval. Our logic was we should buy a house we can afford under “near worst-case scenarios” and one that we would be able to pay off rapidly if things stayed the same or improved.

We’re now accelerated bi-weekly with the extra added onto the payments (as much as they will allow) which will save us a bomb. We’re not house-poor, and thanks to our home inspection (which WAS a condition on our offer) we’ve not had any nasty suprises since taking possession.

Great advice!

]]> By: H http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-964 H Sat, 10 May 2008 16:24:38 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-964 If you're buying a bungalow, make absolute sure the basement already has a bathroom or is set up to have one installed. Dear God, please make sure. We don't exactly owe the plumber our first-born, we were aware of the costs and saved enough to cover it all, but a few days of our wonderful tradesperson = $$$$$. If you’re buying a bungalow, make absolute sure the basement already has a bathroom or is set up to have one installed. Dear God, please make sure. We don’t exactly owe the plumber our first-born, we were aware of the costs and saved enough to cover it all, but a few days of our wonderful tradesperson = $$$$$.

]]> By: Nancy http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-960 Nancy Fri, 09 May 2008 19:50:10 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-960 In the Lower Mainland, BC, you can hardly buy a decent condo for under $200,000. I live in a 30 yo building in Langley (an hour outside of Vancouver), only ones that are still under that price point, and the maintenance is higher than in new buildings. But, I like it, and it's bigger than anything new. I'd like a house again, but it's $400K in my area for a fixer-upper. A townhouse would be nice too and they're between $3-$400 and up. We have so many families that are now living in townhouses, it is what is affordable for a family. In the Lower Mainland, BC, you can hardly buy a decent condo for under $200,000. I live in a 30 yo building in Langley (an hour outside of Vancouver), only ones that are still under that price point, and the maintenance is higher than in new buildings. But, I like it, and it’s bigger than anything new.

I’d like a house again, but it’s $400K in my area for a fixer-upper. A townhouse would be nice too and they’re between $3-$400 and up.

We have so many families that are now living in townhouses, it is what is affordable for a family.

]]> By: admin http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-963 admin Fri, 09 May 2008 19:48:25 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-963 Geoff: in a market like Toronto, your advice about selling first makes good sense. The important point is not to end up with two mortgages! Geoff: in a market like Toronto, your advice about selling first makes good sense. The important point is not to end up with two mortgages!

]]> By: Geoff http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-962 Geoff Fri, 09 May 2008 18:13:18 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-962 Gail, love your show and love your level-headedness. However, you're all about facing reality and the reality is that at least in Toronto, it's virtually impossible to buy a house in a good neighbourhood conditional on the sale of your house first. Financing, home inspection maybe (maybe!) acceptable clauses, but on the sale of your house is not likely. Better advice is to sell your house first, and then buy with an offer that's clean. We bought our house last year and came in with no conditions, and I wonder if that's why they choose our offer over the 6 other families who bid on it, even though I don't think we were highest $. I would recommend that if uncomfortable with not following your advice, a person hold off on buying until the market calms down. P.S. We had a pre-offer home inspection, which meant our offer truly was condition free. Gail, love your show and love your level-headedness. However, you’re all about facing reality and the reality is that at least in Toronto, it’s virtually impossible to buy a house in a good neighbourhood conditional on the sale of your house first. Financing, home inspection maybe (maybe!) acceptable clauses, but on the sale of your house is not likely. Better advice is to sell your house first, and then buy with an offer that’s clean. We bought our house last year and came in with no conditions, and I wonder if that’s why they choose our offer over the 6 other families who bid on it, even though I don’t think we were highest $. I would recommend that if uncomfortable with not following your advice, a person hold off on buying until the market calms down.

P.S. We had a pre-offer home inspection, which meant our offer truly was condition free.

]]> By: Leslie http://gailvazoxlade.com/blog/archives/117/comment-page-1#comment-961 Leslie Fri, 09 May 2008 17:46:10 +0000 http://www.gailvazoxlade.com/blog/?p=117#comment-961 Gail, this couldn't have come at a better time. My husband and I are about to enter The Housing Market for the first time and, with your voice in our heads, have paid of all our debt: consumer debt (which wasn't very much to begin with), student debt (which was), line of credit and car loan. But even though we're starting with a "clean slate", we're still being careful not to become "house rich" and "money poor" Your shows and blog are an inspiration to us. I really wish someone had told me all this money stuff when I was 18 rather than now that I'm nearing 40. But I'm glad I'm learning it now! Thanks for the great work you do! Gail, this couldn’t have come at a better time. My husband and I are about to enter The Housing Market for the first time and, with your voice in our heads, have paid of all our debt: consumer debt (which wasn’t very much to begin with), student debt (which was), line of credit and car loan. But even though we’re starting with a “clean slate”, we’re still being careful not to become “house rich” and “money poor”

Your shows and blog are an inspiration to us. I really wish someone had told me all this money stuff when I was 18 rather than now that I’m nearing 40. But I’m glad I’m learning it now! Thanks for the great work you do!

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