Comments on: YOU Need to Be In Charge

By: Blog.ByTheOwner.com » Blog Archive » YOU Need To Be In Charge

Blog.ByTheOwner.com » Blog Archive » YOU Need To Be In Charge — Tue, 27 Oct 2009 19:27:16 +0000

[...] an enormous wealth of information (pun intended). However, I thought that her blog entitled “YOU Need To Be In Charge” contained a very valuable lesson to anyone selling or buying a [...]

By: New Mortgage Info » Blog Archive » YOU Need to Be In Charge « gailvazoxlade.com

Sun, 13 Sep 2009 23:27:19 +0000

[...] Gail wrote an interesting post today onYOU Need to Be In Charge Â« gailvazoxlade.comHere’s a quick excerpt [...]

By: Sarah

Sarah — Sun, 06 Sep 2009 23:40:59 +0000

Hi everyone,

Well I had the home loan man out on Friday night and was SHOCKED at what he said I could borrow.

Single wage in Australia, just under 70k salary, they offered me……

$511,000-

How ridiculous. I told him there was no way I could service a mortgage that big and was looking for something in the region of $200,000-.

He said I was the first person to ever ask for less.

Sarah

By: Anna

Anna — Sun, 06 Sep 2009 22:19:18 +0000

Thanks! We recently went through this. We’re in the US. We got preapproved for an amount and the realtor tried her best to get us to spend the whole thing, after all, we’re getting a “free” bonus, right?

We found a house for nearly $20,000 less than we were preapproved for so I feel good about that.

But they also tried to make it a race. “Get it NOW, get it NOW” they said.

By: Vanessa

Vanessa — Sat, 05 Sep 2009 20:11:45 +0000

I am SO glad that this aspect of Property Virgins has finally been outed and discussed. I used to love watching the show and now I can’t stand it. It’s horrible when more and more couples are told by Sandra that an extra “X” amount on the total cost of the house is only a mere “Y” amount of extra dollars a month. While this might be a very worthwhile way to look at things if the extra cost a month will provide you with something absolutely essential (like the difference between a very safe neighborhood and a very scary and dangerous one), more often than not, the extra amount a month that you would be paying goes towards something that is not very valuable (such as a staged house that looks very stylish when you see it). I understand that the idea of the show is how tricky it is to find the ideal first time house, but it is increasingly less substance and more style.

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Fri, 04 Sep 2009 23:00:49 +0000

[...] YOU Need to Be In Charge « gailvazoxlade.com Share and Enjoy: [...]

By: Jo

Jo — Fri, 04 Sep 2009 16:49:51 +0000

I was really interested to see your comments on the Property Virgins show since Ive thought the same thing every time Ive watched it and stopped watching for the same reason. She seemed more interested in getting the inexperienced to spend as much as possible and not what was best for them. I think the recession especially in U.S. has forced many to rethink the life of excess for status and approval. BTW I also would like to see followup shows of your clients 6 mths, 1 yr and more down the road.

By: Frugalistas

Frugalistas — Fri, 04 Sep 2009 13:56:08 +0000

You are so bang-on correct. Right now, everyone is buying because interest rates are absolutely low. In fact, you should be anticipating a large interest rate increase both in the short term and long-term (BOC overnight lending/long term bond) rates.

When that happens, any interest-bearing debt becomes heavier and heavier, becoming much like an anchor around your neck, and that of your family.

Getting rid of debt means living a simple life and BELOW your means. Living within your means is another excuse to spend what you earn. Living below your means makes you happier and healthier, and allows you to sleep well at night.

Our family does it, and we are utmost satisfied not having to ‘keep up’ with the Jones’.

By: Money Coach

Money Coach — Fri, 04 Sep 2009 04:03:15 +0000

Very good article. People need to get in the habit of asking how much is this going to cost me over the length of the term vs. how much is this going to cost me monthly. As much as we like to point fingers at banks and mortgage brokers, as consumers it’s our money and it’s up to us to learn how to use it effectively.

By: This and That: Home Renovation Tax Credit and more… | Canadian Capitalist

Fri, 04 Sep 2009 03:49:14 +0000

[...] Gail isn’t too pleased with our love affair with stuff. [...]

By: Stephanie H.

Stephanie H. — Fri, 04 Sep 2009 03:07:10 +0000

When I decided to buy a house my broker and I sat down and figured out what price range a home needed to be in to meet the maximum amount I felt I could spend a month (including taxes, insurance, etc). My broker gets work through referral so it is in her best interests to have clients who are happy with her at the end of the purchase. I did ask her what I qualified for (just out of curiosity) and it was nearly double with what I felt comfortable with. I also got a realestate agent through a couple of recommendations and he sent me the neighborhood comparables to review myself. I also would highly recommend an inspection. My house did have some problems but at least I knew that going in and I set money aside to take care of them. Just an FYI, an inspection is equally important on a new house as an old house. My friend who have purchase new homes versus my 60 year old house actually had more problems than I did.

By: Amy

Amy — Fri, 04 Sep 2009 03:06:14 +0000

I totally agree with Gail’s “message” in this post: YOU need to take charge .. as a few posters have said previously regardless of what anyone says ultimately you are responsible for the decision you make and it has to be something you are comfortable with
.. while it really sucks to be one of those people who have overextended themselves becuase the bank said they could have that money..all I can say is sorry about your luck..callous..yeah probably but unless the bank outright lied to you about how much you would be borrowing or how much your payments you really have no one to blame but yourself…
Again probably callous to say and I am sure will stir the natives but if you can’t understand the implications of borrowing X dollars and how it fits into your budget or what an amortization schedule means maybe you shouldn’t be a home owner…
used to be that home ownership was a privilege reserved for those who managed their money well and worked hard- I think most people today -especially my generation and the one after me (I am 33) feel that home ownership is a right and banks and mortgage companies have simply captialized on that mentality – hence the 40 year mortgages and zero down payments…
I was shocked at the difference in the process we went through for getting our first mortgage-the hoops we had to jump through to when it came to getting approved – to when it was time to get our second… the bank was literally saying do you want more money for anything? maybe a new vehicle or a trip? I think as consumers we have to realize the product has changed and we have to evaluate it more than in the “good old days”..

By: Gail

Gail — Fri, 04 Sep 2009 00:55:09 +0000

I have deleted Armageddon’s (sp?) comment from the site. It was inappropriate and I’ve warned before that this is not a place to be mean. (fingers waving) Buh-bye, Arma, buh-bye.

By: winkwink

winkwink — Thu, 03 Sep 2009 23:12:07 +0000

I was blown away with what the banks think we can afford.

We are planning on renting out one or two of the bedrooms in our house (we live in a place with a lot of seasonal workers) for all or part of the year. Obviously our emergency fund will cover a few months of tennant-free mortgage payments, but I struggled with whether or not to factor that into the house we could afford.

jay – good for you! congratulations on having such a large downpayment on your own.

By: jay

jay — Thu, 03 Sep 2009 22:44:38 +0000

As far as Property Virgins goes, I’m told the homeowners don’t get anything (ripoff!) but I have no particular problems with the host.

A real estate agent’s ‘victory’ is really just getting you to buy a house that you really want. The budget is kind of up to the buyer.