Chris S

Just saw my '08 property assessment valuation - up ~$75K. That may be a bit aggressive, but still...that covers a lot of mortgage payments, taxes, and other related expenses!

martha

Considering real estate values have fallen in most areas in the past year, I'd have to fight an increase in valuation unless you live in one of the few areas when prices haven't been hit.

sahtt

Valuations and what someone is actually willing to pay are different figures. Decreased lending alone has sunk home prices to some degree.

RedY2KS2k

I agree that keeping expenses down is vital to accumulating wealth. Many people have built wealth on meager salaries; they were frugal and invested well. I think we all agree on this point.

Successful landlords generally collect more in rent than their mortgage and other expenses. In other words, their tenants are providing them with a positive cash flow in the short term, and amortization of their debt in the long term. Appreciation in property values is just the icing on the cake. Keep in mind that long term, rents will increase with the rate of inflation; a fixed-rate mortgage payment remains constant over decades. Taxes do go up, but they're not the whole payment for a mortgagee.

And as C-Three pointed out, in the US a single person is entitled to $250k ($500k for a married couple) lifetime in capital gains on primary residence with no tax obligation.

I did overstate my case earlier. Although someone who is $75k upside-down on their house may be no worse off than those of us who lost $75 in the stock market in 2001-2002 and held on to see it recover.

aklucsarits

Asssuming you have good credit, now is as good a time as any to buy a home that you plan to live in.

One thing that only one person in this whole thread touched on so far is the problem of buying the property with someone that you are not married to. This presents several significant legal and financial issues that you must consider, including, but not limited to:

1) Whose name will the property be in? (Let's assume it will be both of you).
2) How will you handle the mortage interest tax deduction? You take it all? Split it? If you both split it, it might not be any better than the Federal Standard Deduction.
3) What happens if you both split up? You will want to consult your real estate attorney to fully explore the ramifications, and possibly get a contract drafted and signed now to cover this situaqtion, should it ever arise. If you ever split up, and both of your names are still on the mortage, you are still both legally responsible to pay. So let's say that you do split. You agree to move out and she will keep the house, taking over all payments. But then months or years later, she stops paying the bills... The creditors can and will hold you responsible for that debt as well and come after your assets to be made whole.

The best way to do this is probably for you to buy a place that one of you can afford on your own. Put everything related to the property in that one person's name. That way, if you two ever split, it won't be a financial heartbreak too.

Andrew

duboseq

Do you and your girlfriend plan on getting married? Because if ya'll break up it is a wrap if buying the house. I hope everything works out.

In Florida it is a buyer's market for sure.

vroomvroomkaboom

CA also, for sure