Forgive me PPOT, for I have sinned - Wayne's most humbling post ever... - Page 2

Dantilla · 04-16-2008, 05:33 AM

As a guy who has bought & sold several times, my realtor has a firm rule:

"If it's been on the market for more than one day, it's not a good enough deal"

The true bargains are scooped up the day they hit the market. You did good.

My wife absolutely loves our home. Hard to put a price on that. With your wife being happy about being able to plant roots again, and you happy that it was financially wise, I'n convinced you did the right thing. And it was worth the wait, wasn't it?

legion · 04-16-2008, 05:34 AM

Approach it this way: Is being (financially) right worth putting strain on your family?

Congratulations! You made the right decision.

Now if you had told us that you were getting a negative-amortizing, interest-only loan and were planning on "flipping" the house in two years, you should rightfully be called and idiot.

You said it yourself that you can't time the peak. You can't time the nadir either.

morganb · morganb's Garage

A lifestyle call is different from an investment. I just did a similar thing. 25 years from now it won't matter, you and family will have enjoyed the house and lifestyle, you cannot put a price of 10 or 50% on this.

Rot 911 · 04-16-2008, 05:42 AM

Most home buyers are not like you and your wife (or me and my wife) in that you are always looking and know what you want. Then when a decent house comes along and you know the market, you are in a good position to buy.

Porsche-O-Phile · Porsche-O-Phile's Garage

Don't ever think you "own" the house. You don't. Until it's paid in full, the bank owns it - and owns you by extension. I chuckle when people talk about "ownership societies" and stuff like that. What % of RE is actually owned by someone other than the underwriter/lender? Probably a very, very low percentage. . .

I'm sure Wayne is smart enough to see that distinction. That said, it's still nice to have some ownership stake in the property.

onewhippedpuppy · 04-16-2008, 05:44 AM

Damn it Wayne, stop putting that MIT education to use!

You bought a beautiful home for a great price. Most importantly, you make the wife happy. Unless you're a single guy or a house flipper, purchasing a home is far more than a rational investment decision. It's about family, and a place for them to call HOME. Houses can be a very emotional purchase, smart buyers manage to balance the emotion and investment. Sounds like you did well, congrats!

onewhippedpuppy · 04-16-2008, 05:45 AM

Quote:

Originally Posted by Porsche-O-Phile

Don't ever think you "own" the house. You don't. Until it's paid in full, the bank owns it - and owns you by extension. I chuckle when people talk about "ownership societies" and stuff like that. What % of RE is actually owned by someone other than the underwriter/lender? Probably a very, very low percentage. . .

I'm sure Wayne is smart enough to see that distinction. That said, it's still nice to have some ownership stake in the property.

I own more of my house than you do your rental.

Porsche-O-Phile · Porsche-O-Phile's Garage

Maybe, but the worst that can happen with a rental is you get forced to move. The "worst that can happen" with buying is far, far worse and destructive.

FWIW, I know a lot of people out here (several friends, co-workers, wife's friends, etc.) who "own", have payments 1.5-2.5X what my rent payment is and have exactly the same amount of equity in their places - zero (either due to i/o loan terms, declining market value, or both).

Buying is important yes, but buying at the right time, for the right terms and most importantly for LONG ENOUGH of a time is critical. Wayne's got it all correct.

Plus you have to live in Kansas. Nyahh!!!

einreb · 04-16-2008, 05:51 AM

Quote:

Originally Posted by Porsche-O-Phile

Don't ever think you "own" the house. You don't. Until it's paid in full, the bank owns it - and owns you by extension.

You think you own it then? Stop paying property taxes.

Lovely house. This thread is much less sinful than that god awful M1 you were looking to buy.

onewhippedpuppy · 04-16-2008, 05:52 AM

Quote:

Originally Posted by Porsche-O-Phile

Plus you have to live in Kansas. Nyahh!!!

Hey, now you're hitting below the belt!

72doug2,2S · 72doug2,2S's Garage

What, no pics of the garage?

vash · vash's Garage

man wayne, your RE agent is way hotter than mine. i think you made a great purchase. the house looks GREAT!

jyl · jyl's Garage

Wayne, analysis and timing and forecasting is one side of life, and family plus spouse needs are another. You have to do the best you can to balance the two. You sold pretty well, and bought pretty well, and didn't push your wife too far - that's a good balancing act.

I had to do the same thing when I moved to Portland. No way my wife was going to move to a rental house. So I bit the bullet and bought, preparing to lose money - which I am.

the · 04-16-2008, 06:37 AM

LA is poised for a rebound!

nostatic · nostatic's Garage

analysis leads to paralysis. put down the slide rule Wayne...

Moses · 04-16-2008, 06:43 AM

I thinks Wayne's prior posts were a compelling argument against speculating in real estate, not a reason to rent rather than buy a home.

It's difficult to define the huge advantages of raising kids in a traditional family home. It's the place they will build a lifetime of memories. Hard to put a price on that.

Even in an overpriced market the decision to buy seems sort of basic to me.

1) Do you like the house?
2) Are you certain that circumstances will not make you leave the area any time soon? (Job transfers, etc can leave you in the red in a down market.)
3) Can you afford the home? (If you need an interest only loan, you probably should not be buying)

The decision to buy a home does not have to pencil out optimally for it to make good sense. As an investment, it may not be the most efficient use of your money, but it may be the best thing in the world for you and your family.

Congratulations, Wayne! Beautiful home.

Dueller · 04-16-2008, 07:07 AM

I'll second Moses' analyses. I've never viewed a home (as opposed to a "house") as an "investment" in the traditional sense. Especially when people who are "house rich" and broke otherwise think they're flush because their equity is substantial resulting in a distorted net worth. That type of thinking where homeowners used their front door as an ATM via HELOCs to fund lifestyles has gotten a lot of people in trouble.

Put down the MIT analysis and the spreadsheets, Wayne. Admit there are intrinsic benefits to your decision that cannot be quantified

Zeke · 04-16-2008, 07:18 AM

Heh, the interest only will help on your taxes. I guess the net costs will be pretty good.

I saw a pic of this house from Google Maps and it didn't look half as good as it does from the ground. Looks like a winner.

cgarr · cgarr's Garage

"I fully expected a bidding war to erupt, but for some reason,"

When you make an offer don't they have to accept or reject it before entertaining other offers? otherwise its like an auction, I didn't think they could just hold your offer out there waiting for others? this could take months!

futuresoptions · 04-16-2008, 07:36 AM

Buying when the market is in the tank seems to be the best time to buy..... I figure you to be a very smart man and one that is probably critical of his own decisions.... Whether or not you caught this house at the very bottom of it pricing cycle is a moot point in your situation with the family and all..... If value does drop in the near future it won't hurt that much because now (if you are renting) you are not investing in yourself. If this does happen the pendulum will eventually swing back and the investment side of this purchase may look a little more appealing and make you feel a little more positive about your purchase in those regards.... Just try to get a fixed rate mortgage that satisfies you and then fire up the pit and call us up!!!!..... Enjoy the new house Wayne!!!!