am buying my first property. anyone who owns their own home?

[#1baller]

[quote="musika man"][quote="#1baller"][quote="Ismahan445"]bad move my friend...but it depends on the area your buying. If I were you, I would own a home with that amount, renovate and then sell for more or keep.[/quote]


I don't think its a bad move. If he buys a condo within a metropolitan city then that is a great investment. Remember there's always single professionals who will buy these units once it's located within a metropolitan neighbourhood. [/quote]

^^^

on the ball baller. am still single and this property is on the water front. it is a 2 bedroom condo and my uncle was selling on behalf a bank.

Musika,

That sounds like a bank foreclosure. Is that tha case?

[zulaika]

be careful....be extra careful before u sign on the dotted line in that "dead pledge" called mortage. a lot of folks fell for the hype of the extra hot real estate market of recent days and ended up borrowing trouble with the low to next to nothing down payment banks been luring customers in. good credit rating don't always avail one with the means to meet payments, it only opens doors that for some is at times very very very difficult to close.... and as a result, the US is facing the largest foreclosure numbers its ever seen. can u imagin making all those payments every month and when life hits u hard and u miss few payments on time and booom there goes your investment, your equity and home coz lenders know no mercy and will sieze it all.

[Lord Diplock]

[quote="zulaika"]be careful....be extra careful before u sign on the dotted line in that "dead pledge" called mortage. a lot of folks fell for the hype of the extra hot real estate market of recent days and ended up borrowing trouble with the low to next to nothing down payment banks been luring customers in. good credit rating don't always avail one with the means to meet payments, it only opens doors that for some is at times very very very difficult to close.... and as a result, the US is facing the largest foreclosure numbers its ever seen. can u imagin making all those payments every month and when life hits u hard and u miss few payments on time and booom there goes your investment, your equity and home coz lenders know no mercy and will sieze it all. [/quote]

When the banks in the US reposses a property, presumably they will sell it and after paying off the mortgage, you will be paid for your equity in the property, otherwise, it seems to me, one is just throwing away his/her money by saddling himself/herself with a mortgage payment for years. As I understand it, the first few yrs or so, the mortgagor is paying just the interest on the loan mortgage and the real pay off of the bank's loan (money) starts later. so, lets say, I took a mortgage of a property for 200,000 over 25 yrs. After 8 yrs or so, I have paid something equilavent to 50,000 dollars but I am now financially in deep sh*t and the bank sought an order for repossesion and win. also, the value of the property has gone up abit, let say to 240,000 dollars. so, how much am I entitled to paid? 90,000 dollars (240,000-200,000 plus the 50,000).

[#1baller]

[quote="zulaika"]be careful....be extra careful before u sign on the dotted line in that "dead pledge" called mortage. a lot of folks fell for the hype of the extra hot real estate market of recent days and ended up borrowing trouble with the low to next to nothing down payment banks been luring customers in. good credit rating don't always avail one with the means to meet payments, it only opens doors that for some is at times very very very difficult to close.... and as a result, the US is facing the largest foreclosure numbers its ever seen. can u imagin making all those payments every month and when life hits u hard and u miss few payments on time and booom there goes your investment, your equity and home coz lenders know no mercy and will sieze it all. [/quote]


zulaika,

you make a very valid point. I mean the key is to have a "figure" in mind when you make the decision to get into home ownership. Case and point I was pre-approved for my mortgage before i bought my house and the bank told me that I could get more money if I needed be but I had a set amount in my head about how much I was willing to pay for my house and stuck by it. Some people get a bit carried away and buy a much bigger home because the bank offered them more money than what they may have been pre-approved for. Sometimes real estate agents contribute to that problem as well. They tell you why buy this house when few a few more $$ you could be in a much bigger home. Never fall for that.

[#1baller]

[quote="Lord Diplock"][quote="zulaika"]be careful....be extra careful before u sign on the dotted line in that "dead pledge" called mortage. a lot of folks fell for the hype of the extra hot real estate market of recent days and ended up borrowing trouble with the low to next to nothing down payment banks been luring customers in. good credit rating don't always avail one with the means to meet payments, it only opens doors that for some is at times very very very difficult to close.... and as a result, the US is facing the largest foreclosure numbers its ever seen. can u imagin making all those payments every month and when life hits u hard and u miss few payments on time and booom there goes your investment, your equity and home coz lenders know no mercy and will sieze it all. [/quote]

When the banks in the US reposses a property, presumably they will sell it and after paying off the mortgage, you will be paid for your equity in the property, otherwise, it seems to me, one is just throwing away his/her money by saddling himself/herself with a mortgage payment for years. As I understand it, the first few yrs or so, the mortgagor is paying just the interest on the loan mortgage and the real pay off of the bank's loan (money) starts later. so, lets say, I took a mortgage of a property for 200,000 over 25 yrs. After 8 yrs or so, I have paid something equilavent to 50,000 dollars but I am now financially in deep sh*t and the bank sought an order for repossesion and win. also, the value of the property has gone up abit, let say to 240,000 dollars. so, how much am I entitled to paid? 90,000 dollars (240,000-200,000 plus the 50,000).[/quote]

Lord Diplock,

No disrespect but its alot different in America. It doesn't quite work that way. If that was the case then the homeowners who lost their homes to bank foreclosures would have some $$ in their pockets but that isn't the case as far as foreclosures are concerned.

[zulaika]

ballar,

the lending industry is full of trappings and it was designed to squeez maximum capital out of anything they lend so in turn one should maticulously read through any mortage contract they are about to sign and all of its finely printed clause.

i have not purchased a home yet(still in the saving stages) and when i do which is prolly after i get married i will not opt for the banks because of the interest which is not premitted in our faith so i will trail through other avenues(islamically)..and thankfuly there are such lenders where i live, only downfall to it is that they ask a huuuuuuuuuuuuuuuuuge down payment up front and that is what i've been saving up for since the day i started earning a decent salary. i'll combine what i have currently with that of my future husband and bang..i think i can pretty much meet damn asking price half way.

diplock,

i personally know few people who have gone through the "foreclosure" ordeal and trust me, they did not get a dime back from the banks..in fact, they were hit with a breach of contract fee in the thousands. ouch!!

[Lord Diplock]

Thank goodness, it is different in this country (England) and the old court of Chancery will not permit the greedy banks to keep any surplus monies after they get their money back.

[#1baller]

[quote="zulaika"]ballar,

the lending industry is full of trappings and it was designed to squeez maximum capital out of anything they lend so in turn one should maticulously read through any mortage contract they are about to sign and all of its finely printed clause.

i have not purchased a home yet(still in the saving stages) and when i do which is prolly after i get married i will not opt for the banks because of the interest which is not premitted in our faith so i will trail through other avenues(islamically)..and thankfuly there are such lenders where i live, only downfall to it is that they ask a huuuuuuuuuuuuuuuuuge down payment up front and that is what i've been saving up for since the day i started earning a decent salary. i'll combine what i have currently with that of my future husband and bang..i think i can pretty much meet damn asking price half way.

Zulaika,

Why do you think the banks are in business? Why do you think lending companies are in business? Why do you think anyone period goes into to business? It's simple....to make huge priofits. You can't get away from it... unless you're stacked like these hollywood broads that have absolutely zero regard for money.

Granted your right about mortgage contracts but that's the reason why you hire a good lawyer first and foremost. You pay them the bucks to look at everything and I mean EVERYTHING as far as contracts are conscerned. I would not sign anything at the spur of the moment ...that's just me.

In my situation I put 25% downpayment on my house. Of course some banks offer you the no money down option based on your credit score and what you can afford but I didn't opt for that and I will advise anyone who is considering home ownership to never take that route. There's many good reasons which I will not get in to right now. Suffice to say in your case, I think you're doing the smart thing by saving up for decent sized downpayment for a home. IMO it's pointless to put 5% down because that esentially is just useless and leads to higher motgage payments but I can't condemn some for doing it because I don't know their financial situation.

One thing tho...don't wait to get married before buying a home unless you know exactly when you will be. I did it all myself and granted it was a huge responsibilty but I had an idea of what it would be like. I was fortunate in that my parents fully paid my school tuition all through college and I had no student loans to pay back after I was through schooling. I saved my money and that enabled me to get into home ownership. I look at it as the best decision I've made so far in my life. Not saying its the easiest thing because god knows my heating bills soared this winter but I'm okay because I have made som adjustments. The biggest thing is never just be working to pay your mortgage. It happened to a friend of mine. He's trapped. He can't take a holiday or buy a car because he's working to pay his mortgage with little left over. His house costs $70,000 more than mine but I told him to sell it and get something more affordable.

Bottomline, in your case you should look sooner rather than later. Don't wait for a husband. Always have a back up plan when you buy a house or a condo. Realistically most of us think that we cannot lose our jobs but nothing is etched in stone. Make sure you have a reserve fund to cover emergency expenses for a yr or two should you happen to lose your job. That's the biggest reason for people losing their life's dream.

[#1baller]

[quote="Lord Diplock"]Thank goodness, it is different in this country (England) and the old court of Chancery will not permit the greedy banks to keep any surplus monies after they get their money back.[/quote]


Aren't you glad you live in the UK? You'd be fresh out of luck if your lost your home in North America

[zulaika]

baller,

i feel what u are saying about the marraige part. however it is part of my plans right now, its not like i'm waiting someday or something. i'm getting hitched soon and the plan i've made for home ownership is one that i've already reconciled with my marraige plans and dual income strategy. and i most deffinitely agree with the saving for a rainy day notion...people don't seem to grasp just how imprrative this is and that is why so many take it so lightly. i wouldn't say i have enough to last me for an entire year but i'd say enough of 3 month(that's the best i can do presently with my bills and stuff), the rest is covered with an income loss insurance that is an extention on my car insurance. so if i lose my job, they cover me for an already negotiated amount that would also cover my car isnsurance for a certain period of time. and of course i should mention E.I.(employment insurance) but this is a government(Canadian) thing for lost work through no fault and may not be reliable always coz some lose their jobs by their own account..(not that i'm saying i'll lose my jobs on my own account.lol)

basically there are plenty of ways to put up saftey nets besides just putting money away.

[e!]

[quote="#1baller"][quote="musika man"]a condo worth $287,750. my dream is when am 40 years old to own a mansion.

most somalis are content living in a ghetto cheap project housing and buying expernsive cars and furniture. if you don't own your own home, you are a begger. don't breed and plan a family in such projects.[/quote]


Congratulations bruh!!!!! Owning a piece of real estate is always a good investment for the future. I know... I purchased my house in Jan 2006 and I was so excited when my house was completed and I got my keys. When I was single...I thought about buying a condo also... but I ended up buying a new home instead.

If I were single now I'd buy the condo but I'm glad I bought a house because pretty soon I'll be having a new addition to my household this summer. You guessed it.....I have a baby on the way.

congratulations musika man....ya doing big thangs!! [/quote]


ummm.....ur not married and u have a kid on the way......Is it from that somali girl