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xtn shares: I remember way back in high school, the feeling that I couldn't wait to become a stable, independent adult, because life would be so much easier. HAHAHA! Now I realize all the obligations and responsibilities I've created for myself chasing that "adult" life mostly just amount to high blood pressure..

Me, too.
Shedding the 'inculcated values' picked up from parents, classes, books/authors, friends... etc. has been relieving.

🙂
ralph
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Personally, with the likelihood of recession growing by the day, I am not a buyer at this time. Looking around me I see festivals cancelled or postponed, universities sending their students home, (but will they continue to pay their rent?) restaurants and bars empty. I am concerned about potential for default on mortgage putting us into another housing decline. I personally will let the dust settle a bit and see where the housing market lands, but my suspicion is lower. If you are not confident about your job, you will not be buying a house. Lots of small companies and businesses are likely to fail, IMO.

I also suspect you will not see a huge reduction in mortgage rates. It's already very low. This may wind up being the top of this housing market and you may see prices fall. It's a good time to have cash on hand, both in case you need it for an emergency, and to pick up a bargain if one comes your way. It will be some time before mortgage rates go back up.

This is my opinion, anyway. I am no future teller. Keep asking questions, look around and get to know exactly what you want to buy and track the prices. This way if you see a good deal you can pounce on it.

IP
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No. of Recommendations: 9
Im in my late 30s and my GF and I are in a position to buy our first home in a major metropolitan area.

I would strongly urge that you not buy a house with someone who you are not married to without a contact between the 2 of you spelling out things like:
- Responsibilities for mortgage, utilities, repairs, updates/improvements
- How to exit ownership
- What happens to ownership if one of you dies

For those who are married, your state law on marriages govern those issues. Those who are unmarried can find themselves in a big mess if something bad happens, and they don't have a contract spelling things out. Note - this goes for family members (siblings, parent/child, etc.) or friends who may want to purchase real estate together, also.

some information around what the recent Fed moves mean for home-buyers and what the current market instability might spell for the housing market and/or what signals to look for for a buyers market in the coming months and years.

Well, the long overdue recession is likely starting now. I'm not as down on real estate as IP is, but I would say you should probably wait a little while to see how things shake out. The Fed rate drop to 0% doesn't necessarily mean that mortgage rates are going any lower, but they could drop a little. If there is significant unemployment in your area, housing prices will likely start to drop some. It appears that this virus has shut down things more quickly than what occurred in 2007-08, but since the slowdown isn't based on housing issues, the housing market may not have to slow down as much. But when people start not being able to pay their mortgage or their rent, things can go bad quickly.

AJ
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Tremendously appreciated perspective thank you.
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Super helpful thoughts. Thank you
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I made the decision yesterday to pay off my remaining principle balance of approximately $335,000 in full yesterday. Wired the money and will have to wait a week for the Satisfaction letter.

The reason? Holding an insurance check made out to me AND the mortgage holder. Have to find and send in a bunch of paperwork to get them to endorse that check. Wiring them the payoff amount was less work.

Been carrying that loan about five years now. That's three of my four houses paid off. The last one has an $85,000 balance on a $450,000 house. I would pay it off too, except I'm afraid the mother-in-law tenant would think she could stiff me on the rent check if I didn't have the payment to make myself.

I don't really care about ups and downs in the market. I'll worry about it someday when I decide to sell I guess. Heck, if the market drops far enough, maybe I'll buy another house. That's a small maybe though, because I find property upkeep to be more trouble than it's worth. Also because I've had a dream about owning more properties and having completely forgotten I owned them. Stupid, but it sticks in my brain.

My future plans include selling them all and moving into an efficiency apartment, where somebody else does the mowing, the painting, the leaky faucet fixing, etc. My most favored assets, it seems as I age, are becoming peace and leisure above everything else. I remember way back in high school, the feeling that I couldn't wait to become a stable, independent adult, because life would be so much easier. HAHAHA! Now I realize all the obligations and responsibilities I've created for myself chasing that "adult" life mostly just amount to high blood pressure.

xtn
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I made the decision yesterday to pay off my remaining principle balance of approximately $335,000 in full yesterday. Wired the money and will have to wait a week for the Satisfaction letter.

The reason? Holding an insurance check made out to me AND the mortgage holder. Have to find and send in a bunch of paperwork to get them to endorse that check. Wiring them the payoff amount was less work.


I did the same thing last year when I had an insurance claim.

PSU
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xtn shares: I remember way back in high school, the feeling that I couldn't wait to become a stable, independent adult, because life would be so much easier. HAHAHA! Now I realize all the obligations and responsibilities I've created for myself chasing that "adult" life mostly just amount to high blood pressure..

Me, too.
Shedding the 'inculcated values' picked up from parents, classes, books/authors, friends... etc. has been relieving.

🙂
ralph
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