Confession
I've rented since graduating from college. I personally became free of debt two years ago.
I've been an avid lurker of this blog for the past year. When I moved back to Seattle from Ohio two years ago I was in sticker shock. I had only moved away for a few years and was shocked at what had happened to home prices. I've used this blog to help convince my wife to wait on the purchase of a home.
Now for my confession. I purchased a home last week, we close in approximately 20 days.
I realize prices are dropping. For me personally, I believe I found a house that I can finally look at and feel good about the money I'm spending. My monthly payment is going to go up, while at the same time I finally get a front and back yard, a place to work on projects, a garage, a place to settle down, and a multitude of other personal reasons.
Luckily, I also plan on living here a long time. I realize that if I lose my job, and the economy is wiped out that I only have 6 mos of savings in the bank to protect me. I will say that I am still able to continue to save a decent amount of money, and I plan on continuing to increase my reserves.
Anyway, I realize that this goes against the grain of what this board preaches. I don't disagree with anything you folks say.
The fact is as of now, I'm in. I feel good about it. But, as of now I am going to stop following the market until I need to. I realize prices are going to continue to fall. If, for some reason I need to within the next 5-10 years and end up paying the bank... I made the decision and will get what I deserve.
Thank you everyone, I've enjoyed reading this blog.
I've been an avid lurker of this blog for the past year. When I moved back to Seattle from Ohio two years ago I was in sticker shock. I had only moved away for a few years and was shocked at what had happened to home prices. I've used this blog to help convince my wife to wait on the purchase of a home.
Now for my confession. I purchased a home last week, we close in approximately 20 days.
I realize prices are dropping. For me personally, I believe I found a house that I can finally look at and feel good about the money I'm spending. My monthly payment is going to go up, while at the same time I finally get a front and back yard, a place to work on projects, a garage, a place to settle down, and a multitude of other personal reasons.
Luckily, I also plan on living here a long time. I realize that if I lose my job, and the economy is wiped out that I only have 6 mos of savings in the bank to protect me. I will say that I am still able to continue to save a decent amount of money, and I plan on continuing to increase my reserves.
Anyway, I realize that this goes against the grain of what this board preaches. I don't disagree with anything you folks say.
The fact is as of now, I'm in. I feel good about it. But, as of now I am going to stop following the market until I need to. I realize prices are going to continue to fall. If, for some reason I need to within the next 5-10 years and end up paying the bank... I made the decision and will get what I deserve.
Thank you everyone, I've enjoyed reading this blog.
Comments
And it might be best to focus on that positive part of it; I think your idea of not watching the market is the right thing to do. It makes people qwazy! :twisted:
Have fun!
The tone of the comments recently posted on The Housing Bubble Blog (http://thehousingbubbleblog.com/?p=3785) especially just got to me. It's the gloom & doom: the financial markets, the housing markets, unconsidered materialism... it's america.
I know I will not be able or willing to buy a house in the next (at least) two years here in Seattle. It just doesn't make sense. I've got some modest savings, no debt, and maybe I'll go back to the spiritual work I'd been doing on myself before I took this foray back into "real life".
My friends, all of this is quite depressing. Paying Attention to this is the prudent thing to do, but it's so easy to get sucked into it. Call it armageddon-fatigue.
These are very interesting times to be alive. And scary. But I'd rather have my spirit in a good place, hopefully ready to weather anything thrown at us, than make myself, yes, qwazy.
Zzzt.
:twisted:
You are a **lot** better off than the average American.
Good luck!
You can profit from doom and gloom you know that right? I own a lot of contrarian investments, I wait up every morning look for stock market crash. I am super cheerful lately.
You made the decision that was right for you, and that's the most important thing.
As Tim said in the KOMO post:
You made the decision that was right for you. You are aware of the risks involved and have taken precautions. Enjoy your home.
Here's the checklist to see if people on this forum will mock your decision to buy.
1) Have you acknowledged it is not an investment? IE, it may be worth less in $$$ in 5 years than it is today, and it may never be worth the same real value (inflation adjusted) it is today.
2) Can you afford the payments?
3) Does it meet your needs? Not too far from work, neighborhood you want to live in, etc.
In short, is it an emotional/financial/physically sound decision? If you answer yes to all of the above, then now is a fine time to buy.
Frankly, if people had asked the same questions the last 5 years we wouldn't be in this mess in the first place.
You took a calculated risk, when you were comfortable with taking it. I'm sure many, if not most, here are not much different. You found exactly what you wanted, at a price that was not breaking YOUR bank.
I have no problem being patient, and do not have the resources you seem to have, so I do not have the freedom to act differently.
Enjoy.
I'm even more cynical than I thought.
I'm assuming he went with <5% down on a stated income jumbo IO ARM like Matt over at urbnlivn. Then again, Matt's made it clear that he plans on heading back to Canada if the market kills his investments here.
It is still going to hurt seeing my savings balance drop
Anyway, thank you for the comments above. I struggled with the decision, believe me.