132

Because you don't have the jobs lined up, it makes more sense to rent for a few months for a couple of reasons: A: You should never deplete your emergency fund of 3 to 6 months for non-emergencies B: Once you land a job, you can make a better judgement as to where to live for the commute. C: Car loans and credit cards are expensive forms of debt that ...


80

The bank only cares about getting paid the owed amount as quickly as possible. Anything more than that the bank has to give to the owners whose property they're auctioning. Also, a house that could sell for $250k on the open market if the sellers wanted to sell and move out might be worth a lot less if the sellers don't want to move, might refuse to leave ...


76

Something sketchy is definitely going on. Real Estate agents are obligated under the National Association of Realtors Code of Ethics to take all written offers to the homeowners, regardless of how low it is unless the homeowner has specified a minimum offer amount or waived, in writing, that obligation. Your brother in law can ask for rejections in writing ...


75

The answer is really simple: if you don't want to own a house, don't buy one. (Especially if you're the sort of person who thinks 1800 sq ft (167 m²) is too much for one person.) Unless you have a lot of other itemizable deductions, the small tax savings is not worth the cost in lack of pleasure. Not to mention that, since you say you aren't interested in ...


70

You're making $100k together per year: you're not in the donut hole, you're in the top 25% of all households, and the top 10% of non-family households (as yours would be). To be blunt, you're not in the "rely on assistance" area: you're in the "save up for your downpayment" sector. My suggestion would be to figure out a way to save more than $200-$400 a ...


61

what I should think about. How much cash can you put toward a down payment? Anything less that 20% will significantly raise your mortgage amount. What if your roommates decide that they want to move again - will you sell the house or find new roommates? How strict on rent payment are you going to be with them? Will you give them more grace because they ...


57

You said that you figured the interest you will have paid over the first 3 years will be the same with the 15- and the 30-year mortgages. That is not quite accurate. Let's look at the numbers. From the monthly payment numbers you gave, it looks like you were figuring on a 4.0% rate. That seems quite high, as the current national average mortgage rates ...


56

This situation is the reverse: why would a seller require a cash offer? Is such a requirement fairly common, or a red flag? I can think of several reasons they could only be interested in cash offers. They want to sell/close quickly. They've been burned in the past when selling to someone using financing that fell through, and therefore will never do it ...


42

Based on the question update, the seller intends to declare bankruptcy, and in order to do so they must have a certain minimum amount of debt based on their income and assets. They must be currently hovering around the minimum debt mark, and if the house sells for too much their total debt will be slightly too low to still declare bankruptcy. They need the ...


41

It is highly unlikely that this would be approved by a mortgage underwriter. When the bank gives a loan with a security interest in a property (a lien), they are protected - if the borrower does not repay the loan, the property can be foreclosed on and sold, and the lender is made whole for the amount of the loan that was not repaid. When two parties ...


38

It doesn't feel savvy to offer without Conditions Precedent like Financing Condition, Subject to Appraisal Inspection, Legal Review, Survey. For the average buyer, those typical conditions are very important. But for a team of investors, they are handling many of these internally. The purpose of visiting the house before making the offer is to do an ...


37

There are often taxes (by whatever name) that scale with the property price. Agents’ fees are also often a percentage of the property price. These costs are usually a small but noticeable percentage of the total price. Aside from this, you’re mainly looking at the difference between what you get and what you pay. If you are buying and selling properties at ...


33

A mortgage is simply a loan backed by a property (and, because it's both very large and very common, covered by some specific laws). As such, the bank isn't an "investor" in your house; it simply is lending you money with the property as collateral. So, it doesn't get any share of the profit. As long as you sell the house on your own, for more than you ...


33

Does it make sense for me to keep the house Are you willing to be a landlord for $91 a month? What happens if your house goes unrented for 3 months? 6 months? How will you pay its mortgage? In my opinion, you don't have enough buffer to make this worth the risk. If you could afford for it to go unrented for 6 months then it might be a good investment in ...


32

@Adam Klump gave the advice I would personally follow, but I want to give a third possibility. I'm not from the US, but it seems to me that you don't have to buy the house outright in cash, you still have the possibility to take a loan. You'll still be able to pay it off whenever you want, and may be able to negotiate low interest rate and have the money ...


32

Other answers advise you to get legal advice, and I agree that doing so would be advisable. In an ideal world, I presume you'd each like to contribute equally and own a 50% share of the house at all times. So let's make it happen! For simplicity in this answer, I'm going to assume some numbers. Let's say you're buying a £350,000 house. You have £100,000 to ...


31

"...instead of all of us draining our money into a landlord..." Instead, you are suggesting that still everyone (except you) will drain their money into a landlord, just that now the landlord is you. I guess what that really means is that you will need to have landlord tenant agreements between you and your roommates. When things break or need replacing ...


28

Since your primary obsession seems to be "paying less taxes" as opposed to having more spendable income. You could do one of the following. Earn less by working less/part_time. Give to charity. Invest in a money-losing business. Have non-insurance-covered but tax-deductible medical procedures performed on you. Or you could just take pride that ...


28

You are saving 44.7% of your income for retirement and living like a miser as a result, so the question I propose is simply, "Why?" I must admit that the allure of financial security in retirement is very nice, and can seem worthy of extreme sacrifice to attain. However I believe, as I think you are now coming to realize too, that buying future ...


24

As Patrick87 cogently points out (+1), anything more than the outstanding debt on the property being foreclosed on (plus various fees for filing the foreclosure paperwork etc) belongs to the original owner (the person(s) being foreclosed upon), and not the bank. Remember also that the bidding starts at the price the bank sets, and the bank can choose to ...


24

You are overlooking the real cost of automobiles People have a strong tendency to wildly delude themselves about the true, total costs of automobiles. AAA tallies up the total, real ownership cost of a reasonably recent car. It came out to $8,841 last year for a 15,000 mile/year car, with SUVs pulling up the average. You didn't say where you aim to ...


23

That seems a very bad offer, it borders on fraud. In the current US economy, you should be able to get between 3 and 4 % APR (and that number is what you should look at). That means that for $300,000 over 30 years, you'd pay $1,265 to $1,432 per month. If you are able to pay more than that monthly rate, you should go for less than 30 years - 20, 15, 10, ...


23

Home ownership doesn't necessarily improve your tax situation. Many homeowners no longer itemize deductions because of the increase to the standard deduction. You'd have to figure how close you are to itemizing without owning a home to calculate the net tax advantage of owning. There's also a capital gains exemption when selling your primary residence that ...


22

Assuming United States As far as "Will they will allow you to do that?" Of course! (How do you think renters get utilities?) As far as the responsibility to pay, that's up to you. If you are setting things up like that to prevent being swamped with bills which your girlfriend has no legal obligation to pay, that would work. However, if something were to ...


22

He needs to go see a lawyer to find out what all his options are, and the consequences of any of them. Then he needs to get help extricating himself from this situation, in whatever fashion he chooses: buyout, giveaway, what have you. This situation involves property, which involves money, so definitely get professional advice on this. Otherwise, 20 years ...


21

You can't do it all. This is why I dislike "put everything in your 401k!" advice: it ignores the reality that there are things other than retirement which are worthwhile to spend money on .


20

You are going to need a lawyer anyway so check with him. But here is a path you might be able to go down. Put the house in your name right from the get go. He gives you the money but you sign over a promissory note to him so that you net less than $14000 (gift tax annual exclusion for the calendar year). He can gift everyone in your household 14k per ...


19

Is all interest on a first time home deductible on taxes? What does that even mean? If I pay $14,000 in taxes will My taxes be $14,000 less. Will my taxable income by that much less? If you use the standard deduction in the US (assuming United States), you will have 0 benefit from a mortgage. If you itemize deductions, then your interest paid (not ...


19

I will expand on Bacon's comment. When you are married, and you acquire any kind of property, you automatically get a legal agreement. In most states that property is owned jointly and while there are exceptions that is the case most of the time. When you are unmarried, there is no such assumption of joint acquisition. While words might be said ...


19

Is my calculation correct? More or less. Your list of expenses is not complete and repair/maintenance expenses can vary wildly. You'll also depreciate the house (not the land), so with your current numbers you could be running a loss for tax purposes which can offset income tax on other income and basically act as a discount to your cost of equity, so ...


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