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Housing Regrets

March 24th, 2012 at 12:35 pm

To recap my situation, I bought my current house in November 2007 for 231,400. I put down 20% + closing, + had to make repairs out of pocket.

I feel regret pangs when I see what my home is worth today. It isn't so much the loss in value, it is the knowledge that had I waited a few years to buy, I could do so much better today.

Look at this place, in a very nice area:

http://www.ziprealty.com/property/1804-CASHMERE-DR-MODESTO-...

Isn't it cute? It is the same size as mine now, with a smaller lot, in a better school district, with a community pool. 97k!!! If I were buying that today and putting the same amount of dollars down, I would have a mortgage of 51k. I would take a 15 or 10 year note, have smaller payments than I currently have, and be done paying YEARS sooner.

What a huge difference that would have made in my retirement plans!

Since time travel is regrettably not possible, there is nothing I can do about that. But I ponder, what CAN I do? Is there some way I can benefit from today's low home prices + low interest rates? Is there an opportunity here for me to add to my modest nest egg?

I am toying with the idea of seeing if I can qualify for an FHA loan, buy a house for 100k or so, rent out my current home, and wait for the day I can sell for enough to get out from under. FHA has a 3.5% + closing down 30 year fixed loan. I would have to pay PMI. I would need to scrape up 7k or so, which would have to come from a retirement account.

Of course, I would have to take a 30 year loan on the new place, not a nice 10 year loan. But the payments would be half of what I pay now. That is the advantage I see. The disadvantage I see is....I don't enjoy being a landlord.

In other news...I had another $2.43 available in my Lending Club account. I transferred and chipped it. I have less than $5 still owed to me, so Lending Club chips are approaching the end.

I sold a gift card on Plastic Jungle for $20. When I receive the check, I will chip that too.

4 Responses to “Housing Regrets”

  1. Looking Forward Says:

    There are thousands of people who I am sure feel just like you. Frown
    Do you really feel like you could afford two houses if the renters didn't pay like they should?

  2. snafu Says:

    None of us have a crystal ball, so you may feel disappointed now but if you take the positive view, presume values will inch upward...just enjoy your home. So many who were upside down on their mortgage found themselves foreclosed, forced to move and left with huge debts.

    Have you run the figures for a re-fi to bring down the interest rate? Due to the way amortization tables work, you can cut years off your mortgage with regular, small extra payments directly off your principal.

    If you have experience as a landlord, you know it can be a rollercoaster ride.

  3. crazyliblady Says:

    I have similar pangs about our house we bought in 2010. Not about the value, but about things I did not know the look for because I had never bought a house before. Even though the home inspector said everything was fine, the mortar is in really bad shape in some places which we understand can cause severe structural problems. We have had the very worst parts fixed, but we still have more to get fixed. I will definitely know to look for that if I ever buy another house. If I had known, I would have bid about $5000 less than what I did. We did avoid buying several other lemons (mold inside and on the outside walls, houses with holes in the floors, warped floors, cracks in walls, ceilings, and foundations). I am so glad we only looked at those and didn't try to buy. I don't regret buying our house, but just wish I would have known.

  4. Petunia 100 Says:

    Well, after fretting over this for several days, I have concluded it would only be worth considering if I had more cash on hand. Cash to put down, cash to tide me over in the event my rental income is interrupted, cash to pay for unexpected home repairs. Cash, not my little retirement nest egg.

    And I don't have the cash. So for now, no.

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