Buying a House
Why not just write a book? Will probably take that long but you got to start somewhere. Also, been thinking about it a lot lately as Marc closes on his first (he's only 25) house this afternoon. I have become convinced that house purchases depend on 1) your career path, 2) your geographic plans, 3) the georgaphic market you are considering buying in right now 4) the market you move into, 5) the career field you are in and finally, the amount of money you currently make.
Those were thrown out in no particular order so I'll take on number 3 right now and tackle the rest later. Where you plan to live will severely impact your choices and your pricing. I was at a presentation by my financial advisor and the inevitable question about houses and bubbles came up. His short answer was that if you live in Florida or Las Vegas or want to buy in those areas, there is a bubble. If you lived in the New York, Chicago, or San Francisco areas there was not a bubble. Maybe an overly stimulated market but not a bubble.
Why? Because in New York, Chicago, and San Francisco you are basically buying land. As Will Rogers said--buy land, they're not making any more of it. Well, you can buy land in any of these cities but if you buy land in certain areas you will probably be robbed, if not killed. You want, and so does everybody else, 'good land.' And good land is found in good areas and everybody knows where they are so the prices are high. Westchester, Darien. Glencoe, Winnetka, Kenilworth, Wilmette. Burlingame, Mountainview, San Mateo, Menlo Park. You will buy a piece of junk for a lot of money but if you stay long enough you will get your money back and probably make some. Really expensive to get in but once you get in you ride the escalator. Maybe, maybe not but the odds are in your favor.
What if you want to live in Las Vegas or Florida or Texas or New Mexico or Iowa or Colorado? Well, first there is plenty of land and lots of it is 'good land' and lots isn't but you have more choice, no doubt. There are always the good parts of town but there will be more good parts than bad parts which means more choice which means more reasonable prices. This isn't a revelation but a fact. A 1, 500 square foot three bedroom, two bath house in San Mateo is close to or over a million. And it is seventy five years old with seventy five year old problems that cost money. In Shreveport, La. a two year old three bedroom, two bath costs $150,000 because that is what Marc is buying today.
So pick your place but be ready to pay for the privilege of living there if it a place with limited 'good land.'
More later.
I'm looking at rental property to buy. What do you think about duplex or single home to purchase?
Posted by: Hustlermoneyblog.com | December 01, 2006 at 08:03 PM