Buy house or nsx first?

[FrEsHaZzBuRu]

California (still hot) *snip* I still see insane appriciation in those states

Please tell me what county in CA you are referring to so that i can buy some of these "insanely appreciating" real estate properties.

For most counties in Northern CA, for every house listed, there is a house reduced in price, which, for us in the real estate business, is not a very good sign. The trend scatters outward statewide. Even the HOT bay area market has crashed.

Forclosures in CA have also significantly risen.

Right now, *I* think it's best to wait a year or so for the houses to hit bottom and purchase as the market and rates show a definite change. Even though it's a buyers market out there, it doesn't mean it's the right time to buy.

The only property i would consider buying is one which, as others have mentioned, would be a long term investment. 5/1 (5yr fixed) ARMs are the cheapest priced to this date which would be ideal for purchasing property FOR MOST scenarios. After 5 years the market should stabilize and rates should decrease where a 30 year fixed would become a better option again. But i'm no fortune teller so research your market and get together with a financial planner to choose the wisest path for investments.

 

[coolnsx]

Please tell me what county in CA you are referring to so that i can buy some of these "insanely appreciating" real estate properties.

I think you would find the sales have slowed in Orange County but the sales prices have not dropped (yet?). Especially the the high end where the sales still seem brisk, it might be the folks with money will continue to buy. We just sold a spec house in 92679 for the highest sales price to date FYI. But it is certainly not like it was in the past where you beat the buyers back from your front door IMO.

 

[Ski_Banker]

HOUSE! Should be a no brainer and this is coming from a mortgage broker.

LOL... no brainer and mortgage broker in the same sentence. Funny because I do private equity and have a *pretty good idea* of the benefits and dangers of leveraged finance too. A lot of people, that don't have quite such a good idea of lev fin/asset valuation/volatility, are going to find themselves in a world of hurt because folks like you convinced them to buy over-the-top houses using exotic mortgages "to keep the monthly payments down."

You mortgage brokers, as an industry, are dirtier than anything on Wall St since...I dunno...1934?

 

[darknezz_ghost]

BUY THE HOUSE FIRST, you'll never be sorry and you can't live in an NSX :biggrin: Also the house will go up in value, the NSX won't.

agree..

 

[Vendetta]

Please tell me what county in CA you are referring to so that i can buy some of these "insanely appreciating" real estate properties.

For most counties in Northern CA, for every house listed, there is a house reduced in price, which, for us in the real estate business, is not a very good sign. The trend scatters outward statewide. Even the HOT bay area market has crashed.

Forclosures in CA have also significantly risen.

Right now, *I* think it's best to wait a year or so for the houses to hit bottom and purchase as the market and rates show a definite change. Even though it's a buyers market out there, it doesn't mean it's the right time to buy.

The only property i would consider buying is one which, as others have mentioned, would be a long term investment. 5/1 (5yr fixed) ARMs are the cheapest priced to this date which would be ideal for purchasing property FOR MOST scenarios. After 5 years the market should stabilize and rates should decrease where a 30 year fixed would become a better option again. But i'm no fortune teller so research your market and get together with a financial planner to choose the wisest path for investments.

You're used to the values in California appreciating quite nicely. Compare that to Michigan or Ohio (where I'm at) and you'll agree appreciation in California is "insane" compared to some other states. Of course it's down right now and everything has a cycle. That's where the buyer has to be smart in his/her homebuying decision.

LOL... no brainer and mortgage broker in the same sentence. Funny because I do private equity and have a *pretty good idea* of the benefits and dangers of leveraged finance too. A lot of people, that don't have quite such a good idea of lev fin/asset valuation/volatility, are going to find themselves in a world of hurt because folks like you convinced them to buy over-the-top houses using exotic mortgages "to keep the monthly payments down."

You mortgage brokers, as an industry, are dirtier than anything on Wall St since...I dunno...1934?

Your stereotyping comment shows who's "dirty" and who's not.

First of all you claim I convince people to buy over the top houses and use exotic mortgage programs. I do NOT reccommend option ARMS and other "exotic" mortgages to ANYONE. I put people in programs that will only help them in the future but since you know me (and all mortgage brokers) so well, I guess you're right about everyone you stereotype. Not all of us put people in upside down situations you know? There are some of us who actually like to help people and have guilt when wrong is done.

I've been doing this on both sides of the business...lender and originator and I've been in the business for years. I have a pretty good referral base (99% of my business is referrals) so I MUST be real dirty and shady huh? So dirty that people reccommend their friends and families to me.

There are people out there who have poor credit and cannot walk into a bank and get a loan you know? Where do they turn when they need a mortgage? Not everyone can buy a house with cash and it's even more difficult for people who don't fall in the prime market. Those are the people we help out....doesn't neccessarily mean all of us crack them with fees. Not everyone lives in South Beach like you do, there IS a subprime market believe it or not and they need to buy homes too.
Not everyone in the same profession works the same ways so grow up and quit stereotyping. Boy would I hate to hear your take on races and other stereotypically sensitive subjects.

 

[coolnsx]

You're used to the values in California appreciating quite nicely.
You are correct, it is NUTS in SoCal, the weather is great but how high can it go? Unless the economy tanks I don't think it will slow down.

 

[oscar_driver]

Buy the house, i've been around this forums since forever and visit this site almost everyday just to see other owners NSX's, other dudes happyness etc etc .. I LOVE NSX"S since i'm kid and i'm 29 .. but buying a house is more important both as investment and piece of mind, just do what i did, Buy the house then buy a S2000 and you'll really happy,.... happy enough to wait 3 more years and have more $$$ and also chances of getting a 97+ NSX .. seriously, i could buy a 25-30K Nsx with 100+K miles but i got a 15K miles S2000 for a bit less than 20K and is a great little car, still got my prelude and i couldn't be more happy (still want to own or even drive a NSX sooo bad though LOL)

Oscar

 

[JAYS NSX]

It sounds like you need to speak to a financial advisor, not a bunch of car junkies!

You need to evaluate your short and long-term goals both personally and financially. You need to see where each decision will lead you towards or away from these goals. Once you have all this mapped out, you can make the decision that best fits your needs.

 

[swbatte]

It sounds like you need to speak to a financial advisor, not a bunch of car junkies!

You need to evaluate your short and long-term goals both personally and financially. You need to see where each decision will lead you towards or away from these goals. Once you have all this mapped out, you can make the decision that best fits your needs.

This is the best advice to date!

 

[Deltron Zero]

I've got a friend that's taking out 60K in equity to buy a NSX and a truck. I'm kinda worried about him.

 

[NSX-GUY]

To all of you that just shout out "House - no brainer" I might bring to your attention the line in the thread starter's first post where he said "I want to buy a home with the intention of selling it after two years after it appreciates.

Those that were paying attention to that gave the guy some very good advice (and options). :wink:

 

[NSX-GUY]

You're used to the values in California appreciating quite nicely. Compare that to Michigan or Ohio (where I'm at) and you'll agree appreciation in California is "insane" compared to some other states. Of course it's down right now and everything has a cycle. That's where the buyer has to be smart in his/her homebuying decision.




Your stereotyping comment shows who's "dirty" and who's not.

First of all you claim I convince people to buy over the top houses and use exotic mortgage programs. I do NOT reccommend option ARMS and other "exotic" mortgages to ANYONE. I put people in programs that will only help them in the future but since you know me (and all mortgage brokers) so well, I guess you're right about everyone you stereotype. Not all of us put people in upside down situations you know? There are some of us who actually like to help people and have guilt when wrong is done.

I've been doing this on both sides of the business...lender and originator and I've been in the business for years. I have a pretty good referral base (99% of my business is referrals) so I MUST be real dirty and shady huh? So dirty that people reccommend their friends and families to me.

There are people out there who have poor credit and cannot walk into a bank and get a loan you know? Where do they turn when they need a mortgage? Not everyone can buy a house with cash and it's even more difficult for people who don't fall in the prime market. Those are the people we help out....doesn't neccessarily mean all of us crack them with fees. Not everyone lives in South Beach like you do, there IS a subprime market believe it or not and they need to buy homes too.
Not everyone in the same profession works the same ways so grow up and quit stereotyping. Boy would I hate to hear your take on races and other stereotypically sensitive subjects.

Can't say I didn't see THIS one coming !!! :biggrin: :biggrin: :biggrin:

Main Entry: <SUP>2</SUP>stereotype
Function: noun
Etymology: French stéréotype, from stéré- stere- + type
1 : a plate cast from a printing surface
2 : something conforming to a fixed or general pattern; especially : a standardized mental picture that is held in common by members of a group and that represents an oversimplified opinion, prejudiced attitude, or uncritical judgment


In other words, generalizing, which is what SB did. And, in general, I would probably agree.

Maybe YOU don't do things but your industry, in general, does IMHO. He never said YOU convinced people to buy "over the top houses and use exotic mortgage programs" but your industry, in general, does IMHO.

The fact that you can originate a loan for somebody doesn't mean they should get it now, does it ? And most of the time you know it as well. You do not recommend "exotics" but if your client cannot qualify for anything "better" and wanted you to get him/her one, would you ? Or would you turn away the business ?

As for your "referral base", and using it as proof you do a good job, if *I* personally made a investment that went wrong because of the mortgage vehicle I got myself into I seriously doubt I would blame the mortgage broker for it and subsequently, if asked who/where I got my mortgage, I would gladly recommend the mortagage broker (you) for your prompt, courteous and professional service. :wink:

Anyway, I think you took SB's generalization too personally. I also think he was a bit heavyhanded.

So how 'bout you 2 ladies both lighten up a bit and kiss and make up ?!?!?! :biggrin: :biggrin: :biggrin:

Life's too short, ya know ? :wink:

 

[Vendetta]

Can't say I didn't see THIS one coming !!! :biggrin: :biggrin: :biggrin:

Main Entry: <SUP>2</SUP>stereotype
Function: noun
Etymology: French stéréotype, from stéré- stere- + type
1 : a plate cast from a printing surface
2 : something conforming to a fixed or general pattern; especially : a standardized mental picture that is held in common by members of a group and that represents an oversimplified opinion, prejudiced attitude, or uncritical judgment


In other words, generalizing, which is what SB did. And, in general, I would probably agree.

Maybe YOU don't do things but your industry, in general, does IMHO. He never said YOU convinced people to buy "over the top houses and use exotic mortgage programs" but your industry, in general, does IMHO.

The fact that you can originate a loan for somebody doesn't mean they should get it now, does it ? And most of the time you know it as well. You do not recommend "exotics" but if your client cannot qualify for anything "better" and wanted you to get him/her one, would you ? Or would you turn away the business ?

As for your "referral base", and using it as proof you do a good job, if *I* personally made a investment that went wrong because of the mortgage vehicle I got myself into I seriously doubt I would blame the mortgage broker for it and subsequently, if asked who/where I got my mortgage, I would gladly recommend the mortagage broker (you) for your prompt, courteous and professional service. :wink:

Anyway, I think you took SB's generalization too personally. I also think he was a bit heavyhanded.

So how 'bout you 2 ladies both lighten up a bit and kiss and make up ?!?!?! :biggrin: :biggrin: :biggrin:

Life's too short, ya know ? :wink:

I agree with your professional and mature standpoint 100%.
There are bad apples in EVERY profession but when someone links the term "no brainer" directly with my profession and says "folks LIKE YOU convinced them to buy over-the-top houses using exotic mortgages ", that's a little general. Like I said, there are bad apples in every profession and it doesn't mean I make such practices.

I got out of the lending side of the business because I dealt with shady brokers all day and I believed there should be more people on the origination side that is a little more helpful to the community all of a sudden I get attacked. That's why I was quick to defend.

Back on track though, it's all about being smart about the investment and the type of loan you do. There are many different ways to get a loan but not all are right.

 

[NSX-GUY]

I agree with your professional and mature standpoint 100%.

Mature ??? Who you calling mature ?!?!?!

Why I oughta......... :biggrin: :biggrin: :biggrin:


BTW, I might be looking to buy a co-op soon - Got any 100% financing programs around ?

(Got no cash (because of my cars :redface: ) but make good money !!! :tongue: )

 

[john@johnhudakracing]

You'll definitely want to do the house first, preferably a good functional design- 2400sq ft 6 car garage with air, lift, and minimal living space over head, 765sq ft is ok, and an attended lawn. :biggrin:

 

[zahntech]

Move back to Seattle, it's nice here:biggrin:

 

[Vendetta]

Mature ??? Who you calling mature ?!?!?!

Why I oughta......... :biggrin: :biggrin: :biggrin:


BTW, I might be looking to buy a co-op soon - Got any 100% financing programs around ?

(Got no cash (because of my cars :redface: ) but make good money !!! :tongue: )

LOL....if you have good credit, I'd reccommend going to your bank or better yet a credit union. Their fees are much less than a brokers'. If your credit is less than perfect and you cannot get financing at a bank, I'm your guy.

 

[Jin1976]

House first with close garage. This keeps away the pesky cats. :redface:

 

[AR]

House for sure mate.

 

[Ski_Banker]

Your stereotyping comment shows who's "dirty" and who's not.

First of all you claim I convince people to buy over the top houses and use exotic mortgage programs. I do NOT reccommend option ARMS and other "exotic" mortgages to ANYONE. I put people in programs that will only help them in the future but since you know me (and all mortgage brokers) so well, I guess you're right about everyone you stereotype. Not all of us put people in upside down situations you know? There are some of us who actually like to help people and have guilt when wrong is done.

I've been doing this on both sides of the business...lender and originator and I've been in the business for years. I have a pretty good referral base (99% of my business is referrals) so I MUST be real dirty and shady huh? So dirty that people reccommend their friends and families to me.

There are people out there who have poor credit and cannot walk into a bank and get a loan you know? Where do they turn when they need a mortgage? Not everyone can buy a house with cash and it's even more difficult for people who don't fall in the prime market. Those are the people we help out....doesn't neccessarily mean all of us crack them with fees. Not everyone lives in South Beach like you do, there IS a subprime market believe it or not and they need to buy homes too.
Not everyone in the same profession works the same ways so grow up and quit stereotyping. Boy would I hate to hear your take on races and other stereotypically sensitive subjects.

Stereotyping? Racism? Where'd that come from?

Read a little more closely, and you will see that I was referring to your industry...not you personally.

My comparison to Wall St is rooted in the very heavy levels of regulatory oversight under which its participants operate (much of which is appropriate IMO). The real estate world, however, is like the wild west. Realtors, mortgage brokers (the worst, by far) are all "engaged" to help an unknowledgeable homebuyer purchase a home and get it financed. But, and this is a CRITICAL difference, they DO NOT owe the client any sort of fiduciary duty to act in their best interest. Even though the client thinks and feels like Their Realtor or Their Mortgage Broker is doing so. In contrast, a stockbroker can be held liable for misrepresentation and breach of fiduciary duty if, for example, the stockbroker inappropriately churns a client's account to generate commissions.

Why is this a big deal? Because, except for with margin, a stockbroker is very unlikely to lose more money than a customer actually has -- no leverage. How many customers, even the more knowledgeable ones, REALLY understand even traditional ARMs? Do mortgage brokers carefully explain the risk of rate increases and the impact it can have on a tight budget after a few years? Or, do they sell those products because their fees are higher because 1) they just are and 2) you can convince someone to take out an even larger mortgage than they could normally afford?

Caveat emptor -- I'm well aware of it -- but in the world of speculative real estate, 95% leverage, and completely unsophisticated homebuyers, this wild west mentality will end up screwing us all.

 

[Ski_Banker]

Just to add:

My *2nd* big prediction of this thread (1st was RE going down) is that, coinciding with the problems created by prediction number 1, there will be a public outcry for regulatory oversight of the residential real estate industry in a few years.

 

[I1O101I]

I am only 23, I just got my nsx about 3 months ago. I bought my own house when I was 21 going on 22. I never thought that a house could make me so much money in just 2 years. it is a better investment to have a house first then buy an NSX. well that is my story. I hope that helps:biggrin:

Bryan

 

[NSXFRIEND]

Thank you all for the advice. At this point I am going to wait and just keep saving money for either NSX or a good investment first time Home if I ever find it in my area. I have waited this long I can wait a few more years for the steal.

:smile:

 

[DDankew]

House

 

[satx]

you can sleep in your car, but you can't drive your house to work:biggrin: