This housing market is killing my dream

[Cozmo]

Since none of you know me I should probably start with an intro.. I'm Cozmo. I'm 29 and work at a software company in the Redmond area :wink:

I've never actually been for a ride in an NSX but decided a while back that I was going to buy one. I'll probably want to ride in one before I take the plunge since I tend to get obsessed with cars only to turn out to hate them once I actually sit in them or look closer (del-sol,miata,rx8,celica,lotus elise, etc)

I've been driving a 2002 TL Type-S for the past 4 years or so and I still love it, which is one of the reasons I think I'd enjoy the NSX (even more).
When I bought the TL there was an NSX in the showroom and I remember thinking "wow this car is lame compared to mine" just because it didn't have all the gadgets. Silly me :biggrin: . Needless to say I think I've grown beyond FWD Automatic cars.

I live in Newcastle (between Bellevue and Renton), and as the title says this housing market is killing my dream. I need to sell my condo so I can get a house with a garage to put an NSX in.. No house, no NSX.

I just got this in my email..
"According to Zillow's latest Home Value Report, home values in Newcastle decreased 4.8% in the first quarter of 2008, compared to the first quarter of 2007. Nationally, single-family home values decreased 7.5% while condo values declined 9.0% during this same period."

It is kinda funny really. I never thought that everyone else's inability to pay their mortgage would screw me over, but now I'm seeing pre-forclosure houses for sale at prices not much higher than my condo (which is already $15k cheaper than the other similar units in my complex).

WTF can you do?

 

[Cozmo]

I just realized what a bastard I am. I was thinking about it and people are losing their houses and potentially hundreds of thousands of dollars right now and I'm worried about not being able to buy a car that i don't really even need.

Even without an NSX I'm much better off than a lot of people right now.

 

[nsxotic911]

What's the problem? The housing economy here in the PACNW has solid "fundamentals" Though it may be decreasing, it will bounce back, and bounce back huge.

If you want ot be "smart" take advantage of it. Buy low and sell high.

Trust me, I feel your pain. I have a number of properties and I am selling on building that happens to be apartments just to get some of the equity out of it, but it's not an easy time. Still, a profit is a profit and I expect to make one. I have no desire to sell any other properties as I think they are very desirable properties and profitable for me right now in the long run.

By next year, I think things will bounce back +/- 2%, and 2nd or 3rd year after that - it will go some more.

In short - it's not clear to me how "it is hurting you" - are you losing your house? Can't get the heloc..? or... what?

I think it should help you in the NSX market. People will be more motivated to sell their NSX in a tight market. Interest rates are low, so if you have to, easier and cheaper to get a loan.

In a tight economy - it's an excellent time to buy.

PS: This is all assuming our "software company in Redmond" doesn't lay 10,000 people off.
If so, this area is screwed

 

[Cozmo]

It is hurting me because pricing are dropping so much I can't sell my condo (only owned it for 2 years). Why would somebody want to pay $344k (current listing price) when they could to pick up a pre-forclosure house for $360k that is almost twice the size. The other side of that is I see a lot of nice houses that I can suddenly afford that I couldn't before.. but if nobody buys my current place I'm stuck.

Basically I would've been better off never buying the condo in the first place.

 

[nsxotic911]

It is hurting me because pricing are dropping so much I can't sell my condo (only owned it for 2 years). Why would somebody want to pay $344k (current listing price) when they could to pick up a pre-forclosure house for $360k that is almost twice the size. The other side of that is I see a lot of nice houses that I can suddenly afford that I couldn't before.. but if nobody buys my current place I'm stuck.

Oh, IC. Well the answer is obvious. Don't sell Can you find a way to buy a house and rent the condo? Might take some work, but deffinetly worth it in the long run.

You also shouldn't have bought a condo in the first place thinking it was going to appreciate :wink:

 

[NSXAMG996TT]

It's out of your control, so just stay put and ride out the storm. Better yet, buy another car (NSX) to get your mind off of it.

 

[Cozmo]

You also shouldn't have bought a condo in the first place thinking it was going to appreciate :wink:

We bought it expecting to live there for 5 years or so... and then we found out we were having a baby right after we moved. Now my son is 16 months old and wants to run around outside (so does the dog). Daddy wants a garage to play with his cars and a room for a proper home theater. The home owners association makes us want to hurt people :biggrin:

My realtor keeps saying "it's not you!" Everyone that comes and looks at our place loves the inside, they just have some other random reason for not wanting it.

OTOH if I stay "stuck" where I'm at now it'll save me about $90k.

 

[Sarge]

Since none of you know me I should probably start with an intro.. I'm Cozmo. I'm 29 and work at a software company in the Redmond area :wink:

I've never actually been for a ride in an NSX but decided a while back that I was going to buy one. I'll probably want to ride in one before I take the plunge since I tend to get obsessed with cars only to turn out to hate them once I actually sit in them or look closer (del-sol,miata,rx8,celica,lotus elise, etc)

I've been driving a 2002 TL Type-S for the past 4 years or so and I still love it, which is one of the reasons I think I'd enjoy the NSX (even more).
When I bought the TL there was an NSX in the showroom and I remember thinking "wow this car is lame compared to mine" just because it didn't have all the gadgets. Silly me :biggrin: . Needless to say I think I've grown beyond FWD Automatic cars.

I live in Newcastle (between Bellevue and Renton), and as the title says this housing market is killing my dream. I need to sell my condo so I can get a house with a garage to put an NSX in.. No house, no NSX.

I just got this in my email..
"According to Zillow's latest Home Value Report, home values in Newcastle decreased 4.8% in the first quarter of 2008, compared to the first quarter of 2007. Nationally, single-family home values decreased 7.5% while condo values declined 9.0% during this same period."

It is kinda funny really. I never thought that everyone else's inability to pay their mortgage would screw me over, but now I'm seeing pre-forclosure houses for sale at prices not much higher than my condo (which is already $15k cheaper than the other similar units in my complex).

WTF can you do?

well if you sell your condo, I have a house with a 2 car garage for sale. its in sedro woolley, would be quite a drive to work for you unless thats not an issue? let me know.

 

[Cozmo]

well if you sell your condo, I have a house with a 2 car garage for sale. its in sedro woolley, would be quite a drive to work for you unless thats not an issue? let me know.

Wow that'd be quite a drive (the opposite direction I'm trying to move too). My wife's family is further south to moving north will never happen.

BTW the Power Wheel in your sig cracked me up.

 

[omega2]

I ended up buying an NSX because of the ridiculous price of homes. I knew the market would come down big, but when and how much is always the variable. Therefore, I figured I would just get the car and wait until the prices bottom out. Unfortunately, working and saving money all the time is pretty boring.

 

[docjohn]

Life gives you lemons....I lived in a crapp ass 950 sf apt and rented 2 storage garages for my cars for 10 yrs,and had a new born to boot, in said 950 sf,,so you do what you have to do,and make life choices based on the cards delt.

 

[MaxGeek]

Are you really going to loose that much?
You sell you condo for less and get to buy a house for less. I know they are just general numbers, but you loose ~9% and only save like ~5%. So your condo won't sell for $344k, but you can also buy a foreclosure for $360k and like you said its twice as big.

I'm glad the house market has fallen though. It was getting way overvalued and out of peoples reaches. Not all of us work for that little software company in Redmond.

Anyway I do feel your pain on not being able to buy an NSX right now. I'm in the same boat on that. I want to buy one, but with the way the economy is headed (at least for the company I work for) I don't have the job security to buy one right now. So I'm just saving and investing my money for now.

 

[Cozmo]

Are you really going to loose that much?
You sell you condo for less and get to buy a house for less. I know they are just general numbers, but you loose ~9% and only save like ~5%. So your condo won't sell for $344k, but you can also buy a foreclosure for $360k and like you said its twice as big.

I'm glad the house market has fallen though. It was getting way overvalued and out of peoples reaches. Not all of us work for that little software company in Redmond.

Anyway I do feel your pain on not being able to buy an NSX right now. I'm in the same boat on that. I want to buy one, but with the way the economy is headed (at least for the company I work for) I don't have the job security to buy one right now. So I'm just saving and investing my money for now.

I figured $35k for an NSX, $19k in fees to sell this place, $9k in closing costs on a new loan, at least $40k for a down payment on a new house, plus some misc money for new appliances, moving, etc. Granted most of that isn't actually "lost", but it is certainly expensive just to switch houses.


You know things are out of control when even people working at little software companies have to move to the middle of nowhere just to afford a house at all. That has certainly changed a bit recently which is nice.

 

[DrVolkl]

Have you considered trying to rent your condo out? People losing homes need places to live.

Not sure what your payments are, but perhaps you could break even and move forward...sell in a few years when the market it back up.

 

[Cozmo]

Have you considered trying to rent your condo out? People losing homes need places to live.

Not sure what your payments are, but perhaps you could break even and move forward...sell in a few years when the market it back up.

Unfortunately there's no way I could do it, though I'd love to if it was possible. With taxes and HOA dues I'd have to only owe about $120k on it to break even renting it out. Needless to say I haven't paid off more than half of my first house in only 2 years. ..and in order to afford the house I want I need to get the money out of this place.

That right there proves how out of whack home prices are..when you can rent a place for over $1000/month less than what it'd cost to buy.. We've actually considered trying to rent a house for a while just to get out from under this mess. It makes me wonder where all my money was going back when I was renting :biggrin:

 

[nsx#75]

I will trade you my NSX, riding lawn mower, a go-kart, small quad for your Condo? I need a place to live :biggrin: I have a house I bought from Dan in Feb I can sell you, double car garage OK?