Housing

Folks who bought a home recently- do you regret buying? (Seattle only)

Amazon 1234#
Nov 25

Asking due to recent price drops. If yes, please share your thoughts.

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  • Microsoft IEjP42
    Cheaper than renting
    Nov 257
    • Amazon 1234#
      OP
      How come? It's about 2x renting
      Nov 25
    • Microsoft IEjP42
      Uhh, what?
      Nov 25
    • Amazon 1234#
      OP
      How is buying cheaper than renting in Seattle /suburbs? Did I misread your comment?
      Nov 25
    • Microsoft IEjP42
      You think when people buy an investment property, they rent it out at half their mortgage payment? Same goes for primary residence, you can’t find an equivalent rental for cheaper than your mortgage payment.
      Nov 25
    • Amazon 1234#
      OP
      I don't think investment property (assuming bought today) will fetch 100% of mortgage payment incl interest. I quoted 2x for my specific case.
      Nov 25
    • VMware BobbleHat
      Ms- they do in Bay Area. Rent in places like Palo Alto are 1/3 the mortgage for the same place
      Nov 25
    • Microsoft IEjP42
      Topic says Seattle
      Nov 26
  • Microsoft XKWP47
    TC or GTFO!
    Nov 251
    • Microsoft WJyo24
      You put your TC on the table first or GTFO!
      Nov 25
  • Cisco randynash
    The only and only problem with buying a house in the US is the 30 year loan. It's a seriously stressful liability in a country where you are not guaranteed a job for 30 years.

    Why take on guaranteed stress for 30 years when your income for 30 years isn't guaranteed? (I know you're gonna say money thrown in rent, building equity blah blah. Let me bust that right now by saying that interest payments + taxes+ insurance = money thrown in the drain)

    Seriously, if you are mobile, buy smaller houses on shorter debt duration. Those 30 years of slavery will be killer
    Nov 256
    • Facebook public2
      Actually the 30 year loan is amazing. At current rates it's free money as the market over 30 years is very likely to return significantly more than 4%. Most people who could pay off the mortgage in cash will keep it for the free leverage and tax advantage. The mortgage is one of the fastest and easiest vehicles to wealth creation. If you are super risk adverse just keep a larger than normal cash reserve so that you can make the payments for several years without any income should you become disabled and not be eligable for insurance during a recession. Interest is not double taxes so it is either money paid to the irs or paid toward a house; will let you guess which is "money down the drain".
      Nov 25
    • Cisco randynash
      The above works when:
      1. There is a total tax deduction on mortgage payments. Right now it's capped at 750k

      2. There is SALT deduction. Right now there isn't

      3. At the bottom of a recession when the house prices are dirt cheap

      4. Other investments are riskier than buying a house (right now you can buy bonds yielding better than houses)

      None of the above applies right now. Heading into an recession, we're probably gonna see layoffs too. Good luck losing all that principal on a foreclosure
      Nov 25
    • Facebook public2
      1) Only on your primary property. The tax rate on all other property was slashed.
      2)10k on your personal and unlimited on all others
      3)Land is always cheap, it is insanely expensive to make more. Buy at the peak or valley, long term it's great.
      4)Correct, property is low risk.
      Love the widespread ignorance regarding recessions, time does not cause a recession. Regardless if we see a depression and all propery drops significantly my only action would be to buy a lot more than normal which I last did in 2013. That would be awesome! Not sure how you see foreclosures as a negative, they are great buying opportunities for folks like us!
      Nov 25
    • Facebook public2
      Real estate isn't for everyone and if you don't like leverage they certainly do not buy but don't confuse or dissuade others with bad advice. Fear is not an investment.
      Nov 25
    • Cisco randynash
      Op asked about buying one right now, at the top of the market.

      You are talking about buying at the bottom of the market a la 2013

      There is a difference between the two and all I'm saying is getting a 30 yr loan is extremely unwise right now.
      Nov 25
    • Facebook public2
      No one knows if we are at the top or bottom. The only thing we do know is that a 30 year low is still at historically low interest and the feds will most likely continue to raise rates ;)
      Nov 25
  • Adobe Downbeat
    We got priced out of two houses in Seattle ($75K and $100K, respectively, over asking) three years ago this January. We bought a home on the Martha Lake/Mill Creek border instead.

    Even with the market cooling, we are still ahead because we bought the smallest house in a nice cul de sac neighborhood.

    With interest rates climbing, it’s a tough choice in Seattle. I can see the market cooling in the hot Seattle neighborhoods but you cannot predict how much it’ll cool. If you’re in it for the long-term and can afford it, go for it.

    We decided against Seattle just because after the two over-asking offers, we decided to swallow the hour-long commute to save money on our mortgage payment but also because we love to travel and want to retire early. Even with the extra commuting costs, we are still doing very well and are not paying a $3-4K or more monthly mortgage if we had bought in Seattle.
    Nov 250
  • OpenDoor nmLy15
    Rents are very loosely correlated to price. The rental market in Seattle is very healthy and has been increasing at the expected rate.
    Nov 252
    • Amazon 1234#
      OP
      So what is your hypothesis? I believe low rents will impact housing markets. In Seattle, rentals have been reducing YoY
      Nov 25
    • OpenDoor nmLy15
      You're referring only to the areas like Capitol Hill. Rents in most of Seattle and surrounding PS areas are stable / increasing. The whole area hasn't seen the drop in housing prices and rental prices which leads me to believe this is less of an impact than people want to believe. A correction rather than systemic.

      This was less of a hypothesis though and more of a point that rental curves don't follow housing price curves so even if houses drop, it may be an attractive time to buy.
      Nov 26
  • Snapchat UVDP36
    I don't regret buying it. I bought mine in 2016 for asking price and the price is up by about 25% from there. My house is smaller than average and had a very modest finish. Very glad I got it because I would be spending more in rent.
    Hard to predict future, but I knew I shouldn't be paying the crazy prices ppl were paying - I wasn't willing to pay.
    Nov 261
    • Amazon 1234#
      OP
      Well, 2016 was a good time to buy. But not sure if it still holds good now. Thanks for answering!
      Nov 26
  • Amazon 1234#
    OP
    Yes, that's the point. 2015 was great. But life doesn't run with economic cycles. So thinking about buying now
    Nov 250
  • Amazon / OtherMaddy2018
    Growth has slowed down for sure but still better than average . ~5% YoY is still good
    Nov 250
  • Amazon 1234#
    OP
    Can those who said "yes:, please comment why? Would really help. Thanks
    Nov 262
    • Microsoft IEjP42
      Why not the ‘yes’ votes?
      Nov 26
    • Amazon 1234#
      OP
      Oops. Thanks for catching that
      Nov 26
  • Intel Iffno
    It’s a worthless stress given you shouldn’t buy unless you plan on living there for 5+ years, so short term fluctuations shouldn’t matter.

    Bought in 2015 and value is up 40% on Zillow/Redfin as of today.
    Nov 252
    • Microsoft rLLA40
      2015 was an awesome time to buy right now not so much
      Nov 25
    • Intel Iffno
      Not as good as 2014 :)
      Nov 25
  • Facebook public2
    Locking in cheap money (assuming there is a loan), buying land, large tax incentive, peace of mind, no neighbors. What is there to regret? Values can drop 40% in short term; it is not a big deal.
    Nov 250

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