[chuck6877]

Is this smart: I currently rent. I'm having a child so living in an apartment would be hard. I live in an area close to family and friends that definitely does not have a bubble in its housing. The NEW home I'm considering purchasing is $127,500. It will be 3 bed/ 2 bath.

I want to immediately put solar panels on it for my energy needs which I couldn't do if I was renting. I also should be able to make the payments on just my or my wife's income if one of us loses our job. We will just have to dip into our savings for a while.

I have read articles that have said that buying a home in a non-housing bubble area would actually be smart because the inflation that is eventually going to go out of control will rise or atleast keep level the property values of homes.

I also figure RENTS will rise out of control high in the future, and atleast by purchasing the home I'll keep my payments steady.

Does anyone agree with my thinking and that if you were in my situation this might not be a bad idea?

Thank you,
Chuck

[pea-jay]

If it's small town or rurally located, i'd say go for it.

If it's suburban with a useless yard and dependence on automotive transportation, id say forget it.

[chuck6877]

Yea, it's in a suburb of Dallas, TX, so it is in metroplex hell.

I figure though, my wife as a school teacher would be one of the last people to lose her job.

My job is very insecure for the future, but I figure I could always get find another crap job somewhere to help meet the mortgage.

I'm debt free which helps, and I do have quite a bit of money saved up in gold and energy. So that should hold me over for a little while if the shit hits the fan.

With some of my savings I want to also buy a plug-in hybrid when they start to get mass-produced. I figure with the solar power, I could also supply the fuel for my commuting, which I couldn't do if I rented.

I really don't want to move out of this metroplex hell until I'm forced to because it's what I know, it's where my family is and my friends.

I know it's probably not smart, but I figure it's buy now or plan on living with my parents when rents start to skyrocket, because I'm going to resist leaving suburbia till the cannibals start walking the streets!

Chuck

[seahorse]

Hey Chuck,

Congratulations on the new baby! Congrat on being married, (hopefully happily).

As you know, many have debated about renting versus owning. You've obviously thought this out. You could afford the home even if you lost your job, you're debt free (yea!) and you have some other investments. We can never know for sure what the future will bring, so make the best decision for your situation now. Having an affordable home for a family makes sense to me. A "home" is more than the dollars and sense. The price home you are looking at sounds good, and I personally think having a home for you, your wife, and child is a good idea.

There are never any right or wrong decisions, only the best decision at the time using the best information. So, make the best decision for you now and don't look back.

[PrairieMule]

$this->bbcode_second_pass_quote('chuck6877', 'Y')ea, it's in a suburb of Dallas, TX, so it is in metroplex hell.

I figure though, my wife as a school teacher would be one of the last people to lose her job.

My job is very insecure for the future, but I figure I could always get find another crap job somewhere to help meet the mortgage.

I'm debt free which helps, and I do have quite a bit of money saved up in gold and energy. So that should hold me over for a little while if the shit hits the fan.

With some of my savings I want to also buy a plug-in hybrid when they start to get mass-produced. I figure with the solar power, I could also supply the fuel for my commuting, which I couldn't do if I rented.

I really don't want to move out of this metroplex hell until I'm forced to because it's what I know, it's where my family is and my friends.

I know it's probably not smart, but I figure it's buy now or plan on living with my parents when rents start to skyrocket, because I'm going to resist leaving suburbia till the cannibals start walking the streets!

Chuck

[pea-jay]

$this->bbcode_second_pass_quote('chuck6877', 'Y')ea, it's in a suburb of Dallas, TX, so it is in metroplex hell. ...

I really don't want to move out of this metroplex hell until I'm forced to because it's what I know, it's where my family is and my friends.

[chuck6877]

Seahorse,

Thanks for the kind words. Very needed and appreciated. As you can imagine this is a stressful time in my life, but I've never been happier.

I like these good times, when the oil prices are down. It's easy in these good times to sometimes forget what's coming. But thought of peak oil does sneak into my mind atleast once an hour. It's crazy. I think of nothing without thinking of what's coming.

One great escape lately has been my child coming. I've been reading a lot of books on how to take care of a baby. It's a much needed distraction from peak oil! Oh by the way it's a Girl! I really wanted a boy, but for the last week seeing little girls in malls or in movies or magazines, has made me really happy. She's due in late May, and we're going to move into the house in late June.

I've also become so excited about the thought of getting a house. For the last two years, I told myself I never would. Never! I also thought I would never have a child. Never! I think I was letting peak oil take me over too much. I'm taking a little different path now and well it's making me happy.

I really think Iran is coming very soon, so I hope this doesn't throw a monkey wrench in things. I guess we'll see.....

Prairie Mule,
You must be familiar with the metroplex. Denton, Texas. I grew up here. I love it.

Pee-jay,
I call it hell, because Dallas is probably going to be a difficult place to live post-peak, and I know it. The Dallas Metroplex now has the third largest population for a metropolitan area! Plus it's so spread out. The good thing about Denton is that they offer bus service now from up here 30+ miles away from the city all the way to downtown Dallas and in the next couple years they're going to have passenger train service!! In Texas! The train stop will be about 2 miles from my house.

One good thing about the Dallas metroplex is all the farmland surrounding it. There are crops everywhere just outside the metroplex for tens of miles. Hopefully Dallas will be ok.

Really all we have is hope right? Hopefully this, hopefully that. Well atleast I have family and friends close by.

I hope my daughter will grow up happy, and I hope this decision on buying a house is going to turn out to be a good one.

Thanks for the help guys,
Chuck

[emersonbiggins]

Denton is a good town; it had a lot of healthy growth before suburbanization occured, mainly due to the universities located there (I think). It is a far cry from Frisco and all the sprawl that has landed out there in the last 10 years. I saw those cornfields go from productive to fallow to concrete in less than five years. If your job is in Denton, I'd say go for it. If it's a commute to DFW or Dallas or Irving, no way.

[seahorse2]

Chuck,

I have two girls and a boy. My girls have been very affectionate, loving, much more so than my boy. Its wonderful. Maybe that will change when they become teenagers, but, I can't worry about that. So, you have a lot to look forward to. Also, I think having kids makes one less selfish. You get to see the world new all over again - you'll talk about bugs, rainbows, mud puddles, no time to worry about peak oil, and no need to. They simply life in a good way. I like being a "father", it gives me purpose, gives meaning to life, and its all good.

Good luck

[PrairieMule]

Chuck,

I live just south of you in The Colony. Denton is a nice place to live. I have a 3/3/2 with 1932sq ft house built in 1975. I paid 95K for it in 1999 and although it appraised for 131K in 2003 I figure I could get 120ish in this market. The suburbs and exurbs of Dallas got a much needed coolong off last year from the runaway appraisals we are seeing in California, Florida, and Nevada. Not sure what you make in a year or how stable your job is but 127K is a fairly modest mortgage for a family with 2 incomes. No I don't think you are crazy, I think your being very conservative. If you said Frisco that would be a different story.

BTW-Who built the house and when?

[mmasters]

Buying in now is risky.

In the next two years a couple trillion dollars in no interest morgages are resetting. And that's just the tip of the iceburg for potential financial catastrophe.

I'd say rent for the next few years and observe. Above all be what most people aren't -- flexible.

Don't tie yourself down now.

[PrairieMule]

Two of the best things you can do before you finance is determine your fico mid score and determine your DTI (debt to income ratio). Knowing your fico helps you negotiate "points and fees" which in Denton ,Tx. should be around 4-5%. So for a $127K transaction figure on 5k in fees +/- a grand. If you know what kind of shape you are in before they pull your credit you can negotiate down the points and fees.

To figure out your DTI add up what your monthly mortgage payment should be(including escrows), car payments, student loans, and credit cards then divide it by your pre tax income. 45% is good 60% is pushing the envelope. Now take it one step futher because you motrgage rep and real estate agent will not care if you get into trouble 3 years from now. Take the total sum of your monthy payments and add childcare, what you spend monthly at the grocery store, oil changes, or any thing else listed you write a check to. If that goes over 80% you need to cut back somewhere. I'm not saying you need to save 20 of your paycheck but rather you can count on dropping $200-???? a month on maintence, repairs, and appliances. Again the broker and real estate agent do not care if you get into trouble a year or two down the road. So they will tell you can afford a bigger house, cash back at closing, no down at closing-anything to get the mortgage principle higher. Most people do not factor the true costs in and instead they:

APPLY FOR A HOME DEPOT CARD, TAKE EQUITY OUT OF THEIR HOUSE, E-Z LOANS etc

Don't be one of those people. They are the crazy ones.

[PrairieMule]

$this->bbcode_second_pass_quote('mmasters', 'B')uying in now is risky.

In the next two years a couple trillion dollars in no interest morgages are resetting. And that's just the tip of the iceburg for potential financial catastrophe.

I'd say rent for the next few years and observe. Above all be what most people aren't -- flexible.

Don't tie yourself down now.

[chuck6877]

Thanks for all the comments guys. I'm considering everything.

Thinking about getting some property....My parents have some good land next to Lake Fork. Maybe I'll have to get me some near them. We can help each other farm one day!

Going to do an 80/20 loan with $0 down with 0 points. Don't want my investments wrapped in the house when I need to be in gold and energy. Our FICO's average about 760. Our incomes are up to about 86K.

Wife has a 10 mile drive to work and she's trying to get a teaching job closer to us. I have a short drive.

The house will be completed in June sometime. I really want it because I want to put solar panels on the roof. Have you guys seen this site that puts the Solar Panels on your house with no cost to you and you get to lock in 2005 ENERGY RATES FOR 25 years which are 9.5 cents per KWH!!! To lock in the average rates for your energy company from 2005 you have to reserve a spot before the end of February:
http://renu.citizenre.com/index.php?p=edu_faq

YOU GUYS HAVE TO CONSIDER THOSE SOLAR PANELS! It's good for you and for them.

Prairie,
I know now is very risky and I never wanted a home but with the baby and solar power and the fact rates are about to skyrocket I think it's time or I'll never buy. I have friends in Frisco. I can't believe how out of control some of the prices are even there...

Also there is not much of a bubble where I live, but I do realize the value could end up going from the around $133,000 after options to $100,000 easily after peak oil and the house bubble burst. But the coming hyper-inflation in my opinion in the next five years will keep the house value from going too low before the value of homes increase again with inflation. Owners will eventually be ahead if they can hang on without having to foreclose.

Plus if I rent I won't be able to lock in 2005 electricity rates, and I may miss out on the low interest rates, because they're about to skyrocket and I want to lock in my house payment. So I figure I'll know my house payment and my electric rate for the next couple decades. Not knowing if my rent will CONTINUE to increase every month for the rest of my life bugs me. I like to know what the future holds. That's why I'm on this site!

Anyone know much about First Time Home Owner discounts?? Looking into this now.

Thanks for all the great advice guys. What to do, what to do?....,
Chuck

[chuck6877]

Wow, I didn't know the solar company was a network marketing company till today.

I was finally able to give them the address of my new house and someone contacted me to ask if I knew anyone else interested.

I was just happy to lock in 9.5cents per KWH for my energy needs for the next 25 years!!!!!

How awesome is that? It sounds too good to be true, but I haven't found a catch yet.

Dangit I use to be in network marketing companies in college. I can feel the salesman coming out in me. If anyone wants information and to get solar power on their roofs for no costs but the average costs of their power in 2005, give me a PM.

I'll call you and we'll hook you up.

I'll receive 5% of your energy costs as a bonus to me per month for as long as you use solar power!!

Sorry to ruin this thread. The solar really is one of the major reasons I did this though.

Take care,
Chuck