The starter homes are still out of reach...

[pronstar]

The best time to buy real estate was 20 years ago.
The second best time to buy real estate is right now.

Real inflation is 8-12%
Interest in a 30 year mortgage is under 3%

A 30-year mortgage is currently an excellent hedge against inflation. This debt will inflate itself away…and you’re literally getting paid to borrow it.


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[SQLGeek]

A 30-year mortgage is currently an excellent hedge against inflation. This debt will inflate itself away…and you’re literally getting paid to borrow it.

Yes. This is one reason I opted not to pay down our principal in lieu of other investing.

 

[Brains]

Wells Fargo almost never gives direct mortgages, they typically buy loans.

Yea, they are selective. Even if they will work with you, they may not be the best choice anyway. Last year I started with WF because they were already servicing my existing mortgage, and they were really easy to work with, but ultimately they weren't at the same interest rate as a small mortgage broker offered. I went with the broker. They've significantly pared down their mortgage buying too though.

The best time to buy real estate was 20 years ago.
The second best time to buy real estate is right now.

Real inflation is 8-12%
Interest in a 30 year mortgage is under 3%

A 30-year mortgage is currently an excellent hedge against inflation. This debt will inflate itself away…and you’re literally getting paid to borrow it.

Heck yea. I'm so glad we bought last year before the prices inflated too far, and the rates were low.

Higgins, not sure what your situation is, but if you're young and able to be flexible with what you're doing, go where the opportunities are. Don't be afraid to move somewhere that gives you the chance to get where you want to be going. I moved out of a dead end town over half my life ago for the Houston area, and it opened so many doors.

 

[toddnjoyce]

So everyone is aware, I’m not advocating using WF (or any other bank for that matter) as a mortgage broker. Use a real mortgage broker or try out Rocket.

WF was the first hit that came up when I searched mortgage for REO.

 

[SQLGeek]

So everyone is aware, I’m not advocating using WF (or any other bank for that matter) as a mortgage broker. Use a real mortgage broker or try out Rocket.

WF was the first hit that came up when I searched mortgage for REO.

We’re on to your tricks secret banker man.

 

[Fishkiller]

When we moved to the Big Town several years ago I shopped around for mortgage lenders. Banks had higher interest rates, bigger closing costs etc. Mortgage broker is the way to go, they shop for the best rates. When we bought our first house back in 1980 the interest rate was 12% (thanks Jimmy Carter and Gerald Ford) Not sure of the OP's situation, but we bought a house valued at 2.5 times our combined annual income, paid $61,000. It was tough the first year but then I got a raise and it as easier after that. Advice given to me back then was buy the most expensive house you cannot afford.

 

[oldag]

My house plans seem to be fairly screwed. I'm over in the area of Austin. Plan was to get a 160k-200k house. Jarrell was the town. There were some nice houses for 220k 2-4 years ago. But it's too much for me to afford as a single person. Supposedly I can afford a 180k house as it is. But right now the cheapest houses are about 210k and they're not even built. Then I noticed a closing cost and that made it even worse. I thought I heard before the seller pays that, but now I'm not sure. Someone I know bought a new house for 160-170k and it's a copied house and there are a couple of them going for 240k right now... Maybe a year and half?

I had a plan to get a 2nd job early this year which never happened. Couple months ago or so I was looking into starting a Lawn Care business, bought some tools. I ran the numbers and it could be quite profitable... If I could make the time quotas. With my tools (small mower) and lack of experience, it would be about what I'm making now. Then there's all the struggle of trying to startup and seasonal.

Is the housing market going to get better anytime soon? I'm being told no... Was it Samsung in Taylor, Tesla, etc...

The housing market around the general metro areas has a long term trend of increasing value. However, along the way there have always been ups and downs. Some areas will be hotter than others.

I suspect the craziness in the market will fade in a year or two. Perhaps prices will not go all the way back down to 2019 levels, but they likely will drop. Overheated markets almost always correct. I can't tell you how many times over the years I have heard about various things (real estate, oil, gold, etc.) "It ain't ever going down again." And how many times that has turned out to be wrong.

Some patience will likely pay off.

 

[pronstar]

Banks can only offer their own loan products.

Brokers can offer loan products from many different companies


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[kyletxria1911a1]

I'm not real estate savvy but when I met momma
We got a mobile home we own the land all paid for now building a new home..
Down side no equity. But now have 300k. To build

 

[Texas42]

Yes. This is one reason I opted not to pay down our principal in lieu of other investing.

I can see the reasoning behind this. I just like the simplicity of limited debt. With my house paid off, I get a raise of basically an extra 2 grand a month.

 

[SQLGeek]

I can see the reasoning behind this. I just like the simplicity of limited debt. With my house paid off, I get a raise of basically an extra 2 grand a month.

Yes, there are trade offs to be sure. There is something to be said for owning more of your home.

 

[Axxe55]

I'm not real estate savvy but when I met momma
We got a mobile home we own the land all paid for now building a new home..
Down side no equity. But now have 300k. To build

Most mobile homes do depreciate in value, but the land itself has value.

 

[baboon]

I can see the reasoning behind this. I just like the simplicity of limited debt. With my house paid off, I get a raise of basically an extra 2 grand a month.

The last 5 years I worked I never got a cost of living raise! I watched most co-workers struggle when inflation & taxes went up.

Many of them were down right haters, because of a money crunch! Most didn’t want to hear about all the years I worked 2 jobs either.

The wife and I did without for years while we were younger. I look at her parents and laugh at them and their current financial situation. When I quit working her parents were totally freaking out! When the wife let it slip about their concerns I asked her if she was as concerned?

When we decided to sell the house in Houston her dad thought it would be in our best interests to park a trailer on their 3 acres. I pointed out that was nothing but her parents thinking I would assume their stupidity!

 

[andre3k]

Instead of waiting on home prices to go down, which is unlikely, come up with a plan to make more money. Since you're a single person there's no reason you can't work multiple jobs. Increase your income with a side gig, bank all of that income and wait a bit longer to purchase your home or property. Working two full time jobs is doable. Don't plan on much sleep but it won't last forever.

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[Axxe55]

The last 5 years I worked I never got a cost of living raise! I watched most co-workers struggle when inflation & taxes went up.

Many of them were down right haters, because of a money crunch! Most didn’t want to hear about all the years I worked 2 jobs either.

The wife and I did without for years while we were younger. I look at her parents and laugh at them and their current financial situation. When I quit working her parents were totally freaking out! When the wife let it slip about their concerns I asked her if she was as concerned?

When we decided to sell the house in Houston her dad thought it would be in our best interests to park a trailer on their 3 acres. I pointed out that was nothing but her parents thinking I would assume their stupidity!

Instead of waiting on home prices to go down, which is unlikely, come up with a plan to make more money. Since you're a single person there's no reason you can't work multiple jobs. Increase your income with a side gig, bank all of that income and wait a bit longer to purchase your home or property. Working two full time jobs is doable. Don't plan on much sleep but it won't last forever.

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^^^^Both of these, full of good advice^^^^

 

[pronstar]

^^^^Both of these, full of good advice^^^^

Supposedly my company gives annual COLA raises…we’ll see how much it is.


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[gdr_11]

I first looked in this area in 2015 and I looked at homes on 1/2 - 2 acres in the $125K-$150K price range for 2,000 sq ft properties. I remember looking at new homes in Copperas Cove and talking to the builder who told me he could build on my land for $70 sq. ft.

One year later I come out and the prices have now jumped to $150K - $200K for the same range but the inventory was small and the condition of the two dozen homes I looked at was pathetic. I lucked into a Sale by Owner home that came on the market while I was here and I offered full price for a 2,000 sq ft home with a 700 sq ft garage on 2 acres at $210K. That represented almost a 50% increase in $/sq ft in one year. 5 years later my home is valued at $330K but with my senior exemption it is only tax appraised at $153K so I am good to go for now.

Problem is that I was 66 when I bought here and now it is real hard for me to keep up with 2 acres between all the mowing, weed eating, acorns, leaf drop, fence repairs, etc. I told the wife I can maybe do another year or two and then I am done and we will need to sell and find someplace else with minimal upkeep. The problem is that whatever I profit from here will be eaten up because I will need to move in town where the necessities are close at hand instead of a 20 minute drive like now.

On OP's original issue, don't forget that Texas has a number of first time buyer programs to help out. I got $7,000 free down payment assistance and it really helped because I was able to close with less than $2,000 out of pocket and leave a good chunk of cash on hand which carried my payments until I refinanced for the best deal. As long as you have not owned a home in the past 2 years, a good mortgage broker can find you a similar program.

 

[Higgins909]

Quoting difficulties...

Yeah, I've been looking into a 2nd job and or a new main job. Trying to figure out the hours and such. I just have no experience pursuing jobs. The one I have now was pretty much given to me. Been there 5 years. I'm not in a very high position, have been unhappy with it for several years at this point. Kinda baited along... One big reason that I'm holding out is health insurance, which I feel like I can't take time off to go use. Hearing about people getting these better jobs and questioning myself.

But then there's wonders about going to school for a good job, but probably getting too off topic at this point. Ya'll probably remember me bringing it up a couple months ago. I probably need to go find it and re-read it.

This time around looking on realitor, I actually found some land it looks like. 5 acre, but it's almost a hour away by Killeen. Looking at the price history, it's gone up just about as much as houses.

 

[Brains]

I don't know your situation, but it does beg the question. If you're young, do you need the health insurance? I'm not exactly young and I haven't used mine in quite some time - and when I did, cash would have probably worked just as well, as poor as insurance is these days. Don't let that be high on your list of reasons to stay in a position that is limiting your potential.

Try to plot a course for yourself, so you can put your eyes on a goal. Stated goals are easier to achieve than broad ideas of merely 'doing better.' The worst thing you can do is make excuses for something that is standing in the way of what you want to achieve. We all do it, and it's probably the #1 thing most people look back on and wish they would have done differently.

Youth is for taking risks. I took a risk and uprooted everything I knew at 23 years old. Quit my cushy gov't job, sold my house, packed everything I could fit into a Firebird pulling a UHaul trailer, and moved across the country almost on a whim. It worked out quite well, and I'm glad I did it. At 17 I should have enlisted but was apprehensive they'd want to shove me in a box doing intelligence work. Looking back, I should have joined, I might have had a shot at finding my butt in the seat of a fighter jet. Nothing risked, nothing gained.

 

[1911'S 4 Me]

Look into an apprenticeship in the construction trades.
You will have to get your hands dirty, sometimes your feelings hurt.
Good pay, 4 years of apprentice school.
Journeyman pay after apprenticeship.
Pay raises after different amount of time served.