> Then there's no question in my mind that that's the right thing
> to do. Homebuying and wealth-building are *slow* processes. If
> you're so eager to do things that you can't wait 6 months,
> something's wrong. Take those 6 months. Pay off the credit
> card and the 11% car loan. Heck, take 6 more months and build
> up a nice cash cu****on. Every home buyer out there can tell
> you that after you buy that house, you inevitably spend a bunch
> more money getting yourself set up in the first few months -
> don't make the common mistake of putting that additional
> spending on a credit card too. Houses are not going to
> skyrocket in price. If you think you might be able to
> afford that house in 6 months, you can bet that you'll still
> be able to afford it in 12, with a much bigger margin of
> day-to-day cashflow safety.
>
> > eager to move, but perhaps being patient will pay off in the long run,
>
> Major keys to wealth are patience and discipline. Ask
> Warren Buffett. Be patient. Those who are capable of
> delaying gratification have much much better chances
> of building wealth.
>
Just as a data point. In 2004 my wife and I put money down (lot hold)
in a neighborhood. I don't remember the month, but I think we put
money down in November. After some discussion we told them we wanted
to close in June (because that is when car and student loans were paid
off), they said no, and we pulled our money out and walked away. Cost
of house was $275k.
In June of 2005 we put money down (lot hold) in same neighborhood on
same floorplan with same builder- just deeper into neighborhood. Cost
of house had increased to $352k. 77k increase in about 6-12 months.
That was when RE market was still hot (in southern Ohio). A few
factors changed -the place we live now was not part of original sub
division plans, so I am sure the plot of land cost more for developer
when they were "mid stream" in rest of neighborhood, and our current
location is a wooded lot where as first lot was not wooded, AFAIK.
Sometimes waiting costs you money. In our case we liked going into
house debt free and on our terms. In this market if you walked away
like we did, they will bend over to keep you. In the market of 2004
that lot was resold within 2 weeks.
Negotiation will work if you are building.
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