First time home buyer question

[Gray33]

Alright, so i am 18 and i am goin to buy my own house and i heard you can get 8,000 off. The house i am going to buy is 9k how would that work on a 9k house?

Anyone know anything about union city indiana

[JParisi48]

my mom is a real estate agent, and she said you shouldnt buy a house for 9k, tell us about the house first, call her if you want lol 978-202-8524 :)

[motohanks]

isn't the 8,000 a tax credit, not money up front for a house.

[JParisi48]

Originally posted by motohanks
isn't the 8,000 a tax credit, not money up front for a house. yep, but but you have to buy the house and close on it before november 30th, and you have to make under 75,000 if single, and under 150,000 if your married a year...

[Gray33]

thanks for your moms number! lol

here is a link to the house
house (http://idx.cblunsford.com/showdetails.idx?&script=res&MinBed=&mls=7&sortby=PRICE&MaxPrice=25000&City=&orderby=DESC&ElemSchool=&Show=5&HighSchool=&Property_Select=res&MinBath=&MinPrice=5000&Page=18&mlsnumber=38705)

[lonnie1977]

Even if its gutted its worth 40K here in Jersey. I mean with no interior wall or plumming. If you like the location but it. doesnt look to bad and rent it later if you want to move up.

Originally posted by Gray33
thanks for your moms number! lol

here is a link to the house
house (http://idx.cblunsford.com/showdetails.idx?&script=res&MinBed=&mls=7&sortby=PRICE&MaxPrice=25000&City=&orderby=DESC&ElemSchool=&Show=5&HighSchool=&Property_Select=res&MinBath=&MinPrice=5000&Page=18&mlsnumber=38705) dude wtf no garage???where u gonna keep dat pretty yfz of yours??

[Gray33]

It only costs 9k and i can jew them down and i would probly build a garage.

[Gray33]

And if all fails i can always rent it out pretty cheap and still make money off it. Be a good investment for me. Own a ok house at 18 then make about 200 dollars for rent off it.

200 x 12=2400 per year i would make off it. If i rent it out for 50 years i would make 120k. Which would be worth my money.

[rundrave]

get it inspected and see if it passes all the codes

there is so much more to being an home owner than just making a house payment.

when the time comes to sell it or you are forced to sell it and you are required to get it to pass all the codes and safety issues you could wind up with some pretty hefty bills just to make it pass inspection.

i would pass.
200 x 12=2400 per year i would make off it. If i rent it out for 50 years i would make 120k. Which would be worth my money.

ha you forgot about taxes and insurance...maintenance etc etc. if it were only that simple....

[Gray33]

True lol, how much does it cost to get inspected?

[matt14c]

Especially buy it if you can pay for it like cash or something. Unless its in the middle of a terrible neighborhood or something to where you would never get your money back. Not sure what you do for work or anything but I would say you would need to be able to have about $20K for that house. Not sure what the insides look like but it sounds like it needs some work. It would be a good learning expierence for you. Get a little fixer uper as a first home will really help in the long term. Hell your 18 Give yourself a couple years to fix it up really nice and you would still be out of the parents house before your old enough to buy your own beer. Go For It.

[KevinAb]

Originally posted by rundrave

when the time comes to sell it or you are forced to sell it and you are required to get it to pass all the codes and safety issues you could wind up with some pretty hefty bills just to make it pass inspection.

Huh? When did this happen? You can sell any property in any condition, you just have to disclose lead or asbestos, and the buyer needs to research what they are getting into. I've bought a few fixer-uppers over the years that would not meet current building codes. Finishing one now.

[KevinAb]

Originally posted by Gray33
True lol, how much does it cost to get inspected?

$400 or so for an inspection, then hand the report to a general contractor (GC) who can estimate the costs to fix the issues found in the inspection.

[derekhonda]

Ok, you are all mixed up and I didn't see anyone correct you.

The credit is actually 10% of the houses value, capped at $80,000.

That means if you buy a $50,000.00 house, you get 5 grand.

if you buy and $80,000.00 house, you get 8 grand.

If you buy a $300,000.00 house, you get 8 grand.

So you're $9,000 house would get you 900 back on your federal tax credit for 2009 unless you amended you 08 taxes.

And as far as an inspection on a 9 grand house, I wouldn't, it isn't going to pass.

[honda400ex2003]

i would check it all out and buy it cause that is a steal. anything standing here is much more than that. steve

[Gray33]

only thing that comes to my mind when looking at the add i have seen the house up close but havnt been in is it said it has lead base paint?

[Guy400]

I would stay away from this.

1.) Lead based paint = expensive removal and repainting. Nearly all cities, townships, etc. have very strict laws on lead based paint and it's removal (you can't just scrape it off and throw it in the trash can).

2.) It's a HUD home = HUD neighborhood = Higher crime rates, lower property value. When is the last time anyone has seen a real estate ad that said, "Home for sale, GREAT HUD NEIGHBORHOOD!!"

3.) Extensive home repairs just to get it livable.

Do a walkthrough of this house and I'll guarantee you there isn't a level floor, all carpeting will need to be replaced, all appliances will need to be replaced, every sink/shower/tub will need to be replaced and this list goes on. Except for the framing you'd basically have to build a new house. Attempting to fix this up and rent is a terrible idea IMO. What do you think the clientele in a neighborhood like that would be? You'd spend a bunch of money getting it rentable and then it would get destroyed by the tenants.

[cdrookie]

^^^^ werd

you're in over your head, just walk away. NOTHING will take every dime you make like a house, especially at 18, especially a fixxer upper, especially a HUD house!

[Gray33]

I go next saturday to look at it. Thank you guys for all your posts

[derekhonda]

Originally posted by Guy400
[B]I would stay away from this.


2.) It's a HUD home = HUD neighborhood = Higher crime rates, lower property value. When is the last time anyone has seen a real estate ad that said, "Home for sale, GREAT HUD NEIGHBORHOOD!!"


Weird, I just bought a HUD home in a great neighborhood. A lot of people don't know what huds are, they are simply loans that the government itself secured, not a bank, broker, conventional, blah blah.

VA loans, when they are past due go into the hud program, so if living next door to a veteran would upset you, then yeah stay away from hud homes.

[derekhonda]

Originally posted by cdrookie
^^^^ werd

you're in over your head, just walk away. NOTHING will take every dime you make like a house, especially at 18, especially a fixxer upper, especially a HUD house!

Again, your next door neighbor could have a loan secured by the government, and if they defaulted, their house would enter the hud program. "HUD" houses can be nice, you just got to find the right one.

[Guy400]

Originally posted by derekhonda
Weird, I just bought a HUD home in a great neighborhood. Are there HUD homes in good neighborhoods? Of course. However, a vast, vast majority of HUD homes/neighborhoods are comprised of low income dwellers in urban areas. This is a recipe for high crime and low value in most cases.

[derekhonda]

I'll agree with you on that, but a blanket statement that just because it is a hud house is a reason not to buy it, doesn't fly with me.

[JForestZ34]

I would stay away from this with a 10ft pole... There must be something really wrong with that house if it's only selling for 9k. Foundation work can be very expensive to fix or replace... The framing could be rotted out, windows leaking, roof leak, the list goes on and on.. But I wouldn't do it if I were you.. Did you talk to someone in the realty office? Are you sure they didn't just have a typo in the listing? They might have left out a zero. If the house went for 90k then I would say it's not a problem but 9K something just isn't right...


James

[honda350r]

Originally posted by Gray33
It only costs 9k and i can jew them down and i would probly build a garage.

Jew them down ? Nice !

[ZeroLogic]

Looks like a **** hole if you ask me. Its in a bad neighborhood too. Save your money for a few more years and put a nice 30k+ down payment on a bigger new construction home that you know will pass inspections, thats in a good neighborhood, that has a nice big yard. Your only 18 years old theres no rush.

[derekhonda]

Also, keep this in mind.

I was looking at a 15k hud home as an investment property. Was listed at 15 k, put in a 15,200, it ended up selling for $32000.