Nervous, need advice?

[GotRidOfTheHemiForThis]

Are there any contractors on this site? When i say contractors, i mean you work in a field where your not considered an employee and you have none of the rights in the workforce besides you work and you get paid? The reason im asking is im looking to possibly buy a house but im worried about if times get slow ect so on. Anyone on here had any issues and or stories to make me feel better or more worried. I really make good money now and like my job enough to stay for a few more years until I finish my BA degree in college but being that i make all the money and my gf doesnt im a little aprehensive about buying my first home. I dont want to fail, yet i really need my own place for personal issues at home that i cannot stand anymore. I want a house not a apartment either, rather work towards equity than throw money away in my opinion. Plus i need a garage for my truck and i wont budge on that :rock:

 

[wyoramsrt-10]

What about buying one instead of building a house? Not sure but I think it will cost you more money to build one.:dontknow:

 

[GotRidOfTheHemiForThis]

What about buying one instead of building a house? Not sure but I think it will cost you more money to build one.:dontknow:

I am buying one, are you crazy!!! I haven't won the lotto yet

Oh and does anyone know how to get a list of reposessed homes (sad topic unfor) but sometimes a great deal.

 

[wyoramsrt-10]

Sounded like you were wanting to build one

My bad. I just bought my first house about 8 months ago. I would still prefer to rent, but I know owning a house is better for me in the long run.

 

[Halligan]

I'm confused - are you apprehensive about buying a house? Is it the market that's concerning you?

Now seems to be the time to buy, and it will be that way for months to come. The market is in the pooper. It's going to continue that way for a while. Research the areas that you are thinking about buying - find yourself a "hotspot."

 

[GotRidOfTheHemiForThis]

I'm confused - are you apprehensive about buying a house? Is it the market that's concerning you?

Now seems to be the time to buy, and it will be that way for months to come. The market is in the pooper. It's going to continue that way for a while. Research the areas that you are thinking about buying - find yourself a "hotspot."

Its not about buying the house in general im worried about. The market conditions are exactly why i want to buy a home, theres some great deals out there. What im worried about is ive been a contractor for a few years now and have noticed that when theres a dead time its dead, aka no money. Im wondering how other contractors do it? With no unemployment coverage and having to pay our own taxes each year, it leaves little in extra money in my opinion. Yet i see contractors buying homes all the time without a care and im worried only because do they know something i dont or is it just a case of taking the risk and hoping for the best? Generally i know that i make more than a enough money but to be confortable and unworried is my concern i guess. Im jut seeing if anyone on here has delt with this situation and knows what i mean? Plus any extra advice for the first time home buyer is much appreciated, the internet can only answer so many questions.:dontknow:

 

[GotRidOfTheHemiForThis]

Sounded like you were wanting to build one

My bad. I just bought my first house about 8 months ago. I would still prefer to rent, but I know owning a house is better for me in the long run.

Why would you pref to rent if you dont mind me asking?

 

[Silverback]

What kind of job do you do?

I work with, and know a lot of contract engineers. As long as you are willing to travel to where the jobs are, you will never be without a job. If you plan on wanting to stay in one place you are screwed.

 

[Jeff Kehoe]

It depends on the work in your area(50 miles).
What type of work do you do?
Are you in a Union(if how does it send you out seniority/list)?
All of this matters.

I too beleive this is a good time to buy a home.
Renting is throwing money AWAY!!!

 

[eddie102870]

i seriously doubt you can go wrong buying a house in this market. dont be afraid to offer a real low price and go from there. buying below appraisal shouldnt be a problem right now. youll still make a real estate broker happy. i know one here in town thats driving a dump truck cause he hasnt sold anything in so long.

 

[SinorSwim]

Renting is never a good idea. I bought my first house @ 20 (45 now) and made a lot of money thru 1989-lost everything in 1990-kept buying and now have 90% equity in primary house and industrial buildings-should sell now (market is great in Toronto-up 100% in 7 years) but plan to hold on to everything for another 5-10 years. If I had the money I would buy in Miami and wait.

The key to real estate is equity-then you can wait out the bad times.

Industrial property is a great investment as long as you can find a good tenant.

The US market will not improve for a couple of years or longer (IMO), but you need a place to live. Buy a place in the nicest area you can afford-location is key.

 

[Gaboon]

RESEARCH the area you are planning on buying a house in. Right now may be a good time to buy but next year may be even better. The housing market is still going down in areas.

 

[flchub]

the construction industry in general is taking a big hit and will be for the next few yrs,most contractors have something saved up and take most of their money and put it back into the business,the less overhead u have the betteroff u are.

if ur new in the business u may not last in these down yrs.

there is no real downside to real estate investment ,unless of course u pay way too much for it,if u decide to move u can always rent the home out.

 

[TNVIPER]

Rule of thumb is to have at LEAST 6 months worth of expenses saved (utilities, car/truck payment, food, rent, etc) before sticking your neck out. Doesnt matter whether you work for yourself or for someone else...you can be out of work either way in the future. I do small business consulting (I'm self employed CPA) and this is what I tell any client thinking of going into business. Most businesses (and personal) financial failures result from not enough capital (cash)...

 

[Prof]

I think Mike is mostly worried about cash flow.

Here is the advice of an old fart...

Yes buy when you can and now is a good time...but it will be even better in six months.

As a contract employee you are at the mercy of the employer...just a few months ago you and your friend were let go for no good reason and you ended up really strapped for cash...if that happens when you own a home you run the risk of loosing everything you have tried to accumulate...

Here is the route to take....save, save, save. Let those savings compound...

When you can put 30% down on the home you want to buy, and when you also have six to eight months of reserve cash (including your mortgage payments) then buy.

Do not take a sub prime mortgage. Use traditional financing not sub-prime approaches...if you can swing less than a 30 year mortgage go for it...a 15 year mortgage will save huge dollars in interest expense.

Call me Mike if I can help in some way...

Roy

 

[sleeper]

the construction industry in general is taking a big hit and will be for the next few yrs,most contractors have something saved up and take most of their money and put it back into the business,the less overhead u have the betteroff u are.

if ur new in the business u may not last in these down yrs.

there is no real downside to real estate investment ,unless of course u pay way too much for it,if u decide to move u can always rent the home out.

Hes not talking about construction. Hes an independant contractor. Yes you need to have a property so you can have a write off.

 

[wyoramsrt-10]

Why would you pref to rent if you dont mind me asking?

Pretty much in the same boat as you. I didn't want to buy and then lose my job because the industry took a crap and lose everything. I wish I had some insurance money to fall back on but I don't. I have been trying to save as much as possible. You either live high on the hog or eating Ramen noodles everyday. So I can relate to how your work is. My dad lost his house because the oilfield took a crap when I was a kid.

I was renting and then the owners moved back to town and gave us the boot. The housing market here is crazy because of the oilfield boom. People are living in motel rooms because there is nothing available. I got lucky and found a house to rent in about a month with a little help from connections. The house we ened up moving into was half the size and very crampt for the family. Two boys, one girl, My GF (expecting also) and me in a three bedroom tiny house. It was a miracle we found the first house we were renting. They just don't exist around here to rent. So at that point we decided to buy.

It would have been hell with the new baby in the old house. Every time we saw a house that would fit our price and size it was gone. Took us 8 months to get the house we wanted. And even then it almost didn't happen. Pretty much as soon a house goes up withing a week it is under contract.

My GF doesn't pull any money in either. Full time mom. Which I don't mind. The price for day care compared to what she would take home is just not worth it. So we decided it would be better for us if she stayed at home with the kids.

 

[Marc T]

I think Mike is mostly worried about cash flow.

Here is the advice of an old fart...

Yes buy when you can and now is a good time...but it will be even better in six months.

As a contract employee you are at the mercy of the employer...just a few months ago you and your friend were let go for no good reason and you ended up really strapped for cash...if that happens when you own a home you run the risk of loosing everything you have tried to accumulate...

Here is the route to take....save, save, save. Let those savings compound...

When you can put 30% down on the home you want to buy, and when you also have six to eight months of reserve cash (including your mortgage payments) then buy.

Do not take a sub prime mortgage. Use traditional financing not sub-prime approaches...if you can swing less than a 30 year mortgage go for it...a 15 year mortgage will save huge dollars in interest expense.

Call me Mike if I can help in some way...

Roy

Top notch advice here!!:rock:

Sounds like it came strait from Clark Howard!!

As for worrying about your work availability, it all depends on your specialty!!

What services to you contract?

 

[Prof]

Mike is a tower guy...will do anything way up in the air....crazy if you ask me!

I don't know what he is doing right now...but he should be trying to hold on to the cute girl he brought over to my house first and foremost, secondly, he should work hard to finish school and consider going on (he is super smart), and thirdly he should put the wing back on his truck because most of us think he is stupid because he took the wing off.:elefant: :elefant: :elefant: :elefant:

 

[ChrisAZ]

If you might have to sell within the next 2 to 3 years due to relocation for your job, now is not the time to buy. The one thing that could really screw you is if you had to sell during a real estate market like we are in today (and likely for two or more years to come). You will either have to sell well below market prices or it will take 6 to 9 months to sell unless you just get lucky. The only reason to buy right now is if you can buy for well below market because you will then be able to sell quickly and at least break even. Bottom line, if you find a steal that is within your budget, buy it. If you are going to pay market value, in a market on the down swing as we are in now, you better not need to sell. The other key is budget. Only buy what you can afford using traditional financing like Prof said.