Why I don't want to buy a house

I know I've been quiet

2009-07-02T07:48:00.001-07:00

I'm moving. Just down the street from where I am now, but getting ready has been keeping me very busy.

Foreclosures up in Nevada

2009-06-24T21:39:00.000-07:00

I can't say I'm surprised. The San Jose Mercury News reported.

Nevada leads the nation in Foreclosures. One out of 64. Nice huh?

1 out of 64 is a huge number.

You can read the whole artical here.

http://www.mercurynews.com/breakingnews/ci_12569139

Now people are loosing homes due to job loss

2009-06-23T23:04:00.000-07:00

About time.

I don't say that to be cold, but once upon a time that is how it worked. We had a recession, people lost their jobs, then they lost their house. Very different from people loosing their house, then we have a recession, and last they loose their jobs.

Anyway I'm off subject. USA Today is reporting that people are loosing their houses due to job loss. And for most of these people none of the government bailout will help. Makes me sad to think about it. I mean really, the people who we should be helping, after they have done nothing wrong, no stupid mortgage, no more house then they can afford, non of that. Just not expecting to be out of work for a year.

You can read the story here.

http://www.usatoday.com/news/nation/2009-06-22-foreclosure_N.htm

More small business closing

2009-06-23T07:43:00.000-07:00

Video Maniacs is closing. I'll be honest I just hate it when I am forced to buy anything and everything from a chain store. Yes, I still have some choices, but not when it comes to renting a video. I am now forced to go to Blockbuster or Netflix. I have nothing against Blockbuster or Netflix, they both are just large chains. I like to see the a spot for the little guy is all.

On a different note, I heard that a large home improvement store laid off workers, workers who had reached their 90 days and were about to get benefits. The had a new set of workers to start. Someone is going to have some bad Karma. I've made a note to myself not to shop there.

You may ask what this has to do with housing? nothing really. It does speak to the economy as a whole. Truth is, it's not a good picture.

Nevada unemployment sets record

2009-06-22T11:21:00.000-07:00

11.3%. That is high. But what gets me is that records only started being kept in 1976. I'm having a hard time believing that. We have unemployment figures going back to the depression, but nothing for the state of Nevada before 1976? We have to have something before 76.

The scary thing is unemployment only tells 1/2 the story. How many people have had their hours cut. It seems like everyone I know falls into this group. State of Nevada employees being furlowed one day a month, hospital workers either getting their pay cut outright, told they will be only working 35 hours a week or even nurses being called off due to lack of patients. All these people are not unemployed, yet they have been forced to cut back on their spending. I'd bet some would be better off, at least in the short term if they were laid off. Between how little they make, the cost of day care and what they would get from unemployment insurance.

California will give you a tax credit of 10K

2009-06-22T11:17:00.000-07:00

What I'm having a hard time understanding is what happens when people try to sell these houses. Will the bankrupt state keep funding this Tax Credit? If so why would anyone buy an exicting home when they get a 10K tax credit with a new one?

Why does everyone want me to buy a house?

2009-06-22T10:07:00.000-07:00

I'm 41, a single mom with 3 kids. Okay, so I have to move. I'm renting a house. The land lady has decided to sell the house because she owes 150K more than it's worth. She is doing a short sale. We are moving over the summer because if the kids were going to switch schools I wanted it to happen over the summer. Everyone seems to think now is a good time to buy.

I don't.

My main reason is that I plan to move out of the area in 10 years. I live in Reno Nevada now. I want to move to the ocean once my daughter is 18 (ish) Right now her dad is in her life (all 3 of my kids have to same dad, and they see him on a regular basis) In my opinion it would be immoral for me to move them away from him.

My next reason is that I'm not sure we have reached to bottom. Nevada has been hit hard by the housing bubble, and there is a product out there called a option adjustable rate mortgage, AKA bad news. They will be resetting in 2010. In another words the shit is about to hit the fan in housing AGAIN.

To learn more about these loans, check out this graph. http://socializedlosses.blogspot.com/2009/01/update-of-mortgage-reset-graph.html

Don't get me wrong. I believe housing is affordable. I sold out of the bubble in 2004 because I could see people making 60K a year had no business buying 300K-400K houses, they just can't afford it. Now houses to incomes look much more affordable.

Now it light in my first paragraph... I want to move, I want to move more than almost anything... and I could buy a house, I could even afford to pay the mortgage, I might even pay less than rent. BUT I want to move in 10 years. I've wanted to move for years and years. I'm not sure I would be able to sell a house for what I paid, or even owed in 10 years.

People are going to be feeling very burned by housing for a very long time.

I want to give special thanks to Ican't internet.

http://www.icantinternet.org/2008/11/does-adsense-really-work/