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check my user info. see if you notice anything different Let me… - don't let the bastards grind you down.
check my user info. see if you notice anything different

Let me share what I'm going through...might be interesting to anybody that comes along.

I'm building, and it won't be done until next year. I'm buying at today's prices for a house that I won't have to start paying on until 2006. I'll have two raises by then.

Plus I got an interest only mortgage, so anything I pay extra will go to principle. For the same payment I'd be making on a 30-year fixed I'll be paying off slightly more of the mortgage each month.

Also, there's a very good chance that while my house might not be worth 30% more by then, it'll be worth a good deal more than it's worth now. Why? I'm building a 4-bedroom house in an area that mostly has 3-bedroom houses, so it sets me apart. I'm putting a decent amount of options in, but I'm not pricing myself out of the neighborhood.

But I'm also in Florida. We've had massive housing price rises here in southwest florida (Sarasota county beat Vegas last year and Lee county was right behind) and while that'll slow, those baby boomers are retiring and they're buying.

So, on the one hand there are a LOT a LOT a LOT of developments going up around here catering to them. The houses start at $350,000. My house and lot cost about $230,000, though my mortgage will be higher because I'm a first time homeowner and I threw my fees and down payment into the mortgage. We have the cash for the fees but I'd rather have a big no-money-down mortgage and pay off 20% all at once to get rid of the PMI.

But here's the great part....those developments with houses starting at $350,000 are pushing my non-deed-restricted neighborhood up. My house is going to get appraised soon...I know the model I bought is already $20,000 more than what I'm going to pay, and I'm sure the lot appreciated already as well. My house and lot might now be worth almost $300,000. If the market tumbles less than 30%, I'm still okay.

But there are yet other factors. There are a couple of houses that are dying for renovation, so when the market slides and those houses get pushed down lower, someone will come along and completely revamp them...there'll be doctors and lawyers looking to stay non-deed-restricted who'll see these houses a few miles from the bay and a mile from the interstate as a goldmine. My house price will go up from THAT as well.

And, worst case scenario, the house prices tumble more and nobody buys some of the houses that need renovation, I still have a beautiful house in SW florida where most old houses are 1200 sq. ft. cinderblock shacks with flat metal roofs. I'll have a brand new home with up-to-date hurricane protection features.

So, to sum up, just use your head. Know your market and know where you live. Choose wisely and take a risk....it's inevitable that the market will go up, as long as you can stay in your house for a few extra years should anything go badly.

---- so am I delusional, or did I make a good point?
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