Grambles Crossroads (House Building Thread)

[2013R]

Weird how forum stuff effects real life.. we are thinking about not renting the bigger place.. and trying to buy instead. (rent going from 2200 to 3400 or so.) Even though a house would cost us at least $4000 a month, it seems another 500-600 to own rather than rent is worth the sacrifice. Only issue is we don't even have 5% down in our savings side of things. (For a 700-800k house.) $40k cash? Plus we want to have at least 10-15k cash buffer after all is done for backup. I did the big no-no and withdrew my tiny 401k stash from a couple jobs ago to go towards the down. Comes down to do we want to be renting for the next 20 years.. with no results, and have a retirement.. or invest in a house, and hopefully make a little money on it over the next 20 years.

 

[chc29]

Weird how forum stuff effects real life.. we are thinking about not renting the bigger place.. and trying to buy instead. (rent going from 2200 to 3400 or so.) Even though a house would cost us at least $4000 a month, it seems another 500-600 to own rather than rent is worth the sacrifice. Only issue is we don't even have 5% down in our savings side of things. (For a 700-800k house.) $40k cash? Plus we want to have at least 10-15k cash buffer after all is done for backup. I did the big no-no and withdrew my tiny 401k stash from a couple jobs ago to go towards the down. Comes down to do we want to be renting for the next 20 years.. with no results, and have a retirement.. or invest in a house, and hopefully make a little money on it over the next 20 years.

so you did buy a house before? or you've already withdrew from the 401k for the upcoming down payment? Isn't there a first time home buyer exemption or something with regards to early withdrawal penalties?

 

[2013R]

so you did buy a house before? or you've already withdrew from the 401k for the upcoming down payment? Isn't there a first time home buyer exemption or something with regards to early withdrawal penalties?

no, never had a house. always dreamed of one. if i hadnt bought a new car every year i'd prob have one by now.

very interesting info on less penalties for 401k withdrawls.. but i doubt it applies in california... usually doesnt..

 

[chc29]

no, never had a house. always dreamed of one. if i hadnt bought a new car every year i'd prob have one by now.

very interesting info on less penalties for 401k withdrawls.. but i doubt it applies in california... usually doesnt..

I'm afraid it only applies to IRAs, but I'm not 100% sure.

 

[2013R]

I'm afraid it only applies to IRAs, but I'm not 100% sure.

least it wasnt huge.. just another 10k in the end, towards a down.

 

[troyguitar]

With the cost difference between living here and living in LA, I could afford to fly to LA almost every single weekend if I wanted :lol:

 

[BillyBob]

So, we made a decision yesterday at the Indy Race as I was sitting in a new Civic SI and accord Coupe. I'm gonna hang on to the car for now. Modding has ceased. The parts off the car will be sold and I make take a few off possibly. However of things seem tight and were looking for a bigger down payment I will sell the car. The math says we won't need to. She will be slowing up on payments. Which will add another 600-700 month in savings. Best compromise we could do at this point with a safety net.

This seams like the most reasonable option. I wanted to tell you to hang onto the car, because my biggest regret is trading in my MKV (even for a MKVI.. it's not the same..)
Still, if you do sell it, it's for a damned good reason.

 

[ToMMyGuN]

Weird how forum stuff effects real life.. we are thinking about not renting the bigger place.. and trying to buy instead. (rent going from 2200 to 3400 or so.) Even though a house would cost us at least $4000 a month, it seems another 500-600 to own rather than rent is worth the sacrifice. Only issue is we don't even have 5% down in our savings side of things. (For a 700-800k house.) $40k cash? Plus we want to have at least 10-15k cash buffer after all is done for backup. I did the big no-no and withdrew my tiny 401k stash from a couple jobs ago to go towards the down. Comes down to do we want to be renting for the next 20 years.. with no results, and have a retirement.. or invest in a house, and hopefully make a little money on it over the next 20 years.

Downgrade the charger for a house? Seems like a good way to free up monthly income?

Sent via tapatalk

 

[Baldeagle]

I'm afraid it only applies to IRAs, but I'm not 100% sure.

You are right. IRA only.

http://www.section72.com/html/72_t_.html

Section 72t of the IRC provides for 16 exemptions from the early withdrawal penalty from an IRA. One of those exemptions is for the first time purchase of a house. Section 72(t)(8)(B) describes that specific section of the code. The amount of penalty free withdrawal however is limited to only $10,000.

 

[chc29]

You are right. IRA only.

http://www.section72.com/html/72_t_.html

Section 72t of the IRC provides for 16 exemptions from the early withdrawal penalty from an IRA. One of those exemptions is for the first time purchase of a house. Section 72(t)(8)(B) describes that specific section of the code. The amount of penalty free withdrawal however is limited to only $10,000.

Hope I'm not derailing too much here, it might interest other people in this thread. Do you know if this is a straight withdrawal or does it work like a loan to yourself? Meaning will you be able to put the $10000 back later or once it's out you can't replace it beyond the $5000/yr contribution limit?

 

[grambles423]

House 1 (Not many pics) $230K:

House 2 (Not a big fan and a little expensive for my taste) $250K:

House 3 $210K:

House 4 $220K:

There's a few more that we found around $180K-$200K. I'll have to get my wife to send me those pics.

 

[mattley crue1]

house 1! tudor style always looks so nice

 

[troyguitar]

We're looking at the same places it seems, though they are slightly crappier and more expensive out here. My requirements are 2+ car attached garage, central air, and a decent amount of space - preferably fewer big rooms vs many smaller rooms. Similar price range of 200-300k.

Ideally we'd go for 3-car garage but that does not seem to exist out here... strange considering the number of people who drive big trucks and work on them plus ATV's, motorcycles, snowmobiles, fishing boats, etc.

I disagree with people suggesting to get something small. Space is important, especially for people with hobbies - and you will only ever need more of it in the future. I currently live alone in a 3-bedroom townhouse and fully use all 3 bedrooms by myself.

 

[2013R]

those are mansions. #1 for me.

 

[grambles423]

$230K