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#1
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Well, I think it is time for me to buy my own place. I'm not really getting along with my roommates and my bankroll exceeds my means (my rent is $300 [img]/images/graemlins/smile.gif[/img]). So I've decided that I will definitely be purchasing some sort of house or condo once I get back from the Aussie Millions.
I actually looked at some places last year but didn't actually pull the trigger (which was good because I had underestimated how much taxes would be and I overestimated how much I could afford). I've learned a lot since then and this is what I've come up with: 1) I think spending anywhere from 150-180k on at least a 2 bedroom townhouse (3 preferred, maybe a house but I doubt that). 2) I plan on putting 10% down (so that I don't freak out if I hit an enormous, catastrophic downswing). I know I should be trying to avoid PMI but I'm not entirely concerned about it. 3) I will not have any roommates, but one room will be a dedicated office space (that I can write off). 4) I think my ideal strategy for paying off the house will be through cash games, while my tournament winnings will go toward my bankroll. For instance, I'd MUCH rather play a highly beatable game ($1/2 or 2/4NL online) and make $5k/month to put toward a double mortgage payment and living expenses than worrying if I have a losing month at tournaments, which, of course, is very possible. I obviously have at least a few years worth of living expenses put away as well, which will help. There are a LOT of places for sale in Pittsburgh so I think the market is good at the moment (and could be better in 2 months when I actually search). Lots of new construction and all 'aht. One thing that I forgot to mention is that as far as I know I'm not eligible for any first home buyer deals because my income last year was too high (I think your household income has to be ~60k or so to be eligible). Am I wrong about this? Any other considerations? I'm just looking for some general advice. I truly appreciate any help or advice you guys can give me. PZ, IWEARGOGGLES |
#2
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Prices in Pittsburgh have been pretty stable so far. They never really went up very much, so they haven't really gone down much either. As a result, sellers aren't really lowering their prices much. You should be able to find something good in your price range though, and not have to worry that a year from now it's going to worth a lot less. Obviously, go for a fixed rate mortgage, and have the house inspected by somebody good.
Look at the comps in the neighborhood, come up with a price you're willing to pay, and don't stray very far from that price. If you don't get that one house, they'll be another one. I'm a real hard ass when it comes to negotiating on houses and I haven't been unhappy so far. I've bought several, and every time I've walked away from a house it's been the right decision and something better has come along. |
#3
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Thanks for responding mmctrab.
Yeah last year I went looking a lot and I didn't buy simply because I didn't find anything that I felt was perfect for me. I mean I guess I have a laundry list of things that I'm looking for but I'll be more lenient once I'm back from Aussie. I really, really need to live by myself. Anyways, my realtor is actually a close friend of the family so I think she'll be able to do well with the negotiating aspect. She is pretty intent on making sure I get a good deal for whatever I buy. She has definitely told me prices have dropped (it seems that way to me as well because I think prices are different from last year when I looked) and that it is a good market to negotiate in. |
#4
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shop for the best mortgage before you shop for the house, find one with out pre payment penalties try to avoid high points and fees and so on so u dont fall in love with a place then have to go beg to get approved and have them give you [censored] rates
its good to know the price you can afford and not the payments bc they can always give you lower payment (then u end up paying 10's of thousands more in interest) know that at closing itll be more then just the 10% down there will be a lot of closing costs there will be a lot of other exp. pmi, title insurance,points, fees, moving exp, etc. just research research research make sure its a house thats a good deal and not just one you like, houses are usually the biggest investment in life so treat it as that, i think thats pretty much the basics, somewhat common sense but good to keep in mind |
#5
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Why not just rent a place for yourself? Since you have the money. Buying and maybe selling in a few years if plans change could be difficult. Are you certain you're going to stay there for a while?
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#6
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I have a friend who wants to sell a nice townhouse in Pittsburgh. [img]/images/graemlins/smile.gif[/img] You two should hook up.
I assume you play professionally. It sounds like you're playing fairly low stakes. Is this true? I personally wouldn't want a house payment as a 1/2 pro. When you say you have living expenses saved up, are you including the house payment? |
#7
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I didn't really think about shopping for the mortgage before shopping for a house. That is a really good point.
I picked the 10% figure because I factored in closing costs, etc. I do play professionally and I play higher stakes tournaments. I've done very well the past couple years. I am not a 1/2NL pro, I just thought it would be a good idea to take a low variance approach to actually paying for my life expenses, rather than worrying about a bad month in tournaments. Some very good stuff in this thread! Keep the good suggestions rolling! |
#8
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i have been wanting to start investing in real estate for awhile now, and i just want to know from any poker players that own a house how hard is it to get a mortgage if your occupation is a professional gambler.
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#9
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[ QUOTE ]
i have been wanting to start investing in real estate for awhile now, and i just want to know from any poker players that own a house how hard is it to get a mortgage if your occupation is a professional gambler. [/ QUOTE ] So true, lining up some creative financing is a good option you probably have more connections than you know as a poker player for this kind of thing. |
#10
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[ QUOTE ]
i have been wanting to start investing in real estate for awhile now, and i just want to know from any poker players that own a house how hard is it to get a mortgage if your occupation is a professional gambler. [/ QUOTE ] It's hard for anyone to get a mortgage now, especially if you don't have all the paper trails. If you're a pro gambler, make enough and have the proper documents to prove it you should be in reasonable shape. |
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