First Home

[marshhunter]

What was the first house you purchased?

I will be looking to purchase in the next couple of months. The current housing market has me confused as to which way to go.

Which would make the most financial sense?

Do I purchase a new home, with the plan to sell it in 5-8 years?
Do I purchase a pre-owned home, with the plan to sell in 5-8 years?
Do I purchase land (1-2 acres) and put a small barndominium on it, in the location of where I would want the shop, and then build a house in 5-8 years? This would likely max out my budget.

My end goal is to have a couple acres to live on and not have to deal with HOA, and have a shop for ranger, boat and projects.


On the other hand do I sit tight and hope for the housing market to cool off? House prices are absolutely insane right now, and raw land prices are not far off.

-Stephen

[bugleboy]

Prices do seem crazy! But, guess what the interest rate was on my first house in 1981? 18%! But back then, you could get close to 15% on a CD! My how times have changed!!!

[b.latiolais]

What was the first house you purchased?

I will be looking to purchase in the next couple of months. The current housing market has me confused as to which way to go.

Which would make the most financial sense?

Do I purchase a new home, with the plan to sell it in 5-8 years?
Do I purchase a pre-owned home, with the plan to sell in 5-8 years?
Do I purchase land (1-2 acres) and put a small barndominium on it, in the location of where I would want the shop, and then build a house in 5-8 years? This would likely max out my budget.

My end goal is to have a couple acres to live on and not have to deal with HOA, and have a shop for ranger, boat and projects.


On the other hand do I sit tight and hope for the housing market to cool off? House prices are absolutely insane right now, and raw land prices are not far off.

-Stephen

I'd do this. The other two options sound like you'd be buying high and selling low...
Plus, you could lock in an insane interest rate on your property you plan to stay on forever.

[panhandlehunter]

I'd do this. The other two options sound like you'd be buying high and selling low...

With the way it’s been it would be like buying high and selling higher.

[jdg13]

I bought my 1st house back in August. Been looking for a few years trying to get in the neighborhood I grew up in. Small houses built in the 50s people want crazy money for because rich folks tear them down and build mcmansions. Ended up getting lucky buying from a family friend for a fair deal on a nice original home. I could have bought a much bigger, much newer house for less, but I wanted the area. I'd buy the land and build up as budget allows until you get to your ultimate goal. Holding out and getting what I wanted was worth it over buying/selling, just my opinion.

[TKRanch]

If planning to stay in the home for only 5 years, just very important to remember that you make your money when you buy it, not when you sell it! Sometimes, when only holding a home for a few years one does not realize any real profit after selling costs are calculated. The market is certainly crazy and maybe it won't stop, but just remember to buy right,then all is ok. Good luck!

[Bassdeer]

Do I purchase land (1-2 acres) and put a small barndominium on it, in the location of where I would want the shop.

This but don't build a house. My buddy did this and made half house and half storage. then a few years later he built a pole barn and then finish the rest of the barndo out for his house.

[Goldensammy]

What was the first house you purchased?

I will be looking to purchase in the next couple of months. The current housing market has me confused as to which way to go.

Which would make the most financial sense?

Do I purchase a new home, with the plan to sell it in 5-8 years?
Do I purchase a pre-owned home, with the plan to sell in 5-8 years?
Do I purchase land (1-2 acres) and put a small barndominium on it, in the location of where I would want the shop, and then build a house in 5-8 years? This would likely max out my budget.

My end goal is to have a couple acres to live on and not have to deal with HOA, and have a shop for ranger, boat and projects.


On the other hand do I sit tight and hope for the housing market to cool off? House prices are absolutely insane right now, and raw land prices are not far off.

-Stephen

I see you are in Cypress. I am as well. You planning to stay in the area? If so, I'm guessing 1-2 acre lots are tough to find. My wife and I purchased our 1st home in 2009. Sold that home and bought a new-to-us home in August 2020. We only planned to stay in our 1st home 3-5 years. I wanted to move out to the sticks somewhere and build on a couple of acres. Things changed after kids. We have two boys in grade school, so a family-friendly neighborhood and schools were our top considerations when buying our 2nd home. HOAs suck but it is a sacrifice I was willing to make, at least until our kids get out of school. If you are married and have kids or plan to have kids, consider how/where you want them to grow up and where they might go to school. Whatever you do, don't become house poor, especially if you are married. This can be very stressful. Also, when making your decision, be sure to pay attention to property taxes and take those into consideration when you are house hunting. They vary from neighborhood to neighborhood, so do your homework. Best of luck.

[FCoDxDart]

I bet prices only go up, you won't lose money on a house if you decide to buy it. Especially as popular as Texas has been. If you can do option 3 and be fine financially I'd do that if you can find land where you will like to be and not want to move.

[slayr]

I’d buy the land and build. You get exactly what you want and with a little effort on your part you can build a good sum of equity with just your sweat and time.

I did this on my last couple of houses and turned incredible profits when selling.

[boy wonder]

Only you know what's best, do what you want. But, I intended to sell my first house after about 5 years, sold it after 27 years. I hate moving!

[ccbrown50]

I purchased a small cheap fixer upper for the first house, beautiful piece of property but the house needed lots of repairs. I renovated it doing most of the work myself and sold it after two years. Two years is key to not pay capital gains tax. Took the profits and purchased my dream house. Wouldn't change a thing.

[150class]

In the same boat. Was starting the process 8-10 months ago but held off last second. I have no idea what to do either but believe we are going to say screw it and start again. Rates are low and hopefully the bubble doesn’t pop.

Would love to do land and a barndo but not many areas around the woodlands to do that.

[Texastaxi]

We picked option 3, and we LOVE our barndo.
The only problem is that my wife says, "I wish I would have known that I'd like this as much as I do ... we'd have just made it bigger and been one and done".

[BLee15]

I built a new house and moved in July of 2020. Our floor plan when we signed the contract in 2019 was $310k same floor plan is now $380k. This is in Fort Worth. IMO if we move we’re building new again. Really nice being able to pick everything out how you want it and don’t have to worry about anything major going wrong for at least 10 years probably fingers crossed.