Possibly sad news

[flaya564]

Well, I'm trying to grown up and buy a house. From what my mortgage broker says, I need a few thousand dollars more then I have, to go to settlement.

2 Questions

1. For all you home owners, Is selling my bike to get the house a good idea?

2. If so, What do you all think I should sell it for?

2003 Lightning XB9S
List of mods:
-CR Headlight
-Chopped Tail
-Custom LED tail lights
-Hidden Brembo Rear Brake
-Corbin Seat
-Black Header wrap
-Jardine Exhaust
-190mm rear tire
-Rattle can paint and vinyl
-Extra Set of Yellow Plastics
-Blackflash Axle sliders
-Diesel Moto Tail Lift
Box of extra parts

 

[theoctopus]

1. Yes. Without a doubt. Owning your own home, assuming you are financially responsible, is better than owning a motorcycle.

2. Unfortunately, aftermarket parts do not add value to the bike. How many miles on it?

 

[BuellerPilot]

Can go either way.

If you need CASH for a downpayment then selling it would benefit you if you have no other options to obtain it.

It's a debt to income ratio and assets play a role. Not only do they look at what monies are comming in and what current debt you have (credit cards, car payments etc.)but they look at what your overall debt is to your liquidable assets. ALWAYS make it appear you have more valuable shit then debt you owe. Having your bike listed as a liquidable asset helps too. When I had to list liquidable assets I included everything I owned with value from bike trailers, to bikes (motorcycles, quads/ATV's, even my expensive Mountain bikes), cars, trucks, I even included my garage full of parts that weren't even actually installed on my car yet but included the overall value of my car as if it were a finished project. I included everything I could sell tomorrow if I had to make a few mortgage payments if I were financially in trouble.

It depends which you need more of (cash, or a shown liquidable asset)and should be answered by your future mortgage lender, hopefully it being an asset has more benefit then the cash value you'd get for it. You can sit down with them and give them your list of assets and have them work up your score (And list it as TOP dollar NADA or Kelly Blue Book value), then have them work up your score with the Buell being absent from the asset list baring in mind in real life your not going to be getting as much cash for it as you want.

Hope that helps.

~Mike..........

 

[flaya564]

I know aftermarket doesn't matter, just wanted to list them. Miles: 19,123.

Man BuellerPilot, thank you for the explanation. It is all down to the down payment. My credits great and the only debt I have is my enormous student loans, which has kept me from saving enough.

 

[Breto]

Some thing to think about,Because its your first home is the option of intrest only loan.What this means is you only pay the intrest,And the prinsible stays the same on your loan.Your repayments will be much cheaper monthly.Unless you are going to throw heeps of cash on your loan, you dont pay much off in the first few years anyway.You are probibly buying the house at a good price,Because the economy is down at the moment.So this means as the economy grows, so does the value of your investment.Once you build up some good capital gains, sell.you will now have a good deposit to step up to a better home.Talk to your broker about it,it may not be for you.Im a working man and this metherd has worked for me.

 

[xtremelow]

Sucks to sell the bike but IMO it would be the best bet. Take off the aftermarket and sell it stock. A home will shelter as the bike will do nothing for you in the development of a family. Buy another bike later when you can afford both.

Bought Buellchicks bike 1 1/2yrs ago with about the same miles. Payed $3200.

If I were to sell her bike I would ask $3500, but plan to get about $3200. IMO bottom price of an XB is $3Kish.

 

[okey]

i want to be completely honest in saying that if you are in need of only a couple of thousand and it's something that you can't obtain or save for then without being disrepectful can you really afford to purchase a home and still live in relative comfort?

 

[IYAOYAS]

Have you settled on a house yet? If you haven't look to buy a forclosed home, now is the time whenyou could look to purchase something that could cost you 20 percent less than it is worth, that making the down payment, your couple grand, a non issue.

 

[Squattybodyjr]

No it is not a good idea to sell it, if you have waited this long to buy a house it can 3 to 6 months more just save your money. When i bought my house i had my payroll department not take taxes out of my paycheck for 2 and half months and came up with an extra 3 grand that way. also at tax time youll get house tax deduction so you will more than likely break even.

 

[kalifornia]

not sure but with the deduction of interest payments you may save enough to have both, assuming you can come up with the down payment. you'll almost certainly loose alittle money selling your Buell. But a bike isn't worth sacrificing food and clothes for. good luck

 

[GSXdoubleR88ciNINJA]

Looks awesome! That CR light looks killer on the XB S. Really you'll probably get 2000-3000 $ out of it. [sad]

 

[flaya564]

The house I'm looking at is a foreclosure. More house then I need but it's in a great neighborhood and a good price(I plan on low balling them a little.) As to affording it, the payment will be around 700 a month, not bad at all IMO, better then renting for that much.

I just had no idea that the cost of closing would be as much as it is. For some reason, I only thought I'd be paying the 3.5% down plus inspection costs. FHA 203K loan, is what I'm getting...It adds extra money for renovations, which this house needs.

My mortgage broker feels I can afford it but would like to make sure I can afford the up front costs before allowing me to submit the offer. Kinda afraid to lose out on this house because I waited too long.

All and all, a little over 3k is realistic but I think I may kick myself for it. UNLESS, I can find one of those guys that feels it worth tons, being a collectors item, lol... I'll just keep dreaming on that one.

 

[XBChuck9]

i want to be completely honest in saying that if you are in need of only a couple of thousand and it's something that you can't obtain or save for then without being disrepectful can you really afford to purchase a home and still live in relative comfort?

I completely agree. Owning a home isn't all it's cracked up to be. Especially in the post housing bubble market. Your first home shouldn't be an investment, it's a roof over your head. You'll pay about as much in interest than if you just rent a while and save until you can REALLY afford it. Think about this. An intrest only mortgage payment on most houses typically approaches a typical rent payment on a comparable house. So in both scenarios you're paying someone else to live in a house. In the interest only scenario, YOU are responsible for repairs and upkeep. That said there are benefits to owning a home, obviously. But if you have to ask, you cant afford it! And DONT listen to your mortgage broker. He just wants to sell you a mortgage. If you're serious about buying a home and being in good financial shape, you might think about selling the bike anyway and stock away every spare dollar.

 

[vroom]

It all depends on what you can afford. I don't recommend trying to cut it close on how much house you can afford.
If you've got payments on the bike, you can't afford it in my opinion. I'm certain to be in the minority on this one, but payments are for the birds, again, IMO.
Full disclosure: I'm 28 years old. My only payment is a HELOC payment on a house. The house is worth 125k, I owe 39k on the heloc with a payment of $250. We should have it paid off around the end of next year. My wife and I have average income for people with no degree(her) and and associates(me). I know people that make twice what we make and are broke as a joke.
We also have 2 kids. I'm not trying to brag. I only want to show what a couple of people can do when they don't have any payments. I'd be debt free now were it not for buying the buell and a new honda element a couple years ago. Other than that, it's not like i'm living like a hobo.

But everyone's got to live their own life and decide what they want to do.

Also, don't let a mortgage broker tell you what you can afford.

 

[303xb]

fuck being house-poor. property is a terrible investment.

rent a house/apt.

look, you could rent a house (say the rental is worth 250,000) for 1200/month. Your mortgage on a 250k house would be almost double that once you take into account taxes and interest. Not only that, but while renting, you pay zero maintanence...if you buy a place, if something breaks, landlord fixes it.

Take the $1200 differential you save every month and invst it in the stock market or a 401k where the yield will far exceed the yirld of your property.

 

[vroom]

You could say the same thing about the stock market over the last 10 years.
Also, maintenance and taxes are built in to the cost of the rental. My sister rented her house out for more than the payment. By a lot.

 

[xtremelow]

Rentals are usually more since the owner has to cover his ass, bit Luke someone is going to buy a house and Lise on renting it out.

I know my Apt rent is way kore than a house payment in my area but it fits my needs and that is the bottom line.

If the house is what you need not want go or it.

 

[cowgirl]

Just think about it...if you sell the bike and buy a house, how long do you think it will be till you get another one? A lot of people out there with regrets doing it that way.
Best of luck

 

[MartyG]

Owning your own home is great, but besides having the money for the down payment and being able to afford the monthly payments, you need to make sure you have enough for an emergency fund. You said the loan will be enough to cover renovations that you need also, but what about the water heater that goes out a month after you move in, or the roof that now needs replacing? Or even your car that chooses to break down right after buying the house? if you don't have an emergency fund in place then these things could be devastating. A deal is only a good deal if you can truly afford it.

 

[wiznut]

There is a fun tool out there called a Rent/Buy calculator... Tells you whether it is better to rent or buy based on different variables you set. Play around with it a bit.

http://www.nytimes.com/interactive/business/buy-rent-calculator.html