Gotcha Griff - Thats sorta what I thought, but wanted to be sure before I replied.

I am scared to death of going that deep into debt too. I live very modestly because of that opinion. I am looking to get a larger place with my own yard etc. Thats really gonna cost me. . . both monetarily and stressfully.

I have a buddy living in the San Diego area with the intent of selling and building back here plus doing the travel-home thing. It should all be manageable if the market doesn't permanently tank. I guess we just have to do things our own way. I trust my hammer more than the job or real estate markets.

Classic. I know whta you mean. We live in a nice place in a nice neighborhood on about 1/3 of an acre. We are looking at 198 acres and a final place for a home now. It will be a difficult task but we are going to remain positive.

Re: Tax Break.

HUUUUUGE!

The tax break isn't worth it anywhere. As Dave Ramsey says, you end up paying $10,000 to the mortgage company to avoid paying $3,000 to the IRS.

/devil's/While that is traditionally true, have you considered the effect of the baby boom generation on this traditional strategy? Every boom/bust cycle we've experienced since 1945 has been directly tied to the habits and needs of the boomers. As boomers age they will downsize. In many cases they owned second and third properties as investments. They will sell these properties as the need for cash comes along combined with their diminishing desire to have the extra concern of multiple properties. There are nowhere near enough buyers for all of the existing properties + additional properties as the builders continue to do what they do. Home prices cannot not escalate the way they have traditionally. The home as primary investment just might not work for our generation the way it did for our parents./advocate/

Now that is a perfectly respectable, legitimate reason to purchase a home.

The bestest. :thumb2:

The mortgage that Aliantha is talking about is available in the US and can be quite effective. The drawback is our tax laws are different and it is possible to land in a position where the interest is no longer deductible and there are further ramifications on the death tax.

I know that something is supposed to appreciate to actually be considered an investment, but there's still something to be said for building equity, right? Obviously this is not the case in the crazy-ass California markets, but around here the prices for rents and mortgages are basically the same, so my understanding is that buying is usually a better idea as long as your overall budget is stable.

If your plan is to pay it off and live in it payment free then it is definitely a better plan.

If you plan on living in it until you find different place then you have to consider whether it is an increasing or decreasing asset.

Unfortunately too many people with that plan find they can't afford the taxes and maintenance when they retire.:(

My Realtor called me tonight to tell me the bank picked someone else, but if they change their mind or don't make it through escrow, I'll get it.

:(

I'm sorry, Radar. That really sucks. We were told that at first, and for 24 hours thought we had lost the house. By then, you've already mentally moved in and starting repainting walls.

Let us know how it plays out - they could call you back!

We had already waited nearly 2 weeks to hear from them. I was making a checklist of all the stuff we had to do before moving in.

Sorry to hear, Radar. :(