1. Would you like to join the IL team? See open jobs!
    Dismiss Notice
  2. What can you teach someone online? Tell us here!
    Dismiss Notice
  3. Take the 100 Days Positivity Challenge : Join Here
    Dismiss Notice
  4. If someone taught you via skype, what would you want to learn? Tell us here!
    Dismiss Notice

Buying a home in US when on H1 visa?

Discussion in 'Money Matters' started by indianlady1, Nov 12, 2009.

  1. indianlady1

    indianlady1 New IL'ite

    Messages:
    87
    Likes Received:
    0
    Trophy Points:
    6
    Gender:
    Female
    Hi Ladies,

    Considering that home prices are down in the US, we were considering buying a home here...Just need your thougts on if you think its a good idea

    1. I'm on H1 visa but may get EAD soon
    2. We plan to stay in the US for 5-8 years


    Do you ladies think its a good idea? I understand u may say wait for EAD but I also tend to think if you say let the waves stop then I'll take a swim in the sea(i know i know poor translation of a Tamil phrase :)..things will never happen...
    So why wait ..there will always be oneissue of the other..buy when you can ..and prices being down is one of the best times to buy..

    What r your thought ladies

    Thanks
    IL
     
    Loading...

  2. SriVidya75

    SriVidya75 Platinum IL'ite

    Messages:
    7,302
    Likes Received:
    954
    Trophy Points:
    270
    Gender:
    Female
    IL

    Go to this link and read Nandus reply about buying a home in US

    http://www.indusladies.com/forums/me-and-my-spouse/75179-i-dont-like-dh-idea-3.html

    It might seem as easy as it looks but everything good or bad comes with a package. First of all we have to assess our financial situation and the funds available to us in short term and long term before leaping in to the housing market.

    Did you verify how much home you can afford?
    which area you want to buy?
    what is the down payment you want to pay?
    what % of interest you might get?
    how did the market rate grow over years?
    in current situation for the market to pick up and the home prices to go up...it takes atleast another 5 to 8 yrs...so can you wait that long to sell the house?
    How long are you planning to live in that house?
    is it to save the apartment rent? or for an investment purpose?
    do you know how much is the property tax and insurance costs for the home in your area?
    Do you have enoguh moeny saved for your retirement and child education?
    Do you have enough emergency fund to survive in case of job loss? it should include your new home monthly payment and taxes and insurance etc.

    There is lot of research that goes into home buying. it takes lot of time, effort and work to buy a home...
     
  3. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

    Messages:
    5,708
    Likes Received:
    9,050
    Trophy Points:
    440
    Gender:
    Female
    IndianLady1,
    First of all, when you say you are planning to leave the US in 5-8 yrs, how sure are of of that plan? What if you decide to stay on? Do you have a plan B? It is always important to have one. In that sense, buying a house may not be such a bad idea if you have enough of other investments. Diversification into real estate may be a wise decision. There are a lot of implications of buying a house. Taxes/maintenance/mortgage etc play an important role.
    If you are looking at buying a home for the sheer pleasure of living in one and if your financial situation is stable then it may be a good time since the market looks like a buyer's market right now. If you are thinking about it for purely investment purposes, then think again. It may be wiser to invest in a REIT( Real estate investment trust - Wikipedia, the free encyclopedia) index fund, which are of two types and primarily invests in real estate markets. The fund will grow/slide along with the real estate markets. It may be difficult to sell a house when you wish but you can dump the fund whenever you please. REIT index funds are a great way to diversify a portfolio and get some real estate exposure without actually having to buy property.

    Good luck in whatever you choose to do.
    L
     
    sindmani likes this.
  4. Pavarun

    Pavarun Silver IL'ite

    Messages:
    1,480
    Likes Received:
    21
    Trophy Points:
    70
    Gender:
    Female
    The risk around buying a house while on H1 and waiting for your GC is the whole employment stability situation. Your GC process is directly tied to the employer, so how confident are you that the employment is stable? (You don't have to be 100% confident, nobody will be - but are you willing to take that risk). Also if the GC applicant loses his job do you have a fallback plan? You need a fallback plan for the period before you get the GC, and enough money saved to tide you through the job-seeking process after you get the GC.

    Also it is perfectly acceptable for you to decide that there is a slim chance of job loss, so I am willing to take that risk since I will do XYZ in case that happens.

    Just need to think through all these before you do that.

    I also agree with Laks, there are other ways of achieving a real estate exposure without actually having to own property. You can look into that as well.
     
  5. SriVidya75

    SriVidya75 Platinum IL'ite

    Messages:
    7,302
    Likes Received:
    954
    Trophy Points:
    270
    Gender:
    Female
    LAKS

    Good Info dear...thanks for sharing:)
     
  6. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

    Messages:
    5,708
    Likes Received:
    9,050
    Trophy Points:
    440
    Gender:
    Female
    SV - Glad you found the info useful. REIT is a good way to diversify a portfolio and balance it out but REIT has an inherent risk factor, if the housing markets crash, REIT will tank as well.
     
  7. indianlady1

    indianlady1 New IL'ite

    Messages:
    87
    Likes Received:
    0
    Trophy Points:
    6
    Gender:
    Female
    Thanks Srividhya, Laks09 and Pavarun..
    I think my primary reason to buy a house is to live in it. As a child I always lived in an independent house so sort of want the same, though I don't have any hassles renting..
    People say buy in India but that will be pure investment..we may not get to live in it for a long time ..
    But I do agree one cant foolishly indulge in desires ....

    And Yes Srividya I explored almost all ur Qs and have even set aside money for the downpayment and mortgage..
    But the fact remains that I'll end up paying more in the 1st 10 yrs VS renting..
    So I suppose its a case of reality Vs desire :)
     
    Last edited: Nov 14, 2009

Share This Page