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Horror Stories From People Who Bought a House in Residency

Home Mortgages and Home Buying Horror Stories From People Who Bought a House in Residency

  •  Dont_know_mind 
    Participant
    Status: Physician
    Posts: 644
    Joined: 11/21/2017
    Earnest refinancing bonus

    @dont_know_mind,

    By the way, is now a good time to buy? Do CGAR’s around USC differ from UCLA? The vast majority of residents are loaded with debt. Spreadsheets are analytical, addictive yes, but don’t outweigh cognitive bias.

    Click to expand…

    Well, I have been selling everything except 1 property and the house I live in so I think we are pretty late cycle and CAGR’s in the next 3 years could be low, but I could be wrong. And in case I’m wrong, I still have one large property that I’ll hold.

    With leverage in property, I think it reduces your risk of blowing out if you do some market timing by reducing leverage end of cycle and are at least partially accurate about it (not an easy feat).

    In the long term though, I think US property is well priced compared to OECD counterparts and may well creep to the middle of the pack. The US has some of the most livable and cheapest cities in the developed world.

    During the next recession, I might buy a lot of property. As the GFC was caused by property, property was not a beneficiary of the sharemarket rout. In other situations, real estate has done well after a share slump as people funelled money into real estate. I think next cycle there will be tinder for a really good real estate cycle, particularly if rates are dropt to close to zero again. Someone once said to me, “when you see the sharemarket crash, what you got to do is buy the most expensive house you can find…”Doesn’t work everytime, but I’ve seen it happen.

    Existing student debt is something residents have to factor into their ability to take on a mortgage.

     

     

    #170898 Reply
     sealsmith217 
    Participant
    Status: Physician
    Posts: 34
    Joined: 01/14/2016

    My future wife and I did the couples match and decided to buy a condo in 2005 right before our intern year in residency. 3 years later the real estate crisis started so the play was to rent out condo for 2 years until we can deduct the loss when we sell it in 2010. We had a resident rent it my first year as a landlord who kept the place clean but she had to move when her family grew due to a new baby. I then rented it to a lawyer who trashed it. Sold the condo in 2010 with a $100,000 loss. Thankfully we are both doctors and have recovered financially from the experience. It also made me realize I didn’t want to be a landlord again.

    #171097 Reply
     Jack_Sparrow 
    Participant
    Status: Physician
    Posts: 3
    Joined: 01/09/2019

    Had a 5 year residency lined up. My spouse is an engineer so we were bringing in ~120k. Bought in 2015. I bought a brand new ranch house with all the works and little things you wanted in a house (garage, double sinks, finished basement, builder with great reputation). The house was tucked away in what was once a church property that went under. I bought the house for 240k on a Doctor loan and ended up getting paid about $6,000 to buy the house since contractor paid 10,000 in financing. Everything in the house came with a 10 year warranty so i knew there would be no maintenance. It was a new development so I was the first 5 of say 30 houses built. To top it all off, the house came tax abated for 10 years. So instead of property taxes of $6,000 a year, I was only paying $900 a year on property taxes. Man was I on top of the world, made all the right moves, numbers worked out great. I was 12 minutes from center of  downtown in a large metropolitan area (2 million+ people) and work……7 Months after buying the house, developer (who is a city council member)  and his crownies bulldozed the forest behind my house and destroyed all the barriers, (my fence included) and tried to use the land for construction storage and loud truck parking and to build low income housing apartment complex. After three years of pain staking legal battles, fights with city officials, I’ve won the legal battles and have gotten them contained but the damage is done. Every single day i wake up to their noise and nonsense.  I’ve stopped future development for the time being, (Its something new every day with these guys). However they have destroy the tranquil environment i moved into and its now looks like a junkyard. Can’t rebuild acres of 30 year old trees. Best case scenario is house sells for 200k, I walk away paying 30k out of pocket, and almost lost my soul having to fight some of the most corrupt evil people on the planet during residency… If i had rented, I would have moved out before the lease was up but since I was locked into a $0 down doctor loan I didn’t feel like I had a financially viable option but to wait it out.

    #180566 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 1774
    Joined: 05/01/2017
    Splash Refinancing Bonus

    Had a 5 year residency lined up. My spouse is an engineer so we were bringing in ~120k. Bought in 2015. I bought a brand new ranch house with all the works and little things you wanted in a house (garage, double sinks, finished basement, builder with great reputation). The house was tucked away in what was once a church property that went under. I bought the house for 240k on a Doctor loan and ended up getting paid about $6,000 to buy the house since contractor paid 10,000 in financing. Everything in the house came with a 10 year warranty so i knew there would be no maintenance. It was a new development so I was the first 5 of say 30 houses built. To top it all off, the house came tax abated for 10 years. So instead of property taxes of $6,000 a year, I was only paying $900 a year on property taxes. Man was I on top of the world, made all the right moves, numbers worked out great. I was 12 minutes from center of  downtown in a large metropolitan area (2 million+ people) and work……7 Months after buying the house, developer (who is a city council member)  and his crownies bulldozed the forest behind my house and destroyed all the barriers, (my fence included) and tried to use the land for construction storage and loud truck parking and to build low income housing apartment complex. After three years of pain staking legal battles, fights with city officials, I’ve won the legal battles and have gotten them contained but the damage is done. Every single day i wake up to their noise and nonsense.  I’ve stopped future development for the time being, (Its something new every day with these guys). However they have destroy the tranquil environment i moved into and its now looks like a junkyard. Can’t rebuild acres of 30 year old trees. Best case scenario is house sells for 200k, I walk away paying 30k out of pocket, and almost lost my soul having to fight some of the most corrupt evil people on the planet during residency… If i had rented, I would have moved out before the lease was up but since I was locked into a $0 down doctor loan I didn’t feel like I had a financially viable option but to wait it out.

    Click to expand…

    I think at some point during that process I would have gone more than a little bit insane.

    Seriously… that sucks.

    #180631 Reply
    Liked by Zaphod, SLC OB
     fasteddie911 
    Participant
    Status: Physician
    Posts: 194
    Joined: 05/31/2016

    Had a 5 year residency lined up. My spouse is an engineer so we were bringing in ~120k. Bought in 2015. I bought a brand new ranch house with all the works and little things you wanted in a house (garage, double sinks, finished basement, builder with great reputation). The house was tucked away in what was once a church property that went under. I bought the house for 240k on a Doctor loan and ended up getting paid about $6,000 to buy the house since contractor paid 10,000 in financing. Everything in the house came with a 10 year warranty so i knew there would be no maintenance. It was a new development so I was the first 5 of say 30 houses built. To top it all off, the house came tax abated for 10 years. So instead of property taxes of $6,000 a year, I was only paying $900 a year on property taxes. Man was I on top of the world, made all the right moves, numbers worked out great. I was 12 minutes from center of  downtown in a large metropolitan area (2 million+ people) and work……7 Months after buying the house, developer (who is a city council member)  and his crownies bulldozed the forest behind my house and destroyed all the barriers, (my fence included) and tried to use the land for construction storage and loud truck parking and to build low income housing apartment complex. After three years of pain staking legal battles, fights with city officials, I’ve won the legal battles and have gotten them contained but the damage is done. Every single day i wake up to their noise and nonsense.  I’ve stopped future development for the time being, (Its something new every day with these guys). However they have destroy the tranquil environment i moved into and its now looks like a junkyard. Can’t rebuild acres of 30 year old trees. Best case scenario is house sells for 200k, I walk away paying 30k out of pocket, and almost lost my soul having to fight some of the most corrupt evil people on the planet during residency… If i had rented, I would have moved out before the lease was up but since I was locked into a $0 down doctor loan I didn’t feel like I had a financially viable option but to wait it out.

    Click to expand…

    Jeez, tip my hat to you for dealing with that while in training.  Your post doesn’t just speak to buying a house in residency, but buying a house in general.

    #180683 Reply
    Liked by Zaphod

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