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gc_chahiye
07-30-2007, 10:23 PM
have seen many people (maybe rightly so) tie their house-buying decision to getting a GC. Here's a poll to see where IV'ites stand on this

LongWait2005
07-30-2007, 11:17 PM
What do you want infer from the statistics and how is this going to help any body

bestia
07-31-2007, 12:19 AM
What do you want infer from the statistics and how is this going to help any body

I have heard a lot from Americans something like "what do you worry? you are here". Such polls can show how having or not having GC significantly influences peoples lives even if one doesn't plan to move or change jobs after getting GC and his/her spouse has EAD.

snowshoe
07-31-2007, 12:28 AM
I think you should add another option

no, I intend to buy a house in the next year or so, irrespective of my GC situation

GCchakravyuh
07-31-2007, 12:40 AM
Only after EAD you have more secured situaton. If your skills are not easily placeable on H1 its safer to wait for EAD, before you buy home .

gc_chahiye
07-31-2007, 12:43 AM
I could not put it better than the way bestia did (post #3 on same thread):

I have heard a lot from Americans something like "what do you worry? you are here". Such polls can show how having or not having GC significantly influences peoples lives even if one doesn't plan to move or change jobs after getting GC and his/her spouse has EAD.

pr02
07-31-2007, 12:59 AM
I bought a home last year at a time when I believed that even applying for the 485 application was a good 2-3 years away. Only remorse is that I could have had a better deal if I had waited 6 months or so.:D

Green card makes life good, but it does not control my life.

inskrish
07-31-2007, 01:55 AM
have seen many people (maybe rightly so) tie their house-buying decision to getting a GC. Here's a poll to see where IV'ites stand on this

GC has nothing to do with buying a new house. If you don't get the GC, you can simply sell the house and walk away from USA. Having a GC increases your financial capacity is just a myth:) Most importantly, I lost 210K due to this myth. :(

pmb76
07-31-2007, 02:03 AM
GC has nothing to do with buying a new house. If you don't get the GC, you can simply sell the house and walk away from USA. Having a GC increases your financial capacity is just a myth:)

You are so wrong !! GC increases your financial capacity immensely. I am positive that once I have GC I can get a decent raise in my salary which I haven't gotten in a few years. As a matter of fact I had to refuse a sweet offer from a hot pre-IPO company just because I didn't have GC.

bestia
07-31-2007, 02:05 AM
GC has nothing to do with buying a new house. If you don't get the GC, you can simply sell the house and walk away from USA. Having a GC increases your financial capacity is just a myth:)

LOL. you think it's that easy? have you ever been involved in that process? In LA just buying and selling the house costs about $50k. So, if you bought a house for 800,000 and sold it for 800,000 - you lost 50,000.

I'm not even touching the "myth" sentence, as I would expect flood of responses.. or maybe not - people are already tired of explaining how much GC is holding their lives.

inskrish
07-31-2007, 02:09 AM
LOL. you think it's that easy? have you ever been involved in that process?

:) Please read my response again, bestia.

inskrish
07-31-2007, 02:11 AM
You are so wrong !! GC increases your financial capacity immensely. I am positive that once I have GC I can get a decent raise in my salary which I haven't gotten in a few years. As a matter of fact I had to refuse a sweet offer from a hot pre-IPO company just because I didn't have GC.

Does 'not having a GC' prevent you from buying a new house--which is the primary question?:-)

inskrish
07-31-2007, 02:16 AM
I am positive that once I have GC I can get a decent raise in my salary which I haven't gotten in a few years.

Well, it looks like someone is cheating you. You don't need a GC to get your pay hike.:-)

inskrish
07-31-2007, 02:17 AM
Does 'not having a GC' prevent you from buying a new house--which is the primary question?:-)

morchu
07-31-2007, 02:19 AM
You are so wrong !! GC increases your financial capacity immensely. I am positive that once I have GC I can get a decent raise in my salary which I haven't gotten in a few years. As a matter of fact I had to refuse a sweet offer from a hot pre-IPO company just because I didn't have GC.

I think it is your choice. Actually some people opt to accept new offers and move-on. Anyway.... you can keep the priority date... and it is just a matter of few months now to get to the same stage as what you are now.... even after a new job and LC/140/already-filed-485(replace140). Others opt to wait.

inskrish
07-31-2007, 02:27 AM
LOL. you think it's that easy? have you ever been involved in that process? In LA just buying and selling the house costs about $50k. So, if you bought a house for 800,000 and sold it for 800,000 - you lost 50,000.



LOL, did I say that you have to sell your house at the buying price? Do the simple math, man/mam!

Regards,
IK

bestia
07-31-2007, 03:37 AM
LOL, did I say that you have to sell your house at the buying price? Do the simple math, man/mam!

Regards,
IK

"man".. it's "man" ;) Are you saying that it's so easy to buy a house on one price and then just if anything happens add few hundred thousands and sell it? And there will be a line buying your house :) Ow... how didn't I think about that. mm... I lost another 201k... Where I live the prices are not moving up for several years now. I follow closely the market.

PD_Dec2002
07-31-2007, 07:14 AM
The basic tenet of buying a house (to live in; not for investing purpose only) is that you should own it for at least three-four years so that you do not have to sell it for a loss. Like any financial cycle, RE also moves in a sine curve, so you should be able to ride the wave. The average appreciation has been just about 3% over the last many many years...the recent housing boom being a rare occurence.

If you are on a H-1B, then buying a house depends on your risk-taking capacity. What if you were to lose your job? What if you have to move within the US to find a job? What if you have to return to India? Because owning a house is not a one-time expense...there is the monthly mortgage, monthly dues, RE taxes, insurance, HOA fees (for some), maintenance, etc. So you should know what you are getting into when you buy a house on a H-1B because you don't want to sell it for a loss only because you lose your job and have to go back. Like any financial cycle, RE also moves in a sine curve, so you should be able to ride the wave. Of course, you can keep the house even if you go back, but I doubt RE would be a financially savvy investment given its historic rate of return.

However, my wife and I (even though we were both working on H-1Bs and had not even applied for our LCs), we decided to take this risk and bought a house in 2001. We made sure that even if one person was to lose his/her job, we should still be afford to that house. The house has appreciated significantly only to stabilize in the last year or so, but we are now perfectly happy with the decision we made. Of course, hind sight is always 20/20!

We are now looking to move into a bigger house, and I can tell you that being in AOS (finally) gives a totally different feeling of comfort and financial security. We now know that even if we were to lose our jobs, we wouldn't have to sell the house for a loss since we would be able to ride the wave. Most importantly, your physical presence in the US gives you a lot of options to get a job and the lack of visa sponsorship opens several doors that were once closed.

So the bottom line is that you don't need to have a GC (or be in AOS) to buy a house; but it certainly makes the decsion process a lot easier.

Good luck to all who are considering buying a house. Go with a "realtor" who works for you. And keep this book handy: "Tips and Traps When Buying A Home (http://www.amazon.com/Tips-Traps-When-Buying-Home/dp/0070328846)"

Thanks,
Jayant

yabadaba
07-31-2007, 08:01 AM
its all about capacity for risk.

i had crazy fights with my wife..friends thought i was nuts..but i still went ahead and bought the house.

i closed on my house 3 months after my first h1 had started (previously on f1-opt)..my wife was on f1

now i have been in this house for over 3 years and nobody who fought with me says that i did not make a good decision.

of course i was lucky in many respects...stable job..stable housing market and good credit.

manand24
07-31-2007, 08:26 AM
have seen many people (maybe rightly so) tie their house-buying decision to getting a GC. Here's a poll to see where IV'ites stand on this

Just curious. What is the purpose of this poll?

ultimo
07-31-2007, 08:36 AM
to get a GC now it will take another 4 years . its long to think about it

johnamit
07-31-2007, 09:58 AM
I applied for labor 3 times, soon I got my first approval (which was third application) I bought the house.

gc_chahiye
07-31-2007, 10:44 AM
Just curious. What is the purpose of this poll?

the question was already asked earlier in this thread... anyway see posts 3, 9, 18.

Was trying to see what views people hold on buying a house and their GC situation (50% have bought house regardless, 43% are seeing a correlation, with 25% a strong correlation, meaning they'll buy a house as soon as they get their GC). Seeing how delaying the getting of a GC impacts various things in our lives...

ilikekilo
07-31-2007, 10:53 AM
have seen many people (maybe rightly so) tie their house-buying decision to getting a GC. Here's a poll to see where IV'ites stand on this

my 2 cents

I guess buying a house is a big commitment financially and emotionally and I think there are so many factors besides GC....

and by the way I am not buying a house jsut not coz of lack of GC also place where I work and live is not going to be the one I am gonna be for the next 5 -10 years

Wendyzhu77
07-31-2007, 10:55 AM
On the other hand, even if you have GC or citizenship, you will still face lay-off, relocation, etc. The probabily of losing the job is always there, and there is no way to escape it. Therefore, owning a house with H1 is not much different from with GC/citizenship, riskwise. There is always a possibility that you might be forced to sell the house, so you need to take that into account whenever you are making a house-purchasing decision, no matter what your status is.
Risk-wise, if you are H1 and kicked back home with 1M debt, you might be able to simply forget about it. if you are GC/citizenship, will you be willing to forfeit that for 1M debt? So, if you are making risky RE investments, H1 is actually better...
The basic tenet of buying a house (to live in; not for investing purpose only) is that you should own it for at least three-four years so that you do not have to sell it for a loss. Like any financial cycle, RE also moves in a sine curve, so you should be able to ride the wave. The average appreciation has been just about 3% over the last many many years...the recent housing boom being a rare occurence.

If you are on a H-1B, then buying a house depends on your risk-taking capacity. What if you were to lose your job? What if you have to move within the US to find a job? What if you have to return to India? Because owning a house is not a one-time expense...there is the monthly mortgage, monthly dues, RE taxes, insurance, HOA fees (for some), maintenance, etc. So you should know what you are getting into when you buy a house on a H-1B because you don't want to sell it for a loss only because you lose your job and have to go back. Like any financial cycle, RE also moves in a sine curve, so you should be able to ride the wave. Of course, you can keep the house even if you go back, but I doubt RE would be a financially savvy investment given its historic rate of return.

However, my wife and I (even though we were both working on H-1Bs and had not even applied for our LCs), we decided to take this risk and bought a house in 2001. We made sure that even if one person was to lose his/her job, we should still be afford to that house. The house has appreciated significantly only to stabilize in the last year or so, but we are now perfectly happy with the decision we made. Of course, hind sight is always 20/20!

We are now looking to move into a bigger house, and I can tell you that being in AOS (finally) gives a totally different feeling of comfort and financial security. We now know that even if we were to lose our jobs, we wouldn't have to sell the house for a loss since we would be able to ride the wave. Most importantly, your physical presence in the US gives you a lot of options to get a job and the lack of visa sponsorship opens several doors that were once closed.

So the bottom line is that you don't need to have a GC (or be in AOS) to buy a house; but it certainly makes the decsion process a lot easier.

Good luck to all who are considering buying a house. Go with a "realtor" who works for you. And keep this book handy: "Tips and Traps When Buying A Home (http://www.amazon.com/Tips-Traps-When-Buying-Home/dp/0070328846)"

Thanks,
Jayant

bestia
07-31-2007, 01:36 PM
On the other hand, even if you have GC or citizenship, you will still face lay-off, relocation, etc. The probabily of losing the job is always there, and there is no way to escape it. Therefore, owning a house with H1 is not much different from with GC/citizenship, riskwise. ...


Disagree. When you are on H1b and lose your job, you are becoming out of status and you must find a job ASAP. You don't have time to shop around, if you found something in another state - you better move or leave USA. If you GC you can spend several months looking for the good job near you, meanwhile taking all kinda petty jobs if you are tight on money.

komaragiri
07-31-2007, 01:39 PM
Read the following interesting article about recent housing market..

http://promo.realestate.yahoo.com/riskiest_us_housing_markets.html

logiclife
07-31-2007, 01:46 PM
I cant believe that about 50% of members are home owners before having GC.

gc_check
07-31-2007, 02:04 PM
Decision to buy a home, should NOT be based ONLY on GC, If you are certain you are going to live in the same city you are now for next 3 years at least and also if your job is stable, and if you can afford a home, then go for it... Also consider where you are now and if the real estate in your region is doing well or not. Some part of US, it is not that bad. You will eventually get GC anyway, if you are already in the process and if you have met the basic requirements for the GC (like labor, marinating legal status all the time, etc..etc..). Also, having a GC does not mean you will buy a home, but having a GC does gives more confidence.... and you will more options.

At least, folks who bought a home already, enjoy a low APR. :)

prinive
07-31-2007, 02:12 PM
I am not sure why people relate house and GC. if you think you are going to stay in the place for a long time, you should buy the house. I bought my first house before I started my GC is before I filed my lab. I bought the second house after my lab got approved. So I guess there should not be any relation between these two.

PD_Dec2002
07-31-2007, 02:12 PM
Risk-wise, if you are H1 and kicked back home with 1M debt, you might be able to simply forget about it. if you are GC/citizenship, will you be willing to forfeit that for 1M debt? So, if you are making risky RE investments, H1 is actually better...

You disgust me if you are implying that one can run back to your own country even if you have a debt to pay...just because collection agencies might not be able to touch you.

If that's indeed what you are really implying, then your status in the US (as of today) might be legal and skilled, but it's unfortunate your education and your family values haven't taught you anything.

Thanks,
Jayant

gc_chahiye
07-31-2007, 02:31 PM
I am not sure why people relate house and GC. if you think you are going to stay in the place for a long time, you should buy the house. I bought my first house before I started my GC is before I filed my lab. I bought the second house after my lab got approved. So I guess there should not be any relation between these two.

Being on H1 complicates things sometimes. I have had friends on H1 who got lost their jobs in 2001-end, 2002 when the market was really bad here in the bay area. After scrambling around unsuccessfully for getting an H1 transfer finally called it quits and left for India. Having a 500K-750K USD house to also dispose off in that 3-4 week period where you are scrambling to maintain yours and your family's status can be tricky for some folks.

Once you are ok status-wise even if you lose your job you can take some time to get another one, do something part-time etc. Paying mortgage becomes the only concern, you dont have the sword of making your stay illegal hanging over your head. Last 2-3 years the job market has been good, so getting another job after layoff is no longer as hard as it was in 2002. Wonder if that has helped people make this decision.

Anyway interesting poll results... thanks to all who responded.

logiclife
07-31-2007, 02:31 PM
You disgust me if you are implying that one can run back to your own country even if you have a debt to pay...just because collection agencies might not be able to touch you.

If that's indeed what you are really implying, then your status in the US (as of today) might be legal and skilled, but it's unfortunate your education and your family values haven't taught you anything.

Thanks,
Jayant

Hey careful there, you want to go easy on judging others.

Also, sometimes, people who are out of status leave US coz they lose H1, job and have to go back.

In 2001, there were times when everyday, cars were left at San Francisco and San Jose airport with keys in the ignition. The owners were H1B employees laid off during the dot com bust who left USA permenantly and did not have time to sell their cars.

H1B is a ruthless status and being out of status, without income is not a very comfy state to be sitting for 6 months in country and waiting for someone to buy your house.

Also, remember, when you foreclose your house by abondoning it, usually, your lender does not lose money. Why? Because during the initial years a huge chunk of your mortgage monthly payment is applied towards interest (like 95% ) and less than 5% is applied to principal. Just look at the amortization table. You can go to bankrate.com and see the mortage calculator. Just enter test numbers like 300,000 loan, 6% interest, 30 year term and look at amortization schedule.

If you sell or foreclose your home in first 2-3 years, you dont make any equity. However the bank wont lose money. They would make good profit coz they have hardly anything they have applied to your principal and majority of chunk has gone towards interest.

So basically, if you go back to your country suddenly due to losing H1 and job, then your car loan will cause more loss to your lender than your home loan will.

Just to keep something in mind.

yabadaba
07-31-2007, 02:33 PM
I cant believe that about 50% of members are home owners before having GC.
why cant you believe that?

gcnirvana
07-31-2007, 02:42 PM
Check out the latest stats from Forbes:

http://www.forbes.com/feeds/ap/2007/07/30/ap3967315.html

logiclife
07-31-2007, 02:45 PM
why cant you believe that?
Because homebuying is a risky proposition without stability of GC ... the reason...read my post above about amortization and how you can gain 0 equity and actually lose money if you buy and sell in less than 2-3 years or buy and abandon (foreclose) in less than 2-3 years.

PD_Dec2002
07-31-2007, 02:56 PM
Hey careful there, you want to go easy on judging others.

Also, sometimes, people who are out of status leave US coz they lose H1, job and have to go back.

In 2001, there were times when everyday, cars were left at San Francisco and San Jose airport with keys in the ignition. The owners were H1B employees laid off during the dot com bust who left USA permenantly and did not have time to sell their cars.

H1B is a ruthless status and being out of status, without income is not a very comfy state to be sitting for 6 months in country and waiting for someone to buy your house.

Also, remember, when you foreclose your house by abondoning it, usually, your lender does not lose money. Why? Because during the initial years a huge chunk of your mortgage monthly payment is applied towards interest (like 95% ) and less than 5% is applied to principal. Just look at the amortization table. You can go to bankrate.com and see the mortage calculator. Just enter test numbers like 300,000 loan, 6% interest, 30 year term and look at amortization schedule.

If you sell or foreclose your home in first 2-3 years, you dont make any equity. However the bank wont lose money. They would make good profit coz they have hardly anything they have applied to your principal and majority of chunk has gone towards interest.

So basically, if you go back to your country suddenly due to losing H1 and job, then your car loan will cause more loss to your lender than your home loan will.

Just to keep something in mind.

The suggestion offered was if you want to take risks, take them while you are on H-1B. The reason being you can just wipe off your debt by running away and not paying it. Under no circumstances is this suggestion justifiable.

Thank,
Jayant

logiclife
07-31-2007, 03:01 PM
The suggestion offered was if you want to take risks, take them while you are on H-1B. The reason being you can just wipe off your debt by running away and not paying it. Under no circumstances is this suggestion justifiable.

Thank,
Jayant

Well, a bad intent is a bad intent, no matter what. I agree.

However, what I am saying is, if you think that H1B status increases your risk taking ability coz you can wipe your debt and leave country and forget about debt...you are wrong.

That's because if you abandon your house and leave the country, you are the one losing money. Not the bank or lender. Even if bank is losing some money by foreclosing your home and selling it, then they will deduct their loss from your downpayment. So again, you are the one losing money if you think that buying a home on H1 is ok, coz if you lose status, you can abandon and forget about debt.

And that is likely to be true even in cases where cars are abandoned.

yabadaba
07-31-2007, 03:02 PM
Because homebuying is a risky proposition without stability of GC ... the reason...read my post above about amortization and how you can gain 0 equity and actually lose money if you buy and sell in less than 2-3 years or buy and abandon (foreclose) in less than 2-3 years.
agreed...but that is the situation now. in 2004 interest rates were at 4.5-5 for 10/1 arms and 30 yr fixed etc.

and outside the bay area we did not see double digit growth...but we have seen decent appreciation that has diluted most of the initial risk. if u dont use the house like a piggy bank by borrowing against the equity and are not suckered into an exotic loan product...u will see great benefits of home ownership.

of course this is true for markets where home prices were decently stable.
the home market that I live in....about 90% of people i know are home owners...and all of us bought during the 2002-2005 period.

so it is likely that a significant % of IV meembers are home owners.

yabadaba
07-31-2007, 03:06 PM
Well, a bad intent is a bad intent, no matter what. I agree.

However, what I am saying is, if you think that H1B status increases your risk taking ability coz you can wipe your debt and leave country and forget about debt...you are wrong.

That's because if you abandon your house and leave the country, you are the one losing money. Not the bank or lender. Even if bank is losing some money by foreclosing your home and selling it, then they will deduct their loss from your downpayment. So again, you are the one losing money if you think that buying a home on H1 is ok, coz if you lose status, you can abandon and forget about debt.

And that is likely to be true even in cases where cars are abandoned.
I guess living in california changes ur perspective on affordable housing. when u have shacks going for a million $ for sure there is significant risk involved even at six figure income levels...but in regular markets in the south - texas, florida, etc home prices in the 2003-2005 were still less than 300k. those that took the plunge have seen great growth.

ilikekilo
07-31-2007, 03:16 PM
Because homebuying is a risky proposition without stability of GC ... the reason...read my post above about amortization and how you can gain 0 equity and actually lose money if you buy and sell in less than 2-3 years or buy and abandon (foreclose) in less than 2-3 years.


what if hte home appreciates and u already had 20 % downpay done...isnt it good then?

yabadaba
07-31-2007, 03:22 PM
what if hte home appreciates and u already had 20 % downpay done...isnt it good then?
it depends on the cost of your house. if ur buying a house for 250k and u put down 50k and the whole cost of mortgage/realtors is 7% ...then ur house needs to appreciate by 17.5k which is not too difficult.

If ur buying a house for 700k and u put ur entire savings of 140k and pay 7% costs = 49k...that is more difficult in a tight market.

mangelschots
07-31-2007, 04:06 PM
Because homebuying is a risky proposition without stability of GC ... the reason...read my post above about amortization and how you can gain 0 equity and actually lose money if you buy and sell in less than 2-3 years or buy and abandon (foreclose) in less than 2-3 years.

Home buying is always a risk, regardless of immigration status. I bought my home in 2003, at 300k. My credit rating was barely enough to get a sub prime loan. After 2 years i refinanced to a stable 30yr loan at 5.5%. My home is now worth between $480k and $500k. So the choice ended up a good one. I can not buy my home now anyway.
The choice was relatively easy to make because, even if you have to leave the country immediately, you don't have to have it sold by the time you leave. Just list it. You will get your money eventually. Same goes for US citizens who lose their job. If it is security you want, don't do real-estate, you are in the wrong country for that. Go to a communist country.

There is also the option of renting out your house when you have to go back. If the prevailing rent is in accordance with your mortgage, then you can opt to have the house pay for itself. After 30 yrs, you will have a multi-million dollar property. That is a nice retirement in a lot of countries. I still own my first apartment in my home country, which I am renting out. In 12 yrs it will be paid off (at least that is the plan). It will not make me independently wealthy, but it adds up. That is how you retire in this country. Not by social security (I hope you are aware of this).
This is not a question of immigration, but a matter of how comfortable you are with real-estate.

The choice was easy to make at the time because the home prices were soaring anyway. I wouldn't buy that easy now.

Stories about losing money on real-estate are little out of place in immigration debates. If you bought in 2006-2007 and had to sell, yes you lost money. Is that due to your immigration problems ? No, it's bad timing. Everyone has a sob story about losing money in real-estate: divorce, losing jobs, economic downturn, bad credit, or just plain stupid. Don't expect much sympathy there. Everyone is in the same boat.
If you are just in this country, you are out of luck because of the housing peak. You will get another chance in the next decade. If you were here since 2000, and sat on your ass the whole time, it is your own fault. You had the chance to buy. It's the same for everyone: immigrant or citizen.
You have a lot of options to acquire real-estate: if you don't make as much money as you claim you could with a GC, buy a smaller house in a cheaper area. Any new arrivals in this country with no FICO can jack up their FICO to a comfortable +700 score in 2 years (or faster). That's all you need to buy a house.

bestia
07-31-2007, 04:11 PM
I guess living in california changes ur perspective on affordable housing. when u have shacks going for a million $ for sure there is significant risk involved even at six figure income levels...but in regular markets in the south - texas, florida, etc home prices in the 2003-2005 were still less than 300k. those that took the plunge have seen great growth.

I have to agree with this. In my area you won't find any decent house less than $800k. My landlord was planning to convert our apartment into condo with $300k. I am ready to buy it any time - I don't even consider it "buying a house". It's a one bedroom apartment for $300k !!! While my friend is thinking should he buy a house in Texas for $250k or wait for GC.

gc_in_30_yrs
07-31-2007, 04:20 PM
i will buy in 6 months once i get my GC

shreekhand
07-31-2007, 04:35 PM
You "can" loose money in 2-3 years, especially in the present housing market slump. If you bought a house in 2004 and sold it in 2006 within 2 years, I would hardly say there would be any loss considering the 2005 housing bubble!


Because homebuying is a risky proposition without stability of GC ... the reason...read my post above about amortization and how you can gain 0 equity and actually lose money if you buy and sell in less than 2-3 years or buy and abandon (foreclose) in less than 2-3 years.

priderock
07-31-2007, 04:43 PM
Home buying is always a risk, regardless of immigration status.................... Go to a communist country.



If you were here since 2000, and sat on your ass the whole time, it is your own fault. You had the chance to buy. It's the same for everyone: immigrant or citizen.
.....................

Consider using proper tone and language in future. Hind site is always 2020. There are success stories and sad stories in every thing in life and so is home buying. There are many considerations in buying a house and having a safe immigration state is one of the important ones. That is logiclife's point.

No need to preach or show off.

mrane1
07-31-2007, 04:45 PM
Most people who bought houses have either forgotten the 01 recession or havent experienced it at all. H1 status is extremely brutal if you loose your job. You might think your job is safe, but it isnt... Your job is only as safe as the next recession, which I think is round the corner... esp now that the gravey train in housing has abruptly ended! Selling house isnt like selling a piece of furniture... It takes time... especially now... since we are experiencing the biggest slowdown in housing since late 80's/early 90's... Also, if your house has depreciated in value then not only have you lost your down payment but you might end up owing money to the bank! :eek:
The advantage of having the stability of gc could make a huge difference. You dont have to move immedietly... you can claim unemployment... most likely your spouse will be working (unlike h4 status)... your chance of gettin a job are better with a GC. Now I see all these fresh grads graduating out of school and buying BMW's and mercs and I wish I could knock some sense into them... I wish someone had done that to me back in the heady days of dot com boom! Searching for a job in December of 01 has taught me a lot of valuable lessons.. the biggest one being financial prudence and not taking things for granted!

rustamehind
07-31-2007, 05:05 PM
Most people who bought houses have either forgotten the 01 recession or havent experienced it at all. H1 status is extremely brutal if you loose your job. You might think your job is safe, but it isnt... Your job is only as safe as the next recession, which I think is round the corner... .............ost likely your spouse will be working (unlike h4 status)... your chance of gettin a job are better with a GC. Now I see all these fresh grads graduating out of school and buying BMW's and mercs and I wish I could knock some sense into them... I wish someone had done that to me back in the heady days of dot com boom! ................not taking things for granted!

Well this is a different generation , I don't think there is anything wrong about fresh grads buying a BMW.Its about attitude , if it makes you feel good about yourself , do it.If it gives you confidence & inspires you to earn more / progess , why not?
Who made the rule of being defensive & careful in life?Even if you fail with your adventures , there is a good chance you will learn & become a stronger person.Stronger than somebody who never tried because of fear of failure.

yabadaba
07-31-2007, 05:16 PM
Most people who bought houses have either forgotten the 01 recession or havent experienced it at all. H1 status is extremely brutal if you loose your job. You might think your job is safe, but it isnt... Your job is only as safe as the next recession, which I think is round the corner... esp now that the gravey train in housing has abruptly ended! Selling house isnt like selling a piece of furniture... It takes time... especially now... since we are experiencing the biggest slowdown in housing since late 80's/early 90's... Also, if your house has depreciated in value then not only have you lost your down payment but you might end up owing money to the bank! :eek:
The advantage of having the stability of gc could make a huge difference. You dont have to move immedietly... you can claim unemployment... most likely your spouse will be working (unlike h4 status)... your chance of gettin a job are better with a GC. Now I see all these fresh grads graduating out of school and buying BMW's and mercs and I wish I could knock some sense into them... I wish someone had done that to me back in the heady days of dot com boom! Searching for a job in December of 01 has taught me a lot of valuable lessons.. the biggest one being financial prudence and not taking things for granted!
once again...it depends where you are and based on that what the cost of the house is.

Even now for an avg house that costs 250k at a 6.5% mortgage rate fixed for 7 years (7/1 arm) your payment will be around $1264.

factor in county taxes and insurance = $350 a month

Total = $1614

I know for a fact that in the bay area this might be less than rent for a 2 bedroom house in many places...am i correct?

while this will buy you a 3-4 bedroom house in texas...again depending where u are...which suburb u r in.

onemoredesi
07-31-2007, 05:26 PM
We bought our house even when my labor was pending.. Simple way of looking at it is - if you are staying in this country for a long time as a responsible alien, its just a matter of time.. everyone will get their green cards.. I'll say - be patient.. but we are not overly concerned when we were buying the house..we just made sure that we will be able to sustain with one income.. (the odds of both wife and husband losing the job at the same time are pretty high). Try not to buy a very expensive house just in case..
My 2 cents.
1MoreDesi!

Wendyzhu77
07-31-2007, 05:47 PM
Here, you can buy a house double the size, but the mortgage will be the same as rent. What do you do? rent or buy? even h1? That's a no-brainer.
We bought our house even when my labor was pending.. Simple way of looking at it is - if you are staying in this country for a long time as a responsible alien, its just a matter of time.. everyone will get their green cards.. I'll say - be patient.. but we are not overly concerned when we were buying the house..we just made sure that we will be able to sustain with one income.. (the odds of both wife and husband losing the job at the same time are pretty high). Try not to buy a very expensive house just in case..
My 2 cents.
1MoreDesi!

immitul
07-31-2007, 06:12 PM
Does 'not having a GC' prevent you from buying a new house--which is the primary question?:-)

I bought my home with out GC. But I would have bought a home much early, if I had my GC. I know many of my friends waiting for GC to buy home.

asharma
07-31-2007, 06:15 PM
I want to ask if July I-485 filers are in a safer position to buy a house.

Will they be out-of-status if laid-off now that they have filed 485?
If not, then they are safe....

So, I guess my question is will the july 485 filers be out-of-status if laid-off???
By the way, i am a July filer

gc_chahiye
07-31-2007, 06:26 PM
I want to ask if July I-485 filers are in a safer position to buy a house.

Will they be out-of-status if laid-off now that they have filed 485?
If not, then they are safe....

So, I guess my question is will the july 485 filers be out-of-status if laid-off???
By the way, i am a July filer

if you are laid off within 180 days of 485 filing, and your I-140 is also revoked, then its bye-bye everything. Post 180 days you only need to find a job in similar position to what you have now and you will continue to be safe. If your I-485 is denied, you go out of status (unless you have maintained your H1).

However people here are not talking about little one-off layoffs, but the mass layoffs (5k/10k or more) that occurred in 2001/2002. Several big companies closed their complete offices, laying off everyone with literally zero notice. hundreds of startups went under. And it was all not just the .com companies, several telecom networking companies (lucent/nortel) also laid off thousands. At the same time the general tech economy had tanked, and almost no one else was hiring.

Its that kind of a scenario (another recession as someone said) that scares some people without GCs from buying a house. Old timers in bay area might remember those days when traffic was light on 101, many buildings on 1st street were vacant, apartments were easy to get, there was almost no waiting time in any restaurant and rents were low.

anyway recessions have historically been periodic and the next one would be due in the next 3-5 years, lets see how this one pans out. Retrogression to Recession -> frying pan to fire.

asharma
07-31-2007, 07:26 PM
Hey, thanks for the detailed reply...
If I may bother with one more question:
Is it that after 180 days, even if laid off, we are not out-of-status. Of course, we need to search for jobs with the similar position. But, during the job search, if it takes 1-2 months to get a new job, are we out-of-status for that 1-2 month period in between jobs, OR the fact that we have completed 180 days after 485 allows us to remain in status...

Thanks for your patience

if you are laid off within 180 days of 485 filing, and your I-140 is also revoked, then its bye-bye everything. Post 180 days you only need to find a job in similar position to what you have now and you will continue to be safe. If your I-485 is denied, you go out of status (unless you have maintained your H1).

ilikekilo
07-31-2007, 08:34 PM
it depends on the cost of your house. if ur buying a house for 250k and u put down 50k and the whole cost of mortgage/realtors is 7% ...then ur house needs to appreciate by 17.5k which is not too difficult.

If ur buying a house for 700k and u put ur entire savings of 140k and pay 7% costs = 49k...that is more difficult in a tight market.


true....i think depends on where u buy a house...in west coast u better have a million dollars....in east coast half a million to get in to a place with good school district...i guess location plays a lot...

gc_chahiye
07-31-2007, 08:58 PM
Hey, thanks for the detailed reply...
If I may bother with one more question:
Is it that after 180 days, even if laid off, we are not out-of-status. Of course, we need to search for jobs with the similar position. But, during the job search, if it takes 1-2 months to get a new job, are we out-of-status for that 1-2 month period in between jobs, OR the fact that we have completed 180 days after 485 allows us to remain in status...

Thanks for your patience

completing 180 days post 485 simply allows you to use some other GC sponsoring employer instead of the one who did your LC+140. So at any point after that you need to be holding atleast an offer letter for employment from some employer. If USCIS comes up with an RFE or you get approved, you better have that job offer on hand. YOu might get lucky (laid off, then find a job in 3 months, meantime no news from USCIS)

PD_Dec2002
07-31-2007, 09:15 PM
Now I see all these fresh grads graduating out of school and buying BMW's and mercs and I wish I could knock some sense into them... I wish someone had done that to me back in the heady days of dot com boom! Searching for a job in December of 01 has taught me a lot of valuable lessons.. the biggest one being financial prudence and not taking things for granted!

Financial prudence at times can be relative. If you are driving a Kia and saving 65% of your take-home pay, then that does not necessarily make you more financially prudent than the guy/gal who is driving a BMW and saving 35% of his/her take-home pay. It's a case of priorities so while you might be spending on iPods, iPhones, etc,. this guy/gal is spending on his/her BMW.

Personally, I believe that anyone who rents rather than owns is just flushing money down the drain. But I cannot make this blanket statement and apply it for all scenarios since people have certain circumstances, reasons and priorities for the things that they do.

So let these fresh grads drive their BMWs and Mercs if that makes them happy and they know what they are doing. For all you know, they invested in Berkshire Hathaway stock when the were in their early teens, so they might be much better off financially than what you were when you graduated. Not very likely, but still possible! :-P

Thanks,
Jayant

USDream2Dust
08-01-2007, 12:00 PM
Financial prudence at times can be relative. If you are driving a Kia and saving 65% of your take-home pay, then that does not necessarily make you more financially prudent than the guy/gal who is driving a BMW and saving 35% of his/her take-home pay. It's a case of priorities so while you might be spending on iPods, iPhones, etc,. this guy/gal is spending on his/her BMW.

Personally, I believe that anyone who rents rather than owns is just flushing money down the drain. But I cannot make this blanket statement and apply it for all scenarios since people have certain circumstances, reasons and priorities for the things that they do.

So let these fresh grads drive their BMWs and Mercs if that makes them happy and they know what they are doing. For all you know, they invested in Berkshire Hathaway stock when the were in their early teens, so they might be much better off financially than what you were when you graduated. Not very likely, but still possible! :-P

Thanks,
Jayant

Ok a fresh grad driving BMW in late 20's has different opinion than a person driving kia in early to mid 30's. It's all priorities. Why save money in early ages? Why drive kia at 25? Just so that you can drive a bmw or merc when you are 60? People think different and driving a 3 series in late 20's is more fun than driving a 7 series in late 50's or 60's. I do agree that renting is throwing away money but to buy a house you would need substantial cash 50k for eg. and a new grad would save 3-4 years of his 6 figure income to get there after living miser for this years and watching other's ipods and blackberrys and satisfying himself :). It all depends.

No offense but can't take this as a fresh grad :)

vinabath
08-01-2007, 12:40 PM
Financially BMWs or Lexus or Acura are never an intelligent buy irrespective of age.

Luxury or higher end cars can only be bought for
1. Attitude
2. Business Development

This is what every advisor tells. Car is always is expenditure.

But recently I started to think that Car can be investment. Every day the most riskiest time I spend is during driving to work. driving home. small mistake would cost life.

So If I making lot of money I would rather buy Hummer or BMW 7 series which are solidly built to protect me if an accident occurs.

What ya guys think.

USDream2Dust
08-01-2007, 01:02 PM
Financially BMWs or Lexus or Acura are never an intelligent buy irrespective of age.

Luxury or higher end cars can only be bought for
1. Attitude
2. Business Development

This is what every advisor tells. Car is always is expenditure.

But recently I started to think that Car can be investment. Every day the most riskiest time I spend is during driving to work. driving home. small mistake would cost life.

So If I making lot of money I would rather buy Hummer or BMW 7 series which are solidly built to protect me if an accident occurs.

What ya guys think.
For you I would say a 2003 :rolleyes: Ford F550. Safest and a killer machine. You would steal the show when you park at your work place :).

vinabath
08-01-2007, 01:27 PM
For you I would say a 2003 :rolleyes: Ford F550. Safest and a killer machine. You would steal the show when you park at your work place :).

Is it really the safest around?? any other safe cars or suvs??

apatel_17
08-01-2007, 02:16 PM
Is it really the safest around?? any other safe cars or suvs??

No car is completely safe in the event of an accident. I would suggest you buy any decent midsize car with side airbags, and take some defensive driving classes. Being a safe driver significantly reduces your chances of getting into an accident.