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Well, the big question is where do you live, and what are the average house prices for, say, a 3 bedroom house? As for a realtor ... I too faced the same issue, and unless you have a strong personal recommendation all I can suggest is to go lots of open houses and talk to the realtors to at least find one whose personality works well for you. Of course, that doesn't guarantee they'll be a great realtor. We did that and ended up with a perfectly nice woman who picked out horrible houses and recommended we go above asking price for every house we were remotely interested in. We ended up using Redfin.com, which has been wonderful, but they only serve a few cities.
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Aug 27, 2009 14:20
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Yeah i looked at Redfin, but they don't work in Metro Atlanta, bummer.
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Aug 27, 2009 14:49
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TasmanianX posted:Does anyone have any good ways of picking a decent Realtor? We've been doing a lot of good research and found some places that look nice, what else is a Realtor going to do for us really (other than place bids and poo poo) than we are doing ourselves, online and what not? I've only been using 1 realtor so far, and although she is nice, I don't really feel like she has much of a purpose other than showing up to a house to unlock it for me and handling paperwork when I bid on a house. I do all the legwork and research on my own, including what places to look at, what neighborhoods are good or bad, and what to offer on the house. I've tried to ask her questions about specific places we've looked at, but almost every question I ask is answered with "I can't really answer that due to state laws" or something, I guess realtors can't comment on the quality of the neighborhood, the types of neighbors, the quality of the school districts, etc. as it is against some law that doesn't want realtors affecting real estate value. At least, that's what I gathered. Luckily my parents are very knowledgeable with real estate, and my Mom was a realtor for 10 years, so I have plenty of support outside of my realtor.
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Aug 27, 2009 17:41
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Cmdr. Shepard posted:almost every question I ask is answered with "I can't really answer that due to state laws" or something, I guess realtors can't comment on the quality of the neighborhood, the types of neighbors, the quality of the school districts, etc. as it is against some law that doesn't want realtors affecting real estate value. At least, that's what I gathered. What State do you live in? That sounds like crap, but states do have different laws. I know that doesn't seem to be the case in Maryland.
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Aug 27, 2009 18:46
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Hey Leperflesh, the NUMMI plant in Fremont appears to be closing in March and 4,600 jobs are going with it. That will definitely have an effect on the East Bay property market.
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Aug 27, 2009 21:23
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Hmm, yeah. Honestly Fremont seems to mostly be people who commute to san jose for tech jobs, but that's still a solid employment hit there. It makes perfect sense for Toyota of course. Labor costs in CA are far too high to be running a manufacturing factory in the east bay, it's just dumb. Might as well shut it down when orders are low and your other factories in the US can pick up the slack. Thanks for the heads-up.
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Aug 27, 2009 23:28
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Michaelos posted:What State do you live in? That sounds like crap, but states do have different laws. I know that doesn't seem to be the case in Maryland. quote:What I am writing about here is mostly in response to Fair Housing laws and the governments attempt to eliminate discrimination in Real Estate/Lending.
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Aug 28, 2009 00:06
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Can someone give me a bit of a breakdown on what normal condo fees are? I'm seeing a lot of places with $400+ monthly fees which just sound extremely high for buildings with no pool or doorman or anything like that.
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Aug 28, 2009 00:24
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qirex posted:Can someone give me a bit of a breakdown on what normal condo fees are? I'm seeing a lot of places with $400+ monthly fees which just sound extremely high for buildings with no pool or doorman or anything like that. It depends on the area and what's included. I'm treasurer for a tiny (8-unit) condo association, our dues are $290/month. We include routine exterior maintenance/grounds upkeep (300-400 per month), cable tv (~250/month), water (~450/2 months), electricity for outbuildings (~100/2 months), sewer (~200/month), trash/recycling (~250/month), pest control (~50/month), insurance (~400/month, walls-out), and earthquake insurance (~2500/year). Leftover is put in reserves, which is tapped for emergency situations like our water going out or non-routine maintenance like tree removal. It's also not really enough, since we had an assessment to deal with reroofing instead of having it already in the reserves.
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Aug 28, 2009 00:36
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Yeah, what the money goes toward is more important than what the cost is. My $309 / month goes toward lawyer fees for our lovely lawsuit, a likely broken (and leaking pipe) water bill used by a bunch of renters (free water, omg!), various maintenance that's underfunded by around 70%, garbage / waste disposal, a tiny pool, a horribly maintained hot tub, and legally required insurance. Two years ago, it was $226 / month - the fees increased because of lawyer fees and water, that's it. If I got cable included, I wouldn't bitch as much, but the rather ho-hum clubhouse gets cable while residents have to pay for it on their own. It's up to you whether it's worth the fee, and it can go up or down, but I've rarely heard of condo association fees going down.
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Aug 28, 2009 13:27
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qirex posted:Can someone give me a bit of a breakdown on what normal condo fees are? I'm seeing a lot of places with $400+ monthly fees which just sound extremely high for buildings with no pool or doorman or anything like that. That sounds about right. The only condo fees I've seen that are small are because they're starting small and they go up every year. I've known people who bought a condo 5 years ago paying $170/mo that are now paying $440+/mo. As condos age their need more maintenance. Since chances are your 3 month old condo won't need a new roof anytime soon, it looks low accordingly. This is one of the huge reasons I think a condo is a sink hole for money for most people. You pay HOA fees that are roughly equivalent to $60,000 in a 5.5% 30 year mortgage, and your resale market is limited to people like you (most people don't want to a raise a family in a glorified apartment). Zombie Dictator fucked around with this message at 15:06 on Aug 28, 2009 |
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Aug 28, 2009 15:04
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Zombie Dictator posted:(most people don't want to a raise a family in a glorified apartment).
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Aug 29, 2009 01:43
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Dropping in to say that buying a home in the Northern Virginia area is a pain in the rear end. Today, I'll probably put an offer on a condo (3-level townhouse style) listed at about $120,000 with condo/HOA fees totaling under $200/month. This is the third townhouse I'm putting an offer on. Maybe I'll get this one, maybe an investor will. For reference, I'm 20-years-old (and still in college), make $44k base salary, and have a little over $40k in savings. I'm currently splitting a $1260/month apartment with a friend. I'm looking to buy a home for $180,000 at the highest, but lower would be better and anything that high would have to seem like a really good investment. My roommate will likely rent a room from me, as will another friend at some point. I am in no way dependent on people renting from me, however. That $120,000 would be extremely affordable even on my own. I could just run around my entire townhouse naked all the time. But then I'd be lonely. So I can probably rent to a couple of friends for $400 or so a month which will cover the mortgage and condo fees. That leaves a $44k/year cable TV budget, right? Just kidding. Edit: No debt! I make most of my purchases on credit cards, usually totaling $300 (give or take $100) each month, and then pay it off in full each billing cycle. My credit score is between 720 and 770 depending on which bureau you ask. I Dream of Tetris fucked around with this message at 19:38 on Sep 1, 2009 |
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Sep 1, 2009 19:34
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We saw a house in Hayward this weekend that was pretty ordinary. 3 smallish bedrooms, 1.5 bath, a 2-car garage, corner lot with an unimpressive backyard and some fairly nice, albeit worn, parque flooring in most of the rooms. 1150 sq. feet, asking price was $230k. Our agent contacted the seller. They had opened for offers for exactly one week. They had 55 (fifty-five) offers, were making counteroffers to three of them, and the house was no longer open for offers. Fifty-five loving offers, for a modest house in a modest neighborhood of Hayward, CA. Given the asking at $230, they'll probably get like $300k for it or something. Maybe more, if it'll appraise for enough for the buyer's bank to approve a loan, assuming the winning bid wasn't a cash offer. There are a lot of cheap houses right now in the Bay Area, but there seem to be a huge number of buyers trying to get them. That's got to be setting a floor to the prices. We'll see what happens after the 15th (when the supposed foreclosure moratorium ends) and Nov. 30th (when the FREE MONEY goes away) but unless something big changes, I don't think we're going to see prices at the bottom of the market slide downward much more.
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Sep 1, 2009 19:42
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moana posted:It's pretty standard, as far as I can tell, due to fair housing laws. Here's a realtor quote I found talking about why this is the case: Huh. I didn't realize this because I was sure my current realtor has commented on the neighborhoods at least once, although I don't remember the wording, so she probably wasn't breaking this restriction.
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Sep 1, 2009 19:50
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I don't want to start a new thread just for my specific situation, so I'm going to post it here. If you all think I should make my own thread, let me know - I don't want to break any thread rules. I'm trying to decide if buying a condo makes sense for my situation or not; I'm not sold on the idea one way or another, but with the markets how they are I'm exploring it. However, every single mortgage person tells me something completely different and I'm starting to get tired of trying to sort out what actually makes sense. I've made countless spreadsheets and believe I could make the payments, but I'm not very familiar with the process of getting credit nor if this would actually be smart in the long run. So, my financial situation. I have no debt (no student loans, no car payment, no rolling credit card balances), and these are my monthly important places where I have monthly payment money: Net Income (after taxes, 401k contribution, deductions, etc): ~$3,900 Rent: $1,350 Parking: $240 Savings: $700 With everything else (utilities, gas, insurance, groceries, vacations, etc) I come out about even over the rest of the year (i.e. I don't put any extra into savings but I don't take anything out either.) If I needed to come up with extra money for monthly payments I could definitely tighten my belt, and also drop my 401k contribution from 10% to 5% (the company match). That would probably give me an extra $200 / month. I currently have $42,000 in savings. My credit history is good (somewhere around 780 I think), and I'm in little danger of losing my job as far as I know. My lease is up May 1 but I can get out of it with no penalty if I keep until November 1. The type of place I would like to buy (I live in Chicago) would probably run for $350-$375K. Taxes would be around $4,500 / year and assesments would be <$300 (by my own requirements). My dream is to put down 20% but I recognize that might not be possible; 10% would be as low as I'd be comfortable going. I'd want a 30 year fixed mortgage. I don't really understand points and all of that stuff so I don't know what I'd do there. My parents have set aside $40,000 to loan to me for the downpayment, but would probably want to give me $26,000 this year and the rest next year for tax reasons. However, my dad is somewhat uncomfortable with listing something as a gift when I would actually be repaying it to them by private agreement. My mom would be okay giving it to me and never having me pay it back, but I don't want to ask them to do something that they wouldn't both be comfortable with so I'm not counting on that money. Another potential source of income that I can't fully count on would be my sister, who will likely move here and live with me beginning in November whether I've moved or not. If she does live with me she will pay rent (probably ~$600 / month if I buy a place, $450 / month if I don't). So my question is, given all of that, should I push to buy, or wait until my lease is up / I've saved a bit more myself and then go for it? I've heard that potentially the tax credit will be extended or house prices might go down more once it's not available. I've also heard that Chicago's housing "collapse" is behind other cities and we may not have hit bottom yet. I'd like to have my own place, I'd like to have a nicer kitchen than I currently have, and I'd like to have a bedroom for my sister to come to, but it's not worth making a poor decision. Any advice? Edit: I forgot to mention that if my car crapped out or something I wouldn't need to replace it. I only bought it because it was the car my parents let my sister and me use in college and they were going to just store it in a barn so they gave me blue book value and free dad maintenance for the life of the vehicle as long as I came to visit. I only use it to drive out of town and go to the grocery, and I could go back to Amtrak / Zipcars if the car died. I also forgot to mention that as part of my exploration I was pre-approved through my bank for $325K. They didn't try anything higher than that because I had no idea what types of prices I was looking at. Sophia fucked around with this message at 04:20 on Sep 2, 2009 |
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Sep 2, 2009 04:10
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$325K @ 5.25% is $1800/mo just on principal (initially $375) and interest (initially $1425). By the time you pay taxes and insurance you will be way over half of your income going to pay for housing. Not to mention HOA fees on a condo added in there as well. The interest on your mortgage will equal what you are paying in rent halfway into year 4. If you have a $400/mo tax payment and $200/mo HOA fees you will begin breaking even versus renting around year 19. My wife and I have a little more in take home, and with no debt we would still only feel comfortable at ~$200K, and that would be single family homes with no HOA fees.
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Sep 2, 2009 14:31
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Arzakon posted:$325K @ 5.25% is $1800/mo just on principal (initially $375) and interest (initially $1425). By the time you pay taxes and insurance you will be way over half of your income going to pay for housing. Not to mention HOA fees on a condo added in there as well. The interest on your mortgage will equal what you are paying in rent halfway into year 4. If you have a $400/mo tax payment and $200/mo HOA fees you will begin breaking even versus renting around year 19. While I admit $325k when you're taking home $3900/mo is way too much, you could afford a little over $200k if you wanted (depending of course on stuff like a reasonable HOA, interest rates, other future major purchases, etc).
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Sep 2, 2009 15:44
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^^ I don't see why that would be way too much - the payment he talked about is something I could easily make with a few lifestyle modifications (get rid of the gym membership, take domestic vacations instead of international ones, cut down the cable package, buy generics and plan meals more carefully) and still save ~$300 / month, plus I would gain about 1,000 square feet and two bedrooms. Maybe I just live less expensively than other people, I don't know. Okay, thanks for the advice. If my sister comes back then I'm definitely getting a place when my lease runs out, so it looks like it would be better just to wait to see if that materializes. I wouldn't be too worried about a monthly total (mortgage + taxes + HOA) of $2300 or less even on my own so if I save up for another 6 months and have a renter it sounds like it's within grasp. Sophia fucked around with this message at 15:54 on Sep 2, 2009 |
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Sep 2, 2009 15:44
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Sophia posted:^^ I don't see why that would be way too much - the payment he talked about is something I could easily make with a few lifestyle modifications (get rid of the gym membership, take domestic vacations instead of international ones, cut down the cable package, buy generics and plan meals more carefully) and still save ~$300 / month, plus I would gain about 1,000 square feet and two bedrooms. Maybe I just live less expensively than other people, I don't know. Its not that you couldn't afford it, you can probably make the payments, but $2300 is almost 60% of your take home. That is heads and feet above what most people consider reasonable for housing. On top of that you just need to be aware that it is not a sound financial decision over renting. Do you really want to adjust your savings, vacations, cable plan, and eating habits just for another 1,000 square feet of living space that you have to share with a roommate? Have you investigated renting in the communities you are looking at?
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Sep 2, 2009 16:21
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Sophia posted:Condo
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Sep 2, 2009 16:33
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Well, like I said, if she comes back, my sister will be living with me whether I stay in my one bedroom or move to a different place. I don't want to live in my one-bedroom with a roommate for another year, but if I move I want to move somewhere for the long term since I hate moving, and I don't think I'll move out of Chicago for a long time, possibly until I retire. Buying seemed like the natural fit for the situation, and most of my single coworkers that make the same amount as me own places in the $300 to $400K range. I guess I'm a little taken aback at the responses here because of that but I'll certainly think about what you're saying. Thanks again! Edit: And that is to say, I'll reevaluate whether or not renting something between the two of us makes more sense than trying to buy something. Sophia fucked around with this message at 17:15 on Sep 2, 2009 |
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Sep 2, 2009 16:56
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Sophia posted:Well, like I said, if she comes back, my sister will be living with me whether I stay in my one bedroom or move to a different place. I don't want to live in my one-bedroom with a roommate for another year, but if I move I want to move somewhere for the long term since I hate moving, and I don't think I'll move out of Chicago for a long time, possibly until I retire.
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Sep 2, 2009 18:14
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I'm 26. I've been living in the same apartment and working for the same company in Chicago for a little over 3 years. Definitely won't be getting married or having kids anytime soon.
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Sep 2, 2009 18:34
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Sophia, have you looked into what's available for your price range? As a general bit of advice: it's usually a bad idea for people to "stretch" to afford the biggest payment they possibly can. A lot of things can happen in the next ten years that could affect your budget; anything from a spike in tax rates, insurance, rising HOA fees (and they never go down, they only go up), a change in career or employment, a new partner... a big health emergency... It sounds like you're in very good financial shape (no debts, good savings). Don't sabotage that by buying the absolute most you think you can afford. If you're dead set on getting a condo instead of a house, I suggest you account for a steady increase in HOA fees over time in your budget; assume you could at any point have to get a new job at a 10% pay cut; assume you might have to go 6+ months without a roommate/renter; and assume that property taxes, insurance, etc. could also rise by 5 or 10% at any point. Taking all that into account... are you sure there isn't a condo or (better) a house out there for, say, $250k, that'd suit your needs?
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Sep 2, 2009 18:50
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Just wanted to share my experience buying something called a Tenancy in Common (TIC) in San Francisco. Basically, most of the older buildings in San Francisco are registered as one house and very few people can afford that in the city (multiple millions for small 2000-3000 sq ft houses). For some unknown reasons the city only allows 200 houses a year to convert into condos via a lottery. The rest of them are owned by these TICs (in other big cities they have cooperatives or co-ops which are similar to this). A big problem with having TICs and a big reason for why they are cheaper than condos, is that only a handful of banks offer mortgages on them, and the terms are always much worse. With my 780 credit score and a 60% downpayment, I got a 6.75% Adjustable Rate Mortgage (5/1 LIBOR ARM). On a condo, the same terms would give me about 5% fixed. I bought a unit in a 5 unit TIC. The total cost for the unit was $517,500 for an 850 sq ft two bedroom. My parents contributed a very big portion of the downpayment so we put 297,000 down and 220,000 as a loan. Closing costs were 6700, the majority of it coming from the 2200 loan origination fee and 1800 title insurance. (is that a lot?) Overall, it looks like my monthly payment will be 1426 loan 500 property taxes ~300 HOA dues HOA for a TIC is formed by the owners and we get to decide how much will go to reserve and what insurance to get, so I am still looking to see how that all work out. But anyway, if you have any question abotu this stuff or generally buying in San Francisco, feel free to ask.
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Sep 2, 2009 22:07
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There are whole entire houses in SF that can be had for $500k. (Example: This house in Sunnyside.) So I'm kind of stunned at that price for a share in a TIC. 850 square feet is a pretty normal size for a condo, too. I suppose location is everything, though; I hope your location is really good. Personally I rejected the idea of a TIC early on for the same reasons as rejecting a condo or townhouse; I don't want to deal with an HOA; unpredictable fees, other people deciding what color I can paint, where I can park, etc; and (particularly with a TIC) other people having a say in when I can sell and to whom. Then again, I'm looking to buy at less than half the price you were shopping for, so maybe my own perceptions of what I'm willing to accept are skewed by being in a different tier of the market. Leperflesh fucked around with this message at 22:26 on Sep 2, 2009 |
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Sep 2, 2009 22:23
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Pinkied_Brain posted:A big problem with having TICs and a big reason for why they are cheaper than condos, is that only a handful of banks offer mortgages on them, and the terms are always much worse. With my 780 credit score and a 60% downpayment, I got a 6.75% Adjustable Rate Mortgage (5/1 LIBOR ARM). On a condo, the same terms would give me about 5% fixed. Which bank did you go with? I got a 30 year fixed at 4.75% and 20% down payment with Wells Fargo. I got really lucky locking my rate at the bottom of the dip earlier this year.
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Sep 2, 2009 22:31
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It makes sense banks don't like TICs, of course; if you default, it'll be much harder for them to turn around and sell the foreclosed TIC unit, since the other unit-holders can essentially change the TIC contract at-will and make it really unattractive to anyone they don't like.
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Sep 2, 2009 22:54
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Sophia posted:Buying seemed like the natural fit for the situation, and most of my single coworkers that make the same amount as me own places in the $300 to $400K range. I guess I'm a little taken aback at the responses here because of that but I'll certainly think about what you're saying. Thanks again! You're in the Chicago market - most people on this forum aren't, so you're going to get responses from people who live in more affordable areas in terms of cheaper real estate, lower taxes, etc. 60% of take-home pay for housing sounds high, and it is, but it's about par for the course if you're buying in the Chicago area. All 3 of my friends who own places are between 50-60% take-home pay for their housing costs. Obviously these are single-income households, it would help if you are married or have a roommate. I just got a townhome in the suburbs that I'll be closing on the end of this month. The mortgage will be 58% of my takehome pay. Fortunately, I'll have a roommate so it will offset the cost. And this is one of the cheapest places I've found that is still livable and not in a lovely neighborhood. Another thing is taxes, which are skyhigh around here. 3.7% tax rate on the townhome I just bought and then I read about goons who enjoy 1-2% tax rates around the country. I'm not telling you to go out and buy that condo, honestly $325k for a condo sounds ridiculous to me, but I understand where you're coming from and why you'd feel taken aback by the responses here. I have a recession-proof job so I'm not worried in that regard, but it's something to consider yourself if you're willing to put that much money into housing. The Shep fucked around with this message at 23:56 on Sep 2, 2009 |
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Sep 2, 2009 23:44
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Not that I'm one to talk - buying in the SF Bay Area - but the issue really shouldn't be "this is what people like me in my area are willing to pay." What is important is whether it's worth it to you, and those other people's situations don't matter a bit. A hell of a lot of people are being foreclosed on this year because they bought on the basis of what their peers were doing, rather than a sound analysis of their own finances, needs, and flexibility. If you think it's worth 60% of your income in order to own, then maybe it is. There are a substantial percentage of people out there right now who are sorely regretting making that decision... the hard-liners in this forum are only trying to convince folks not to become part of that demographic. There are areas where houses cost too much. It's too easy to lose sight of that.
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Sep 2, 2009 23:50
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geetee posted:Which bank did you go with? I got a 30 year fixed at 4.75% and 20% down payment with Wells Fargo. I got really lucky locking my rate at the bottom of the dip earlier this year. Wells Fargo does not offer TIC financing. In fact there are simply NO fixed rate mortgages for TICs unfortunately. That's why the rates are not competitive, which is why if you get a TIC, you better have a big downpayment ready. quote:There are whole entire houses in SF that can be had for $500k. (Example: This house in Sunnyside.) Well I wanted a place in the city - my apt is 2 blocks north of the panhandle and a couple blocks east of GG park. So I think 500K for 850 sq ft is not too bad, though obviously sounds crazy for anyone outside of SF and NY. HOA is definitely something I am still concerned about (Escrow closes at the end of September), but rememebr that it's a small house. My apartment is almost 25% of the house, so I will have 25% of the vote to decide all the things you are talking about. I've seen 2 unit TICs too, where you would basically have veto power on every decision. Obviously the other tenants can be a pain in the rear end, but it's not like some random person decides somethign and you have to do it. (Something that can potentially happen if you buy a house in a big community) Pinkied_Brain fucked around with this message at 01:38 on Sep 3, 2009 |
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Sep 3, 2009 01:05
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Leperflesh posted:Not that I'm one to talk - buying in the SF Bay Area - but the issue really shouldn't be "this is what people like me in my area are willing to pay." What is important is whether it's worth it to you, and those other people's situations don't matter a bit. For gently caress's sake, please heed this point. The average credit card debt for the American household is $13,000. I sure as hell don't have $13,000 in debt because my coworkers do. This whole credit and housing crisis is because of way too many people living above their means, so why are people still using "well this is what my friends do" as reasoning for their financial decisions?
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Sep 3, 2009 01:22
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I don't use "it's what my friends do", but I do use "I'm in a different market" as a barometer for how much housing costs. Housing in Chicago is a larger part of your budget; it's just a fact. Obviously the people I know who don't live here and can get a 3 bedroom house in a nice neighborhood for 200K don't go out and get a 350K one just because they can. But here, a 3 bedroom will run you 375K in the city and a 2 bedroom is probably 300K, especially if you're a single girl who knows nothing about home repair and safety / condition is a concern. And those prices are a lot lower than when I first started looking. I mean, if I can't buy because it will be smarter in 7 months when I have a bigger down payment, prices might be lower and know for sure I have a roommate, that's what I wanted to think through, but when I moved here I knew I'd be getting into that housing boat. When I first got here my rent was 45% of my take-home and that's what I planned for to get the type of place I wanted. I still managed to save 25% of my pay (plus do a 10% 401k contribution) by dint of being frugal in other areas. This isn't to say that I don't appreciate the advice, because I had no idea how people in the rest of the country saw this type of monthly payment %. It's convinced me that I definitely need to hold out until next year to build up more money and to see if I have a roommate or not, since that will make the difference (and I don't have a great desire to move or buy if I don't have one). But I think it's a little ill-defined to say someone is living outside of their means when they're fully aware of the cutbacks they can / must make to get something that they want. It's the people who want something expensive without giving up anything else that they have that are "outside of their means" in my book.
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Sep 3, 2009 02:09
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Sophia posted:I don't use "it's what my friends do", but I do use "I'm in a different market" as a barometer for how much housing costs. Housing in Chicago is a larger part of your budget; it's just a fact. Obviously the people I know who don't live here and can get a 3 bedroom house in a nice neighborhood for 200K don't go out and get a 350K one just because they can. But here, a 3 bedroom will run you 375K in the city and a 2 bedroom is probably 300K, especially if you're a single girl who knows nothing about home repair and safety / condition is a concern. And those prices are a lot lower than when I first started looking. But go ahead, buy the place you can just barely afford if everything goes perfectly. There's no way the life of a 26 year-old who's been in the same spot for almost 3 years now can possibly change significantly.
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Sep 3, 2009 02:51
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Pinkied_Brain posted:Well I wanted a place in the city - my apt is 2 blocks north of the panhandle and a couple blocks east of GG park. So I think 500K for 850 sq ft is not too bad, though obviously sounds crazy for anyone outside of SF and NY. Sunnyside is in the city - although obviously not as nice/close to downtown as upper/lower haight/panhandle - but it's true prices go up a lot if you want that kind of neighborhood. (Honestly I kind of hate Haight now, it's full of panhandling kids with dogs and the Gap and poo poo, has lost all its old character, but whatever.) Sophia, it sounds like you're going in with your eyes open at least. Clearly you understand the financial situation you're taking on. What many first-time buyers don't realize is how much of their monthly costs are still not going towards equity... and how there are hidden costs that can go up (especially if there's an HOA fee) and have to be accounted-for. I'd say you're fine, given that you're aware of it.
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Sep 3, 2009 02:55
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Thanks Leperflesh, you gave me some good ideas about building some adverse scenarios / increases into my projections to see what I could handle if something unexpected happens. And sorry to anyone who thinks I may have been snippy or stubborn at them in the thread, but I feel like some people think I'm fiscally irresponsible or something for considering my options / recognizing the realities of my housing market when they don't even know me or my history - it made me a bit defensive. I do know how to manage my spending, I swear, and I'm just exploring. Half of the reason I came here was because half of the mortgage brokers I talked to told me I could afford $360K with a 15% downpayment easily and I didn't know if I could believe them or they just liked my credit score. Turns out that it's the latter. 
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Sep 3, 2009 03:22
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Pinkied_Brain posted:Wells Fargo does not offer TIC financing. In fact there are simply NO fixed rate mortgages for TICs unfortunately. That's why the rates are not competitive, which is why if you get a TIC, you better have a big downpayment ready. Fair enough, but I guess they're not that similar to co-ops then because that's what my apartment is. Or, I should say, maybe they're similar, but there is some very important difference. Either way, sorry, that sucks.
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Sep 3, 2009 03:56
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Sophia posted:Thanks Leperflesh, you gave me some good ideas about building some adverse scenarios / increases into my projections to see what I could handle if something unexpected happens. And sorry to anyone who thinks I may have been snippy or stubborn at them in the thread, but I feel like some people think I'm fiscally irresponsible or something for considering my options / recognizing the realities of my housing market when they don't even know me or my history - it made me a bit defensive. I do know how to manage my spending, I swear, and I'm just exploring. Affordability is a floating standard. People would pay 90% of their income toward a mortgage if the mortgage included almost all their living expenses anyway.
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Sep 3, 2009 04:40
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Sophia posted:Half of the reason I came here was because half of the mortgage brokers I talked to told me I could afford $360K with a 15% downpayment easily and I didn't know if I could believe them or they just liked my credit score. Turns out that it's the latter. It is unfortunate that even with all the ridiculous banks just went through, some of them still come off like this. I live in Boston and am looking for a house there. Homes here cost 80% more than they do even in Chicago, so I can commiserate with expensive housing prices. I feel stretched even for a $400,000 house, and yet the bank was happy to encourage me to look at $500,000. Pretty ridiculous. I'm glad to hear though that you're going to wait a bit before making this decision. I know there's been a few times I've been so desperate to find a house (been looking for a year now) I've wanted to look at houses out of my range.
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Sep 3, 2009 15:48
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