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Thinking of buying a house - a little overwhelmed

Home Forums General Columbus Discussion Q&A Thinking of buying a house – a little overwhelmed

Viewing 15 posts - 31 through 45 (of 54 total)
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  • #509672

    cbus11
    Member

    A couple of years ago a coworker bought a nice, 1100 sqft ranch in Upper Arlington for around $100k. I wouldn’t just limit your search to up and coming areas – though you will have to be patient. If you are still building a down payment I would use that to your advantage.

    I also would like to second those that are saying you should consider a house a place you live, not an investment.

    #509673

    dubdave00
    Participant

    Biggest thing with buying is being sure you want to stay. Selling a home can be a huge expense and stress.

    You need to live at the place long enough to pay realtor costs of 5% or 6%, plus inspection fixes, as well as losses (If the market blows). So if you do FHA at 3.5%, you’d still have build up an additional 1.5% or 2.5% in equity just to pay for a realtor to sell it or have that amount saved aside.

    That’s not horrible… What killed people were the 0% down loans with variable interest rates, followed by property value losses. It was a perfect storm of awful and many foreclosed because they couldn’t afford to pay the losses of maybe $10,000 – $20,000 and realtor fees when they only had $4,000 in equity after three or four years.

    Now is a great time to buy, if you have nothing to sell, good credit, and are looking to stay for a while. There are banks doing 5% down conventional with no PMI right now. Rate is a tad higher than market, but the monthly payments end up better than FHA. Only problem with those is that PMI goes away after you hit 20%, but your rate stays the same unless you refinance and I doubt we’ll see 3% rates for a while.

    #509674

    mrpoppinzs
    Member

    susank said:

    I attempted to purchase a foreclosed HUD house in Old Town East recently but was out bid. I was really bummed by that as it was in really nice condition.

    If you are looking in OTE I would expect there will be plenty of similar opportunities in the next couple of years. A lot of people overextended themselves especially in OTE. I have been told there will be a lot of foreclosures hitting the market in the area.

    If you do buy an older, large house be sure to take into consideration heating and cooling costs.

    #509675

    manticore33
    Participant

    This is a personal decision on what you want to do. Try to find an area that you are committed to and thoroughly enjoy. And, try to anticipate what future you wants. In terms of being fiscally conservative with a ton of savings, that is up to you and how much uncertainty you can stomach. Life is risk and anything can change in a moment whether you are prepared or not. I tend to take the plunge approach and it has worked out well for me. At this point I would not think of home as an “investment” but more for its utilitarian aspects.

    My wife and I purchased a 4 bedroom move-in ready split in 2005 for $133k in Delaware, OH and have been extremely happy with our decision. In the first two months of owning the home, the furnace went belly up and we had to replace it. Aside from paint, the house been pretty trouble free. We could use new carpet after seven years, but with two children (3 & 5) and three dogs, it will wait until we are ready to sell. Even with our “bubble price” home, the mortgage only slightly higher than rent on a 2-3 bedroom place. We’ve only lost maybe $10k-$15 in asset value, but it is not about assets, it is about livability. which we could have lost 650/mo*84 = $54,600 in rent. Plus, not had the tax deductions, space (2,100 sq/ft livable), and less at-home flexibility.

    Recently, we have decided we want live more rural and plan on making that change in the next 18 – 24 months. It would have been nice to have known that when we originally purchased our current home. However, it is one of the chicken and egg debates. I can’t say I would know I want to live rural being a renter. Owning this house has allowed us to truly determine what we want in our next phases of life. My wife loves to garden, have animals, and I love the flexibility to have a garage and work on cars. A lot of rental places/apartments do not necessarily accommodate our personal interests.

    Take your time to find something that you want, is affordable, and can last you a while. Any movements you take with a house will be slow and be time consuming.

    #509676
    Chris Sunami
    Chris Sunami
    Participant

    Definitely take your time. We were searching for a year and went through two false alarms before we found an outrageously underpriced foreclosure here in an up-and-coming corner of the KLD.

    By the way, people are right when they say budget for major repairs even in a home in good condition. And although 2.5 times your salary is the standard and conservative estimate of your home buying power, I personally would suggest holding out for something well under that.

    What are you looking for in a neighborhood?

    #509677

    mrpoppinzs
    Member

    In your price range you might want to consider looking at Westgate. It is in the Hilltop but has Clintonvillesque qualities.

    #509678

    lifeliberty
    Participant

    I’m selling my house and moving to Fton. I’d like to live East of the hospital, but seems only places to buy are west of it. I feel like I’m in the burbs although I’m only at 71 and Weber. thinking I want to talk to someone in the FDA about it. http://www.franklinton.org/contact-us.html

    #509679

    myliftkk
    Participant

    Snarf said:
    Are the same people that are against buying houses also who ditch cable for internet tv?

    I feel there’s a Portlandia episode here.

    I do like some Portlandia, but I’ve also had cable for over a decade.

    If I could afford it, I’d live in a Waldorf Astoria, but who wouldn’t?

    #509680

    lifeliberty
    Participant

    buying is cheaper than renting. for what i pay in a mortgage there is no way I could rent and get the same kind of space/yard/garage

    plus I like the fixed mortgage and equity, rents seems to be shooting skyward

    #509681

    mrmann
    Member

    ChrisSunami said:
    Definitely take your time.

    No doubt, There are deals to be had if you are patient and prepared. Get your paperwork in order and keep your eyes open for foreclosures in the areas you are interested in. I am sure you will find something nice within a year. I know you are interested in the Grandview area and I recall a foreclosure sold for $80k on Northstar Rd last Fall as a relative almost bought it.

    #509682

    myliftkk
    Participant

    lifeliberty said:
    buying is cheaper than renting. for what i pay in a mortgage there is no way I could rent and get the same kind of space/yard/garage

    plus I like the fixed mortgage and equity, rents seems to be shooting skyward

    Actually untrue (there’s a number of sources that broke down how renters netted better financials over the last decade). Obviously specific cases vary greater depending on location, seller/landlord motivation etc.

    Most budget rules of thumb say housing should be around 30% or so of your monthly budget. I’ve managed to stay housed in a very nice rental at around 15-22% of monthly income for years. Rents are as varied as landlords generally, it just depends on the financial situation of the landlord. Getting a good deal on a rental takes as much work as finding a good deal on a house.

    True, you could always do as a friend did and purchase a 14-room Victorian mansion out in a tiny town an hour west of Columbus for 250k. I don’t envy his drive into his business in Grandview every day, but I can argue that it wasn’t a nice place he got.

    #509683

    lifeliberty
    Participant

    i was saying that for the total amount of money i spend, I have never found anything I could rent that would offer the same amt (or more) of space and living amenities. I’ve been looking at apts because i plan on selling my house and I might be forced into a rental if i can’t find a house to purchase right away, and i gasp when I see what I have to pay and what i will get in return. in my view when you rent you are just paying the landlord’s mortgage for him, might as well just have your own.

    but that is an opinion, because some people can get into a nicer area by essentially co-oping by being a collective of individuals that all rent out a space at a property that none of them could afford the entirety of the property themselves. (if that makes sense)
    so it really depends on what is inportant to you. i like that if renting you are not “fixed”, it is easier to leave a lease than a mortgage.

    #509684

    bucki12
    Member

    There are still a lot of risks to buying a house. A neighbor when I was in the KLD had to move for his job. He was unable to find a buyer as most people are looking for steals in the area. He eventually ended up renting it out at a loss plus the hassle of hiring people to do maintenance.

    You might not see this happening to you, but it does happen. All of those foreclosure sales have a sad story behind them.

    How much do you currently pay in rent?

    #509685

    Anonymous
    Inactive

    ChrisSunami said:

    What are you looking for in a neighborhood?

    This.

    As much as I like my house, I like my neighborhood AND location.

    #509686
    Chris Sunami
    Chris Sunami
    Participant

    bucki12 said: All of those foreclosure sales have a sad story behind them.

    So true. Someone before us sunk a ton of money into this house and clearly didn’t get any of it back. In this market I would argue there’s no sense in buying any house that isn’t selling for considerably less than it’s worth.

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