YART: Fiance wanted to buy a "new" condo instead of renting

[rh71]

Originally posted by: mugs

Originally posted by: freesia39
no one can afford a decent house, i don't know how people do it. if my parents put their house on the market, they could get 900k easy, no repairs needed, extremely well maintained home in a very nice, quiet neighborhood, good schools, etc.

It makes me wonder why people are so reluctant to move out of California and so willing to live IN California. Any time a real estate thread pops up here, the Californians jump in with how much it costs to live in California.
(none of that was directed at you, your post is just what prompted me to say it )

I am interested in the answer to this as well. I can understand NY because of "the city" and being within an hour of it is awesome... but what is it about CA ? Is it just the weather ?

 

[eflat]

Originally posted by: PandaBear
Yet another real-estate thread:


Here is the deal:

We got into a fight recently when I found a house I like, $620k in South San Francisco near Hickey, a beater that has termite and fungus that need about $30k to $40k to fix up, in good but old neighborhood. She didn't like it and we got into a fight, I end up not bidding for it and let it go, got very upset.

So we decided to just rent for a while but she started getting interested in real estate (now that the market is soften abit, but not a lot) and want to get a house in newark/fremont etc. We looked around and can't find anything we can afford (around $450-600k) and so we decided to look at alternative.

She now wants to consider condo or townhouse. Those things are about $200-300 per month in association fee. I don't like that idea and rather have a complete ownership including the land, and moreover, I felt pissed off about she wanting new things and being superficial (she won't admit it, just say she can't handle old things).

To be honest I still felt hurt about losing out on that house I like, but I can live with that and rent a $1k apartment for a couple of years. But paying for a condo that is $450-550k instead? Thats a bit insane I think.

So what do you think of our situation, whether we should buy or what should we buy?




We:

plan to get married next year in June, engage this december.

have no debt

need to move out of our parents and live together.




She:

likes newer community, newer remodeling, own our own place, don't mind paying for a bit more than rent. Don't mind town house, don't mind condo.

Just got out of school, making $56k.

Working in South San Francisco in a good company.

Living at home in San Leandro.

have 30k saved up in cash.



Me:

want to get a good deal, don't mind fixer upper, prefer to have a real house (no association fee, get the land, etc), don't mind old but good/safe neighborhood, don't mind old house.

don't mind renting for a couple of years to wait for more down payment or the housing price to drop.

Worked for 3.5 years and making $63k, doing part time master program.

Working in San Jose/Milpitas in a decent company.

Living with parent in San Francisco.

have 85k saved up in cash.

my advice is to buy a NEW place. really that guarentees you will not have to worry about maintainence and it's just a lot cleaner.

not everyone is a neorotic mold and germaphobe like myself so some people find charm in these old termite ridden, rotting, moldy pieces of ****** they buy.

but if it were me i would buy the condo unless you have the money to constantly be fixing a house up. which it does not sound like you do.

 

[eflat]

Originally posted by: CitizenDoug

Originally posted by: PandaBear
Yet another real-estate thread:


Here is the deal:

We got into a fight recently when I found a house I like, $620k in South San Francisco near Hickey, a beater that has termite and fungus that need about $30k to $40k to fix up, in good but old neighborhood. She didn't like it and we got into a fight, I end up not bidding for it and let it go, got very upset.

So we decided to just rent for a while but she started getting interested in real estate (now that the market is soften abit, but not a lot) and want to get a house in newark/fremont etc. We looked around and can't find anything we can afford (around $450-600k) and so we decided to look at alternative.

She now wants to consider condo or townhouse. Those things are about $200-300 per month in association fee. I don't like that idea and rather have a complete ownership including the land, and moreover, I felt pissed off about she wanting new things and being superficial (she won't admit it, just say she can't handle old things).

To be honest I still felt hurt about losing out on that house I like, but I can live with that and rent a $1k apartment for a couple of years. But paying for a condo that is $450-550k instead? Thats a bit insane I think.

So what do you think of our situation, whether we should buy or what should we buy?




We:

plan to get married next year in June, engage this december.

have no debt

need to move out of our parents and live together.




She:

likes newer community, newer remodeling, own our own place, don't mind paying for a bit more than rent. Don't mind town house, don't mind condo.

Just got out of school, making $56k.

Working in South San Francisco in a good company.

Living at home in San Leandro.

have 30k saved up in cash.



Me:

want to get a good deal, don't mind fixer upper, prefer to have a real house (no association fee, get the land, etc), don't mind old but good/safe neighborhood, don't mind old house.

don't mind renting for a couple of years to wait for more down payment or the housing price to drop.

Worked for 3.5 years and making $63k, doing part time master program.

Working in San Jose/Milpitas in a decent company.

Living with parent in San Francisco.

have 85k saved up in cash.

my advice is to buy a NEW place. really that guarentees you will not have to worry about maintainence and it's just a lot cleaner.

not everyone is a neorotic mold and germaphobe like myself so some people find charm in these old termite ridden, rotting, moldy pieces of ****** they buy.

but if it were me i would buy the condo unless you have the money to constantly be fixing a house up. which it does not sound like you do.

and let me let you in on a little secret. there is not going to be any housing "price drop"

ever heard of this place called mexico? there are a lot of kids there. and they are all growing up. and they are all coming here. and the population in california is going to skyrocket and real estate will always be at a premium. buy while you still can.

 

[PandaBear]

Here is the reason we don't want to move out of california yet (maybe in the future but not right now).

1) Our family (our parents) are here, and they are old, so we want to take care of them if possible.
2) We have jobs here and want to grow our career a bit before we leave
3) I am doing school, don't want to quit half way
4) Friends are here

 

[dxkj]

Originally posted by: slick230

Originally posted by: PandaBear
Rent vs. Mortgage:

Rent is about $1k for a one bedroom.

Mortgage is about $2.5k for a 2 bedroom condo for 30 years 6.1%.

Still think mortgage is a good deal?

If you rent, you own nothing. You have no equity in your home. At least with a mortgage you build equity and have ownership. And you can turn around and sell in a few years if that's your wish. Renting gets you nothing but a temporary roof over your head and a lower monthly payment.

and take a 200k hit when the bubble bursts in those overinflated area.s

 

[xgsound]

Originally posted by: PandaBear
Here is the reason we don't want to move out of california yet (maybe in the future but not right now).

1) Our family (our parents) are here, and they are old, so we want to take care of them if possible.
2) We have jobs here and want to grow our career a bit before we leave
3) I am doing school, don't want to quit half way
4) Friends are here

Here's a thought.
Stay where you are (no debt, renting, and saving) for 3/5 years and use the accumulated savings to buy an estate (3 homes on the property) or Mansion for cash in a more affordable area of the country where you can find work and money goes further. Your expences will certainly be lower with no rent or mortgage. The worst case is you will have a huge down payment even if you stay in CA.

The parents could (if you want) live with you and still have an independent life if you have enough property. Help in child rearing would be handy.

As an example, 200K for a mansion (4 or 5 bedrooms and den) in historic district of downtown Parkersburg, WV with annual taxes of $800. Just outside of downtown you can find 20+ acres with several homes on them for a little higher price with lower taxes.

Obviously this would not be for everyone, just an interesting thought.


Jim

 

[thecritic]

I guess you missed out on those small, new homes they were building in Emeryville about 6 months ago. Someone I knew bought one for under $400K with gov't subsidizing, and he made about the same amount of money you did.

Ever look into buying a house in Elk Grove or the Natomas area and commuting to work?

Mike

 

[QurazyQuisp]

I agree... Move

My oldest brother just bought a brand new house... $161,000.... I think it's 1800 sq ft. Walk-out basement... it's a nice house. 60,000 isn't what I'd call a san fransisco wage.. You both could easily find jobs paying as much as they do right now...

Michigan isn't bad... Just the weather sucks 90% of the time.

 

[Rudee]

Both of you need to double your current salary to be able to afford a house in the $600k range. Otherwise, you will be 'house poor' for the next 25-30 years, thus money will be your biggest cause of arguments between the two of you. The result, the Big D.

 

[dirtboy]

You never own your land as long as there are property taxes.

I'd rent, especially since I'm Bearish on the housing market. Opportunities will show up as prices fall. Unless you must buy something today, renting is the only way.

 

[spidey07]

Originally posted by: Rudee
Both of you need to double your current salary to be able to afford a house in the $600k range. Otherwise, you will be 'house poor' for the next 25-30 years, thus money will be your biggest cause of arguments between the two of you. The result, the Big D.

heh, already covered.


True to the core however.

 

[Rudee]

Originally posted by: spidey07

Originally posted by: Rudee
Both of you need to double your current salary to be able to afford a house in the $600k range. Otherwise, you will be 'house poor' for the next 25-30 years, thus money will be your biggest cause of arguments between the two of you. The result, the Big D.

heh, already covered.


True to the core however.

Yup, I've witnessed it with my own eyes. A couple of good friends of mine had a very simlar situation. Got married, got into too much debt too quickly by taking too high of a mortgage. Ended being house poor, thus bickered and argued about every penny that passed through their fingers. One of them lasted 7 years before Divorce, the other lasted 5. One is also paying child support now. They're both still bitter and full of regret. Happens all the time with hundreds of thousands of young couples every year.

 

[mercanucaribe]

I would kick her to the curb! I can't stand new houses or even condos. Old houses have character and feeling to them In my opinion, people who place value on newness are the ones who have no taste and no sense of place... Probably grew up in some anonymous suburb.

 

I would never consider buying a 650k house that needs nearly 50K in repairs to make it liveable.

 

[EKKC]

i wont go near anything above 300k

i bought a coop in nyc last year. me and my gf 50/50.
she makes 52k, i was making 68k at the time. i now make 100k+ in new job (3 months in). but still money remains an issue. (maybe in a few months it wont)
we bought a 150k home and we took a 100k mortgage 15 years. that's still a bitch at 800 a month, along with maintenance, high cost of utility and this awful winter with higher energy cost, we'll be out 1600 a month. (still better than renting at 1300 a month)

esp. if you guys are not planning to have kids soon, settle down in a smaller apartment first, 1 bedroom/2rooms etc. but keep saving money for that next house. remember, you buy a cheaper house but that is still accumulating in value, when the time comes you've saved some more $$$ and able to move on, the cash you'll be able to get from the place you're selling (that's down payment and principal you paid, plus its appreciated value) will be cash for your next home's down payment.

take it slow. it seems like you're real good in saving money anway, going to school, making 60+k and able to save 80k in just 3 years. i can never do that.

edit: do some more research, association fees for the condo will be nothing if you compare it with the tax off of a house. compare the actual monthly payment you guys will be making , compare between the house and a condo. there are so much hidden fees in after getting the house, that will make many think twice (home insurance, flood insurance, quake insurance, etc) whereas many condos and coops put that fee into their association or maintenance fee already.

 

[sandorski]

Others have offered great advice, but I thought I'd throw this in: If a Condo is much more affordable, go for it. Just because you buy it doesn't mean you need to live their until death, certainly better than buying something you'll spend your life paying for. Pay it off quickly, then if you want Sell it and move somewhere else. You'll probably end up moving eventually anyway, 40ish years is a long time and if you play your cards right you can own several homes in that time.

 

[Pocahontas]

[/quote]haha 600k for a beater.

lol, that would buy you a castle in michigan.


That would buy you a 5-10 bedroom with gazillion amount of lakefront overlooking beautiful Lake Michigan in St Joseph, MI. The best schools, in a quant, quiet community.

 

[rh71]

Originally posted by: EKKC
i wont go near anything above 300k

i bought a coop in nyc last year. me and my gf 50/50.
she makes 52k, i was making 68k at the time. i now make 100k+ in new job (3 months in). but still money remains an issue. (maybe in a few months it wont)
we bought a 150k home and we took a 100k mortgage 15 years. that's still a bitch at 800 a month, along with maintenance, high cost of utility and this awful winter with higher energy cost, we'll be out 1600 a month. (still better than renting at 1300 a month)

$1600/mo. is straining your combined salary of $170k+ per year ? We've got $2100 + utilities/gas/food/misc every month and we make less than that but it's still bearable. You have car payments or something ? Or kid payments ?

 

[mrrman]

buying anything is better than throwing your $$$ away on rent

 

[ajayjuneja]

Originally posted by: Whoozyerdaddy
You guys make $120k and you're looking in the $600k price range? :shocked:
That's complete insanity. You'll be working just to afford the mortgage. I make a little less than you guys do combined and I would find paying more than I do right now (have a $170k mortgage) to be uncomfortable.

My advice is to aim lower. MUCH lower. An additional piece of advice is to not even think about buying a place together before you are married. If you're already fighting about what/where to buy you need to take a step back.

I agree with him. I live in Mountain View, and I know Cali real estate is insane, but you really don't want a 4-5K mortgage over your head every month. I highly recommend renting for a while.

Face it, in the bay area, you need to have a six figure income yourself AND you need to marry someone with a six figure income to afford a decent house here.

Or, you need to have a seven figure income. These are the realities of the bay area unfortunately... just my take on it.

 

[777php]

I'm almost in the same boat as you two, I'm looking for a $450-600k house/condo/townhouse pretty much anywhere in the bay area except for the ghetto. I've been looking at Dublin/Pleasanton and Fremont. I work in Sunnyvale and currently live in Oakland so living in any of those three cities would cut my current commute in half.

There are new condo's being built in Dublin called the Dubling Ranch Villages for around $500-600k which is alot, but if you follow the recent trend in that area specifically you can look to sell that for at least $100k more within a few years.

Another new condo complex by DR Horton is being built there as well called Elan, and if you get into the first phase of building you may get a pretty decent price on it and you'll have to luxury of knowing the appreciation when the last phase starts selling.

If you want to wait a couple of years Toll Brothers is building a new community behind the Dublin Ranch Villages called Sorrento which will consist of Single Family Homes, Townhouses, and condo's. Again if you get in early you'll get a better price and know how much money your property has gained.

With all of that said, I've also been looking at older townhomes, condo's and houses. To find a single family home for under $600,000 is going to be nearly impossible in a good area. Some area's of Fremont you'll be able to find a few but they would be in the less desirable ones.

Ultimately I'm leaning towards waiting for a little while until my GF gets out of Optometry school and we can afford a new house which will most likely cost us $700k, but I will have a lot more saved up by then. However, If I do find a good deal on either a townhouse or condo I will jump on it now as in a few years we can sell and put the appreciations towards our new house. I figure the sooner I can jump into the market, the better, the prices may have stagnated a little but they will always go up.

For your situation I'd say get a condo/townhouse for now, and when you've graduated and are making more you can sell and afford a nice big expensive house in an area that you really want to live in.

 

[RMSistight]

Originally posted by: Cattlegod
haha 600k for a beater.

lol, that would buy you a castle in michigan.

Yeah but you never get sunshine everyday over here like we do in CA. =)

 

[mugs]

Originally posted by: RMSistight

Originally posted by: Cattlegod
haha 600k for a beater.

lol, that would buy you a castle in michigan.

Yeah but you never get sunshine everyday over here like we do in CA. =)

Yup, that's worth living on a shoestring budget in a crappy house because houses are so darned expensive...

 

[JImmyK]

I was at the same crossroads last year unfortunately I have just a single income so 500 was my max.

I did TONS of research and townhouse was by far the best deal, I probably end up paying only $1000 in fees per year compared to 5000 in a condo. And with that 1000 they do a lot take care of my grass concrete sidewalks etc so it is def worth it.

Get an end unit so you have the privacy, they have tons of space (I got 2100 livable sq ft plus a 2 car garage for my car fetish).

Its more then big enough for a family of four for at least the first ten years, when kids become responsible and can help MAYBE then you can think about upgrading.

My folks have a 7,000 sq foot home with a 10,000 sq foot lawn trust me its a bare to maintain the lawns with just my dad and mom living there. Homes are way to much trouble... I love my neat tiny little townhouse...

 

[sygyzy]

My god, how do you both have so much saved up? I know, living at home, but still. Crazy!