First House – Poor people weigh in!

posted 2 years ago in Home
Post # 2
Member
134 posts
Blushing bee
  • Wedding: October 2018

You probably are already doing it, but if you’re budget is 250k, you can look at houses up to 275k probably. Depends how hot the market is in your area, but it’s usually assumed that the listing price is higher than what people really want. Also, if you don’t already have one, get a real estate agent, they’re usually pretty helpful especially if this is your first house.

Another thing, you said you wanted detached but since you are living in an appartement right now anyway, it maybe be worth it to either try to get a duplex or get an attached house.

 

With the duplex, your husband probably would qualify for more and you’d have someone else paying the difference per month  So other people will be paying for your mortage.. then you can either sell it in a few years to be able to afford more or you could rent both places, so you have an added income and then you can pull out the equity to have a downpayment and means to pay for better house.

Same for the detached house, you can live there or rent it a few years and then either rent it or sell it to try to have better.

Check with a mortage broker or real estate agent what could be possible for your situation.

The market seems to be hard right now, my Brother-In-Law is trying to buy a house in that pricerange in Quebec and pretty much everything is either in terrible condition or has accepted offers on them… 

 

Good luck!

 

Post # 3
Member
792 posts
Busy bee
  • Wedding: September 2018

I’d say be more open minded. I nearly didn’t go and see the house that I’ve loved living in for 11 years now because the photos online weren’t that great. It had hideous decor, but over the first few years I personalised it a lot. 

I sometimes get comments that it’s in the ‘rough’ part of town, but honestly, I’ve never experienced any issues. It’s actually an area full of people like me – young professionals who are trying to get on the property ladder – and the snobby comments are decades out of date.

You might find a wonderful semi-detached. They are certainly not all bad! At least go and see some?

Post # 4
Hostess
4236 posts
Honey bee
  • Wedding: December 2016

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sparklegoth :  We are in a similar position. The last house we put an offer in on at 310, someone put in a CASH offer of 321 immediately after us. Who the hell has $321,000 just lying around?!? I picture them all shady with a brief case full of cash…

We made the decision last week that we are going to build in a new subdivision. The lot and the house are all rolled into the same loan because it’s all done through the same company. The house will be brand new, and nice (for our budget) and the lot is a nice size, so in the long run I think it will be the best idea for us. Are there any new subdivisions going in where you are?

The market is totally nuts here, our county has the fastest growing municipality in the US right now, and people are fleeing California and moving to where we are and they are all cash flush because they sold their houses there for a bazillion dollars, so we just can’t compete. It has been such a relief to get a lot and have the realtor tell us that no one can swoop in and take it from us! We even put a little deposit down to “reserve” it so no one else can have it! It was so emotionally exhausting getting our hopes up for a house then losing it. Ugh. 

Best of luck Bee, I hope it all works out for you! 

Post # 5
Member
2858 posts
Sugar bee
  • Wedding: July 2018

First off, ignore your parents or tell them you already know their opinions so you don’t need to hear it again.  Back then you could work at a factory with only a high school diploma and afford a nice big 3-4 bedroom house at age 23.  So FUCK OFF BABY BOOMERS!

I agree with PP about just checking out everything in your price range.  I would stay away from mold and foundation issues though :/  

Do you have to stay in your city?  Sometimes the housing is just not affordable, period.  Ugh, I’m sorry, good luck!

Post # 6
Member
377 posts
Helper bee
  • Wedding: June 2015

I live in a popular tourist town that also has many retirees…so the housing market is pretty ridiculous.  Husband and I loved our rental and were lucky to be month to month, so we were able to be picky when it came to buying a house and we didn’t have to settle.  I’m working full time and my husband is currently in school working part time, and we don’t have much money at the moment, so we had tricky parameters for getting a house.  It took us about 8 months to find our house (we switched realtors six months in), and it met all our criteria.  The thing that made it achievable in this super competetive market was that our paperwork was ready to go-so when we liked it, we were able to make an offer right away.  We lucked out!  We came to see it on the day it was listed (which was a rainy day, which probably deterred some other people) and made an offer on it the next day (I think.  It might have even been that night.  Can’t remember).  The lady selling the house was also ready to go quickly and I think she just wanted to be done with selling without engaging in a bidding situation or counteroffering.  We’re still buddies with our realtor and he actually just told me that many of his clients are looking for houses like ours to no avail.  So my advice to you would be to get all your papers in order and to get clear on what you want, so that when you find your unicorn you can jump on it quickly!  

Post # 7
Member
502 posts
Busy bee
  • Wedding: October 2015

Ooh, I’ll play! 

Hubby and I are currently working on closing on our first house, and we’re in a similar situation of “middle class poor.” We don’t have student loan debts, but neither of us make a ton of money in our respective careers. Fortunately, we live in a state with a low cost of living, so our home budget is actually even smaller than yours. 

The market here is absolutely brutal, as the supply just can’t keep up with demand. To keep within our budget comfort zone, we had to compromise on a little on the number of bedrooms and bathrooms (2 beds, 1.5 baths instead of the 3 beds, 2 baths that we wanted), but the house itself is solid construction. We also didn’t have much time to make a decision, as hubby starts a new job in a few weeks and we did NOT want to live with my parents while house hunting and going through 30-45 days of closing. 

Here’s my advice from our experience:

1) Definitely get a realtor! We would not have found our house without our realtor. She actually found our house because it was for sale by owner, and she had worked for the seller before. We were able to get an offer accepted before a cash buyer came and scooped us.

2) Keep an open mind. We originally wanted 3 bedrooms and 2 bathrooms, but we wound up with 2 bedrooms and 1.5 bathrooms. Luckily it’s just the two of us and our pets, and the two bedrooms are large enough that the guest room can also double as our office for now. We also plan on doing some work on the house to upgrade the half bath and reclaim an attached garage as living space. The only thing you can’t change about a house is location, and the location is perfect for us being close to amenities and hubby’s job.

3) Don’t be afraid to make a quick decision in today’s market. We actually offered on our house without seeing it in person, which was a huge risk that paid off. We’re moving 5 hours from our current location, and my dad was a trooper and looked at houses with our realtor to weed through any bad options. It turns out most of the houses we wanted to see were just not going to work (bad construction, bad neighborhood, etc.), so we were left with this one. Dad Facetimed us and walked us through the house, and we knew a cash buyer was coming the next day. We offered on the spot, got it accepted, and now have both been in the house and love it. If we had waited, we would not have a place to live now.

Good luck, OP! We feel your pain!

Post # 8
Member
11381 posts
Sugar Beekeeper
  • Wedding: City, State

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KittyYogi :  

Whoa. I’m a Boomer and you’re confusing us with our parents.  By the time we came of age, those happy, halcyon days were over and the horrible ‘70s were upon us.  I don’t know anyone of my generation who was able to buy a home at 23.

A huge percentage of Boomers are struggling going into what should be their retirement, but will be working until they drop.

The current real estate market is not our fault.  It goes in cycles and what goes up will always come back down.  Ranting about the state of the market won’t change it.  Not everyone can buy the house they want right now.  You can buy a lesser house and move up, buy a house you can’t afford and struggle, or keep renting until the market cools down again and/or you have a bigger down payment.

 

 

Post # 9
Hostess
2482 posts
Buzzing bee
  • Wedding: October 2017

Where I’m from in Ontario 250k isn’t going to get you anything worth buying

maybe looking outside the city you live will help? 

Also get a realtor and a lawyer for when you do purchase. Seriously lawyers are 100% necessary for transactions this big  

View original reply
KittyYogi :  seriously grow up, this has nothing to do with baby boomers- you just sound sour over not being able to afford your dream home. 

Post # 10
Member
2858 posts
Sugar bee
  • Wedding: July 2018

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ladyvk :  lol I have a great little house that I love. No bitterness over here. If you don’t think economic times have changed and older generations shouldn’t expect 23-year-olds to follow in their exact same path, well 🤷🏻‍♀️ you do you. 

View original reply
sassy411 :  ah indeed, my bad. Certainly the Greatest Generation, and maybe the older half of boomers? My folks bought a pretty sweet big house for like 75,000 back in the day which is a hell of a deal even given inflation. 

Post # 11
Member
809 posts
Busy bee
  • Wedding: July 2017

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sparklegoth :  woah bee! You sound to be in a very similar position as me and hub. I would consider ourselves also “poor middle class”, we both have decent careers (I’m a supply teacher and hub is a machinist), but have pretty significant student loans. We were also approved for 250,000$ and are struggling to find anything within that price range on a decent sized property. (We are also Ontario). Anything we have seen in the last few months has either been a nice house with a tiny back yard or lots of property but the house is literally falling apart! I’m trying to remain optimistic that spring will bring more inventory and the market should settle down a little bit. We are also looking outside of the city because we want to be in the county, but ironically and unfortunately, the houses in the city are actually priced lower than they are in the suburbs or county. The city is actually an undesirable area for us to stay due to rising crime, but the houses are so much cheaper than anywhere else in our area. Husband and I have looked at several houses in the town where we grew up, which is right outside of the city we are currently in… but it is such a popular and sought after area that houses are going 50,000 to 100,000$ more than they would anywhere else! It’s a very frustrating time to be a home buyer. Just keep your eye out and as soon as you see something you like, try and get in THAT DAY! You will find something. Also, if it makes you feel better… hub and I are in our  late 20’s and we are the only ones in our friend group that already have a house so… your mom is obviously not aware of the “changing times”!!

Post # 12
Member
10358 posts
Sugar Beekeeper
  • Wedding: City, State

I bought my house for $50k as it had a somewhat seedy history and needed a lot of renovation. My dad thankfully was able to do a lot of the remodeling and now we have the option of using it as either a rental down the line or selling it and almost tripling our money.

Would you be able to consider a cheap house that needed work and use some of that money to fix it up? 

Post # 13
Member
306 posts
Helper bee
  • Wedding: December 2018

Your story has a lot of parallels with my own.  We’ve been shopping for a house within the same budget, running into the same issues.  Every time we try to move forward with purchasing a good quality place, it’s suddenly under contract.  And the places that don’t sell as quickly are the ones that would never pass inspection and would cost a small fortune to make livable.  We expanded our search to other states even and nothing felt right.  This went on for a year before my fiance and I had what most might consider a crazy epiphany.  Long story short, we spent our down payment savings on a camper instead and intend to sell all our stuff so we can just live out of a cute converted van.  Instead of rent, we’ll be paying to stay at RV parks (which is usually much cheaper, and often includes utilities), and trying our hand at boondocking (which is FREE).  My fiance’s job is flexible enough that we can get by comfortably with him working only a few months out of the year.  And I intend to continue working at my current job while we’re staying in the area and get creative with odd jobs while we’re on the road, if only just to keep myself busy.  Once we made the decision and started moving forward, everything began falling into place.  We’ve done a lot of research and discovered a huge community of people out there doing it and loving it, so I’m convinced it’s worth a shot.  It’s not for everyone but we’re really excited to give minimalism a try and get out into nature more.

I know this is probably the most ‘out there’ suggestion but just wanted to remind you that there are alternatives available.  Any option is possible.

Post # 14
Member
2314 posts
Buzzing bee
  • Wedding: October 2019 - Chateau Lake Louise

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sparklegoth :  So, I’m what I like to call a FoPo; grew up super poor, but FH is financially in great shape, which I have benefited from.

With my income alone, i just breach “middle class” but have substantial student loan debt. 

Before I met FH I was in the process of looking at floorplans for a tiny house. I wanted to put it on a piece of land, but realistically would have put it in a park, then saved up longer for some acreage. 

There are so many incredibly beautiful and innovative options. The one I was most excited about was roughly $50k to have built to my specifications. Depending on how handy or ambitious you are, building yourself is even less. 

With your budget you could probably get land, all the utilities pulled, and a really nice tiny house in the bargain. You wouldn’t be inheriting other people’s problems and they’re usually exceptionally efficient, which reduces the cost of ownership, too.

Just another option to consider. 

Post # 15
Member
11381 posts
Sugar Beekeeper
  • Wedding: City, State

View original reply
KittyYogi :  

What year did they buy it?

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