First House – Poor people weigh in!

posted 1 year ago in Home
Post # 46
Member
9096 posts
Buzzing Beekeeper
  • Wedding: October 2013

do you need to buy?  i know plenty of people in certain cities who rent because it is way too expensive to own.

Post # 47
Member
4022 posts
Honey bee
  • Wedding: August 2012

What about a place with rental opportunities? Like a basement apartment? Theoretically you’d qualify for a higher mortgage if you had (potential) rental income coming in. My understanding is that qualifies towards your income.

Post # 48
Member
6396 posts
Bee Keeper

So that’s a lot of money from where I’m from.  I think you need to look at something that is manageable, even if it’s not new appliances/construction and something you can work on updating yourselves over the years.  I bought a house that foundation and inside wise is fine but a little dated.  We are now just adding a few things that have really just brightened and changed the tone of the house up.  but that took a few years and on top of that our house was markedly cheaper than the others because it was a bit dated.

Post # 49
Member
1346 posts
Bumble bee

penny1403 :  Respectfully, these two things do not add up:

“well I live in a large 5 bedroom house on several acres. It is possible even today. I also live in one of the most expensive areas in the US.” 

and

“I have always been low income”

A decent 3 bedroom single family home on under an acre in the most expensive area near me would put someone at/over 500k.  A five bedroom home on several acres would be millions.  And this is not in one of the most expensive areas in the US.

I do apologize that I had missed your first reply where you explained your income, exhaustive home search and foreclosure purchase, which does help bridge the gap in the two statements a little bit.  But I still think this is a stretch in the most expensive areas of the US today.    

“If I can do it anyone can do it”, is not really true.  While you are right to be proud of your accomplishments and all hurdles and set backs you overcame there will always be others that had or have even more to overcome, perhaps had worse luck, at more pivotal times.  One can be proud of what they have been able to do by a combination of grit and good fortune without judging others that may be on a lower level or slower path of achievement (which is of course relative).  

“Education doesn’t mean squat”  Well, that is one opinion.  Education comes in many forms by the way, it is good to continue to learn and broaden our understanding as we grow.

 

Post # 50
Member
4689 posts
Honey bee

Just here to commiserate renting here in SoCal in the US. Houses in our area have cash buyers too that offer sight unseen at times. Especially items with a good price that needs fixing. Our area just went up too so now its around…wait for it…. $700,000 give or take for a house here. Some areas are $500k but that’s going to be a 2 hour commute. So we’re renting for the time being and for quite awhile most likely. 

Post # 51
Member
465 posts
Helper bee
  • Wedding: October 2018

I gotta move out of Los Angeles, these housing prices people are saying make me want to cry. We rent a one-bedroom apartment and thankfully have rent control, but 2 bed/2 bath house in my neighborhood just sold for $1.3 mil and I am just so worried about the future. 

Sorry I don’t have advice, OP. Best of luck. 

Post # 53
Member
953 posts
Busy bee

LilliV :  I paid more than the listing price for my home, which was a fixer upper foreclosure. It was a bidding war with 30 offers on the very first day it hit the market. My market is similar to Boston. Actually Boston is only 10% more expensive than my area. I paid $290k in a house that appraised for $500k less than 6 months later. All I did was add running water. 

My point is I get it. I had similar battles. I searched every house the moment it went on the market. If I liked it, I made an offer immediately. I looked at over 300 houses and made offers at least a dozen times before winning the house I currently own. Be persistent and anyone can buy in any market. 

Post # 54
Member
420 posts
Helper bee
  • Wedding: July 2018

sparklegoth :  Just my 2cents, why not keep renting until you can save up more? We are putting off buying until we can save 20% and have 6 months emergency fund saved on top of that so buying a house can be an enjoyable experience and not a stressful one. You want your home to be a blessing, not something that breaks you financially.

 

If you haven’t heard of him, I recommend checking out Dave Ramsey’s youtube channel to listen to a few of his podcasts, he is a financial adviser, he also has a book called The Total Money Makeover that I recommend.

Post # 55
Member
269 posts
Helper bee
  • Wedding: St. petersburg, FL

I feel the struggle, bee. 

My Fiance and I are closing on a property neither of us went into this process thinking we’d want. We went in thinking that I would buy (i’m a first time buyer – he already has a condo) and do the loan/house in just my name and take advantage of that FHA loan. We would buy a beautiful 3 bedroom, 3 bath townhome with a garage, a yard, and live happily ever after. 

LOL.

I live in the DC Metro area. I make a great salary, as does he, so financially we qualified for way more mortgage than what i’d even pretend like would be feasable to pay each month. 

Long story short – we’re closing on a 2 bedroom (both master bedrooms 😀 ), 2.5 bath townhome/condo end unit with a garage in a neighborhood 5 miles from the area we originally wanted to be in. We’re also paying about 100k less than what we went in thinking was comfortable. Basically, we had an awesome realtor who found us a lot of things we really liked, but in a different type of home that kept us comfortable with our monthly payment. 

Keep an open mind, and know that it will take time. We put an offer in on a different townhome that was more our original “dream home”, and it was rejected because a full cash offer was accepted. I’m really glad (even though at the time I was bummed) it didn’t work on that, and even though we’re moving into something not exactly our “dream home”, we realized a lot of things along the way that actually make this home better for both of us, so it changed what we were looking for (space needs, location, $$$!). 

Don’t be discouraged – the right one will come along, and you will know it!

Post # 56
Member
9245 posts
Buzzing Beekeeper
  • Wedding: August 2012

Not all townhomes/condos share walls. I live in a completely different location obviously, but there are quite a lot around here that have a garage in between the actual living spaces.

Post # 57
Member
2372 posts
Buzzing bee
  • Wedding: December 2017 - Courthouse

My husband and I are in escrow right now! We’re trying not to get our hopes up because we’re having appraisal issues. 

Anyhow, we definitely looked at homes way under out budget. I want to stay at home one day when we have children so we got preapproved with ONLY my husband’s salary. This way, right now we will both have plenty of money to pay the mortgage but we are already set for the future if I decide not to go back to work. 

Because of that, we are looking at homes that are a little smaller than we’d hope. However, we found a few neighborhoods that are a little “further out” that are only 5 min or so further from shopping and schools than homes in town that cost the same or more money. I think sometimes it’s worth it to look outside the location you want to live in and hone in on what you really want. And there’s nothing wrong with compromise. 

We also got an awesome Realtor and I would highly recommend to get one that can help you with the process. I don’t know what I’d do without her. Especially since it’s our first home buying process. 

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