Buying property

[Lindsey]

Well, last week I went to the bank to get pre-approved for a mortgage. I was curious to see how much I could get. My school loans are really holding me back, but I can't get them paid off any faster right now. The lady at the bank told me it would be a really good thing to get into real estate as young as possible, and start building up equity. To be honest, I don't understand it so well, but she made it sound great!
I have been looking for a little while. Houses are almost out of the question with the small mortgage I could get. There are a few very old houses in very old (and not so safe) neighborhoods that have been flipped and are in my price range. However, they are all under 600 square feet, with bedrooms so small I could barely fit my bed into them. I really love having a yard, but I'm not sure how much I would use a yard in a neighborhood like that, plus I wouldn't feel safe alone and would probably get another, bigger dog (I love Layla to death and she loves being the "only child" but she's just not threatening enough if someone broke in ;)). I'd also have the extra cost of a security system.
If I would like to go without the yard, I found a 910 square foot apartment-style condo in a building I used to rent in. It's on the top floor, so no noise from people above, and it's an end unit so I'd only have neighbors on one side. 3 bedroom apartments are very hard to come by in this city, but this one is three bedrooms, has in-suite laundry, security doors, a deck overlooking the parking lot and tennis courts, and is PET FRIENDLY! There are no pet friendly condos around here! It's in my price range because nothing has been done to it. It has original carpet and linoleum, original kitchen cabinets and countertops, old appliances.... BUT I could redesign the place how I want it. If I lived there for a few years I could just work on it while living there. And in the end I'm sure I could make a lot of money if I sold it in 5 or 6 years.
I guess my big push besides the whole equity thing is that I'm really tired of having roommates. I would love coming home and it just being me and Layla. I could watch tv when I wanted. I could leave dirty dishes in the sink for a day if I didn't feel like washing them :) I wouldn't have to wait my turn to wash clothes! I could stay up late with my boyfriend or friends without worrying that I'm keeping someone awake in the next room.
I don't think I want to buy a condo before summer though, because I really do enjoy my yard in the summer. And I really love my house. I guess I'm just in a situation where I feel that if I took that leap, I'd really miss what I have now! I know it's not forever... if I got married and had that extra income, a house would be no problem. But until that happens, I'm either renting and putting my money in someone else's pocket, or buying a place and investing in something for me.

[Lindsey]

Oh yeah, if Scott and I do end up moving to Texas as we've been planning, I could just rent the place out :) It could pay more than my mortgage, especially if I had three people renting and had some updates done by then!

[judy]

The condo sounds great Lindsey! Can you live with a deck instead of a backyard?
That sounds like the only negative.

I have a very large deck, and it is so nice. But, a backyard would be ideal. I could
let the dogs out to play in the grass. But, in a condo, you don't have to do any yard work like getting the snow off the walks, etc.

I lived in a top floor, corner apartment. It is really nice to have nobody on top of you and you should have windows on all of the walls for a wonderful breeze.

[Lindsey]

Thanks for your input Judy! I have been toying with the idea a lot. My mom is against me buying a condo, but I don't think it's such a bad idea. She thinks I need a yard and that I would lose money on a condo and it will be hard to sell later. But I really don't think so... my brother is an electrician and he is wiring all the new condo developments. There are tons of condos being constructed because there is demand for them!
My grandma also lives near this condo, and my grandma has a yard :) Layla and I could go hang out with her in the yard on nice days, although Layla would have to be leashed because she can fit through the fence. But Layla can run around off-leash in the dog park, and she can run around my parents' huge yard every time we visit!
I guess I would really just like a place to call my own. I want to have a real home!

[DianaB]

Lindsey, I haven't answered because I really don't know what to tell you. My best advice is still to talk it over with your parents. We live in such a small town that the prices of things just don't compare between where you live and where I live. You seem really young to go into debt that far by yourself but I don't know all of the facts either. Good luck with your decision.

[Lindsey]

I guess that the thing is I will be paying to live either way... right now our duplex is $1125 a month for rent, with about 700 square feet of living space on our main floor for three of us. In comparison, the condo would be about $750 a month for a mortgage, with 910 square feet to myself :) And if I really wanted extra spending money, there is enough room for a roommate, although I would rather just be alone.
It is a lot of debt, I know that... but I am in debt for the next 15 years from college anyway. I guess the main thing is I can either throw my money down the drain by renting, or invest my money in something by buying.
I actually emailed a real estate agent this morning to try to schedule a showing. I'd like to at least see the place before getting too excited about it.

[Lindsey]

I just happened to be browsing some websites this morning and came across a new listing for a 780 sq ft split level in a great neighborhood on a 50x140 ft lot AND in my price range :D
It's a definite fixer upper, but has original oak hardwood floors under the ugly old carpet that could be refinished. It was built in 1912 but has a full height basement with a lot of windows. The basement walls have been reinforced over the years (I don't know if it's good that they have been reinforced, or bad that they had to be reinforced... future problems?) Anyways, the rooms are all huge! And the basement could possibly be finished (it is unfinished) and a third bedroom could be added... it is currently a 2 bedroom/3 bathroom home. I think 3 and 3 would make it more appealing to families when I decide to sell!
Lucky for me, my brother is an electrician, and my cousin is a plumber. The back yard is all rock, which I am not a fan of. I like grass! But one of my good friends from back home just happens to be a landscape architect, and her dad is a carpenter :D
I emailed a realtor to go have a look... I don't want to get my hopes up too high in case the house is beyond repair. It looks like an old man had been living there... The basement was used as a workshop and the house looks very cluttered. The master bedroom had a single electric adjustable bed. Maybe the man passed away and the family wants to get rid of the house as soon as possible (with the real estate market this slow, the low price would make sense) or maybe he was put into a care home... I'm just hoping the price isn't so low just because there is so much wrong!

[judy]

Good luck Lindsey!

[Lindsey]

:( The realtor just said they got 2 offers the day after it was posted and they accepted one of them.
But I did find another just down the street from my grandma's house... it's a much smaller yard, and there are no pictures of the inside, but it's a beautiful 1912 1-1/2 story house right across from the high school my dad used to go to :) The back yard has a 2 car garage with back alley access, and a nice sized garden.
This whole house-hunting thing is pretty exciting for me :D

[Blueyes]

Hold out for exactly what you want Lindsey! House hunting is a lot of fun, but it's also stressful. You are smart to look for something before you HAVE to have it:)

[Marilyn]

:( The realtor just said they got 2 offers the day after it was posted and they accepted one of them.
But I did find another just down the street from my grandma's house... it's a much smaller yard, and there are no pictures of the inside, but it's a beautiful 1912 1-1/2 story house right across from the high school my dad used to go to :) The back yard has a 2 car garage with back alley access, and a nice sized garden.
This whole house-hunting thing is pretty exciting for me :D

This sounds much better than the last one. Let us know how it all works out!!! Wishing you the very best in your search!!

[Lindsey]

Thanks :D I'm going to look at the house tomorrow evening and probably two condos tonight

[judy]

Thanks :D I'm going to look at the house tomorrow evening and probably two condos tonight

I was told today by some of my writing group friends that we don't call where I live
"the condos." We call it "the townhouses." It makes us sound fancier.;):p;)

Keep us posted.

[Lindsey]

:) So far, so good! I got to look at the smaller 2 bedroom condo today. I really liked it. Everything has been redone, it's just ready to move in! The floors are really nice, and the super soft carpet was heaven on my feet :) Of course, it would probably also be Layla's favorite pee pad :rolleyes: Anyways, the only downside is that it's a condo and there's no yard.
After seeing the condo, the realtor wanted to go for coffee to explain the whole buying process to me. She even bought my coffee! There was a bit of stuff I wasn't expecting... first of all, the closing costs would pretty much equal exactly the amount of money I have saved up for my Europe trip :( The second was a downer about buying a condo... that if the condo owners decide they need a new roof for example, they can go to each person and say "We need $2000" and you have to pay up. I just don't think I could handle the unexpected costs. Scott told me that just happened to one of his friends.... she bought a condo and the condo people decided it was time to replace all the windows so she had to cough up $4000 :eek:
AND about the house... the tenant needs 24 hours notice to get his big angry dog out of the house before people go inside. My realtor tried calling him a few times today and he won't answer his phone. She talked to the owner of the house and he said the only reason it hasn't sold yet is because the tenant is being very uncooperative about letting people in to see the place. He doesn't want to move.
Anyways, she did leave a message saying we want to look tomorrow night. We will hopefully also be able to see the larger 3 bedroom condo tomorrow night. We couldn't get in tonight since the two people living there have the flu.
Oh yeah and she said her big concern is about basements in old houses like that. She asked the listing agent and she was told that there are no major problems at all with the basement which is great news! She also told me "If you're going to live there all by yourself you might want to get a bigger dog.... I just don't think your yorkie will offer much protection!" lol... I have been looking into that too!

[Blueyes]

I think you should just move to Texas;)

[Lindsey]

I think you should just move to Texas;)

Lol... if only it were that easy! If I started the process right now I might be able to do that in a year or year and a half :) Still an option, if I could get a good renter after buying a house!
Okay so I looked at two houses last night. The first one was just a little over my price point but has a brand new kitchen and bathroom. GORGEOUS. The rest of the house still needs some work. It is a 1912 house, with original hardwood in some areas and some original walls. They actually told my realtor yesterday they were just in the process of pulling it OFF the market to do the finishing up renos and then sell it for $30,00 MORE :eek: She told them that would put it out of my range so they let me look at it as it is now.
We went to the second house... the two story that was so cute on the outside... DISGUSTING on the inside. It would basically need to be gutted to the studs and completely redone. I just don't have that kind of money.
So we went back to the first one. Scott came over and my brother came over. The basement isn't usable, but it's dry and looks in good condition. Water heater and furnace are relatively new. The appliances (fridge, stove, washer, dryer, dishwasher, range hood) are all new. They did a half-assed job for most of the renos but I can redo them.
The upstairs... OH the upstairs! It's so beautiful! I would use the whole area as a master bedroom area. There are two dormer windows in one area, and the back is where the bed would be and there is a HUGE picture window, it takes up basically the whole wall and looks over the back yard. It's a half story so the walls are slanted up the sides which takes away some of the real USABLE area, but Scott was talking about building homemade dressers to utilize some of the space.
The problem is I'm leaving tomorrow and I'm not back until Monday... I'm not sure how long they will hold off on doing renovations to let me think about buying it as it is now :(
Oh, and it's a half a block from Kyle's mom's house :rolleyes: and not a super great neighborhood... but on the other hand I can't even afford an apartment condo in a good neighborhood. It's not the worst part of town though... I think I'd just need to invest in an alarm system, and it gives me an excuse to buy another bigger dog :D

[judy]

Renovations cost Lindsey! Maybe you should think of 5 or so things you would want to renovate, and then go look at how much materials cost. I did some renovations, and mostly cosmetic stuff. I went shopping with Steve, and everything is expensive!!!

Actually, I chose this house because it didn't need much in the way of renovation. I put down new flooring, put up fans and lighting, bought 2 vanities with hardware, and I think that was it. Then there are window treatments, which are expensive by the time you're done. Paint is expensive too. I could go on, but I just want to tell you that it is costly.

I'm not saying not to buy it, just to go in with your eyes wide open. This way yoiu won't get in over your head.

[gja1000]

That is good advice Judy - materials for renovations are very expensive. We built on an 800 square foot addition to the back of our house - no plumbing - which is VERY expensive - just concrete, wood, windows, sheetrock, shingles, paint, etc etc. Eight years ago, it cost $25,000 - and that was for materials only, we did all the work ourselves. Labor is double the materials - so if we'd had it done, it would have cost $50,000. And that was only the building materials, not the window treatments, and decorations.

I could not believe how expensive flooring is!!! We put hardwood floors in our living room and bedroom and it was about $3000 - that was materials only, not labor, cause again, we did it ourselves. When we built on to the house, we wanted to stain the concrete, rather than put down wood or tile. Again, to have it stained professionally was outrageous!!! So, we did it ouselves and it looks great.

The message is that renovations are seriously expensive! I'd only buy a house that needed lots of renovations, if I knew I would have plenty of cash to put into to it. Houses can be money pits if lots of things go wrong!

I know you want your own house Lindsay, and I hope it happens soon! But be very careful what you buy. You don't want to have only a house and then not be able to do anything else.

Good luck in your search! But I really think Betsi is right - just move to TEXAS! :D

[Janet]

We built our house many years ago and I'm wanting to do some different things, but I'll just have to wait. It's just too expensive. I'd definitely go with the advice these ladies offered. Hope you find the perfect place Lindsey.

[Lindsey]

Well the guy selling the house was very pushy. He said on Thursday that he needed an offer that night or he would continue with renovations. I said fine, I won't take it. Today he was still asking my realtor if I want it. That's just too pushy for me though. I told the realtor I would rather go with a condo, unless I could find a great house in a great area without much work needed... although in my price range I doubted I could find that. Just a few minutes later I came across a listing for a cute little house in a good area, 18 years newer than the last one, with a brand new furnace, new flooring, and new electrical. It also has a pretty new fence with a nice yard and garden. It's at least worth a look!
I agree with the cost of renovations. Cosmetic renovations I can do pretty cheaply because I have found a bazillion ads for people who bought materials like flooring and then only used half and are selling the rest of it for half price. However, the less work the better!

[Lindsey]

Well I was pretty sad after the terrible showings last night and I told Scott I wish something would just jump out at me and say "I'm the one!"
Today on my lunch break I fell in love with a condo. It was a three bedroom but the owners took out the third bedroom to make a large living room and a large pantry for kitchen supplies. The two remaining bedrooms are very good sized, the laundry room is HUGE especially because it comes with a stacked washer and dryer, which leaves room for a freezer and plenty of room for a pee-pad tray and a nice spot for potty training a new puppy ;) All together, there is 925 sq ft of living space.
It is a corner unit with an extra window on the side. The deck faces green space with a couple of trees right outside. It gets morning sun and afternoon shade. They said they haven't had to use their air conditioner once in the 13 years they've lived there. There is an electric fireplace and tons of room for furniture around it. The kitchen cupboards and appliances are a little older but still working so it's not something I'd need to change immediately. The bathroom is a little smaller but has a really deep soaker tub!
The woman freshly painted the walls, updated the kitchen linoleum, and painted the ceiling last year. She also put up brand new baseboards last year. We asked about noise, and they said they don't even know anyone else is around. The neighbors are quiet and there's not much traffic outside so it's very peaceful. They are an older couple who want to retire to the lake. They were so friendly!
I am going to talk to my parents tonight but I am really ready to put in an offer on this place. It just feels like home.

[DianaB]

It sounds good. I think that talking to your parents is the right move. They'll be able to help you with this decision that you're making. Good luck!!!!

[Lindsey]

My parents said go for it!!! So I will be putting in an offer on Monday hopefully, when the owners get back from the lake :)

[gja1000]

Good luck Lindz! I know you are excited!

[Blueyes]

I'm so glad you found something that feels like home!! I hope they take your first offer!!!!!!!

[Lindsey]

THEY ACCEPTED MY FIRST OFFER!!!!!!!!!!!!!!!!!!! :D
My realtor and I wrote up the contract yesterday, they are signing it this morning, and I am taking it to the bank just before lunch. So now I'm just hoping everything goes well with the bank, I can get the mortgage for sure, and they can finance my down payment. If all that goes well, I get possession on August 1st! :D :D :D :D

[Blueyes]

CONGRATULATIONS!!!!!!!!!!!!!!! I'm sure everything will go smoothly!! We need pictures:D

[Marilyn]

Congratulations, Lindsey!!! Wow, that was quick!!!!

[Lindsey]

Yeah it definitely was quick! The bank just needs a bit more information that myself and my mom are both faxing today (all my income tax stuff is at home with my parents!) and then we just wait for approval.
I'm a nervous wreck because I'm worried about lawyer fees and the extra money I need to pay for taxes etc... I really don't have much saved up (the trip to vegas was booked before I thought I was seriously going to buy a place!) and my brother owes me hundreds at the moment :( He is really behind on paying rent. That's why I'm so excited to be able to have my own place and not have to keep hounding other people for money!

[Lindsey]

I copied some pictures from the listing website :)

1. Electric fireplace in living room
2. Living room where third bedroom was
3. More of the extra area in the living room
4. View of kitchen from dining area... I do want bigger and nicer cupboards eventually!

[Lindsey]

5. View of dining area from kitchen
6. Spare bedroom... looks smaller in the picture than it is in real life. The computer desk on the side is pretty big.
7. Bathroom with super deep soaker tub
8. Master bedroom... again looks much smaller than it is. You can see the vanity area on one side, with the mirror and it actually has lights on top too. I asked for it in the contract so they are leaving it for me.

[Lindsey]

9. Laundry room... again I have to say it is MUCH larger than it looks here. They have a big stand-up freezer beside the stacking washer and dryer, plus another large deep white cupboard alone the side wall which you can also see in the picture. I won't have that much stuff in there :)

[Shada]

Lindsey, I am really happy for you!
Cute place. Very nice living area! Love the fireplace.
Your own home!!!!! You will love it there I know!!!

Congrats on becoming a Home Owner!!!

[Lindsey]

Thank you so much! I will probably find out by the end of the day Friday if everything goes through. Then I can start packin :D

[Janet]

Lindsey it's really cute. Wow...nice and cozy for sure. Congratulations!!

[Marilyn]

Very nice place, Lindsey!!! Will keep fingers crossed that all goes through for you!!!

[Lindsey]

I'll have to post some "after" pictures when I put my own stuff in there :) Assuming I get it, of course!

[Blueyes]

You'll get it! It's beautiful...so light and airy!!

[gja1000]

Congrats Lindsay! It is so exciting to be buying your first place!!! Good luck!

[Tiramisu]

Look at you! Congratulations! It looks nice and clean.

[judy]

CONGRATULATIONS
ON YOUR NEW HOME
LINDSEY!!!


How exciting Lindsey! It looks really beautiful, and spotless. I as so happy for you.

:excited::excited::excited:


:cheer::cheer::cheer:

[Lindsey]

Thank you so much everyone!!!
It was a slow day at work today so I was looking at paint schemes and cheap do-it-yourself kind of things. I have basically got the whole redecorating thing figured out already!
I should find out by the end of the day Friday if I get it or not. It's still a possibility that the bank will say no. I'm getting more worried about that each day. I leave tomorrow morning for my friend's wedding on Saturday. On top of the condo worries, I need to prepare myself for making a toast in front of about 250 people :( Talk about stress! Either way, there's an open bar at the wedding reception so I'm going to have a couple of depression drinks or a couple of celebration drinks!

[Blueyes]

You'll be celebrating!! Have fun!

[DianaB]

Lindsey, I'm so glad that you finally are in the process of getting your appartment!!!!! From the pictures it looks really cute!!!! I'm sure that it will look even better once you get your own stuff in there and get it decorated the way you want it!!! Congratulations!!!