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
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
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

[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]

Originally Posted by 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

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

[judy]

Originally Posted by Lindsey

Thanks 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.

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 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
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