What to do about a first house... - PeachParts Mercedes-Benz Forum

E150GT · #1 03-09-2012, 08:05 PM

So I have been wanting to buy a house recently because I am tired of renting apartments and I am tired of not having a place to work on my money pit and rent always goes up every year. The trouble is that I am single and have only been approved for an amount that leaves me with crap choices. Its really tough to buy a decent house on a crap budget. Im not sure what to do. Is it better to wait until my income is enough to afford a better house or to just buy a junker and fix it up slowly? I really want a two car garage and those are far and few between at my budget. I really dont want to live on the south side of town or the north east as they are less than desired areas but whenever I do an mls search within my parameters it seems those are the only areas that pop up. What do you guys think?

Dubyagee · #2 03-09-2012, 08:33 PM

Looked into building new? Longer commute?

E150GT · #3 03-09-2012, 08:34 PM

no I havent.

aklim · #4 03-09-2012, 09:35 PM

I'd wait

TnBob · #5 03-09-2012, 09:36 PM

If you buy... stick to a 15 yr mortgage and fixed only

aklim · #6 03-09-2012, 09:37 PM

Quote:

Originally Posted by TnBob

If you buy... stick to a 15 yr mortgage and fixed only

15 years is a long time on a crap house. Then you have to fix it up which is more money. Not sure it is a good idea.

Dudesky · #7 03-09-2012, 09:40 PM

Lot of repo's on the market for very good prices. Low balling is an option for negotiation. Look long and hard at the home, I'd check every nook and cranny from basement to attic.
116K home next to me went 45k from fannie and now its sitting over a year with the owner making payments he didn't plan on.

I'd say you own the market, you got time...shop.

last thing, don't jump into anything...once you sign, its yours.

Yak · #8 03-09-2012, 09:47 PM

Take a hard look at your budget and cash flow. Bexar County property taxes will surprise you, and unless you do something unusual, they'll be added in to your monthly payment along with P&I and any mortgage insurance. Homeowner's insurance may also be added in. That's a lot out of pocket every month. It's not the total size of the mortgage that'll kill you, it's how much payment goes out every month.

When you get a reasonable estimate of that, factor in utilities and budget for HOA dues. You'll be hard-pressed to find anywhere in Bexar County that isn't part of an HOA.

Do not go "all-in" and deplete your savings to the bottom. You'll need a cash reserve to fix things. Consider energy efficiency. It could be better than some apartments (crappy insulation, electric heat and water heaters, shared water bills) or much much worse.

Consider a buyer's agent. Some of the websites (Trulia, Zillow) are helpful, some not so much. Consider Leon Valley or Castle Hills. Older neighborhoods and smaller ranch-style houses. Usually 50's-70's construction.

Example: 6655 Grist Mill Street, Leon Valley TX | MLS# 932916 - Trulia

And yes, some of these neighborhoods do have bars on the doors or windows. It's sort of a fact of life, even in what should be nicer neighborhoods.

This listing is actually a good example of problems with online sites. The map is wrong. The house picture MIGHT be correct, but the pushpin on the map is for 6622 Gristmill - someone fat-fingered the keypad. 6655 is down the street near the corner. Use Google streetview independent of the website to see where it is. And this neighborhood - and this seller in particular - had the misfortune for the Google streetview car to drive by on the big trash pick up day. Nothing like a pile of crap in front of your house for online curb appeal. But it's everybody in the neighborhood, so I wouldn't pre-judge.

http://maps.google.com/maps?hl=en&gs_nf=1&cp=12&gs_id=1n&xhr=t&q=6655+grist+mill&bav=on.2,or.r_gc.r_pw.r_qf.,cf.osb&biw=1526&bih=867&wrapid=tljp1331348116552028&um=1&ie=UTF-8&sa=N&tab=wl

aklim · #9 03-09-2012, 09:53 PM

Quote:

Originally Posted by Yak

It's not the total size of the mortgage that'll kill you, it's how much payment goes out every month.

You'll be hard-pressed to find anywhere in Bexar County that isn't part of an HOA.

More in a crappy house.

How much are they? We pay under $50 for our dues.

t walgamuth · #10 03-09-2012, 10:15 PM

With the market today i would make sure i don't borrow too high a percentage of the purchase price. Try for a 15 yr mortgage and for sure buy a house in a good neighborhood. Better to buy a good location and work on fixing it up. Buy something small too. Small house, good neighborhood will always be easy to liquidate if you need to sell.

Good luck!

Yak · #11 03-09-2012, 10:29 PM

Quote:

Originally Posted by aklim

More in a crappy house.

How much are they? We pay under $50 for our dues.

It depends on the neighborhood. Mine is pretty cheap, around $400/year paid semi-annually. Some are odd "pay for everything extra" like a fee to live in the neighborhood, a separate fee to gain access to the community pool.

I've heard as high as $1200-$1500 per year. Those probably aren't in his range.

$50 per month doesn't sound too bad, but if you're on a budget that's the choice between a phone line, or cable TV, or a tank of gas, or HOA dues. I get something for the first three. Something back from the HOA? Not really, at least not in the lower end of the housing market. Maybe some flowers around the "Hill Valley Estates" sign out front.

spdrun · #12 03-09-2012, 10:38 PM

Unless your payments are less than 80% of the rent for a similar house, run screaming.

ah-kay · #13 03-09-2012, 11:53 PM

Interest rate is as low as it could ever get. The difference between 15 yr and 30 yr is not much, may be 1/2% but it gives you flexibilities when money is tight. You can always pay more to make it a 15 years when there is extra cash.

I do not know your budget but look for houses in good neighborhood. Location, location. Look pass the cosmetics. If all things being equal, you want the worst house in a good neighborhood than a good house in a bad neighborhood. You can fix it up slowly but you cannot change the surrounding. Don't look at houses with garbage fees like HOA, MelloRoo. If you need a roof over your head then it is the time to look around and low ball bank/REO properties.

Good luck,

Skippy · #14 03-10-2012, 04:59 PM

I'm in a similar situation. If I come across a smoking deal I could potentially buy, but most likely I need to get a better job or more savings (say through another desert deployment

) before I can get into what I want. What I want, by the way is a garage, preferably two car (or more) attached to some sort of dwelling. When I buy I'll most likely end up with a two or three bedroom house, which of course leaves room for some roommates (read tenants).

The Clk Man · #15 03-10-2012, 05:43 PM

While I respect the other views here, I would go with a 15 year mortgage with a fixed rate. I am fixing to pay off my second 15 years mortgage and I'm happy that I went that route.