Buying a House in 2 yrs - Realistic Numbers?

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Originally Posted By: pandus13
Originally Posted By: Miller88
It's odd that this house has dropped $20K since it was listed.

when somebody is paying utilities, taxes and (maybe) mortgage on a sitting empty house???


That's true. I has been empty since the fall so someone had to heat it all winter.

Originally Posted By: madRiver
With a price that low presume all plumbing and wiring is garbage going in. Does ny require licensed folks for those trades to perform work?

Looking back I purchased my first home similar although in most desirable small town in US according to some article and honestly regret not buying a better lot to expand home instead of process of buying/selling twice which cost plenty in fees and mortgages etc.

How much does it cost to reside in desirable school district?


If it fails inspection due to wiring and I can not get a mortgage due to insurance, I will not pursue this house. Unfortunately, this city requires me to succomb to the organized crime that is unionized trades people - so that will be a major no go.

I don't plan on having children. The school thing does not affect me.
 
Originally Posted By: Miller88
I don't plan on having children. The school thing does not affect me.


A lot of people think this, but then if the home you buy is the type that would attract families, then when you go to sell, it's a tougher sell if it's in a bad school district. If you're buying a one bedroom condo, it doesn't matter as much.
 
Looked at the house. It needs work for sure. No knob and tube wiring visible that I could see ( I crawled around in the crawl space, poked at the basement and checked in the atttic). Furnace and water heater are under 10 years old.

The roof *did* leak a bit, unfortunately. That's going to be a no-go I'm sure.
 
Originally Posted By: Mr Nice
Good. Take your time so you don't end up with a money pit.


It's either buy a cheap house and put money into it, or drop >$100K on a house. I prefer the first option.
 
Well happened to stumble across a different one. After a bit of negotiation, the offer has been accepted. It was a bit more expensive, lacks a basement and still needs work but I think it's a much much better deal overall. In my price range, something that doesn't need work just isn't going to happen.

I'm not concerned with school districts - as I don't plan on having kids, but it's in a good school district. MUCH MUCH better neighborhood. Living room has a lake view, no lake rights. Has a DETACHED garage that's big enough for me to fit my 2 vehicles and popup along with other toys. Should be able to easily fit a trailer for when the Jeep is no longer road worthy. The house itself is small , which is perfect for just me and the cat. The building codes in that particular town and county are very lax, so I won't need to hire a union contractor to hang some drywall or replace a toilet. Taxes are also on the cheaper side too. It's a village that is in two different counties and towns.

It's exiting!
 
Pics or it didn't happen.

Nice! Good luck. Sounds good to me, hope it works well. Decent amount of property, so you can stash the trailer(s) out back, when the garage hits overflowing?
 
Originally Posted By: Miller88
Well happened to stumble across a different one. After a bit of negotiation, the offer has been accepted. It was a bit more expensive, lacks a basement and still needs work but I think it's a much much better deal overall. In my price range, something that doesn't need work just isn't going to happen.

I'm not concerned with school districts - as I don't plan on having kids, but it's in a good school district. MUCH MUCH better neighborhood. Living room has a lake view, no lake rights. Has a DETACHED garage that's big enough for me to fit my 2 vehicles and popup along with other toys. Should be able to easily fit a trailer for when the Jeep is no longer road worthy. The house itself is small , which is perfect for just me and the cat. The building codes in that particular town and county are very lax, so I won't need to hire a union contractor to hang some drywall or replace a toilet. Taxes are also on the cheaper side too. It's a village that is in two different counties and towns.

It's exiting!

congrats

now still continue to set aside a backup/emergency house savings.

shop your insurance around. (you qualify for discounts with house+multiple cars+student)

use the still warmer time (you still take cold showers?) to change/check what you need to pass over the winter.

i would guess:
-clean gutters (correct level, add extenders if necessary)
-is roof / attic OK? maybe more insulation?
-clean brushes/landscape
-caulk everything with holes/cracks on the outside (windows/doors frames, siding gaps); any bigger gaps get steel wool/fiber glass (mices/rats/squirrels/raccoons points of entry)
-make sure any exterior pipes are insulated/really shut-down
-know what tools you have
-know from who you can borrow some more tools (tall ladder)
-start all the kitchen/bathrooms faucets and check flow; check sewer flow; fix/change/clean now
-change toilet: american standard champion 3 or 4 in elongated (oval bowl) and taller chair would make it easier for older guests (also good flow, less water, simple components); use the greenfoam ring instead of wax
-add any electrical outlets/circuits; check existing outlets
-patch the walls (or take down and patch). DO NOT TAKE DOWN STRUCTURAL WALLS!!!
-paint (are tired of builder flat beige/antique white/white ?)
-shop for appliances (unless existing are good enough with a cleaning)
-shop for necessary furniture (i know you are minimalist so i thrust you)
-check if you can jerry-rig some temporary walls for you car cover (winter car work is better with hands not frozen from winter wind)

-build the kitty a nice post and some shelves (ikea knock-offs from walmart a 2x4 and a 2x2 cubbies) to make her happy


early in the morning , pour yourself a hot-cocoa, go out on your porch/patio/yard, sit with the kitty purring in your lap and enjoy the silence.
 
Test the appliances during the inspection. I got bit by a defective oven and microwave, had to pay a repair guy to fix (wasn't in a position to fix). Small money, but all sorts of things pop up in that first month.

When you get a chance, check the labeling on the breakers. You'd be surprised at "what makes sense" any time someone rewires a house. For instance, my living room and kitchen lights are on the same circuit as my deck lights--but my exterior spotlights are on a circuit of their own. Had to do with how the wires were run, not how they were used.

Check the roof venting, check the bathroom vent. Look for lifting shingles, evidence of ice dams, the usual.
 
The home inspection is Sunday, hopefully everything goes well. Then it's just insurance inspection and fixing stuff that they need to have fixed in order to get insurance and the mortgage on it.

The garage is a good size, I'm happy to potentially have that. Once things progress a bit further on it, I'm going to try to get a Kerosene heater for it. Just for those winter projects. This is a picture of the inside - it also has 2nd story storage
DQAtWLV.jpg




Regarding the load bearing wall ... someone already did that one. I will have to add some bracing along with potentially adding another small concrete pad or two and jacks. It needs some leveling and it's a pier and beam foundation. Small lot (1/10 acre)

My closing date is towards the end of December so there's not much winterizing I can do yet, unfortunately.

I will probably build a cat tree. And I can sit on my porch/living room? and watch the lake.
 
What is your location? $50-80K doesn't seem a big sum. Are you considering the idea to take out a loan? The mortgage lets you spend twice as big sum as the one you have now. Don't forget to take into consideration expances on tax payments. There is some information on lending terms https://tranio.com/usa/mortgage/
 
Syracuse NY area. Anything under $80K is going to be in the needs work category depending on the town in which the house is located.

My big thing is detached garage. I need a detached garage for my hobbies.

The offer accepted was $57K which isn't too bad for 3 bedrooms and big detached garage. Small lot size, no basement.
 
Nice. $57k? Wowzer.

I have a K2 heater, and while it's a good emergency heater I don't care much for it. Maybe in a drafty garage it will work, but I found the fumes too much. YMMV. I want to say my uncle took an old furnace, a forced hot air one, and put that into his garage, sans any sort of ducting (just a chimney). Might be a good use for an old furnace that got replaced, but is still working.
 
Originally Posted By: Miller88
So, I am planning on buying a house in the next two years. I'm tired of renting, playing by others' rules. So, my goal is to get into a house in a few years.

I am looking in the $50-$80K range. Around here, you can get:
- Small home in one of the "working" suburbs
- Two Family home in a decent neighborhood in the city.

Not sure which one, just yet. The city schools are horrible, but I don't see myself having children any time soon. Would be nice to have someone else help pay my mortgage.

Does anyone have any good figures as to what I should expect to spend/put down on a house in this range? I googled it and have been talking to a few people but it seems that anything online is just advertisements and everyone I speak to in person did 3% down on a FHA loan.

I have a good amount of student loan debt (around $45K - not making minimum payments).

The car will be paid off next month allowing me to save some interest. Cable will be shut off next month. Both of which will allow me to save up an additional $300 a month for a house.

What should I expect to spend?

I am planning on saving up $30K. Is that a good assumption to get into a house in the $50-80 range? Should I increase it a bit more?

I don't know what other fees in addition to the downpayment. What would be a good downpayment? Ideally I would save up the entire amount, but what I spend in rent is going to be less than what I would spend in interest.

It's a trade off. I'm sure with what I have saved now, I could get into something next spring ... but I would have a bit less to put down and I would be spending more on interest.

Any help would be appreciated! Thanks!


You're going to hate my answer, but:

keep renting. I'm sorry but you're $ 45,000 in debt with student loans and paying interest on top of that. Your expenses are going to increase when you buy a house. Your mortgage payment might be lower, but don't fall into that trap. Houses, especially older ones, are gigantic money pits. There's always something to fix, clean, repair, replace. It's a never ending process, and even if you DIY you're going to have to take the time to do it yourself and that in itself is costly and tiring. If you think dealing with a landlord is bad, try dealing with a bank when they're ready to foreclose on your house because you don't have any money left. Worst case scenario, yes, but it can happen. Life sucks when you're in debt, and I would do anything in my power to get out and stay out.

Also, the one guy mentioned going to the bank and letting them tell you their thoughts? TERRIBLE ADVICE! Banks are in business to make money. They're going to set you up with a 30 year mortgage where you'll end up paying for the house 3 times over.

It's your money (sort of) but I would seriously reconsider this decision. Also, don't forget that everything is negotiable - including rent.
 
Just saw that you already purchased.

Do yourself a favor and hire a structural engineer. That house is cheap for a reason, and it looks like in that picture of the garage that the trusses are bowing. There's probably a ton of other problems with this place...

Everything can be fixed, but it costs money. Don't be that guy who buys a 60,000 house and puts 40 grand into it to make it worth 80k.
 
oilpsi2high, I think you have good opinions, but I'm going to play devil's advocate for bit here.
wink.gif


My house has structural issues too, but it's been that way for 70 years. Hasn't fallen down yet. I can see an issue in a wall, but it has held up this long, and will likely keep going for as long as I need it to. No one would frame a house, nor insulate a house, the way mine is; but it manages.

Now, it wouldn't be worth spending much on repairing my house IMO, just keep it going, and then find someone else who loves it more than I do. As long as I beat rent, am comfortable, and it keeps the rain off my stuff, I'm not sure I care. I do miss the ability to more easily move, but at the same time, it's beats renting.

I get the notion of not adding to one's debt load; but in this case, rent is a necessary evil, and if he can control mortgage payment to below rent, then I think he may get ahead. Everything is a gamble, but I think this may be a wise one--assuming the house is mostly fine (roof in good shape, septic and well in good shape, no bug infestation). Insulation, siding, flooring, etc are all smaller jobs which can be ignored until a later date.
 
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