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California's real estate market is just bananas. A buddy of mine was looking into homes in one of the most rural parts of the state and a relatively new starter home (1,500 sq. ft., 3 bed, 2 bath) would set him back $300,000. This is in a town 250 miles from San Francisco.
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Sep 2, 2013 07:22
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FISHMANPET posted:$600k for a house that needs to be tented? Termites are super common here in the bay area, and apparently it's not even the more severe termites. I forget what they were called. Other homes we had offers on previously there was about $10k in termite repair+ This tenting is setting us back under $2k and is mostly for precautions etc.
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Sep 2, 2013 07:49
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TOO SCSI FOR MY CAT posted:My coworker recently paid over $900k for a ~1500 square foot house that needed tenting, and has no grounded electrical outlets. The housing bubble never popped here, it only slowed down a bit.
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Sep 2, 2013 14:27
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gvibes posted:Eh, San Francisco (however Case Shiller defines it) dropped almost 50% from its peak. The bubble is just reinflating. 
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Sep 2, 2013 22:03
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That chart is really disturbing and depressing.
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Sep 2, 2013 22:06
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TOO SCSI FOR MY CAT posted:My coworker recently paid over $900k for a ~1500 square foot house that needed tenting, and has no grounded electrical outlets. The housing bubble never popped here, it only slowed down a bit. That's crazy, because at some point a house is just the sum of wood, brick, plaster, and assorted materials arranged together to form a shelter sitting on a piece of dirt, all of which is probably worth 1/10th of what he paid. But who am I to get in the way of creating jobs for 'murica.
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Sep 3, 2013 14:17
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Looks like my nervous Nellie San Francisco friends should have bought in 2010-12 instead of being wusses. Do always buy!
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Sep 3, 2013 14:37
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I'm buying in DC so the numbers being tossed around dont really phase me much; but holy poo poo that $/sqft chart is ridiculous, even by my standards.
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Sep 3, 2013 14:57
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Oh god, one month in from moving day and Mint is giving that ever-friendly reminder to do never buy (or at least save WAY more than the down payment amount):Mint.com posted:In the past 30 days, you spent $1,945.72 on Home Improvement. $300 garage door repair and like $1000 in lawn supplies alone. Yeesh. I think/hope we're all set for predictable stuff now, though.
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Sep 3, 2013 20:27
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drat Bananas posted:Oh god, one month in from moving day and Mint is giving that ever-friendly reminder to do never buy (or at least save WAY more than the down payment amount): Yeah, we're 15 days from closing on our new construction home and already have a lengthy list of purchases for the coming months that are categorized by how immediately they need to happen. First up is garage door opener, epoxy garage flooring a of couple ceiling fans and finishing the fence around the yard. Thankfully most of the things on there are more wants than needs and wedding gifts from the upcoming December nuptials will likely help pay for a lot of the wants.
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Sep 3, 2013 20:53
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drat Bananas posted:Oh god, one month in from moving day and Mint is giving that ever-friendly reminder to do never buy (or at least save WAY more than the down payment amount): Mint.com is awesome. We just checked our Home Depot / Lowes tallies and came up with a similar figure. It adds up fast, but it's like being in an adult candy store. "Hey, maybe we DO need the ultra quality stain?"
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Sep 3, 2013 21:18
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drat Bananas posted:Oh god, one month in from moving day and Mint is giving that ever-friendly reminder to do never buy (or at least save WAY more than the down payment amount): In four years I've done roof, gutters, attic insulation, vinyl siding, a sliding door, two windows, water heater, AC repair, dryer repair, new dishwasher, carpet, and fixed near-catastrophic structural problems on the house I bought because it "wasn't" a fixer-upper. Good luck being done.
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Sep 3, 2013 22:56
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drat Bananas posted:Oh god, one month in from moving day and Mint is giving that ever-friendly reminder to do never buy (or at least save WAY more than the down payment amount): I bought a house in "move-in condition" with a "roof only 5 years old!" and decided to replace the horrible buckling plaster/lathe walls with drywall. Gutting the front room revealed mold in the bathroom (which was accessible via the kitchen), which needed gutting, meaning that while I'm at it, I might as well rip the stupid deformed plaster out of the kitchen too. Oh hey, first floor getting gutted and renovated! My friend, who is an electrician, stopped by one day, took one look, and made this face:  "How the gently caress has your house not burned down yet?" There was live, unshielded wiring buried in blow-in recycled newspaper insulation running up exterior walls (that had no firestops between floors) connected to knob-and-tube. Electrician friend, who's always joking and full of poo poo, gave me the most Serious Face® I've ever seen on him and ordered me point-blank to gut the entire house because it's not an "if", it's a "when" it will burn down from the wiring. He did the re-wiring for me for free in exchange for materials cost + gas for his truck.I've been scanning the receipts and cataloging them. I've still got a huge pile to go through, and it's already at $22,000. It'll likely be over $30,000 when I finish. Oh, and that "only 5 years old!" roof? Bullshit. It may be 5 years old, but it sure as hell wasn't done to code (there are four layers of shingle on there) and I've already patched it with tar twice. Do never buy 120+ year old houses. daggerdragon fucked around with this message at 00:15 on Sep 4, 2013 |
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Sep 4, 2013 00:12
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Speaking of electrical, I had an outlet wired up in my house backwards and a light switch had a dangling hot wire. Pulled in an electrician and he did a spot test of the whole drat house. Thankfully it was only the two but man oh man did my heart skip a beat. Best $100 I ever spent.
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Sep 4, 2013 00:49
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I've been in my house for 5 days and you guys are scaring the poo poo out of me.
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Sep 4, 2013 01:40
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Sold my house 3 days ago. Closing check cleared, got my escrow refund, and got my homeowners insurance refund. I'M FREE!!!!!!
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Sep 4, 2013 02:01
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Iucounu posted:I've been in my house for 5 days and you guys are scaring the poo poo out of me. In that case, you might want to avoid the This thread isn't up to code: Crappy Construction Tales thread.
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Sep 4, 2013 02:24
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DJCobol posted:Sold my house 3 days ago. Closing check cleared, got my escrow refund, and got my homeowners insurance refund. I'M FREE!!!!!! Back to being a renter?
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Sep 4, 2013 15:52
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DJCobol posted:Sold my house 3 days ago. Closing check cleared, got my escrow refund, and got my homeowners insurance refund. I'M FREE!!!!!! Yeah, why the change of heart? You only had that house for two years.
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Sep 4, 2013 16:10
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ETB posted:Back to being a renter? CrazyLittle posted:Yeah, why the change of heart? You only had that house for two years.
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Sep 4, 2013 23:27
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DJCobol posted:Work transferred me to a new location. Do never buy
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Sep 4, 2013 23:57
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Trying to decide if buying is an option or a good idea right now, would appreciate some input. I don't make a ton of money ($42k a year), but the town I live in has crazy low cost of living. There are some beater houses that go for well under $50k. One in particular I've been stalking is a 3/2 for $35k. Obviously a house with a price like that is going to need a fair amount of work, but even if I had to put $20k into repairs it would still be totally affordable (I think?). Is this a terrible thing to consider? Currently I only pay $220 a month in rent, and that includes utilities, so I'll never be able to beat that price, but the living situation I'm in isn't something that I want to do long term. Can I even get a mortgage for that little amount? I already have more then the 20% down in liquid funds, but I don't have $35k just sitting around. If it does need repairs, do I need to take out a separate loan for those, or can I just round up and get a $50k mortgage? Even with a 15 year mortgage, an additional 15k keeps the PITI at a really manageable monthly payment.
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Sep 5, 2013 01:32
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Low-Pass Filter posted:but even if I had to put $20k into repairs it would still be totally affordable (I think?). quote:Can I even get a mortgage for that little amount? quote:If it does need repairs, do I need to take out a separate loan for those, or can I just round up and get a $50k mortgage? Save your money. Upgrade your renting conditions. Buy a not-shithole house. Regardless of location or ridiculously low costs of living, $35k is a shithole house. Trust me on this.
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Sep 5, 2013 03:11
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daggerdragon posted:$35k is a shithole house. Trust me on this.
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Sep 5, 2013 03:26
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It's kind of sad looking at the history of this house, although its tough to really feel too bad for Wells Fargo who it defaulted too.code:Seeing a drop from $91k to $54k screams "something is seriously wrong with this house, please take it off our hands." Tax collectors have the property valued at $61,300 as of 2012 Low-Pass Filter fucked around with this message at 03:50 on Sep 5, 2013 |
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Sep 5, 2013 03:45
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daggerdragon posted:They're called HELOCs, and if you can't afford to buy a $35k house outright, you can't afford to repair it.
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Sep 5, 2013 04:33
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Ugh. Two weeks out from closing and now the owner is procrastinating moving out. I'm going to be furious if I busted my rear end for a quick close (in order to win the bid) only to have it hosed up by a lazy seller.Low-Pass Filter posted:It's kind of sad looking at the history of this house, although its tough to really feel too bad for Wells Fargo who it defaulted too. Holy poo poo. Empty parcels of land cost more in Oakland cost more than that.
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Sep 5, 2013 04:54
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Yeah, when I want to torment my CA friends, I link them to the literal mansions they could buy around Austin for what they're paying for a falling down condemned structure that'll take $100,000 in renovations just to be fit for human habitation. Of course, then they remind me that they'd still have to live in Texas, so we're even.
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Sep 5, 2013 04:58
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Low-Pass Filter posted:It's kind of sad looking at the history of this house, although its tough to really feel too bad for Wells Fargo who it defaulted too. It was listed for sale and no one bit. So they waited a bit, maybe did some minor repair or just sat on it waiting for the price to recover and relisted. Either way, it's been on the market in some way or another since 2011. I would run far away from this home as a first time home buyer.
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Sep 5, 2013 05:08
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adorai posted:Depends on where you are. If it was foreclosed on by the local government for taxes, and the city is an exodus city (think Detroit) there are serious bargains to be had, just to get the tax revenue flowing again. Also depends on how long the house has been empty. Houses need maintenance and they need someone keeping an eye on the roof for leaks, gutters for damage, broken windows, frozen pipes, thieves stole the pipes...
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Sep 5, 2013 05:09
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gvibes posted:Maybe an FHA 203k? 203K/renovation loan on the conventional side might work. Low-Pass Filter posted:It's kind of sad looking at the history of this house, although its tough to really feel too bad for Wells Fargo who it defaulted too. Might have been due to going into contract, though depending on the service that you're looking at they usually have a separate status for that. Most of the time they remove it and relist to reset the Days On Market (DOM) in the MLS listing. It makes it look like the property was freshly listed rather than having sat for sale for 2 years or whatever. Obviously it doesn't take more than cursory research to see through this, but it might lead to less savvy buyers not realizing they can probably low ball on the offer due to lack of demand.
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Sep 5, 2013 05:10
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My parents recently relocated and I've been renting my childhood home from them for a while for a very nominal amount, which has allowed me to build up a substantial savings. That said, they're getting to a turning point where they need a chunk of money more than they need the extra house, since they're not planning on moving back. Originally, the plan was to just sell the place, and for me to consider moving somewhere I can actually afford to live. But recently, mom's gotten really interested in the idea of selling me the house for a good chunk under market value (it's about a 450k house--she's suggesting 250k). I can swing roughly 100k down and they're willing to be lenient with possibly steady but small payments--but after that, I make only about 40k-50k a year. I don't know much about the legal/taxing end of that arrangement, but even if that's not an issue, is this a smart or stupid idea? I'm pretty sure that I won't be able to afford a house out here otherwise--possibly within my lifetime, as this is California, in a nice area--but I'm sure that there's a lot I'd be getting myself into.
Brazen Apothecary fucked around with this message at 09:13 on Sep 5, 2013 |
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Sep 5, 2013 07:41
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Brazen Apothecary posted:My parents recently relocated and I've been renting my childhood home from them for a while for a very nominal amount, which has allowed me to build up a substantial savings. That said, they're getting to a turning point where they need a chunk of money more than they need the extra house, since they're not planning on moving back. Originally, the plan was to just sell the place, and for me to consider moving somewhere I can actually afford to live. But recently, mom's gotten really interested in the idea of selling me the house for a good chunk under market value (it's about a 450k house--she's suggesting 250k). I can swing roughly 100k down and they're willing to be lenient with possibly steady but small payments--but after that, I make only about 40k-50k a year. I don't know much about the legal/taxing end of that arrangement, but even if that's not an issue, is this a smart or stupid idea? I'm pretty sure that I won't be able to afford a house out here otherwise--possibly within my lifetime, as this is California, in a nice area--but I'm sure that there's a lot I'd be getting myself into. How much are the property taxes? It'd be a shame to work out such an amazing deal and then lose it over taxes.
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Sep 5, 2013 13:46
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Brazen Apothecary posted:this is California, in a nice area Jealous Cow posted:How much are the property taxes? It'd be a shame to work out such an amazing deal and then lose it over taxes. Yeah, hold on to that damned house no matter what. Rent it out at market rates if you have to, but if you inherit the house from your parents you'll be paying the same 1% tax bill they did. (1% of what his parents paid). California's prop 13 has a reassessment exemption for inheriting your parents' house. CrazyLittle fucked around with this message at 15:08 on Sep 5, 2013 |
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Sep 5, 2013 15:04
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CrazyLittle posted:Yeah, hold on to that damned house no matter what. Rent it out at market rates if you have to, but if you inherit the house from your parents you'll be paying the same 1% tax bill they did. (1% of what his parents paid). California's prop 13 has a reassessment exemption for inheriting your parents' house. Holy poo poo that's awesome.
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Sep 5, 2013 15:46
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Brazen Apothecary posted:My parents recently relocated and I've been renting my childhood home from them for a while for a very nominal amount, which has allowed me to build up a substantial savings. That said, they're getting to a turning point where they need a chunk of money more than they need the extra house, since they're not planning on moving back. Originally, the plan was to just sell the place, and for me to consider moving somewhere I can actually afford to live. But recently, mom's gotten really interested in the idea of selling me the house for a good chunk under market value (it's about a 450k house--she's suggesting 250k). I can swing roughly 100k down and they're willing to be lenient with possibly steady but small payments--but after that, I make only about 40k-50k a year. I don't know much about the legal/taxing end of that arrangement, but even if that's not an issue, is this a smart or stupid idea? I'm pretty sure that I won't be able to afford a house out here otherwise--possibly within my lifetime, as this is California, in a nice area--but I'm sure that there's a lot I'd be getting myself into. Holy poo poo, I came in here to post nearly exactly the same question as you, as my situation is nearly identical to yours. Parents recently relocated, I've been renting my childhood home from them for the price of taxes + insurance, which works out to a little more than $600/month. I've been taking care of all the upkeep as well. They were originally just going to sell the place but really would like me to stay there, (as would I) but can't gift it to me or sell it for substantially under market value since I couldn't afford the taxes for doing so (it's a $450k house) but I was mulling about the idea of buying a $200K or so stake of the equity from them so they could have a nice chunk of cash to put toward their eventual retirement. If later down the line I could buy out the rest that would be great, but I might end up just inheriting the rest of the stake. I've read that shared-equity mortgages are a thing but this situation is slightly different. The house is in a nice area of PA. I only have a little less than $30K squirreled away at the moment but have been putting away at least $1000/month so it won't take me too terribly long before I'd have a 20% down payment for that. Is this idea even possible?
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Sep 5, 2013 16:22
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Jealous Cow posted:Holy poo poo that's awesome. Man, that's awesome. I wish Michigan had that. My dad deeded our cabin to me about 6 years ago and when he did they re-assessed it and the taxes doubled.
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Sep 5, 2013 16:24
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Jealous Cow posted:How much are the property taxes? It'd be a shame to work out such an amazing deal and then lose it over taxes. I'm not as worried about the property tax? I want to say it's 2300 a year. But I AM worried about the HOA, which is almost 500 a month. CrazyLittle posted:If you don't mind me asking, can you be a little more specific? What area are we talking about? It's a well kept townhouse in a beach community in Orange County. Not ON the beach, but (possibly diminishing) ocean view. Weathered the housing bubble extremely well.
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Sep 5, 2013 21:59
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Brazen Apothecary posted:I'm not as worried about the property tax? I want to say it's 2300 a year. But I AM worried about the HOA, which is almost 500 a month. So: 6,000 - HOA 2,300 - Taxes 8,300 - Total 8,300/45,000 = 18.4% So you have about 23% left before maxing out your DTI for an FHA loan. 28% of your annual income is 10,350, so per month about $862. That will get you what, a $170k-180k mortgage? So if the sale price is $250k you'll need to save up about $80k to put down, and then you'll be spending 42% of your annual gross income just on mortgage, property taxes, and HOA. You can have no other debts. If the HOA goes up or you can't get the grandfathered tax thing you're screwed. You will not be able to save any money, realistically, so if you ever lose your job you're screwed. Was that "DO NEVER BUY" enough for everyone?
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Sep 5, 2013 22:20
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How much can you rent that place out for? Even if you don't personally live there... If we're talking strictly "family net worth" its in your parents' best interest to hold onto the property. Prop 13 is literally, "do never sell." I'm pretty confident in saying that your parents would make more money over the long term by renting the place out at market rates rather than selling it.
CrazyLittle fucked around with this message at 22:40 on Sep 5, 2013 |
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Sep 5, 2013 22:37
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