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Radbot posted:I honestly don't understand who's buying all the $500k+ shitbox homes in Denver. My wife and I make decent money ($130k combined) for the area and, after factoring in emergency fund, taxes, insurance, water price differential in the mountains, the PMI we'd have to pay if we didn't get a down payment loan from her parents, - even a $250k house (pretty much the cheapest habitable structure in the Denver metro area) could run $1,800/mo. I think you're probably waaay more conservative with your finances than most people.
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Sep 16, 2015 17:01
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moana posted:I think a detailed list is appropriate. If they said up front that you needed $16k in repairs on the listing, expect them to balk at you asking for that $16k. That's one of those cases where it's absolutely clear that they expect you to price that into your bid from the outset. It's kind of a dick move to ask for money for repairs that they already told you were going to need to be done. Ask for money for any additional repairs minus that $16k imo. I miscommunicated - the $16k was supposed to be put into escrow from the $260k asking price, meaning it was effectively a $244k house to begin with. My lender balked so they just cut it to $244k. I want to cut it further to $230k since the septic will be $20k and not $16k most likely (taking a risk on that), and $10k to fix safety issues with the floor joists and deck. Radbot fucked around with this message at 17:07 on Sep 16, 2015 |
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Sep 16, 2015 17:04
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edit: ehhhhhhhhhhhh
Adiabatic fucked around with this message at 18:47 on Dec 15, 2015 |
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Sep 16, 2015 17:12
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Adiabatic posted:What savings compared to renting? I bought in 2014 also and my mortgage was like 40% less than the rent on a comparable place. Since it's a fixed interest loan the difference will only increase with time. It's a lot closer with taxes and HOA fees but it was still a big financial win.
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Sep 16, 2015 17:33
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New idea: I'm going to kickstart an Oregon-trail type game for first-time homebuyers. Start with current assets, liabilities, payments, rent. Enter some info for the house you're looking at, and the current 30-year interest rate. Every month the game rolls for stuff like market fluctuations, job loss, move for work, move for better schools, promotion, divorce, furnace explosion, and a thousand other things. Comparing to the actual Oregon Trail, I bet without a serious change in initial expectations everyone dies before getting out of Nebraska. hi Chloe :skink: uwaeve fucked around with this message at 17:37 on Sep 16, 2015 |
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Sep 16, 2015 17:34
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Radbot posted:I miscommunicated - the $16k was supposed to be put into escrow from the $260k asking price, meaning it was effectively a $244k house to begin with. My lender balked so they just cut it to $244k. I want to cut it further to $230k since the septic will be $20k and not $16k most likely (taking a risk on that), and $10k to fix safety issues with the floor joists and deck.
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Sep 16, 2015 17:38
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Anyone who is thinking of buying a house, I want to share with you my story. I just purchased my second home that needed some "minor repairs" and have been working on it non-stop for 3 weeks now. I had to buy a riding lawnmower because it's 3/4 of an acre lot ($850), all walls and ceilings need repainted to the tune of about $4k, I have another $6k in miscellaneous repairs that I've contracted out, and I still need to buy lots of little odds and ends. These odds and ends include putting new ceiling fans in the upstairs rooms because they don't have any lights, and I might as well put fans in at the same time. All told, it's going to cost me around $13k in renovations/updating, and that didn't include the 20% down payment I put up to get a great APR (2.875% on a 15-year loan). I have a solid 2 more weeks of work to put in on mornings, evenings, and weekends. I have been saving money for 6 YEARS to be able to do this without stressing about the money. This is not some humble-brag; I drive cars made from the last millennium and carry no other debt to help me afford this lifestyle. It's still been quite stressful wrangling contractors, painters, buying materials and tools, and those oh-so-fun SURPRISES that just mean more money flowing out. I'm working a full-time job outside of this, so sleep is a luxury at this point. And I'm fortunate that I have my old house to stay in while I do the repairs on the new one, and I'm capable of doing some of the jobs myself. I still have more minor renovations and updates to get the old house ready to rent, then find and vet a renter. Do Never Buy is the sentiment around here for a lot of reasons. Owning a home is expensive, time-consuming, stressful - and it's never ending. The worst thing you can do is make an emotional decision and rush into buying a house before you're fully aware of what's involved and financially ready. There are lots of people out there who will tell you that you can afford it, that you can buy more house than you need, and that you should buy quickly. Those people usually have something to gain from your purchase. Don't listen to them; do what's right for YOU.
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Sep 16, 2015 17:39
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Tell me about it. I just wrote a check for a cool $10k for my contractor, another $10k when he's done, plus probably $5k more of fixes I'm budgeting for that will show up once the sheet rock is ripped out and the roof is pulled off. That on top of $1400 for the septic repair, $3k for the electrician, $1250 for the termite tenting. We pulled up all the hardwood ourselves and will be reflooring once the rest is done, probably another couple thousand. I love the neighborhood but I have no illusions that this is a positive financial decision, even in the long run. But fixer uppers tend to be the most profitable, right? Right!!!! 
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Sep 16, 2015 17:49
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Last summer I paid $10k to have my HVAC system replaced. I did this because my A/C unit had died and living without central air in the mid-Atlantic in a house that gets full sun is asking for a heat stroke. I could have probably only paid $7k, but then I wouldn't be able to spend only $180/month on my electric bill instead of $280/month cooling my house. That $10k also covered replacing the furnace which was an old as gently caress ~80% efficient unit to a new %96 efficient unit. This means I can spend only $160/month heating instead of $300/month in the winter. In the years I rented before buying I never replaced a utility out of pocket. Do Never Buy This year I got a storm door replaced. My old lovely house was built in the 1950's and literally noone mass produces doors that fit the jambs in my house. I got multiple quotes to get a new storm door. I ended up paying $1200 for a new storm door installed because it was a way better quote than $1800 for a new storm door installed. Do Never Buy This summer some rear end in a top hat high on meth had a heart attack, plowed across a lane of traffic and mounted his lovely old Buick Regal on the fence in my front yard. The rear end in a top hat was uninsured, and my homeowners insurance, without coming out to observe the fence themselves, decided the damage was under the deductible and that they would not provide me any service or assistance. I have new homeowners insurance now. But I have slowly been uprooting what's left of the fence to re-arrange it to create an enclosed back yard. It's lovely chain link fence that the grass has grown all up in, and pulling it up also pulls up about 3 inches of sod that needs to be separated from the goddamn chain link fence so I can dispose of it. DO. NEVER. BUY!!!!
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Sep 16, 2015 17:53
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Dwight Eisenhower posted:Last summer I paid $10k to have my HVAC system replaced. I did this because my A/C unit had died and living without central air in the mid-Atlantic in a house that gets full sun is asking for a heat stroke. I could have probably only paid $7k, but then I wouldn't be able to spend only $180/month on my electric bill instead of $280/month cooling my house. That $10k also covered replacing the furnace which was an old as gently caress ~80% efficient unit to a new %96 efficient unit. This means I can spend only $160/month heating instead of $300/month in the winter. In the years I rented before buying I never replaced a utility out of pocket. I am constantly astonished when I hear other people's utility bills. In summer in Oregon, I pay $110/mo for electricity. In winter $80/mo for gas. Our house is a 1600 sqft trilevel with mediocre insulation built in 1991. Are we spoiled with low rates and moderate weather? If so, it makes me never want to move away from here.
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Sep 16, 2015 18:28
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If you trust the Zillow "Zestimate" of my property value (I don't, but that's not the point), over the past two years I've paid on average double my old rent for the privilege of "building" -$65k in equity. If two years ago instead of buying my house, I had resolved to light a $100 bill on fire every single day, I would be better off right now financially. Do Never Buy. (I'm still overall pretty happy with my purchase, but all I wanted was somewhere nice to live with my wife for the next 20+ years. Financially, home ownership has more in common with gambling than investing)
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Sep 16, 2015 18:34
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moana posted:Ah, then yeah, I think you're fine and I would totally itemize that list up. Done, sent to my agent. Really appreciate the help you and OSU_Matthew in particular have given me so far. This just came on the market today and, by appearances and price alone, would probably be our backup choice: http://www.redfin.com/CO/Indian-Hills/23546-Navajo-Rd-80454/home/34009409 I wonder what the hell is wrong with that house to be so cheap while looking pretty well maintained.
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Sep 16, 2015 18:36
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Dwight Eisenhower posted:Last summer I paid $10k to have my HVAC system replaced. I did this because my A/C unit had died and living without central air in the mid-Atlantic in a house that gets full sun is asking for a heat stroke. Thanks for reminding me: my old house's A/C went out 2 months ago in the middle of the heat wave here in North Carolina. $5k to do the furnace and A/C (which were both overdue for replacement). I did the roof in 2012 for $6k, the hot water tank for only $350 (friend helped me install it), and all new appliances as mine slowly died. At least I replaced the range before it had a chance to burn the whole place down. We found charred wiring going into the back of the unit, and some scorch marks on the wall behind 
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Sep 16, 2015 19:05
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I think your house burning down is the only way to make money on it. Do not commit insurance fraud or arson because of this post. Also replace the batteries in your smoke and carbon monoxide alarms.
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Sep 16, 2015 19:32
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Zhentar posted:I'm still overall pretty happy with my purchase Same. My house (garage) has been awesome and I regret nothing, but I went into it knowing that from a purely financial/"investment" standpoint I'm borderline retarded for buying it. Houses are horrible investment vehicles. uwaeve posted:hi Chloe :skink: Rhombo? Whatup Homeland Defenser :skink: Adiabatic fucked around with this message at 19:35 on Sep 16, 2015 |
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Sep 16, 2015 19:32
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Radbot posted:This just came on the market today and, by appearances and price alone, would probably be our backup choice: http://www.redfin.com/CO/Indian-Hills/23546-Navajo-Rd-80454/home/34009409
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Sep 16, 2015 20:18
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Adiabatic posted:Houses are horrible investment vehicles. 1 - Homes are non-portable and non-fungible. Even houses built on the same floorplan are not interchangeable, and you'll have a hell of a time moving your house with you when you move. Forget about a condo. 2 - They generate no dividends. In fact, they generate negative dividends, because you have to pay taxes on them every year you hold, and often there are HOAs attached. You might be able to make a few bucks with AirBNB or something, but there's no guarantee and that comes with its own headaches. 3 - Aside from generating negative dividends, they require upkeep. 4 - It's very hard to diversify. Even if you're in the stock-picking game, you can generally pick a few stocks and spread the risk around. Very few people can afford to buy multiple houses. 5 - Their high value means that homes are almost always leveraged investments. You can totally lose more than you put in. Forget about kissing your down payment goodbye; if things go really bad you may have to bring money to the closing table just to get out. You know what's worse than "throwing away money" on rent? Throwing away money on a personal loan to pay off the loss on a house you don't even own anymore. 6 - The transaction costs are enormous.
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Sep 16, 2015 20:36
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Economic Sinkhole posted:I am constantly astonished when I hear other people's utility bills. In summer in Oregon, I pay $110/mo for electricity. In winter $80/mo for gas. Our house is a 1600 sqft trilevel with mediocre insulation built in 1991. Are we spoiled with low rates and moderate weather? If so, it makes me never want to move away from here. According to the utility, I'm more conservative than average in my utility usage, but because their lovely communications are dumbed down for the lowest common denominator, I couldn't tell you if that meant 40th percentile or 25th percentile for energy consumption. If you want to compare regions look at utility rates as different domiciles will be differently adapted to their environments and you might just have a good residence. My total cost per kWh is about $0.14, and for natural gas pay about $1.98/therm (that's inclusive of taxes, etc)
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Sep 16, 2015 20:36
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Economic Sinkhole posted:Are we spoiled with low rates and moderate weather? Yes. I live in VT, and my electricity rates are comparable (well, we haven't gotten our first "full" bill since we only bought the place in August, but going off of the previous owner's bills it'll be about the same for summer) but heat is way more. It will likely be close to $200/month in winter (though that's heat AND the water heater together). Hell, my 500 sq. ft. apartment I rented before this was over $100/month for Dec, Jan, and Feb. And I'm lucky because my town has natural gas almost everywhere (well, sort of lucky...I'm annoyed that I have to pay a "daily connection fee...even if I don't use a single cubic foot of gas, I will still owe like $15/month.) Most people in VT have oil, which from my limited experience is more expensive. Hell, there's plenty of people that have mixed systems. My parents had oil for their heat and propane for their hot water for the first 20ish years they owned their home.
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Sep 16, 2015 21:35
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Good with money: my dad has a gigantic fricking wood stove in a shed that he can throw <=14" logs into and burn. The shed has an insulated water circuit that runs to the house and provides central heating. My parents live on 50 acres in bumblefuck New York and he just has to hunt down dead trees to heat the home. I think they spend like $200 on propane in a tank + gasoline for chainsaws + tractors per year on heating. Bad with time and warmth: He spends probably at least 8 hours out of every month going out and processing firewood to have the fuel, and constantly has to put on warm clothing to go out to the shed to refuel the furnace.
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Sep 16, 2015 21:44
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I'm moving across the country for a new job in the Atlanta, Georgia metro, which is exciting! But I own a townhouse (condo) in California. The good news is that I bought near the bottom of the market for $87k. My realtor friend says the market is good for condos in my area, and that we should be able to get ~$165k for it, no problem. Our plan is to list the townhouse, move to Georgia, live in an apartment for 6 months while we scout out the area, and then buy a single family home (probably like a 3-4 bedroom for ~$300k, as houses seem cheap in Georgia). Does this sound like a reasonable plan? It makes sense to my wife and I, but some of our friends think it sounds crazy. A lot of people think we should rent the condo out, but that seems like a hassle from across the country.
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Sep 17, 2015 01:22
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Economic Sinkhole posted:I am constantly astonished when I hear other people's utility bills. In summer in Oregon, I pay $110/mo for electricity. In winter $80/mo for gas. Our house is a 1600 sqft trilevel with mediocre insulation built in 1991. Are we spoiled with low rates and moderate weather? If so, it makes me never want to move away from here. Yes  It's no secret why solar is so popular in southwest states.
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Sep 17, 2015 01:31
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You can check out the ROI on renting in that area of CA and ask about it in the rentals thread, but it sounds like you don't want to be a long-distance landlord. I would caution against buying a house so soon after you move there, unless you know you want to stay for a good long time. Are there SFH rentals in the areas you're looking? I would maybe try for that instead if it's possible and rent for a full year before deciding if your job and the area are long-term prospects. A full year also lets you know if you can stand the Hotlanta summers, which if you're from California is something that you don't really understand until you experience it firsthand.
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Sep 17, 2015 01:32
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alakath posted:I'm moving across the country for a new job in the Atlanta, Georgia metro, which is exciting! But I own a townhouse (condo) in California. That sounds like a really smart idea, and your friends are probably telling you that because they're holding out hope that you'll hate Georgia/your new job and move back closer to them  Being a landlord can be terrible if you aren't prepared for it. Being a first time landlord from 12 states away is the very definition of unprepared.
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Sep 17, 2015 01:33
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Holy poo poo, that's per kilowatt hour? In Illinois I pay 7 cents per kilowatt hour with no tiers.
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Sep 17, 2015 01:44
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baquerd posted:Holy poo poo, that's per kilowatt hour? In Illinois I pay 7 cents per kilowatt hour with no tiers. Yes. And that's not even the highest rates in CA, some folks in San Diego pay .40+
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Sep 17, 2015 02:11
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I'm selling a home and the FedEx documents I received have no consideration shown at the top of the warranty deed. It's more like the consideration is completely omitted from the paperwork but I'm assuming a lack of it implies none at all. The person I'm selling the property to is operating under a LLC so I'm thinking he's doing this to avoid title transfer tax? I read that family members, trusts, and LLCs don't have to pay these fees. The previous deed to the property had the consideration listed at the top of the paper and I also received a HUD-1. This sale includes no HUD-1 which I'm assuming is because it's a cash sale (via wire transfer) and no loan involved but I'm still wary. The sale is in Florida if that matters. Any advice? I'm not signing anything until I understand this plus I have no legal recourse if he fails to wire me the money. In his defense the buyer has already sunk ~$17k but I still don't trust him at this point.
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Sep 17, 2015 02:31
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FCKGW posted:Yes Living in a 1000 sq ft apartment in a near the coast: good with electricity!
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Sep 17, 2015 03:15
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funny way to spell posted:I'm selling a home and the FedEx documents I received have no consideration shown at the top of the warranty deed. It's more like the consideration is completely omitted from the paperwork but I'm assuming a lack of it implies none at all. The person I'm selling the property to is operating under a LLC so I'm thinking he's doing this to avoid title transfer tax? I read that family members, trusts, and LLCs don't have to pay these fees. I don't think I've ever seen a warranty deed with the actual purchase price listed as the consideration, it's usually listed as some nominal amount ($10). Being a cash sale doesn't necessarily preclude the seller receiving a HUD-1 (or an equivalent closing statement), the settlement agent can still issue one - it's just a standardized form for itemizing fees/expenses/payoffs/etc., it's not like it's only valid if there's financing. That said, what do you mean by not having legal recourse if he fails to wire the money? Are you not using any form of settlement agent/escrow to sell this property? You have an actual purchase contract with this guy right? This link explains the consideration thing a bit more in depth: http://www.deedclaim.com/consideration/ Captain Windex fucked around with this message at 04:17 on Sep 17, 2015 |
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Sep 17, 2015 04:14
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Radbot posted:This just came on the market today and, by appearances and price alone, would probably be our backup choice: http://www.redfin.com/CO/Indian-Hills/23546-Navajo-Rd-80454/home/34009409 Well, other than the clear DIY of pictures 7 and 8, the description has: * Heating: Forced Air, Stove
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Sep 17, 2015 04:30
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Bozart posted:Well, other than the clear DIY of pictures 7 and 8, the description has: The house ended up being ridiculously bad. A clearly drunk, cigarette smoking friend of the homeowner showed us around. He made sure to feature the staircase that had been removed from the house (leaving no way to move between floors within the house), the tiling the owner did that he declared "horrible", the ceiling that had been stomped down by someone falling in the attic, the utter saturation of every surface in cigarette residue, etc. The view was great, though. Anyways, we've finally submitted our inspection "objection". Basically, I put a spreadsheet together listing every serious, non-cosmetic issue in the house, categorized them, provided a low and high estimate for each based on what the home inspector/goons said, showing that the repairs would range between $42k to $70k. We're now asking for $30k off, originally having agreed on $16k off. Plus, we let them know we talked to their preferred septic engineer and confirmed that the 2013 septic quote had indeed increased in price (reflected in the doc).
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Sep 17, 2015 04:39
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Radbot posted:The house ended up being ridiculously bad. A clearly drunk, cigarette smoking friend of the homeowner showed us around. He made sure to feature the staircase that had been removed from the house (leaving no way to move between floors within the house), the tiling the owner did that he declared "horrible", the ceiling that had been stomped down by someone falling in the attic, the utter saturation of every surface in cigarette residue, etc. The view was great, though. *plus you can rebuild it as an escher staircase with a firepole and have a house of leaves, how awesome would that be??
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Sep 17, 2015 04:52
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moana posted:Sounds like you'd be able to get it for cheap if that's who's showing it around. Replacing all the sheetrock and flooring isn't that bad, probably less than $15k; the staircase would be the hardest redo but hardly impossible*. I vote yes on crazy house with view if your other offer falls through! That book is so fuckin weird.
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Sep 17, 2015 11:52
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On one hand do never buy, on the other hand the dramatic world-weary homeowner posting in this thread is a little excessive
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Sep 17, 2015 12:45
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Yond Cassius posted:I remember one writer making the point that it would be hard, in fact, to design an investment vehicle worse than housing. A government tax subsidized low long term fixed rate leveraged investment is not a bad thing. This writer obviously went to a state school and majored in journalism. Leverage is how you get 5000% gains (and loses).
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Sep 17, 2015 14:50
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moana posted:Sounds like you'd be able to get it for cheap if that's who's showing it around. Replacing all the sheetrock and flooring isn't that bad, probably less than $15k; the staircase would be the hardest redo but hardly impossible*. I vote yes on crazy house with view if your other offer falls through! Yeah, I'd be happy with the land if the frame of the house was usable. I'd just lowball the poo poo out of it and cite the things the guy said.
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Sep 17, 2015 14:53
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Duh if you've got to bring money to the closing table you're doing it wrong. Just flush a bunch of concrete down the toilet and run away in the night.
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Sep 17, 2015 15:16
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QuarkJets posted:Can you be specific regarding how much you believe home ownership is going to cost you? Did you only look at the cost of a mortgage vs the cost of rent, or did you remember to include taxes, insurance, hoa, maintenance, and all of the other major expenses associated with home ownership? The subdivisions I'm looking at have no HOAs. Very few places in this city can say that, and it may not last long here - it's a traditionally lower income area in a city overrun with the wealthy, and a lot of landlords are deciding to get out of the renting business and just sell their homes at a premium while the market is good. The new owners are trying to establish HOAs, probably to bully out the remaining low-income owners, so I'd like to get in before that happened. The numbers I'm looking at include mortgage, insurance, and taxes. Obviously maintenance will be important, but I'm considering that separately(as in, mortgage will save me x amount a month, and x should cover maintenance). My father owns two houses right now, and does all the maintenance himself. He built the first house he ever owned, and he can do plumbing, housewiring, remodeling, and fix anything but the foundation. He's confident that, in addition to an official inspection, he'd be able to find the majority of issues in a house. I'd also have his help fixing any problems, which will definitely help mitigate maintenance/repair costs. I realize I'm increasing my potential for disaster here, but I'm also increasing my ability to handle potential disasters, and saving money at the same time. It really feels like the responsible decision, here.
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Sep 17, 2015 15:19
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Elephanthead posted:A government tax subsidized low long term fixed rate leveraged investment is not a bad thing. This writer obviously went to a state school and majored in journalism. Leverage is how you get 5000% gains (and loses). That's true, but the tax subsidy does you no good if your interest doesn't take you over the standard deduction, and the popularity of ARMs shows how bad people can be about locking in that fixed rate thing. I think (like leverage in general) this point's less of an absolute drawback and more of a case where people take on a lot more risk than they really understand.
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Sep 17, 2015 16:32
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First thing's first, you're missing PMI. Calculate it and add that to your monthly bill. It's not the same as insurance and it's not optional (in your case). I don't think you're an awful candidate for home ownership considering you and your dad can do maintenance and the monthly costs won't bury you, but I don't think your financial house is in order yet and that's step one. Save some money, you need to have a lot in the bank to write a very big check when you close. It's almost always a bad idea to buy with less than 20% down + ~$5k for closing + a regular savings cushion. The exceptions are people who make a lot more money than you do.
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Sep 17, 2015 16:35
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