That still leaves $4k for living expenses. Unless they also have huge car payments or live high on the hog they should be fine. After paying my mortgage and alimony I have about $1k left a month and do just fine.
and since real estate taxes are deducted from your federal taxes and you can a deduction for interest paid on mortgages. It's not that bad. However way out of my league and my household makes about 100k.
My comparable expenses are also about $4k so I'm sure he can make the payment each month, but I would just get very nervous leaving myself absolutely no breathing room. Shit happens. Cars break down, things need to be replaced, people start popping out babies, people change jobs, people want to go on a trip every now and then, etc.
The wife and I make good money but we got spooked at the prospect of $450k homes we were initially looking at and eventually settled on something in the 360s so we can be more flexible throughout life.
Shit happens. Cars break down, things need to be replaced, people start popping out babies, people change jobs, people want to go on a trip every now and then, etc.
This is why I'm able to do what I do. We rely 100% on public transportation, so there are no unforeseen transit expenses even possible. Babies don't magically appear. I have previous savings enough to cover months of unchanged lifestyle were I to find myself jobless, and no mortgage to worry about.
My non-food, non-rent expenses approach zero, and the few that remain are effectively static (metro card, utilities, etc...). Thus, most of my income is disposable.
This is why I only looked at foreclosure properties when I was looking to buy. There were plenty of ready to move in houses in my market but I figure with a little bit of work and a market rebound in the next five or so years I would make it like a bandit.
The house I have now is nice and I could spend the rest of my life in it but... If the sale price were to hit the price it sold for in 2007 I would sell in an instant and rent while looking for another foreclosure property.
As an older fellow with a kid in high school I have no problem living in a fixer upper. If I were younger and working on popping out kids it would not be an option. I would want a 'safer' home with less work required.
I just finished refinishing the living room floor in my house. When I moved in parts were worn down to the bare wood and there were small patches of rot in the floor. The rot was not deep and I was able to sand it out while some gouges were just too deep to completely remove. I lightened those areas and call it 'character'.
Point is that if I had small kids I would not have wanted them in this house.
Interestingly, the house I was going to buy in Beacon (5BR split-level) dropped substantially in price not too long after I backed out of the short sale (they waited too long). They would have been much better off accepting my offer while it was still valid, but for whatever reason they held out.
The family, I recall, had hidden their giant TV and electronics in the outdoor shed, and the family that was in the house the first time I viewed it was a different family from the one I met later. I think there were multiple legal issues going on related to multiple occupancy and bankruptcy. I'm pretty sure they were eventually forced out, and the bank sold the abandoned property at a much deeper loss less than a year after I backed out.
But, in the last couple of years, Beacon had a boom, and the house is probably now worth more than I would have paid for it. Last summer, Emily and I were up that way, and we saw substantial renovations by whoever bought it.
They'd removed that totally ghetto illegal sheet-metal outdoor shed, replacing it with landscaping.
They'd started building a deck for the diningroom sliding door (which, previously, opened to a 15' drop).
The driveway was re-paved.
The illegal extra bedroom in the garage had been removed, returning the garage to a garage state. (I assume the illegal extra kitchen in the lower level had also been removed).
One of the homes I looked at was listed as a three bedroom with a price tag of $30k. I looked at it thinking,"$30k? How can I not make money with this?"
Yeah... Two of the bedrooms looked like converted leantos attached to the house. Floors were slanted and everything. The real bedroom was upstairs and had the most bizarre layout I had ever seen. There was also black mold inside the structure and a trapdoor to a dirt crawlspace under the dining room floor.
A stream ran against the property only a few feet from the structure and the home just felt damp. It did have a cool stone hearth in one room but it was hard to shake the feeling that this house started out as a cottage with rooms added on haphazardly. Best option would have been to bulldoze the structure and build new.
Nice, I see you bought it as a foreclosure for a great price! Did you invest much money into it?
For the most part the only money we put into it was for our own comfort, though in the last few months of getting it ready to sell, we've put about $1000 into it in paint and repairs, plus countless hours of labor.
Boo-yah: So I locked in at a 4.25% and my credit union offers a no-cost guarantee where they will allow a re-lock down as low as 4% if interest rates fall.
Things keep moving in the right direction so I've started to allow myself to dream about the house. Getting a room to myself (office/nerd cave), so I'm going floor-to-ceiling IKEA Expedit for board and video game storage. On the opposite wall, thought it would be awesome to cover it in whiteboard paint, but it'd cost $600! That's more than the shelves on the other wall cost. Guess I'll stick to my trusty 4'x6' board.
Where are you buying the paint? It should be just under $300 if you buy the paint at Home Depot and you can probably get by with one coat if you use a good paint underneath it.
I hadn't thought to look for cheaper brands at Lowes/Home Depot. I figured it was a specialty product I'd need to get online, w/ a brand such as Idea Paint. Saw there was a Rustoleum whiteboard paint but had mixed reviews, some saying you need 2 coats. Guess I will just have to read up more.
It's really not something I need, which is why I wouldn't want to put up boards. I already have a 4'x6' board I could be using. The wall paint would just be cool.
Supposed to closing on Wednesday. Of course the mortgage company isn't ready yet.
They've rejected my homeowners insurance policy (the same policy on my first house, which is also financed through them, go figure). They are insisting on guaranteed 100% replacement cost for the dwelling. No, having a professional replacement cost analysis performed and certifying you are insured well above that amount does not count. There cannot be a number attached. It has to be insurance for INFINITE DOLLARS. Whatever it costs! If I buy a solid gold toilet and never get my premium upped, oh well, gotta pay me to replace it! That. does. not. exist.
Had to go to shady insurance man and get him to write up a policy that states this and hides the real dollar cap (125% of estimated replacement cost) in the fine print. Let's see if the monkeys rubber-stamp it and I go to closing. It's pretty much the same thing I just handed them 2 weeks ago.
Could it be that they are delaying your paperwork to move the transaction into next quarter? Maybe they already 'made their numbers' for this quarter and don't want to waste it?
I've been looking for a house to buy. I've got a substantial deposit together and I would really like something basic for me to live in, either alone or with a potential partner some day.
I've encountered some kind of social stigma whenever I've told anyone that I've been looking at one bedroom houses. As if buying a one bedroom house means that I don't love my family members because they won't be able to spend the night there and that I don't want kids someday. That's from friends, relatives and work colleagues.
I'm going to have to make some compromises to buy a two bedroom house, on location, cost or features. So I'm unwilling for now. But once again I end up looking like the bad guy who doesn't listen.
If it's what you want, go ahead and be the bad guy. Have these family members never heard of futons?
If you have to change your parameters for a 2-bedroom, look at how it may affect your potential resale value. It could go either way. It could push you into buying more of a fixer-upper, and flipping it for profit, or it could push you into a shitty neighborhood and compromise your prospects. Don't compromise on location.
Matt has really good comments that I echo. But buying a 1 bedroom now and selling it 5-7 years if your living requirements change is still a solid plan. It's also more ecologically sound as small spaces require less energy to heat and cool. I am grappling with similar forces in my life.
If you are in a city, one bedrooms and 2 bedrooms are ok. However, if you live anywhere outside of a huge city and you are buying a house that is free standing, always buy a house with 3 bedrooms and if possible 1 and a half bath or more. Especially if you think you'll be selling at some point and want to do it quick. Generally speaking people are looking for 3 bedroom houses or more if you think of the traditional home buyers. Most people do not buy one or two bedroom houses. They rent them.
I know people who have bought 2 bedroom houses that seriously regret it.
I'm thinking about installing either wood laminate or new carpet in my master bedroom. And I'm wondering if anybody here has done a project like this. How labor intensive is it? Is it better to just spend the extra money to have a professional install it?
Comments
The wife and I make good money but we got spooked at the prospect of $450k homes we were initially looking at and eventually settled on something in the 360s so we can be more flexible throughout life.
My non-food, non-rent expenses approach zero, and the few that remain are effectively static (metro card, utilities, etc...). Thus, most of my income is disposable.
The house I have now is nice and I could spend the rest of my life in it but... If the sale price were to hit the price it sold for in 2007 I would sell in an instant and rent while looking for another foreclosure property.
As an older fellow with a kid in high school I have no problem living in a fixer upper. If I were younger and working on popping out kids it would not be an option. I would want a 'safer' home with less work required.
I just finished refinishing the living room floor in my house. When I moved in parts were worn down to the bare wood and there were small patches of rot in the floor. The rot was not deep and I was able to sand it out while some gouges were just too deep to completely remove. I lightened those areas and call it 'character'.
Point is that if I had small kids I would not have wanted them in this house.
The family, I recall, had hidden their giant TV and electronics in the outdoor shed, and the family that was in the house the first time I viewed it was a different family from the one I met later. I think there were multiple legal issues going on related to multiple occupancy and bankruptcy. I'm pretty sure they were eventually forced out, and the bank sold the abandoned property at a much deeper loss less than a year after I backed out.
But, in the last couple of years, Beacon had a boom, and the house is probably now worth more than I would have paid for it. Last summer, Emily and I were up that way, and we saw substantial renovations by whoever bought it.
They'd removed that totally ghetto illegal sheet-metal outdoor shed, replacing it with landscaping.
They'd started building a deck for the diningroom sliding door (which, previously, opened to a 15' drop).
The driveway was re-paved.
The illegal extra bedroom in the garage had been removed, returning the garage to a garage state. (I assume the illegal extra kitchen in the lower level had also been removed).
Yeah... Two of the bedrooms looked like converted leantos attached to the house. Floors were slanted and everything. The real bedroom was upstairs and had the most bizarre layout I had ever seen. There was also black mold inside the structure and a trapdoor to a dirt crawlspace under the dining room floor.
A stream ran against the property only a few feet from the structure and the home just felt damp. It did have a cool stone hearth in one room but it was hard to shake the feeling that this house started out as a cottage with rooms added on haphazardly. Best option would have been to bulldoze the structure and build new.
Fail: Interest rates not gonna fall!
Lowes would be about $280 to cover 80 sq feet.
It's really not something I need, which is why I wouldn't want to put up boards. I already have a 4'x6' board I could be using. The wall paint would just be cool.
They've rejected my homeowners insurance policy (the same policy on my first house, which is also financed through them, go figure). They are insisting on guaranteed 100% replacement cost for the dwelling. No, having a professional replacement cost analysis performed and certifying you are insured well above that amount does not count. There cannot be a number attached. It has to be insurance for INFINITE DOLLARS. Whatever it costs! If I buy a solid gold toilet and never get my premium upped, oh well, gotta pay me to replace it! That. does. not. exist.
Had to go to shady insurance man and get him to write up a policy that states this and hides the real dollar cap (125% of estimated replacement cost) in the fine print. Let's see if the monkeys rubber-stamp it and I go to closing. It's pretty much the same thing I just handed them 2 weeks ago.
I've encountered some kind of social stigma whenever I've told anyone that I've been looking at one bedroom houses. As if buying a one bedroom house means that I don't love my family members because they won't be able to spend the night there and that I don't want kids someday. That's from friends, relatives and work colleagues.
I'm going to have to make some compromises to buy a two bedroom house, on location, cost or features. So I'm unwilling for now. But once again I end up looking like the bad guy who doesn't listen.
If you have to change your parameters for a 2-bedroom, look at how it may affect your potential resale value. It could go either way. It could push you into buying more of a fixer-upper, and flipping it for profit, or it could push you into a shitty neighborhood and compromise your prospects. Don't compromise on location.
I know people who have bought 2 bedroom houses that seriously regret it.
I also put Bruce hardwood down once and it took a lot longer to install.
First question: how much is your time worth to you?