Newbie Home Buying Advice Needed

mkshoe

I'm considering buying a home in the hopes that it will be cheaper than my current rent of $1500 month.

I work for a general contractor, so I'm thinking I might be able to buy a small house that needs fixing in the 225k range which should end up being a cheaper monthly payment than my current rent.

I'd plan on staying in the house for at least a couple of years, but I am a little worried that if the market keeps declining, I'll get upside down in the investment.

Thanks in advance for any advice given!

Markor

My advice is to wait a year, then re-assess. There's just too much bad economic news happening lately, which has yet to fully impact house prices around here. Significantly lower house prices one year from now, across the board, should be a sure thing. If you will pay a little more in the meantime (rent vs. mortgage), consider that an investment. When you see most houses on the market not moving, like now, it's a good time to be patient.

mkshoe

Yes, I agree waiting makes sense, but I'm faced with having to find a new rental house in the next few months, which is difficult because I have 2 huge dogs.

My thinking is that if I can get a great deal on a fixer and gain some sweat equity it will balance out the declining house value. My question is... Are there good enough deals to be had out there to make this idea work???

I'd really like to have a place I could call my own, versus renting someone else's home.

Markor

Well, $45K at 6% interest is a big price to pay just to call a house your own for a year, if Seattle-area prices drop another 20% (conservative prediction). Whereas pay a landlord an extra $200/month for the dogs is $3K. Sweat equity wouldn't change those figures.

I'm in the same boat, want to own. But I'd rather be patient and retire a couple years earlier. I look every day, and routinely see zero houses worth buying. If they were worth buying near their list prices, they'd be selling. I've watched prices drop 20% in my old neighborhood, and still no takers. I've also seen rents drop 10-20% in the last year.

EconE

Any Realtor worth their salt will tell you that 7 years is the minimum amount of time to spend in a house if you are purchasing.

A couple months gives you plenty of time to find a suitable rental...dogs or not.

mkshoe

I'd actually plan on living in a home I purchase indefinitely, with 7 or more years ownership likely.

I can be patient and wait to buy if there is a good likelihood prices are going to continue to decline, which seems to be the case.

ira s

Most homes out there, especially in neighborhoods considered desirable, are still too expensive.
But there are screaming deals out there, especially if you have the vision and skills to pull it off, and are willing to consider neighborhoods you hadn't previously thought of.

dls

ira s wrote:

Most homes out there, especially in neighborhoods considered desirable, are still too expensive.
But there are screaming deals out there, especially if you have the vision and skills to pull it off, and are willing to consider neighborhoods you hadn't previously thought of.

Ira,

Any thoughts on neighborhoods to consider in South Snohomish county (Granite Falls is out, I still have my real teeth)?

ira s

dls,
Edmonds is awfully nice. I'd happily live in Mukilteo. Parts of Bothell are nice, as is Mill Creek...

dls

Don't think I'm old enough for Edmonds (only in my late 40s). Mukilteo does have Ivars and Diamond Knot, and is close to work, so it's on the short list.

jillayne

LOL. There are lots of seniors in Edmonds who live in the downtown core....and there are LOTS of families, singles, and non-seniors all over Edmonds.