Advice for a young couple looking for a starter home...

[riveree]

Originally Posted by agreatlife

hmmm, then why haven't you bought my home yet! LOL

It'll be sold before I even get a chance to see it .

[titaniummd]

Originally Posted by stephen3

24 years old, engaged, about 70k total combined income a year.

Looking to buy a 3/2 starter home in Jacksonville within the next 6-8 months.

Can we find something nice for under $180 k?

Should we look at townhomes?

Any advide on good areas? Southside, 210, San Jose, etc.

Any help or general advice would be appreciated. Thanks,

Is the 70k after taxes? You do not want to overestimate your income. I am seeing recs for 180 and some posters pushing you to $250. My first house in VA was $160k and our take home pay at the time, was shy of $100k 10 years ago. The point is you want to be comfortable not struggle. I see you like to go out, play golf, etc, and that costs a lot of money. The market bubble has made the American Public believe that we have to spend more and more on a house. I personally think the market prices are not really dropping but normalizing to what it realistically should be (I lived in the DC area where a "Rambler" = 3 bedroom 1 bath no garage was selling for $499k to $550k at the top of the bubble - it's a $70k to $90k home around here). People were fliipping houses left and right making the market exponentially rise out of control.

Do you still have student loans? Factor money into your wedding expenses, also. I posted other expenses in your mortgage question.

Townhomes are helpful in areas where they are close to the 'city' or where more people work in a metropolitan area - people do not want long commutes to work thus those locations hold their value. I came from DC and had a property in the suburbs next to the Metro (subway), the highways, shopping, etc so it was hot (even when the market was slumping). There is a market for it- especially if they have a lot of amenities (pool, tennis courts, golf, weight/exercise room, security gates). I do not think it applies as well in Jacksonville unless we are talking about San Marco, Ponte Vedra, Amelia Island or St Augustine. In this area, I would personally look at a 'resort type of community' as an investment for rentals (long term). Condos are good if they are in a vacation hotspot or right in the heart of the city (IMO).

Now the mindset in the Jacksonville area is different. Most people want land and more of it (for horses, pets, whatever). Just read the posts here. Realistically, people have kids to take care of, dogs to walk, and yardwork is not fun (to me). A bigger yard is more expense (watering, fertilizer, sod, expensive Palm trees LOL!) - but to each his or her own.

Now people are going to have similar desires as yourself and many have to start on a smaller scale. Take this property that you are buying as a building block for your wealth. You don't plan to live in it for more than 3-5 years (your family will grow, you will get a promotion or two). You may even have to move away from here.

If you decide on a multiunit (Condo or Townhouse), you can focus on other priorities (aside from the lawn, upkeep etc). The market is slow and no one can predict where it will go. Consider this as a future rental property if the market doesn't turn around soon - thus, don't spend all of your 'disposable' income so you have some leverage when you want to expand your family (i.e. getting a bigger place and you cannot sell house #1 - 2 Large Mortgages can lead to significant stress and chewing down TUMS every hour, not to mention kidney stones).

Now a 'fixer' upper single family would be ok in a good neighborhood but they usually are not (it depends upon how much needs to be fixed - less is better). A fixer upper will probably cost you 10 to 50k on top of the house's price. Look at the surrounding areas to see if they match your demographics/lifestyle (do you like abandoned cars in the front yard with 4 flat tires or seeing a weeks worth of trash sitting in the front yard? - that was my old neighborhood growing up- LOL!). Smaller older communities with retirees are safe (empty nesters - not ones where their 34 year old alcoholic son still lives in the house) and less expensive.

I have found that the places that appreciate faster are those houses that are desirable to more people of the average population. Check with your friends/colleagues to see where they live/play/etc. You may find a place near them that could narrow your search.

The best priorities are below IMO:
Proper budget
Safe
Short Commute (ok, 4 out of 5 isn't too bad, in my case - I had a 7 minute commute in the DC Metro door to door - now, it's 20-25 minutes)
Convenient to shopping/entertainment
Good schools

[ShakenStirred]

Originally Posted by agreatlife

Townhome sales are down 40% over this same period last year. For the first quarter this year, only 267 townhomes have sold. Having said that, however, existing SFR sales priced between $100-200K have actually shown a 1% upward tick in the first quarter. Folks are starting to buy what they can afford, rather than their dream home.

You can find the permit statistics for Duval and surrounding counties here: NEFBA - The Northeast Florida Builders Association of Jacksonville Area Residential and Commercial Builders and the Construction Industry

While we still have some inventory to work through in this area, I believe that by 2010 we are going to be in the middle of a very strong housing market again, and anyone getting in the market right now is going to look very smart in two years. But again, I agree that a home is not an investment, but a place to live and make your life. Understand that this is seen through the eyes of an investor in the stock market for over 20 years, and that yes, you can make money in real estate. It's just not my where I choose to make return on my capital.

[riveree]

Originally Posted by titaniummd

Now people are going to have similar desires as yourself and many have to start on a smaller scale. Take this property that you are buying as a building block for your wealth. You don't plan to live in it for more than 3-5 years (your family will grow, you will get a promotion or two). You may even have to move away from here.


The best priorities are below IMO:
Proper budget
Safe
Short Commute (ok, 4 out of 5 isn't too bad, in my case - I had a 7 minute commute in the DC Metro door to door - now, it's 20-25 minutes)
Convenient to shopping/entertainment
Good schools

I love what you said about the change in the market back to more modest aspirations...I think that's really true. After all, you don't want the house to own you, you want to own the house.

I really like your priority list too. I think commutes and convenience will become even more important in the coming years as gas prices continue to climb. People will still like their large suburban homes and lots, but homes closer in to the city might see even more increased appeal than they have now.