Considering Lexington, can you help? (Richmond, Radcliff: real estate, rental, HOA)

[choci]

Hello! My partner and I currently live in Niagara Falls, NY, but are thinking about leaving the area in the spring. I grew up around here, whereas he is from the south -- Chattanooga, TN, to be specific. Between the two of us our list is quite short for the places we're considering a move to. Lexington is one of them.

I copied the questions from the sticky post at the top of the forum, and will add more details and questions.

1. Where you are working? I don't know yet, but I am a graphic designer and fine artist who can also teach at the college level. Can anyone recommend a good resource for job hunting in the area?

2. How much you are willing to spend on housing? This is what I am especially curious about. Housing is very, very cheap in western New York. We bought our house for $75,000! I wonder if it is possible to find something in the Lexington area (or on the outskirts, that is fine) for less than $90,000? If we were to rent again, I'd like to see that stay below $800 (or lower!) for at least two bedrooms and pet friendly (we have 3 cats). Is this outrageous?

3. How long of a commute you're willing to tolerate? I don't mind driving, so half an hour is fine, maybe longer for a good job or house.

4. If you have kids: Private school or public school? No kids! But I may be interested in getting certified to teach K-12 art eventually, so whatever info you have about that would be great. How are teacher salaries and benefits?

5. What type of neighborhood environment you are looking for: small town feeling? small city excitement? suburbia delight? We are looking for anything that is not too urban, with some space between houses if possible. Open-minded small town?

6. Community amenities important to you? We're pretty flexible on this. Hmm... good BBQ? I am artist, as I said, so access to art spaces like galleries, a fairly decent arts community would be great.

7. Pie or cake? This is the hardest question! I guess I'll take cake.

[InLondon]

Oh wow, for under $90,000 you might get a small, older house near downtown or on the Northside.

[choci]

Yeah, I know $90,000 seems like nothing in most other areas of the country. What is the area you're referring to like? I think we'll probably end up renting, but I guess we'll see. Is $800 reasonable for rent?

[LEXpert]

$800 a month will get you about a $90-100,000 house. A $90k house in Lexington is going to be older and on the north end of Lex or will be a 20-30 year old starter home in the south end of Lex. You may get a little better house in a similar neighborhood in one of the towns surrounding Lex (Paris, Goergetown, Winchester, Richmond, Versailles, Nicholasville.) If you can go a little further away from Lex, you can get more. Mount Sterling is a nice little town that is an easy 45 minute drive from Lex. It is all Interstate. It is also pretty friendly, in my opinion.

I've got some advice on picking neighborhoods that you may find useful on my blog. I think you can click up by my name on the left, or go here: Putting the “Real” in Lexington Real Estate

If you think you will only be here for a few years, you should rent. If you think you will stay in whatever house you would buy for a long time, then buy something. Rent will always go up, but your mortgage will remain the same (well, the taxes and homeowner's policy will raise, but not what you pay in principle and interest!) Long term, buying makes sense. Short term, renting makes sense. Our market has been better than other parts of the county, but we haven' seen a lot of appreciation.

Hope that helps some!!

[choci]

Thanks, LEXpert, I will check out your blog. I am guessing taxes are much less in KY? Our $75,000 house with taxes and insurance costs almost $800 a month. I had a look at the MLS listing in your area and it does look like it is possible to buy something in our price range, which is good... but I want to make sure that we don't have to end up in some junk neighborhood, either.

And, we actually prefer older houses, so that is no problem. Seems like townhouses are very popular in the area -- we don't see that as much up here. We'd like to stick with a stand-alone single family home if we can, whether we buy or rent. Ultimately, we'd like to settle down and stick around, so buying would probably be best for us.

Thanks again!

[mdawg]

Originally Posted by choci

Thanks, LEXpert, I will check out your blog. I am guessing taxes are much less in KY? Our $75,000 house with taxes and insurance costs almost $800 a month. I had a look at the MLS listing in your area and it does look like it is possible to buy something in our price range, which is good... but I want to make sure that we don't have to end up in some junk neighborhood, either.

And, we actually prefer older houses, so that is no problem. Seems like townhouses are very popular in the area -- we don't see that as much up here. We'd like to stick with a stand-alone single family home if we can, whether we buy or rent. Ultimately, we'd like to settle down and stick around, so buying would probably be best for us.

Thanks again!

Taxes are MUCH lower here, I used to live in the Orchard Park/East Aurora area of WNY, they were outrageous up there.

[LEXpert]

I think if I were going to spend $90k here in Lex, I would be around Castlewood Park ( urban, older cottages), Thoroughbred Acres or Radcliffe (North Lex-starter homes from the 70's), or Melody Village/Stephen Foster/the general Armstrong Mill Rd area between Tates Creek and Man O War (70's starter homes.) Probably the best area is outside Man O War around Buckhorn Drive. I sold a house to a lady over there who says she likes it and feels safe.

The problem you will have in that price range is that there will be a lot of very affordable rental property around you. You'll probably get some bad neighbors sometimes and have some houses around you that the landlord's let get run down.

We do have quite a few townhouses in Lex. I never advise people to buy one unless it is a lifestyle choice. The condo/townhouse market is always up and down, while detached homes are more stable. Overall, it is about 10% of our whole market. Simply put, 1 out of 10 buyers go for condos/townhouses and 9 out of 10 pick a house. It is easy to nab 1 of the 9 buyers when you need to sell than it is that 1 buyer.

Then there is the HOA issue. IF you do ever buy one, buy in a complex with a stable HOA and enough units to cover big repairs like parking lots, roofs and siding. Ask for the By-Laws and copies of financial records. Some people call these the CCR's (Covenants, Conditions & Restrictions) Also, a new or newer complex is best. The more maintenance free the exteriors are the better.