Like he** I'm going to pay these prices! (Boston, Lowell: for sale, real estate) - Massachusetts (MA) - City-Data Forum

Boston Shudra · 03-15-2021, 01:11 PM

I've been living at home for about a year and a half now. At first it was to save money while I looked for a job. Then soon after finding one, the pandemic hit, and I figured it'd be good to hunker down where I was. Now, I'm starting to look around again and seeing the options available to me feels like hearing the punchline of a sick and twisted joke.

I really don't want to rent for a few reasons. For one, I feel like I'm going to be in the area for the foreseeable future. So why not buy a place that I can sell back later on? For another, paying rent feels like throwing money into the wind. The last thing I want to do is pay some unemployed shmuk tens of thousands of dollars a year for a single room in the working-class housing that his grandparents built a century ago before the Fair Labor Standards Act for peanuts and pocket change.

So, I'm looking around at condos for sale on Zillow (I like the idea of a condo over a house because I don't need the space and they seem to require less upkeep), and all I'm seeing are places like this:

https://www.zillow.com/homedetails/6...56073292_zpid/

Like, are you KIDDING ME?! Not only does it seem to lack any modern amenities (in-unit laundry, central air, etc.), it's assessed value is 146k compared to the asking price of 280k and it sold for 135k in 2017! It's in Lynn, and the nearest schools are all ranked abysmally. It's MILES from downtown, and not even a very comfortable walk to the Swampscott commuter rail station.

Or take this one in Somerville. Remember that "working class housing built for peanuts and pocket change" I mentioned earlier?

https://www.zillow.com/homedetails/2...13388443_zpid/

At least this one has central air, but OVER HALF A MILLION!? For 875 SQUARE FEET!? It sold for just 285k in 2011!

And these last 2 examples aren't the exception to the rule. I practically just picked two listings at random!

Best option I can see for myself at this point is to continue living with my parents for 3-5 years and pray I can find a job somewhere else in the country where I won't be spending my entire income to be able to live in a shack. Doing so means that I'll have to put off any thoughts of getting married or having kids for that duration. I can't believe that people find the state of affairs in the area acceptable. It's a disgrace!

msRB311 · 03-15-2021, 01:16 PM

no one here will understand...they're all millionaires.

GeoffD · 03-15-2021, 01:32 PM

Quote:

Originally Posted by msRB311

no one here will understand...they're all millionaires.

A millionaire isn't what it used to be. LOL

msRB311 · 03-15-2021, 01:36 PM

Quote:

Originally Posted by GeoffD

A millionaire isn't what it used to be. LOL

that was the type of answer i expected here, LOL

Louisville Slugger · 03-15-2021, 01:36 PM

Properties sell what people are willing to pay for them. Location, location, location. Schools and a good commute to a city that offers great job economy helps as well. It sucks, but you can only afford what you can afford. Either move out of the area or make compromises. Everyone wants a nice place, close to the city, with all the amenities and walkability, but only few get that. Most people end up not getting everything on their checklist.

I do not see a huge decline coming as people will eventually become priced out of certain areas. It is happening already. Also assessed value does not have anything to do with market value. The town has a budget and looks at property sales over a period to determine the mill rate and assessed value of a property. Market rate is what someone is willing to pay in a particular market.

I was like you, saved a ton after college by living with my parents. I did not get everything I wanted, but I found a place that marked most of my checkboxes and I made improvements over time. Now I have a place to call my own and some equity. It takes time.

Also renting is not throwing money away. You get a place to live and the flexibility to relocate without all the hassles and costs selling a property. Plus, you do not have to deal with major expenses as a property owner. If you play your cards right, get roommates, and save/invest the difference versus home ownership you can come out ahead. The investing includes the opportunity cost of your down payment as well. Having it be tied in the house or in the market.

Be careful with condos. Look at the reserves and how well they are managed. Special assessments can really hurt each unit owner if the exterior is not being maintained and a certain percentage of the dues are not being set aside for a major upcoming expense. Talk to people who live in the condo buildings, visit the building at different times of the day, gather any meeting minutes from the person who manages the building.

massnative71 · 03-15-2021, 01:45 PM

Keep living with your parents as long as you/them can stand it, meanwhile put away anything you can towards a down payment. I do not see $hitholes like that one in Lynn continuing to go for $280K. They can get away with it now, but not when inventory and interest rates go back up. Just be patient. Have a long term plan. And out of state is always an option, especially if you are not tied.

redplum33 · 03-15-2021, 01:51 PM

Dude, I think you should stay with your parents and save some money. Or maybe rent a place for a while. If you buy, you'll need a large down payment...and then you'll have a mortgage, property taxes, and monthly condo fees. It would be more affordable to rent for a few years, and then you could reassess the situation.

And don't look at renting as throwing away money. It costs money to live whether you rent or buy, but there are no surprises or responsibilities when renting.

redplum33 · 03-15-2021, 01:55 PM

Quote:

Originally Posted by msRB311

no one here will understand...they're all millionaires.

Quote:

Originally Posted by GeoffD

A millionaire isn't what it used to be. LOL

Quote:

Originally Posted by msRB311

that was the type of answer i expected here, LOL

msRB311, there's a current thread in the non-romantic forum where some people are saying $7 million isn't a lot of money.

lrfox · 03-15-2021, 02:01 PM

Boston Shudra, I felt the same way you do as recently as two years ago. I remember thinking "I'll never be able to buy in Boston, I don't want the suburban single family, and that leaves me with either renting with roommates or buying a condo somewhere I don't love because it's a better value." I looked in places like Brockton, Lowell, Lawrence, Haverhill, etc. but either didn't love the area or the place was still too expensive for what I go (in terms of the home and the area). So I did roommates while I dated, rented my own spot way out of town, etc. Then I moved in with my girlfriend and even back then it looked like a condo in/near town would be cost prohibitive for us for the foreseeable future. But we both saved (and had been saving), we both had continued professional growth (while not living extra lavishly with each raise/bonus/promotion), and found ourselves in a position where list prices that were previously outrageous were becoming borderline doable.

We got lucky and dodged major financial hardship during the pandemic (she had a brief partial furlough, but not a big one) and condo prices in/around Boston simultaneously dipped a bit. With another year of savings we found ourselves in a position to look at some places and found one we loved. We pulled the trigger and 8 months in, we're extremely happy with the decision. We're paying less than we were paying for rent, so we're not house poor; and we have a much nicer spot with far more "modern" amenities than we had while we were renting. The prices that seemed outrageous to us a few years ago became a lot more realistic with some career growth and savings. The pandemic sped things up for us, but it would have happened down the road anyway.

Is real estate in Boston expensive? Absolutely. Are there risks with condos? Uh huh (we did a ton of research and were lucky enough to meet some pretty transparent owners in our building who were extremely helpful). But if you really want to buy in the area, there are ways to make it happen eventually. Living with your parents for a few years and squirreling away what you'd spend on housing and then some will make it happen quicker than you might think. Finding a partner with their own income and savings will speed the process up even more.

Oh, and we're not millionaires. Not by a long shot.

massnative71 · 03-15-2021, 02:23 PM

Quote:

Originally Posted by redplum33

Dude, I think you should stay with your parents and save some money. Or maybe rent a place for a while. If you buy, you'll need a large down payment...and then you'll have a mortgage, property taxes, and monthly condo fees. It would be more affordable to rent for a few years, and then you could reassess the situation.

And don't look at renting as throwing away money. It costs money to live whether you rent or buy, but there are no surprises or responsibilities when renting.

I imagine his concern with renting, is of rent increasing every year and never being able to get ahead (unlike buying a condo on a 30 year fixed where you are locked in for life). Renting sure isn't the end of the world and it could be the best option, but staying a few more years with his parents while he saves would certainly be preferable as long as he can stomach it.