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Old 07-01-2008, 04:48 PM
 
17 posts, read 93,285 times
Reputation: 17

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I read the entire 5 page thread on a similar topic and then had a question of my own. I realized it would be better as a stand alone advice request. I'll paste my question/situation below and any advice would be appreciated.

Would it be a good time to buy a house, and sell our condo, simply for a lifestyle upgrade and not necessarily any substantial investment? We have inherited some $$ and could use it as a downpayment on a home to make our payments affordable. Or is there another way we could spend the money more wisely in the current market? Our 5 year ARM on our condo is up this December and we're trying to decide what to do. We are looking to move to Tustin and spend around $450k. I don't really think renting sounds appealing because I hate to deal with landlords and being at their whim/mercy. Also, we have 2 small children and we're a dual income family. Honestly, we've always agreed we don't want to raise our children in CA, specifically OC, but I can't foresee any opportunity in the near future for us to relocate (we have our sights on Bellevue/Redmond/Kirkland, WA). Any advice?
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Old 07-01-2008, 06:49 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
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Quote:
Originally Posted by EvergreenElle View Post
Also, we have 2 small children and we're a dual income family. Honestly, we've always agreed we don't want to raise our children in CA, specifically OC, but I can't foresee any opportunity in the near future for us to relocate (we have our sights on Bellevue/Redmond/Kirkland, WA). Any advice?
I'll bet a good hunk of the second income pays for the child care (unless grandma evergreenelle is working for free....)

Take your income, multiply by three: that's what house you can afford. I wouldn't push it any farther than that with two kids and Roth IRAs, Education IRAs, dual disability insurance, dual life insurance.....not to mention future (??) $7/gal gas and other increasing energy costs.

Why can't you relocate? Can't or won't? Is OC the only place your skills are demanded? There are demands for your services in a lot of places - that don't cost $350/sqft, that don't have strangling traffic, and that have decent government (public) schools.

Fifteen year fixeds are around 5.25% with one point (that's what I am going to get and my boss is paying the point too).
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Old 07-01-2008, 09:27 PM
 
Location: Orange County, CA
25 posts, read 115,524 times
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My neighborhood is in your price range. There is a public school and a private (Catholic) school both within easy walking distance. The community currently has five homes for sale and one for rent. General info, plus photos of houses for sale are on our neighborhood website:MySpace.com - Broadmoor Tustin - 40 - Female - Orange County, California - www.myspace.com/broadmoortustin
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Old 07-01-2008, 09:35 PM
 
Location: Laguna Niguel, California
19 posts, read 83,350 times
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Default Bank-Owned Prperties Are the Way to Go

If you can find a bank-owned property for sale that meets your criteria, you can get a good buy that is likely to be sold for under market value. I've always told my clients that you make your money on your home when you buy, not when you sell. So buy the right home at the right price and you'll be fine.

It will take some patience and legwork, but it's worth it if you want the security of owning your own home in a neighborhood you like.

~Amanda Wheeland
O.C. Real Estate Advisor
amanda@ocrealestateadvisors.com
O.C. Real Estate Advisors – Orange County Real Estate
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Old 07-02-2008, 10:17 PM
 
365 posts, read 1,419,205 times
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If you have inherited money, would you have to sell the condo in order to buy the home? Can you keep the condo and rent it out? That's the first step to real estate investing.
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Old 07-03-2008, 01:02 PM
 
17 posts, read 93,285 times
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Quote:
Originally Posted by Unkllars View Post
If you have inherited money, would you have to sell the condo in order to buy the home? Can you keep the condo and rent it out? That's the first step to real estate investing.
We have definitely thought about this one. We don't need the money from the sale of the condo to put a downpayment on a house. The only problem is our 5 year ARM is up in Dec. and also the HOA is $300 a month. We wouldn't be making any money. Would it still be worth it? We would want to be our own property managers. I suppose we could just refinance the condo and get a reasonable rate and take a small loss each month on the HOA. hmmm.... How much trouble is all this for two busy working parents?
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Old 07-03-2008, 01:13 PM
 
17 posts, read 93,285 times
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Quote:
Originally Posted by Charles View Post
I'll bet a good hunk of the second income pays for the child care (unless grandma evergreenelle is working for free....)
Actually... we pay for child care for the wee ones and fortunately it's less than 1/2 of my salary. Very affordable, but very high quality in my opinion. Grandma evergreenelle wouldn't be my choice for a 'Mary Poppins'.

Quote:
Why can't you relocate? Can't or won't? Is OC the only place your skills are demanded? There are demands for your services in a lot of places - that don't cost $350/sqft, that don't have strangling traffic, and that have decent government (public) schools.
Very good points - I totally agree. My husband's job is very specialized and not as available in Seattle. I am comfortable taking risks and moving and finding jobs - he is not, however. I am growing weary of trying to persuade him to make the leap. I will continue to try to make the best of it here - we do get out and explore the outdoors a lot which makes it fun.
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Old 07-03-2008, 01:54 PM
 
Location: South Bay
7,226 posts, read 22,193,073 times
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Quote:
Originally Posted by EvergreenElle View Post
The only problem is our 5 year ARM is up in Dec. and also the HOA is $300 a month.
If you don't have some serious equity in your condo, I would not count on being able to refi. Banks are being very stingy right now. Also, hopefully you have enough equity in the condo to absorb the recent price drops that are happening around the country. As for the HOA, I wouldn't be too worried, all you have to do is build it into the rent that you charge any future tenants.
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Old 07-03-2008, 06:38 PM
 
365 posts, read 1,419,205 times
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Talk with your bank about loan modification. BRinSM said, equity is a factor in refinancing that you would have to consider. A lot of banks are allowing loan modification so you get out of the ARM. Call your lender and see what they can do for you.

As for being landlords, if the place is in nice shape, you just have to collect rent every month. Ask your friends and family if they know of some good people who are looking to rent.

Now as for Tustin, what are you looking for? Also, if you don't like the OC, why are you looking in the middle of it? Are your jobs there? I'm trying to get an idea of what your needs and wants are so this forum could really be a help for you
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Old 07-03-2008, 10:35 PM
 
17 posts, read 93,285 times
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Quote:
Originally Posted by Unkllars View Post
Now as for Tustin, what are you looking for? Also, if you don't like the OC, why are you looking in the middle of it? Are your jobs there? I'm trying to get an idea of what your needs and wants are so this forum could really be a help for you
I appreciate your responses and help. Why Tustin: we both work in Irvine, our child care is in Costa Mesa, our church is in Lake Forest. After extensive exploring and researching different cities, we feel that Tustin has good schools, unique character, close to everything, not too cookie cutter. We're looking for a single family home with yard that has at least 3 bedrooms and in good condition. No HOAs. Is it so much to ask? lol. There are many things I do like about the OC - and I'm sure I would feel better about it if we were in a nicer area of it. (i.e. near a grocery store that didn't have grey looking meat all the time!)
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