Affordable housing anywhere in the state? (Portland, Silverton: real estate, to rent, mortgage broker)

[ladyfish]

My husband loves OR so we're trying to figure out if we can manage to survive there. We'll have one income until our daughter goes to school in a few years, and my husband will be in the HVAC field. Here in Denver I believe it starts out at about 16/hr. In Oregon, where housing prices are expensive, would he expect to start out at a higher rate than that? Basically, would we be able to survive anywhere in western Oregon?

[Imperial1904]

Originally Posted by ladyfish

My husband loves OR so we're trying to figure out if we can manage to survive there. We'll have one income until our daughter goes to school in a few years, and my husband will be in the HVAC field. Here in Denver I believe it starts out at about 16/hr. In Oregon, where housing prices are expensive, would he expect to start out at a higher rate than that? Basically, would we be able to survive anywhere in western Oregon?

There are some people who find out after they moved into Oregon from a city like Denver, that it's hard to survive without having secured a job.

[StealthRabbit]

get in touch with Kristynwy, currently in WY forum. They just moved from Silverton OR to Sheridan, WY, and her DH is in HVAC.

I think wages and housing will be pretty similar (on a broad scale). Colo overal Tax burden is probably less. http://www.taxfoundation.org/news/show/335.html (broken link)

Wages a bit better in Metro area, but housing is more too... Is he in Commercial or Residential? Things might be a little tight with the building slowdown. Probably better get a job first, or... stay close to Portland and plan to commute. We did the single income thing for 25 yrs...(ended up having to homeschool...you might want to explore the schools if you are planning on using them) OR has some good ones, but funding is a serious issue.

What does he like about OR, might have to make a 'Plan B'

From my experience , it is pretty stressful to move a family without having a job / or a home.

[freedom]

In Grants pass you can get a new home 1600 s.f. 3bd/2bth for under $250,000. Construction has slowed, but is not dead. If your husband is proficient he can expect to make at least $20 per hr.
It is not difficult in Oregon to become licensed to install HVAC or any other trade.
The course can be done at home, the license and bonding is reasonable.
All of Southern Oregon could use qualified hard working people. The competition is low.
I know of one HVAC contractor that would give work to a good foreman in a heartbeat, if he was a self starter and could run jobs and have a good work ethic.

[ladyfish]

I still don't understand how any family making a normal income could afford a 250,000 house . . . is this just me? I think it's insane that there are that many people out there that can.

[mrkool]

Originally Posted by ladyfish

I still don't understand how any family making a normal income could afford a 250,000 house . . . is this just me? I think it's insane that there are that many people out there that can.

Yeah, it's a pretty sad commentary on things when you are making inquiries about affordable housing in Oregon, and someone replies you can get a new home in a certain town for $250 k, as if that's a great deal. It's a nice state, but seems like housing costs are out-of-whack... not that it is the only place like that.

[skypros]

On the WEST coast $250,000 for a New Home is a "good deal".

Sorry but that is the way it is out here.

The government figured out a way to "raise taxes" without the people even thinking of the outcome.

Lower interest rates.... Housing BOOM............... Higher real estate taxes !

[freedom]

In order to qualify for a $250k home with 10% dwn. You would need to have an income of about $35,000.00 per yr.
If a married couple is making $18,000 per yr. each. Then they should be able to afford a $250,000 home.
These are not difficult incomes to have in the Pacific Northwest. 18k per yr. is about $9 per hr. Oregon min. wage is $7.80 per hr.
The toughest part is the dwn. payment. Some builders will carry that part on a second, some lenders will do 100% loans, if the credit of the borrower/s are in the good range.

With this scenario, the homeowners would get approx. $12,000.00 per yr. home mortgage deduction on their taxes which would mean more take home pay, by lowering their withholdings on their checks.
If there is a part time home business, there are business use of the home deductions. Utilities, storage (if applicable), other space used can be a percentage of use deduction, vehicle allowance. (again more take home pay).

Excuse the business explanation, but tax planning should be a big part of decision making, it can be 25-50% of your income.
Relate that to quality of life and it adds up.

[ladyfish]

Originally Posted by freedom

In order to qualify for a $250k home with 10% dwn. You would need to have an income of about $35,000.00 per yr.
If a married couple is making $18,000 per yr. each. Then they should be able to afford a $250,000 home.
These are not difficult incomes to have in the Pacific Northwest. 18k per yr. is about $9 per hr. Oregon min. wage is $7.80 per hr.
The toughest part is the dwn. payment. Some builders will carry that part on a second, some lenders will do 100% loans, if the credit of the borrower/s are in the good range.

With this scenario, the homeowners would get approx. $12,000.00 per yr. home mortgage deduction on their taxes which would mean more take home pay, by lowering their withholdings on their checks.
If there is a part time home business, there are business use of the home deductions. Utilities, storage (if applicable), other space used can be a percentage of use deduction, vehicle allowance. (again more take home pay).

Excuse the business explanation, but tax planning should be a big part of decision making, it can be 25-50% of your income.
Relate that to quality of life and it adds up.

Are you a real estate agent? Sorry, I'm having a little trouble understanding exactly what you're saying! Are you saying that the tax situation is good because you can deduct a lot with the mortgage . . . ? I'm new at this.

I didn't realize you could qual for a 250k mortgage at 35,000/year. That's the "quoted" starting salary for my husband's career that he's training for, but it still seems like a lot! I guess anywhere the coast it's going to be quite expensive though.

[freedom]

Originally Posted by ladyfish

Are you a real estate agent? Sorry, I'm having a little trouble understanding exactly what you're saying! Are you saying that the tax situation is good because you can deduct a lot with the mortgage . . . ? I'm new at this.

I didn't realize you could qual for a 250k mortgage at 35,000/year. That's the "quoted" starting salary for my husband's career that he's training for, but it still seems like a lot! I guess anywhere the coast it's going to be quite expensive though.

Not a Real Estate agent- Land investor, Developer, Builder.

In short, when you are employed and pay payroll tax, it is based on dependants usually. If you have a mortgage, all of the interest is a write-off.
Structure your deductions from your paycheck to match your write-offs, and you show more take home pay being able to afford a higher mortgage.
Rather than waiting for a refund and having the Feds hold your income each paycheck you are able to afford a higher house payment, which usually equates to a home that builds more equity. As your income goes up, adjust your mortgage through buying a new home, or remodeling your existing home.

If you move up to a nicer home after 2 yrs. or more, you also pay no capital gains on up to $250,000 of profit. If married $500k

ie. buy home at $250k sell in 2 yrs for 300k. Pocket 50k tax free.

Buy nicer home, to offset (hopefully more income from job) and live in a nicer home getting more equity, more mortgage interest write-off (which is typically 90% of the payment).
$1,500 per month= roughly $1,350 in interest = $16,200 you get to write-off against your income.

A good tax accountant can show you the benefits, if they don't understand this then look for a better accountant.

Being in the business it is very usefull planning, but anyone can do this. In Oregon the demand "IMO" will continue, housing will continue to rise after the correction. This is a perfect time for owning. Rates are low, prices for homes I feel will never be this low. History shows this to be so.

Renting gives very little long term benefits, there are times to rent on occasion, but if at all possible the benefits of owning are fantastic.

You can go to a mortgage broker and get pre-qualified for an amount based on credit history, income and other debts, so you know what you are approved for before you shop.

freedom.