Will you become a victim of Pittsburgh's housing boom? (credit, how much)

[selltheburgh]

Originally Posted by glowrock

Just figured I'd let you guys (especially YOU, h_curtis!) that not everyone who works in the oil and gas business lives outside of Pittsburgh. I live in the Southside Slopes, work in Southpointe, and don't mind the commute one damn bit. So please, spare me the garbage, would you? Not everyone wants to live in the suburbs. Not everyone has kids and cares about the schools. There ARE people in my business who choose to live in the city, who choose to have the urban amenities. Besides, as I know all of us are aware besides you, the entire freaking universe doesn't revolve around Fox Chapel!

One other point: Property taxes are LOWER in Pittsburgh than other, surrounding areas. Yes there's the 3% income tax, fine. But rents are still reasonable, home costs are still reasonable, and cost of living is reasonable.

Just my $.02, but I think the overall pessimism expressed by so many people here is hugely detrimental to Pittsburgh. Just what this place needs, more detractors. More people railing against the city, more people complaining about everything from the infrastructure to the housing stock to the weather to nearly everything else. Enough already!

Well said. I have a friend who works in the gas industry and lives in the East End. He and his wife would have it no other way.

[eccotecc]

Originally Posted by eccotecc

selltheburgh,

If properties in the metro area were to increase by 50%, I assure you the less desirable areas would also increase by the same percentage. This is fine if a person is already in a property and they can roll their equity out of one home and into another. For a first time homeowner this isn't the case. Another concern is wages. First time buyers' wages aren't at their peak, usually, so a larger percent of disposable income goes to paying for the principle, interest, taxes, and insurance. This then becomes a more dire issue because wages never increase as fast as the cost of homeownership. So what does this mean, first time homeowners are priced out of the market. What should a person do? I suggest a person start building up their equity as soon as possible and for a young homeowner that usually means sweat equity.
I further suggest a person buy in a marginal location that has potential for becoming desirable and put their heart and soul into their home. One thing I don't suggest to a new buyer and that is to be house poor. Never ever, ever spend more than 30% of net income on your PITI.

selltheburgh,

I hope this answers your question.

You sound like you're in pretty good shape. If I were you I'd be looking to buy a few more properties in Hazelwood.
Being diversified is a good investment strategy.

[stburr91]

Well, so far the desirable areas have seen quite an increase in sale prices, but we haven't seen much of an increase, if any, in most of the less desirable areas. I just don't see demand getting to the point any time soon, were the marginal areas are going to see the same percentage increases as the prime locations. People have to be willing, and able, to pay more for the less desirable areas. We aren't seeing that now, because there isn't enough demand, and there are still plenty of affordable areas to choose from.

I'm not saying prices aren't trending upward, but I am saying it's not time to panic.

[eccotecc]

stburr91,

I'm not suggesting anyone panic. I'm suggesting now is a very good time to buy within your means. I'm suggesting that marginal neighborhoods within the shadow of desirable neighborhoods are good locations for first time home buyers to consider looking to make their purchase.

I'm not spouting doom and gloom, but I am trying to make knowledgeable suggestions.

[Hopes]

Originally Posted by glowrock

Oh, for those who say that Columbus and Charlotte are cheaper? It's true, of course, but it's also true that they have virtually unlimited swaths of land to swallow up in suburbia. Nothing to get in the way like our enormously challenging topography. And yes, they're much, much newer cities in general, meaning the homes are newer and more modern. But no way, no way in hell can you get such amazing views as you can get in Pittsburgh!

The region's topography isn't too challenging for suburban sprawl North, South and West of Allegheny County.

[selltheburgh]

Originally Posted by eccotecc

selltheburgh,

I hope this answers your question.

You sound like you're in pretty good shape. If I were you I'd be looking to buy a few more properties in Hazelwood.
Being diversified is a good investment strategy.

I meant raw numbers. What price point eliminates first time buyers?

Hazelwood is too far because I don't like driving much. I had a south hills rental and it was a pain. I have one outside the city now and the current tenant moves out in a few years and I'll dump it then. The city is easier, appreciates Better and gets a better return. If I expand outside highland park or east liberty it'll be lawrenceville (again) or Garfield.

Your idea about shadow or fringe or edge areas makes sense and is part of my gameplan My first place was a duplex on a stable block in highland park, but a block from 4 or 5 crack houses. Really rough section.

Those houses are all now 200k or more since being rehabbed. I took the equity from my first place and have flipped one or two per year while adding a few rental units per year and lots of mortgage debt.

[stburr91]

Originally Posted by eccotecc

stburr91,

I'm not suggesting anyone panic. I'm suggesting now is a very good time to buy within your means. I'm suggesting that marginal neighborhoods within the shadow of desirable neighborhoods are good locations for first time home buyers to consider looking to make their purchase.

I'm not spouting doom and gloom, but I am trying to make knowledgeable suggestions.

I completely agree, it's a great time to buy in the shadow of a desirable neighborhood, as the prices are still very reasonable.

[Goodjules]

Originally Posted by stburr91

I completely agree, it's a great time to buy in the shadow of a desirable neighborhood, as the prices are still very reasonable.

I concur.

[concept_fusion]

Southpointe is booming. Its become speculator central too. So don't get caught holding the bag. I seriously doubt there will be a regional housing boom, the decades of population loss aren't reversed overnight.

[eccotecc]

selltheburgh,

Hmmmmm !! What would eliminate first time buyers? It depends on the individual buyers. It depends on how much they have to put down. It depends of course on how much they qualify for.

If I had to guess, taking into account average prevailing wage for young workers, servicing PITI and renovation expenses, I would guess a first time buyer should spend around $100,000 give or take. If prices were to go much above that then I would suggest they reconsider their purchase. Of course each individual situation is going to be different.

What do you think....Am I close??