Nothing Inbetween (Pittsburgh, Indiana, Fox Chapel: apartments, renting, insurance)

[CaptainObvious]

Alright everyone. Good points made by all, for sure. I suppose it boils down to a matter of personal preference for many...some would consider paying 2/3 of their income toward a home "affordable", others would get scared at anything over 20%. Some think nothing of making $400,000 purchases on adjustable rate mortgages, others worry about locking in 5% on a $50,000 mortgage. There are people reading this right now making half what I do looking for $500,000 homes and there are people out there that make twice what I do looking to move into a $75,000 fixer-upper I suppose. It all depends on your tolerance for risk. As for me...well...I'm a veritable risk wussy.

I did take your point, Hopes, about the appreciation in value of previous homes and rolling that into a new home. For sure, that makes a huge difference. If you can't already tell, I am a soon-to-be first-time home buyer...I've never settled down in a place long enough to actually buy anything. I do not have the luxury of a previous home to profit from...just years of wasted rent with no equity at all. So now that I'm ready, it is scary as hell! My household pulls in what I would consider to be a very very good wage. I suppose the definition of "good wage" varies widely from person to person and state to state, and that may be what a lot of differing opinions are based on. Having said that, me and my good wage doesn't seem to be able to buy much in the way of nice homes nowadays. I don't expect my first home to be in the best neighborhood sitting on 5 wooded acres, but I'm not going to go out and buy a dump just because I can. I suppose one's personal budget and amount he feels comfortable spending on a place to live is such a matter of personal taste that there will never be a right or wrong answer, but after crunching numbers I would feel comfortable paying about $1,000 a month toward a mortgage. I could spend a whole-lot more without breaking the bank, but I am extraordinarily fiscally conservative and just can't see the value in being "house-poor". So, I've got my $1,000/month in hand, for better or worse, out there looking, and finding that I am priced right out of the market. "Starter homes" aren't so starter anymore. $1,000/month will get you a 700 square foot apartment in a nice neighborhood or killed in a bad one. Which lead me to the first post...nothing inbetween. I know my outlook is pessimistic, if not downright bleak, but I just feel like with as successful as I feel, I ought to be able to afford more. Such is life

Thanks for replying everyone...it has been an education to see all the widely varying opinions out there!

Regards,
O

[CaptainObvious]

Originally Posted by MaryS80

There is very little in the $80-120k range.

Unfortunately, this is what I seem to be searching for. Actually probably more like the $140-$160k range, but I find that is the smallest part of the market. Tons of sub $100k homes for sale, tons of $250,000 homes for sale around Pittsburgh- and again- very little inbetween. (see previous novels I've posted )

So maybe we should turn the subject to this...Where would you recommend in the Pittsburgh area for the $140-$160k price range?...yes, in fact, that seems like a good jumping off point for a new thread...

CapO

[Hopes]

Originally Posted by CaptainObvious

I don't expect my first home to be in the best neighborhood sitting on 5 wooded acres, but I'm not going to go out and buy a dump just because I can...........

Quit wasting your money on rent. You'll never get a profit from your first house if you don't ever buy your first house.

Originally Posted by CaptainObvious

"Starter homes" aren't so starter anymore. $1,000/month will get you a 700 square foot apartment in a nice neighborhood or killed in a bad one.

That's not true though. If you buy an older home, you can have a decent sized starter home in a safe neighborhood. Seriously look at the houses in Ross and Shaler, or perhaps even West Deer, Indiana or O'Hara. I showed you it's possible to find the new houses too. You just have to be patient to find them. Quit searching the internet. Get out there and start looking at houses in person. You might be surprised at what you find. I guarantee you that you can get a ranch or a slit entry in your price range.

Remember, your house is part of your retirement investment plan.

[CaptainObvious]

Originally Posted by Hopes

Seriously look at the houses in Ross and Shaler, or perhaps even West Deer, Indiana or O'Hara.

I like all those areas. I'm in them often and see homes I like. Just seems the few I have taken the time to look into have been more in that $200-$225k range in those areas. My biggest problem I think is that I, like everyone else probably, like NEW. I don't want to spend a hundred and anything thousand on something to have to sock thousands more into it to get it to where I want it. I don't have thousands more to sock into it!!!

You've been quite helpful, Hopes...even if I don't respond specifically to all your helpful hints, I've certainly taken them!

Thanks,
O

[Tallysmom]

Cap'n, I remember when we bought our house -- it was a very scary thing. Kinda like having sex for the first time -- it's this big scary thing that will absolutely change your whole entire life... then afterwards it's like you made all this fuss for nothing.

Wait -- that didn't come out right...

We've only bought one house -- and it's a nice house, but it was crammed to the rafters when we looked at it, and I fell in love with the pretty crystal chandlier and Brent loved the back yard pond.

And when I swung open the door and walked through when the previous owner had emptied it out, I cried. Frank had painted AROUND things the last time. The bathroom had this gawd-awful silver foil with peach flowers asian inspired heavy cloth like wall paper that literally peeled off the wall.

A few windows were broken. Most of them didn't open and the sash ropes were broken. Retying sash ropes onto sash weights isn't nearly as easy as they make it look. In fact, you hav to dis-assemble the whole window to do it. Then a month after you retie them -- the suckers fall off again.

My husband declared it "The Haney Place" -- remember the wreck of a house from Green Acres?

But we've worked on it ourselves, learning a great deal, and for things we knew were out of realm of expertise, we hired David. From David we found out our house has a solid foundation, tied to the house for earthquakes. From David we found out our house was built from the cheap plentiful wood of the time -- it's solid redwood. Bugproof.

Our house has stood the test of time. It was the best thing we ever bought. Out here in California, it's been a great investment.

Better yet -- my mortgage payment is 642.50... when every one else is paying 1700 in rent for an apartment or 3500. for a house.

[Katiana]

Hopes:

Remember, your house is part of your retirement investment plan.

You can only get the money out of your house if you sell it. Then, you have to buy or rent something else. Sure, you can borrow money against the house's value, but that's not the same thing. A house adds to your 'net worth', but it's possible to be 'house poor', in other words, to own a house but not have any money for anything else. A house is not the same type of investment as stocks and the like.

[Hopes]

Originally Posted by pittnurse70

Hopes:

You can only get the money out of your house if you sell it. Then, you have to buy or rent something else. Sure, you can borrow money against the house's value, but that's not the same thing. A house adds to your 'net worth', but it's possible to be 'house poor', in other words, to own a house but not have any money for anything else. A house is not the same type of investment as stocks and the like.

I said it was PART of a retirement investment plan, pittnurse.

[Hopes]

Originally Posted by Tallysmom

Cap'n, I remember when we bought our house -- it was a very scary thing. Kinda like having sex for the first time -- it's this big scary thing that will absolutely change your whole entire life... then afterwards it's like you made all this fuss for nothing.

Wait -- that didn't come out right...

That was absolutely hillarious! Thanks for the laugh!

[juliegt]

I live in the SF bay Area in a working class neighborhood about halfway between SF & San Jose. My house is 960 sq.ft. and is run down. It recently appraised for $640,000. Pittsburgh seems incredibly affordable to me, even with high taxes.

Unless you're willing to live in a very rural area, I don't think there are many places as affordable as Pittsburgh.

I realize that the percentage of income it takes to own a home today is not what it was a generation ago, but there are the tax advantages and the long term appreciation in most places.

I'd be interested to know what areas you consider affordable?

[juliegt]

Unless they bought within the last two years when the market was insane, and have to sell today, they will make money. For example, the house next door to me - exactly the same as mine - although in abosolutely terrible condition was listed at $499k (for 960 sq ft) and sold for 695k. there were literally hundreds of people looking at it and there was a bidding war. the people who bought it fixed it up and sold it six months later for $745k.

the market isn't like that anymore and homes are sitting on the market longer - maybe 90 days to six months, instead of 90 minutes! but, they are selling. that same house is probably worth about $675k or more today. Again, it would only be a loss for someone who bought at the height of the market and couldn't hang on until the slump is over. I've lived in the SF Bay Area my entire life and property always rebounds. People are willing to take the financial risk to live here because the potential profit is so great, the weather is incredible, and the economy is good.