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I'm a first time homebuyer. I saw a townhome on redfin which came up for sale last week. It is a 3 bed 2 bath home sharing walls with another townhome. It is priced in the early 400s and is located in the heart of Kirkland/Redmond, WA area. I looked at the house and I like everything about the house except for the fact that it is a 1985 build.
My goal is to buy a starter for 3-5 years and then resell it for a much bigger single family home. My questions are,
1. if the inspection report is clean, does it mean the home requires very little maintenance?
2. when I decide to resell, the home will be 35 years old, probably. How much does the age of the house affect its estimated price?
1. no, the inspection is only to find major defects
2. not much, if it is kept up well. As always, the price in 3-5 years will depend on the demand of buyers and the supply of places to live and the desirability of location
Location: Danbury CT covering all of Fairfield County
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Location is everything. In my town, there are a 30 year old complex that sells better than similiar 20 year old homes that offer the same size, because the 30 year old devolpment is in a percieved better location with new restarants, etc.
3 years is a very short timelihe to build equity and achieve an increase in value. I'm not sure you would even cover your closing costs. 5 years is marginal in most areas.
I suspect you believe that owning a home is the best path to eventually purchase your 'dream home'. I disagree. Renting is not 'flushing money down the toilet' as some claim. ESPECIALLY in the case of a townhouse or condo with high monthly fees and a lower rate if appreciation than you typically have with a SFR.
1. if the inspection report is clean, does it mean the home requires very little maintenance?
Nope. An inspection is a snapshot of your house at that particular time -- there is no guarantee for the future. Home inspectors should evaluate the likely lifespan and overall condition of major systems, roofing, and appliances in your house, but they're not psychic. A home inspection report is a good way for you to get a picture of the overall condition and maintenance of the house, but it's just not a reliable predictor of future maintenance costs.
Quote:
2. when I decide to resell, the home will be 35 years old, probably. How much does the age of the house affect its estimated price?
It really depends on where you are. Where I live, some of the most desirable parts of town have 90%+ older housing stock, and my particular part of town consists primarily of houses ranging from the 1940s - early 1980s, with a lot of them circa 1970s. Houses sell quickly here, but I know this is different in other cities where the norm is newer housing.
You didn't ask for this advice, but I'm going to give it anyway. Please consider whether or not you're truly ready to purchase this house. Buying a house is a great thing to do at the right time in your life, but if the last several years have taught us nothing else, they've taught us that home-ownership is not a guaranteed money-maker (or even "money-maintainer").
I feel you would likely be much better served by renting for the next 3-5 years, saving up a down-payment and then buying your much bigger SFH when you're ready. 3-5 years just isn't enough time to own and expect to make your money back, much less make even more money off of the sale.
I'm a first time homebuyer. I saw a townhome on redfin which came up for sale last week. It is a 3 bed 2 bath home sharing walls with another townhome. It is priced in the early 400s and is located in the heart of Kirkland/Redmond, WA area. I looked at the house and I like everything about the house except for the fact that it is a 1985 build.
My goal is to buy a starter for 3-5 years and then resell it for a much bigger single family home. My questions are,
1. if the inspection report is clean, does it mean the home requires very little maintenance?
2. when I decide to resell, the home will be 35 years old, probably. How much does the age of the house affect its estimated price?
Thoughts appreciated. Have a nice one.
Funny you'd mention that, in my area (Kirkland).
I sold mine, in Mill Creek, that I'd owned more than a decade. The total age of the units at that time was fourteen years.
They were OK, all considered, after we'd sued the builder in the mid-2000s to replace rotting-off decks. He replaced all of them with some sort of non-wood product. Solved that problem.
But as you know, Seattle is tough on condos and wood structures. Just part of living here: mold and moss grow, soil creeps, the driving constant water half the year gets in everything, given sufficient time.
Bottom line is that structures here tend to rot down faster than in "some" other parts of the country.
I wouldn't buy a 30 y/o condo here under any circumstances. I doubt you'll make money on it, in fact probably lose, though on your time frame I could be wrong. Walk around some of the older complexes on the Slough (you'll know which ones), in Redmond, Kenmore, etc. Should answer your question of what might happen, worst-case.
That's a LOT of dough for a duplex or condo. I looked at plenty, too, some years back (post 2008 crash, yet pre current boom). They aren't known as money-makers. What are condo fees? Mine were pushing $200/month, in Mill Creek, when I bailed. An otherwise-gorgeous, mid-$400Ks duplex in Kirkland a couple years ago had $400/month dues, which (among other thing) suggested to me I not move forward. Also via Redfin: would be mildly amusing if it were close by (Moss Bay, in that case), though that price point describes many places in the area.
Homes here where professionals might actually want to live are impossible to find. I understand your dilemma, the desire to get in while the getting is good. Last several posters have idea what they are talking about, given the hot to very-hot nature of Seattle metro rental/purchase market, especially Eastside. Kirkland, Bellevue, and Redmond are not some ghetto in Iowa that couldn't move $400K properties if a pot of gold were in every front yard. However: suggest you tread lightly, find a good realtor, and choose wisely for GROWTH potential. The only way I found a place that was actually worth a hoot was via a realtor who was on top of every new property that fit my particular criteria like an alien to Sigourney Weaver's face. Finally closed on a great place after several failed bids, prior.
Last edited by Blondebaerde; 07-02-2014 at 05:42 PM..
@jkgourmet - I agree. But I would also make rental income for a year or two since I'm single right now. So I'm guessing the rental income + price appreciation + my own savings over the next few years might get me close to my dream home.
If I'm gathering right, 30 years is just too old for a condo, and that 3-5 years may not be a sufficient timeline for making a profit. And inspection is not 'gurantee'.
I'm thinking I should give this a pass, and keep waiting for newer builds. Thanks much!
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