Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just not where you live perhaps. It would be a tiny house in a rural location- nowhere remotely close to NYC(!)
This scenario is possible in both NY and IL, actually.
cheers
Like I said, I don't know of ANY town in the state where you'll get a $176K house and your taxes are only $2773. This figure does NOT include school property taxes which are a huge factor here in NY. I've lived in several areas of this state and numerous towns/cities over the years.
Like I said, I don't know of ANY town in the state where you'll get a $176K house and your taxes are only $2773. This figure does NOT include school property taxes which are a huge factor here in NY. I've lived in several areas of this state and numerous towns/cities over the years.
A trivial Google turns up plenty of towns in New York where that isn't true. You can't judge the whole state by the NYC tri-state suburban sprawl.
Not that you could find a $176K house there but the mil rate in Southampton is $4.70 per thousand of valuation. That's the lowest mil rate in the state.
I did a quick look at the Capital District. Here's a small house on Zillow 45 miles north of Albany. The mil rate looks to be about $10 per thousand of valuation. $528 in property taxes. Assessed for $46K. Listed at $139K. A $160K house in that town with 100% valuation on the assessment would have sub-$2000 in property taxes.
My friend bought a nice 4 bedroom home for 197K and taxes 6500 a year. Built in late 90's early
2000's in a decent neighborhood and their income is 40K and have 3 kids. It's an ok income for 1 person in a small condo but an entire family on 40K a year? How did they get the loan? I know they didn't have savings and could only afford to go out once a month before they bought a house. I don't want to ask them how they can afford it....just curious since we make over 100K together, no kids and struggled to find a 2 bedroom home we could afford and also have a bit of extra money on the side. Also they only lived their 6 months and are already trying to rent or sell it since they don't like the neighborhood (too snobby is kind of what they said).
Many possibilities, maybe they had lots of cash you didn't know about, maybe it's family help, maybe some government program, maybe the taxes aren't really that high, maybe some side income, or maybe they can't afford it after all and are shortchanging their future (e.g. failing to put money away for emergencies or retirement).
My friend bought a nice 4 bedroom home for 197K and taxes 6500 a year. Built in late 90's early
2000's in a decent neighborhood and their income is 40K and have 3 kids. It's an ok income for 1 person in a small condo but an entire family on 40K a year? How did they get the loan? I know they didn't have savings and could only afford to go out once a month before they bought a house. I don't want to ask them how they can afford it....just curious since we make over 100K together, no kids and struggled to find a 2 bedroom home we could afford and also have a bit of extra money on the side. Also they only lived their 6 months and are already trying to rent or sell it since they don't like the neighborhood (too snobby is kind of what they said).
This is a question out of left field. As you admit, you know very little about your friend's finances other than his salary. Did they have help from a family member? Did a deceased relative leave them some money? Any number of possibilities, regardless, none of your business. The issue at hand is how you plan to buy a house, if that's what you want. How can we, as a discussion group help? Comparing what you want vs what your neighbor bought may be like comparing apples to oranges.
OP didn't mention their friends' credit (and good thing, because they're already really invasive to their friends' private financial matters), but it's an unfortunate truth that there are lenders out there who will lend VA loans to veterans with ridiculously low credit scores. I've seen as low as 530. Usually it's at an extremely high interest rate that will only benefit the bank, not really the buyer. I'm not sure if these would be considered predatory practices, but they're shady at the very least. Usually it lures the veteran into borrowing more than they might otherwise, raising their DTI to uncomfortable levels. (Then again, I'm only truly comfortable with 25% DTI!)
Hmm, well thanks for the response.
Is it really unfortunate? As a veteran with a good job but with atrocious credit, getting "preyed upon" in this scenario might be the difference between home ownership or not. That's why I asked the question. If my poor credit won't hold me back from a VA loan, my life just changed dramatically.
Many possibilities, maybe they had lots of cash you didn't know about, maybe it's family help, maybe some government program, maybe the taxes aren't really that high, maybe some side income, or maybe they can't afford it after all and are shortchanging their future (e.g. failing to put money away for emergencies or retirement).
And that also would be their business , and only they would own the consequences and have to deal with it, not any of us.
They can't afford it if there is no large downpayment from the numbers you provided. Renting the house out due to the neighborhood being snobby is an excuse. Snobby usually goes hand in hand with affluent and affluent neighborhoods usually have a good resale value, unless you are under water. If they just purchased it, then that might be the case. Or they want to save face.
I personally don't like telling others what my financial means are. Made that mistake in the past and then people feel entitled to make comments that aren't asked for. Depending on where you live and from the taxes, sounds like you live in the midwest. My relatives mostly live in MI and that is what they pay in taxes for a decent area. You should be able to purchase a home. Look into first time homebuyer programs, FHA financing and do your homework. You may have to start off in an area that isn't top on your list.
Lastly, don't make it a competition. I think that was the hardest part when I first purchased my first home. I had some friends that could afford more than me or thought they could. Some were happy for me and others felt sorry for me. I stayed frugal, built equity and upgraded over the years.
A trivial Google turns up plenty of towns in New York where that isn't true. You can't judge the whole state by the NYC tri-state suburban sprawl.
Not that you could find a $176K house there but the mil rate in Southampton is $4.70 per thousand of valuation. That's the lowest mil rate in the state.
I did a quick look at the Capital District. Here's a small house on Zillow 45 miles north of Albany. The mil rate looks to be about $10 per thousand of valuation. $528 in property taxes. Assessed for $46K. Listed at $139K. A $160K house in that town with 100% valuation on the assessment would have sub-$2000 in property taxes.
Mr. Smarty Pants, I said absolutely NOTHING about the NYC tri-state area. I said UPSTATE. Again, none of these houses are $176K with taxes that are $2773 which is exactly what that website claims!
I used to live in the Capital District. And no there is not a house that is $160K with $2000 a year property taxes. That $2000 does NOT include ALL of the property tax bills. There's multiple taxes bills including county, city/town/village, fire, library, and SCHOOL. School taxes are an entirely separate bill and are way more than all the other taxes combined.
And Zillow? Seriously? Their info is right up there with Wiki. There's so many errors on every house I've owned on Zillow. My taxes are more than three times what Zillow lists!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
