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Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 36,981,862 times
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Quote:
Originally Posted by Hollytree
Perhaps we should look at increases in rent vis a vis inflation?
One would have to, if consistent.
Though personally, I'm not sure if inflation (generally CPI) is the best metric to even use here. Perhaps changes in take home wages would be a better metric.
To the OP, you need to compare the price of the house to your gross income as a very general starting point. Is it 2x your income? If so, its likely affordable. Is it 4x? Maybe not unless you have a significant down payment.
For a better answer you would need to provide more information like what you rent could be, what your mortgage would be, income/expenses, etc.
You also need to factor in where you are in life and where you think you'll be in 7-10 years. If you plan on staying put for at least that long then the price today won't matter as much.
The doubling of the standard deduction with the recent tax law changes demolishes the benefit of deducting mortgage interest and state income taxes especially for lower earners.
To the OP, you need to compare the price of the house to your gross income as a very general starting point. Is it 2x your income? If so, its likely affordable. Is it 4x? Maybe not unless you have a significant down payment.
The more standard way of doing this is to compare mortgage, taxes, and insurance against your gross income. For someone fairly young and on an upwards career track, 28% of your gross income is as much as you'd want to take on. If you just compare house to gross income, it doesn't account for high property tax towns or higher interest rates.
I was wondering if you could give me your opinion on this? What would you choose to buy? Thank you!
Lincoln is generally considered a better location than North Providence. However, the NP condo looked to have virtually the cheapest finishes (in & out) available from Home Depot. But, your opinion is the most important.
I was wondering if you could give me your opinion on this? What would you choose to buy? Thank you!
If your budget allows, you may want to consider a single family house as opposed to a condo. Both of the listings you've linked are condos with monthly HOA fees. It should also be noted that the HOA fees at the North Providence condo are nearly double ($252 vs. $135). That's ~$3000 or ~$1600 a year. The HOA fees add up over the years. And I think they can go up.
That said, neither seems to be a bad choice but I'd probably pass on both.
If I was forced to pick one over the other, I'd likely choose the North Providence one despite the higher HOA fees. Why? The Lincoln condo appears to be in a rundown area, you may have trashy neighbors, and it's pretty close to Central Falls. The North Providence condo is close to Mineral Spring Ave - which could be viewed as a positive or a negative. In this case, I'd view it as a positive because you'd have many conveniences nearby but you'd be far enough away for it to not be a distraction. The North Providence condo is on the corner of a high traffic street, but it seems to be located in a solid neighborhood. Not a high end neighborhood, but the side street looks decent. And the proximity to Providence is a major plus.
If your budget allows, you may want to consider a single family house as opposed to a condo. Both of the listings you've linked are condos with monthly HOA fees. It should also be noted that the HOA fees at the North Providence condo are nearly double ($252 vs. $135). That's ~$3000 or ~$1600 a year. The HOA fees add up over the years. And I think they can go up.
That said, neither seems to be a bad choice but I'd probably pass on both.
If I was forced to pick one over the other, I'd likely choose the North Providence one despite the higher HOA fees. Why? The Lincoln condo appears to be in a rundown area, you may have trashy neighbors, and it's pretty close to Central Falls. The North Providence condo is close to Mineral Spring Ave - which could be viewed as a positive or a negative. In this case, I'd view it as a positive because you'd have many conveniences nearby but you'd be far enough away for it to not be a distraction. The North Providence condo is on the corner of a high traffic street, but it seems to be located in a solid neighborhood. Not a high end neighborhood, but the side street looks decent. And the proximity to Providence is a major plus.
One thing to add is I'd generally stay away from those mini-associations like the one in Lincoln, they can be TROUBLE. And yes, that is by Lonsdale which along with Manville is considered one of the problem areas of Lincoln, with seepage coming over from C.F.. The NP location is more comfortable. I also agree that a single family home is preferable, but it's important to note that even the $252 is not THAT high for a condo fee (they can get MUCH worse). That alone would not cause me to hesitate AS LONG as it's a well run association, but in either case be SURE to do your due diligence before buying. You need to check for anticipated repairs/plans for funding them, cash flow, cash reserve...
I'm looking to sell soon, I got a Condo for 93k when the market was low, it's just recently gone back up so it'll be there a while. Keep your eyes open for something you like but you don't need to jump and buy right now.
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