First-Time-Buyer in San Bernardino County- Wisdom (Los Angeles, San Diego: sales, real estate, to rent)

[LivingLikeAGradStudent]

Newly married, 26, working in Rialto and Fontana? Rent. Don't leap into buying a house because you think you're supposed to. The price fundamentals are out of whack and will be for quite some time. Look in Rancho Cucamonga and you'll be fine.

[KabawL]

Originally Posted by LivingLikeAGradStudent

Newly married, 26, working in Rialto and Fontana? Rent. Don't leap into buying a house because you think you're supposed to. The price fundamentals are out of whack and will be for quite some time. Look in Rancho Cucamonga and you'll be fine.

Rancho Cucamonga is expensive. "Supposed to", Whats that mean? I been with my wife seven years before we finally got married last year in July. Its time to get a house since we have been living with my parents for a while now, which I appreciate. I dont want to throw my money away renting. After reading numerous stories and post, nobody knows when to buy a home.

[ewvdt]

Try and avoid association fees, Mello Roos, condos and the like.
Live close to where you work.
Find a fixer in a good, established area (remember location!).
Get a good fixed rate mortgage.
Pay your credit card each month in full.
Don't bite off more than you can chew.
Save some money.

It worked for me (retired early) and it can work for you.

Good luck and enjoy raising your family!

Originally Posted by KabawL

A little about myself, Born and raised in Los Angeles. My parents moved East to Highland in San Bernardino County for a better future. Houses were cheaper and there were too many gangs/problems trying to raise 4 kids in South Los Angeles. Once we relocated, I definitely seen the difference in people, location, and problems and didnt feel claustrophobic anymore. It was the early 1990's and people in San Bernardino County were much friendlier, a good change. A major problem noticed in the biggest county of the United States was it's meth problem. Fast forwarding to 2008, I seen the change once again. People arent so friendly anymore, and Im seeing more and more people and gangs once again are running amok.

I finished growing up having moved out here when I was 16 and am now 26yrs old and married looking to purchase my first home with my wife. The maximum limit of money were willing to spend our home is 225,000.and we have great credit (high 700's). I work in Fontana, and she works in Rialto.

I am thinking of moving to Hesperia because its cheaper and the land seems more worth the dollar. The tax rate is lower compared with cities down the pass. I recently drove out there the pass two weeks and noticed alot of new communities being built south of Main st as well as new stores sprounting up. I did not go too far into the heart of Hesperia not driving further than Topaz from the 15 and down escondido not further than East down Cedar. My question is... Which neighborhoods are good neighberhoods? Which areas do I avoid? Drive down the pass? etc.

Another city I was looking into was Beaumont (Riverside County). The Sundance community looks great and the city has a proposed mall similar to that of Rancho Cucamonga's Victoria Gardens. I drove out there a month ago and was bothered by the high tax rate and association fee which drove the payment up an extra 300-400 a month. Ridiculous! Plus, you dont even get a yard. My question is... If I wait it out a little more, do you think these new homes prices will drop even further than they have?

I also drove out to San Jacinto and Hemet. The properties I seen were okay but felt like our money could purchase us something we more deserved. Houses were not taken care of by previous tenants.

San Bernardino and Highland have there certain areas but making this decision is stressful and hard.

All in all, I know this house we choose is our first and Im looking to capitalize on this opportunity given the prices dropped just in time while looking for a house. I smell profit and am researching my decision in no rush.

I am asking for your wisdom, your first time buyer stories. Maybe there are programs that assist with downpayments, good communities, bad communities, good deals, bad deals, things I should know about, etc. Thanks in Advance!

[Unkllars]

KabawL, you don't need 10% down, you don't need to sit around and wait, you don't need to be fearful if you meet the requirements. What you need to ask yourself is how long you will live there? The magic number for most of California is 5. For sellers, if they've lived in their home 5 years or more, they can sell for profit. If a buyer buys now and lives/owns (in case of renting out) the house for 5 years or more, he/she will come out fine.
New homes are cooperating with Realtors right now since they have so much inventory, and we have been able to negotiate some great deals with them. I just negotiated down $30,000 on a condo here on Saturday, so they are willing to negotiate. Let me ask you a few questions to help you refine your search. Where do you work and would you want to commute? What type of nightlife do you enjoy? Are you single and/or are open to have a roommate to pay off your mortgage even faster? How much down could you come up with and want to spend on a house? Have you been prequalified by a lender? These are some things that address your needs. Let me know if I could be of some assistance.

[jvazjr]

Kawbal,

Don't listen to the realtors telling you not to wait. You are doing the right thing. Prices in the Inland Empire are and will continue to drop for quite a while. Do not buy anything in a declining market. Especially the IE that is currently getting hammered. There is no way you will come out ahead in 5 years from now. If anything, you might risk owing more than its worth. No harm in waiting to see where prices are at in about 6 months to 1 year. Dont worry about interest rates going up. I doubt we will see them in the teens anytime soon. Remember, you can always refi a rate but overpaying for a home is permanent.

[Unkllars]

Listen to your feelings and get unbiased opinions. The best way is to inform yourself and research just like you're doing. We are waiting for the economic stimulus package to break open the market a little more to areas that can't afford or qualify for loans. It will be great in high cost areas, which will boost the market when nationwide housing affordability figures increase. Your doing the right thing. The difference of rates do make a difference in the long run, so be cogniscent of that. The difference of 1% in rates could make a difference in a few years (5-7yrs), I did the math. Don't buy or wait off of what others tell you. If you have researched and feel right about it, you and your wife will be happy starting your family and life in your own home. Just like your marriage, you didn't rush yet you also didn't let her pass you by. Be smart. Then mow the lawn, paint the kitchen, put a new faucent in the 1/2 bath, and enjoy!! That is what homeownership is all about and don't let anyone take that away from you if you are ready! Don't do it if you're not ready.

[jvazjr]

Kawbal

A realtor does not have a unbiased opinion. they make a living off the sale so its a biased opinion. Of course they will tell you now is a good time to buy. Do your research on your own, follow the trends. So far the facts point to a further decline. Buy only under the right cricumnstances. Its not fun being a home owner when you dont habe much left over for retirements, kids college or vacations.

[LivingLikeAGradStudent]

This argument has become circular, here and elsewhere: The odds of a mid-20s couple buying the type of house, in 2008 in the Inland Empire, that will appreciate in five years, minus costs on the sale and purchase, let alone the maintenance and lack of access to any down payment money for that time, are quite small. But for the agent to say others talking about it are depriving you of doing so is obscene.

[Unkllars]

Livinglikeagradstudent is completely right, as is jvazjr, with the quantifiable figures. You won't have much appreciation in 5 years. It's just funny because my 25 yr old cousin bought 9 months ago and has watched her home value depreciate. You wanna know what though? She glows when you ask her about it. She installed the tile and hardwood herself, and had new carpet installed. She loves having people over, touring her townhome, and she enjoys deducting it on her taxes. She could afford the payments and got sick of her rent increasing, so it was the right time for her.
People will always be buying and selling. My parents could've listened to the news and not bought right before the 80s recession with rates creeping near 20%. They had three kids and needed a larger place since I was on the way. But they bought it for a steep $165,000. Now it is worth around $700,000 even with the drop in the market. Could they have bought it for less? Of course, but they new that they would be there for a while (not 25 years, but they did). Who would pass their home more than quadrupling? If they sold in 2005 it would've been $820,000, but they're not crying about it. They raised a family, shared memories, and have had 1000s of people drop by.
I don't mean to discredit the previous posts one bit. I just want to shed light on the positives of homeownership. I commend KabawL for researching so much as that is the key to this market. Keep it up. Buy soon, or even feel free to wait 3 years if that's what it takes. The market will be better by then. Just do your homework (no pun intended) and buy when you are ready to buy. If it does happen to be this year, take advantage of the economic stimulus package for FHA and GSE loans. Good luck

[McHopper]

My advice to you is to do what we are doing, hard as it is.

We had a beautiful home in Redlands (love Redlands!) that we purchased in Dec 04 at close to the top of the market. We remodeled it top to bottom and sold it (or shall I say ESCAPED IT) when we saw the market crumbling around us in Nov 07. Never have I felt so lucky. As it was, we made NO money but lost only a couple thousand after the remodeling costs. Now that house has declined further in value in the last 3 mos.
We are renting a nice new home in Yucaipa waiting for the market to decline further before jumping in once more.
I too am focusing on the known good areas, with Rancho Cucamonga being my first, but not only choice.
With every passing day, I am seeing homes dipping into the low 300k range in RC. I continue to monitor prices because I too feel that they are still waay overpriced.
I am picky and refuse to live in high crime areas, so I would also consider Redlands, Loma Linda, Grand Terrace, Claremont, Alta Loma and maybe Upland.
The Yucaipa to Fontana commute for my husband is a do-able 25min., but Yucaipa is just TOO COLD in the winter for me!!
Don't give in to the lure of cheap prices only to feel like a prisoner in your new home because you don't dare walk your own neighborhood!
I just checked the MRMLS and found that Grand Terrace has new construction- large detached townhomes for mid 200k range. Grand Terrace is convenient to many business centers and all the freeways while being one of the best run low crime cities in the IE. Good Luck