Townhouse in Newcastle Vs SFH in East Renton Highlands (Seattle: foreclosed, HOA)

[seattleliving2014]

My wife really likes the place but I am more concerned if it would be a good financial decision. All in all, I want to know is it worth what I am spending on this townhouse? How easy resale would be after 5-6 years?

[flyingsaucermom]

I am by no means an expert, but I have a few thoughts.

First, why are considering a resale just 5-6 years out? Is moving in just 5 years a real consideration? I've often heard that buying and selling homes is expensive and you can come out at a lost under a time frame of 5 years or so. Maybe Ira or others can expand on this and even add some numerical values to illustrate the point.

Secondly, why does your wife like the townhouse? Will this townhouse grow with your family better than the SFH? Will your wife stay with FTE or will she cut back? Any more kids on the horizon in the next 5 years?

My mom lives in a townhouse community in MInneapolis and there are a number of families that moved in as couples and had children. These families have come together to form a community and are really fighting the urge to move out to the suburbs. They've managed to convince (and fund) a very well-designed and popular playscape right along the river and now they're trying to get a school. Will they be successful? I don't know.

I also live in a condominium community nestled inside Issaquah Highlands. There are many, many townhome and condo communities up here and it's "kid city" over here. We love it. We are likely to stay here until the youngest has completed k-12 education.

Do you think this new townhome community will be good for your young family? I think I might have already asked that question...

As for if it's "worth" it...

That's also probably Ira's domain, but for us it would be extremely easy to sell our unit: They are in high demand. We've been asked numerous times if we are planning on leaving. The only units that haven't sold are the ones that are priced too darn high (non-motivated sellers), which have been few in number.

I would find out more about the builder and the builder's reputation. There are a couple communities up here that have had various issues (one has defective plumbing, another has issues regarding juliette balconies). Two different builders. Our builder has a known reputation for being solid. I didn't know going into it, but I certainly have comfort in the fact now.

You ought to feel comfort in the fact that you will have new construction so there shouldn't be much pressing on the community's HOA... not like us... we're in year 15 and we're starting to see wear and tear and I've seen projected expenses... the roof, siding, painting... it's going to be expensive! Our community hired a management company and I really don't like dealing with them.

Another thing... my husband joined the community association board this year and so I'm learning more and more, but one thing I didn't realize is the issue of insurances. Have a clear understanding of which policy covers what. For example, the way we are organized right now (in order to comply with some state thing), if there is a structural issue caused by a particular unit's negligence (say a water leak that was never fixed and caused damage to four other units -true story!), it is, under current by-law, the HOA's insurance to cover that cost. We are allowed to change this if a certain percentage of owners agree to the change. We would like it so that not everyone is penalized (HOA) because of one specific unit.

Anyway, that's just more stuff to think about.

[mkarch]

This would make me question whether a $580K town house would have good resale in Newcastle:

https://www.redfin.com/WA/Newcastle/...56/home/414592

[seattleliving2014]

Thanks, Everyone for your valuable inputs. We have decided not to go for this townhouse.

[seattleliving2014]

We rethought it and now thinking to go for it. The more we see it the more we like it. I think we will be happy there.

[notfromseattle]

We looked into those town houses. Connor homes, right? The HOA fees are ridiculous. $350 and they will likely be over $400 in 5 years. HOA fees are not tax deductible. There is no parks, community pools, common areas to maintain yet it's so high. I would rethink it if I were you.

[notfromseattle]

Originally Posted by seattleliving2014

Thanks, Everyone for your valuable inputs. We have decided not to go for this townhouse.

if you're flipping back and forth within a 24 hour period, you should think about it more.

[notfromseattle]

Originally Posted by seattleliving2014

We rethought it and now thinking to go for it. The more we see it the more we like it. I think we will be happy there.

Are you sure? Did you just put an offer down on the corner lot? It looks like it's pending now.

[notfromseattle]

Originally Posted by mkarch

This would make me question whether a $580K town house would have good resale in Newcastle:

https://www.redfin.com/WA/Newcastle/...56/home/414592

The HOA fees are also only $23 and not $350.

[mkarch]

Originally Posted by notfromseattle

The HOA fees are also only $23 and not $350.

He's looking at the town homes. I pointed out that you can buy a fairly nice used house in that area for the same price as a new town home. Once the town home is no longer new, it's going to be roughly comparable to much of the other used inventory. Overall, most people buying suburban homes prefer single family houses over town homes. Since OP is/was concerned with resale value, the fact that there are a lot of single family houses in the area that sell for the same or less will likely impact resale.