Finding a nice home*** (Tampa: house, buy, school)

[DUNNDFRNT]

Originally Posted by North_Pinellas_Guy

I think this is an excellent post, with the exception of the one part I highlighted. That part is simply completely false. That false statement has been debated here a number of times, with the claimant proven wrong everytime it comes up.

Part of the issue is that you have a lot of people retraining, so even if you have been in the workforce for 15 years if your new degree is not in that field you are looking at sub 40k salaries for entry level which is supposed to be a 22yo out of college, not a 35yo with a family trying to buy a house in a good school district.

[Student66]

Thank you all for your comments. I have considered townhomes, but, due to sharing a wall, the potential for neighbor's noise, and the challenge when it comes to re-sale, I am very hesitant.

[ApolloBeachRetiree]

I really think that your price constraint severely limits what you will find. Have you thought about contacting one or more real estate agents to help with your search?

[Student66]

I am working with an agent. The reality is pretty clear, for those with limited funds, the choices are very limited as well. Find a newer house, which means less worry about a/c, roof, etc., but, costs more, cannot afford. Or, get cheaper property which needs to be fixed up, which means, having the funds to do it. So, for one who makes a very modest income, home or townhome ownership becomes more like a dream than an attainable goal. Look at all the hundreds and hundreds of foreclosures in the TB area, this is pretty well says that a great majority of TB residents are simply not earninging enough to support home ownership...

[ApolloBeachRetiree]

Originally Posted by Student66

I am working with an agent. The reality is pretty clear, for those with limited funds, the choices are very limited as well. Find a newer house, which means less worry about a/c, roof, etc., but, costs more, cannot afford. Or, get cheaper property which needs to be fixed up, which means, having the funds to do it. So, for one who makes a very modest income, home or townhome ownership becomes more like a dream than an attainable goal. Look at all the hundreds and hundreds of foreclosures in the TB area, this is pretty well says that a great majority of TB residents are simply not earning enough to support home ownership...

I appreciate your situation; your agent is really the only one who can advise you on the condition of various listings.

As far as foreclosures go, there are several possibilities:

1. The homeowner bought and used a significant portion of his/her income to pay their monthly mortgage.
2. The homeowner financed the home such that he/she paid only interest. When the market collapsed they were in a negative equity situation.

When you buy a home, you should always spend less than your lender says you can afford. That way you will be less likely to find yourself in an "under-water" situation. The key to financial well being is to always live beneath your means and to save a healthy percentage of your net income for a rainy day and for the future.

I disagree with your statement "a great majority of TB residents are simply not earning enough to support home ownership". Maybe what is happening is that they overbought as I say above.

I am certainly not generalizing but my two points above are what have allowed me to live comfortably with minimal financial worries over the years.

[The Villages Guy]

Originally Posted by Pragmaticus

So funny how everybody thinks that their house is worth so much more than what they would probably get on an open market.........

Your house in your own estimate was 300K last year and now 400K? No where in Tampa Bay area house price went up 25% in one year, FYI

I am going by exact sales comps in our neighborhood. Homes are on the market for less than a week, before getting multiple offers and selling above list price in many instances. I am going by sq footage, age, condition, similar style and pictures of the upgrades inside. I have pretty exact numbers. I doubt you know the details of every single neighborhood in Tampa Bay.

And I did not say I bought AT or my house was estimated AT $300k. Where did you come up with that?

[The Villages Guy]

Originally Posted by Student66

Thank you all for your comments. I have considered townhomes, but, due to sharing a wall, the potential for neighbor's noise, and the challenge when it comes to re-sale, I am very hesitant.

I totally understand that. Been there, done that. However, keep in mind that many single story TH and condos here are built with cement block walls in between. That will greatly reduce the noise we may have experienced in other places.

[The Villages Guy]

Originally Posted by Student66

I am working with an agent. The reality is pretty clear, for those with limited funds, the choices are very limited as well. Find a newer house, which means less worry about a/c, roof, etc., but, costs more, cannot afford. Or, get cheaper property which needs to be fixed up, which means, having the funds to do it. So, for one who makes a very modest income, home or townhome ownership becomes more like a dream than an attainable goal. Look at all the hundreds and hundreds of foreclosures in the TB area, this is pretty well says that a great majority of TB residents are simply not earninging enough to support home ownership...

Don't assume that. I know so many people, some realitives included, who have plenty of income and cash, who have decided to do what they call a strategic default. I call it cheating. One of my relatives has not paid her mortgage in six years or so and is still in the house. A LOT of people have gone that route. Certainly not all, but enough to skew the reality of the data presented.

PLUS, Florida was hit very hard with the downturn and a lot of opportunists were left holding the bag when it went down. With all the overregulation put in place, it is taking forever to get through the foreclosure process. Years to go on that.

[The Villages Guy]

Originally Posted by ApolloBeachRetiree

I appreciate your situation; your agent is really the only one who can advise you on the condition of various listings.

As far as foreclosures go, there are several possibilities:

1. The homeowner bought and used a significant portion of his/her income to pay their monthly mortgage.
2. The homeowner financed the home such that he/she paid only interest. When the market collapsed they were in a negative equity situation.

When you buy a home, you should always spend less than your lender says you can afford. That way you will be less likely to find yourself in an "under-water" situation. The key to financial well being is to always live beneath your means and to save a healthy percentage of your net income for a rainy day and for the future.

I disagree with your statement "a great majority of TB residents are simply not earning enough to support home ownership". Maybe what is happening is that they overbought as I say above.

I am certainly not generalizing but my two points above are what have allowed me to live comfortably with minimal financial worries over the years.

I totally agree with this. The bank told us we could buy a million dollar home. We laughed and said no thanks. We bought based on one person's salary and even at that, we bought low enough to have a comfortable enough cushion. That turned out to be a good decision, because I can no longer work due to health issues and have no income as a result.

[Student66]

Thank you all. Yes, living below one's means is certainly a good idea.