Bellingham, the ugly truth.... (foreclosure, to rent, insurance)

[Redline]

I think your expectations of the "American Dream" are only achievable in the smaller towns now. You need to move away from I-5 and any other major highways if you want to own a $200k house outright with minimal taxes and have your wife stay home and raise your kids. If anything, I think most people who bought their <$200k house 5 years ago are now laughing all the way to the bank when they get it appraised at 3-4x the value. I'm sure Idaho is nice but you'd have to pay me twice as much to move out there and even then I doubt I would.

[StealthRabbit]

Originally Posted by Redline

... I think most people who bought their <$200k house 5 years ago are now laughing all the way to the bank when they get it appraised at 3-4x the value. ....

not really... a$200k home that is appraised at $800k @ $15 per thousand would set you back $12,000/yr or $1,000 / month or $30/ day, just for taxes... then there is the increased insurance... I really just want to keep my head dry, not break the bank on taxes and other fixed expenses.

couple that with getting laid off after 32 yrs w/ one company, but 6wks before retirement (without medical... and extra $1000/month). It really isn't all that much fun on no income.

but... the bright side bargains are coming, and I've cashed out of my income properties and sitting on cash to pick up some deals. I have a friend that buys ~ 10 repos / week in Western WA. He does ok, but you need to be careful (meth houses). So even now there are deals available, keep your eyes open. We did the single income thing for 25 yrs, and still live on the same $40/ month spending money, and drive a $35 car that gets 50 mpg (on grease, No OPEC or dinosaurs required), still buy my tires for $5 ea at the junk yard, but... the tax man says the homeschool built home is worth $800k, and has offered to buy it . So... adios to the nice house, hello Mobile Home (where it all started at age 16)... Nothing new under the sun.

[Redline]

Well, losing your job and having no income will suck no matter what. But you made $600k! You'd be singing a different tune if you were house-rich and career-rich instead of being house-rich and career-poor (which seems to be the motivation behind this thread).

Why buy a mobile home though? Are those even an investment?

[rkcarguy]

I not saying Bellingham is bad for EVERYONE. Sure if you are from out of state, have say $500,000+ to work with, you can come here like everyone else,get the new house, nice big gas guzzling SUV with chrome wheels, and live the dream life. If you're starting your family and work for a living, the odds here are stacked against you. Sure you can go to Birch bay or out of town a ways, but the jobs are in Bellingham=commute=lots of gas. My point is that since 2001, home prices have risen about 86% while average income went up only 9%.....enough said

[CoastieTX]

I just moved to Bellingham a month or so ago. I knew it was going to be pricey here, but I underestimated how much so. A cracker-box, tract home with no yard and 1500 square feet is going to cost at least $300K, and that's on the outer edges of town. A well-maintained older home in one of the neat, older neighborhoods will go for $325K to $350K, and these are tiny with no garage.

Ridiculous doesn't even come close to describing this place.

I could maybe understand all of this if Bellingham had San Diego weather and San Diego jobs, but it doesn't. Can I buy a $325K house? Yes, I've been very responsible saving my money before moving here and can put enough down to have a reasonable mortgage payment. But I have reservations about buying because the housing market is so over-valued here - the market seems to have crested and the prices seem to be slowing falling and there are is an abundance of homes for sale. 70% of the new condos remain vacant.

My fear is I'm going to pay top dollar for a house if I buy now, then will transfer out of here and take a loss on the house after trying for months to sell it. It actually seems like a good idea to continue renting right now and not rush into buying anything.

I guess what I'm saying is that the little influx of Californians moving here has completely over-valued the place, and now everybody wants to sell their home for double its worth. Bellingham is a neat town, but the weather for the most part sucks and the local economy can't support these housing prices. I can't believe I'm saying this, but I regret moving here right now.

I am hoping that others who are moving to this area come to their senses and refuse to pay the ridiculous prices people are asking for these homes. I'm not going to pay what they're asking, and if I have to, will rent and just pursue a transfer out of here.

This place certainly isn't all it's cracked up to be...

[StealthRabbit]

Originally Posted by Redline

...But you made $600k! ...Why buy a mobile home though? Are those even an investment?

NO, don't think so....(making $600k) only if I SOLD my home (which I had no intention of doing, since I'm not inclined to build yet another one...)... I just need a place to lay my head, not pay astronomical taxes on. I was quite comfortable in my home, just that the tax assessor will be evicting us from our own place, through no fault of our own.

I see no point in considering a personal home an investment that must grow in value. Inflation just forces a higher $$ for housing expense, you still need to live somewhere, and eventually we all get to 'retirement' / fixed income. Taxes could be reasonable without forcing evictions. I've 'played the game' by keeping $$ invested in commercial rental props, but gonna be a tough go for anyone starting now. The falicy of these escalated values will really hit hard when the interest rates AND taxes, AND utilities AND insurance spike. (I note the 'gulf' residents premiums more than tripled, similar to what happened to ALL commercial props(nationwide) AFTER Sept 11th. (now they also specifically exclude much more...). Who would have thought it would have been such a good time to BUY insurance stocks (except Warren Buffet) What if the PNW would have a major earthquake, volcano or west side wildfire, similar to Yacolt burn? (all are expensive possibilities...)

Mobile homes are definately not good investments (but the only thing us 'po-folk' can qualify for.)

I have a special strategy for buying them on rural acreages, but they are getting outta site, as folks buy at a premium and bulldoze them for their McMansions. progress marches on... crunch

[Redline]

Coastie: I think if you are planning on staying here for a while, say 5-10+ yrs then I would buy. The housing market will definitely go through its ups and downs but for the long haul it always goes up. I'm not sure how the Bellingham housing market is but down here closer to Seattle and Bellevue we have companies like Microsoft, Boeing, Amazon and now Google bringing in high-paying jobs that tend to drive prices up. Me, personally, I just hate renting. Not a single cent will go towards equity. I guess you could invest the difference you'd be saving between renting and paying a mortgage/down payment and potentially make out better. With all the recent foreclosures it is probably even harder to get approved for a loan these days too with less than perfect credit.

Having said that I wouldn't be surprised if our own house value dips in the next yr or two but it will likely just hover around the same price or maybe go up a more modest 5% rather than somewhere in the 10-15% range like it has been the past 2-3 yrs. But then again you never know. If you look at how ridiculous the real estate market is in California, NY, Boston and even other parts of the world like London then who knows what will happen out here.

[BanteringBear]

I am so sick and tired of you calling yourself "po-folk" janb. No poor folks have investment properties. To be poor is to barely have the money to eat, or a place to lay your head at night. You whine and complain about taxes when you could liquidate everything you own and rent and live like a king. I have been reading your posts and I find it sickening. Yeah, you're poor alright, licking your chops waiting for the "deals" to come down the pipeline. You know, the "deals" which people lost due to financial pain, something you are not recently (if ever) familiar with. Cut the crap.

[StealthRabbit]

Originally Posted by BanteringBear

I am so sick and tired of you calling yourself "po-folk" ...Cut the crap.

try applying for a loan with ZERO income...

[Evlevo]

Social Security would be at least $2,000 - $3,000 a month (as a couple, 1/2 if single).

If you are not old enough for SS, then you should be young enough to still work (or qualify for SS anyway, as disability)

If you are living off of savings, you would still have interest income.

If you are homeless and pennyless, how are you able to post on an internet site.

I'm just trying to make sense of why you are in such a bind.