Bellingham - Should I buy a house? (Vancouver: real estate, apartments)

[snazzlemom]

My family and I will be moving to Bellingham from Boston, MA in Sep. We visited the city a month ago and think and hope we will like it there. It will definitely be very different from Boston but that's what we're looking for... change. Boston is an AMAZING city, but have outgrown it and are looking for a different lifestyle. However, since we have two younger children (under the age of 3) and know that we will be staying in Bellingham for at least 2 years (due to work), we wonder if it's a good idea to just buy a house right off the bat instead of rent because 1. the housing prices have dropped and 2. moving is difficult with two kids.

We are looking for SAFE (our first priority), family-oriented neighborhoods with homes with a view, with things to do with kids, and a good preschool and elementary near by. We were able to visit a few properties during our short 2 day stay in Bellingham and I liked Edgemoor and Barkley (if I remember correctly). I don't like large isolated homes (no matter how beautiful) lost in lots of land. Not that there's anything wrong with that. It's just not my taste or lifestyle. Mind you, I have always lived in apartments and moving to a house would be a big change in itself. I prefer a nice new house with a decent-sized backyard in a safe, family-friendly neighborhood that I can walk/jog around in with the kids and feel safe.

Sooooo, after having said all of that, I am wondering whether you think it would be wise to buy (our budget is around $800k) given that if we don't like it, we would move in two years.

And also, do you have any recommendations for neighborhoods and great preschools?

Any helpful advice will be much appreciated and make our move that much better! Thanks in advance!!

[yukiko11]

You can certainly afford to live in Bellingham, however buying a home to live in for only two years is really a lot of expense. If you add the loss of interest on your down payment funds, the payment of interest on the mortgage, the cost of the mortgage and closing costs, and your taxes, insurance and maintenance over such a short time, it adds up. Also I would recommend that you experience a winter in WA before making a firm choice. For some, the constant dampness and darkness are deal killers. I originally moved from Southern CA to about 30 miles south of Bellingham. The biggest shock was that a great deal of time is spent indoors due to the weather, you even have to have your pets indoors.
Well, that is one person's opinion. In any case, I hope you enjoy your move and find the right place for you and your family.

[snazzlemom]

Thanks for your input Yukiko! I am coming from Boston, so although it's fairly sunny here over the winters, it is too cold and windy to go out with kids in my opinion. But I wonder if with all the expenses, if it is still worth buying if the market goes up in 2 years. It's hard to predict but what goes down must also come up. Life is sinusoidal afterall.

[Idunn]

It would probably be a mistake to buy. By some reports the decline in real estate values, and general discombobulation, will not be sorted out until 2015. This is not conventional wisdom, but you might consider the possibility and look into it further. Put another way, the house you buy in Bellingham today may be worth significantly less in two years. Not to mention it may be even harder to sell such properties. Of course I might be wrong in such an assessment, and you might even brake even or make money. In any event, something not to be taken lightly.

Another consideration is the weather. In having only briefly visited from a region which enjoys distinctly different weather, you cannot fully appreciate now how you will feel about it. Despite the beauty of western Washington, many people that otherwise felt they would like some rain, etc. in fact endeavor to leave in relatively short order. Read some of the threads within this forum and you will see this no exaggeration. It isn't particularly cold, or that by some myths the sun never appears in winter, but that in general just so overcast and gloomy. Some love it, but you have no way yet of knowing if you, and the rest of the family, one of them. Despite your intentions now, in less than two years there is the possibility you'll be thinking of ways in which you might leave sooner. Maybe not. But being tied to sluggish real estate wouldn't help that equation much.

In the brief time I visited the Bellingham region, I liked it. You may as well, and never leave. Due diligence suggests one consider the flip side.

[rkcarguy]

I have to dissagree. If you buy something in the $800K range you will loose money or have a hard time selling it. Buying in the lower end of the market under $400K, there isn't much to lose. This place is all about retaining property values, not providing everyone with housing. With Olympics headed our way just across the border we have some more interesting times coming....
The people coming here are mostly old and have cash, interest rates and jobs don't matter. Personally I expect to see a pretty even housing cost from Socal to Vancouver BC by the time everything plays out.

[Baldy]

I agree with RK.

But buying a house for 2 years is silly unless you want to hang onto it and rent it to the endless stream of transients.

If Boston is too boring, Bellingham will be Hicksville. Look at a Google map and know how small this city really is.

The weather? Compared to what? Man, I swear our ancestors would hang us for being sissies complaining about too hot, too cold, too wet, too cloudy, too sunny....it wasn't long ago when my ancestors built their log cabins all over this North America.

Tell you what....the weather here is horrible. Do not move here; do not even stop for gas.

[snazzlemom]

Thanks Idunn and rkcarguy! Your feedback was very helpful.

I understand that we may lose money, but isn't rent just throwing out money as well? If we rent for two years, (we've found a place for $2000/mo), that would be $48,000 down the drain for the MINIMUM two year time frame we would be staying there. Also, living comfortably in a nice home for 2 years is something to think about too. After all, we make money to live, not live to make money. Also, paying a mortgage would be tax deductable, right? Although we already have a place we are paying a mortgage on here in Boston, but will be renting it out. Does anyone know what the tax implications are?

Originally Posted by Baldy

If Boston is too boring, Bellingham will be Hicksville. Look at a Google map and know how small this city really is.

The weather? Compared to what? Man, I swear our ancestors would hang us for being sissies complaining about too hot, too cold, too wet, too cloudy, too sunny....it wasn't long ago when my ancestors built their log cabins all over this North America.

Tell you what....the weather here is horrible. Do not move here; do not even stop for gas.

Baldy- Perhaps you should read what I wrote before idly commenting. I don't recall ever saying Boston was boring, it's absolutely far from it.
As for the weather, I never mentioned a thing about the weather. Once you've lived in the Northeast, and walked and biked through blizzards and wind, not much phases you.
I think your ancestors would be frowning down upon you right now because of how distasteful and uninviting your comments were!

[snazzlemom]

Anyone else have any opinions/thoughts?

[yukiko11]

Originally Posted by snazzlemom

Thanks for your input Yukiko! I am coming from Boston, so although it's fairly sunny here over the winters, it is too cold and windy to go out with kids in my opinion. But I wonder if with all the expenses, if it is still worth buying if the market goes up in 2 years. It's hard to predict but what goes down must also come up. Life is sinusoidal afterall.

In my opinion, our economy today is something that has never been experienced before. Yes it has been compared with a lot of things in the past, but not exactly. I am an accountant, and maybe have a little more info/ experience than the average person. Although, I saw the decline coming and protected my assets by withdrawing from the stock market early enough to avoid loosing anything, I don't have a clue what is coming next. Fortunately, I am of an age where the real estate I invest in doesn't have to increase in value, because I don't have a long future ahead of me or a related heir. As long as you don't have to depend on the value going up go ahead and buy if it makes you happy, but one thing I can tell you for sure. My experience has been that real estate takes quite a bit of time to sell in this state even under normal circumstances so just be cautious not to trap yourself into something that could hurt you in the future.

[rkcarguy]

You are going to pay realtor fees and excise taxes on your transactions, so it all comes down to the math and ultimately your purchase price. If you buy a $350K home your seller pays approx $18,000 in commission, excise taxes, and transfer fee's. If this is rolled into the purchase price is obviously a who knows situation. If you sell in two years, you will incur the same fee's again, but may see an increase in your property value to offset the costs.
Renting can be frustrating, if values were to trend upwards again your landlord may sell and boot you out. Some are just stupid. Ours griped because I had too many cars parked in the driveway and I didn't weed or mow the lawn that often. Well I did it after their complaints, then the place assessed at more money and the rent went up-go figure.
I think you'll find the weather here more wet, but less severe overall compared to Boston.
While your mortgage interest will be tax deductible, your rented home in Boston will count as income and counter the savings, but you will also be able to depreciate the rental home and recover some of that as well.