Thinking of buying a House, or should I wait?

[Trainwreck20]

Originally Posted by 10scoachrick

Here's some food for thought(or is it just gobbledygook ?)...

https://twocents.lifehacker.com/why-...ent-1828059876

There is some merit to that line of thinking, I suppose, but they way I read it, it assumes that you move to another location to get affordable housing (or stay at a more affordable location rather than moving) at the expenses of personal opportunity. If that is the case, then it is an accurate argument in many cases.

However, if you are living in the place that you want to be living and only choosing whether to rent or buy, it makes less sense. I suppose the location difference between downtown Austin and the suburbs may have some effect on your development/earning potential, but not an enormous amount. You may save commute time, which is a fair consideration, but what if the suburbs is where you want to be anyway (schools, family, etc)?

[ZoSFBay]

I'm kinda on fence regarding housing prices going up or down over the next few years but if forced to pick i would say prices will trend up but not sure about doubling in prices. However i do think it's more likely that interest rates will rise before falling.



If you do purchase in the near future while your single you should consider renting one of the spare rooms. An those fund (75-80%) should be store away into a savings account for any unforeseen repairs or upgrades. Also talk with other lenders if your new to this to see if they can offer a better rate than the in-house lender.


Good Luck either way,

[10scoachrick]

Originally Posted by riaelise

Condos should also be considered. My first home was a condo

Certainly a possibility; but consider the HOA fees that often run $160-200/month just for common area maintenance and a few incidentals...often with few amenities.(Thinking Milestone properties in particular)

[Trainwreck20]

Originally Posted by 10scoachrick

Certainly a possibility; but consider the HOA fees that often run $160-200/month just for common area maintenance and a few incidentals...often with few amenities.(Thinking Milestone properties in particular)

The monthly dues aren't the killer - depending on what your condo insurance covers, it could save you almost $100/month in homeowners insurance compared to what you would pay if you were a homeowner. You also don't have to maintain a yard; depending on how the condo association is structured, you may save on your water bills (for watering a yard) as well as waste disposal. The HOA fees may make these individually cheaper than if you owned a home.

However, from the stories I hear from my friends that have owned and/or lived in condos/duplexes/etc, the killer is when there are 'special assessments' - mainly due to having monthly fees that are too low, or to cover random lawsuits due to mismanagement, etc.

[10scoachrick]

Originally Posted by Trainwreck20

The monthly dues aren't the killer - depending on what your condo insurance covers, it could save you almost $100/month in homeowners insurance compared to what you would pay if you were a homeowner. You also don't have to maintain a yard; depending on how the condo association is structured, you may save on your water bills (for watering a yard) as well as waste disposal. The HOA fees may make these individually cheaper than if you owned a home.

However, from the stories I hear from my friends that have owned and/or lived in condos/duplexes/etc, the killer is when there are 'special assessments' - mainly due to having monthly fees that are too low, or to cover random lawsuits due to mismanagement, etc.

Definitely important to get the details. Our condo HOA insurance covers ONLY storm damage to the roof; but we don't even pay $100/month in total for our homeowners' insurance(didn't pay that much on our HOUSE! with great coverage!). These Milestone(for example) places don't have yards to speak of and very little landscaping overall in any of their newer complexes. It's not like the 1/3 acre I used to maintain at the big house. OUR separate additional water bill INCLUDES common area irrigation, so we all pay the same...no free lunch there(Not sure what the "sub meter" water set-up is...since we all have meters, but we seem to pay a 'middle man' for water, even though we are in the city of Austin). Trash and recycling(private company, but we still pay CoA plenty of their "fees") are included in the $200/mo as well as the Master HOA dues covering FIVE pools/playgrounds, tennis courts, etc. Most of the new (Milestone) properties don't have anything like the amenities we enjoy.


That HOA fee is absolute...you can't take a month off from landscape maintenance, for example, like you could in a SFH. I figure there is very little "fluff" in our monthly fee...the PM % is pretty small considering the amount of work "he" has to do when there are problems. We are fortunate to be very strong financially and haven't had any special assessments in the 5+ years we've been here(12 years + for the complex with one small assessment, IIRC)...even extensive landscaping improvements and parking/driveway resealing didn't result in any special fees(I'm on the board; but can't take too much credit for that!).

[Trainwreck20]

Originally Posted by 10scoachrick

That HOA fee is absolute...you can't take a month off from landscape maintenance, for example, like you could in a SFH. I figure there is very little "fluff" in our monthly fee...the PM % is pretty small considering the amount of work "he" has to do when there are problems. We are fortunate to be very strong financially and haven't had any special assessments in the 5+ years we've been here(12 years + for the complex with one small assessment, IIRC)...even extensive landscaping improvements and parking/driveway resealing didn't result in any special fees(I'm on the board; but can't take too much credit for that!).

Heh, if I take a month off from landscaping, my SFH HOA will fine me and I will get a notice from the CoA . But yes, SFH you are generally a little more in control of what costs to spend when.

And I totally agree about the management - a well run HOA for condos should budget for scheduled maintenance and some amount for deductibles in their insurance, etc. Again, just based on stories I have heard (mostly bad ones), the board can be full of idiots or be quite skilled at managing a complex. Or you could end up with crazy residents that sue the HOA/Board all the time for anything/everything/nothing.

[Mntnrydr48]

I agree with the condo statement. Start small, build equity, and work your way up. I have seen many times that that is how people succeed and eventually end up in their forever home. Good luck!

[WhatTheFox]

Originally Posted by Need4Camaro

I moved in around May of this year.

I'm single and right now paying about $1,400 for a 2BR 2BA Apartment with a Garage, the reason I opted for the 2BR is I needed a Garage as a must.

I know things are really moving here as far as homes go and the market here is hot. I found some homes north of Cedar Park for about $220k which sounds pretty good. The houses themselves weren't bad, 3 Bedroom, 2 Bath, 2 Car Garage. I got approved as well... the only issue is the mortgage is $1,900 a MO with everything included (Insurance, Taxes, Interest, Mortgage, HOA).

Adding that to my combined expenses... I can afford it but I will be completely maxed out as in not even $200 in spare change per month... $1,900 a month doesnt sound too bad for metro Austin but its more so my financial situation that concerns me.

I'm not sure if its worth it...

On one side, the house is likely going to double in value within the next 5 - 7 years and I can make alot of money off the equity and more so its the idea of owning a home while I still can is what is attracting me.

What I'm afraid of is waiting a year or more and the homes in good areas becoming completely unaffordable but at the same time I really don't want to live out a maxed budget either.

I know if I wait, its just going to get worse and Im not due for a raise anytime soon either - although I have the potential to increase my income through other means.

Opinions?

You're going through FOMO (Fear Of Missing Out) ...

1. Do you plan on staying put in the area for at least 7 years? If so why? Do you have family in the area? Is Austin the place to be for your profession (actors go to Hollywood etc.)?
2. Do you have at least 5% to put down? If so then would you qualify for FHA loan?
3. Does your expenses (Mortgage - Principal, Interest, Taxes, Insurance, PMI, Loans - auto, student, credit card, other) come under 50% of your gross income?

Answer these questions to yourself and be honest about it.

Whether a house in Austin area will double or triple or crash to half its current value is a question to ask AFTER you've answered the above ones. Basically, ignore the noise and all those "pundits" who claim they know the future

The past 7 years have been GREAT for real estate but that says nothing about the next 7. Also, I keep hearing "but Texas did so well in 2008" ... yeah well, back then $500K homes in Cedar Park were unheard of and now they are not so make what you will of that.