can i find a decent house in minneapolis for 150k?

[Mason3000]

Originally Posted by tropolis

no kds, 26, just want my own place, decent square footage.

want it in a growing area so i can make a profit when i move.

something better then a starter home, but not as good as a permanent home at the same time.

garage would be nice as well.

I'd look at Seward, Longfellow & Powderhorn areas of S Mpls along E Lake. All places you can find a house for $150k, all places where there's things to do for young singles & all on the uptick imo. I'd also look on the E side of NE Mpls in areas like Sheriden, Bottineau & Columbia Park. Again, affordable, lot's to do & on the uptick.

[audadvnc]

Single, 26 yo? Why buy a house now?

"...I can make a profit when I move...On the uptick..." from what I've heard (we bought a house in October) your goals don't line up with today's metro area housing market - it's been sliding continuously for 3 years with no bottom in sight. About a third of the homes in town have "underwater" mortgages. Do you really want to risk joining the underwater club?

[Cruz Azul Guy]

Originally Posted by audadvnc

Single, 26 yo? Why buy a house now?

"...I can make a profit when I move...On the uptick..." from what I've heard (we bought a house in October) your goals don't line up with today's metro area housing market - it's been sliding continuously for 3 years with no bottom in sight. About a third of the homes in town have "underwater" mortgages. Do you really want to risk joining the underwater club?

I was in a similar position when I purchased my first home back in 2008. If you're looking to buy a house that is move-in ready and not because you're looking to profit off of sweat equity I would make sure you're planning on staying there for a minimum of 5 years. Paying off some of the equity during that time would probably be helpful too. If you're planning on sticking around and are looking for more of a long-term investment I'd say go ahead and buy. My best guess is that I don't think the market will go a whole lot lower before it stabilizes. Decent houses in decent neighborhoods can be found on the cheap right now, that's for sure.

[tropolis]

i want to buy because it makes sense compared to renting and its cheaper.

[GBCommenter]

Originally Posted by tropolis

i want to buy because it makes sense compared to renting and its cheaper.

I can understand the allure of home ownership, especially in having "your" place and the freedom to do what you wish with the house. There's also tax benefits, which you likely know.

That said, a $150,000 loan with 15% down (so $22,500) and then depending on your credit and interest rate brings a mortgage payment of around $725.00. Don't forget taxes and insurance goes on top of that payment so your monthly payment now becomes around $900.00. Now, don't forget you pay all your own utilities including garbage, water, and sewer. Finally, as you likely know - all repairs are on your dime.

I'm not trying to talk down to you, but I do ask the question if home-ownership is truly cheaper than renting. I'd also ask if the money you will spend is best invested in a house or in another investment. Could you live in an apartment and save or otherwise invest the difference?

As others have spoken to, the increase in values has not been the case in the Minneapolis market thus far. Even if the market is stabilizing (and it's questionable if it is), I don't suspect there will be any significant recovery or increase in value. Finally, don't forget even if it increased in value on paper - you still have to sell it. I suspect you will have plenty of competition for a sale given there's still plenty of bank-owned properties.

This is all not to say there isn't opportunity for profit (especially if you're willing to contribute sweat equity), but I urge you to tread carefully. Definitely be looking for at least a 5 year minimum investment.

[tropolis]

how much space do you think id need for just one person, if i rent.

[GBCommenter]

Depends a lot on what you want in a place and what you have for belongings. When I was looking at apartments somewhat recently, I saw a range from about 550 sq.ft to around 800. 550 is small - pretty much a living room, small kitchen, relatively small bedroom (not much more than a double/full size bed if you don't want the bed to be the whole room), and of course a bathroom (small one). I found that to be too small. However, it would probably be an Ikea dream.

I ended up with a 2BR. Main bedroom fits my bed (which I'll admit is king size) and TV. Other bedroom is for "office". I have a cozy living room and area for dining room table. That suits me for the moment, though not much space if I wanted anything like a "project" room, guest room, etc. This place is about 750 sq.ft.