First time homebuyers... is this possible? Where to look? Townhome vs. House? (Alexandria: apartment, rent) - Northern Virginia - Virginia (VA) - City-Data Forum

SophieDaphne · 02-28-2014, 02:33 PM

Hi everyone,
My boyfriend and I are looking to/thinking about purchasing our first home within the year. Our combined income will probably be around 100k/year and we have about 20k to put down. We were looking at townhouses in Leesburg, and have calculated that our current monthly rent on a two-bedroom apartment is about what we'd pay for a mortgage. There seem to be many townhouses in Leesburg in the 350k price range, but I guess I'm not sure where exactly we should be looking. Are there any areas we should steer clear from? This house caught my eye: 305 FOXRIDGE Dr SOUTHWEST, LEESBURG, VA 20175 | MLS# LO8182130 | Redfin. It's not a townhouse, and I know there are benefits of living in a townhouse, especially for first time homebuyers... in addition, that house isn't updated, but it looks like it has "good bones" and we could do updating later when we have more saved up (he's probably going to be going back to school part-time to get his post-graduate degree, which we've calculated into our budget).

He works in Reston, and I will (probably) be working in Alexandria or Leesburg (depending on which job offer I accept, but the salary will be the same).

We, by no means, need to have a luxurious lifestyle, and plan on just working for the next few years, so we think this is more than doable. We moved here from Long Island, NY and my parents made it on a similar budget put paid 3x as much on their taxes (seriously, on their $400k house, they paid $12k/year) so $4k in taxes seems like a STEAL to me!!!) My car is paid off (as is his) and I have minimal student loans to pay back each month, so that + mortgage, + utilities + other expenses, I think we could definitely afford $2k/month.

What do you guys think? Where do you suggest area-wise for first time homebuyers? Is this actually doable?

Thank you!!

SophieDaphne · 02-28-2014, 02:34 PM

Also, this house is lovely!!

457 FOXRIDGE Dr SOUTHWEST, LEESBURG, VA 20175 | MLS# LO8212653 | Redfin

CaliTerp07 · 02-28-2014, 04:03 PM

First off...I would never, ever buy property with a boyfriend. You don't have to answer any of these questions (they're personal) but what happens if you break up? Are you going to sell the place? Could one buy the other out? Are you going to draw up legal documents about it? Are you going to equally contribute to the mortgage? Is the down payment equally yours? If you sell the place, how will you divide the proceeds (or the net loss, as it could potentially be?) How are you going to do your taxes, since you can't file joint and deduct the mortgage interest together? It's not nearly as straight forward as if you were married. That being said, if you choose to do it anyway...

Crunch numbers. Make sure that if you put 20k down, you still have a safety net of 3-6 months savings (whatever your comfort level is; I tend more towards 6). Make sure you look into what your PMI will cost if you don't put enough down. Make sure that you have an idea of what it costs to do general upkeep of property. I was blown away at how much standard maintenance (new roof, new siding, new fence, deck repair, etc) cost. Don't even begin to think about remodeling! Obviously you don't have to do these things every year, but it is pretty darn expensive. If you have a townhouse, obviously the size of the projects is smaller than in a SFH, but you are probably paying monthly association fees that may or may not be included in your mortgage calculations. They can add up.

Talk to a mortgage broker and get a feel for what they say you can "afford". Realize it's way higher than what you probably can comfortably afford. You're doing this wisely to look at monthly payments rather than purchase price of the house, just make sure that with that monthly payment you factor in all the maintenance your landlord used to be responsible for.

I love owning our house and having the freedom to do whatever I want to it. We were able to finally put up a fence that our dog can't escape (after 3 years of her climbing out of every yard we rented), I can paint walls whatever color I want, and one day (when we have an extra $40k!) we will be able to get a kitchen we desire. I don't for one minute think we're saving money by purchasing instead of renting though. If we had invested our hefty down payment (we put down 20%), we'd probably have made more in the stock market than we have saved on rent.

airjay75 · 02-28-2014, 04:14 PM

I could not agree more with CaliTerp07. That is very sound advice on all fronts, particularly about buying property with someone that is not your spouse. I'm an attorney (although, full disclosure, a tax attorney, not a family law attorney), and the simple fact of the matter is that our legal system for better or worse when it comes to joint ownership of property is very marriage-centric. The legal protections (and also some complications) are just not there when you buy property with someone to whom you aren't married. Things could work out just fine, but if things go bad someday, you could have a very messy situation on your hands. Of course, divorce is messy too, but there are legal protections to ensure assets are divided up equitably. In the least, I wouldn't but property with a non-spouse without a visit to an attorney to make sure you dot all your I's and cross all your T's. Even then, I imagine an attorney will tell you that there are still certain legal risks you're taking.

FCNova · 02-28-2014, 04:33 PM

I agree with the above. Even though I bought one with my girlfriend, who is now my wife and mother of two. Do as I say, not as I do

Candicem · 02-28-2014, 06:36 PM

I agree with the others, but I do want to comment about the neighborhood. I live in Foxridge. I just moved in here last month and so far love it. There are a TON of kids everywhere which is great for us. There has only been 1 neighbor who hasn't been the friendliest and it's very close to one of the houses that you posted. Other than that, the neighborhood is perfect and I could not be happier here.
But, yes, you should wait to buy a home until you are married.

SophieDaphne · 02-28-2014, 07:16 PM

We are actually planning on getting married once I finish school (in three months). But yes, I do understand that caveat as well, and if I didn't think we'd have a long-lasting relationship, it wouldn't even be an option. I realize that that's a huge thing to consider and appreciate you guys bringing that to my immediate attention...

I don't think we'd even do this without being married, now that I think about it... I guess it's just the logical next step.

Anyway, I have some potential opportunities for jobs when I graduate, so I guess we're also going to explore other areas, as well, with Leesburg being high on our list. Realistically we'll probably end up renting until I pay off my loans completely, and he finishes his certification. It's just amazing to know that this is a potential possibility... Thank you all for your help!!

Carlingtonian · 03-01-2014, 03:43 PM

My wife and I bought our condo and then our first house before we were married. Thank goodness we did, because otherwise we'd have bought after the boom and not been able to buy much of anything afterward.

Middlin · 03-02-2014, 11:12 AM

We are actually planning on getting married once I finish school (in three months). But yes, I do understand that caveat as well, and if I didn't think we'd have a long-lasting relationship, it wouldn't even be an option. I realize that that's a huge thing to consider and appreciate you guys bringing that to my immediate attention... I don't think we'd even do this without being married, now that I think about it... I guess it's just the logical next step.

Anyway, I have some potential opportunities for jobs when I graduate, so I guess we're also going to explore other areas, as well, with Leesburg being high on our list. Realistically we'll probably end up renting until I pay off my loans completely, and he finishes his certification. It's just amazing to know that this is a potential possibility... Thank you all for your help!

A lot of change for you and your soon to be husband. New jobs, new marriage, going back to school, etc. While the idea of owning your first house is exciting, my opinion is put it on the back burner. Renting will allow you so much more flexibility in terms of what you want to spend in housing (you could decide to live as cheaply as possible and save more or pay down debt). Nothing is worse than being tied to a location when you have a great opportunity but know it would mean a 2 hr commute. No way would I do Leesburg to Alexandria. I'm also not sure that your calculation of 2k would be entirely accurate. Would you deplete your entire savings? closing costs? having to pay PMI?

Fredesch · 03-02-2014, 07:39 PM

If you are moving from Long Island you may be familiar long commutes. If you move to Leesburg you will have a horrible commute if you worked in Alexandria, just think if everyone on Long Island worked in Manhattan and there were no trains. That is what your commute will be like. There are only a few ways to get to Reston from Leesburg the most straight forward way is the greenway and that would cost your boyfriend at least $9 a day.

You may be able to find a townhouse in Reston for $350k and your boyfriend's commute would be reasonable. The metro has reached Reston and will start service this spring. Loudoun county won't get metro for several years. If you choose to live in Leesburg then take the job in Leesburg as the commute to Alexandria would be very bad. Be aware the job market in Leesburg is tiny so if you lost that job! it is likely you would end up commuting.