The Rent's Just Too Damn High! (Pittsburgh, York: to buy, income, places to live)

[gortonator]

Originally Posted by Aqua Teen Carl

I'm sensing an overarching theme here: people think the the East End is the only part of Pittsburgh worth living in but won't say it outright.

If that is truly how people feel than there's probably a bigger problem with the city as a whole.

I may live in SH but certainly don't think that. I've visited friends who live in Fox Chapel, Wexford, Mt Lebanon, Mt Washington, Aspinwall, the Flats (ironic reference to another thread), and a few other places I forget, and I could happily live in any of those. In fact some of the houese our friends have are quite spectacular, and they paid roughly the same as us.

It's just we both work in Oakland, and value convenience over commuting and walking/buses to driving to restaurants/bars. Everyove has different priorities, and Pittsburgh seems to be a place where you can affordably find somewhere to live that suits what you are looking for. That's pretty cool in my book.

[WhoIsStanwix?]

Originally Posted by Caladium

What is it about the bridges that make them such a barrier, anyway? The rivers aren't that wide.

For me, at least, it's not the rivers. It's the hills on the banks of the rivers. That, and I utilize the conveniences of the East End quite heavily. I walk/ride my bike to many places for daily tasks and I don't mind paying the price for having many options (think multiple grocers, multiple restaurant districts, multiple retail shops).

I'm not an urban pioneer. I'm not really willing to go to places so that I can build it and the developers will come and fill in the conveniences. I want to live somewhere established, with a strong thriving business district and access to everything I need. I just think that comes with a price. A price that I will pay if I can. Not sure that there is anything wrong with that.

[Kippy]

SCR -- If you buckle down, I think you could easily purchase a new home in the near future. If you were to purchase a $100,000 you would need to come to the table with $5,000 in closing costs and $3,000 as a down-payment, assuming that you secured an FHA loan. Your monthly mortgage payment would be less than $700 per month, assuming 3% down, 2% property tax, .5% PMI, and 5% interest rate.

If you don't have the money to bring to the table, you can roll the closing costs into your mortgage payment. There is no reason to resist carrying a mortgage. Rates are still extraordinarily low and the interest is tax deductible. In fact, you would be better off paying off any high-interest revolving debt or installment loans and carrying a larger mortgage. Just make sure whatever mortgage you get has no pre-payment penalty. Then, since you are resistant to carrying a mortgage, you can work towards paying it off early, if your finances allow.

If you are willing to do research, there are programs that offer closing cost assistance and loans that supposedly have less fees. I do not have any personal experience with these products, so you would have to do your own research:

Common Questions from First-time Homebuyers - HUD

Homeownership Assistance: Pennsylvania - HUD

Why should I choose a PHFA Home loan?

In regard to your budget, it looks like even with your current expenditures, you are squirreling away at least $500 per month. So, you would hit $8,000 in sixteen months.

The itemization of your budget does not mention if you have any credit card debt, and it also does not say how much you pay per month for your health insurance premium.

Many posters have given helpful hints on lowering your monthly budget. One more is to talk to your insurance agent to see if there are any discounts for which you might be eligible. The most common one is that you can save 5 to 10% if you pay your premium in full vs. paying it monthly. In addition some carriers have discounts for auto-pay, e-bills, and/or e-policies (meaning you opt out of receiving paper documents).

In addition, do you declare all of your tips for tax purposes? If you do not declare all your income, then that could cause problems securing a loan. Is this holding you back?

Buying a home for the first time has always been hard, but you have to suck it up and just do it. You should ask your parents what their mortgage payment was when they purchased their house; you might be surprised. While I am sure that their house relatively cheap compared to today's prices, and they probably put a full 20% down, interest rates thirty years ago were much, much higher -- we are talking double digits.

Honestly, if you want to buy a house, you can do it; however, you need to move forward. Save your pennies, find a realtor, and get pre-approved for a loan. I have never used a mortgage broker, but some people opt for that route, especially if they need more guidance or have special situations. Just do it.

[Caladium]

Originally Posted by WhoIsStanwix?

For me, at least, it's not the rivers. It's the hills on the banks of the rivers. That, and I utilize the conveniences of the East End quite heavily. I walk/ride my bike to many places for daily tasks and I don't mind paying the price for having many options (think multiple grocers, multiple restaurant districts, multiple retail shops).

I'm not an urban pioneer. I'm not really willing to go to places so that I can build it and the developers will come and fill in the conveniences. I want to live somewhere established, with a strong thriving business district and access to everything I need. I just think that comes with a price. A price that I will pay if I can. Not sure that there is anything wrong with that.

Reasonable answer. Thanks!

[robrobrob]

A lot transplants move here because the lower cost of living but chose to live in some of our most expensive areas which really defeats the purpose.

Years ago, before I got married, I started looking to buy a place. At the time, I had to live in Shadyside. Basically, my budget was so small that I could really only afford a handful of condos. I had my heart set on one in the Highwood. At the time they were going to less than 50K. Well, next thing you know one comes on the market priced right and gets snatched up by a realtor. The next one that comes on the market was on a better floor and was double the price. A few more places came on the market that I could afford but I didn't like them. So, fast forward a year and half and I am married and we are still renting. At that point we knew we needed to bite the bullet and move to the burbs to afford a house. We were fine with this since we wanted to buy a house and buying a house was more important than living in Shadyside. My point is that at some point you will either accept the neighborhood where you can afford to buy a house or will accept renting. Most people buying their first house can not afford to buy it where they really want to live.

[bluecarebear]

I haven't been online in couple weeks. I came back because I wanted to complain about the recent insane skyrocketing rents all around the city. Looks like I am not the only one noticing.

* I don't want to buy here. My long term goal is to move.

[LIRefugee]

Originally Posted by robrobrob

A lot transplants move here because the lower cost of living but chose to live in some of our most expensive areas which really defeats the purpose.

Believe it or not, the most expensive part of Pittsburgh is still much, much, much cheaper than some of the less expensive but decent parts of the NYC area. The rent I am paying now in Shadyside is less than the rent I was paying in the middle of Long Island over seven years ago. So it may seem to be defeating the purpose, but the difference in the cost of living, and especially housing, is so dramatic that Pittsburgh expensive is still cheaper than NYC cheap.

[Blackbeauty212]

Originally Posted by gortonator

I may live in SH but certainly don't think that. I've visited friends who live in Fox Chapel, Wexford, Mt Lebanon, Mt Washington, Aspinwall, the Flats (ironic reference to another thread), and a few other places I forget, and I could happily live in any of those. In fact some of the houese our friends have are quite spectacular, and they paid roughly the same as us.

It's just we both work in Oakland, and value convenience over commuting and walking/buses to driving to restaurants/bars. Everyove has different priorities, and Pittsburgh seems to be a place where you can affordably find somewhere to live that suits what you are looking for. That's pretty cool in my book.

Where's SH? Is that Squirrel Hill or Stanton Heights... Gotta have more "Clarity" for certain Pittsburghers.

[Aqua Teen Carl]

Yeah but it's not fair to compare Pittsburgh to the most expensive place in the United States. New York and Pittsburgh are not on the same playing field. Pittsburgh should be comparing itself to other Rust Belt cities when it comes to cost because those are our peer cities. New York is not.

[gortonator]

Originally Posted by LIRefugee

Believe it or not, the most expensive part of Pittsburgh is still much, much, much cheaper than some of the less expensive but decent parts of the NYC area. The rent I am paying now in Shadyside is less than the rent I was paying in the middle of Long Island over seven years ago. So it may seem to be defeating the purpose, but the cost of living, and especially housing, is so dramatic that Pittsburgh expensive is still cheaper than NYC cheap.

Ditto - and the house we have in SH would probably have cost twice as much in Seattle (where we could've moved to) in an equivalent area. San Fran - another alternative job location - maybe 3 times. So purpose not defeated at all ...