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I posted a thread a few weeks back about buying a home in a small town/rural area. I work in a fairly isolated city in extreme northeast TN that is in decline, but have a pretty good job by local standards. However, homes in this area sell slowly and have sticky prices, often sitting months on the market before seeing any price cut or selling. The market picked up a bit in March, but has been extremely slow going back to last summer.
A condo my aunt bought in 1994 is back on the market for $5,000 less than she paid for it then. The complex is in good shape and there is nothing obviously amiss with it. Not much is selling here. Another problem is that the housing stock is older, dated, and often in need of significant updating. I am not expecting it to be HGTV ready, but do not want to basically have to start over with something with original 70s fixtures.
Also, if I lost my current job, there's no way I could make what I do now elsewhere in the area. My employer could possibly be going through a merger, and we'd be the party likely on the receiving end of consolidation, so there's that fear as well. I should know something on that by the end of the summer.
I spent most of the last five years in Indiana and Iowa and moved back to TN last summer. I've been staying with my parents since, but the shaky local economy, slow moving market, and poor quality housing stock really give me pause in buying here. I don't want to rent, as there is very little quality rental stock and most everything is, again, old and dated. Condos and townhomes for sale are generally much nicer than what is available to rent here.
The largest metro in east TN is about 90 miles from my office. It is mostly rural interstate. I've been looking at housing in that area, and it's generally more updated, newer, and no more expensive than where I am now. Cost of living is a toss-up between the two areas, but the average weekly local wage here is only about 2/3 of what it is in Knoxville. After living in bigger cities, the area I'm in now is extremely limited in regard to shopping, dating, sports, and even things like gyms (my city of 50,000 has one quality gym remaining, and it is more crowded in the evenings than any gym I went to in Indianapolis). As it stands now, I'm rarely even in this area on the weekends, unless the weather is bad or I am on call.
I really don't see myself in this area in five years or so - it is simply too small, isolated, and weak economically. I would much rather live in Knoxville than where I am now - the economy is better, the location is more convenient (easy access to I-75 north/south to Atlanta/Kentucky and I-40 to Nashville), and there is more to do. If I needed to sell in Knoxville down the road, it would be much easier than trying to sell here. If I bought in Knoxville, I would try to find a job there down the road. I've lived in six states since 2010, and want my next move to be somewhere I can reasonably stay for five years or so.
My parents would be fine with me staying some here during the week, so I wouldn't be doing the commute every day. I drive 20,000 - 25,000 miles a year, so I'm used to fairly long haul driving.
Has anyone done anything like this, buying a residence fairly far away from a job site?
Unless you're married, and there is a reason for your family to be in this "distant from your work" location you speak of, I see no real reason to buy a house there - especially in light of your parents being okay with you living with them.
It sounds like a lot of things in your life have been - and continue to be - up in the air right now. I don't know that home ownership would be in your best interest at this time.
My house is 75 miles from my office. I quit my job and sold my house in North Carolina to move back to be near family. So, I am unwilling to move closer to work. I listen to audiobooks. The miles/wear on my car is the only thing that bothers me. I can work from home when the weather is really bad.
When I first moved back, I drove 90 miles each way.
Unless you're married, and there is a reason for your family to be in this "distant from your work" location you speak of, I see no real reason to buy a house there - especially in light of your parents being okay with you living with them.
It sounds like a lot of things in your life have been - and continue to be - up in the air right now. I don't know that home ownership would be in your best interest at this time.
None of this is probably happening before next year. News was supposed to come faster on the merger front, but that hasn't happened. Even if there are job cuts, I doubt it will happen in short order.
My parents will be 60 this year and will probably retire in five years or so. They don't seem too eager about moving elsewhere, but I don't think they are completely closed to it. Their parents are in their 80s and are in declining themselves.
Also, if I lost my current job, there's no way I could make what I do now elsewhere in the area. My employer could possibly be going through a merger, and we'd be the party likely on the receiving end of consolidation, so there's that fear as well. I should know something on that by the end of the summer.
Based mostly on this but also on info from the rest of this post and others you've written, I'd say that your smartest move right now is to sit tight and, more importantly, LIVE LIKE YOU ARE ALREADY MAKING LESS MONEY. Every dime that you don't spend should go into savings. This would let you save up a bigger down payment/nest egg to help you weather the possible job loss coming up until you find another one, that will pay you adequately, in an area where you actually want to live.
You simply aren't in a position to buy right now, and I think you would be happier if you could admit that to yourself. Your job is precarious for at least the next four to five months, you don't like any of the houses in that area anyway, and you're talking about making a ridiculously long commute on funds that are already not sufficient to see you through a job loss. That screams desperation, not clear and rational thinking.
In answer to the main thrust of your OP, my husband and I would never consider more than 45 minutes for a commute--and that's the inclement-weather time. What happens when you need to take those winding rural interstate roads, which I'm sure are plowed with the frequency and efficiency that I've seen in other Appalachian areas, after a snowstorm? What if you're trying to go from Knoxville to the place where you're actually working? Commutes should never be calculated solely in good weather or light traffic.
As it stands now, I'm rarely even in this area on the weekends, unless the weather is bad or I am on call.
I really don't see myself in this area in five years or so - it is simply too small, isolated, and weak economically. I would much rather live in Knoxville than where I am now - the economy is better, the location is more convenient (easy access to I-75 north/south to Atlanta/Kentucky and I-40 to Nashville), and there is more to do. If I needed to sell in Knoxville down the road, it would be much easier than trying to sell here. If I bought in Knoxville, I would try to find a job there down the road. I've lived in six states since 2010, and want my next move to be somewhere I can reasonably stay for five years or so.
My parents would be fine with me staying some here during the week, so I wouldn't be doing the commute every day. I drive 20,000 - 25,000 miles a year, so I'm used to fairly long haul driving.
Has anyone done anything like this, buying a residence fairly far away from a job site?
I would caution you that if you plan to live in your condo for "five years or so", it is likely that you will not build enough equity in the home to walk away with money in your pocket when you sell it. If you can commit to living in Knoxville for 10 years, it might be worth it.
I can understand wanting to live independently of your parents, and in an area that is a little more vibrant.
Perhaps a compromise is to rent in Knoxville, while staying with your parents a few nights during the work week until you can find a job in Knoxville. Maybe even rent a room to cut down on your cost, and try commuting for 6 months to see if you think it's sustainable before committing to buying a place.
How much were you planning to put down? And, what kind of work do you do? The first thing the lender will look at, does it make sense? How far are we talking? Either I missed it (lack of caffeine) or it wasn't there. I know lenders that would kill a major commute, but we had an employee that lived in the DC area and commuted to NYC during the week. The thing you need to watch for with lenders would be government loans and first time buyer programs with minimum down.
None of this is probably happening before next year. News was supposed to come faster on the merger front, but that hasn't happened. Even if there are job cuts, I doubt it will happen in short order.
My parents will be 60 this year and will probably retire in five years or so. They don't seem too eager about moving elsewhere, but I don't think they are completely closed to it. Their parents are in their 80s and are in declining themselves.
To be honest, it sounds to me like you're pretty uncertain about all this - which is fine, assuming you're just "thinking out loud."
Keep a couple things in mind:
1. It takes a heckuva lot of up-front money to buy a house. Lenders can roll that into the mortgage loan to mask it, but it's still there. Closing costs will likely run you at least $3,000, plus you need a down-payment. If you don't have a 20% down-payment, you'll get hit with extra fees and extra costs - like PMI.
2. Conventional Wisdom says that you need to own a house at least 5 years in order to not lose money when you sell it. It's different, of course, if you're flipping the house.
3. Traveling can get expensive - and you cannot deduct your "commute" from your taxes. Unless you're driving a really efficient vehicle, just your gas could cost $3,000 per year if you live 90 miles from where you work. Not necessarily a deal-breaker, but something to consider.
In the end, I guess I'd suggest carefully thinking through everything before you jump.
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