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I'm in the process of making what for me is a pretty tough decision. I've been waiting for a new community to start building again (have been hearing "next month" since the spring. I really like the community and am pretty certain it will actually be finished (halfway complete, amenities such as pool are in, etc.).
The new construction I've been waiting to put under contract and will be available to put money down on before the end of the year (supposedly). The home would then be completed at the end of the summer which is my desired time table to move. Assuming their pricing stays the same or goes down, it will be affordable for me though at the high end of my price range. (Am looking at townhomes and have been determined to pay the premium price for an end unit).
However, a resale unit that is 6 months old just became available, and though it is an interior unit (huge turnoff for me), I looked at it and love it. It is a nicer floorplan that I was thinking of and part of a level of homes that is out of my price range new in this community. It would also be less money for more square footage and more rooms than I would have if I wait for the new construction.
Even though it is much sooner than I had wanted to move (am in a lease til August I'd have to break), it would get me into a nicer home in my desired community at a time where I know what interest rates are (relatively speaking of course, I know it changes day by day). This is as opposed to waiting to see IF they release the new homes in my timeframe and IF when they do they are affordable, and even then IF they will let me buy the lot I want (it is fairly desireable and am afraid it will get sold out from under me). In other words, their are no guarantees I'll get the home I've been waiting all summer to put money down on and watch be built. If I continue waiting for it I run into a strong possibility that it will not be finished before my lease is up and I'll be looking at a much more expensive month to month lease or a temporary move while I wait for new construction to finish.
Though I know what I am leaning towards doing, I would love others opinions on if now is better than waiting for something that may never be available (at least in affordability), and if an interior unit townhome is a crazy thing to buy when I could be waiting for an end unit.
I don't know your market, but have you done ALL of your research?
Is the resale a good deal? Have you gotten good comps? Can you see youself living in an interior unit for a very long time? Are you prepared for the unit to possibly decrease in value?
Let's look at the community as a whole. Why have they stopped building? What happens to the units already there if the builder packs up and leaves? Do you want to live in a community that may go belly up? Amenities are only half complete? What is going on there? What are the HOA fees and will they go up if no one new is moving in?
Have you done dollar to dollar comparisons as far as the costs you will incur including breaking your lease?
I would be more concerned about what is going on in your desired community than I would be about buying a resale.
I feel like I've done a lot of research but that doesn't mean that I know everything.
The community has been in the process of revaluing the land for the unsold/unbuilt lots. They've come down in price quite a bit since they started but I really can't see them going much lower. They've been putting some money into new signage, etc. in the last month and I see them finishing the community, but since the new builds don't start until the entire row of townhomes is built I could be looking at quite a ways out before mine would be completed (I am thinking at least next fall).
The end unit I've been wanting is a three story, and the interior unit I can buy as a resale is a two-story. New two-stories are out of my price range so if I buy the resale within my price range I feel that I'll be getting a good deal, especially since I couldn't buy the equivalent unit new for the same price (would be higher). The two story has some benefits the three does not - such as the kitchen on the same level that you walk in (vs. second floor on the three story) and more storage, more square footage, etc. that I think will look better for resale - plus there are a lot of three story townhomes in this area, but very few two stories, so I think it will hold up better there as well.
We're scared that if we wait A) we won't even be able to buy the three story due to price (builder may be trying to increase them), B) it will take so long that the additional savings I have for the down payment will go towards the increase in the month to month rent, C) interest rates will go up or at least be slightly higher then vs. now. Plus, the three story will be a higher price (though not as high as new two stories) than what we're planning on offering, so even though I'd have another 10K towards down payment next summer, the cost of the three story would eat that up with the upgrades I want.
The amenities are all in - pool, clubhouse, etc. so I am not worrried about them being left unfinished. Enough of the neighborhood is finished that I'd be comfortable in it even if it took another few years to finish the build out. I hadn't thought of HOA fees going up to cover the lack of residents in the unbuilt units, I will look into that.
Our plan is to stay in the home 5 to 10 years (though I know lots of people probably say that) at least. This one is actually more flexible than the end unit as it has more bedrooms so if we did decide to have more than one child they could each have their own room without sharing.
At any rate, I know the person selling is trying to recoup what they paid, plus commission, plus profit, and we're not willing to pay the price they're asking, (would be a LOT more than they paid a year ago and with the available inventory in our city I'd feel like a fool paying that, plus I'm settling on the interior unit).
Its a few thousand to break my lease but lately the place has been going downhill (multiple police visits in the middle of the night, trash piling up, etc.) ever since a management change, so I would welcome the ability to leave here as well. I'm also really ticked off at the complex as they lowered rents just after I re-signed my lease (been here a while).
At any rate, I'm definitely doing a lot of thinking on this, and I do appreciate your comments, we are taking them into consideration as we decide!
I think the middle unit sounds more desirable than the end unit. I think resale would be easier with kitchen and LR on the same floor..... the three floors sound tall, but not deep. Not sure that is best.
Also, your utilities should be less with an interior unit. You will get the benefit of either side of you warming and cooling : )
since you are going to be there 5 to 10 years, I don't see any reason for you to wait and then miss out anyway...
If this is your home and you can make it work, go for it!!!
Always stay within your means, so if you can get the interior unit at a price you can afford and are comfortable with, I would buy that one. Good luck and let us know what happens if you make an offer and if it's accepted. Hopefully the seller will be negotiable.
This would have been within our means, we're purchasing based off of what we can afford on one income (without splurges). Though it looks like it won't happen, the owner won't budget off full list price and it just isn't worth it. At least we tried though!
Keep an eye on the listing. If they don't get offers, they'll have to eventually lower their price. You may be able to make an offer down the line at the price you want.
I'm hoping so. Our original offer had been 95% of list and then we upped it to meet halfway between that and list. I thought that was fairly decent, but apparently they're holding out for almost 10% appreciation on a home that is less than a year old. I definitely wish them the best of luck, but I'm not going to be that person that does it for them! Too many other options to make it worth it to me. If anything changes I'll post, but I'm personally giving up on them.
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