aaaggg am i making a big mistake??? (Richmond, Chester: condo, mortgage) - Virginia (VA) - City-Data Forum

Stagemomma · 03-17-2023, 06:27 AM

I've been preapproved for a $250,000 purchase and the market is just terrible. I can buy an unrenovated house for $200K, or a renovated house for $300K and there is very little to be found in between.

I wanted to live in the city and be a hipster, but maybe the reality is I just can't afford to live in Richmond?

I have $165K in equity so that is not the problem. The problem is getting a monthly payment down to an affordable percentage of my income.

Will the market open up in the next 2-4 months? I need some viable choices, not the crap that I'm seeing now.

webster · 03-17-2023, 07:13 AM

No one can predict the market fully. After all, most did not see the collapse of 2008. That said, in general, there is and will be for the foreseeable future a housing shortage in the Richmond area. I renovated a 1924 townhouse. I did it one room a year in a not so good area at the time but which came back. What I learned was that with the exception of plumbing and electrical, I could do the work; plaster is very forgiving. The rise in rates has slowed the market, but it's still a sellers market. Going a bit further out, into the Regency Square area, un-renovated homes - but with good bones - are in the price range, but it's not a "hipster" area. For the latest data: https://cvmls-public.stats.showingti...Metro?src=page
https://www.noradarealestate.com/blo...estate-market/

Stagemomma · 03-17-2023, 07:25 AM

Quote:

Originally Posted by webster

No one can predict the market fully. After all, most did not see the collapse of 2008. That said, in general, there is and will be for the foreseeable future a housing shortage in the Richmond area. I renovated a 1924 townhouse. I did it one room a year in a not so good area at the time but which came back. What I learned was that with the exception of plumbing and electrical, I could do the work; plaster is very forgiving. The rise in rates has slowed the market, but it's still a sellers market. Going a bit further out, into the Regency Square area, un-renovated homes - but with good bones - are in the price range, but it's not a "hipster" area. For the latest data: https://cvmls-public.stats.showingti...Metro?src=page
https://www.noradarealestate.com/blo...estate-market/

webster · 03-17-2023, 04:35 PM

To help me afford my townhouse, I rented a room to a student. I was lucky I suppose; he was very quiet, very introverted, and went to his mother on weekends. Before that, I had a condo; to afford it I took out an ARM; everyone advised against it, but it worked out; back then rates were over 10% but the ARM was at 4% and I sold before it reached a high level. The point is to explore all options if you really want to own; owning presents its own challenges and rewards - and as most homeowners will tell you, its own unexpected expenses.

webster · 03-18-2023, 05:50 AM

A visual market analysis: https://storymaps.arcgis.com/collect...cd7ece5?item=2 takes a few seconds to load

More data:
https://pharva.com/housingdata/

aquest1 · 03-21-2023, 05:40 PM

Quote:

Originally Posted by Stagemomma

I've been preapproved for a $250,000 purchase and the market is just terrible. I can buy an unrenovated house for $200K, or a renovated house for $300K and there is very little to be found in between.

I wanted to live in the city and be a hipster, but maybe the reality is I just can't afford to live in Richmond?

I have $165K in equity so that is not the problem. The problem is getting a monthly payment down to an affordable percentage of my income.

Will the market open up in the next 2-4 months? I need some viable choices, not the crap that I'm seeing now.

They say if you are in shape to buy (stability/finances straight/able to commit) buying at that time is the best. You can never know what the market is going to do. While interest rates are high right now, it's not a given that in a couple years re-financing a higher interest mortgage wouldn't be a possibility.

While everyone might want to live in the Fan, Museum District or Near West End, you have to expand your search. If you have the flexibility, focus on areas that are more up-and-coming and houses that just need some light renovations rather than full gut jobs.

E.g., in Greater Church Hill, a few blocks away from desirable Chimborazo Park:

https://www.zillow.com/homedetails/6...12523291_zpid/

This one was on the market for weeks and just went pending, but also near Chimborazo with only a few renovations needed:

https://www.zillow.com/homedetails/1...12523461_zpid/

I live in Church Hill myself, so I am kind of biased to that part of Richmond, but there are still options in revitalizing neighborhoods of North Side/Barton Heights and Brookland Park Blvd, areas just south of Forest Hill Park, and in Church Hill. Don't give up just yet.

MrRational · 03-24-2023, 04:22 AM

Quote:

Originally Posted by Stagemomma

The problem is getting a monthly payment down to an affordable percentage of my income.

$300,000 - $165,000 equity = $135,000 mortgage. Right? (or close to)
How long do you want (need?) the mortgage to last?
30 years (at currently high rates) comes out to $1136/mo (PI+the rest). Is that affordable?

Stagemomma · 03-24-2023, 05:48 AM

Quote:

Originally Posted by MrRational

$300,000 - $165,000 equity = $135,000 mortgage. Right? (or close to)
How long do you want (need?) the mortgage to last?
30 years (at currently high rates) comes out to $1136/mo (PI+the rest). Is that affordable?

It's the way We're doing the financing. I have a home equity line on my current home, and I"m going to use that for a smaller down payment. Then when I sell my current home I will do what is called a RECAST and pay down the mortgage and get a smaller monthly payment.

But I can't get approved for the initial higher monthly payment based on my school teacher income.

Stagemomma · 03-24-2023, 06:13 AM

E.g., in Greater Church Hill, a few blocks away from desirable Chimborazo Park:

https://www.zillow.com/homedetails/6...12523291_zpid/

THis one has ugly carpeting and is on the wrong side of the river...looks like I'll be working in CHesterfield Co.

This one was on the market for weeks and just went pending, but also near Chimborazo with only a few renovations needed:

https://www.zillow.com/homedetails/1...12523461_zpid/

THis one had no interior pictures and judging from the price needed more than a few renovations.

Here's one that might work....need to see the backyard and unfortunately it has new carpeting.
https://www.zillow.com/homedetails/3...12540441_zpid/

This one needs all new paint and flooring and the kitchen has not been recently renovated...hard to tell from the pictures.

I really wanted a townhouse because I don't want to mow the freakin grass.

VA Outdoorsman · 03-24-2023, 07:09 AM

Hate to break it to you but those areas of South Richmond can be very rough -- at least they were back when I remembered them. If I were you I would look closer to the river in Forest Hill or the Westover area on that side of town. You could also try Stratford Hills if you prefer an even more suburban setting but there would be a lot of grass and tree work needed. Where in Chesterfield do you work?