Young family living on the Eastside - affordable for long term? (Bellevue: renters, condos)

[gwix98]

Originally Posted by Garfunkle524

140k should definitely be enough to live sustainably on the east side but you're going to have to choose where to live carefully. We have your same salary and we're a little younger with no baby. Most of what we looked at in our price range were older homes that had been remodeled. The home we settled on is older than both of us but has been remodeled to the point where it feels pretty new.

There were a couple newer (less than 15 years old) houses we saw in the south Kenmore area but they were in shabby neighborhoods with no yards and poor craftsmanship. You could always tell the poor suckers that fell for the "NEW HOME!!!!" baloney because the house was built in 2007 and already looked like crap.


At your income level I'd recommend not looking in Redmond. We saw many homes in Redmond and the competition is fierce due to all the well-paid employees in the area. If a house is listed at less than half a million, you can bet that it will probably get bid up significantly. We found a great neighborhood in Woodinville, I'd recommend looking up there and being as open as you can be about the age of the house.

Having lived in the Seattle area my entire life, I am always amazed
reading how much concern there is to "make it" here on a 6 figure
salary. Singles or families bringing in 11K per month and not being
able to live a reasonable commuting distance from work due to
presumably housing costs. Something is sure out of whack here.

[flyingsaucermom]

Originally Posted by gwix98

Having lived in the Seattle area my entire life, I am always amazed
reading how much concern there is to "make it" here on a 6 figure
salary. Singles or families bringing in 11K per month and not being
able to live a reasonable commuting distance from work due to
presumably housing costs. Something is sure out of whack here.

The question was not if the OP can "make it" here on their salary. The question is simply if she can afford a brand new SFH in a great school district with a 30 minute commute to her husband's job. And the answer is basically NO. Their 6 figure salary still won't afford them the average built and sized middle-class American home... it's all relative, but that is kinda out of whack if you ask me (although I'm perfectly content in my condo.. maybe the OP should consider it???).

[Ira500]

Originally Posted by flyingsaucermom

The question was not if the OP can "make it" here on their salary. The question is simply if she can afford a brand new SFH in a great school district with a 30 minute commute to her husband's job. And the answer is basically NO. Their 6 figure salary still won't afford them the average built and sized middle-class American home... it's all relative, but that is kinda out of whack if you ask me (although I'm perfectly content in my condo.. maybe the OP should consider it???).

I can't find anything saying the OP wanted something within a 30 minute commute. But she did say she has a propensity for shiny and new, wanted to buy a house in a year, wanted the eastside, good schools, and not a killer commute to Bellevue. If you take that all into consideration, there will be options, but they won't be plentiful. If she insists on Bellevue or Kirkland or Issaquah, then it'll either need to be a condo, or an older house, or win the lottery and spend an extra 150,000. If she doesn't insist on Bellevue, Kirkland, or Issaquah, then Bothell, or the eastern Renton Highlands, or Snoqualmie might fit the bill.
Or keep renting.

[flyingsaucermom]

Originally Posted by Ira500

I can't find anything saying the OP wanted something within a 30 minute commute. But she did say she has a propensity for shiny and new, wanted to buy a house in a year, wanted the eastside, and not a killer commute to Bellevue. If you take that all into consideration, there will be options, but they won't be plentiful. If she insists on Bellevue or Kirkland or Issaquah, then it'll either need to be a condo, or an older house, or win the lottery and spend an extra 150,000. If she doesn't insist on Bellevue, Kirkland, or Issaquah, then Bothell, or the eastern Renton Highlands, or Snoqualmie might fit the bill.
Or keep renting.

Would they get into bidding wars in Bothell, Renton Highlands and Snoqualmie and how stable of options are those areas? The reason why I ask is because we had a new cluster of homes built in the Highlands in 2012-2013.. the first homes (before the models were completed and ready to view) were being offered in the mid-300's, but the market took off and the last homes were being sold in the upper $600's (to be fair, all that was left were the bigger models along the greenbelt). It was a dazzling increase in home value. I can imagine that this is happening even in Bothell, Renton Highlands and Snoqualmie.. areas where I had once felt completely confident I could afford a SFH... is this even the case anymore?

[mkarch]

Originally Posted by gwix98

Having lived in the Seattle area my entire life, I am always amazed
reading how much concern there is to "make it" here on a 6 figure
salary. Singles or families bringing in 11K per month and not being
able to live a reasonable commuting distance from work due to
presumably housing costs. Something is sure out of whack here.

There's definitely been a culture change in that regard. Also having lived in this are for over 30 years, I clearly remember the point in the late 80's when this change really picked up momentum, and it coincided with California's previous housing bubble. That was when builders really started putting in huge tracts of luxury homes all across the Eastside, largely populated by people who didn't live in the state a few years prior. Now, the standards are even higher. People could cut their costs considerably by buying a 1970's era house but for just $300k-500k mores they can have a home that others recognize as a sign of success. Financed out, that additional mortgage may only be $2k/month, much of which is tax deductible. Is it in any way a necessary living expense? no. But enough people do it that it seems normal to many.

To FSM's point, the houses being built now are not necessarily representative of the area, they're just what builders think will sell. For example, this place is $600k for 1800 sq ft on a tiny lot, across the street from an auto body shop near a somewhat grubby part of crown hill- which isn't considered one of the more desirable parts of that zip code- but it's what is available for a buyer wanting a new modern home in the area. 2 years ago you'd find more modest new homes for $400k.

http://www.redfin.com/WA/Seattle/150.../home/55290329

[Hemlock140]

There are still new homes advertised in Sammamish in the $700,000 range (and up), I pass the signs every day. The median family income here is $135,000, and the OP is above that. With enough down that could be affordable for them, and it's within 30 minutes of Bellevue. The way things are going, though, it's a matter of timing. By the time they are ready to buy these could be gone and any new ones at $800k or more.

[gwix98]

Originally Posted by mkarch

There's definitely been a culture change in that regard. Also having lived in this are for over 30 years, I clearly remember the point in the late 80's when this change really picked up momentum, and it coincided with California's previous housing bubble. That was when builders really started putting in huge tracts of luxury homes all across the Eastside, largely populated by people who didn't live in the state a few years prior. Now, the standards are even higher. People could cut their costs considerably by buying a 1970's era house but for just $300k-500k mores they can have a home that others recognize as a sign of success. Financed out, that additional mortgage may only be $2k/month, much of which is tax deductible. Is it in any way a necessary living expense? no. But enough people do it that it seems normal to many.

To FSM's point, the houses being built now are not necessarily representative of the area, they're just what builders think will sell. For example, this place is $600k for 1800 sq ft on a tiny lot, across the street from an auto body shop near a somewhat grubby part of crown hill- which isn't considered one of the more desirable parts of that zip code- but it's what is available for a buyer wanting a new modern home in the area. 2 years ago you'd find more modest new homes for $400k.

1509 NW 90th St, Seattle, WA 98117 | MLS# 627693 | Redfin

Every day I am thankful to have one of those 1970's homes.
Small mortgage, more than adequate square footage (actually to much),
nice area of north Edmonds. Yes shiny and new are nice, but some of
us are content to live with older and used!
I commuted all my working life into downtown Seattle, and
I can understand the desire to be close to one's job.
The eastside is nice, but I will take the west side anyday.

And a big benefit: ability to live very comfortably on much less than a 6 figure income.

JMHO

[benleis]

Another long term option is to buy closer to work but compromise on age/size and after building up equity trade up to a newer house. That's been
the trajectory of many of my friends over the last 10-15 years.
Ben

[flyingsaucermom]

Originally Posted by Hemlock140

There are still new homes advertised in Sammamish in the $700,000 range (and up), I pass the signs every day. The median family income here is $135,000, and the OP is above that. With enough down that could be affordable for them, and it's within 30 minutes of Bellevue. The way things are going, though, it's a matter of timing. By the time they are ready to buy these could be gone and any new ones at $800k or more.

I thought the home value shouldn't exceed 3 x gross income. If that's still accurate, then the OP would need a $250-$300k downpayement. And no reasonable financial expert would suggest buying a home without a decent sized emergency fund (6 months, at least) so tack on another $30k...

If you're coming from the midwest or similarly priced COL and you're only in your early 30's, it's likely the case that you haven't had the opportunity to accumulate that sort of money.

[Ira500]

Originally Posted by flyingsaucermom

I thought the home value shouldn't exceed 3 x gross income. If that's still accurate, then the OP would need a $250-$300k downpayement. And no reasonable financial expert would suggest buying a home without a decent sized emergency fund (6 months, at least) so tack on another $30k...

If you're coming from the midwest or similarly priced COL and you're only in your early 30's, it's likely the case that you haven't had the opportunity to accumulate that sort of money.

Because interest rates are low, the gross income/home value ratio has changed a little. But even so, just because a lender tells you that you are approved to buy a home for 700,000 dollars doesn't mean you should. If you are used to a monthly rental or house payment that's 2500 per month and now you're expected to pay 3500, it might might not be so easy, especially if you're not putting away an extra thousand per month.
To answer your earlier question about whether bidding wars go on in places like Bothell, Renton Highlands, or Snoqualmie? I haven't had any recent dealings in Snoqualmie(and I'm too lazy to look up how many homes sold for over the asking price), but yes, there are still some multiple offer situations in Bothell and the Renton Highlands. Just not nearly as much.

I just looked up some statistics. Looking for how many homes were currently for sale, with 3 or more bedrooms, built 2005 or newer, and 650,000 dollars or less, here's what's out there.
Bothell 7
Kenmore 9
Kirkland 3
Redmond 9
Sammamish 1
Renton( Issaquah School District)24
Snoqualmie 27

If you make it 2000 or newer, with all other parameters the same
Bellevue 1
Bothell 7
Issaquah 7
Kenmore 12
Kirkland 4
Redmond 10
Sammamish 2
Renton( Issaquah schools) 26
Snoqualmie 27
Data compiled from NWMLS, neither verified or confirmed by them.