Tag Archives: buying a home

Life Update

11 Nov

I haven’t been around too much lately. Things have been crazy with Hurricane Sandy, attempting to get a second job, working on another blog that will be read more than this one, etc.

HOUSING

We were approved by the co-op board and our closing date has come and gone. Hurricane Sandy really knocked us out for a punch and put a major delay in many of our plans. Of course, more fees must be paid and we have been paying quite a bit into this property already but once it’s over, we will have our own place, we will be making payments that are less than our current rent and we will hopefully enjoy our new surroundings. I’ll have to write about all of the unexpected expenses in terms of purchasing a co-op, which no one will care about because most people do not live in areas with them! I really hope that we can close before the end of the month but that is looking less and less promising.

GETTING A SECOND JOB

Unfortunately, I have really gotten no where with this. After my initial excitement and interviews, I haven’t heard anything. One place I interviewed at said that my schedule didn’t really work for them. Another place, after calling me, never called me back once I returned their call. I did have another interview last week but they seemed to, in actuality, want someone part-time. My husband was also having a difficult time with finding a second job so we started another blog about something he is very familiar with and it seems to be doing okay. We have only existed since October and we are getting over 100 views everyday already so hopefully we can continue on an upward trend.

My husband and I also talked about his goals. Although he really loves where he works, he has been there for over four years and there is no room for growth. Absolutely none. Over the years, he has received tiny raises and then small bonuses but after doing some research, he could be making quite a bit more money at the senior level. Once all of the housing stuff settles down, I think he is really going to think long and hard about what he wants to do and possibly look for another job.

SAVING MONEY & RETIREMENT

This area has been problematic for us and I think the fact that this housing stuff is never-ending is part of the problem.

We were in the position of saving nearly all of my paychecks every month until the co-op stuff started. Now, instead of putting them into the savings account, I have been putting them into our checking account because I have been writing checks non-stop. I haven’t even been able to keep track of anything anymore since they seem to have cashed some checks and not others. I also have not been able to do anything in terms of retirement because I feel stuck with this house stuff over my head.

 

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Ignoring “Advice” When Buying a Home

16 Jun

My husband and I have been looking at homes. We have had our eye on one particular contender. It’s a two bedroom, one bath co-op in a small unit of cooperative units that look like a row of townhouses—highly unusual in my area since most co-ops look like large apartment buildings. Aside from the stress involved in looking for a home, I have found that people tend to be less than supportive in our attempt to purchase a home. Instead, we end up hearing a stream of opinions from people who know absolutely nothing about our situation and who seem to know little about the housing market today.

Opinion #1: Don’t Buy a Co-Op! Ever!

People fear co-ops for a number of reasons. They do not like that you technically do not own a piece of property. They don’t like the idea of boards and people who can raise your maintenance whenever they want for whatever reason. I am perfectly able to understand where they are coming from and why they feel that way.

What I do not appreciate is when people wholeheartedly try to talk us out of purchasing a co-op. They do not know our situation well enough, financial or otherwise, to make that decision for us.  So many people are ready to talk us out of purchasing a co-op without talking to us first and that is something I do not understand.

Why purchase a co-op? Simply put, that is all we can really afford. Occasionally there is a condo that comes on the market that we can afford but that is very rare. Unlike the neighborhoods many of these people live in, co-ops are actually quite commonplace and regularly bought and sold where we reside.

Opinion #2: Try to Get…

My husband and I have what I consider to be a short list of things we want in a home.

  • Two bedrooms, one bathroom
  • Preferably some type of outdoor space
  • Washer and dryer on-site, not even necessarily in our unit
  • Dishwasher in the co-operative unit
  • Storage or a lot of closet space
  • Some type of parking even if there is a waiting period or lottery

Now some of these things are somewhat flexible. For example, the unit we are interested in doesn’t have a washer, dryer, dishwasher or parking on-site. However, we feel as though we must have the option to add some of these things in the future. Not having a parking space is not the end of the world either—it’s a preference but not necessarily a need.

The naysayers, of course, have to insert their own opinions as to what we should be looking for—why not try to get something with a backyard? Why don’t you get something with a big kitchen? Why don’t you get something that has been renovated? Why are you buying a co-op again?

Opinion #3: Why Don’t You Just Buy a House?

I really hate this question because it assumes that I wouldn’t want to buy a house if I could buy one. Do you think I would be purchasing co-operative units if I could afford a house? What makes you think we can easily afford a house? Do you guys mistakenly think my husband and I are rich? My husband and I would gladly purchase a home if we could afford it. Affordability is key and most of the people telling us this bought houses twenty or thirty years ago when houses were still easily affordable in our city.

What to Take Away

It’s always smart to listen to people in terms of housing, especially when you have never purchased a home before. However, you need to remember that this home is for you and that there is a difference between good advice and opinions from your friends and families. When you begin your search, keep these things in mind:

  • Always ask for advice but make sure your advice is from the right people
  • Before you ask for feedback, make sure whoever you are discussing your situation with has the entire picture
  • Don’t allow other people to push their opinions on you and push you into something you don’t want

How have your home buying endeavors been? How have people responded to what you are looking for when you tell them about it?

To Buy or Not to Buy – Our First Home

11 Jun

I am currently in the midst of freaking out and incessantly thinking about the possibility of purchasing a home.

I thought I had most of the figures down until I found myself on this link: Is It Better to Buy or Rent? According to the numbers that I put in, it would be better for us to rent for the time being, which makes me sad in a way.

Purchasing our first home is an incredibly scary thing for us. We have been saving up money for a few years now and we finally have enough to put 20% down on certain properties. In our area, a major city, we cannot afford anything but co-ops and the occasional condo. I have a feeling that when I ask for a cashier’s check of nearly $70,000 to put down as a down payment, I might throw up. Really.

Part of me feels conflicted because I want a place of my own. Part of me feels conflicted because a co-op is not my dream home. My dream home has space, a backyard and a pool. My dream home is not what I could only describe as “having that apartment feel.” By space, I don’t mean a huge house—I just mean something we could grow into together.

My husband and I have been pretty set on purchasing a two-bedroom co-op. Right now we rent a one-bedroom apartment for $1300.00/month. We actually live in a pretty nice building but it has a lot of things I don’t like such as:

  • The only thing the kitchen has going for it is the space—it’s actually a big kitchen for most apartments I have seen in the area and has a lot of cabinet space. The kitchen has an ugly laminate floor that is not only coming up in certain areas but is put on in such an incredibly lazy way that the second half of the kitchen “tiles” do not line up with the first half. The backboard is crooked and not even against the wall. There are holes/spaces near the floor.
  • The bathroom is disgusting. Both the pipes in the sink and tub seem to ALWAYS be clogged. For whatever reason the ventilation is awful and we always have mold growing. The stuff is coming up off of the tub floor.
  • Last year we had an awful storm and water started to leak through the brick. The building had to be repointed and the super said after it was finished, he would come in and paint over where the water leaked through and left yellow stains. Never happened. We have a live-in super and considering he had to do this on every floor for multiple sections of the building I find it hard to “forget.”
  • Awkward things like a door to the living room, a super dark hallway, small foyer that ends up being a haphazard desk area
  • Roaches!

At the same time there are things I do like:

  • Rooms are a nice size
  • Daytime doorman
  • Building, overall, is nice and has laundry downstairs; close to train
  • Rent is okay for us

WHAT WE WANTED FOR OUR HOME

  • Wanted a two-bedroom or a one-bedroom large enough to perhaps alter into a second room
  • Wanted a private outdoor space such as a terrace
  • Lower maintenance costs
  • Washer/dryer on-site

THE CONDO

There has only been one condo for sale that we could remotely afford. Crunching some numbers, paying the mortgage plus the maintenance would actually cost us either slightly less or slightly more than what we pay now. The taxes were relatively low and given the fact we could claim our mortgage interest, I think it would work out to our benefits.

PROS

  • Cheaper for us
  • Had a terrace
  • Had a W/D in the unit
  • Had a small storage space in the basement
  • Had a parking spot—extremely, extremely rare

CONS

  • My guy absolutely hated it
  • Definitely need a little work
  • Smaller than the place we’re in now

SUMMATION

I guess I have a little more vision but I saw some potential in there to really fix up some things and turn a profit on it. I liked the fact that we could rent it out in the future, unlike most co-ops, and I think we could actually turn a profit on the place either renting or selling. However, as much as I am willing to make an offer, my man is not and I’m not going to force him into something he doesn’t like even though I have really tried to sell it to him.

THE CO-OP

The very first co-op we saw is the one we keep coming back to. It’s approximately 280 square feet larger than the condo (880 square feet) and has two bedrooms.

PROS

  • Sick of living in big buildings and this is a very small co-operative unit that looks like a row of houses
  • Two bedrooms
  • Open feel
  • Terrace
  • Very low maintenance that is 50% tax deductible—the maintenance rate is unheard of in our area
  • Separate/private entrance
  • Private storage area in the basement
  • Doesn’t need a lot of work—mostly cosmetic stuff that we could live with for now

CONS

  • Kitchen is kind of small
  • Bedrooms are kind of small
  • Currently no W/D on site—we have to see if they’ll let us put one in the basement—additional expense
  • Eventually would like to add a dishwasher—another additional expense
  • Parking in that area is worse than where we are now and there might be three spots somewhere but they are wait list and I doubt we’re anywhere near the top
  • Would cost us more than our current rent
  • Cannot sublease in the future

SUMMATION

We are actually working on bidding for this place. We are going to bid quite a bit less than the asking. We’re still in the process of figuring out our loan stuff (trying to get a better rate) and obtaining a lawyer.

Although the money maintenance and mortgage would be more than our rent right now, our rent would eventually increase again. Additionally, the mortgage interest and half of the maintenance are tax deductible, so I think this will almost allow us to break even.

NOT FOR THE WEAK

Buying a house is emotionally draining. It really is. And as much as I try to stay logical about it, I still find it to be such an emotionally wrapped up decision. As much as I can make an argument for the condo, will we be happy in a place we don’t particularly like? I need my home to be a place I enjoy being in—not somewhere I want to run from.