Aubrey Posted August 16, 2010 Share Posted August 16, 2010 I've seen a dozen or so that I'd consider for $30-$40k. They'd need work, but we've fixed up a house before. Not that we know everything, just that we're not nec going to be *shocked.* Otoh, we just put in an app to rent a 2 bedroom mobile home for double what these 2000sf 4bed/2bath houses would cost. We've seen a duplex we'd like, but everything else is tiny or scary or won't call us back. Our credit is excellent. Income's low, but since we're looking at properties that would cost 1/2 of a rental...I don't know. I'd rather not be that tied to something at this point, but...it's hard to argue w/ cheaper. Kwim? And it's triple digit heat here. The a/c in the van's barely working. Twice now, we've driven 1/2 an hr to look at a property, & the owner/mgr didn't show. Dh even called the lady today to confirm the appt he made yesterday. She called back 10 min before we were supposed to *be* there, said she forgot, but could meet us in 4hrs. :001_huh: Quote Link to comment Share on other sites More sharing options...
Snickerdoodle Posted August 16, 2010 Share Posted August 16, 2010 A house for 40 thousand? I can't even imagine it. Serious? Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 A house for 40 thousand? I can't even imagine it. Serious? Some of them are that cheap because they're that far from the metroplex. (We'd plan to stay there forever & hope that dh could teach nearby, so a really long commute wouldn't be forever if we did something crazy like that.) Then there are smaller ones that need fixing. Ugly blue carpet, a VW van painted on one wall, holes in sheetrock, ugly tile, whatever. Hard to sell anyway, & a bad market. Some of them we wouldn't consider: burnouts, mold, most water damage. Quote Link to comment Share on other sites More sharing options...
Whereneverever Posted August 16, 2010 Share Posted August 16, 2010 A house for 40 thousand? I can't even imagine it. Serious? Homes regularly go for that here, too. Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 Look at that cute fireplace. The whole house has so much character, over 2000sf, etc. 44k Quote Link to comment Share on other sites More sharing options...
Nature Posted August 16, 2010 Share Posted August 16, 2010 Go for it! There are many advantages of being a homeowner. For that price, buy two!! Just kidding. I've seen some townhomes go for about 20% of what they were purchased for. Quote Link to comment Share on other sites More sharing options...
Chris in VA Posted August 16, 2010 Share Posted August 16, 2010 But where is it located? Garland? Gangs. Be careful.:001_smile: Quote Link to comment Share on other sites More sharing options...
Crimson Wife Posted August 16, 2010 Share Posted August 16, 2010 When making the rent vs. buy calculation, make sure you include all the costs of ownership. Property taxes, homeowner's insurance, maintenance, HOA dues (if applicable), higher utilities if you're getting a bigger place or one that's less energy efficient, increased gas and wear & tear on your vehicles if you live further from town, any appliances you'd need to purchase, etc. You need to make sure you're doing an accurate comparison because there are so many "hidden" costs. We bought our first home this past January and while we tried to anticipate these kinds of costs, the actual result came in quite a bit higher than we had estimated. Fortunately, we were conservative in terms of our purchase price so we've been okay. Thank goodness we hadn't "stretched" to buy a more expensive place! Quote Link to comment Share on other sites More sharing options...
3littlekeets Posted August 16, 2010 Share Posted August 16, 2010 Look at that cute fireplace. The whole house has so much character, over 2000sf, etc. 44k Oh my...if it is in an area that you think is safe enough for your family, and you would pay LESS than rent, and you could fix it in up to your standards in one or two years with the same amount it would cost you to rent (break even point), I'd do it in a HEARTBEAT. The stability, the minor taxbreak (very minor), the stability-- the feeling of ownership and knowing you won't have to move again unless you choose to do so, the ability to do what you like in YOUR home, and the potential to make money over time, I'd dive in! Quote Link to comment Share on other sites More sharing options...
ChristusG Posted August 16, 2010 Share Posted August 16, 2010 Because you have to move. Ugh, I hate taking down, organizing into boxes, packing, moving, unpacking, setting up, etc. I hate moving. Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 When making the rent vs. buy calculation, make sure you include all the costs of ownership. Property taxes, homeowner's insurance, maintenance, HOA dues (if applicable), higher utilities if you're getting a bigger place or one that's less energy efficient, increased gas and wear & tear on your vehicles if you live further from town, any appliances you'd need to purchase, etc. You need to make sure you're doing an accurate comparison because there are so many "hidden" costs. I know--that's why I hadn't considered buying. The price range we were looking in a few yrs ago (pre-seminary) would sink us now. But if we're paying 1/2 in mtg that we'd be paying in rent, I'm thinking we just save that for the stuff that breaks down. We already have a fridge, aren't looking at anything that even knows what HOA *is* lol, & my experience has been that w/ ins, tax, etc, your pmt comes to 1% of the purchase price, despite what the bank tries to tell you. :001_smile: We bought our first home this past January and while we tried to anticipate these kinds of costs, the actual result came in quite a bit higher than we had estimated. Fortunately, we were conservative in terms of our purchase price so we've been okay. Thank goodness we hadn't "stretched" to buy a more expensive place! Yep. We bought our 1st home about 5yrs ago & sold it to come here. It worked out fine--we had ins on the major appliances, etc, but still *way* expensive--but knowing what I know now, I wouldn't buy that house again. We sold it for a small profit, when repairs are considered. W/out renovations, 125% of purchase price. Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 Because you have to move. Ugh, I hate taking down, organizing into boxes, packing, moving, unpacking, setting up, etc. I hate moving. I hate moving, too, but we have to move. Dh is leaving seminary, & the seminary insists on keeping their house! :D Quote Link to comment Share on other sites More sharing options...
Margo out of lurking Posted August 16, 2010 Share Posted August 16, 2010 LOVE that fireplace!!!!! It doesn't look like it needs that much work. Absolutely, I'd do it. The only exception would be if you were paying extremely high property taxes. Even in your area, it's unlikely that housing could go much lower. You'll have the option later to rent it out for much higher than your mortgage payment and rent or buy something bigger and closer in. Wouldn't that be nice to be making a few hundred dollars a month on it as it helps fund another home for you? There are many areas and instances where real estate is a great investment right now. Yes, yes. Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 But where is it located? Garland? Gangs.Be careful.:001_smile: Yeah, for some reason dh said no to a sweet deal in "the heart of Oakcliff." :glare::lol: Quote Link to comment Share on other sites More sharing options...
Pink Fairy Posted August 16, 2010 Share Posted August 16, 2010 Two things I'd keep in mind. First is the neighborhood--is it on its way up or down? Safety, etc., plus who else is buying there? Are most of the residents renters or owners? Second, I always find that household projects are way more expensive/time consuming than we anticipate. Are you prepared financially, and will it totally mess up your homeschooling/family life if you have to live in a construction zone for any length of time? Sounds exciting, anyway, and I adore that fireplace! On the positive side, the mortgage on a $44,000 home must be amazingly low. Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 Oh my...if it is in an area that you think is safe enough for your family, and you would pay LESS than rent, and you could fix it in up to your standards in one or two years with the same amount it would cost you to rent (break even point), I'd do it in a HEARTBEAT. The stability, the minor taxbreak (very minor), the stability-- the feeling of ownership and knowing you won't have to move again unless you choose to do so, the ability to do what you like in YOUR home, and the potential to make money over time, I'd dive in! Well...it was a huge relief when we sold our house a few yrs ago. We were really in over our heads, I think, & the area was going downhill fast. The roofer wouldn't fix the leak in the brand new roof, & kid from the apt complex behind us kept cutting thr our yard & stealing stuff. If it were up to me, I'd really rather rent until we're settled enough to make a real decision, but a couple of the houses are good enough to really happily stay forever, & a couple of them are in a good enough location that they'd be easy to sell or rent once they're fixed. I just hate being a nomad. :lol: Quote Link to comment Share on other sites More sharing options...
Aubrey Posted August 16, 2010 Author Share Posted August 16, 2010 Two things I'd keep in mind. First is the neighborhood--is it on its way up or down? Safety, etc., plus who else is buying there? Are most of the residents renters or owners? Yep, there are good deals in bad places. One looked good until I googled a street view. It's almost a ghost town, & you can see the sunken-eyed poverty moving in. Really too bad. Second, I always find that household projects are way more expensive/time consuming than we anticipate. Are you prepared financially, and will it totally mess up your homeschooling/family life if you have to live in a construction zone for any length of time? I know. We started hs'ing w/ that situation. I wouldn't choose it, but from what I've seen...hs'ing/family life is going to be in upheaval this yr anyway. Which is worse: a 2 bed mobile home w/ a mo-to-mo lease or renovating a house? We've also seen 3/2 duplexes that range from ok but a lot like a cave to gorgeous but 150% of our current pmt. I kind-of think the stress of paying too much in rent might be equal to the stress of fixing up a house. I'm not sure, though. Quote Link to comment Share on other sites More sharing options...
Carol in Cal. Posted August 16, 2010 Share Posted August 16, 2010 Interest rates are totally in your favor right now. How long can that last? I say, go for it! Quote Link to comment Share on other sites More sharing options...
Harriet Vane Posted August 16, 2010 Share Posted August 16, 2010 What's your dh's job situation? I vaguely remember he is in seminary but that the two of you had put that dream aside for something else???? I ask because if he's not fully settled into something, I would be very hesitant to buy a house. Quote Link to comment Share on other sites More sharing options...
lmrich Posted August 16, 2010 Share Posted August 16, 2010 I think you will feel a peace when you are on the right track. Sometimes our brains go so fast that we don't really listen to our souls. Your decision is yours and your dh's - you will know when you know. Trust yourself and your sensible side. Quote Link to comment Share on other sites More sharing options...
bookfiend Posted August 16, 2010 Share Posted August 16, 2010 Just based on the darling, major deal quotient - I would vote yes. Quote Link to comment Share on other sites More sharing options...
Liz CA Posted August 16, 2010 Share Posted August 16, 2010 Look at that cute fireplace. The whole house has so much character, over 2000sf, etc. 44k Is that a wood floor??? $40,000??? But I know I'd die after a week in your kind of heat. At least here we have a cool delta breeze now and then and I still complain. Quote Link to comment Share on other sites More sharing options...
Remudamom Posted August 16, 2010 Share Posted August 16, 2010 Do you know how long it took me to read "house", not "horse"? Quote Link to comment Share on other sites More sharing options...
Ottakee Posted August 16, 2010 Share Posted August 16, 2010 Do you know how long it took me to read "house", not "horse"? OK----ME TOO. I had to do a double take as I was allready to tell you why to buy a horse and how great they are. Quote Link to comment Share on other sites More sharing options...
Ottakee Posted August 16, 2010 Share Posted August 16, 2010 If the house is in a good area---up and coming, not in the downswing then it might be worth it. LOCATION is EVERYTHING in real estate. Things like carpet, paint, color of fixtures, etc. are minor things and you can fix them over time. MAJOR things like foundation, plumbing, heating and cooling, and electrical can wreck a budget and really stress out your life. I would certainly get a home inspection done to look for any potential problems. Quote Link to comment Share on other sites More sharing options...
Denisemomof4 Posted August 16, 2010 Share Posted August 16, 2010 Look at that cute fireplace. The whole house has so much character, over 2000sf, etc. 44k :eek::eek::eek::eek::eek: REALLY? SERIOUSLY??!!! I can NOT imagine!!! Did you see the house? Were there other issues? Quote Link to comment Share on other sites More sharing options...
Dobela Posted August 16, 2010 Share Posted August 16, 2010 The problem we are seeing with some homes that cheap in our area (and there are many) is mostly location. They are nice houses cosmetically. They have been fixed to photograph well. But the neighborhoods are on the downward spiral, or are mostly rentals that are not well cared for. Or are fullof vacant houses. Friends of ours have tried buying some of those homes and at least 2 that looked fabulous didn't pass inspections. Remember, what is hidden can be a nightmare. That being said, I say go get preapproved for a loan, see what you can afford, and then start looking. Quote Link to comment Share on other sites More sharing options...
The Girls' Mom Posted August 16, 2010 Share Posted August 16, 2010 Oakcliff? Can't imagine why not ;) If it's not in a scary area, it would probably be worth it if you guys are hanging around for a while. Quote Link to comment Share on other sites More sharing options...
Sebastian (a lady) Posted August 16, 2010 Share Posted August 16, 2010 Yeah, for some reason dh said no to a sweet deal in "the heart of Oakcliff." :glare::lol: I just realized that you live in the same neck of the woods as my parents. I'm not sure what the age of the house you're looking at is. I would make sure that you have a really good inspection done before bidding. My parents' house was built mid 80s during a housing boom outside the Metroplex. Rowlett doubled in size in a couple of years. However, some of the builders were less than attentive to details. :glare: Things like very little insulation in the walls (they've had pipes freeze and burst a couple of times doing major damage). I would ask to see what the annual utilities bills were. My parents' floorplan is lovely. If it were somewhere that didn't have to be air conditioned. The air runs all the time and it is never really cool. Would you have to buy window units to get the house (or portions of it) cool enough for the summer. Is there any pending development in that area? My parents house value didn't fair well when a large luxury development went in down the road. Instead of raising the whole area, it made their neighborhood into a very transient neighborhood for renters. In addition, the "improvements" to the road behind their house has put a major road right up to the edge of their fence (undermining the fence). They have had issues with the slab foundation settling and putting stresses on the house as the ground shrunk during some of the dry summers of the past. What are the schools like in that area? Not that it will apply to you, but it will influence the sort of neighbors you're likely to get. What are the public libraries like in that neck of the woods. Would you find yourself in the car a lot, just to get to a good library. On the other hand, there might be some very nice houses available. There have been a lot of neighbors in my parents neighborhood that walked away from their houses. And sadly, some of the renters have ended up with lots and lots of people living in them, parking all over the lawns, perhaps not engaging in strictly legal behavior. It might be a good time to buy. But I wouldn't rush into something just to get a house. Make it be something that you'd be content in for a while. Oh, and don't forget to factor in the extra expense to living in the vicinity of a Half Price Books. That alone would cost me a couple hundred a month. Quote Link to comment Share on other sites More sharing options...
elegantlion Posted August 16, 2010 Share Posted August 16, 2010 :grouphug: We're contemplating some of the same issues right now. :glare: Quote Link to comment Share on other sites More sharing options...
Brigitte Posted August 16, 2010 Share Posted August 16, 2010 If the location is good, I saw go for it. With interest rates where they are and the fact that you would be paying that much less than on rent, you have little to lose. There are loans (FHA, I believe) that allow you to include the cost of renovation in the loan, so you might be able to finance the house and the improvements. Go to a bank and find out what your options are. Quote Link to comment Share on other sites More sharing options...
SproutMamaK Posted August 16, 2010 Share Posted August 16, 2010 If the only changes it needs are cosmetic (and you have a thorough inspection done saying so), and it's in a good area (from what you're saying it sounds like it's a fair bit out of town, which makes me think crime/safety wouldn't be an issue) go for it! Owning a house like that for cheaper than renting a mobile home?! Why wouldn't you? And I'm in the camp where you'd have to add an extra 0 to that price. ;) Quote Link to comment Share on other sites More sharing options...
DarcyB Posted August 16, 2010 Share Posted August 16, 2010 But where is it located? Garland? Gangs.Be careful.:001_smile: Heck..there are gangs in Frisco/Allen/McKinney lol Quote Link to comment Share on other sites More sharing options...
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