| murray |
I know this isn't really on topic for this section, but I thought most reads occur in here. I need advice from my fellow X owners. I live in So. Cal, am 29 years old, married, and earn about 150k per year. My wife makes much less, around 40k per year. Our income levels have changed lately for the positive, so I have only been earning at this level for about a year. We have 60k in cash, 250k in stock, and roughly 50k in other accounts that are not liquid. I want a house. I want a house so bad I can't see straight. I can't sell my stock, because it used to be worth 2x what it is now, and I have (a little) faith that it will go up, and quite frankly, I want to give it to my future kids.
Here is the deal: 95% of the places that I've looked at that I can afford are in worse shape then my apartment. I don't think I would move into them if the monthly outlay was a wash (and it isn't anywhere near a wash). What do I do? Do you all think prices will come down, or will they stay put as interest rates rise, making my situation even worse? I've really had it with this state. I just can't seem to make it here. I looked out in Valencia (for those of you who don't know where that is, it is the standard issue city that is 40-60 minutes away from where everybody works, but offers nice, less costly homes) and I can't even seem to swing the cost out there. The same builders in Valencia are building houses in Texas for 25% of the cost. I often wonder if I can't have a better life moving outta state, and taking a massive pay cut. |
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| RPitterle |
Just a couple thoughts:
1. Get preapproved for a loan. If you can find a good mortgage broker, have them help you figure out how much of a loan you can afford -- it might be more than you think. Just filling out loan forms at the bank will just drive you nuts--try to find a broker.
2. If you just had a big bump in salary, act like you didn't. Sock away all the extra cash for a down payment. (Of course, did the raise buy the X?)
3. Get a 30 year fixed rate mortgage to keep the payment down and don't pay PMI. PMI is generally required if you put less than 20% down, but unlike interest it is not deductible. If you can't put 20% down, then get a first mortgage for 80% of the purchase price and a second mortgage for the rest.
Good luck and don't buy less of a house than you really want. You might have to eat peanut butter and jelly sandwiches for a while to save the extra cash, but where there's a will, there's a way. |
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| renov8r |
I know this sounds like easy advice, but there ARE places to be had for your price range. From Hawaii to San Fran to NY & resorts there are ALWAYS houses that list for well below the "average".
If you have $60K in cash and make around $190K combined you can afford around $600K. This would definitely be a jumbo loan, but even those are still under 6%.
If you get an MLS listing for all the areas you would consider living in that lists EVERYTHING from $350-$650K there will be a few dozen in ANY area. Sure, some will be total wrecks, where the land value is all that you'd be buying, but I can guarantee that SOME will be habitable and the odds are pretty good that one or two will be actually quite livable.
You have to be realistic. You can't get dream neighborhood/perfect house/great yard in ANY price range. I know people with TWO MILLION dollar houses that had to make compromises. Believe me there are a TON of overpriced houses EVERYWHERE, but there are some priced realistically too.
The same dilemma that you face between WANTING a great house and worrying that if you don't buy interest rates will go up has ALWAYS existed. The difference is 20-30 years ago there was RUN AWAY inflation so rates where 300% more than they are now!
You will get a HUGE reality check when you actually check out some of the MLS houses that are not on the Realtor's "Hit Parade". They will not be eager to show houses that they don't think look A1, but that is where your best value can be. Find a livable house in a GREAT NEIGHBORHOOD, spiff it up a bit and if your money situation & the economy both move in the right direction you can step up. If the economy lags you will STILL be in an area that is DESIRABLE and even in a down market there can still be appreciation for homes that are a good value. You can also do well be taking a house that has a "negative" (like only two bedrooms or old fashioned bathrooms) and turning that into a 'gem'. Yes, there are folks who would happily move into a two bedroom IF it was in a great location AND had some features that appeal to certain folks -- for instance you can relatively cheaply put in top end appliance and decorate like a magazine and make the garage look like something Enzo Ferrari would be proud to call his own -- you know who pay top dollar for such a two bedroom? A rich retiree! And THAT will be a GROWING market segment!
It is entirely possible to find a situation that will "work".
SHOP HARDER!!! |
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| laborlitigator |
With the level that interest rates are at right now, you'd be foolish not to try to get something now. Even if it is a starter home, at least you could build up equity over time. Remember, your first home will not (or rarely is) going to be your last or dream home. You've got to start somewhere.
Secondly, in your tax bracket, you're giving so much back to Uncle Sam on the W-2, it's worth it based on the deductions alone.
When wifey and I bought our home, we placed all our liquid into the home and set aside six months of mortgage payments/upkeep for the home.
Good luck to you! |
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| TheWorm |
IIRC, on 190k you can get $600k-$800k in CA based on most lender's criteria, depending on your "other" debt load. Your biggest problem, IMO, is the down payment. 20% standard for best rates and no PMI or bogus escrow accounts.
You *can* find a good house for 600k, especially for a "starter" (I'll pause while everyone outside of CA gags)...I'd suggest talking to your local bank or mortgage broker (PM vicpai here on the board for referrals) and look at some piggyback financing schemes. Essentially you do an 80% loan then another 10% on top (piggybacked), which avoids PMI and escrow accounts. You'll pay a bit more on the piggyback but it'll get you in -- and rates are low so it won't kill ya. I've seen ads (don't know how legit) offering up to 95% LTV financing. That is HIGH leverage, though. If prices dip and you need to sell, you'll be underwater just from the RE agent fees, in addition to any downward price moves.
If you need more house (rather than the down issue) you can always do adjustables (including interest-only LIBORs or COFIs). Halves the monthly payments but huge upside risk. Face it, there's a lot more room for rates to go up rather than for them to go down. I'd say for a starter you should be limiting the risk with @ least a 5 yr lock if not 7. Because you never move as soon as you think you will.
But I don't think the house price is the barrier in your case...it's the down.
Good luck.
and :werd: to everything LL just said. |
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| wmquan |
Sometimes it takes some strong concentration and a couple of years or so to work out a down payment. It's not simple, but it's doable.
I got out of debt in the late 80's, and my future wife moved into my rental apartment in late 1990. I was paying $1,550/month for a nice, roomy one bedroom apartment in downtown Manhattan (Battery Park City, a beautiful little enclave on the other side of the ill-fated World Trade Center and the World Financial Center). I didn't have much savings to show for it.
Our savings rated started going negative with her spending added to mine. So in 1991 we bit the bullet and moved to a so-so neighborhood in Queens, for about half the monthly rent. That stabilized our savings and we were able to save some, maybe a couple of hundred a month or so.
But in 1992 we cut our budget drastically and "lived without" a lot of things. We still were able to take one vacation a year (e.g. to Europe). But a lot of "luxuries" got cut. no fancy new consumer electronics, live with a slow computer for an extra year or two, reduce expensive dinners (go to the neighborhood diner instead of a Manhattan restaurant). At the end of our time in New York, we were saving well over $2k a month, and it really added up.
After we moved to the Seattle area (where prices have skyrocketed the last decade), we were able to make a larger than 20% down payment on a house. While cheaper than an equivalent house in New York, I also took a huge pay cut to move out here. Even with home prices beginning to stabilize in this area, our house is now worth almost twice as much as what we paid for it eight years ago, and last year we refinanced and cut our monthly payment quite a bit.
Looking back, biting the bullet was tough, but it was worth it. It also helped make my wife more frugal. :D Some husbands here would say that's an even more valuable commodity than the house! |
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| DaleB |
quote:
Originally posted by renov8r
........You can also do well be taking a house that has a "negative" (like only two bedrooms or old fashioned bathrooms) and turning that into a 'gem'. Yes, there are folks who would happily move into a two bedroom IF it was in a great location AND had some features that appeal to certain folks -- for instance you can relatively cheaply put in top end appliance and decorate like a magazine and make the garage look like something Enzo Ferrari would be proud to call his own -- you know who pay top dollar for such a two bedroom? A rich retiree! And THAT will be a GROWING market segment!
It is entirely possible to find a situation that will "work".
SHOP HARDER!!!
Interesting analysis, renov8r, seriously. But I would caution on the 2 br option, etc. A place like that might do well on Maui, Napa Valley, or the mountains, etc. but not in too many places in California, where a couple also have to commute to their jobs.
The biggest factor in determining where you live is your career. That option would suffer for resale because of a very limited market.
Many retirees can live almost anywhere, and afford nice new housing in new areas (I speak as I do it). I have no use for a 2br home with upgrades and a clean garage. Not when I can own a conventional home in a great community and secure good equity besides, and peace of mind knowing I have a property that will be easy to turn over.
Retirees with low income, who are at the point of not worrying about resale value, will live in mobile homes, condos, or townhomes where upkeep is low.
Or better yet, they move out of the state to places like Oregon, where nice homes are inexpensive, and you buy them to live in them, not to sell later. More upkeep, but now they can afford a gardener. |
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| laborlitigator |
| I agree with Dale, it's tough to resell a 2 BR, or a 1/1.5 Bath. |
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| laborlitigator |
| But the biggest factor: location, location, location. |
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| renov8r |
I was only using the "two bedroom turned into a gem" as one EXAMPLE of how you can take a negative and make it work.
I was not just making this up out of thin air -- I've seen it in my own town. Folks have transformed some two-bedrooms into homes that ARE more desirable than similar priced condo by concentrating on making it perfect.
The key IS location in the above case (and almost every other real estate deal). The retirees that have bought the 2-br 'gem' specifically want to be in this town -- maybe they are downsizing and want to be close to friends, or maybe they have grown kids (and grandkids) nearby.
The fact is that houses that might not be perfect for everyone often are exacty what someone really wants. Pick the house for the things that cannot be changed (location) and everything else will fall into place. Worst case, a future buyer tears it down, but the pay top dollar BECUASE of the location. In fact in my town that is what sets the "floor price" (which is now over $350K, for lots that can legaly hold a 2500+ sq foot house...). |
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| triple a |
Renting in this marketplace with interest rates the lowest they have been in 40 years makes no financial sense. You do not say how much you are spending on rent, but what ever you are, it is providing zero return.
Consider the opportunity cost of this money. It could be earning you value in the form of home appreciation. As others have said in this thread, consider a less than prestine or optimal home, but as LaborLitigator said...location, location, location. An make sure you look at homes that will have wide appeal for resale (3BDRM vs 2).
Also, on the topic of opportunity cost, you mention you have stock that has lost 50% of its value. How long are you going to wait for them to come back? There are a lot of stocks out there reaping mucho returns for their owners. Don't get emotionally attached to stocks. When they are not meeting your goals, get out. When they start coming back, you can buy back in. Better yet, use this money to support you home purchase.
Good Luck |
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| DaleB |
quote:
Originally posted by renov8r
I was only using the "two bedroom turned into a gem" as one EXAMPLE of how you can take a negative and make it work.
I was not just making this up out of thin air -- I've seen it in my own town. Folks have transformed some two-bedrooms into homes that ARE more desirable than similar priced condo by concentrating on making it perfect.
I am not saying there are not situations like that, but in most metro Cal areas it's rare. I do understand your point.
There are always unique situations that can arise, and given enough foresight one can take advantage of them.
In fact my the very first house I bought while still single was an early California house that was 2 Br/1 Ba. had a detached garage, 1/4 cellar, and a redwood tree growing in the backyard. It was only 4 blocks from San Jose City Hall.
I wish I had kept it, but I would replaced it a long time ago with a bigger home, for sure. It would have been easy since I could have paid it off in a relatively short time. Ahhh, hindsight! |
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| DaleB |
quote:
Originally posted by triple a
Also, on the topic of opportunity cost, you mention you have stock that has lost 50% of its value. How long are you going to wait for them to come back? There are a lot of stocks out there reaping mucho returns for their owners. Don't get emotionally attached to stocks. When they are not meeting your goals, get out. When they start coming back, you can buy back in. Better yet, use this money to support you home purchase.
Good Luck
Owning a home with increasing equity and having little money in stocks, is an advantage to renting and having money in stocks that still have not recovered your initial investment.
You can always work a 401K for your future, and not have it all in stocks. |
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| TheWorm |
quote:
Originally posted by triple a
Also, on the topic of opportunity cost, you mention you have stock that has lost 50% of its value. How long are you going to wait for them to come back? There are a lot of stocks out there reaping mucho returns for their owners. Don't get emotionally attached to stocks. When they are not meeting your goals, get out. When they start coming back, you can buy back in. Better yet, use this money to support you home purchase.
Good Luck
Good advice here. That stock COULD enable you to get whatever real-estate returns you'd get, PLUS what will probably be $30k+/year in interest deductions on taxes (almost a $15k after tax return in your bracket). Assuming there's a capital loss on the sale, you can use the loss to offset other cap gains from other stocks, or another $3k/yr deduction against regular income.
Grab a pencil and do the math...it might make more $ sense to cut the cord on the stock and put it toward the house. |
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| murray |
| I totally agree with the stock advice, but it isn't my call. It was my wifes (primarily) when we got married. She is emotionally attached to it, and nothing I can say changes her mind about this. I've just decided to forget it's there. |
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| keremoner |
Me and my wife are not exactly making tons of money (120K combined), especially for washington D.C. area. Other than our 401 plans, I lost all of my investments in the market ($210K !) in 2000/2001. I gambled on several tech stocks and got greedy when at first I made 125% on my investments (in 1999 when a chimp could have done the same!!). When I lost 60-70%, I decided to go for all or none approach and gambled even more severely on several companies in bankruptcy. The end result: Lost all my money. The moral of the story is to take the time tested advices:
Diversify your investments (stocks/bonds in different sectors, real estate, etc)
Put stop losses on your investments. Getting back a little is better than getting back nothing!!!
If you don't own a house, GET ONE IMMEDIATELY. If you like to pay unnecessary taxes to uncle sam, feel free to send me some of your money to me so I can get back some of my losses.:cool: |
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| Fireblade6 |
quote:
Originally posted by murray
I know this isn't really on topic for this section, but I thought most reads occur in here. I need advice from my fellow X owners. I live in So. Cal, am 29 years old, married, and earn about 150k per year. My wife makes much less, around 40k per year. Our income levels have changed lately for the positive, so I have only been earning at this level for about a year. We have 60k in cash, 250k in stock, and roughly 50k in other accounts that are not liquid. I want a house. I want a house so bad I can't see straight. I can't sell my stock, because it used to be worth 2x what it is now, and I have (a little) faith that it will go up, and quite frankly, I want to give it to my future kids.
Here is the deal: 95% of the places that I've looked at that I can afford are in worse shape then my apartment. I don't think I would move into them if the monthly outlay was a wash (and it isn't anywhere near a wash). What do I do? Do you all think prices will come down, or will they stay put as interest rates rise, making my situation even worse? I've really had it with this state. I just can't seem to make it here. I looked out in Valencia (for those of you who don't know where that is, it is the standard issue city that is 40-60 minutes away from where everybody works, but offers nice, less costly homes) and I can't even seem to swing the cost out there. The same builders in Valencia are building houses in Texas for 25% of the cost. I often wonder if I can't have a better life moving outta state, and taking a massive pay cut.
Murray-
You say you live in Southern California right??? If you do...I dont know what kind of house you are looking for and where you are looking at and the size...But just to let you know..I just recently boughta 3100 Square feet house on a 12,000 Square feet LOT for $614,000.00 in SAN DIEGO. San Diego has one of the HIGHEST housing in the state of California next to silicon valley area in Northern California.
With $60K, you can do an 80, 10, 10 real estate loan where you will put down 10%, take an 80 percent on the 1st and 10 percent on the second. Bank of America has this loan program. Wih both your income, am sure you can afford to pay around $3,000.00 to $3,400 per month.
Been buying houses for awhile...so there are A LOT of ways you can slice and dice a real estate deal its not buying a car where you put down a payment and you finance...its a little trickier and more create than that.. Anyways...Good luck |
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| murray |
| I guess paranoia has a bit to do with it. 3400/month is WAY to much in my opinion. What if I lost my job? I figure the total monthly output better be what I could afford it I had to start all over. Also, the 60k in cash it everything. I have a real hard time parting with my entire life savings.... am I just being stupid? What if property values drop 20%? |
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| RPitterle |
quote:
Originally posted by murray
I guess paranoia has a bit to do with it. 3400/month is WAY to much in my opinion. What if I lost my job? I figure the total monthly output better be what I could afford it I had to start all over. Also, the 60k in cash it everything. I have a real hard time parting with my entire life savings.... am I just being stupid? What if property values drop 20%?
murray -
If you lost your job, worst case you might have to sell your stocks. $250k of stock will make a 3500 mortgage payment for nearly 6 years! I hope you could find a new job in that time. Of course, a big mortgage requires financial discipline. If you haven't got it, forget a big mortgage. But if you can manage your money wisely, go ahead and get as big a mortgage as you can! Remember, as time goes on, your salary will increase, but your mortgage payment will stay the same. |
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| evoge |
If you need another vote for selling some stock, here's mine because I finally cut the cord on all of my tech "favorites" (way way way too late, like a dope, of course, but I'm now still much better off for it). No offense intended, really, but she or you would rather move to another state than sell just part of a languid portfolio?
I moved from NoCal to SoCal (before the move to W.Va. in 2001) and did well on each house--and they both would have been considered to be overpriced at the time. Job security and long-term (5+yr) plans always get figured into a home purchase decision. You have to live somewhere and a home in a good location is your best purchase. Fall and Winter are good months to make deals. Shop smart and keep saving! |
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| zubinh |
quote:
Originally posted by murray
I often wonder if I can't have a better life moving outta state, and taking a massive pay cut.
I love this cost of living calculator:
http://cgi.money.cnn.com/tools/cost...stofliving.html
About the stocks, how about using the margin borrowing power of the stock? You could take out $100k and your broker can get you a margin discount which would make the rate about 3% right now. |
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| Fireblade6 |
quote:
Originally posted by murray
I guess paranoia has a bit to do with it. 3400/month is WAY to much in my opinion. What if I lost my job? I figure the total monthly output better be what I could afford it I had to start all over. Also, the 60k in cash it everything. I have a real hard time parting with my entire life savings.... am I just being stupid? What if property values drop 20%?
Murray-
California real estate WILL NEVER drop 20% I can guarantee you that. I have been in California as long as I can remember...And California is THEE place to own any types of real estate. AS for the $3,400.00 a month mortage...am just giving you an example that's all. With the interest rate being an ALL TIME low...owning a 300K to 400K house will not put you in a position to pay HIGH mortgages. You need to consult with your finanical advisor or real estate agent in regards to what you can and cannot afford.
I for one if am in California, real estate is my main focus and not the stock market. Remember buying real estate really heavily rely on your FICO scores...The sweet spot where you will get the best mortgage rate is with a FICO score of around 750+. |
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| jswift2000 |
Murray,
LL hit the nail on the had - shelter some of the cash. If you cant find something you like, you can also buy a smaller home and remodel (you get what you want) or build a house, still getting what you want. The economy will turn around but its in a fragile year. The yields on the bonds are shifting, causing the interest rates to climb. However, as the rates begin to go up the fed has some concerns due to the frality of the economy. Try to get a loan now before rates climb but dont rush into something. Nothing sucks more than being stuck with something you're not happy with. I would also diversify some investments - start to move away from bonds (the whole yield curve think again) and start to watch the equities, maybe an index.
Good luck with the house hunt. |
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| mdxxxx |
quote:
Originally posted by zubinh
About the stocks, how about using the margin borrowing power of the stock? You could take out $100k and your broker can get you a margin discount which would make the rate about 3% right now.
murray,
zubinh makes an excellent suggestion. I think it may be a compromise the Mrs. can live with....:4: |
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| renov8r |
If you are currently a renter you probably have little experience with how even the best built, brand new house can AND DOES spring unexpected costs on to its owners. From neccessities (like something breaking), to 'natural disasters' (from bugs destroying your landscaping, to trees falling, to a windstrom blowing a trash can through your patio window) to 'upgrades' (that measn everything from window treatments to paint) to the random $500 trip to Home Depot or Costco, being a homeowners means LOTS more cash flows out of your pocket than when your a renter.
THe reason I bring this up in the context of a margin loan is that a margin requires EXTREME vigiliance. Sure, the rate is super low, as long as the prime rate is low, but the adjust those rates ALL THE TIME. Further, the VALUE of your STOCK changes ALL THE TIME. Combne these two sliding variable and you could face HUGE increases in the repayment and/or a MARGIN CALL -- the want ALL the borrowed money back! While some people can live with that, I could not.
I will stand by my recommendation to SHOP HARDER. Find a house that is "good enough" & that you FEEL (there is no magic to individual emotions) comfortable paying for. There ARE house that ON PAPER you can afford, but if you just can't stomach the idea of having that much money go to paying off the house nothing will change that...
Personally, I cannot stress how big a difference it made for us to actually get a BIG MLS sheet with LOTS of houses and then check 'em out. You see a lot houses in neighborhoods that are quite nice that simply need some updating. If the price is fair you can tolerate living there while you make it nice. You also see someplaces that ARE worthless - maybe the neighborhood is just the pits, maybe that house is structurally unsound, maybe it is too small to even add-on. Often these are WAY overprices too. You have to be realistic.
BTW The biggest factors in considering moving is obviously employement, but don't foget that if there are other things that keep you in CA (like weather, lifestyle, family) you will NEVER be happy about a move...
quote:
Originally posted by mdxxxx
murray,
zubinh makes an excellent suggestion. I think it may be a compromise the Mrs. can live with....:4:
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| BaldEagle |
Murray, your dilemma brings back similar fears I also had at the age of 29 and about to buy my first home. That was 1976 and I thought there was no way I could afford those $350 a month payments...I now look back on that decision to buy that first house as the best financial decision I have made. The house payments ($350) increase vrs rent ($200) were mostly offset by the tax advantages of home ownership.
Because of the tight financial situation that the first home I bought created I was forced to develop DIY skills to make improvements to that home. In a little over a year after that first home purchase I was transferred and realized over $14000 in profits from that modest home purchase. Since then I have bought over 10 homes, usually involving DIY improvements, and always have made a lot of profit on the purchase/sale of those homes.
If I were in your situation I would probably sell a few of the stocks but hold on to as many as I could. The market has been down for long time and gains are long overdue. Look at any funds you do put into the home as a high leveraged investment that will help you diversify, a goal of all good investors. |
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| zubinh |
Gentleman I only suggested the margin technique if he really truly does not want to sell his stocks (which he stated he does not.) No matter how hard you try, you can never convince someone who is emotionally attached to a stock to sell it.
So, if he wants the house now and the stock price remains stable or increases, taking out a margin loan would make sense. He'll get a low deductible interest rate and if he's brave enough, he can even write covered calls on the stock.
Personally I no longer trust the stock market (IMHO short term fixed income and real estate rule) but since he wants to keep the stock, this strategy gets him the house and he keeps his stock. |
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| jswift2000 |
zubinh,
I oculdnt agree more - getting emotional over stocks is a bad combintation I have learned. |
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| murray |
SO. First off, thank you to everyone. I know this post is old, but I hope you all get to read this.
I did it. I close escrow on the 25th of Sept. We bought in La Crescenta, CA for 406,000. Nice place, needs a little work but not a ton. 1700 sf, great paint, open beam ceilings, hard wood everywhere, 3bd, 2bth, spa, 8k lot, built in 1953.
The plumbing is in need of attention, but not a big deal. It's half brand new, and half really old. To do it in total copper should be about 2k. The roof is rock (ugly), so that is second on the list. 7k should put me in a moderate quality new roof, and then... thats it!
I'm absolutely freaked out of my mind. The monthly's are 2139 + taxes. I'm positive I can afford it, even if I don't make a penny of commission durring any given year (if that happened, I would loose my job, and it won't happen).
Scary stuff. The X will have to live in a car port!!!!! :0
When I do the roof, I'll build a garage.
When I move in I'll try to post some pics... quite a bit off, but I'd like to show you all what your advice has helped aquire.
The deal with my wifes stock: I showed her the forum advice, talked to her mom, and we got a financial adviser to control all the funds. We didn't sell a penny yet, but we may soon, and that is OK by her.
Thanks a bunch for all the advice. I'll post pics asap.
--Jon |
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| trixie |
Many long resonses. Bottom line, you're a kid at 29 and happen to make the big bucks in CA. The banks have a ton of money for guys in your bracket. Depart CA and live like a king.
Being a CA native, I refuse to return. I just bought a house in Phoenix for a tad over $300K. The same house on the coast would easily cost a million. The crap that Californians put up with is not worth it. Take the cut in pay, buy twice the house, invest the difference in AC and a killer swimming pool. You'll have no regrets. |
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| mdxxxx |
quote:
Originally posted by murray
SO. First off, thank you to everyone. I know this post is old, but I hope you all get to read this.
I did it. I close escrow on the 25th of Sept. We bought in La Crescenta, CA for 406,000. Nice place, needs a little work but not a ton. 1700 sf, great paint, open beam ceilings, hard wood everywhere, 3bd, 2bth, spa, 8k lot, built in 1953.
The plumbing is in need of attention, but not a big deal. It's half brand new, and half really old. To do it in total copper should be about 2k. The roof is rock (ugly), so that is second on the list. 7k should put me in a moderate quality new roof, and then... thats it!
I'm absolutely freaked out of my mind. The monthly's are 2139 + taxes. I'm positive I can afford it, even if I don't make a penny of commission durring any given year (if that happened, I would loose my job, and it won't happen).
Scary stuff. The X will have to live in a car port!!!!! :0
When I do the roof, I'll build a garage.
When I move in I'll try to post some pics... quite a bit off, but I'd like to show you all what your advice has helped aquire.
The deal with my wifes stock: I showed her the forum advice, talked to her mom, and we got a financial adviser to control all the funds. We didn't sell a penny yet, but we may soon, and that is OK by her.
Thanks a bunch for all the advice. I'll post pics asap.
--Jon
Congratulations... enjoy.:29: |
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| DaleB |
quote:
Originally posted by trixie
Many long resonses. Bottom line, you're a kid at 29 and happen to make the big bucks in CA. The banks have a ton of money for guys in your bracket. Depart CA and live like a king.
Being a CA native, I refuse to return. I just bought a house in Phoenix for a tad over $300K. The same house on the coast would easily cost a million. The crap that Californians put up with is not worth it. Take the cut in pay, buy twice the house, invest the difference in AC and a killer swimming pool. You'll have no regrets.
Unfortunately, jobs largely dictate location. Life in the Central Valley of California will also get you a similar quality brand new home (2000 s/f) w/pool for 300-320K.
Summers are very hot, and air quality in an agricultural center that is set in a valley, is not the best. Yosemite and skiing is less than 2 hours away and other beautiful national parks in the Sierras are only an hour away. Lakes are not far and Indian casinos abound and completion of a multi-million dollar sports and entertainment arena nears completion. Grapes grow in abundance, and some top-rated wineries are within an easy drive. Monetery is just over 2 hours away.
Major industries are largely service-oriented, and high tech is limited to a couple of communication companies.
Medical care is good, and there several highly recognized specialty clinics in north Fresno.
Public schools (Clovis) are among the few top rated in academic achievement for the state.
The airport only supports about 3 airlines (hops) and the price of fares are astronomical. That will have to change as the population grows in leaps and bounds.
I am also dabbling in real estate until this fantastic growth becomes too much to bear. Being retired gives me a big advantage, this is not the place for everyone. Those of us buying new homes are gradually pulling up the value of the older homes in the area. Which is good, because the wages in this area for the working person suck, so at least they can realize more value in their homes. So I will stay until this area starts to become another 'San Jose' and the streets are too congested, and Cal-Trans has still not woke up and widened freeways in time. Then I will live somewhere else where buying a house is buying a home, not an investment.
This is another area in California going in the same direction most do, and there are not many left. |
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| BlueStreak |
| If you can swing it and find it, but waterfront property. Doesn't matter where, condition of the house, etc. It will appreciate and reward you nicely when you sell. |
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| DaleB |
quote:
Originally posted by BlueStreak
If you can swing it and find it, but waterfront property. Doesn't matter where, condition of the house, etc. It will appreciate and reward you nicely when you sell.
No argument from me, defiinitely a goal. |
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| mdefrances |
Originally posted by trixie
Many long resonses. Bottom line, you're a kid at 29 and happen to make the big bucks in CA. The banks have a ton of money for guys in your bracket. Depart CA and live like a king.
Being a CA native, I refuse to return. I just bought a house in Phoenix for a tad over $300K. The same house on the coast would easily cost a million. The crap that Californians put up with is not worth it. Take the cut in pay, buy twice the house, invest the difference in AC and a killer swimming pool. You'll have no regrets.
I moved from CA to Phoenix and while I agree that one can get a very nice home here for half of the CA price, I miss the city life in San Francisco (when I was single) and Los Angeles. I don't get that "city" feel in Phoenix and its freakin' hot. Be careful what you wish for. A lot of Californians are moving out for a lot of reasons. Oh well, IKEA is building a new store in Mesa next year so maybe it will be ok.
MarkD |
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| evoge |
quote:
Originally posted by mdxxxx
Congratulations... enjoy.:29:
Murray:
What he said! Good to hear a story with a satisfying ending. :4: |
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