Would You Do It?

[pennquaker09]

How much square footage are we talking about?

 

[crown1]

Date: 11/30/2009 12:43:42 PM
Author: Italiahaircolor

Date: 11/29/2009 10:16:36 PM

Author: Mara

Instantly upon moving in, we''d have a grand total of 140k in equity if we didn''t use a down payment (which we are). Do you see the ''smart buy'' here? Considering the house is move in ready, it''s an even better deal. Even if I had to float two mortgages for a year, I''d still be ahead.



__________



Well actually, you wouldn''t have anything in equity technically until you sold the property and were holding that $140k in your hand. And even then after realtors fees etc it might only be like $100k.



If you guys floated two mortgages for a year ...using funny money numbers here... but lets say 2k each mortgage, then the actual situation is you guys have paid 24k cash out of pocket for the 2nd mortgage; and you might have 140k in the house but if you haven''t sold it, it''s not your cash yet.



The house might be a ''great deal''...but it''s all just funny money until the house has sold and you may not resell it for a few years as well. I would buy the house if you wanted to live in it now and think it will appreciate over time. But yeah selling right now could be a PITA for sure. That''s why we decided to rent ours.



What does your husband think? You mention him not letting *you* make an offer until you''ve seen it... does he have an opinion either way?



And again this might all be a moot point because even if you guys offer, foreclosures are so iffy. But good luck either way.

My husband wants me to be happy...he''s extremely easy going and laid back by nature. I am the decision maker, although I do depend on his input on these large purchases, he''d never ''tell me no'' if this is something I really want. Mark is equally impressed by this home...and he''s excited about the potential golf course, gym, club house and all the other perks of community living. He sees the benefit and he''s all for it as well...just not until we''ve actually seen the home...however, this morning he did call the agent and ask to see ANY other row home in the development to get a feel for the floor plan and then we''ll put in an offer.


As far as the equity...maybe I said that wrong. My current home has (for the sake of the posting) 50k in equity. My DH bought it at the peak of the market and paid full asking. This new home we''re looking at is 140k below ''fair market value''. So...even if I had to ''give my house away''--making just enough for realtor fees, the new buyers closing fees and what not, I''d still be moving into a new home that, brand new, was worth more than mine will be 5 years from now.


The flip side is, my DH and I have been saving to buy a home for a couple of years now. We''re not talking putting our pennies in a jar either. We''ve realized what it would take to get into what we want and we''ve saved hard. We have a comfortable nest egg that we wouldn''t need much of to get into this new home, leaving a nice cushion for ourselves in the interim months that may leave us floating two mortgages.


My condo is in a desirable area right by a college, a 15 minute drive to down town Chicago and a 5 minute walk to Lake Michigan. Being more than a one bedroom, I have never had issue finding tenants. Selling it is never something I''ve entertained before...but if 2011 changes my circumstances, I would happily unload it if need be...but as of right now, I really don''t look at it as ''debt'' because it''s actually bringing in a healthy income.

did you once mention being involved with a medical building of some kind?

 

[Rachel9]

Date: 12/2/2009 4:49:22 AM
Author: pennquaker09
How much square footage are we talking about?

I'm not Italia, but I believe is the same as current condo. That would be A total dealbraker for us. I'm sure this is not her case but were we live a condo isn't desirable for some reason, most couples in our age group want: location, extra room and land. Yeah a bit more $ but much better results IMHO. But again, every couple has their own dynamics.

 

[AprilBaby]

Given that we live in the same town, and I have a good idea where you live now, I think I can best answer your question. Your current home is in an EXCELLENT location and should sell rather quickly for a good price. Especially with spring coming. Homes in the area outside the downtown are at a low point because of all the foreclosures. I think you should jump on something you find as the value if you stay more than 3 years should be up considerably. But remember location, location, location. The closer to downtown, the more your value will rise. I am 1 mile south of NCHS. My neighborhood has barely suffered in the downturn. If you find something good, GO for it! I don't really think in this town you could go wrong. And stay in 203. You won't regret it.

PS. the president is giving an $6400 incentive to trade houses, can't go wrong with that!

 

[Italiahaircolor]

Crown--

Yes, I am half owner of a medical building currently. My father bought the land and built the building many years ago before the area was developed. As graduation gift, he sold me part of land and building for $1.00. In another three years, when my sister graduates, she will buy into the building as well. Long term, my father will retire in 6 years and we will sell the land and building and take away a hefty profit. As opposed to gifting money at the time we graduated, he gave us an investment....similar to a parent buying a child a bond or stock, this was a more secure way to provide for us in our future since at the time real estate was considered a "sure thing". Since the building is "paid off" it is considered an asset, I do not carry a mortgage on it. It''s works for me, not against me. It is not liquid, but is in my financial portfolio.

April--

We would moving into district 204. I grew up in 203 and went to NCHS myself so I am familiar with the district. District to district is somewhat of wash since both are highly successful. We don''t have children right now, and if we do at some point in time we can always look more seriously at school systems at the time. We''re more driven by amenities right now.

 

[tigian]

Any updates Italia?

 

[Italiahaircolor]

Date: 12/4/2009 11:51:53 PM
Author: tigian
Any updates Italia?

Yes...not good either...

First of all, we put in an offer with a contingency that we needed to sell our house first. They rejected it. Love our offer of money...loved the terms of our offer...but they won''t "hold" the house...

Our house is going on the market Thrusday and if it sells quickly, we are offering a 15 day closing...we will resubmit an offer if it doesn''t sell. We are not going to carry two mortgages...so please, any house selling dust would be greatly appreciated.

 

[Tacori E-ring]

Is this a banked owned house? I forgot if you said. They aren''t very flexible with conditions.

 

[packrat]

I hope it works out for you Italia!

 

[Clairitek]

Hey Italia!

I was wondering how things were going with this situation. Do ya have ano update for us??

I hope you''ve seen some interest in your current home.

 

[Italiahaircolor]

No...no updates, really.

Our house is on the market with no activity--the holidays I believe. But our agent is a PITA and that will have to be addressed soon....