Would You Do It?

[Italiahaircolor]

Lately we''ve been seriously house hunting...thinking our expectations were pretty high we''ve procrastinated putting our house on the market fearing that we''d sell (maybe) before we found a place.

Well...today an opportunity presented itself and I''m really, really torn...

Our original dream was to buy a historic home, fix it up and live out our lives there...but in our area, "old money" owns the "old homes" and getting into one for under a million is unheard of and to be perfectly honest, we couldn''t afford anything that expensive comfortably. We have to be realistic, it isn''t just the cost of home it''s all the money that has to go into the house after buying it. It''s with a heavy heart that we opened up our search to other alternatives...

Our realtor, God love her, told us today about a foreclosed row home that just came on the market which is in our desired location for a "song" (outside of our historic DT area...so you could say it''s our second favorite area). In a healthy market, this home would have sold for 700k and maybe even more...in this market, and being foreclosed on, it''s really, really affordable. So affordable I doubt it will last long.

It''s in a better area that our current house in terms of amenities...it''s been well loved and upgraded to the max so I wouldn''t have to spend anything to update the house. The layout is much better than our current home. But it''s almost identical in square footage. It would also be a wash with our current home...we''d sell ours (hopefully) and buy this one without owing anything but also without making anything. i could essentially give my house away to make this one happen. This house potentially will be worth more than mine will ever be worth. But, and it needs repeating, it''s not an "upgrade" but rather a "lateral" move in terms of the space and finishes. The house isn''t historic, but in a country club/clubhouse community which is pretty exclusive. We''d have access to a golf course, 3 pools, tennis courts...none of which we have access to now. We''d be in the best school district.

So, heres the sticky stuff...and where I want opinions and advice...

1. It''s not an upgrade in a "nuts and bolts" kind of way...same sqft and finishes but a better area. We''d be trading historic downtown living for modern conveniences.
2. We''d carry two mortgages for ???? who knows how long. That could be doable but also stressful and nothing I''ve ever experienced before. It would certainly change things for a while.
3. We''ve been pre-approved but I don''t know if that is contingent upon the sale of our current home...a situation I''ve never been in before...

So....with that said, would you do it?!

 

[asscherisme]

Based on just the info you gave, No, I would not do it. The things that stuck out to me that would me me say no if it were my choice are:

1. Lateral move

2. Its still not your dream house or you first choice for location. You seem to have your heart set on historic district and conpromising on modern. But I think that since its not your first home, you would likely regret settling down the road.

3. There would be the stress of holding 2 mortgages for who knows how long in a buyers market.

I would hold off until you could get exactly what you want. It sounds like its not a job making you move, but rather just a choice that puts you in the drivers seat. I would not do it.

 

[Hera]

no, I wouldn''t:

1. You should sell your condo first because in this market, you might get less than you think. This would matter less if, you have a lot of equity, you can qualify for your pre-approval with BOTH mortgages, and you can go for an indeterminable amount of time (6 mos at least) to sell your current house.
2. When dealing with a foreclosure, the bank may not like a contingency on having your current home sell.
3. The house isn''t in your ideal location.
4. It''s not bigger
5. You don''t talk like you really like it.

btw, what happened to your butler''s pantry?

 

[purrfectpear]

I can''t help thinking it''s really strange that someone with money would constantly need to discuss it on PS as though they were incapable of making decisions on their own

It''s such a constant thing that one would almost think it was just an excuse to brag, but perhaps not. Perhaps you really can''t make decisions without running it past the crowd.

That said, since you just spent $100K on a birthday, which would have been a tenth of the cost of your desired million dollar home, maybe you should consider those things the next time you are tempted to go for show. It sounds as though you can have the big show or the big home, but not both. Just my take.

Either way, I''m sure we will continue to be regaled with more of these weighty decision that you struggle so mightly with

 

[Mrs Mitchell]

I had a situation along these lines a few weeks ago. I had sleepless nights going through the options in my head. Italia, only you can decide, but for what it''s worth, I decided to stay put because other than wanting the change and liking the other house, it wasn''t enough of an improvement or a change for the grief of packing everything I own into a box and moving (a few yards closer to the sea in my case).

I had to do the old pros and cons list on paper to realise that I was probably just a little bored with my current house, a bit out of love with it. I cured myself by visiting show homes on the newly built housing estates in the area. Everything I hate, all in the one place. Made me love my house again.

From what you''ve said, I wouldn''t make this particular move, but I would use every penny of surplus income to save for the dream home a few years down the road. It might happen quicker than you think and it''ll probably cost less in the long run, because you won''t be happy till you live where you want to. One big move instead of a few smaller ones, if you see what I mean?

Jen

 

[steph72276]

No!

First and foremost, carrying 2 mortgages is not a good idea, especially in this market and in this economy. Imagine if you or DH lost a job, then how stressed would you be? I know it''s not likely to happen, but you never know in a market like this. Second, it is not what you wanted, so you would probably have the urge to move again and upgrade in a few years, so you might as well just stay put for a while, let the market recover, and save for your dream house. I kind of agree (although without the harsh tone) with PP, in the fact that if you cut your lifestyle down, you could save for the house you really want.

 

[february2003bride]

I don't see why it being a lateral move is an issue unless you want to go bigger. If the layout is nicer (which makes a difference regardlesss of square footage), it's closer to where you want to be, and in a better school district, then I don't see why you don't go for it. If you can afford to carry two mortgages for x number of months or can rent out your condo enough to cover the current mortgage, and the new home would be your forever home then why pass it up?

ETA: If you don't LOVE the home then don't do it.

 

[Italiahaircolor]

Date: 11/28/2009 4:42:29 AM
Author: purrfectpear
I can''t help thinking it''s really strange that someone with money would constantly need to discuss it on PS as though they were incapable of making decisions on their own

It''s such a constant thing that one would almost think it was just an excuse to brag, but perhaps not. Perhaps you really can''t make decisions without running it past the crowd.


That said, since you just spent $100K on a birthday, which would have been a tenth of the cost of your desired million dollar home, maybe you should consider those things the next time you are tempted to go for show. It sounds as though you can have the big show or the big home, but not both. Just my take.

Either way, I''m sure we will continue to be regaled with more of these weighty decision that you struggle so mightly with

I can explain this to you...very easily...

I am very capable of making a decision on my home...and the only reason I turned to pricescope is because it''s very 6 of one half a dozen on another. I could go either way. This home is really lovely and priced to sell...so it will. I''m faced with making a decision in a very short period of time...it''s scary and overwhelming.

As far as "affording" my home...well, a million dollars buys you a two bed room ranch on a build-to-suite lot--this ranch is probably older, but not historic, it''s a tear down--a true historic will run you a million for land and another 1.5 for the house itself, it''s no joke. We''re not talking a move in ready home. So yes, a million is a tenth of the party I hosted for my husband (which I saved for over the course of 3 years)...but it''s not even close to what I''d need to buy the dream home when all was said and done.

Buying a home is a big decision...everything we''ve heard about the market can be debunked over the right home at the right price. Homes are still selling, and selling fast in the right conditions. If we move on this, we''d be smart to place an offer on this home this weekend. I''m sorry you''re bothered (obviously) by my open-questioning...next time, I suggest you skip my posting.

 

[Italiahaircolor]

Date: 11/28/2009 7:45:23 AM
Author: steph72276
No!


First and foremost, carrying 2 mortgages is not a good idea, especially in this market and in this economy. Imagine if you or DH lost a job, then how stressed would you be? I know it''s not likely to happen, but you never know in a market like this. Second, it is not what you wanted, so you would probably have the urge to move again and upgrade in a few years, so you might as well just stay put for a while, let the market recover, and save for your dream house. I kind of agree (although without the harsh tone) with PP, in the fact that if you cut your lifestyle down, you could save for the house you really want.

Crunching numbers, if we were able to take a 120 day contingency and then close...we could float the two mortgages...it would be less in savings, but not really compromising our "lifestyle" per say.

No, it''s not what our dream was. But to be honest...I''m bored. That''s the truth. Our plan was to update the house we have and sell it...that didn''t happen when the market fell off the cliff. Now I''ve got cabin fever...if nothing else, this home would be a good change of scenery. if I wanted to move in another couple of years...I really believe this home would be worth more than mine.

 

[NakedFinger]

The only thing that scares me is the two mortgages thing. I recently sold my home (about 5 months ago) and purchased a new one. The house I sold was in pristine condition. Everything remodeled, brand new everything, and we were told by every realtor that saw it that it showed great etc.....it still took over a year and a half to sell. I found countless homes that fell in love with during that time, and it took a lot of disappointment and tears with not being able to make offers, for me to finally realize i needed to just stop looking until we sold our house. Im glad we did, because we actually got an offer, went to contract, made an offer on a new house (that god we put in the contract that the purchase was contingent on the sale of our home), and then a week before we were supposed to close on both houses, the buyer of ours backed out and we had to pull out of our purchase. It was almost a year later that we finally got another offer, and thank god we didnt proceed with the other home, because I couldnt imagine having to pay two mortgages for over year. The second time around, we closed on our house, and then closed on the new house after (had to stay with inlaws for a few weeks in the interim, but it was worth it)

Sorry for the long winded post, but I guess Im just trying to say you never know how long it will take to sell you home in this crappy market, and you may be stuck with both homes longer than you planned.

 

[Mrs Mitchell]

Date: 11/28/2009 10:48:06 AM
Author: Italiahaircolor

Date: 11/28/2009 4:42:29 AM
Author: purrfectpear
I can''t help thinking it''s really strange that someone with money would constantly need to discuss it on PS as though they were incapable of making decisions on their own

It''s such a constant thing that one would almost think it was just an excuse to brag, but perhaps not. Perhaps you really can''t make decisions without running it past the crowd.


That said, since you just spent $100K on a birthday, which would have been a tenth of the cost of your desired million dollar home, maybe you should consider those things the next time you are tempted to go for show. It sounds as though you can have the big show or the big home, but not both. Just my take.

Either way, I''m sure we will continue to be regaled with more of these weighty decision that you struggle so mightly with

I can explain this to you...very easily...

I am very capable of making a decision on my home...and the only reason I turned to pricescope is because it''s very 6 of one half a dozen on another. I could go either way. This home is really lovely and priced to sell...so it will. I''m faced with making a decision in a very short period of time...it''s scary and overwhelming.

As far as ''affording'' my home...well, a million dollars buys you a two bed room ranch on a build-to-suite lot--this ranch is probably older, but not historic, it''s a tear down--a true historic will run you a million for land and another 1.5 for the house itself, it''s no joke. We''re not talking a move in ready home. So yes, a million is a tenth of the party I hosted for my husband (which I saved for over the course of 3 years)...but it''s not even close to what I''d need to buy the dream home when all was said and done.

Buying a home is a big decision...everything we''ve heard about the market can be debunked over the right home at the right price. Homes are still selling, and selling fast in the right conditions. If we move on this, we''d be smart to place an offer on this home this weekend. I''m sorry you''re bothered (obviously) by my open-questioning...next time, I suggest you skip my posting.

Italia, may I just say, whatever you decide to do with your home aside, you do have class.

Jen

 

[lyra]

I would also vote no. If it''s being foreclosed, is it because they couldn''t sell it? The bank may take multiple offers and go for the one with no subjects, ie not contingent upon sale of current home. It may take a long time to close on it at all, or even know where you stand. A lateral move would not be enough for me *unless* it was for a better location, which does not seem to be the case here. I don''t count shared amenities as a great thing, just my opinion. Do you have to pay a monthly association fee for these amenities.

If you really really just want to move, sell your house first. Rent in the event that your house sells before you can find a suitable replacement. At least in this scenario you might do better than just a lateral move. You''d be free to go into a new deal "clean", just based on downpayment and approval, no subjects.

 

[Mara]

Italia ... I don't think you said in your original post WHY you would want to make the switch. What would be the 'primary driver' behind making this move?

I ask because (and this is long, my apologies!), we were in a somewhat similar situation about a year ago and we did buy our house. We lived in a TH like you do (I think) and we loved it, but it was always a 5 year plan. However at 5 years the market wasn't great, we'd lost maybe $100k in value, still making a profit but not as much, but we decided to peek around and of course, we found a place we really liked.

It was the same square footage as our TH which was big for a TH, but not big for a house. It was more expensive, but the elementary school was highly desirable. It was in an area of town that is also more desired than our TH which was in a more urban, up-and-coming area still prone to high/low swings. It was totally remodeled (flipped by a realtor and builder actually), had a big front and back yard.

The downer was that we would have to take the previously converted family room and convert it back into a 1car garage, so we'd lose about 200 sq ft of the house space, making it smaller than our TH, and putting cash directly into the property immediately.

Anyhow, the reason we considered it was because we wanted to get into a house with a yard, we were considering starting a family and if we did stay in this house for 5+ years our child would go to the best public elementary in the area, giving us a 10 year plan in the home if necessary. Lastly, houses here retain their value and sell very quickly even in a downturn.

We went ahead and bought the house, holding both properties, closing within 30 days in the month of December, putting our house on the market, and paying two mortgages for almost 6 months. We added the garage back and lost the sq ftage.

It's been just about a year now and it has taken me that long to actually LOVE the house due to everything. It bothers me that we paid so much for a small house in a good area. There is no 'room to grow' here. We had to get rid of a ton of stuff to fit ourselves in here. We are having a child, it's 3/2 like our townhouse was, but it feels smaller in living areas. It IS cozy, the rooms are a good size, the house itself is beautiful, the remodeling worksmanship and the detailing on it is lovely, we adore the beautiful hardwood floors. The garage adds character to the house. It's a very cute place. If we had to sell today, we'd be ableto break even, if not reap a tiny amt back, and you can build UP onto the house, our neighbors did. The yard is more than enough for us to take care of.

But there have been MANY TIMES this year when I think back to the townhouse and wish we had not moved. Our mortgage there has adjusted to half of our new mortgage. As a result, most of my regret is centered around finances. Double mortgages for 6 months sucked. We rented the TH to a great couple, they take wonderful care of it, we will prob have to rent for at least another year before we will attempt selling again. But double property taxes this year is simply PAINFUL here in CA. If we hadn't moved, our savings would be so much larger, giving us more peace of mind mentally. Def think about job security, can you afford to pay double mortgages in case one of you loses a job?

Anyway this whole thing is why I ask WHAT your reasons are for wanting to make a fairly lateral move. For us it was a better neighborhood, more stable home value, potential great elementary for our child, and we both really wanted a yard. We loved our TH, the layout, location, everything, but it didn't have future elements we desired. So the sacrifice is worth it for now.

But if you don't have really solid reasons (for yourself) I would say pass on this place and keep looking. Mrs Salvo's famous tagline, a deal is only a deal if it's really what you want... totally applies here. If we had kept looking, we might have potentially gotten another 200-300 sq ft at same price with a garage if we had waited.

FWIW..my husband LOVES the new house and has really no regrets on us buying it. He is super happy here, loves the yard, loves crawling on the house and cleaning gutters, raking leaves, etc. For me that makes it more worth it, even on the days *I* was regretting our move. You don't mention your husband at all in your post...what does HE think about this place and your options?? That is important.

Lastly, I agree with whoever else said that the bank might not like your offer on a foreclosed property being either contingent (most of the time they won't take it) or giving you the house with your other one still attached to you. In our area, banks are hugely picky and sometimes they will even turn down people with $200-300k down on a $600k place in favor of someone with better lending values. Just something to think about as well.

 

[asscherisme]

Date: 11/28/2009 4:42:29 AM
Author: purrfectpear
I can't help thinking it's really strange that someone with money would constantly need to discuss it on PS as though they were incapable of making decisions on their own

It's such a constant thing that one would almost think it was just an excuse to brag, but perhaps not. Perhaps you really can't make decisions without running it past the crowd.

That said, since you just spent $100K on a birthday, which would have been a tenth of the cost of your desired million dollar home, maybe you should consider those things the next time you are tempted to go for show. It sounds as though you can have the big show or the big home, but not both. Just my take.

Either way, I'm sure we will continue to be regaled with more of these weighty decision that you struggle so mightly with

Wow, bitter and un-neccesarily harsh. No need to insult Italia. That seems to be sport to you- insulting others on this forum.

 

[radiantquest]

If it were me, and I may not be the best one to make decisions, but...

I think that you should put your house up for sale. It seems that you keep looking for houses and you seem to find them with no problems, but now you are wondering about selling your own.

Put your house on the market. Once you have a serious buyer then start to seriously look for another. Then the idea of carrying two mortgages will not be an issue. Once someone has decided to buy your current house it takes a little while for it all to be a done deal. Plenty of time for you to find another.

Thats just me and if my husband did everything I said tha that is what we would do. lol

 

[lilyfoot]

Date: 11/28/2009 11:30:32 AM
Author: Mrs Mitchell

Date: 11/28/2009 10:48:06 AM
Author: Italiahaircolor

Date: 11/28/2009 4:42:29 AM
Author: purrfectpear
I can't help thinking it's really strange that someone with money would constantly need to discuss it on PS as though they were incapable of making decisions on their own

It's such a constant thing that one would almost think it was just an excuse to brag, but perhaps not. Perhaps you really can't make decisions without running it past the crowd.


That said, since you just spent $100K on a birthday, which would have been a tenth of the cost of your desired million dollar home, maybe you should consider those things the next time you are tempted to go for show. It sounds as though you can have the big show or the big home, but not both. Just my take.

Either way, I'm sure we will continue to be regaled with more of these weighty decision that you struggle so mightly with

I can explain this to you...very easily...

I am very capable of making a decision on my home...and the only reason I turned to pricescope is because it's very 6 of one half a dozen on another. I could go either way. This home is really lovely and priced to sell...so it will. I'm faced with making a decision in a very short period of time...it's scary and overwhelming.

As far as 'affording' my home...well, a million dollars buys you a two bed room ranch on a build-to-suite lot--this ranch is probably older, but not historic, it's a tear down--a true historic will run you a million for land and another 1.5 for the house itself, it's no joke. We're not talking a move in ready home. So yes, a million is a tenth of the party I hosted for my husband (which I saved for over the course of 3 years)...but it's not even close to what I'd need to buy the dream home when all was said and done.

Buying a home is a big decision...everything we've heard about the market can be debunked over the right home at the right price. Homes are still selling, and selling fast in the right conditions. If we move on this, we'd be smart to place an offer on this home this weekend. I'm sorry you're bothered (obviously) by my open-questioning...next time, I suggest you skip my posting.

Italia, may I just say, whatever you decide to do with your home aside, you do have class.

Jen

+1

About your home, I think you should go ahead and put your current one on the market. See what type of interest it generates, and if any offers come in. Why waste money paying two mortgages? I know you said you're just bored with your current home, but paying two mortgages isn't a decision that should be taken lightly, and IMO, it's just unecessary.

Can you do small redecorating or rehabbing projects around your house or a relative/friends house to take care of your boredom?

eta: How is the real estate market in your area? Would you consider renting your house out if you were to buy the new one?

 

[exoticisabella]

You said that you thought this new one would be worth much more then your old one ever would be. Would it be possible for you to buy the new house and rent out the old? Then, if you find that you don''t llike your new area you could move back into your old house after the lease ends and use the new one as an investment (and rent it out for a while). My aunt was in a similar situation this year. She lives in a very nice area of SoCal and her neighbors house - which she loved - went into foreclosure. Long story short, she bought the house at 1/5 of it''s market value

and is currently renting it out. She said when the market returns she''ll either sell both houses and move to a different area or just sell hers and move a couple houses over! The only difference is that her house is paid for and she paid cash for the new house.

 

[MichelleCarmen]

I''d only consider if there is a high demand for rentals as you may find (as Mara did) that renting was the best option in her situation. Years back (about , my husband and I bought a second house while still prepping our first for sale. We lucked out in having our first house sold within a month. It was in a so-so neighborhood. Very cute 1930s home and at a great price. We THEN did this a second time around with the house we had purchased (that second home). Rather than sell it, we bought another home and rented that other house (didn''t even try selling it at first). We found it a PITA, but again lucked out and sold it as soon as we decided being landlords wasn''t a job for us. The ONLY reason things worked out to our advantage was the market was at it''s peak then and we made A LOT of money!

I wouldn''t do it now. Selling is difficult and renters can be a pain. . .AND you luck out IF you find a renter. There is a house down the street that''s been sitting empty and for rent for $2,000 because the owners couldn''t sell the house!!! What a bad situation to be in. Stuck paying that extra payment.

 

[lulu]

At your age (thirtiesh?) I would have said go for it, but only if it''s your dream home. I wouldn''t carry two mortgages for a lateral move. The other thing to consider is that real estate sales are always slow during the holidays. I''d put your house on the market after New Years.

 

[Rachel9]

If is not compromising your lifestyle and you both like it why not? Square footage would be an issue for me on this one though.

 

[Tacori E-ring]

sell your townhouse before you buy anything. Property is sitting for sometimes years.

 

[zoebartlett]

I wouldn''t do it because I wouldn''t want to run the risk of paying two mortgages if the townhouse doesn''t sell right away. Also, for me, I would rather move into a bigger place instead of doing a lateral move, as you put it. That wouldn''t bother some, but it would bother me.

 

[Octavia]

Italia, are you interested in this house because it''s what you want, or just because it''s available and cheap (for what it is)? Would you really use the amenities the community offers, or are they things that would be nice to have when people come to visit and would go unused otherwise? Are you going to get bored with this one in a couple years and want to move on again? I''m not sure that cabin fever is a good enough reason to buy a place you don''t really LOVE, and you do risk "the one" coming on the market after you''re stuck...since you have a perfectly good (if somewhat boring) place right now, obviously I''m on the side of sucking it up for a little while longer to keep looking for a place that''s more "Mr. Right" than "Mr. Right Now." But in the end, if you think that what it offers is worth it for you, that you can comfortably swing it financially if your current house takes awhile to sell, and that it would make you happy for longer than a couple years, then go for it. Only you and your husband know if it''s the right thing to do, really!

 

[Italiahaircolor]

Thank you everyone for your kind replies...

Here are the developments of the day...

This home is a former model. The builder went up in smoke when the market collapsed. The models are being sold off and this place just went on the market 5 days ago. We went and did a drive by today, we''re seeing it tomorrow. From what I was able to peek today, I love it...I really, really do. It''s perfect. Right off the home is huge pond, beach volleyball court and expansive club house. I''m less than 5 minutes from the grocery store, Target, and all the other things that make life easy. The neighborhood of row homes is small, and most of the area is developed custom homes. It''s not the type of place that would **depreciate** in 3 or 4 years. It feels safe.

I am also concerned about the double mortgage. It''s doable, and we''d still be comfortable...but it''s none the less a scary prospect because I do own another place that is rented out through 2011. I would essentially be carrying three mortgages. We''re unable to rent our current home due to the rules of our ASSociation. They are very strict. I would rent this place out in a minute to spare myself the headache of selling it off...but they are so by-the-book that I fear we wouldn''t get away with it. I will contact them on Monday to see if we have any wiggle room, possibly the ability to be Grandfathered due to length of time my DH has owned this place.

Here is my motivation to sell....

This was NEVER my home. I live here, but it belonged to my DH before he met me. Yes, I''ve gone through and gutted the place to make a home out of the house...but it still doesn''t, and probably never will, feel like MY place. Nothing about this development would have appealed to me walking in off the street, you know? I guess I always dreamed we''d get married and get into a place we were both thrilled over. But, the market has been a big snag in my plans. I don''t hate this home, I really don''t...and if this place doesn''t work out, I''ll contently continue looking and living here...but I want more. Maybe that''s greedy...maybe that''s silly...but I cannot tell you how excited I''ve been over the last few weeks looking for "our first home together".

I don''t mind being in a row home...I like not having the yard and not having to worry about maintenance. Moving to this place wouldn''t bother me if I could get the "t''s crossed and i''s dotted". Is it the big stately manor of my dreams...no. But it''s still a fantastic home. I feel like it''s more of a launch pad than this home is. I don''t feel like I''m settling and I guess thats why I''m driven here. I feel like, in the important ways, we are upgrading--better amenities, nicer finishes (like a fireplace--we don''t have a fireplace).

So...I''ll update again tomorrow once I''ve "breathed it in" and laid it out in my own way...please give me some PS dust...I''d really like for this to work out.

 

[HVVS]

1. It's not an upgrade in a "nuts and bolts" kind of way...same sqft and finishes but a better area. We'd be trading historic downtown living for modern conveniences.
2. We'd carry two mortgages for ???? who knows how long. That could be doable but also stressful and nothing I've ever experienced before. It would certainly change things for a while.
3. We've been pre-approved but I don't know if that is contingent upon the sale of our current home...a situation I've never been in before...

responses to:
1. -- If you don't actually need more sq ft, I don't suppose that matters. If this property is part of the golf course community, be sure that you look at all of the extra fees that entails and whether or not you want to be stuck paying them forever, as well as all the homeowner restrictions about what types of vehicles you can drive there, etc. Some of those communities have too many ridiculous restrictions, and restrictions might reduce toe potential number of buyers. Also, what kinds of people live there? Is the demographic there so narrow in any way that it might make the potential resale take a long time, or you'll perhaps never find a buyer if you want to unload that property for a better opportunity? Historically, there were only two housing value booms in US history: postwar '40s to '60s, and the last '90s - 2000s one that went bust. Last time I looked financial experts don't predict another such housing value bubble will occur. Therefore, do not buy a home expecting to have it increase in value or that you'll be able the flip it for a profit. It may not happen. You may have to sell it at a loss.

2. NEVER NEVER carry two mortgages. I know people who are now literally days from bankruptcy from 3-4 years of owning two houses when they were certain that they could sell the old one, but it didn't sell.

 

[MichelleCarmen]

Date: 11/28/2009 11:33:34 PM
Author: Italiahaircolor
I am also concerned about the double mortgage. It''s doable, and we''d still be comfortable...but it''s none the less a scary prospect because I do own another place that is rented out through 2011. I would essentially be carrying three mortgages. We''re unable to rent our current home due to the rules of our ASSociation. They are very strict. I would rent this place out in a minute to spare myself the headache of selling it off...but they are so by-the-book that I fear we wouldn''t get away with it. I will contact them on Monday to see if we have any wiggle room, possibly the ability to be Grandfathered due to length of time my DH has owned this place.

It''s probably NOT a good idea to consider buying a place that would be making you responsible for a third mortgage. Even having two is extremely risky, but three???

 

[Mrs Mitchell]

I think that carrying more than one mortgage is only risky if you''d be paying one out of savings rather than income. I carried three for a few years, one appartment, one cottage and one house (that we lived in). The appartment paid for itself with rental income and the cottage was on the market for a long time, but we could cover the relatively small mortgage out of our salaries, so it wasn''t putting us at risk or using up savings. It wasn''t a great situation, but it wasn''t the end of the world either. I would say that if you can afford it and still cover contingencies, then not so much of a problem. I absolutely wouldn''t risk paying out savings though, because they''ll run out eventually and you don''t know how long it will take to sell.

If the house you''re in right now isn''t home, I''d say move. The reason we bought our house and put the cottage on the market was that the cottage was DH''s home before we were married and it never felt like home for me, however much I changed things around. It was also 16th century and colder than most domestic freezers...

You''ll get a better feel for it when you view, but it really does sound like you''re keen on this move, so if you can do it comfortably, got for it!

Jen

 

[zoebartlett]

I know it''s hard to love a place that doesn''t feel like home, and I understand the need to feel like a home is yours too, not just your husband''s. As hard as it would be to stay, that''s what I''d do if I were in your shoes. Personally, I''d MUCH rather stay somewhere and know that I was in a good place financially. If you move, you could potentially be responsible for three mortgages, as you mentioned. That just seems SO risky to me, even if you''d be okay financially. Anything can happen at the blink of an eye, and I wouldn''t want to be in that situation.

 

[NewEnglandLady]

I think the sheer amount of debt you''d be in by taking out a third mortgage would be too risky. It sounds like you really do like the townhouse, and I also get the sense that you are used to having what you want

, but the bottom line is that being in that much debt is scary. I know that it would only be temporary, but you would still have the first mortgage(that is being rented for then next 2 years). Do you possibly have enough in savings to pay the first mortgage off? Then you could sell your current place and if this townhouse is still on the market, then you could consider purchasing it.

I definitely understand how difficult it is to pass up a house you love because you don''t want to put yourself at risk financially. I''m sure that you and your husband will decide what is best for you and I wish you lots of luck! My head is pounding at this moment from analyzing houses all day long--it can be really stressful!

 

[Italiahaircolor]

Date: 11/29/2009 6:27:59 PM
Author: NewEnglandLady
I think the sheer amount of debt you'd be in by taking out a third mortgage would be too risky. It sounds like you really do like the townhouse, and I also get the sense that you are used to having what you want

, but the bottom line is that being in that much debt is scary. I know that it would only be temporary, but you would still have the first mortgage(that is being rented for then next 2 years). Do you possibly have enough in savings to pay the first mortgage off? Then you could sell your current place and if this townhouse is still on the market, then you could consider purchasing it.


I definitely understand how difficult it is to pass up a house you love because you don't want to put yourself at risk financially. I'm sure that you and your husband will decide what is best for you and I wish you lots of luck! My head is pounding at this moment from analyzing houses all day long--it can be really stressful!

I think it's important to understand, two mortgages--while scary, wouldn't be a huge hardship. We have enough flexible income to float the two until our current home sold...and my condo, which is my solo mortgage, is rented out for more than the monthly mortgage payment so it's a nonissue. I am not in a tight position when it comes to finances which is why we can even entertain this thought. Still, it's a consideration and we'd be stupid to not pause to consider the implications of this. The only thing that would be effected by supporting our two mortgages would be our "free money" ... we'd still be able to save, spend and have reasonable fun...but, no big birthdays anymore!

Am I used to getting my way? Well...sometimes. It's frustrating for me that you would "wink" at that...but the fact is, I work extremely hard and my lifestyle reflects that. IT ISN'T A BAD THING. I'm a healthy mixture of saver/spender. And if I see something I want...I go for it. Our debt to income ratio is extremely low...and that's because we do make smart choices. I would never jeopardize all we've worked for. But, for example (and I am using fake numbers to make my point)...this town home is currently listed for 500,000 only one year ago it was listed and sold for 640,000. The owner, who was the sales manager for the builder, went under and the home was lived in for a mere 6 months before being repo'd. Homes in the area, not under foreclosure, are selling for around the 640 mark. 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.