Buying your own house

[mia15]

Reading these boards makes me wonder: how many any of the ladies here bought their own house or think about it all the time?

Maybe it''s because it''s a major purchase requiring much research and care (like diamonds), or maybe it''s my because of my own precarious housing situation in a major, totally unaffordable place, but I find myself pondering this while I should be deciding on diamonds.

How many of you decided to buy a house/apt. alone (single or not) in a major city, or have moved away from that lifestyle to pursue homebuying on their own? Is there any hope for a city dwelling freelancer? I would love to hear any your thoughts on the subject.

 

[diamondfan]

I have a girlfriend who is single and has a great job with a major company in LA. She bought a home by herself, a bit far from her office, and has been so great with the real estate (she seems to buy in up and coming areas, buys a house that is not that nice and then fixes it up, and then sells at a nice profit, all this while working a major job)...I tease her that this "hobby'' she is doing in her "spare time" is turning out to be quite profitable. She is on her third house, and it is so amazing...she keeps buying closer to her office (more high valued neighborhoods) and has done this all on her own!!

 

[movie zombie]

i bought a very small home on my own in 1993.....and moved out of the bay area into the mountains when i did so. however, i still did the commute [45 minutes one way] to work. i had no plans to remarry...wasn''t even dating anyone. and i didn''t know anyone in the area i moved to. i also had not been bitten by the fine jewelry bug: however, no matter how fine the jewelry, it isn''t a roof over one''s head. personally, if i had to make a choice, i''d buy a home rather than bling. if you can afford both, then why not?

movie zombie

 

[Gypsy]

I have a single friend whose family owns a jewelry store... she was bitten by the bug early. She bought a Patek Philippe all diamond watch before she bought a house. I told her she was crazy. She finally did buy a house though-- a new construction with all the bells and whistles (she's a bells and whistles type lady in everything she owns)... and refused to sell the watch to get it. Personally I never would have bought the watch first and would have bought a house ASAP-- she was making about 120K a year at that time (student loans long gone) and still paying rent for a two bedroom two bath apartment. Complete lunacy IMO. But that's me. My own space and home are paramount to me. But she has both now... so I don't see how it mattered in the long run. So whatever floats your boat.

 

[portoar]

I bought my first place on my own when I was 31. I had previously jointly purchased a gorgeous 1910 home in Berkeley, CA with a boyfriend . . . but even as we were going through escrow I knew I was going to leave him, so we didn''t own that place for long. Don''t miss the guy, but oh, I wish I still had that house. I then bought a condo on my own, had it for a few years until I married and had 2 kids, then that place was too small so I sold it.

I would prefer to own my own real estate, but at the moment, I don''t. Since you''re talking about living in a high cost area, is it California? If so, do a search under California Housing Finance Agency; there are loan programs with below market interest rates for first time homebuyers. And the market is sluggish, especially the attached housing market, so it''s a good time to buy (buyer''s market).

 

[Dancing Fire]

Date: 6/6/2006 1:44:54 AM
Author: portoar
I would prefer to own my own real estate, but at the moment, I don''t. Since you''re talking about living in a high cost area, is it California? If so, do a search under California Housing Finance Agency; there are loan programs with below market interest rates for first time homebuyers. And the market is sluggish, especially the attached housing market, so it''s a good time to buy (buyer''s market).

portoar

a good time to buy? you think the Ca housing market is sluggish now? give it another 2-3 yrs and you will be in shock!!

 

[jadeleaves]

I bought my first apartment in an inner city suburb in Melbourne when I was 21.

Granted, I had help in the form of an inheritance I got when I turned 21, but I also rented out rooms in my apartment to help pay off the mortgage, and then I plonked whatever extra money I had from working part-time onto the mortgage as well.

It was probably the best thing I ever did, because that first purchase enabled me to use the equity in it to buy my 2nd place, and so on. I was scared to death when I bought the first place, because I was still a student and working part-time, but it all worked out. You just have to decide where your priorities are. Lucky for me, I wasn''t that much into diamonds then

.

I have been taught from a young age to hang onto properties and rent them out instead of selling it to make a profit, and that has worked for me so far - a girl needs to sustain her diamond buying habits somehow

 

[littlelysser]

My Fi and I bought a house two years ago, before we were engaged. I am so glad we did it. It is nice to own a place, and beyond that, you have to figure that with every mortgage payment you make you are saving money. I love it.

I thought about buying a home on my own, but I must admit, I was unsure that I could handle all the maintanence, costs and other issues you don''t have to even begin to think about when you rent. I probably could have done it, but I was a chicken.

 

[portoar]

Date: 6/6/2006 2:06:49 AM
Author: Dancing Fire

Date: 6/6/2006 1:44:54 AM
Author: portoar
I would prefer to own my own real estate, but at the moment, I don''t. Since you''re talking about living in a high cost area, is it California? If so, do a search under California Housing Finance Agency; there are loan programs with below market interest rates for first time homebuyers. And the market is sluggish, especially the attached housing market, so it''s a good time to buy (buyer''s market).

portoar

a good time to buy? you think the Ca housing market is sluggish now? give it another 2-3 yrs and you will be in shock!!

DF, opinions vary widely on the real estate bubble. Yes, of course I think the market is sluggish, this is my business, I live it day in and day out. Inventory is up up up . . . and in some areas, prices are down (in some areas prices are still up). In general where I live housing is still appreciating, but at single digit levels rather than double digit.

I have clients contact me who are worried about "a 50% price adjustment" or that "prices will go down to ''02 levels" -- I have no idea where they get their scary statistics. I have one client who has been talking about prices going down "$100k a month" in his neighborhood and he always sends me stats which do support the trend I''m seeing but don''t bear out his claims.

What exactly do you think is going to happen in 2-3 years? Do you think we''re going to have a crash similar to ''89?

 

[decodelighted]

Date: 6/6/2006 12:34:44 AM
Author:emeraldlover
Is there any hope for a city dwelling freelancer? I would love to hear any your thoughts on the subject.

Hi Emeraldlover!
You could be me just about four years ago. I''d lived in Brooklyn for ten years, freelancing around, saving money & when I finally had enough for a downpayment -- my beloved neighborhood had gone through the roof price-wise. I started looking for homes further & further out from the city ... but commuting distance. Had brief flirtations with a Vermont farmhouse & a Berkshires Cape ... then re-discovered the Hudson Valley in a two month "trial". Rented a house out of the Village Voice I think -- hauled myself & my two cats up here and "felt it out". By the end of the first month I was house-shopping in earnest. At first I thought I''d find away to keep my bargain Brooklyn rental & be a weekender - but that was more $$ & hassle than seemed worth it. Closed on my house in the Summer of 2002. Since then I''ve: gotten a dog, gotten a hammock, been laid off from a long term freelance job, struggled, undergone "personal coaching", gotten even better gigs than I used to get, dated Country Boys, dated ex-City Boys, and found The One (who grew up here but spent the last 10 years working all over the country). Now I''m engaged, gettin'' hitched in October & the house is full up of FOUR cats & the tiny dog. Also: currently struggling to make ends meet job-wise. Freelancing long-distance from the city is a BALLS OF STEEL deal. Sometimes I have so much work I''m turning things down to stay sane & have a life ... sometimes the dry spells are months long. If you do it - live below your means. Buy a smaller house than you can afford (because the taxes go UP UP UP, and so do you monthly payments). Keeping your city friendships is way more work too! Some people will think you''re abandoning them ... But I have the same three best girlfriends that I did when I lived in Brooklyn now. All our lives have changed ... and they keep changing. Even if you stay still, everyone else moves.

If you have any specific questions - I''ll do my best to answer.

Deco

 

[Dee*Jay]

I bought my own first condo when I was 22 in a downtown urban market. The mortgage, assessments and taxes were only about $10 more per month than I was paying in rent for a smaller apartment at that time, so it made a lot of sense. It was a bit of a sturggle finding the $ to put down at that time but I was so glad I did it! Kept it until I got married 6 years later and made a hefty profit.

Since then I''ve made my husband move 5 times in 7 years. Can you say "Dee*Jay is a real estate junkie too!"

 

[VegasAngel]

I bought my first place (Condo) when I was 21. Nobody helped me financially. I called a realtor, told them I needed somewhere to live quick, 2 months later I"m in my new place. I sold it last year because of the HOA. My husband and and I want a bigger house, but for now we have to forget about it. 1) We wouldnt be able to buy a home in an area as nice as we are in now, 2) House prices are rediculous starting at around 300,000 I think. There are lots of houses for sale here right now, but folks are asking waaaaay too much. They don''t understand the market has evened out. People should be defaulting on their loans soon, thats when we will look.

 

[Tacori E-ring]

I was 22 when we bought our house. (My credit was better so it was in my name alone). Financially we were also on our own. We did an 80/20 to avoid a down payment. I found it surprisingly easy to be approved for a loan.

 

[lilmaria]

I too, had an 80/20 for credit and down payment reasons. We bought our house last year. It''s in my name b/c of his ex-wife, but I am so happy we did! We were only 25 & 27 (me & him respectfully), so it was a big deal for us. There is only one other couple in our friend circle who owns their own home. I feel ike it was a great achivement and I no longer have that dreaded feeling of throwing money out the window with the rent. I get excited about paying the mortgage!!! yipee.

 

[Dancing Fire]

Date: 6/6/2006 9:50:13 AM
Author: portoar

Date: 6/6/2006 2:06:49 AM
Author: Dancing Fire

Date: 6/6/2006 1:44:54 AM
Author: portoar
I would prefer to own my own real estate, but at the moment, I don't. Since you're talking about living in a high cost area, is it California? If so, do a search under California Housing Finance Agency; there are loan programs with below market interest rates for first time homebuyers. And the market is sluggish, especially the attached housing market, so it's a good time to buy (buyer's market).

portoar

a good time to buy? you think the Ca housing market is sluggish now? give it another 2-3 yrs and you will be in shock!!

I have clients contact me who are worried about 'a 50% price adjustment' or that 'prices will go down to '02 levels' -- I have no idea where they get their scary statistics. I have one client who has been talking about prices going down '$100k a month' in his neighborhood and he always sends me stats which do support the trend I'm seeing but don't bear out his claims.

What exactly do you think is going to happen in 2-3 years? Do you think we're going to have a crash similar to '89?

portoar
no....not 50% price adjustment

i'm thinking more like 30% in the next 4 yrs as the fed keep on raising interest rates.many people with ARM & interest only loan will not be able to afford the higher payments,this will cause the biggest loan default in history. these type of loan which took the Ca housing market to the moon will also bring it back down to reality.

 

[firebirdgold]

I''m on my second house. The majority of my savings are in my house, which considering that my neighbors place is on the market for twice what I bought mine for is looking like a genius idea for me! Although that type of price increase is not at all normal. I think it''s because my neighborhood is slowly but surely moving from residental to offices since we''re 1 block from the capital building. The last house like mine to sell is now a gas/oil lobbiest office.

If my neighbor''s place does sell for anything close to their asking price, mine''s going up on the market the very next day!

If you can at all afford it, I really recommend getting your own place. Of course these days the market seems really high in most places. I can''t see how the disparity between rental prices and house prices can stay like this. While I''m not seeing any signs of a bubble bursting, I have noticed that there are a lot of houses both in my neighborhood and my bf''s that are on the market.
Not only would you build equity instead of seeing your rent money go bye bye forever, but you get a pretty nice tax refund because of the intrest payments. Even though combined we could buy a nice house outside of town for cash, he wants a mortgage just so he can get that refund!

 

[mia15]

I just wanted to say thanks for all the replies - I''m finding it pretty cheering right now. I''ve enjoyed reading everyone''s posts, and Portoar, thanks for the tip. I''ll be checking it out. I''m in the very beginning stages of research, finding myself in a new place I never thought I''d be thanks to my wonderful fiance.

Decodelighted - it''s so good to know that it can be done! As an East Coast transplant to LA, all the places you mention are like music to my ears. Being in the arts, owning my own house would be literally one of the biggest accomplishments of my life. I haven''t even begun to research how the mortgage company would view a freelancer as a loan risk, but I have a feeling it''s uphill work.
But seriously, are you a long-lost twin? I''m on the way to doing so many of the things you mentioned, dreaming about having a dog, coming to terms with the fact that I probably can''t be a "weekender" and scouting more affordable areas.
Was it all incredibly difficult? That''s what I''m wondering, though I know that it''ll be worth it.

I''m so impressed and inspired by everyone''s stories and thank you all again!

 

[portoar]

Emeraldlover -- you want to check out a website called www.acornhousing.org. This is a non-profit program to help people get into their first home. You have to attend two workshops, the first is about 2 hours, the second is a one on one appointment with a counselor; they preapprove you and forward your file to a participating bank (around here it would be B of A or Citibank). As long as you don''t make more than the income cap (which in my area is over $90K), you can qualify for a significant discount on your interest rate (.75-1%) and be able to get into a GOOD loan program -- fixed rate with a 10 year interest only option.

It''s a little extra work because you do have to go to the two workshops, but boy is it worth it.

If we were still allowed to PM, I''d send you more info.

 

[mia15]

Wonderful info - thanks so much! Am looking right now...
Given the market here, you would think these things would have more visibility to the general public, but it''s the first time I''ve heard of it.

 

[decodelighted]

Date: 6/6/2006 6:57:54 PM
Author: emeraldlover
I haven''t even begun to research how the mortgage company would view a freelancer as a loan risk, but I have a feeling it''s uphill work.

Was it all incredibly difficult? That''s what I''m wondering, though I know that it''ll be worth it.

Have to say the loan process wasn''t as bad as I feared. Turns out more people are in our shoes than ya might realize: contractors, outside sales, etc.... What I needed to "prove steady income" was just the last two years tax returns (or really two consecutive previous years if those show more taxable income than you made last year

) They do judge you on the taxable net of your biz, not the pre-deduction, juicy gross. They also had more faith ''cause I put 10% down & the housing market was climbing -- so the house was quickly gonna be worth way more than my mortgage. (If I pay, they win, if I default they win BIGGER

)

The most difficult part? Household repairs & lawn maintenence. Hard to get contractors PERIOD, much less good, reasonably-priced ones. I picked an OLD, OLD house -- AND -- had never shoveled snow or done yard work (as a city dweller for years). That was a steep learning curve & many, many pocketbook hits (today included - leaky window!) If I knew then what I know now -- i might have viewed "charming" as "money pit"

.

 

[Dancing Fire]

Date: 6/6/2006 9:50:13 AM
Author: portoar

I have clients contact me who are worried about ''a 50% price adjustment'' or that ''prices will go down to ''02 levels'' -- I have no idea where they get their scary statistics. I have one client who has been talking about prices going down ''$100k a month'' in his neighborhood and he always sends me stats which do support the trend I''m seeing but don''t bear out his claims.

not 100k a month but, there''s been 100k off the sticker price for some new homes in our area for the pass yr. how would like to be the couple whom paid 600k for your house 1.5 yr ago and today that same model across the street is selling for 500k. OUCH!!!

 

[Tacori E-ring]

Emeraldlover- The first broker I called laughed at me. I finally found a broker who believed that anything was possible. Between having a great broker and good credit it is possible as a freelancer. Both my FI and I are self-employed. Owning a home is WORTH it. It isn''t even that much more than an apartment with more space, privacy, and it is MINE. Good luck!

 

[Mara]

Date: 6/6/2006 7:38:39 PM
Author: Dancing Fire

Date: 6/6/2006 9:50:13 AM
Author: portoar

I have clients contact me who are worried about 'a 50% price adjustment' or that 'prices will go down to '02 levels' -- I have no idea where they get their scary statistics. I have one client who has been talking about prices going down '$100k a month' in his neighborhood and he always sends me stats which do support the trend I'm seeing but don't bear out his claims.

not 100k a month but, there's been 100k off the sticker price for some new homes in our area for the pass yr. how would like to be the couple whom paid 600k for your house 1.5 yr ago and today that same model across the street is selling for 500k. OUCH!!!

hehe that's because you live in sacramento, DF....!!!! people are coming to their senses about moving out there...it's TOO HOT!

our complex has still been going up for sales on end units, they are selling for over asking and we are getting letters from RE agents who have clients who want an end unit in our complex. inside units are selling for asking but they are taking longer.

time to take the money and run! hehe. we have been investigating other areas out of state where maybe our $$ would go alot farther but i don't know if we would have the guts to move, our lives are here.

 

[codex57]

In Sacramento, new housing is still doing ok depending on where you''re at. The growth out here is freaking incredible. All these Bay Area people ditching the $900K 1400 sq ft houses they can''t afford to buy a 1700 sq ft one for $350K.

I''m not too concerned about housing dropping. See how much a point or two does to a mortgage payment. Basically, you''re just trading how much the home price for an interest rate. It''s all funny money anyways. If you''re living in it, who cares if the price drops $50-100K as long as you can afford the mortgage. You''re still building equity in it (unless you have that interest only loan) while others are waiting that 2-3 years for the housing to "drop." In the end, it''s just gonna go back up anyways. This is Cali. Eventually, it''s only gonna go up.

If the market drops, that''s the time to try and buy a second piece of property on the cheap.

 

[portoar]

Date: 6/6/2006 8:50:45 PM
Author: codex57
In Sacramento, new housing is still doing ok depending on where you''re at. The growth out here is freaking incredible. All these Bay Area people ditching the $900K 1400 sq ft houses they can''t afford to buy a 1700 sq ft one for $350K.

I''m not too concerned about housing dropping. See how much a point or two does to a mortgage payment. Basically, you''re just trading how much the home price for an interest rate. It''s all funny money anyways. If you''re living in it, who cares if the price drops $50-100K as long as you can afford the mortgage. You''re still building equity in it (unless you have that interest only loan) while others are waiting that 2-3 years for the housing to ''drop.'' In the end, it''s just gonna go back up anyways. This is Cali. Eventually, it''s only gonna go up.

If the market drops, that''s the time to try and buy a second piece of property on the cheap.

Tell me about it. Last year I sold a house in Palo Alto -- built in 1960, so 45 years old, never had any improvements, $22K termite report, badly cracked slab in the garage . . . kitchen cabinetry damaged to point of having to be ripped out and replaced (which basically means a whole kitchen remodel), and got $950K for it.

I agree with you. If you are investing for the long term, it doesn''t really matter whether the market dips after you buy . . you have to view real estate as a long term, not a short term investment. Of course, if you are purchasing as an investor thinking to "fix and flip," now is not the best time to buy, at least in California. And where I am, real estate does not pencil out for investors in the current market. But if you''re buying to live in the home and are going to be holding it as your primary residence for the next several years, there is absolutely nothing wrong with the current market. Great inventory, and some deals to be had.

If there is any "correction" I don''t see it going beyond 10% or so . . . any lower and I''m lining up to buy up some more property!

 

[Dancing Fire]

Date: 6/6/2006 8:11:29 PM
Author: Mara

hehe that''s because you live in sacramento, DF....!!!! people are coming to their senses about moving out there...it''s TOO HOT!

our complex has still been going up for sales on end units, they are selling for over asking and we are getting letters from RE agents who have clients who want an end unit in our complex. inside units are selling for asking but they are taking longer.

time to take the money and run! hehe. we have been investigating other areas out of state where maybe our $$ would go alot farther but i don''t know if we would have the guts to move, our lives are here.

it''s not the weather. we haven''t hit 100 degree yet infact,it''s cooler than normal for this time of the yr. i think one reason the housing is down in our area it''s b/c a couple with an avg Sacto income can''t support a 500k home. we live in a low income area with high price housing.

 

[allycat0303]

I just see it as welll... you''re living in the house, so don''t worry about the market. My boyfriend didn''t buy a house to make money. He wanted a place to live, and hopefully not loose bundles of money at the end of it all. End of story, even if the house market drops, we really didn''t over pay, got a good deal. And we''re SOOO happy with our own place. A little happiness is worth something at the end

 

[Dancing Fire]

Date: 6/6/2006 9:24:40 PM
Author: portoar

If there is any ''correction'' I don''t see it going beyond 10% or so . . . any lower and I''m lining up to buy up some more property!

portoar
only 10% ? LOL....don''t worry,you won''t need to line up.soon...many owners will line up begging you to buy their properties.

when the market is hot,there''re 4 buyers chasing 1 seller and when the market burst,there''re 5 sellers chasing 1 buyer.

 

[portoar]

Date: 6/6/2006 8:11:29 PM
Author: Mara

Date: 6/6/2006 7:38:39 PM
Author: Dancing Fire

Date: 6/6/2006 9:50:13 AM
Author: portoar

I have clients contact me who are worried about ''a 50% price adjustment'' or that ''prices will go down to ''02 levels'' -- I have no idea where they get their scary statistics. I have one client who has been talking about prices going down ''$100k a month'' in his neighborhood and he always sends me stats which do support the trend I''m seeing but don''t bear out his claims.

not 100k a month but, there''s been 100k off the sticker price for some new homes in our area for the pass yr. how would like to be the couple whom paid 600k for your house 1.5 yr ago and today that same model across the street is selling for 500k. OUCH!!!

hehe that''s because you live in sacramento, DF....!!!! people are coming to their senses about moving out there...it''s TOO HOT!

our complex has still been going up for sales on end units, they are selling for over asking and we are getting letters from RE agents who have clients who want an end unit in our complex. inside units are selling for asking but they are taking longer.

time to take the money and run! hehe. we have been investigating other areas out of state where maybe our $$ would go alot farther but i don''t know if we would have the guts to move, our lives are here.

Mara, come on down to southern california! That''s what we did, we just couldn''t take Bay Area real estate prices anymore -- and I''m a Palo Alto native. Down here people think prices are high . . . but that''s because they''ve never been up north. It''s great fun living in coastal southern california -- fantastic weather, the beach is right there, people are terrific, lots to do and see . . . get much more home for your money too!

 

[bookworm21]

Emeraldlover, I don''t want to be a downer, but be careful when you buy! I have a friend who is in completely over her head. We''re in the SF Bay Area, and she bought her condo for an overpriced amount, with a ridiculously high HOA fee to boot. Yes, she''s splitting the payments with her sister, but she also bought another place in CA and one other in NV, and she''s been stressed about money for the past two years or so.

Make sure your finances are in order before you make the leap (ok, duh, that''s what everyone does, so that''s some dumb advice from me), but I''m seeing her struggle right now, and it''s not fun at all. I guess the point I''m trying to make is this: yes, it''s definitely possible to get a place of your own, but don''t go in over your head. Calculate everything carefully, and create a cushion for unexpected events; emergencies, lay-offs, whatnot.

Again, sorry to be a downer, but with the real estate market as crazy as it is, it''s better to be safe than sorry, IMHO.