Bought a House!

[fire&ice]

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On 12/19/2003 5:53:57 PM Mara wrote:


we love older houses as well with all the great old architecture that comes with them....but because neither of us has the time right now nor the inclination to be beholden to our home every weekend working on it....we decided to get something new in order to have the luxury and not have to worry about anything in this home. -----

Actually, that is precisely why we built a new house when we were about your age. We renovated an old American Four Square. It was a labor of love; but, it started to consume us. The roof was slate. Yes, slate will last forever; but, since it's constantly shifting, your constantly chasing roof leaks. It got old real quick. I love the little bungalow; but, just today we had to have an electrician come out. Fortunatley, we are well connected to honest subs. But, both of us like to tinker together. I find house painting & gardening relaxing.

It's a trade off. Nothing like an old established neighborhood with sidewalks, etc. Nothing like the details & character in an old home. BUT, Mara, you are absolutely right on this one. An old house is labor intensive & high maintenance.

BTW, I do find the prices in the Northeast & the west coast S.F. area staggering. We have frequent talks about our quality of life. The cost of living here is so nominal here compared to many areas. And, we don't live in the middle of no where (our country house is considered "horse country" to a fairly major city). Our city house is near a university, etc. Salaries aren't as high as some areas; but, certainly are in line with the cost of living. I know the head hunters that have called hubby aren't offering enough to absorb the increased cost of living in some of the other cities.

 

[MichelleCarmen]

Mara - I love your townhouse!

Fire & Ice - Architecture is my thing too

lol I drive around every day and look at houses while my kids doze off to sleep for their afternoon naps! I've been doing this for three years now. I've also check out open houses.

Our house is older, from 1936 and we've planned on redoing the entire thing. It's ended up being so overwhelming that we given up for the time being and bought a lot up in the mountains instead of putting any more work/time/money into our house. With two toddlers, having open roofs and nails poking out just became too hectic. They were into everything. In two years we're going to build a cabin on our mountain lot and rent it out on the weekend and also stay there as my husband snowboards.

Michelle

 

[ringbling17]

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On 12/19/2003 5:53:57 PM Mara wrote:


plus to be honest, right now at this point in our lives, paying out the nose for a mortgage AND spending our weekends fixing up our old beautiful home just did not seem appealing. we're so busy that we'd end up living in the house without doing the work and being bitter each time we paid the huge mortgage check. older beautiful architecture homes that still need work are just as expensive around here as the brand new townhouses, so it's not as though you save anything by going older fixer-upper.....seemed more fitting our dollars go into the sure thing that would give us happiness for the short term (e.g. working jet tub...hee hee).

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This is exactly how we felt. The older houses that we could have bought were livable and pretty nice, but I really wanted something more modern and new, which meant we would have had to fix them up anyway to our standards and we really didn't have the extra money or time to do this.
My mother bought an older house 10 years ago and she had the bathrooms and kitchem redone, the floors done, the walls done, etc. She happened to have alot of money at her disposable.

My mother actually got very lucky with her house. The sellers had lived there for >40 years when they decided to sell. The original asking price was $599K and my dad told my mom to make an offer of $420K, to which the RE agent laughed at, but he made the offer anyway. Someone had already made an offer of $525K.
The seller agreed to meet with my mom to show her the house a second time and to talk about her offer. My mother says that as they were talking about the price, the seller tripped and my mother helped him up and when he recovered, he just looked at my mother and said,"You want the house for $420, you got it."
She got the house for $180K less than the asking price. She got very very lucky.
Now the same house is worth over 1 mil.

 

[song]

I'm in an area of Toronto that has taken right off in the realestate market.

When we bought our first home, 26 years ago, I thought prices were steep then.

We didn't realize at the time that we needed to put a downpayment on a house. DOH. I was only 24, DH was 21. We were desperate for the house, so he wrote a bogus cheque in the amount of $4000.00 and the next day we took a cash advance from Visa to cover it. Heh. I don't know too many people who buy homes on their credit cards.

We traded up to a larger home 4.5 years later and stayed there for 11 years. With each sale we made an amazing amount of money and were able to buy a better home. The last home, I sold privately so I was able to save on realestate costs.

We've been here 8 years now. It's in North Toronto and has all the charm of an older home. Gumwood, original tub on feet. Everything. Instead of renovating, we restored the home to how it looked over 100 years ago. (except for the appliances and bathrooms - which are modern)

Restoration of big old homes is a dying art. It is so expensive to renovate and restore but I wouldn't have it any other way. We still have the radiators to heat the home, but we use gas, not oil. It's become a hobby that's taken on a life of it's own. I call it the Money Pit. lol

To own a home like this now would cost upwards of 750,000.00 in this city. ACK. I don't know how young people can even entertain the idea of buying a house in TO.

One day I'll run around and get pic's of the rooms. It's the gumwood, french doors and plate rails that really showcase this house. Last year (we have a 25' long kitchen) we added a gas burning stove that heats the kitchen perfectly.

Anyhow, enough of me (can you tell this is my passion, next to diamonds?). Your home looks gorgeous Judy! Congratulations. I remember the excitment of our first home. I have a friend who lives in Guelph as well. I hear it's a great place to bring up a family

. All the best ~song

 

[Mara]

I wanted us to get into the market while we still could...RE in this area never really stops going and even waiting 6-9 months more could mean another $50k that we'd have missed out on. Some people ask why we are doing this now instead of waiting til next summer when we are married. Answer is that rates will be higher and the money we'll end up saving in more down payment will most likely be appreciation that we missed out on by not buying now. The RE market doesn't wait for you to be ready.




My parents bought two housees in the last 20 years and has turned them around each time to the tune of double what they paid if not more. My ex boyfriend bought a townhouse 4.5 years ago and sold it 3 years later for almost double what he paid. Townhouses 4.5 years ago were $250k. Now the same exact thing is $400-500k.




Greg says he could never fathom paying something like $700k for a townhouse like ours. I tell him to just wait and see what happens with ours. Give it a year or two. This area doesn't disappoint. Things may slow but they don't fall much here. Just ask my Mom who bought her original house for $60k 29 years ago.

 

[diane5006]

Wow cool houses Judy and Mara...

Interesting thread...my house is 45 miles North of Boston...I couldn't afford any thing closer (in a Nice town) unfortunately I worked in Boston...the commute was killer. SInce at the time I was single income...actually we are single income again since I am not working now...just trying to get the move done is killing me. It is fairly small, 2br 1.5 bath...1400 sf, 100yr old...needed work, but is sooo cute...I did some work to it in a year...and am hoping to make some money...which hope to spend on more diamonds...my e-ring needs matching earrings and pendant

fortunately I live in the better part of my town...

My FH lives in WV...and real estate is so much better there...although they do have some really high price stuff...his house is 4br 3 bath, on a ridge with great views...only problem is because of the hills, small yards...his backyard is 10 feet wide flat and then a 30 foot drop ...oh

We will probably look for something else in a bit...his house needs work...typical engineer...did the basics, roof furnace...but NO decor...unfortunatly I LOVE old victorian houses...and there aren't as many there as there are in NE...

I will see if I can attache pics

 

[fire&ice]

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On 12/20/2003 1:35:54 AM song wrote:

.

. Instead of renovating, we restored the home to how it looked over 100 years ago. (except for the appliances and bathrooms - which are modern)

Restoration of big old homes is a dying art. It is so expensive to renovate and restore but I wouldn't have it any other way. We still have the radiators to heat the home, but we use gas, not oil. It's become a hobby that's taken on a life of it's own. I call it the Money Pit. lol

The key is to get one that someone hadn't "renovated" already. That is one reason I love our little bungalow. It hasn't been messed with so countless hours aren't spent redoing what someone thought was a modern update. The kitchen has been updated in keeping with the house. But, other than that - the original steam heat (gas)- can't get warmer nicer heat than steam heat & radiators. We even have the orginal radiator covers done in a praire style spindle design. The bathroom has the original pedestal sink & toilet that has a flusher that says "press". Nothing like an old toilet before those stupid water savers.

 

[Hest88]

Congratulations Judy and Mara!

Mara, I love how adorable your townhouse and cozy your townhouse is. It's gorgeous!

Actually, just about all of my friends and relatives bought houses before they got married. I think it's a Chinese thing--it's expected that if you're mature enough to marry you're successful enough to buy a house to move into when you get married. My DH and I were planning on bucking the trend and not getting a house until afterward, but during the boom our landlord sold our apt so it was buy a house or look for a place with rental payments more than mortgage payments. As a result, we moved into our house over a year before our wedding!

 

[ringbling17]

Does anyone ever regret buying a house?
Sometimes, I ask myself why I did it. It is such a financial obligation and me and my husband wouldn't be able to afford our mortgage if we weren't both working.
Before we purchased, we lived in a rented two bedroom walk up apartment, accessible by all types of public transportation, about 5 walking blocks to the boardwalk and beach and close to a shopping center and mall. Our rent was only $700 a month, including heat and hot water.
I sometimes think that we would have been better off just staying in our old apartment and saving all the money that we now pay every month towards our mortgage.
We would have so much money saved right now!!!!
I especially feel this way when I think about the huge houses that I could purchase in another state (ex. Texas) for less money. My friend bought a new house the same year I bought mine, and she only paid $252K and her house is a mansion!!! Over 4000 sq. feet, her lot size is 100x100, 6 bedrooms, two car garage. Plus she upgraded the entire house, granite floors, counters, mahogany kitchen cabinets, marble here and there.
I think my house could fit in her garage!!!

It's kind of depressing when you think about it! Okay, let me stop now.

 

[Mara]

Yeah but Kayla she lives in TEXAS.

Hee Hee just kidding.




I don't see us regretting our house purchase at all. Luckily we got in at a good rate and the house is an excellent price...all of the house expenses minus our huge tax break will actually put us at a monthly payment of around what Greg paid *by himself* when he first moved to California and lived in a 1 bedroom 'luxury' apartment. He had no idea how screwed he was with pricing, after he met me I moved him into a place for 1/2 price and then 2 years later he moved in with me here. But anyway, so when I figured out all the $$ for the house etc and then factored in our tax break (after discussing with accountant) and showed Greg the $$...I had to laugh.




Even if our house doesn't appreciate at all and stays where it is for the next 5 years, we are basically renting luxury--and it's much better than a 1 bedroom rental apartment for the same price!

Sure, sometimes I think about the great big house I could get in Ohio or Texas or pretty much anywhere else. Grass is always greener.

If I ever want that big ole ranch or country space, we won't get it here...but for now I can't imagine living anywhere else.




We just drove by our house tonite, our walk-through is Jan 16...it looks really great from the outside, and they even have the landscaping in.

 

[diamondlil]

Hi Kayla,


I have no regrets in buying versus renting. For tax reasons, it's a wise decision. The trick is buying the right house in the right location.




Hubby and I have built 3 houses (and rented an apartment, townhouse, and single family during the building process of each). So far, we have done well on 2. The second house we built turned out not to be the best decision. We chose it because we knew the area and had done well financially on our first house nearby. We got in early in a golf course community and felt we got a good deal. Unfortunately, our house ended up being 1 of the 2 largest houses in the whole subdivision (builder did not protect us very well), and although we loved that neighborhood and our neighbors, the area itself had changed, the schools were horrible (we did not have kids when we built so had not considered this), and the taxes were ridiculously high! After over 9 years in that house we felt we had to move for the kids. The market had really dropped, and we had to take a HUGE loss even though we put a lot into that house (I was a decorator so everything was over-the-top). All the neighbors we had become friends with took big hits when selling and moved away too. By the way, real estate losses are NOT tax deductible.

From there we built the house we are in now. It's been 4+ years, and the market seems great. There have been bidding wars on resales in our neighborhood which is a good thing. I've heard so many people say "you can never go wrong buying real estate." Then I tell them my sob story and the seem surprised. It depends on the market and, most importantly, the location.




In the end, we still have no regrets about buying versus renting. We just regret making a bad location choice. After our 2 young children are grown and on their own, a nice condo on the water look appealing.

Diamondlil

 

[fire&ice]

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On 12/21/2003 7:10:25 AM diamondlil wrote:
By the way, real estate losses are NOT tax deductible.quote]


I'm no accountant. BUT, are you sure? Wouldn't that be a capital loss? If you sell, you are subject to captial gains - or when the two year law came into effect, the same law applied to capital loss? A house, by all practicality, is an investment in the eyes of the IRS/Gov. I am curious.

That said, like anything, if you buy right, real estate can be an investment.

 

[diamondlil]

F&I,


We were *sure* it would be the same as a capital loss, but to our big surprise, although it is a loss, when it comes to real estate, it is not deductible. The law is definitely not fair in this instance. We made $$ on our first house sale and paid tax on our gain. When we decided to move, we knew we were going to sell for a loss, but we *ass*umed we would be able to deduct it. It wasn't untill we were already into the heat of it when we were informed the loss was not deductible.

It was NOT a pleasant experience. I hope we never take a hit like that again in our lives. Live and learn . . .




Diamondlil

 

[MichelleCarmen]

Kayla,

I definetly don't regret buying. Personally, I think real estate is the best investment out there and this is why at ages 31/32 my husband and I have already purchased our second piece of property. My husband is self employed, so in considering all our options, we realized that property is the best way to secure our retirement. You can't go wrong with your house purchase UNLESS you both hate your jobs and you'd rather stay home or work PT. Then I would say screw the mortgage and rent an apartment OR more advisably get a less expensive home in a suburb.


Michelle

 

[Mara]

I agree Michelle...I am a huge RE person. My Mom bought her first house when she was 25 and I have tons of friends who already own...I feel like a laggart.

Especially in certain areas, e.g. around here historically RE has been a great investment. Part of the reason why I wanted us to buy right now. Plus with the rates so low, it was a total no-brainer.




Now also other friends, even single ones, are looking at us and saying they want to get in on something even if it's just a starter, because as the rates rise (next spring?) and the economy picks up...they may be locked out and hugely regret it.

 

[Hest88]

Kayla, we definitely don't regret buying. I hated being beholden to a landlord--especially with pets. Plus, my DH were really frugal and made sure we bought something we could afford even if only one of us were working. So, our house isn't a showplace that Mara's is

, but it's ours. Plus, because we know we didn't overbid, and we live in a convenient area, we know there's practically no chance of our house not appreciating.

 

[Mara]

wait our house isn't anything yet...it's not even REALLY ours til we close the loan!!

then I can only hope it'll still look good once we get all our crap inside, at least we have alot of hiding places...hee hee.

 

[iceprincess]

Hi Kayla, Mara, and everyone else!
I'm new to the forum (not exactly, joined in back in April but haven't posted until today). Over the months, I've been reading and learning so much from all of you so I'm so grateful for all your contributions and coaching. When you all started talking about RE, I could not help but post. I, like Mara, live in S.California, just outside L.A.. I just bought my first house with my soon-to-be fiance, Jason this Aug. and moved into our house in Nov.. I do love our detached, 3bd, 2ba, ranch-style pool house, but it really did stretch us to our limits both emotionally and financially. Mara is right, real estate really does move quickly, especially in Cali where real estate is RED HOT. Jason and I were looking for houses for almost a year and half before we actually bought and at that time we decided to postpone our purchase because we thought the market was over inflated and our budget was so limited. The same house that we had considered buying a year ago was now worth over $100,000 more

Although we couldn't afford to buy then, we really couldn't afford not to buy now with escalating home prices. After constant researching and narrowing down our criteria, we bought a house that was the best balance of budget and staying within our means. I can only hope to accomplish this with my diamond search!

I have to put in my elbow grease to bring this house up to it's full potential. After working a 60 hr week, more often than not, I'm just too tired to work on the house. I'm self-employed, so I hope that this house will be an investment for me for my retirement. Buying and remodeling this house really surprised me because it showed me how financially and physically capable I could be.

 

[winyan]

*lol* all you old house lovers, anyone want to buy a 160+year old farm house w/2 story barn in NJ? Gotta take it as is though! We've lived here almost 25 years and are sick to death of the high maintenance. We fell in love w/ the romance of the 'old house' syndrome, but are now heartily sick of the problems! Give me a nice *big* townhouse with huge rooms and closets and a jetted tub w/separate shower and I'll be in heaven!




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