Domiciling
Apr. 26th, 2015 07:49 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
elessaFeeling a bit defeated. Rent increases as of May 1 to an amount equivalent to one paycheck. Decided to look into purchasing property rather than continuing to rent. I have come to the realisation that is not going to occur during the next couple years at least.
While I qualify for a mortgage, I actually do not have the physical cash to make a purchase of any kind happen.
Right now the market where I live is hot. There simply is not enough inventory for everyone who seeks to buy. People are either paying cash outright for houses or condos; or there are bidding wars with sellers getting offers anywhere from 5-25% over the asking amount. This is insane.
Yesterday while looking at three different properties there was a very steady stream of other interested buyers. One house I looked at had fourteen offers in a single day. The offer taken was for 18% higher than what the house listed for. Another I was interested in was listed, then in pending sale within three hours of listing.
Sellers are not accepting offers which are for government funded loans, eg FHA loans with NHF grants or VA loans. Conventional loans with higher down payment requirements are the ones being considered. In addition to the down payment of a minimum 5% an additional 3-4% is necessary for closing costs.
I simply cannot compete with what I have in savings. After talking to four mortgage brokers I now understand the interest in whether or not I can borrow against my 401(k). I simply refuse to borrow for a down payment. It makes no sense to me to lessen the retirement investment that I had to begin from scratch three years ago after two years of unemployment and two years of underemployment saw my previous 401(k) and savings get spent in order to survive.
I have also decided some things about what I want out of a place to live. If a house, I do not want a large yard. However, I want a park-like setting. As in, I do not want the neighbor's house to be so close I can stand twixt the two and touch both. I want someplace with a lot of natural light. Quite a few of the homes I have toured are quite dark inside.
I do not want a house or condo which has water, termite, or wood rot damage. I do not want a house or condo which needs an additional $35K of renovation to make it livable right off the bat.
Painting, new carpet or other cosmetic fixes are perfectly fine. I expect that. It is part of making a new home a personalised sanctuary.
So, plan is to renew the lease for another year. Continue to pay down credit card debt. Put into savings what I can each month as I have been. Lessening the credit card debt; paying it off in the next twenty four months; and becoming debt free will allow me to then begin to save even more money per month for a mortgage.
Past history cycles indicate that there will be a downturn in the economy beginning the end of 2016. Perhaps then I will be in a better position to look again for a place to buy.
While I qualify for a mortgage, I actually do not have the physical cash to make a purchase of any kind happen.
Right now the market where I live is hot. There simply is not enough inventory for everyone who seeks to buy. People are either paying cash outright for houses or condos; or there are bidding wars with sellers getting offers anywhere from 5-25% over the asking amount. This is insane.
Yesterday while looking at three different properties there was a very steady stream of other interested buyers. One house I looked at had fourteen offers in a single day. The offer taken was for 18% higher than what the house listed for. Another I was interested in was listed, then in pending sale within three hours of listing.
Sellers are not accepting offers which are for government funded loans, eg FHA loans with NHF grants or VA loans. Conventional loans with higher down payment requirements are the ones being considered. In addition to the down payment of a minimum 5% an additional 3-4% is necessary for closing costs.
I simply cannot compete with what I have in savings. After talking to four mortgage brokers I now understand the interest in whether or not I can borrow against my 401(k). I simply refuse to borrow for a down payment. It makes no sense to me to lessen the retirement investment that I had to begin from scratch three years ago after two years of unemployment and two years of underemployment saw my previous 401(k) and savings get spent in order to survive.
I have also decided some things about what I want out of a place to live. If a house, I do not want a large yard. However, I want a park-like setting. As in, I do not want the neighbor's house to be so close I can stand twixt the two and touch both. I want someplace with a lot of natural light. Quite a few of the homes I have toured are quite dark inside.
I do not want a house or condo which has water, termite, or wood rot damage. I do not want a house or condo which needs an additional $35K of renovation to make it livable right off the bat.
Painting, new carpet or other cosmetic fixes are perfectly fine. I expect that. It is part of making a new home a personalised sanctuary.
So, plan is to renew the lease for another year. Continue to pay down credit card debt. Put into savings what I can each month as I have been. Lessening the credit card debt; paying it off in the next twenty four months; and becoming debt free will allow me to then begin to save even more money per month for a mortgage.
Past history cycles indicate that there will be a downturn in the economy beginning the end of 2016. Perhaps then I will be in a better position to look again for a place to buy.
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
![[community profile]](https://www.dreamwidth.org/img/silk/identity/community.png){kind=small}
no subject
Date: 2015-04-28 12:00 am (UTC)no subject
Date: 2015-04-28 12:36 am (UTC)Some of the places I have seen I want to scream "Are you kidding me!" when I see the price they are listed for. There are houses that a year ago couldn't be given away in an area of town I am interested in that are now going for $400K. These are houses that a year ago were listing for $150K or less.
Today I looked online at one that listed nine days ago and the asking price has risen $12K in that time.
I just do not have the money to finance a mortgage with a monthly payment I would be comfortable with.
The places I could buy today would not be sanctuary to come home to. They would be nightmarish due to location or renovation requirements.
~sigh
Tis alright. I like my apartment for the most part. It isn't perfect, but as I look at options for purchase, it beats them every time.
no subject
Date: 2015-04-28 02:20 am (UTC)no subject
Date: 2015-05-11 04:47 pm (UTC)no subject
Date: 2015-05-12 02:33 am (UTC)Also, a landlord only has to give 20 days notice on a year's lease in Washington. In Oregon it is 30 days. They can give notice for any reason they want to evict. Doesn't have to be for nonpayment of rent or destruction of property.
The vacancy rate is 3% right now. So yeah, trying to find a place to move to as a renter is extremely difficult.
It is insane what is being rented too. Sheds are being rented out. Garages. Unfinished basements. Places with no bathrooms or stoves. They go for over $1000 a month! People are that desperate to find a place to live.
AirBNB doesn't help either. Contributing to the lack of apartments to rent are people who have money and see a way to get more. There was a recent article in the Oregonian about multiple people each renting six to twelve apartments and then putting them onto AirBNB for short term rentals. That takes rental properties out of the marketplace for people to lease long term to live in and work here.