elessa: (wyveri)
In the house/condo hunt I have continued to look. Did so today in fact. Still looking. The one of the three that was most promising and at a really great affordable price is 1300 sq ft town house with a huge loft master bedroom with no door and a small downstairs bedroom. Tiny kitchen. Enclosed small slab patio 4'x8' so no place to plant anything. Detached garage. Upgraded vinyl windows. Baby grand piano.

Very tempting, but it is right beside the freeway. I can't picture having an interchange as the view from the master bedroom. When the windows are closed it is silent. However, crack a window the slightest bit and all you hear is the roar of the vehicles on the freeway. I like sleeping with windows open. The sound would drive me nuts.

With the criteria I have set which extends to fifteen miles outside of Portland the list today came up at 44 properties. A scan through showed a third of them were bankruptcy, foreclosure/bank owned, short sales or auction. None of which are drama I want to be involved in. There were a few that were being "sold as is" with no repairs to be made by seller.

Decision time for me is coming soon as my lease is up for renewal on Saturday. Renew for another year at a $90/mo increase? Go month to month with a $70/mo premium attached to the rent increase?
elessa: (wyveri)
Well, this is scary as all get out. I have $8K to my name. Put an offer today on a house which will take every dime I own in order to obtain the mortgage and pay all the fees. Going to have to get creative with finding things to sell to help come up with some liquidity.

This coming week will tell me if panicking is in order or not.

It is a house being sold by the bank as it was a reverse mortgage. Has some quirky features such as only two bedrooms. A third one was converted into the laundry room. It is awesome! Room to put a table to fold clothes. The living room and dining room is one large room, but separated by two pony walls.

There is a small kitchen with a bar into the dining area. However it does have a pantry.

The master bathroom has one of those funky bathtubs with a door for a disabled person to access it. The master bedroom is nice and large.

There is central air conditioning and a gas fireplace.

A two car garage. Hurray for a doorway wide enough to pull a car through without tearing the side mirrors off.

Small yard front and back. Easily maintainable by a single person without having to spend entire weekends on upkeep.

The drawback is the distance from work. The house is twenty miles away from work as opposed to the thirteen for the apartment I live in.

Gah, I hate living in a hot housing market. I need to make a change though. Rent has gone up $100-110 each year the last four years. I can't keep up with it. Having a fixed monthly expenditure will help.

Domiciling

Apr. 26th, 2015 07:49 pm
elessa: (fluffy bunny)
Feeling 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.
elessa: (trees)
read an article today in the san francisco chronicle discussing "walkaway" borrowers. you know, those people who have decided that they will stop paying their mortgages and send their keys back to their lenders. in many instances it isn't a matter of financial hardship that is inducing them to do this. it is rather the realisation that with the market adjusting their house is worth less than what they have it mortgaged for.

well, guess what? )

i am sorry. i simply find this all to be very amusing.

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