General Economic chit chat/updates.

[max225]

I Love that 100% + mortgage to income ratio … and them 65 months of saving for only a 10% dp.

This seems like financial suicide

[Tar]

I Love that 100% + mortgage to income ratio … and them 65 months of saving for only a 10% dp.

This seems like financial suicide

Mortgage cost at 5% for a 1.2MM loan (approx 10% down on 1.35MM house) is about 85 grand/year. Saving 135k over 361 months works out to 375/month. I didn't do the math on the chicken coupe but it's going to be scaled the same.

I wouldn't want to be buying a condo or house with 10% down unless they end up dropping another 15 of 20%, even then it's a long uphill climb to financial freedom. Welcome to large city living I guess? Sad for the younger hard working generation that are genuinely trying to make this life work. A large portion of these homes are getting scooped up by newcomers that bring family wealth.

[D Griff]

We just got a letter from our pm company about new lease rates once ours expires. 12 month lease goes up 10%, if we go month to month it nearly doubled So we’re going to start looking at houses and possibly buy something in the next few months. Hoping prices continue to drop a bit and that interests rates do as well. But even if we have to buy in at the current rates, we should be able to refi later for a lower rate. Hoping to stay in the $400-500k range, but could go up to $550 if needed.

What a scam, House prices are down 20% or something and they’re slapping a huge increase on rent to prey on those who want to choose the convenience of not moving, can’t afford to start a new lease, etc.

Good luck finding a place man! At least the house hunting process is no longer full on shit with bidding wars and everything.

[max225]

We just got a letter from our pm company about new lease rates once ours expires. 12 month lease goes up 10%, if we go month to month it nearly doubled So we’re going to start looking at houses and possibly buy something in the next few months. Hoping prices continue to drop a bit and that interests rates do as well. But even if we have to buy in at the current rates, we should be able to refi later for a lower rate. Hoping to stay in the $400-500k range, but could go up to $550 if needed.

What’s the mortgage payment vs rent? Also what are the prop tax rates in your area

[SAWCE]

We just got a letter from our pm company about new lease rates once ours expires. 12 month lease goes up 10%, if we go month to month it nearly doubled So we’re going to start looking at houses and possibly buy something in the next few months. Hoping prices continue to drop a bit and that interests rates do as well. But even if we have to buy in at the current rates, we should be able to refi later for a lower rate. Hoping to stay in the $400-500k range, but could go up to $550 if needed.

What’s the mortgage payment vs rent? Also what are the prop tax rates in your area

Property tax out here is .89%..

Current rent is $2100, going up to $2300 if we sign a year lease or, $3850 if we go month to month.

We’re going to look at a new construction home tomorrow sitting at $550k, so very top of the budget. With current interest rates payment would be ~$3400.

We found a few slightly older homes we like that we need to see too. My favorite is this one at $450k that’s already been sitting on the market for several months and dropped the list price by $25k so far, so we could likely get it for even less than that. Payment on that would be $2800.

We’re also hoping/expecting prices and interest rates to continue to drop. If they don’t, that will impact our decision and we’ll likely eat the $2300 increased price for a year and then see what the market is doing in spring of ‘24.

[max225]

What’s the mortgage payment vs rent? Also what are the prop tax rates in your area

Property tax out here is .89%..

Current rent is $2100, going up to $2300 if we sign a year lease or, $3850 if we go month to month.

We’re going to look at a new construction home tomorrow sitting at $550k, so very top of the budget. With current interest rates payment would be ~$3400.

We found a few slightly older homes we like that we need to see too. My favorite is this one at $450k that’s already been sitting on the market for several months and dropped the list price by $25k so far, so we could likely get it for even less than that. Payment on that would be $2800.

We’re also hoping/expecting prices and interest rates to continue to drop. If they don’t, that will impact our decision and we’ll likely eat the $2300 increased price for a year and then see what the market is doing in spring of ‘24.

I’d probably keep renting … terrible time to buy anything … imo. If the place is as nice as the houses you’re considering that is…

Also 110k down is sizeable, you got that saved up also ?

[SAWCE]

Property tax out here is .89%..

Current rent is $2100, going up to $2300 if we sign a year lease or, $3850 if we go month to month.

We’re going to look at a new construction home tomorrow sitting at $550k, so very top of the budget. With current interest rates payment would be ~$3400.

We found a few slightly older homes we like that we need to see too. My favorite is this one at $450k that’s already been sitting on the market for several months and dropped the list price by $25k so far, so we could likely get it for even less than that. Payment on that would be $2800.

We’re also hoping/expecting prices and interest rates to continue to drop. If they don’t, that will impact our decision and we’ll likely eat the $2300 increased price for a year and then see what the market is doing in spring of ‘24.

I’d probably keep renting … terrible time to buy anything … imo. If the place is as nice as the houses you’re considering that is…

Also 110k down is sizeable, you got that saved up also ?

That’s the thing.. the place we’re in isn’t great. It was fine at the $2100 and likely would still be passable at $2300, but we’re on the sketchy side of town, lots of homeless, Michelle watched some OD on our street and had to narcan them, property management company doesn’t keep things functional (key fob system for the complex was down for 3+ months last year), people leave their dog shit everywhere, etc..

We don’t have the full thing saved, but her parents are supplementing whatever we put down to help us hit the 20% mark and avoid a PMI.

[max225]

I’d probably keep renting … terrible time to buy anything … imo. If the place is as nice as the houses you’re considering that is…

Also 110k down is sizeable, you got that saved up also ?

That’s the thing.. the place we’re in isn’t great. It was fine at the $2100 and likely would still be passable at $2300, but we’re on the sketchy side of town, lots of homeless, Michelle watched some OD on our street and had to narcan them, property management company doesn’t keep things functional (key fob system for the complex was down for 3+ months last year), people leave their dog shit everywhere, etc..

We don’t have the full thing saved, but her parents are supplementing whatever we put down to help us hit the 20% mark and avoid a PMI.

Homeless eh ?

Well it seems like the mind is set. New home it is. Curious which city you’re looking in ?

I’m not a super fond “omg houses are a way to riches” person. I find that they are huge money pits to be honest. And for the most part all your gains are likely offset by prop tAxes/repairs and improvements etc

[SAWCE]

That’s the thing.. the place we’re in isn’t great. It was fine at the $2100 and likely would still be passable at $2300, but we’re on the sketchy side of town, lots of homeless, Michelle watched some OD on our street and had to narcan them, property management company doesn’t keep things functional (key fob system for the complex was down for 3+ months last year), people leave their dog shit everywhere, etc..

We don’t have the full thing saved, but her parents are supplementing whatever we put down to help us hit the 20% mark and avoid a PMI.

Homeless eh ?

Well it seems like the mind is set. New home it is. Curious which city you’re looking in ?

I’m not a super fond “omg houses are a way to riches” person. I find that they are huge money pits to be honest. And for the most part all your gains are likely offset by prop tAxes/repairs and improvements etc

Looking in Gresham, OR. Next town east from where we are in Happy Valley.

Mind isn’t completely made, but figured it’s worth looking. If we can’t get into something we want we’ll stay here. We also talked about getting a short/cheap lease in a 1 bedroom and just stacking even more cash over the next however long until things do really start to drop (within a year, would be our hope if we did this).

[SAWCE]

Agreed on them not being a way to riches. I’d be fine renting, but with planning for kids she wants the house for that feeling of stability.

[Valkyrie]

I have been moving to smaller and smaller places for the past 10 years and think that it's the way to go. Personally I'd try to rent a small place in what you think is your preferred location. Then start watching the local market while you're there, giving yourself more time to shop in addition to evaluating the area.

[max225]

Agreed on them not being a way to riches. I’d be fine renting, but with planning for kids she wants the house for that feeling of stability.

https://redf.in/00GpdL

That city is pretty affordable. I say go for it… can’t really go wrong under/at 500k

[SAWCE]

Agreed on them not being a way to riches. I’d be fine renting, but with planning for kids she wants the house for that feeling of stability.

https://redf.in/00GpdL

That city is pretty affordable. I say go for it… can’t really go wrong under/at 500k

This is actually on our list to go check out this week.

[max225]

https://redf.in/00GpdL

That city is pretty affordable. I say go for it… can’t really go wrong under/at 500k

This is actually on our list to go check out this week.

Yea the rent to own ratio is good there … out where we live it’s 1:3… so your $2300 rent would have a $6900 mortgage equivalent house …

Then again you may be in a shittier hood and smaller place which is why it’s cheaper

[razr390]

Agreed on them not being a way to riches. I’d be fine renting, but with planning for kids she wants the house for that feeling of stability.

Quick piece of advice, when wife was pregnant the first time, we had to relocate from VA to SATX. Our kiddo was raised in a 2/2 apartment until we moved when she was 2.5. It’s totally doable with compromises. You don’t NEED to have the house first. Do what is best FINANCIALLY. Y’all can always break a lease for x y z reasons if/when baby is coming.

remember, if she gets pregnant tomorrow and you sign a new 12 month lease TODAY, baby will only be a few months old when the lease is up and yall have move ANYWAYS.

market will cool down eventually so i say play that. no point in increasing housing by $1,100/month today if you can instead save that for 12 months and use toward down payment when houses become cheaper in 10-14 months.

[razr390]

But I definitely understand being in a shitty complex/part of town. 5/7 do not want.

[Desertbreh]

That’s the thing.. the place we’re in isn’t great. It was fine at the $2100 and likely would still be passable at $2300, but we’re on the sketchy side of town, lots of homeless, Michelle watched some OD on our street and had to narcan them, property management company doesn’t keep things functional (key fob system for the complex was down for 3+ months last year), people leave their dog shit everywhere, etc..

We don’t have the full thing saved, but her parents are supplementing whatever we put down to help us hit the 20% mark and avoid a PMI.

Homeless eh ?

Well it seems like the mind is set. New home it is. Curious which city you’re looking in ?

I’m not a super fond “omg houses are a way to riches” person. I find that they are huge money pits to be honest. And for the most part all your gains are likely offset by prop tAxes/repairs and improvements etc

Right but you bought one anyway, not a homeless guy in sight. You're not going to find many women out there who are onboard with the Marshal Zhukov beancounter uber alles mindset.

[SAWCE]

Agreed on them not being a way to riches. I’d be fine renting, but with planning for kids she wants the house for that feeling of stability.

Quick piece of advice, when wife was pregnant the first time, we had to relocate from VA to SATX. Our kiddo was raised in a 2/2 apartment until we moved when she was 2.5. It’s totally doable with compromises. You don’t NEED to have the house first. Do what is best FINANCIALLY. Y’all can always break a lease for x y z reasons if/when baby is coming.

remember, if she gets pregnant tomorrow and you sign a new 12 month lease TODAY, baby will only be a few months old when the lease is up and yall have move ANYWAYS.

market will cool down eventually so i say play that. no point in increasing housing by $1,100/month today if you can instead save that for 12 months and use toward down payment when houses become cheaper in 10-14 months.

Absolutely. My initial post was probably a little strong. We aren’t hell-bent on buying now, just scoping the scene out and going to get the ball rolling with pre-approvals and that sort of thing. If something works, awesome, if not, we’ll hide our time and wait for the market and/or rates to come back down. The hope if we buy now at ~6% would be for rates to drop back to the 3-4% range so we can refinance and slash a chunk of our monthly payment. Although that also comes with the risk of home values crashing too and not being able to refi based on what we owe vs what it’s then worth.

Will keep you guys updated.

[max225]

Refis are a huge money waster btw… if I were you I’d save money until June/august this summer. Rates will move back down then, as will house prices.

[SAWCE]

Refis are a huge money waster btw… if I were you I’d save money until June/august this summer. Rates will move back down then, as will house prices.

That’s kind of what we’re thinking.. we don’t really expect to get into a place by April. Decision now is do we grab a cheap 1 bedroom and slum it up while slamming cash into our DP fund and then just pay that lease break fee when we find something later this year, or do we bite the bullet and just stay put here and sign up for another year then break that lease…

[razr390]

Refis are a huge money waster btw… if I were you I’d save money until June/august this summer. Rates will move back down then, as will house prices.

That’s kind of what we’re thinking.. we don’t really expect to get into a place by April. Decision now is do we grab a cheap 1 bedroom and slum it up while slamming cash into our DP fund and then just pay that lease break fee when we find something later this year, or do we bite the bullet and just stay put here and sign up for another year then break that lease…

If y’all hate the place you’re at now, a don’t think finding a cheaper 1 bed would be a bad option. Imo do y’all really need the 2/2 at this point in time? It’s just you guys, no?

[SAWCE]

That’s kind of what we’re thinking.. we don’t really expect to get into a place by April. Decision now is do we grab a cheap 1 bedroom and slum it up while slamming cash into our DP fund and then just pay that lease break fee when we find something later this year, or do we bite the bullet and just stay put here and sign up for another year then break that lease…

If y’all hate the place you’re at now, a don’t think finding a cheaper 1 bed would be a bad option. Imo do y’all really need the 2/2 at this point in time? It’s just you guys, no?

It’s nice to have since we both work from home and she has to be in a closed room for hers… but not absolutely necessary, she could work from the bedroom while I work from the living room. That’s likely what we’ll do.. ride that out and suck it up for a few months.

[razr390]

If y’all hate the place you’re at now, a don’t think finding a cheaper 1 bed would be a bad option. Imo do y’all really need the 2/2 at this point in time? It’s just you guys, no?

It’s nice to have since we both work from home and she has to be in a closed room for hers… but not absolutely necessary, she could work from the bedroom while I work from the living room. That’s likely what we’ll do.. ride that out and suck it up for a few months.

Y’all def have options, and I see the pros/cons of both. But if it’s just you guys I’d rather move to a better area IMO.

[D Griff]

If y’all hate the place you’re at now, a don’t think finding a cheaper 1 bed would be a bad option. Imo do y’all really need the 2/2 at this point in time? It’s just you guys, no?

It’s nice to have since we both work from home and she has to be in a closed room for hers… but not absolutely necessary, she could work from the bedroom while I work from the living room. That’s likely what we’ll do.. ride that out and suck it up for a few months.

There are shorter term leases out there and I doubt apartments are really flying off the shelf here. My buddy and his GF found a one bedroom for a four or six month lease at $1200/month, and from what I can see, housing prices in CLT versus PDX are pretty similar. They bought a shithole that they've been full gut renovating for a long time so they found the cheapest apt. they could find that was livable since they're also paying the mortgage and blowing fat stacks on the reno. It's not glamorous but they're getting by. My buddy did start going to the office every day instead of any remote work due to the close quarters, which sadly isn't an option for you guys. You may be able to find an apt complex with a business center or some kind of common area you could work?

[D Griff]

I have been moving to smaller and smaller places for the past 10 years and think that it's the way to go. Personally I'd try to rent a small place in what you think is your preferred location. Then start watching the local market while you're there, giving yourself more time to shop in addition to evaluating the area.

There is a fine line on how small to go, but I agree that it's worth assessing and staying on the smaller side: cheaper cost up front, much lower utility costs, less maintenance, less pointless crap bought to fill the space.

Generally, I find about 500 sq. ft. per person is enough +/- any special needs/interests for the house.