Deleted
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Post by Deleted on Aug 18, 2016 8:43:53 GMT -5
Speaking as someone who has spent most of kids growing years driving around and waiting, I'd buy the smaller house in the place I want to be, especially if weather is a concern. OMG. This is my life.
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Firebird
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Post by Firebird on Aug 18, 2016 9:05:37 GMT -5
Speaking as someone who has spent most of kids growing years driving around and waiting, I'd buy the smaller house in the place I want to be, especially if weather is a concern. I hear you. We'll have to see how it goes. This is another reason why it would be useful to know for sure if our family was finished... but don't worry, I'm not deciding anything on that front yet. My immediate concern is kicking even more ass at my new job in the next six weeks. I've already got some solid accomplishments under my belt and the boss is really pleased/impressed with me. If I continue to contribute at this level or higher, I should have a lot of negotiating power at my 90 day review. And doing well at that could put us in a much more comfortable position right away.
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raeoflyte
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Post by raeoflyte on Aug 18, 2016 9:44:21 GMT -5
One thing I was thinking about, is that you're looking to match your parents retirement home for yourselves in your working/kid years which is really, really tough. You're good at making choices and I have no doubt that you will be able to make the choices needed, but figured I'd point that out.
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Aug 18, 2016 10:05:04 GMT -5
One thing I was thinking about, is that you're looking to match your parents retirement home for yourselves in your working/kid years which is really, really tough. You're good at making choices and I have no doubt that you will be able to make the choices needed, but figured I'd point that out. Can't like this post enough -- it's a trap so many of us fall into!!!!
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Firebird
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Post by Firebird on Aug 18, 2016 10:51:42 GMT -5
So... what exactly IS our housing budget if we're making (say) $80k?
I know conventional wisdom says 2.5x income. Maybe I'm just not ready to accept it. Even in Sunriver, $200k won't go far.
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raeoflyte
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Post by raeoflyte on Aug 18, 2016 10:55:37 GMT -5
I don't think those calculations are very realistic as it is completely dependent on rate, and with rates low that works out in your favor. I would look more at what monthly payment you're comfortable with to keep your budget in line and back into your purchase price that way.
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Firebird
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Post by Firebird on Aug 18, 2016 10:55:55 GMT -5
Or, uh, you know, maybe it will. www.realtor.com/realestateandhomes-detail/M10255-89294What the hell is wrong with this place? I must know. Perhaps I'll schedule a viewing. Something must be wrong with it if it's going for $70k. Either that or Santa Claus really does exist. It's either one or the other. ETA: It's super, super close to my work which, again, is on the outskirts of Bend rather than right in town. I guess I know where I'm looking next! I have to drive by this place after work.
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Deleted
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Post by Deleted on Aug 18, 2016 10:59:22 GMT -5
Or, uh, you know, maybe it will. www.realtor.com/realestateandhomes-detail/M10255-89294What the hell is wrong with this place? I must know. Perhaps I'll schedule a viewing. Something must be wrong with it if it's going for $70k. Either that or Santa Claus really does exist. It's either one or the other. ETA: It's super, super close to my work which, again, is on the outskirts of Bend rather than right in town. I guess I know where I'm looking next! I have to drive by this place after work. Is it another timeshare like the one you posted earlier? eta: It's furnished, so I'm guessing yes.
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Chocolate Lover
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Post by Chocolate Lover on Aug 18, 2016 11:00:22 GMT -5
Or, uh, you know, maybe it will. www.realtor.com/realestateandhomes-detail/M10255-89294What the hell is wrong with this place? I must know. Perhaps I'll schedule a viewing. Something must be wrong with it if it's going for $70k. Either that or Santa Claus really does exist. It's either one or the other. ETA: It's super, super close to my work which, again, is on the outskirts of Bend rather than right in town. I guess I know where I'm looking next! I have to drive by this place after work. All I see is that it looks like it was built in 1990 still. And maybe the small kitchen.
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Firebird
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Post by Firebird on Aug 18, 2016 11:02:34 GMT -5
ARGH. I bet you're right. They should really make it more obvious when that's the case. Otherwise they just play with my emotions!
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Firebird
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Post by Firebird on Aug 18, 2016 11:05:59 GMT -5
Yeah, back to feeling depressed. Most of the houses in the 200k range are either mobile homes or in La Pine.
Onward.
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swasat
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Post by swasat on Aug 18, 2016 11:12:32 GMT -5
See, I really don't believe that EVERYONE should be able to buy and/or afford a house whenever they want or wherever they want. There is nothing wrong in renting if you don't have the income to support the kind of house you want at you location of choice. The traditional calculators still predict 2.5 times you income as acceptable mortgage. But they are NOT taking into account kids classes, internet costs or all the other lifestyle creeps that have become normal now. I tend to agree with raeoflyte.....you should not be expecting the same level of housing your parents have right now. They had the funds to buy it outright, you don't! So either the income needs to be increased to match the expectation or expectations need to be lowered to match the income.
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MJ2.0
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Post by MJ2.0 on Aug 18, 2016 11:13:45 GMT -5
Either timeshare or mass murder-suicide.
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Firebird
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Post by Firebird on Aug 18, 2016 11:21:57 GMT -5
I don't think everyone is entitled to a house either. It's just that since we have the opportunity to live rent free for awhile to shore up some funds and then buy, it seems like that makes a lot more sense than planning on renting for however many more years.
And anyway, rent for a 2br around here is anywhere between $1300-2000. It's not like it's cheaper to rent.
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muttleynfelix
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Post by muttleynfelix on Aug 18, 2016 11:25:17 GMT -5
So... what exactly IS our housing budget if we're making (say) $80k? I know conventional wisdom says 2.5x income. Maybe I'm just not ready to accept it. Even in Sunriver, $200k won't go far. What else is in your budget? How much is your health care? Child care? Personally, I make around $80k and we we budgeted up to $225k, but taxes also mattered. In the end, I was glad we agreed on a $195k house, but my health care expenses are more than most. However, I don't have child care expenses. It is a personal comfort level.
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Deleted
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Post by Deleted on Aug 18, 2016 11:25:34 GMT -5
Vacation/tourist areas are hard to settle in. There's so much money in the area from people that don't need to work there. Timeshares and retirement homes. I noticed that a lot when we would go to some places in Colorado where my parents have a timeshare. All these gorgeous mountain homes, but the people that actually were employed there were living in trailer parks.
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Chocolate Lover
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Post by Chocolate Lover on Aug 18, 2016 11:26:25 GMT -5
I don't think everyone is entitled to a house either. It's just that since we have the opportunity to live rent free for awhile to shore up some funds and then buy, it seems like that makes a lot more sense than planning on renting for however many more years. And anyway, rent for a 2br around here is anywhere between $1300-2000. It's not like it's cheaper to rent. Might not be cheaper, but the maintenance isn't your problem either. That's a perk.
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Firebird
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Post by Firebird on Aug 18, 2016 11:36:50 GMT -5
We've discussed Redmond (several of my colleagues live there) and that's a good possibility. There are some pretty nice houses there in the 180-200k range.
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swasat
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Post by swasat on Aug 18, 2016 11:43:56 GMT -5
I don't think everyone is entitled to a house either. It's just that since we have the opportunity to live rent free for awhile to shore up some funds and then buy, it seems like that makes a lot more sense than planning on renting for however many more years. And anyway, rent for a 2br around here is anywhere between $1300-2000. It's not like it's cheaper to rent. Its cheaper if take into account the flexibility and the lack of certainty about your household income. I'm not saying you SHOULDN'T buy a house. I am saying that you shouldn't be focusing or basing your house choices on what your parent have now. You might not be able to afford that kind of gorgeous at this stage of your life. Something cheaper but not so fancy, maybe. Only you can decide.....
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yogiii
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Post by yogiii on Aug 18, 2016 11:45:15 GMT -5
One thing I was thinking about, is that you're looking to match your parents retirement home for yourselves in your working/kid years which is really, really tough. You're good at making choices and I have no doubt that you will be able to make the choices needed, but figured I'd point that out. Can't like this post enough -- it's a trap so many of us fall into!!!! More social indifference is necessary to fix this!
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resolution
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Post by resolution on Aug 18, 2016 11:46:15 GMT -5
Certainly my preference is to buy in Bend, if we can find a suitable house in our price range. I agree it would be easier to live where we work and go to school, plus I'd like to live near my parents if possible. But as you guys have pointed out, it may not be financially feasible to do that. And what I won't do is buy a house I know we'll be dissatisfied with in a couple of years. That way lies madness. I'm willing to trade some convenience for a good house we can be happy in for many years. If that's not the trade, awesome! How confident are you that you would become more dissatisfied with a compromise house rather than becoming adjusted to it over time? It is a huge quality of life improvement to live close to work and school and have all that extra time at home.
I've been living six years in a small house that started as a fixer, and for me it got easier over time to be content in the house, rather than becoming more dissatisfied over time. When I first moved in it felt really cramped at 1100 sf, but I got used to working with the space and now it feels very cozy and comfortable. We added in more built in storage and got rid of excess items that didn't have a good home.
Now that we are starting to casually house hunt for a larger house, I am second guessing the move since I appreciate being close to town and having everything nearby.
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Firebird
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Post by Firebird on Aug 18, 2016 11:47:47 GMT -5
I don't know if I said I was basing our choice on what my parents have... I think I said that their layout and size would be perfect for us and I'm still kind of stunned that they snagged it for $300k.
Yes, we'd like something similar to what they have. I do realize we might not get it. But we've got some time to really look at our options. It's not like we have to buy or rent right this second.
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Firebird
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Post by Firebird on Aug 18, 2016 11:52:41 GMT -5
Bottom line for me, I don't want to buy a house that I know won't work for us down the line or that I don't really like. Whatever we choose, I want to be comfortable with staying in it as it is (unless we specifically buy a cheap house with the intention of remodeling it) for ten years MINIMUM. If it's a choice between house I love + less convenient location or house I don't love + great location, I'll take the former every time. A crappy commute isn't a deal-breaker for me. Commutes can change. Our house, once we buy it, isn't going anywhere. (Well, unless we go the mobile home route after all! )
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TheHaitian
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Post by TheHaitian on Aug 18, 2016 11:55:32 GMT -5
Doing a quick math if you are comfortable with a $2,000/month mortgage note you are looking at 300-330k with 5% down and 3.5% rate.
On the low end $1,300/month and 5% down and 3.5% rate you are looking at about 215k.
Based on potential income, debt etc I would say <250k> (give or take 25k either direction) is about the right spot for you if you do decide to buy.
But my opinion is worth exactly what you paid for it!
We went on the higher end of what we could afford because "location" was important to us due to traffic/commute time.
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justme
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Post by justme on Aug 18, 2016 12:10:01 GMT -5
Commutes can change, but location can't. I am 100% a live where you play type of person. I need to be close to the things I want to do after work.
Isn't a huge part of the reason you moved there because of all the stuff there is to do there? Stuff that wouldn't be inside your house? Might make more sense to live closer to the stuff you want to do so you don't have to worry as much about the place you sleep cuz you won't be there as much.
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justme
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Post by justme on Aug 18, 2016 12:11:53 GMT -5
Doing a quick math if you are comfortable with a $2,000/month mortgage note you are looking at 300-330k with 5% down and 3.5% rate. On the low end $1,300/month and 5% down and 3.5% rate you are looking at about 215k. Based on potential income, debt etc I would say <250k> (give or take 25k either direction) is about the right spot for you if you do decide to buy. But my opinion is worth exactly what you paid for it! We went on the higher end of what we could afford because "location" was important to us due to traffic/commute time. Plus all those numbers change based on taxes and HOA, if any, and pmi. My bros is around 1300 for a 190k once you figure everything in.
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emma1420
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Post by emma1420 on Aug 18, 2016 12:25:44 GMT -5
So... what exactly IS our housing budget if we're making (say) $80k? I know conventional wisdom says 2.5x income. Maybe I'm just not ready to accept it. Even in Sunriver, $200k won't go far. That is going to depend on your interest rate, the amount of other debt that you, and your deposit. But, I make significantly less than 80K, the house I just bought was quite a bit more than 200K. With an interest rate of 3.6% for a 30 year mortgage, a $400 car payment, and 15k down the realtor.com calculator indicates that you could buy a house for about 275K (which would be a payment of $1700 a month with taxes, insurance, etc., included). There are higher amounts for more aggressive debt-to-income ratios. The calculator is available at www.realtor.com/mortgage/tools/mortgage-calculator/. I know I preferred the realtor.com calculator because it gave me options based on how aggressive I wanted to be. So with the low interest rates you may be able to afford more than you think that you could. The other thing I'd keep in mind is how much it would cost you to rent an apartment or house with equivalent space. If rent prices are going to be high, then it makes more sense to stretch a bit because you are going to saddled with a higher payment anyway. And I get moving stinks, and most people don't want to move every few years. However, at the same time you don't need to buy the dream house or the house you see yourself living in until retirement now. I feel like it puts far too much pressure on you to find the perfect house, and when you are at the bottom of the market you often have to make pretty significant compromises. You just need to find a house that you feel that will work for your family for the next 5-7 years versus 10+ years. If it works longer that is great. If it doesn't you can sell and find something else. I would also ask if you've had a crappy commute before and how long did you manage it? There are some people who will happily take a crappy commute for more house, and you might be one of those people. But, most people can't take crappy commute long-term (10-20 years). Most people I know end up selling because they can't deal with the commute long-term, and they realize that they would rather have an extra hour every day with their kids or doing the stuff they enjoy than commuting.
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shanendoah
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Post by shanendoah on Aug 18, 2016 12:29:28 GMT -5
Bottom line for me, I don't want to buy a house that I know won't work for us down the line or that I don't really like. Whatever we choose, I want to be comfortable with staying in it as it is (unless we specifically buy a cheap house with the intention of remodeling it) for ten years MINIMUM. If it's a choice between house I love + less convenient location or house I don't love + great location, I'll take the former every time. A crappy commute isn't a deal-breaker for me. Commutes can change. Our house, once we buy it, isn't going anywhere. (Well, unless we go the mobile home route after all! ) You are not me. I know this. But....
I LOVED my first house. LOVED it. New construction that I got to make some modifications to. I picked my floors and my counters and got a soaking tub installed and, even now, thinking about our first house, I just LOVED every bit of it. Except, we had a 50 mile each way commute - so 100 miles per day. On weekends, not a big deal. On Monday morning, HUGE deal. But, because we were never home on weekdays due to the long commute, we never wanted to go anywhere on weekends, when the drive wouldn't have been bad, because we wanted to be home. But none of our friends really wanted to make the drive down to where we were. With the exception of our wedding, I think we had friends come visit us in that house maybe 2-3 times total, over 18 months. LOVED my house. Didn't like my life much. We lived there 18 months.
I got a new job, better money. We could afford to live closer. We bought a house that was OK, but that wasn't anything like our first house. But, we could afford it, and it was much closer to work and friends.
I lived there for 10 years.
So, house I loved, life I didn't like much - 18 months. Life I loved, house I didn't like much - 10 years.
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emma1420
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Post by emma1420 on Aug 18, 2016 12:37:45 GMT -5
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Firebird
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Post by Firebird on Aug 18, 2016 12:39:24 GMT -5
I totally remember your commute dilemma and how you solved it, Shane.
Trust me, I have no illusions about the reality of long commutes. There's indisputably a limit to what I'd find reasonable/sustainable. I remember well how happy I was when I went to a 1.5 hour commute to a 15 minute one. My quality of life changed dramatically.
So I'm certainly not willing to go back to anything over an hour - actually, 45 minutes would be seriously pushing it, especially since it's a driving commute. But right now I've got a 25 minute commute and I don't mind at all. I find it kind of enjoyable, actually. (It helps that I've become a huge fan of audio books in recent years.) I'm actually surprised at how little I mind, given how excited I was to be in a place where you can get almost anywhere in 15 minutes. There's zero traffic on my drive; that's a HUGE factor in my not minding it.
My commute wouldn't change if we lived in Redmond, it's about the same distance. But I have no idea where DH will be working so this is really all academic right now anyway. We could easily end up with a situation where one of us will be stuck with a long commute and the other isn't no matter what we do.
But we spend a lot of time at home so yes, the actual house matters quite a bit to me. As for socializing, etc. in Bend, I don't discount that factor but again, if we're already working there then it's easy enough to go to some evening event or class after work. We wouldn't even need to go home in the meantime, necessarily.
Again: I'd prefer Bend but I really doubt we can find an acceptable house here for less than 275 at least. Whether we can afford that will depend heavily on how much I'm making after my 90 days and how much DH makes once he finds a job.
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