So this weekend we went to an open house. I know, right?! One minute I'm all "I hate this place" and the next I'm looking at real estate. To buy.
Well, let me back up here. I've known for a long time that it might make more sense to buy a place here since we'll be in Pittsburgh for the next 4.5-7 years, or however long it takes for D to finish his MA/PhD (my fingers are crossed for 4.5 years but let's be realistic here). My parents bought a house when they were in grad school and it turned out to be a good investment for them. They lived there while they were in school, sometimes with roommates when they needed extra cash, and then when they moved to Texas they got a company to take over the day-to-day management. They paid it off years ago and now just collect rent and have a second house to sell in case they ever need a huge hunk of money. But...home ownership is scary. Real scary (to me). And I don't love Pittsburgh and don't necessarily want a huge responsibility like a house to tether me to a place I don't plan to ever live again once D is done with school.
Still, in the interest of information-gathering, I went on a few websites and looked at house listings. First of all, Pittsburgh is really a pretty cheap place to buy a house, considering it is a modest-sized city and not the middle of nowhere. Second, interest rates are SO low right now. Third, it would be nice to live somewhere for more than one year, and to be able to paint and change things about the place. D is super handy and always just itching to build and improve things, which is not something we get to do in a rental property. So I found a pretty cute little bungalow in a nearby neighborhood and saw they were having an open house on Sunday from 1-4pm. It wasn't the house of our dreams but it WAS pretty cute. Then as we were driving around the neighborhood to check it out (it's an area we're not totally familiar with) we saw a sign for another open house, this one WAY out of our need/price range. We decided why not, let's see what $300,000 will buy you in Pittsburgh. The answer: a LOT of house. Seriously, two floors plus basement and finished attic, and detached 2-car garage. Huge.
So, we're not buying either of those houses, but we are going to slowly get to know the real estate market in Pittsburgh. We want to keep exploring new neighborhoods and going to open houses. There are, however, a few drawbacks:
1. We want to live in the city, as opposed to the 'burbs. The city? Is old. All of the houses we've even considered looking at are at least 100 years old. I know that owning an old house comes with a lot of headaches, and there are probably tons of issues I'm not even aware of.
2. We want to live fairly close to D's school and my work. Houses in those neighborhoods are not as reasonably priced because everyone wants to live there.
3. Since I just depleted my savings account paying off my loan, and because we both decided we wouldn't feel comfortable putting down less than 15-20%, it's looking like we won't have that cash on hand for a while. Unless we win the lottery or something (which would be difficult considering we don't play it!). So these are not immediate plans, these are "in the future" plans.
In conclusion: house buying is scary. Even thinking about house buying is scary. Do you guys have tips or advice? Books or websites I need to know about? Seriously, lay it on me. I need all the help I can get.
6 comments:
All I can say is that I will never never never do it. Too scary.
I keep hearing from people who are smarter than me that it no longer makes financial sense to own a home given the current market. I don't know why. Hope that helps :)
that comment about what $300k will get you in pittsburgh makes me want to cry a little. in the dc suburbs (read: virginia) you can get a CONDO for about $350k.
i think this sounds like a pretty great plan! you will definitely hate where you live less if you get to make it your own. and with prices that good (and interest rates this low) it seems like a wise move.
If Redfin.com is in Pittsburgh, use it. It's a great real estate website the allows you to search MLS listings. However, it's not complete - we've noticed some listings in our area that are not on Redfin.
Also, I didn't catch whether you plan to own the house only while you're in Pittsburgh or whether you plan to follow in your parents' shoes and keep it as a long-term investment. If the former, be careful of your expectations. While you could once live in a house for 5 years and make a decent profit on it, these days it seems like 5 years and you might not even come out even. We certainly won't (and as a result are extending the amount of time we will likely stay in our condo). I know you'll do your research, because you're smart and saavy like that. But, just want to emphasize that you should probably only buy a home if you think you'll hold onto it for quite a long time.
I bought my condo when I was 24. Turns out it was pretty much the worse time to buy and I am now upside down on that condo, but i learned alot! I don't have any website suggestions, but if/when you decide to buy, let me know if you have any questions about the mortgage side of things as I used to underwrite mortgage so I know all the ins and outs! It's not as scary as people think it will be. You guys are smart, and I am sure you will make a smart decision. It's definitely good to take your time, though, and it's such a huge decision. Looking back, I wish I Hadn't jumped into buying, but live and learn!
I saw your comment on Mabels House,
I wanted to say hello because I'm a blogger from Pittsburgh too :)
Isn't it crazy how much house you can get here? I love old houses and Pittsburgh has a great selection!
You need to do it by the numbers. If it makes sense financially, then take the steps to do it. However, you need to keep the emotions out of it a little bit. You may have to live a little farther away, or in an older house, in order to make it work financially. This is not a decision you should make with your heart. Use your head and only do it if it makes financial sense. Having a house can be a GREAT investment and now is a great time to buy. Not only are interest rates low, but bank owned properties are abundant! Get out your calculator and then get cracking!
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