Starter home purgatory

"Dr. Zoidberg - RIP Oppo" (thetomselleck) 09/04/2017 at 17:36 • Filed to: Personalopnik

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My wife and I remain uncertain as to what we’re doing with our home. We’ve discussed massive remodels and expansions, partial remodels, new garage, new fence, or doing NOTHING and just selling in three years. But we still haven’t pulled the trigger on anything (except for doing nothing, I suppose).

One thing that had dramatically changed (for the better) was our income. I’d say we’re making 35% more than when we bought our home nearly 4 years ago. So now we have savings and whatnot, which helped us buy two decent vehicles for the first time in our lives. But now we have those big ticket items, and much like with our cars, I’m feeling the itch to upgrade our living situation altogether.

http://www.seattlehome.com/property/1165181/#

It’s like... “Why throw five figures at this house I probably won’t live in the next five years and just pay a X-hundred more a month to live in a better house in a better neighborhood?”

Some say now is the worst time to buy a house in the area due to stupid prices, but I challenge that notion. I think prices will only get higher before they even start to tumble, I have equity now to cash in on, and interest rates are low. If I can comfortably afford my new payment, then can it really be a bad idea?

Any oppos been in a similar situation?

E90M3 > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:36

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Screw buying a new house, buy more Toyota products! Or a 6MT E91.

Nibby > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:36

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http://www.seattlehome.com/search/details/6/4/

TorqueToYield > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:40

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It’s always the right time to buy if you need or just even want something. Especially housing. Playing “lets time the market” is silly. Except for like 2009 when it was obviously a good time if you had the cash on hand.

Phyrxes once again has a wagon! > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:42

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I hear you, ten years on the clock on our starter home. Thanks Metro DC housing prices and the lending bubble. Our home still isn’t back up to what we paid for it when we go looking for comps.

CB > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:44

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How much do you want to upgrade to? Are you looking for something more permanent, or something you know you’ll grow out of?

benjrblant > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:48

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Dang, I wish we could find something comparable anywhere close to that price. Real estate in the Denver area has gotten absolutely stupid, I’m consistently seeing houses that are increasing in value by $7-12k a MONTH. How the F is one supposed to buy a first home?

Dr. Zoidberg - RIP Oppo > CB 09/04/2017 at 17:52

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Simple things. Something that’s been remodeled within the last three decades, something with a kitchen my wife will like, somewhere with room for a full dining room table, something more than a 1-car garage. Something good, comfy, welcoming, and practical. The 15-year-old-Lexus of homes.

BrianGriffin thinks “reliable” is just a state of mind > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:57

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Even at stupid inflated east coast Baltimore/DC prices, that house listing made my eyeballs hurt.

Buy what you want. Rent the one you have.

CB > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:58

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Then that place might not be a bad investment, especially since it says the price dropped by $16k a few days ago. How volatile is the area right now, price wise? Is it stupidly high, and would you be likely to sell again before losing a lot of the value?

cbell04 > Dr. Zoidberg - RIP Oppo 09/04/2017 at 17:59

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Went through the same thing and said screw it and bought a much nicer house than our starter. We bought a new build 3+ years ago and we are still so much happier. Not even just about the living space. We better knew what we really wanted The 2nd time around. The neighborhood, surrounding lifestyle, well rated schools, fit and finish, Yada yada yada. Long story short your in the position that the only compromise will be your budget because no one can make you buy something you dont like and for the time being your current home is fine. So make a list of your needs/wants (sq ft, yard size, garage, commute to work and what not) and start seeing what’s out there. That said these prices are starting to scare me a bit. Our home has allegedly appreciated 70k in 3 years.... Not sure I would have bought my home at the price it’s at currently. But since others are starting to turn over and are selling quickly apparently there are plenty who would..

DipodomysDeserti > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:04

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Kind of in the same boat. I bought my house at the bottom of our market (2009) and my neighbors have been selling their houses for 200%+ of what I paid for mine. I’ve remodeled our bathroom (subway tile, claw foot tub...) and if I remodel my kitchen would be pretty well set. However, both my kids were born within these walls and one of my best friends (doggo, not human) rests in the backyard. My brother and sister also recently bought houses in the same neighborhood. Money has never been a motivatin factor in my life, so I’m thinking I’ll keep it. If anything Incan givebit to my kids once they’re of age and my wife and I can continue traveling the world.

Spaceball-Two > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:07

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We went through this a couple years ago. Decided to keep the old house with good bones and remodel/expand.

Move to Bothell!

Dr. Zoidberg - RIP Oppo > CB 09/04/2017 at 18:21

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No, I think if have to commit to hang on to something like that. That’s a good looking house but it can’t crack 400k with just technically two bedrooms.

CB > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:22

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I also notice that it looks like the backyard is paved, which may make your dog sad.

Dr. Zoidberg - RIP Oppo > CB 09/04/2017 at 18:25

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I see some grass

CarsofFortLangley - Oppo Forever > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:38

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In the same situation, income change greater than 50%. BUT homes where I am are insane (Vancouver)

CB > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:40

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To the side, yeah. Just means a fence might be in order, especially living on a corner.

On the flipside, corners are great because it means you have one less neighbour to worry about.

Dr. Zoidberg - RIP Oppo > Spaceball-Two 09/04/2017 at 18:46

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I can’t afford that

gmctavish needs more space > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:51

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I would buy that shit out of that if it was anywhere near where I live now. At least I think we could sort of afford that. I cheapest I’ve seen a detached home for recently was $419k CAD, and it was just over an hour out of the city, and needed a lot of work. I wish we had a somewhat sane house market....

fintail > Dr. Zoidberg - RIP Oppo 09/04/2017 at 18:56

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Happy wife, happy life.

I don’t see a quick end to this bubble, and even then, it will probably just be a lack of growth rather than a crash. If you want to do it, do it.

vicali > Dr. Zoidberg - RIP Oppo 09/04/2017 at 19:00

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Yep, we play that game.

Our starter house was perfect, then we had two kids. It’s still in one of the best neighbourhoods, great school, flat yard, room for our stuff, room in the driveway and double garage. We actually like our neighbors!

Problem is when family come to visit Doggo gets to sleep in the garage and our mud room turns into the guest room.

Everything else is awesome- we put a new roof on, new furnace, added ac, new washer/dryer, hardwood floors, etc, etc..

Now it’s to the point of looking for something bigger and starting again- or putting money into the kitchen and saying screw it to spare rooms..

Cash Rewards > CB 09/04/2017 at 19:04

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Corners mean more sidewalk to shovel when it snows, though, and more car traffic.

shop-teacher > Dr. Zoidberg - RIP Oppo 09/04/2017 at 20:58

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I will just speak generally here, because I know jack squat about the Seattle area. Now that we’ve watched a bubble, a crash, and now a recovery (maybe a new bubble????). What I have observed is that the nicer the area you’re in, the better your return on investment will be, both in purchase and improvements. If the value does crash again, nicer areas recover quicker. If you can afford to move to a better area, that’s something you should consider. The caveat being if your income is tied to a good housing market, consider that when you consider what you can afford. Anybody who works in a cyclical industry would be wise to plan for the bad times that will come and go.

Highlander-Datsuns are Forever > Dr. Zoidberg - RIP Oppo 09/04/2017 at 21:07

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Here’s my story: Bought “starter” home in 1999 for $75k. Sold in 2005 for $225k, bought “middle class home” for $362k. Mortgage payment went from $600 to $1600 on a $240k loan and it was totally within budget. Sold house in 2012 for $240k, had about $6k in equity. Used cash to by refrigerator and a few other things.

Do I regret loosing $120k in equity? Hell yes. Did I enjoy the middle class home? Hell yes. If I could go back in time I’d put central heat and air on my starter home and bump out the back for an extra room and bathroom for $50-75k, I would be close to $80k ahead at this point.

garagemonkee > Dr. Zoidberg - RIP Oppo 09/04/2017 at 21:08

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That price at that location that’s already updated and ready to rock? That’s a buy. Big time. Do it. You’ll be happy.

Dogsatemypants > Dr. Zoidberg - RIP Oppo 09/04/2017 at 21:53

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Wait until Paine starts doing commercial flight, that should drop home prices in Mukilteo and south Everett. Lots of nice homes there.

Chariotoflove > Dr. Zoidberg - RIP Oppo 09/04/2017 at 22:34

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It’s always tough trying to figure out market fluctuations. Problem is, if you stay in the same general area, you get more for your home when you sell, but pay proportionately more for the new one, and vice versa when the market is down. It cancels out.

What we asked ourselves in a similar position is 1) how much do we like our current house, and 2) how do we feel about our neighborhood. An additional consideration for us is how are the schools. Where we live, the public high school ain’t so great and we’ll have to pony up for the Catholic HS, which is truly great. The equation works out for us to stay. We really love our house, even though we could use more room for various reasons. Sounds like you aren’t as tied to yours though.

Manwich - now Keto-Friendly > Spaceball-Two 09/05/2017 at 01:29

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“Move to Bothell!”

I initially read that as ‘move to Brothel’.

Manwich - now Keto-Friendly > Dr. Zoidberg - RIP Oppo 09/05/2017 at 01:34

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My suggestion? Do what is needed if anything is truly *needed*. And pay off the mortgage so it’s one less thing to worry about.

Yeah yeah... I know that there are ‘tax advantages’ blah blah blah...

Many wealthy people (like lottery ticket winners) make the mistake of buying a bunch of shit they don’t need just because they can.

But having more shit you don’t need won’t bring happiness. Having more shit than you need can actually weigh you down and make you less happy because you have more shit to look after and/or worry about.

So I say take the surplus cash and give yourself the gift of ‘less stress’ and ‘less stuff to worry about’.

Stay in the current house provided it meets your needs... and just pay off the mortgage.

Or failing that, just build up your savings so you can set yourself up for early retirement.

orcim > Dr. Zoidberg - RIP Oppo 09/05/2017 at 03:01

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My only advice is not to “decide” where to live, but to “choose” where to live.

Living in a place is not an investment to me - although that’s not true for many homeowners I know. I’m a liver (sic) person and so I won’t stay in a place that I wouldn’t want to defend against a zombie apocolypse because I Love Being There.

That said, if updating a few things gets you to ILBT, do it and stay. If moving gets you to ILBT, do it. Just get to ILBT and if the market goes down or up, you care not because Y(ou)LBT.

And if you happen to move even if you LBT, that’s ok. If it’s less than what you paid for it, it was rent for being there where you love. If it’s more, it’s gravy and potatoes for you. Don’t decide just choose.

Oh, and your mileage may vary.

adamftw > Dr. Zoidberg - RIP Oppo 09/05/2017 at 06:42

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Finally, housing posts where home prices resemble mine. We bought our place because we’d never “have to” leave and could expand if we wanted. We didn’t want to do the whole starter home thing because of how the housing market goes.

Spasoje > Dr. Zoidberg - RIP Oppo 09/05/2017 at 21:05

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All things considered, would the price difference (b/w your existing house and the new one) be worth it?