It's a Good Time for Me to Consider a House

[wrath]

You need to look at the payment for what you get. Sure, you can get a decent house in Johnson Creek for cheap, but the cheapness disappears when you burn it up in fuel. There is no equity in an empty gas tank.

My wife likes the city life. We own up to the neighbor's house and if we were living in the city we'd have at least three houses between us and them. Heck, there would be two houses between our house and detached garage. She's been saving her pennies so we can buy their house when they put it up for sale "because their house is just too close to ours".

I don't think people should buy "a starter house". Buy your last house. Each time you sell and buy you lose many year's worth of equity.

[Korndogg]

I would rather buy a starter house than waste 10 years in an apartment throwing away money while trying to save for a "last house." I get what you are saying but for a lot of people, that just isn't feasible. Especially when you don't know what you are going to want/need in 10 years from now. We plan on staying at our current house around 10 years or so because quite frankly, when we have a kid, we want them to go to better schools. But this is what we could afford at the time and it is in a nice area so we went for it.

[jbiscuit]

One thing is for sure the days of owning, improving and selling for profit are gone. Owning a home in Wisconsin is great but don't expect to get much from your home when you sell. Buyers just expect these improvements now. Don't have granite counter or a remodeled bath? Plan on dropping your price way down to get it sold.

That said, nothing wrong with buying a starter home. This also teaches you how to repair things yourself and learn what you really want in a neighborhood, house, neighbors, school etc. I don't know many people that go right out and buy their last house.

We lived in Milwaukee county. We lived our neighborhood, proximity to everything and many other reasons. The taxes are just too high for a small house and we wanted some more space. Moved down to Mt Pleasant 2 years ago and couldn't be happier. In my neighborhood there is a big block LTD, a 30 ford hot rod, a zo6, a new Shelby mustang and a CTS-V, a slammed 50 Chevy pickup, 55 gasser, 68 Chevelle, 65 nova, syclone pickup, 69 Chevelle....and many more. Car lovers paradise down here. Go to the local Piggly Wiggly and see a badass nova or mustang any night of the week. The neighbor with the ford hot rod moved down here from Wauwatosa...him and his wife work in Milwaukee. They wanted more room, cheaper taxes and quieter living. I hear that a lot.

[95 TA - The Beast]

I don't know any people that go right out and buy their last house.

We did... We lived in the apartments for 15 years when they decided to not renew our lease. Yeah, a lot of money down the tubes in those 15 years renting, but with special needs kids I felt keeping them in the schools that they were thriving was more important than buying a house and changing everything for them.

Back when I started looking to buy a house was back in 2000-2001... Then 911 happened and ran into business trouble... Then the housing market got just fucking STUPID with all the asshats thinking their $165k house was worth $300k+... And I refused to be anyones fool and know how to lookup records and quite frankly screw everyone that drinks the koolaid and thinks that just because everyone says a house is worth $xxx that is true... So I waited it out...

Ended up buying at the bottom of the housing slump, got a 3.5% interest rate, and ended up buying the last house I hope to own. Bought in a great neighborhood, it is quiet, the kids get to stay in their schools (did the open-enrollment thing), and because we are in a new district if their schools go to hell because of budgets I always have the option to have them go to the schools where we live. We aren't very far from where we used to live at all. Sure taxes are high, but that is because of the value of the house. Ended up buying a great house for a great price because it was a foreclosure. Sure, there is work to do on it still, but I have taken care of the mechanicals pretty well (just got done doing one of the 8x8 garage doors today in fact, the other gets done tomorrow), and remodeling bathrooms and such will all be done in good time, but the house itself is a "one and done" for us.

We may consider selling and buying something smaller once all the kids are gone, but having a two year old, I have quite a while before that will happen. Plus if the kids follow the current trend, they may be living at home a bit longer than most would expect, so having all the extra room is a good thing...

[jbiscuit]

A one and done just isn't for everyone and for sure not the norm. In your case, you lived in one area for a really long time and liked it. Again that's rare. Over the years I've lived in some nice neighborhoods but not many I'd want to own a home in.

Foreclosures are a great way to get into a house with good bones but like you illuded to it will need work. Not a problem if you are handy and have the cash reserves. Which brings up a good point. I LOL at all the people that think they can afford a home, let the bank talk them into a big mortgage, no money down kinda situation and tap out their little savings account to pay closing costs and other fees rendering them broke on day one. You need a stash of cash above and beyond your mortgage. Houses are money pits. Everything costs more than the budget, shit breaks, things need replacing and yard work will cost money if you want a nice yard. Not to mention who wants to move into a house and not have any money to start improving it? I think being car enthusiasts makes this situation worse cuz car guys would want to modify a moped or a huffy if someone gave it to them. While I still enjoy working on my cars I usually prefer to work on the house! More rewarding to see a plan come together. We still have a lot to do here but that's more a lack of time than money.

One thing to never settle on is the garage if you are into cars. Cuz it could always be bigger, nicer, taller, deeper, more insulated and so on. I have a 3.5 car here and wish it had another stall

[michelle]

One thing to never settle on is the garage if you are into cars. Cuz it could always be bigger, nicer, taller, deeper, more insulated and so on. I have a 3.5 car here and wish it had another stall

No kidding. I also suggest looking into village/town ordinances when it comes to "upgrading" a garage. We're maxed out on our second garage based on how many acres we have. Definitely need more garage space!

[jbiscuit]

^ this. Most codes/limitations don't accommodate car guys (girls). I know in Caledonia, outbuildings and pole barns are very common where as here in Mt Pleasant we can't have pole buildings.

[michelle]

And yet across the street, pole buildings for everyone!

[Al]

There is no equity in an empty gas tank.

Very well said!
I could say that I spend half a mortgage payment check on fuel living up here in Cedarburg and working in Milwaukee.

I don't think people should buy "a starter house". Buy your last house. Each time you sell and buy you lose many year's worth of equity.

I disagree with this. The reason being I'm a bachelor right now. Who knows if I'll get hitched and have a dozen kids.
You don't buy a big pair of pants assuming that you will eventually grow into them. Buy what fits for now.

One thing is for sure the days of owning, improving and selling for profit are gone.

My thoughts are to buy a place and hope to come clean if I need to sell it. I'd be very lucky if I break even after the realtor fee.
Owning a house is a good way to avoid expenses. I like the idea of being able to repair my vehicle at home instead of paying someone to do it. I'm renting now, but I've also been fortunate to have a place to repair my vehicle. I would have spent about 2k paying other people to do what costed me about $200.

No kidding. I also suggest looking into village/town ordinances when it comes to "upgrading" a garage. We're maxed out on our second garage based on how many acres we have. Definitely need more garage space!

I've specifically thought of this when I see houses with single car garages in their back yard. There might be room to expand it, but what if the city ordinance says no.

[Al]

I like the areas that are between the 894 bypass and most of Oklahoma. Closer to the Plainfield Curve, Howard is the northern limit.
Houses are around 100k for what I like and the taxes are 2.5-3.5k.

[Al]

One other thing:
I want to throw a Mad Max themed part some day. We will use random objects to make our costumes and make foam weapons.
Once everyone is ready, we will split into two groups and walk around the block in different directions. When we catch sight of each other on the other side, we will yell at each other, charge and have an epic battle in the street.

I wonder what the neighbors will think?

[jbiscuit]

^ This just got weird.

[wrath]

Wisconsin is one of the few places where renting is cheaper than owning. It's almost like they think it's New Yawk City. There is nothing wrong with renting. In fact, renting in a neighborhood before you buy is a great idea.

If you plan on selling a house in the next ten years before you even buy it, and it won't be covered under a relocation package, then the idea is fairly terrible in a financial sense unless you got an awesome deal on the current house. You *should* factor in costs associated with the home selling/buying process if you are planning to sell it.

One of the nice things about living in a more expensive neighborhood is that the cost of entry keeps people like me out.

Anyone that buys a starter home wants to "leave their mark" or "make it their own". So there is no incentive to have a "finished starter home". It's a money losing prospect unless you need shiny whizbangery in your starter home to show off to your punk friends that still live with ma and pa and don't care about the fact that no one likes your Ikea cabinets. It isn't until you get one step beyond a "starter home" that having a house that is "finished" makes sense and that's because the people buying that house already went through the pains of "finishing a starter home".

Buying a 2 bedroom 1 bath house is a terrible idea, unless you're old and plan on biting the bullet in it. Buying a 3 bedroom 2 bath house is fine, that is reasonable to have a few kids in if you so choose.

[95 TA - The Beast]

One other thing:
I want to throw a Mad Max themed part some day. We will use random objects to make our costumes and make foam weapons.
Once everyone is ready, we will split into two groups and walk around the block in different directions. When we catch sight of each other on the other side, we will yell at each other, charge and have an epic battle in the street.

I wonder what the neighbors will think?

Unless it is on Halloween I would think the cops would get called pretty quick in any decent neighborhood... If they didn't then good luck living in a slum where it is obvious that no-one cares about much...

Honestly, it is that kind of stuff that tends to upset others... Do that out in a field somewhere, that way you aren't making a spectacle... But to start "roaming" like that and then "mock battle" in the street is a public disturbance... Same goes for drag racing and burnout contests...

[jbiscuit]

^ Exactly this. I am a car guy and I will NOT tolerate or allow wreckless driving in my neighborhood. PERIOD. Why? Cuz we don't have sidewalks by me and there are a LOT of kids in the neighborhood. Bikes, walking, riding scooters you name it. Thankfully everyone seems to get this and drives slowly and cautiously through the neighborhood which is good. Only once have I seen a tool driving way too fast through the circle. The way I see it, a residential area is NOT the place to try out the new tires or the new tune. Take it out to the country somewhere. Within 1 mile of my house I'm in farmland with so sideroads and fresh asphalt.

Putting on mock fights or battles in a neighborhood isn't going to earn you any approval from the neighbors. People that are loud, obnoxious, create disturbances, play music WAY too loud and are generall inconsiderate to others get the same in return as far as I'm concerned. Plenty of options like parks and other areas to carry out your airsoft fantasies or Magic the Gathering meet n greets where you won't disrupt others.

[Al]

^ This just got weird.

Weird, but harmless. I'm having a little fun.
I do wonder how the locals would react if I ever parked a rat rod in the driveway (i won't torment the neighbors with a loud exhaust).
I'd hate to be the person that makes everyone else say "there goes the neighborhood."
But still, I can be a bit eccentric at times. In some areas, standing out can work against you.

But to start "roaming" like that and then "mock battle" in the street is a public disturbance... Same goes for drag racing and burnout contests...

Thanks for the advice.
Truth is, I know some off-beat people. No hard-core biker or punk types. Rather nerd and sci-fi types.

If not Mad Max, it will be a bunch of Storm Troopers.

[Al]

Wisconsin is one of the few places where renting is cheaper than owning. It's almost like they think it's New Yawk City. There is nothing wrong with renting. In fact, renting in a neighborhood before you buy is a great idea.

If you plan on selling a house in the next ten years before you even buy it, and it won't be covered under a relocation package, then the idea is fairly terrible in a financial sense unless you got an awesome deal on the current house. You *should* factor in costs associated with the home selling/buying process if you are planning to sell it.

One of the nice things about living in a more expensive neighborhood is that the cost of entry keeps people like me out.

Anyone that buys a starter home wants to "leave their mark" or "make it their own". So there is no incentive to have a "finished starter home". It's a money losing prospect unless you need shiny whizbangery in your starter home to show off to your punk friends that still live with ma and pa and don't care about the fact that no one likes your Ikea cabinets. It isn't until you get one step beyond a "starter home" that having a house that is "finished" makes sense and that's because the people buying that house already went through the pains of "finishing a starter home".

Buying a 2 bedroom 1 bath house is a terrible idea, unless you're old and plan on biting the bullet in it. Buying a 3 bedroom 2 bath house is fine, that is reasonable to have a few kids in if you so choose.

I have no intention of trying to flip or "invest" in property as if I wanted to make a profit off of such dealings.
I've looked into renting the proper facilities for my hobbies and interests and found that it would be much more expensive than owning. My break-even point is 5 years out. If I were to sell the house and move to another of equal value, I'd expect the realtor cost to be about 3-6%, which is acceptable. This pushes the break even point out another 6 months to a year.

When it comes to interior renovations, I have professional grade tools. I typically purchase rough-cut lumber and go from there. I've made my own cabinetry in the past and I want to do so again. I think the Home Depot/Lowes/Ikea and other mainstream cabinets are absolute crap. I can produce Clive Christain grade results for less than the cost of Hobo.
I want to perform such renovations for ME, not for equity (althought that is nice), resale or keeping up with the Joneses. I also like the 50's & 60's style bathrooms.

[Al]

The Mad Max post was influences by a Straw-ber-ita. If you don't know already, they are really good.

Back on topic:
I've been weighing the pros and cons of buying all day today.
The BIG question is What if I have to move in 9 months? How much will it really set me back?

[pOrk]

Lol at public disturbance. Glad you guys aren't my neighbors, we have 80 year olds that are more interesting then you to be around .

As for starter homes, that's what ours was 4 years ago. Now I can't see leaving anytime soon, we grew roots in our neighborhood and absolutely love it. Only downfall is small garage, but the huge yard makes up for it IMO

[jbiscuit]

Nobody said don't do what you enjoy, just use common sense. Staging a mock battle in the street would win you over pOrk? lol

I have car guys, loud vehicles etc over all the time. Its not a problem at all. Just how you go about it. I'm respectful of my neighbors.