Housing

Discussion in 'General Discussion' started by Solayce, Jan 27, 2019.

  1. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    Something else I could use extra eyes on, housing.

    We have been renting for years from a Navy guy. Our lease is up in May. He may be about to retire and move away, or get a new assignment, that might move him elsewhere. He's got like 5 kids, with 2-3 still to go to college, so he wants to sell in any case that has him leave the area. We've been very stable, and he's been very responsive, for going on 7ish years at this point. It would be great to get a couple more year here, as we'd definitely be in a place to buy with more money down, but if it doesn't happen, we'll be ok.

    Here's the thing though. Starter homes in the area I live start around 550K. Rents are around 2400-2600+. We might be able to get 3.5% down on a townhouse (350-400k) before May. Current commute, 20-30 minutes each way. There could be options for manufactured homes for at most, 180K. The are we live is optimal due to services for my kid and literally any other area would add at least 30 minutes to commute.


    Anyone have any experience, or research, into manufactured homes? Quick calcs on a 30 year loan, or even 15 for that matter, are cheaper than rent here, though I guess lot rental could easily make it close. Logically, it seems to me that even if the market tanks when we want to move, we could still rent it out or stay put. Basically, there's at least a chance to make some cash for the next, "real" house, as opposed to continuing to rent. IS that crazy for some reason? What don;t I know? Didn't @taket go into real estate, if he's still around?
     
  2. Chemosh

    Chemosh TZT Addict

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    Do not get a manufacture home. Most other home values go up over time, manufacture houses drop in value. I'd say get a apartment and aggressively save. If you can only afford to drop 15-18k on a house, it'd be better just waiting until financially you're ready
     
  3. Czer

    Czer I'm a poor person. The lambo is my cousin's.

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    That's way to little of a down payment, you need like 20% to avoid the extra interest payment.

    You shouldn't even be looking at property that expensive honestly, find a small condo you both can live in, while you live in that and build up equity start another saving pool for another home, you can eventually turn the condo into an income property that will stabilize you.
     
  4. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    Average home prices in San Diego are 550k+. No one has 20% for that as a first home. PMI is a necessary evil in most cases.

    Understood, but any idea of average drop? At the price difference between 180k-550k we'd be building some equity and also saving at our current rate. At least that's the thought.
     
  5. Czer

    Czer I'm a poor person. The lambo is my cousin's.

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    I was in Ocean Beach, San Diego for 2 years (5 minutes from the OB hotel), the problem with the housing there is that it's like 70 percent kids inheriting their parents properties, and a massive shift in east coast population moving to the west coast in the recent years.

    What's the area you live in? You can give a vague description like 20 minutes from la jolla etc
     
  6. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    I work in La Jolla and live in Clairemont.
     
  7. Czer

    Czer I'm a poor person. The lambo is my cousin's.

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    I'll never understand how a garbage area like pacific beach can be right near La Jolla.

    But you're also right next to La Jolla, I understand the desire to live closer to work but you could afford to live farther away, the CFO of my last company would drive from rancho bernardo (which is also pretty expensive) to Ocean Beach every day etc

    So this isn't exactly helpful advice, but I suggest looking maybe slightly further inland for cheaper, I can find prices down to 399k for a 3 bed 2 bath condo out that way and that's just glancing.
     
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  8. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    Yeah, it's tough here. RB is like 1hr on a good day, 2 on a bad one. :/
     
  9. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    and also, price drops that far out are not that much.
     
  10. vaedaen

    vaedaen TZT Veteran

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    not much advice here but good luck man -- we just bought our first house a little over a month ago. the process is one of the most stressful events i have gone through.
     
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  11. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    Thanks Vae. You still in Bay Area? If so, did you have to trade off for commute time? Worth it?
     
  12. Velox

    Velox TZT Abuser

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    I don't know the US housing market very well, but good neighbours are worth a lot. What kind of area would that be for a manufactured home?

    They key is really earnings. If you both have a dependable income and make comfortable money, then the extra 1% from PMI shouldn't be a big deal, otherwise you have a difficult choice. It's basically 5000 a year until you've saved $100k. Even with PMI and maintenance, wouldn't it still be around the amount you pay in rent now?

    Interest rates will probably continue to go up a bit, so careful with short loans. It also wouldn't surprise me if housing prices went into another dump soon, but timing the market is difficult and if you plan to live there for a long time it doesn't matter anyway (as long as the bank/PMI cannot demand more collateral in your jurisdiction?). In the long run, a house is pretty much always a good investment, if you can hold on to it.
     
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  13. Sear

    Sear TZT Neckbeard Lord

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    Family owned a manufactured home park so I've spent plenty of time in them. The quality of them varies wildly, but some of them are actually pretty nice (in spite of negative stereotypes). I'd research the comps and price history/trajectory of the area as a starting point. Can you link us what you're considering?

    I've owned for the past 3 years and my unsolicited advice to anyone considering doing so would be not to underestimate any repair/maintenance costs. Factor that shit in with your mortgage, house insurance, property tax, and how much you're getting gouged in interest on the mortgage. I pay $12k annually for property tax alone (on two houses). On a bad year where repairs are required, it can easily end up being more expensive than renting.
     
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  14. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    That's the main reason I am considering manufactured, it's literally in the same area. Keeps commutes and access to services the same.
     
  15. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    I don't have anything in mind yet, but everyone says it's a bad idea, but I'm not coming from a traditional place. My kid will need a ranch style house for mobility issues in the next couple years so accessibility and a nearness to services are important. Also, these 550-600K "starters" were built in the 60s and 70s with absolutely no updates; maybe paint and appliances if you're lucky.
     
  16. Sear

    Sear TZT Neckbeard Lord

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    Well I'd avoid that like the plague. I didn't even look at anything built before the 80's. It's asking for a bottomless pit of expensive repairs when you get a house that old.

    You prob already know this but stay away from "mobile homes" altogether, which are not the same thing as manufactured homes. To play devil's advocate here against manufactured homes: they generally don't appreciate in value well (or at all), you probably won't have great insulation (though this is probably a non-issue where you're at), you're not going to get thick structural integrity so noise will travel more easily, ceilings are usually low, and your ability to remodel or customize it will be limited because of how they are designed.

    Not trying to be all doom and gloom, but these are just factors I'd consider before committing. Goes without saying, but hire a good inspector before you make any decisions.
     
  17. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    unfortunately, the age of the house in San Diego cannot be avoided until you get much closer to $1 million.

    I guess it might all come down to, is my reasoning fucked up? 180K is for a brand new manufactured home, with all new appliances. The possible, and unresearched, bonus for me is that, I will be building some equity while also saving; almost like a rent to own situation. If that part is a pipe dream, then maybe the negatives do outweigh the positives of location, but location is a secondary factor.
     
  18. Red

    Red TZT Neckbeard

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    600k for a house built in the 70's with no upgrades? That's new levels of stupid if you buy that.
     
  19. Solayce

    Solayce Would you like some making **** BERSERKER!!! Staff Member

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    At 600K it might be as young as the 80s!
     
  20. Red

    Red TZT Neckbeard

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    That's dumb and I would rather take a 2 hour commute to work