Thinking About Buying A House

Before too long, this place will no longer be available for rent. recently pointed out to me that I could get a house in Hamtramck for the same price I'm paying monthly here. I've been talking to Bill for a long time about sharing a place, so he keeps reminding me to call the bank about how much of a loan I could get. During the first of the recent breakdowns of my car, he kept having to remind me to call a mutual friend of ours to repair it, and Bill had a dream in which I was a Dungeons and Dragons character. Resplendent in helm and mail I slew a dragon, but was then repulsed by a shallow stream about a foot wide running between me and the treasure. In real life, this stream always involves filling out paperwork. I've probably wasted thousands of dollars on insurance, taxes, and medical bills, in order to avoid a single sheet of paperwork. And I would never, ever send out resumes unless I lost my job, no matter how bad it was. I happily would throw money at somebody to do all this stuff for me, and late fees are merely the equivalent of that expense. That's why internet automatic bill pay has worked wonders for my financial condition. I keep milk crate filing cabinets and lug them from house to house, but I'm not fooling myself. A filing cabinet is just a trash can that I never empty. You wonder why I turn down being conchair-- wonder no more.

So am I ready to own a home? I don't even want one! It feels like settling down, closing off my options. I'd have to work on them and mow the lawns. They cost money for emergency repairs. Of course Rachel would help pay, but money is short as it is without going into so much commitment. I think I'll just look for somewhere else to rent a room. Any suggestions?

Comments

drkelso on Jul. 30, 2005 9:07 PM

Bite the bullet and buy one. It is one of the best financial decisions you can make and it will greatly help you a few years down the road.

Selling our first home last year got us all the way out of debt for the first time ever. That was a very good feeling.

Working on a house and keeping it up is not as hard as it may seem. There is a wealth of how-to information on the internet that makes it pretty easy to figure out what to do when something isn't working right. I didn't know anything nine years ago and last year I remodeled half of the place by myself.

Its well worth the trouble. Don't forget that the equity return is going to outweigh any and all minor headaches. And ignore the monthly mortgage payment as a debt. Its actually an investment.

One vote for Yes.

flutterby68 on Jul. 30, 2005 9:34 PM

If you don't want to have to deal with yardwork, snow removal, etc. then don't buy a house. Buy a condo instead. Best of both worlds. :)

However, if you want something that is less of a commitment, you can either rent an apartment (usually involving a year's lease) or rent a flat in a place like Hamtramck (usually different terms than your average lease).

drkelso on Jul. 30, 2005 10:20 PM

Good point. I second the notion of buying a condo if you don't want to deal with a house. It gives you a decent investment return as well.

As far as renting anything goes...just say no unless it is for something short term like moving to a new city or something.

sothisislife on Jul. 30, 2005 10:58 PM

As a condo owner of 4 years, I feel I must speak.

I rented various apartments for 7 years, and I hated paying rent. Felt like a waste of money. I wanted a house, but realized that for what I could afford I could not get a house I liked, in a neighborhood I was willing to live in.

I ended up in a condo. I realized that I never wanted a house. Who wants to mow grass and shovel snow? Certainly not I. I enjoy the big fat tax break the mortgage brings, and the fact that my monthly payment will never go up. It has gone down, when I refinanced.

However, I have lived here over 4 years now, which is the longest stretch I've stayed in one place since I was a kid. And I'm getting the itch. Sometimes I feel locked in, like I have no options. The particular condo that I own does not go up much in value each year, so I wouldn't exactly make money if I sold it. (I only put 3% down) and after seeing some neighbors have a tough time selling, I am realizing that it would not be easy by any means for me to get rid of this place.

I try not to feel trapped, but sometimes I really miss having the option to just give 30 days notice, pack my stuff, and start fresh somewhere else.

The grass is always greener? I don't know what to tell you. Just thought I'd give you my perspective.

ericthemage on Jul. 31, 2005 12:15 AM

Since we bought our house in Southfield, we've had to:

- rip off and replace the roof on a dormer because of rot that was leaking into the house
- getting ready to replace all three garage doors
- sand and refinish the floors
- repaint many rooms
- redo some seriously shoddy electrical work (still more to do)
- get estimates on removing a dead tree ($500+)
- last year they estimated our yearly taxes to be about $2,500, and they turned out to be $3,500, so I'm paying $4,500 in taxes this year to make up the difference
- see water in the basement
- fix the furnace
- fix leaky pipes (three times)
- replace a faucet
- replace insulation

Granted, there were houses in better condition for the same price, but none with a three car garage and a huge lot. Still, there's a lot of things that keep popping up that we weren't expecting. And there always will be.

drkelso on Jul. 31, 2005 4:56 AM

Ha...I just can't stop myself from posting again....

If you want to save yourself some maintenance, go get yourself one of those houses in a newer subdivision that's less than five years old. That way you won't be wondering when the roof is going to start to leak and the heater is going to give out.

Seriously...go find yourself a real estate agent and tell them you are trying to decide whether you want to rent or buy. They can hook you up with some numbers and ideas to help you make an informed decision for the area you live in. A real estate agent is your best friend when looking for anywhere to live, even when its a rental. They have connections and can find you a decent place either way for a good price.

Tell them what you are looking for and they can find it for you. Best of all, its free for you. They get their money from the seller or from the owner of a rental, not you.

dawnwolf on Jul. 31, 2005 6:31 AM — Didn't you know?

There is a special circle of Hell. In it there is a table. And pencils and pens. And a thousand-page, empty form which has to be filled out. In triplicate. Without benefit of a calculator; and the fine if you make a mistake is that you have to do it all over again.

You and I, we have this aversion to paperwork in common.