OT - Buying a House

[SubbaBub]

You even skipped the 5-6% you lose in the sale.

Essentially like many businesses people spend way too much time worrying about the expense side and not the revenue side.

You are much better off investing your time and efforts to grow your top line rather than minimizing expenses.

If you are young, you are much better off spending your time investing in your career than mowing your lawn or raking leaves.

Live in a condo and throw yourself into your job - the top line growth is virtually unlimited - what you can save mowing your own lawn is pennies.

Yeah, I wasn't trying to do a full analysis, just hammer home the idea that a primary residence is not an investment. Buy because it fits your lifestyle and only if you have all the rest of your financial house in order.

 

[MadDogRevival]

Live in a condo and throw yourself into your job - the top line growth is virtually unlimited . . .

I did this for a few years. Worked 70 hours a week at a firm where partners made north of a million a year. After a few years I started to equate "throw yourself into your job" with "throw your very limited time on the planet into the toilet chasing money."
Eventually moved to a place much less cultured than CT. I'm sure many here would look down their noses at it.
But my time is much more my own than it ever was, and I find that I've grown to value that so much more than what gobs of money used to buy me.
Not saying you're wrong - I respect that there are limitless paths from which to choose.
Just saying that mowing your own grass, while not paying well, won't kill you 10 years sooner because of stress-induced heart failure either.

 

[U2debo]

If you are looking for mortgage financing I work for a great bank (not a big national bank) in the Newington area and we have some really neat mortgage financing plans that include built-in improvement financing (if you are looking for a bit of a fixer-upper or just plain regular improvements) for purchases PM me if you want to discuss
Good Luck

@gtcam agreed to buy a house in Newington from my family, please PM. Interested to hear your terms

 

[superjohn]

I lived in Manchester for 11 months in one of the Mills back in 1995 for 22 months. Ditched the lease early, with penalty, to GTFUDGEOUT.
Thought the place was a hole. Went there on a whim because it was rated highly in CT magazine and was between UConn and Hartford, where we studied and worked, respectively.
The day I wanted out was when I walked into a convenience store near the Mills and there were adult videos, with explicit cover scenes, by the front door on ready display.
That was the place where I bought my first handgun and started carrying it. Thought the schools were poor.
Long time ago and we really didn't spend much time out and about, so, granted, limited exposure, but I'd strongly recommend against - PM me if you want more details that would get this post deleted.

You could buy hardcore videos and handguns at your local convenience store? That place sounds amazing.

 

[I Bleed Blue]

Middletown.

Central location (duh) with easy highway access. Not as expensive as Farmington, Southington, Glastonbury, etc. Solid Main Street with good restaurants and bars. Plenty of young people and good gym options.

 

[whaler11]

I did this for a few years. Worked 70 hours a week at a firm where partners made north of a million a year. After a few years I started to equate "throw yourself into your job" with "throw your very limited time on the planet into the toilet chasing money."
Eventually moved to a place much less cultured than CT. I'm sure many here would look down their noses at it.
But my time is much more my own than it ever was, and I find that I've grown to value that so much more than what gobs of money used to buy me.
Not saying you're wrong - I respect that there are limitless paths from which to choose.
Just saying that mowing your own grass, while not paying well, won't kill you 10 years sooner because of stress-induced heart failure either.

Whatever floats one’s boat. Was just talking to the income statement aspect of home ownership.

You might note the direct relationship between wealth and life expectency though if you really want to do the math.

 

[jdb50]

Sometimes it's about whether you can stand other people. I have never enjoyed having strangers above, below, and to the side of me in an apartment building. I agree the days of just buying any property and watching it double (or more) in value over time seems to have ended in CT.

Rented the top floor of a 3 family in the early 80's. Being non smokers the smoke rising and coming in our windows was one thing. The couple in the middle floor had a baby and we got to listen to the fight that happened when the husband wanted action from the wife when she was not ready. All out screaming and crying. We bought a fixer upper.

 

[David 76]

Be patient. House buying has a way of working itself out.
Good luck!

 

[nomar]

Yeah, I wasn't trying to do a full analysis, just hammer home the idea that a primary residence is not an investment. Buy because it fits your lifestyle and only if you have all the rest of your financial house in order.

I will say that in 2013 I paid through the nose for a 1100-sq ft 2BR in a co-op in Brooklyn and it's gone up in value almost 40%. We have put some work into it but it's been the most lucrative investment I've ever made.

Of course NYC real estate is its own animal (our next apartment will be disgustingly priced) and I know CT home values have had a different fate.

 

[CTBasketball]

So it sounds like go the condo route for ease of renting after moving out...

Or buy a multi family home. And stay away from single family homes that are aggressively priced or are in bad towns.

 

[August_West]

A while back I posted I often did "mostly pro bono" work and he busted my butt for the "mostly" part.

Slight correction but your "mostly pro Bono "declaration was commentary on a specific client ( Amish iirc), not as a whole.

That's why it was humorous.

 

[TRest]

Rented the top floor of a 3 family in the early 80's. Being non smokers the smoke rising and coming in our windows was one thing. The couple in the middle floor had a baby and we got to listen to the fight that happened when the husband wanted action from the wife when she was not ready. All out screaming and crying. We bought a fixer upper.

Other people suck.

 

[uconnphil2016]

I lived in Manchester for 11 months in one of the Mills back in 1995 for 22 months. Ditched the lease early, with penalty, to GTFUDGEOUT.
Thought the place was a hole. Went there on a whim because it was rated highly in CT magazine and was between UConn and Hartford, where we studied and worked, respectively.
The day I wanted out was when I walked into a convenience store near the Mills and there were adult videos, with explicit cover scenes, by the front door on ready display.
That was the place where I bought my first handgun and started carrying it. Thought the schools were poor.
Long time ago and we really didn't spend much time out and about, so, granted, limited exposure, but I'd strongly recommend against - PM me if you want more details that would get this post deleted.

How long ago was this? It's changed a lot in the last 3-5 years I'd say

 

[DaveHuskiesFan]

Yeah, I wasn't trying to do a full analysis, just hammer home the idea that a primary residence is not an investment. Buy because it fits your lifestyle and only if you have all the rest of your financial house in order.

Someone subs to /r/financialindependence

 

[uconnphil2016]

And only 75 minutes from any place of employment.

Not if you work at the bowling alley on Bear Swamp Rd

 

[whaler11]

Not if you work at the bowling alley on Bear Swamp Rd

It would be very odd to live in Hampton and work at the bowling alley in East Hampton.

 

[Hans Sprungfeld]

Nope I work in Essex.

I can throw a rock and hit that stupid Thomas the tank engine from my office.

it was running last weekend. Got caught in traffic again. What a beat down.

This is all I could think of last Sunday when friends were suggesting that we do a dinner train ride some time.

 

[uconnphil2016]

It would be very odd to live in Hampton and work at the bowling alley in East Hampton.

Thought you lived in East Hampton

 

[uconnphil2016]

Thought you lived in East Hampton

Wait sorry nvm I misread the post you were replying to

 

[Robertelamin]

Well CTBasketball I'm sure you were able absorb 7 pages of information that cleared everything up. Now go out there and get your house, multi family house, condo or rental in Southington, Wolcott, Plainville, West Hartford, Newington, Middletown, East Hampton, Farmington or Rocky Hill. Just stay away from Bristol and Meriden (except the good part near Wallingford)! Good luck!

 

[MadDogRevival]

Slight correction but your "mostly pro Bono "declaration was commentary on a specific client ( Amish iirc), not as a whole. That's why it was humorous.

Um. I thought it was allegedly humorous because pro bono means free and when I wrote "mostly pro bono" it's like writing "a little bit pregnant."
@8893 can you settle this?

 

[Tuna]

I bought my first house last year. I like the house, love the location and there are things about home ownership that are nice but I'd rent an apartment forever if I could.

I'm sure I'll feel differently when I'm not making any mortgage payments someday but I would not recommend someone in their 20s buy a house unless they've already started a family and really need the space. The financial benefit (if there even is any) will not be close to great enough in my opinion and physical mobility is important for potential future career moves.

 

[MattMang23]

Well CTBasketball I'm sure you were able absorb 7 pages of information that cleared everything up. Now go out there and get your house, multi family house, condo or rental in Southington, Wolcott, Plainville, West Hartford, Newington, Middletown, East Hampton, Farmington or Rocky Hill. Just stay away from Bristol and Meriden (except the good part near Wallingford)! Good luck!

I think we have adequately equipped him to make a sound financial/lifestyle decison.

 

[DonaldDraper]

I own my house, have flipped a couple and have a couple of rental properties. I like buying real estate, but I live near a biggish city with a super strong housing and rental market. I would never buy a house in any of the towns you listed with the expectation of making it a financial instrument. You get whacked by the real estate agent for 6% when you sell it and they way the towns steal the value out of your house by raising taxes is a very real threat. The state budget has been squeezing municipal aid and it is likely going to make the real estate taxes worse.

When I buy rental properties it is tough to find properties in good shape that can attract quality renters and break even when putting 25% down. Personally these are long term plays for retirement annuities. The concept of just renting it out when you leave can be more difficult than you think. You also have to leave your down payment in the property so you’ll need a fresh batch of cash for the new house.

Buy a house cause you want to own something and make it your own and enjoy it. Buying a house in suburban CT because you think you’re throwing your money away on rent could backfire. At 250 your probably only putting 3600/year in principal payments at most. If you’re there for 5 years and the property appreciates at 2%/year you’re barely outpacing the agent fee when you sell. Put in a couple of oh shhhh projects and there is no real appreciation. The end result is that you are gambling 18k ish in principal pay down over 5 years in a good scenario. If the market turns or the taxes get jacked or something else happens, you have to choose between living in your starter home for 15 years or losing your down payment and renting again to get a different spot.

I totally get the desire to break the cycle of renting, but CT market has been a tough place for real estate. Needs to be a 10 year play and a lifestyle decision. My two cents.

 

[August_West]

Um. I thought it was allegedly humorous because pro bono means free and when I wrote "mostly pro bono" it's like writing "a little bit pregnant."
@8893 can you settle this?

Right but you said your work for that client was " mostly pro Bono"

Which means not pro Bono lol.

On the other hand if you have some clients pro Bono and some not, That makes sense and good on ya mate.