Real estate mess

[fan-of-fans]

I've been trying to buy a house for the last 5 years it never works out. First prices were low after the 2009 crash, looked around 2012 - prices low but not enough savings nor credit. Built credit and savings then prices kept going up and didn't feel secure at job yet. Then when I did felt uncomfortable going in so much debt "in case something happens."

Never expected it would be something this wild. Interest rates were low last year or so but still something didn't feel right. People were saying "prices will go down we're in a bubble," or "we'll be in a recession soon," so I didn't move. We did seem almost back at 2007 prices here in FL.

Now we've got a worldwide economic halt, business are shutting down, who knows how long before this mess ends. Could be 6 months to year. Some say two weeks I fully doubt it.

I expect to lose my job of 6 years. I work in the housing industry, I don't see how we won't see a huge slowdown in construction and a recession. So even though houses will probably go down I'm thinking and would be a slam dunk, (IF I still was to have a job that paid enough), well I won't and now I'll be in a predicament on the opposite side, no income. If I could find another job it probably wouldn't be a mortgage worthy one with all going on. Sigh. It just never ends does it?

All I can say I'm glad I didn't buy and end up paycheck to paycheck of losing my home. I'm in a lot better situation than some will be who borrowed with the idea all would be well always, I'm sure. But it's just so frustrating. What does this mean? The clock starts again to try to get more income, yet when it comes either the prices will probably be up again or the interest rates? It's one things or the other. lol

There has to be some way to beat this, I just haven't found it yet. I'm just trying to take things a day at a time and not think about it. There's more important things than buying a house, I just lose sight of it all.

 

[ea56]

It’s always hard to get your foot into home ownership, but now probably worse than ever.  But don’t give up hope.

 

 Hang onto the cash you’ve managed to save.  This crisis won’t last forever.  Then, when you’re secure in your employment it’s possible due to the almost assured recession/depression coming, with deflated real estate prices you just may be in the position to buy.  

 

Buy only what you are sure you can afford to keep up with the payments on in the worst case scenario.  Then build some equity, and maybe in a few years you may be able to move up.  Even if you find you need to stay in your entry level home its still money in the bank every month that you make a mortgage payment versus rent.  

 

We started with a 1 bedroom condo in 1987, sold with a profit of $12,000 in 1994 and bought our current 2 bed 1 1/2 bath townhouse with the equity, and paid it off in full almost 10 years ago.  

 

This had made our retirement a lot more secure having only HOA dues and property tax for housing expenses of about $600.00 per mo total, versus the over $2800.00 it would now cost to rent a comparable home.

 

Keep your eye on the prize and visualize yourself as a home owner, and it will happen.

 

Eddie

 

[ea56]

Another thought, with stocks at a record low, if you can afford to, buy some shares of Apple, or another stock certain to make a strong recovery. Then sit tight on it and you just may be able to amass a substantial profit to invest in real estate when the market eventually recovers, and it will.  

 

I remember watching an old Jane Russell movie called the “Revolt of Mamie Stover”, in which she plays a prostitute in Honolulu just before Pearl Harbor.   After the attack, property in Honolulu takes a nose dive and Mamie Stover swoops in and buys as much as she can and becomes wealthy beyond her wildest imaginations.  History is filled with people that make lemonade out of these kinds of misfortune.  Better a working class guy like yourself getting a leg up during this crisis than an already billionaire.

 

Eddie

 

[firedome]

Had a RE license in MD

for awhile and have been a small (very) scale RE investor and fixer-upper for 20 years. Timing is everything, am still kicking myself for not buying more in 2008. IMO income will be down for a long time even after this ends, housing will have a major price drop that will take a long time to recover in some markets. Save as much as you're able to, and when it's possible get into the market in any way you can: 1 BR condo, little fixer house, use sweat equity, then move up when the market improves.

 

[tomturbomatic]

Be VERY CAREFUL of condominiums.

 

[ea56]

It’s very true that condo living isn’t for everyone, and there are many HOA’s that shouldn't be touched with a ten foot pole.

 

We’ve only owned condo’s, because in our income bracket in California, thats all we could afford.  The first condo we lived in for 7 years, and bought brand new.  It was a large HOA, 99 units, and there were many defects in construction that resulted in litigation.  It  was a nightmare.  Our present townhome is in an HOA with only 20 units and for the last 25 years its been he happiest place I’ve ever lived.  I’ve been on the HOA board for 24 of these years, the last 15 or so as president, I’ve lost count.

 

 I take my role on the board seriously and get along with each and every resident and know them all by first name.  When we have our quarterly HOA meetings we seldom have more than one or two owners show up, I’d like to believe this is because they are happy with the status quo.

 

Condo living requires cooperation and being respectful of your neighbors.  If you participate in the HOA you can help keep your community a nice place to live.  Everybody gets along here and its really beautiful.

 

For anyone contemplating the purchase of a condo do your research.  READ the CC&R’s, really READ them, and know what is allowed and not allowed.  If you don’t like what you see, then don’t BUY.  Remember, those CC&R’s are a contractual agreement and if you buy in that HOA, you will be expected to abide by them.

 

Carefully review the financial statements and meeting minutes.  Are there and shortfalls in the reserves, any pending litigation or special assessments?

 

Talk with owners and ask them what they like and don’t like.  A condo can be a wonderful place to live, or hell on earth, but then so can a single family dwelling.  

 

You can buy a home in a neighborhood that you like, and then low and behold move in and find out that your living next to the a**hole from hell, and have no recourse.  There are no guarantee’s in life.  But at least with a condo a good HOA board and management company can come to your defense in neighbor disputes.  In a single family dwelling, you are on your own.

 

If it were not for condo living we’d now be in our Golden Years, still renting and spending virtually every dime of our pensions on rent and utilities.  Now we have money in the bank with our equity and less than a quarter of what it would cost to rent in living expenses for housing.

 

Eddie

[this post was last edited: 3/24/2020-01:47]

 

[vacerator]

Hang in there,

and keep the faith of morale. Interest rates may drop, so may market values. If you have enough saved for say 20% down, you won't need private mortgage insurance.
Also, I think that all financial entities should forgo interest charges for the month, as well as rents, or any other consumer charges, rather than the wealthiest getting wealthier while the rest of us get poorer like the other downturn times. Enstate a pick up where we left off policy and keep the moeny moving in both directions. Can't means won't. Those who own anything at all outright can continue on. We're counting our blessings. That's what my foklks would say. Glad they're in a better place, than dealing with this. When I was 12, we drove that summer through part of Appalachia. I saw real poverty, and felt rich.
Sacrificing lives of our elderly for the sake of our economy is brainless as well. the guy who said that is 69 himslelf. The yonger can die also. I.E., a 38 y.o. local police officer yesterday. The dead don't spend much.