Seeking housing opinions

[Droopy]

I'm looking for a new place to live and I have several options and I'm wondering what you would do.

I currently live in the suburbs with my parents. I've owned three houses around this area and they've all proved to be too expensive for me. So if I'm going to buy a house it's going to be in the inner city where housing costs are cheaper. I'm looking to pay around $400-$500 a month. I know where I can get a nice house right now in the city for about $45,000. It's in good shape, I've looked through it. My payment would be around $425 a month. That's principle , interest, taxes, and insurance. The only problem with owning a house is that you have to pay for upkeep.

My next option is to rent. This is the one I'm leaning toward right now. I can get a nice apartment anywhere in the Dayton, Ohio area for $400-$500 a month. No upkeep of course, but you don't have the investment and tax breaks that you do with owning a house. Home ownership is also more private.

Next option is to buy a mobile home. I've lived in a mobile home before and it isn't bad if you have a nice trailer. The problems with it are that mobile homes depreciate in value over time and you cannot get a home loan for a mobile home usually. You have to get a signature loan and the interest rates are double to triple on those compared to a conventional home loan.

What do you think?

[malta blue]

1. If you can get an ownership option for the same price as the upkeep

go for the ownership. As you stated above, it is more private and you get tax breaks. As far as the upkeep is concerned, I would utilize the tax breaks to invest back into the upkeep. I think as long as you budget for them, the ownership issues are not too bad....all this IMHO option, of course.

Good luck. I have been a renter and an owner as well. I find ownership more rewarding and liberating - until, of course, you want to sell. Then, it is a hude pain in the neck....

[Droopy]

2. Thanks

I enjoy living in a house most of all as well. I guess that's the American dream. The house that I looked at is perfect for me. It has three spacious rooms downstairs. A kitchen, dining room, and living room. Upstairs are two large bedrooms and a big bathroom. It was built in the early 1900s. Lots of character. There's a two car garage out back as well. I guess I'm kind of scared about owning a home. It's not worked out for me 3 times now.

[malta blue]

3. sounds like a great house. I am going househunting myself in

a couple of hours. I wish I could find a house as econimical as the ones in your area, from the sounds of it, but alas...

Keep us posted!

[zanne]

4. $400 to $500 a month for rent?!

I think I'm moving to Dayton! You can't get anything around here for under $900 a month.

[Droopy]

5. That's the good thing about living in the midwest

Bad thing is that jobs don't pay as well.

You won't get anything fancy for that price. We still have our higher priced town homes as well as the trendy apartments downtown. But I can get a nice 2 bedroom right up the street from my folks' house for $460 a month and we live in a more expensive area.

[Casper Alabaster]

6. A house for 45K?

I'd be leery; if you aren't under-the-gun so-to-speak, talk your parents into a little more chill time. Doing research in this aspect is key. Buying a trailer is a waste, unless you're making a documentary with a grant.
I'm kind of looking at South Dakota myself.B-)

[Droopy]

8. That's not uncommon in Dayton

Of course I will have a home inspection done if I decide to make an offer. On the first glance, though, it looks solid.

If you are seriously thinking about moving to South Dakota I think you will find very affordable housing arrangements there. Probably somewhat like Dayton.

[Maineiac]

7. When we first got married

We rented. It was OK, but you have to deal with landlords and people living all around you. For the next 20 years we owned several houses. That was OK as well, but the up keep, ever increasing taxes and the cost of heating it are a killer. I got down sized in 2004 and we went back to apartment life. We found a complex that caters to adults only so there's no gang of kids roaming around and all our neighbors are nice, friendly people. So, I agree. It's a tough choice. Owning your little piece od heaven is nice, but those unexpected costs can bury you. Mobile homes are big up here and a viable option. Good luck making your choice. Sorry I don't have a definitive answer for you.

[Droopy]

9. I never thought of trying to find an adults only place

I've heard of 55 and over trailer parks, but that's about it. I will have to check into that.

[NewJeffCT]

10. $425/month - including property taxes?

Sometimes, city property taxes can be a bit higher than the suburbs - it's a big problem here in CT. so, you might have a bit higher price if you go a bit further out, but lower property taxes.

I would make sure you do your due diligence if you buy a home - have homes in the area sold for around that same $45,000? How old is the home, and how new are the various systems in the house (heating/furnace, hot water heater, electrical, plumbing, etc) - it's one thing to buy a home, only to find out in a year that you're in desperate need of a new roof, which could be $5,000, give or take, or even a new hot water heater for $500-$700

[Droopy]

15. If I buy a house I will definitely get a home inspection done

including a termite inspection. I'm pretty good about guessing what a house might need. I've owned 3 homes before including one fixer upper. I can do a lot of work myself on a house. You won't get me up on a roof, though. I'm deathly afraid of heights. :)

[NewJeffCT]

19. You're a better person than me, then

If it's more than screwing in a light bulb, I can struggle. It took me a bit just to hang a new towel rack in our bathroom yesterday.

[trof]

11. Buy the house.

IMHO the benefits far outweigh the drawbacks.
If you're moderately handy you can do most of the maintenance yourself.
Plus, whenever I tackle a project around the house I figure I have more incentive to do a good job and do it right than someone I hire. To me, it's an investment; to him, it's just a job.
Of course there are some exceptions, but I believe that to generally be true.

[EFerrari]

12. Buy the house. If the payment is under $500, put the balance

in a bank account for future repairs, e.g., if the payment is $475, put away $25 for when you need to fix something.

Those numbers are enough to make me cry. We haven't seen them out here since the 70s.

[hippywife]

13. Maybe look for a

house for rent in a little more rural area, possibly with an option to buy.

[Droopy]

18. Hmmm, hadn't thought of renting with an option to buy

What makes you say rural area? I like it out in the country, but prices are generally higher out that way. This area is opposite of most places. The expensive places are out in the suburbs and the farms. It gets cheaper as you move closer to the city center.

I would have to get probably about 75 miles outside of where I work before I could start seeing cheap places out in the country.

[hippywife]

21. I live in a rural area

about 20 miles south of the last little suburban area. I think rental houses, which are few, don't go for very much. This is in Oklahoma but I used to live in Columbus, OH and there were also some rental houses that went for reasonable monthly rates.

I don't know how big Dayton is these days, probably not as big and spread out as Columbus has gotten but maybe those days are gone.

[NMDemDist2]

14. why not a downtown co-op or condo?

best of all worlds

[Droopy]

16. I don't know what a co-op is

and I've ruled out condos. It seems to me that on a condo you have both a rent charge and a mortgage. If I'm going to buy a place, I'd rather own it outright and be able to do with it what I want to.

[philosophie_en_rose]

17. If you like the house, I'd go with that.

A better investment over time.

[Kali]

20. That is a pretty old house.

Don't get me wrong - I live in one, but I also know it desperatly needs a new heating system and some of the plumbing is from the 40's. I love old buildings - they were obviously built to last, but they have thier quirks and as mentioned often there has been "remodling" of systems that may need it again soon. If you are prepared for it then no problem.

[Wcross]

22. I would seriously consider the house.

Just make sure its a good neighborhood. I did what your thinking about but was lucky to find a small house on 15 acres for 50k. The bank claimed that I could "afford" a 200,000 dollar mortgage. I don't know how a person lives with only half their paycheck left after they pay living expenses. I don't know how people sleep at night knowing that if they lose their job the lose their house.
You are VERY wise to keep it affordable, there is a sense of safety in that.

[Lex]

23. Buy the house, take your tax refund on the mortgage interest and

property taxes and start keeping that in a separate savings account earmarked for house maintenance.

[lutefisk]

24. Location, location, location.

How's the neighborhood- and the neighbors? On a busy street, back yard a Wal-mart parking lot, on a flight path for the airport? What are the "days on market" in that area" Get a list of home sales in the area for the last year or so and see if that tells you anything. How long are you likely to stay in Dayton? And finally, three bedroom houses are much more desirable than two bedroom houses- for resale as well as just general livability.

For the kind of total cost and monthly payment you're talking about, buying seems like a good choice, if you plan on staying in the area.

[Rosemary2205]

25. Do the math. Is ownership REALLY a financial plus??

Maintainance - realistically, what are you going to spend on maintaining an older home? What is the average appreciation rate in the neighborhood?

For instance my home is very modest and we bought it new 22 years ago. Over the years our house has doubled in value. However, exterior maintainance, plumbing, a new roof, various water heaters, HVAC maintainance, blah blah blah, have eaten up most of our projected profit. Factor in the real estate fees to sell and that will pretty much eat up the rest. We have not improved our home, just maintained it, as my neighborhood is not appreciating well enough to support improvements.

Just something to think about........

[smitty]

26. Any house selling to $45k has to be a dog, no matter where it's

located. I'd rent.

[liberal renegade]

27. Buy a rundown house in a good neighborhood...

you can't go wrong...just make sure it has a good foundation.....

[Droopy]

28. Thanks everyone

I appreciate all of your opinions and advice even though I didn't reply to every response in this thread. But I did read them all. Thanks again.

[SmokingJacket]

29. Buy the cheapest house on the block.

We did that -- it was a "distressed property." Just getting in there and scrubbing with some Murphy's Oil soap and pulling the weeds out of the yard and painting it a pretty color vastly increased its value right away.

You lose every cent you pay in rent, so even though you don't have to pay for upkeep, you lose money. Same with the mobile home.