So now that we're all newly married and crap, we're starting the process of looking for a home. We're pretty much back on our feet after me getting laid off last year, even though we're both making less than at our previous jobs. After doing some initial searches online, I think we're going to go drive around some areas this weekend and check some areas out. We started watching shows on HGTV like First Time Home Buyers and Property Virgins to see if we can learn anything, too.
One of the quandries we're in is whether or not to stay in Los Angeles. We've talked about it and I would rather be doing awesome somewhere else than doing just okay here in California. For the price range of a condo here, we can get a 3 bedroom house in a St. Louis or Nashville suburb. A house. With 3 bedrooms and a basement. A front yard and a back yard. And no stupid monthly HOA fees, which I'm guessing is a huge frustration for first time homeowners.
Oh, California...why must you frustrate me so?
The other thing to consider is that since I'm half-black/half-Chinese/half-Irish, we would need someplace tolerant of interracial couples. I imagine anyplace near a big city has to have some level of diversity (along with a handful of bigoted morons, of course) but I have no experience living anywhere but the melting pot of California.
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6 comments:
Here's where those Facebook quizzes are so helpful! :)
The pacific northwest is nice if you like cooler temperatures. Especially the pan handle of Idaho! Breathtaking!
I would be very, very sad if you moved out of CA. I get it, though. It's ridiculous here.
We looked at a condo in Malibu that might be in our price range (maybe?) and it was disappointing to say the least.
For the record, Adri, I would be sad to leave California and leave so many great friends (like you and Jenny!) behind. The decision, whatever it ultimately will be, is not going to be easy.
No. Nope. Nicht. Nein. No way, Jose. You two are not, I repeat NOT, leaving California. Ever. End of discussion.
I watched Property Virgins and other shows on HGTV, and they helped a little.
HOAs are frustrating, but if they pay for things like trash, water, and gas, then at least you don't have to pay those bills every month. Also, homeowners insurance for a house costs way more than for a condo, because, much like renters insurance, you're not paying to insure the exterior like you do a house. So you'd be saving money there as well. Also, you'd be saving money on maintenance; there's not a whole lot that can go wrong in a condo. And, it's great having a lawn, but mowing and edging it every week is not so fun.
They extended the first time homeowner's credit, so if you buy a house within the next year, you get an $8,000 tax credit that you don't have to pay back. Depending on your HOA, that would cover roughly the first two and a half years. You have to live in whatever you buy for three years to fully keep the credit, if you sell early, you pay a prorated amount. Plus, you're going to be able to write off the interest on your loan, I've already paid almost $5000 in interest this year, but my tax return next year is going to be a lot more because I can write it off.
My plan is to keep saving, then sell and buy a house in three years. And it's already been 8 months; time flies.
The only advice I have is that you have to decide to either do it or wait to save more money. There is so much crap you have to do and get done and if you're on the fence or don't have your stuff in order, it's just not going to happen. Get pre-qualified first; they're going to give you some insane amount, but just budget for how much you want to spend each month and stay in that range. You also have to be active, I checked this website everyday and would email my realtor to set up appointments. There are deals out there, but usually the first full offer gets it, so you have to see it as close to the first day as possible and be ready to jump on it if it's in your price range and you like it. Also, be prepared to pay more than they estimate in closing costs. Their estimates are always wrong, even when they high-side it, so that can be a little aggravating. You also have to pay for an appraisal, which I think is a scam, and an inspection. But again, for a condo, they don't charge as much.
I can give you my realtor's info if you want, he's a cool dude, and he doesn't pressure you into anything. I would not use his finance guy though, he sucked. I might know someone else for that and they might waive some of their fees for a referral. Just let me know.
It's really not going to get any better than it is right now. Rates are still low, and the more the economy starts turning around, the more house prices are going to go back up. I looked at it as I needed to get my foot in the door and start building equity instead of throwing money away renting.
Wow, Tyler...very insightful! A lot of great info in that comment. I can certainly understand why you guys would want to live in a different state where things are cheaper, but you have a brother, sister, and 2 adorable nephews here in CA who would miss you tremendously. Hope y'all decide to stay here! Love you guys.
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