Tell me what to do...kind long

hippolover

So we went house hunting here is some info and options.

1. I qualify for 100,000 right now by myself.  I can't count J in anything becuase his job is considered tempory. I did look at 130,000 but they said it  might be harder to get, but it might be doable. We would do a loan that doesn't have a down payment  and is for 30 years on a fix 3.5% interest.  We wouldn't have enough for a full downpayment now, and we have 3 months emergeny fund saved up. Most of this would probably be eaten up with closing costs if we bought a house.

2. Rental: There is nothing where I got my job. poop houses that are basically trashed. We can get some nice rentals 1 hr away. Rentals are about $900.00/month. This would mean J can still stay at his temp job.  Keep in mind, this temp job doesn't have an ending date.  I think they just don't want to pay for benefits and ect.  This isn't his dream job, so he is looking at going elsewhere once we gets hired for a job he does like.

3. Sat-we look at 8 houses. 1 is ok. its 115,000.  No storage.  The only real think would be pull out the carpet in the kitchen. its livable but is not great. Not considered flood zone. House 2 is 145,000.  AMAZING storage.  We both love love love the house. BUT 1. J would have to quit. 2. its considered in a flood zone (most of the town is) so extra insurance. Its not perfect, but great to move into and fix up or adjust to our tastes later. 3. and the obvious its at the top of our price. 4. it needs new electrical.  I seem to be more worried than J on this, which is NOT normal.

So do we rent and I drive 1 hr? or do we get a house that we love with J having no job yet? I read a lot of things online that said I should rent for a year to make sure I like the area.  Well Its a small community, so by visiting, I know I like the area. Good schools (since I work in one) , so waiting a year seems pointless.

TaraW1979

I wish I had an easy answer for you. It's a hard call. If you rent an hour away is it an easy highway drive or back country roads? To me, that matters a great deal. It sounds like you really want to buy, I would just be very cautious. The last thing you want to do is buy a house and have trouble paying the mortgage.

If J doesn't get a good paying job would you be able to afford the $145,000 house on your own salary? Don't forget your insuranse would be higher too since it's considered a flood zone. Also, keep in mind you don't want to be house poor.

Could you fix up the $115, 000 house to make it nice? New paint, new floors, decorate it nicely? If the answer is yes, then I would say go with that one.

Last option- What about the junky rentals in the area? Would the landlord let you fix them up nice? Then at least you wouldn't be responsible for all the potential problems that may go wrong with the house and you'd be able to save money, right?

I hope I helped. You and J have to way out the pros and cons together. I wish you the best of luck!

jtmh2012

Personally, I don't like the idea of "fixing up" other people's property (ie, the rental).  You will never get anything like that financially, but that's me.

As for the rest.  I'd avoid the flood zone.  Granted, you can get insurance, but insurance doesn't replace things like lost wedding photos and other such non-replacables.

Also, there are many people who buy houses based on two incomes.  I personally feel this is a bad idea.  Eventually one of you might want to stay home with the children or just not want to work.  Or one of you loses their job and then lose the house because you can't afford the payments.  There are also people who do it and it works for them.  Just not my thing.

As for gutting your emergency fund / "all your savings" to get the house, I wouldn't do it, but again, that's me.

I spent the first year in my house with my mom paying for my groceries because the payment ended up a little higher than we thought it was going to be.  Not a fun place to be in.  Especially when something expensive breaks.

awarm014

When you say flood plain, do you mean in the 100 year flood plain? Or in it floods everytime it rains hard. The way flood plains work is that if the area has flooded in the last 100 years, or a surveyor thinks that the area is low lying enough, it ends up in the 100 year flood plain. My friend that just bought a house is in a flood plain, but if it would have flooded, this year would have been the year. All of the areas around her were flooded, but she was quite dry.

As far as advice, if you are in a 100 year plain, go for it. If you are in a more consistent flood plain, find out how much it floods and how bad and make your decision accordingly.

I would be worried about the electrical. Unless it is a really old house, it shouldn't need electrical. Also, are you willing live with the house in its current condition? Because if you are at the top of your budget, you probably will not have the money to fix things up.

I definetly would not fix up a rental though. I also think that it is a great time to buy, and if you wait a year, the market might go up.

I hope I was of some help!

hippolover

Mark-
I sure have to say you are wise.  I like your idea on the 2 income thing... Cause it is true.   Plus its a great way to look at mine and J's situation. 

It is considered the 100yr flood zone.  It flooded 100 years ago but hasn't since. The town has been trying to get it removed, but so far no such luck.

As far as fixing things up, IDK that I want to be doing that my first year living in a new town, helping J with a job search and helping him get aquainted to a small town, AND taking on my first year at a brand new job where I am by myself.  I am kinda nervouse that I don't know what I am doing, but then I remind myself that this is what I went to school for. Remodeling seemed for me would be too much right now.

hippolover

Update:
We can't get the house anyways because its in the flood zone.  Renting and driving an hour is our next option.

Thanks for listening to my rollarcoaster ride!

jtmh2012

In Response to <a href="http://forums.weddingchannel.com/main.aspx/wedding-club-boards_january-2012-weddings_tell-me-what-to-dokind-long?plckFindPostKey=Cat:Wedding%20Club%20BoardsForum:5a1804e7-e8c8-4829-9e61-b9d49f3a9b5fDiscussion:30065d8c-fdb3-4f67-a777-629c01ebe8f1Post:0f68d217-f946-4c06-821c-e30bef68b7f1">Re: Tell me what to do...kind long</a>:
[QUOTE]When you say flood plain, do you mean in the 100 year flood plain? Or in it floods everytime it rains hard. The way flood plains work is that if the area has flooded in the last 100 years, or a surveyor thinks that the area is low lying enough, it ends up in the 100 year flood plain. My friend that just bought a house is in a flood plain, but if it would have flooded, this year would have been the year. All of the areas around her were flooded, but she was quite dry. As far as advice, if you are in a 100 year plain, go for it.
Posted by awarm014[/QUOTE]

Here's the problem with those "100-yr" flood plains.  All is means is that *on average* it will flood once every 100 yrs.  That doesn't mean you won't get three back to back floods and then not have it flood for three hundred years.  Averages suck and some people have found this out the hard way. :(

jtmh2012

In Response to <a href="http://forums.weddingchannel.com/main.aspx/wedding-club-boards_january-2012-weddings_tell-me-what-to-dokind-long?plckFindPostKey=Cat:Wedding%20Club%20BoardsForum:5a1804e7-e8c8-4829-9e61-b9d49f3a9b5fDiscussion:30065d8c-fdb3-4f67-a777-629c01ebe8f1Post:71fde04e-fcc1-4480-a578-ead459f937b7">Re: Tell me what to do...kind long</a>:
[QUOTE]Mark- I sure have to say you are wise.  I like your idea on the 2 income thing... Cause it is true.
Posted by hippolover[/QUOTE]

I just want to see you and J make a good choice.  Sucks when people I know get into bad situations.  At the end of the day, it's always your decision. :)

hippolover

Well I appreciate it.  Did Joy offically turn down that job?

sassygirl5401

I say rent and keep on looking, the right house will pop up when the time is right.

jtmh2012

In Response to <a href="http://forums.weddingchannel.com/main.aspx/wedding-club-boards_january-2012-weddings_tell-me-what-to-dokind-long?plckFindPostKey=Cat:Wedding%20Club%20BoardsForum:5a1804e7-e8c8-4829-9e61-b9d49f3a9b5fDiscussion:30065d8c-fdb3-4f67-a777-629c01ebe8f1Post:db984b9f-d375-4efa-bbf6-38b8f35f0b5c">Re: Tell me what to do...kind long</a>:
[QUOTE]Well I appreciate it.  Did Joy offically turn down that job?
Posted by hippolover[/QUOTE]

Not yet.  We probably should.