Home ownership is expensive!

[P1]

Originally Posted by Prowess Symphony

Wow some of you pay more then $10k in property tax?!?! I only pay $300 a year for my 7 acre cabin here in the beautiful West Virginia mountains. No housing codes. Cop-less twisting back roads everywhere. No crime. Most of us leave our houses unlocked and keys in the car. I can't imagine paying that much in tax. I'd never live in or near a city.

Welcome to central Texas. You'll pay about $10K on property taxes on a 1,500 sq. ft. house here.

[KingOfJericho]

Originally Posted by 2011CrazE89

I was curious to know what the current market value was for the area. I was also looking into possibly doing a refi. I'm currently at a 30 year fixed at 3.5%

That's pretty good for a 30yr. It would be pretty silly to go through the whole closing process again to refi a 3.5% 30yr. Couldn't you just check out Zillow or Trulia? That'll give you a pretty good idea. I've also learned that appraisers are the biggest hacks around. They're pretty much just going onto those same sites and finding similar houses. It's a joke.

[Joekerr]

Like everyone else said, don't put too much faith in the appraisal - it isn't necessarily market and that can be a good thing if its being used for property tax calculations.

When we bought our first house, the bank required me to pay an admin cost to cover the cost of them getting an appraisal done on the house. They do this so they can make sure they weren't loaning out too much, even though I was putting 20% down (and yes you parent police, I did get help from my in-laws on the downpayment in the form of an off balance sheet loan - I couldn't save that much up by myself because I'm a loser - satisfied?).

So the appraisal gets done by them...lo and behold, the appraiser comes back with the exact fricking value I paid for it. To the dollar. What a coincidence.

What a waste of my money is more like it.


Besides, in the next 5 years, I bet you see an uptick where you have some comfortable equity in the house...don't stress too much about now.

[Mr Tonka]

Originally Posted by KingOfJericho

That's pretty good for a 30yr. It would be pretty silly to go through the whole closing process again to refi a 3.5% 30yr. Couldn't you just check out Zillow or Trulia? That'll give you a pretty good idea. I've also learned that appraisers are the biggest hacks around. They're pretty much just going onto those same sites and finding similar houses. It's a joke.

True for the most part. If they don't come into your home, that's exactly what they are doing. They'll drive by your house to look for the obvious; a giant hole in the roof, missing windows, etc....

[2011CrazE89]

Originally Posted by KingOfJericho

That's pretty good for a 30yr. It would be pretty silly to go through the whole closing process again to refi a 3.5% 30yr. Couldn't you just check out Zillow or Trulia? That'll give you a pretty good idea. I've also learned that appraisers are the biggest hacks around. They're pretty much just going onto those same sites and finding similar houses. It's a joke.

Originally Posted by Mr Tonka

True for the most part. If they don't come into your home, that's exactly what they are doing. They'll drive by your house to look for the obvious; a giant hole in the roof, missing windows, etc....

This guy spent just over an hour at my house taking pictures, measuring the lot, went into the attic. I spent $400.00 to learn that I gained no value Lol.

[davis449]

I got pushed into home ownership as well back in '08. Got screwed by Obama on the tax break (bought in July '08 during the crash and Obama only offered the "don't have to pay it back" $8K to those who bought in '09). I lived there five years and decided I didn't want to pay the kinda money to fix the myriad of items listed in this thread from various homeowners. Given, I bought at the top of my price range so I didn't have to "mod" the house...but at the end of it all, I just realized I don't care about owning a home and paying astronomical property taxes in Bexar County. Not only that, but I don't want to own a home in another county with lower taxes and drive a min. of 1.5 hrs. to work and back each day (which, for me, requires owning a second "beater" vehicle). I saw the market was up last year and houses in my, then, neighborhood were selling like hotcakes for more than what I paid so I called up a realtor and ditched my "investment". I don't mind renting. Hell, I am downsizing. I am in an 1800 sq. ft. rental house that I HATE. Me and the GF are moving to a 1400 sq. ft. luxury apartment in July. I don't NEED all this crap I own...

[Mr Tonka]

^^No offense intended because people are entitled to create their own standards. But you seem somewhat difficult to please.

You bought a house in '08, (pretty much the worst time to buy a home in the last 20 years) and yet sell it in 2012 for more than you paid. Currently rent a house that you hate. I hope you don't hate anything about your new apartment.

Home ownership isn't for everyone, but it doesn't seem like things went all that bad for you. Check out what that house you sold would sell for in 4 years from now. If things continue as they are and predictions are correct, you probably would have made a small fortune selling that house 4 years from now.

Either way, when buying a home do take the market into consideration. There are times to buy and times to sell. But things tend to work out in the end given enough time.

We had a small starter house that we paid $105k for in 1999. In 2003 we bought 2 acres on a lake. In 2007 that starter house could have sold for $315k and in hindsight we probably should have sold it. (but we didn't have any other place to live at the time) In 2009 we built a house on that 2 acre lot and our starter home was back down to being worth $135k. So we decided to keep it and rent it. Since 2009, that house has generated $75k in rent revenue. Since we had paid triple on the mortgage of the starter house we had it paid off in 2009. While we haven't yet recouped what we would have gained if we sold in 2007, we're well on the way and that asset gives our financial statement more borrowing power to purchase another investment property. To me, this is one of the benefits of homeownership for people who don't pull down half a million or more a year. If you don't then buying a few homes over the years can be a great source of retirement income.

I think that most people's problems with homeownership is that they buy too much home in their first purchase. I think those that are cautious about spending too much on their first homes are the ones that continue to be cautious about becoming house poor on their future homes. Living in a decent home well within your means can become a source of comfort for many. Just my opinion though.

[2011CrazE89]

I did get a great deal on my home. We were renting it for a couple years before we bought it. So I already knew what my neighbors and neighborhood was like. When we closed I already had the keys. When we decided to rent it the homes in that development were ranging between $425-$475K. I knew that we would never be able to afford to buy this house we were renting but we made the best of it and took care of it like it was our own. The neighbors LOVED that us “renters” were taking care of the property. When the market tanked the homes that sold for $450+ ended up short selling and foreclosing. I looked over at my wife and said it’s now or never. The home across the street from us sold for $429K. I have the identical house less a pool and snatched it for $220K. I’m glad we waited!

[rjpeaks]

i just sold our triplex - over ten years of headaches.

glad to not be a landlord no mo.

[PSUSMU]

Townhouse ownership >>>>>
Zero exterior maintenance, only responsible for interior/AC/water heater. $4k/yr taxes for 1350 sq ft w/2-car garage.

Originally Posted by Prowess Symphony

Wow some of you pay more then $10k in property tax?!?! I only pay $300 a year for my 7 acre cabin here in the beautiful West Virginia mountains. No housing codes. Cop-less twisting back roads everywhere. No crime. Most of us leave our houses unlocked and keys in the car. I can't imagine paying that much in tax. I'd never live in or near a city.

Yeah, but you live in WV where more people have disease than not.

[MFL]

Being a landlord isn't for everyone. I grew up working on our families rent houses and it was a PITA.

Rent out a nice house? Some asshole will trash it.
Rent out a crappy house? They're subletting your garage to 20 migrant workers.

If you're going to get renters. Get it in writing that you want to do monthly inspections and include lawn service in the price of rent. Don't even get me started on the Landlord Tenant Act, it might as well be called "The Loopholes for Douchebags Act".

I want land, I want a shop, I want a lift, I want no neighbors and it's going to cost me a lot when the time comes.

[SCHMOUPE]

This is a great thread! As a younger person who bought my first home a year ago at 27, I can definitely say I was made for home ownership. Then again, my brother is a contractor and I do not mind rolling up my sleeves and do tiling, electrical, plumbing... when I get home from my 9-5. Matter of fact we completely gutted out my 108 year old house and completely renovated it ourselves.

Like many that have already stated, I did not buy my house to sell it in a short time frame. I see myself staying here at least 5-10 years and I think that is around the time I would want to have a family and move to suburb on a big lot/pool/...

To OP, time to get some better contractors who won't rape you. I have changed out a water heater in under two hours and that included removal of the old one. An honest contractor should not be charging you more than a few hundred bucks for the labor.

[2011CrazE89]

Originally Posted by SCHMOUPE

This is a great thread! As a younger person who bought my first home a year ago at 27, I can definitely say I was made for home ownership. Then again, my brother is a contractor and I do not mind rolling up my sleeves and do tiling, electrical, plumbing... when I get home from my 9-5. Matter of fact we completely gutted out my 108 year old house and completely renovated it ourselves.

Like many that have already stated, I did not buy my house to sell it in a short time frame. I see myself staying here at least 5-10 years and I think that is around the time I would want to have a family and move to suburb on a big lot/pool/...

To OP, time to get some better contractors who won't rape you. I have changed out a water heater in under two hours and that included removal of the old one. An honest contractor should not be charging you more than a few hundred bucks for the labor.

One of the issues I have is with permitting. I need a permit for EVERYTHING! I needed a permit to replace my front door. Unfortunately I only have the basic knowledge of home repairs. I've replaced a couple faucets and garbage disposals, but I wont touch electrical. Watching the hot water heater getting replaced seemed easy enough. That one I could have probably done myself.

[SCHMOUPE]

Originally Posted by 2011CrazE89

One of the issues I have is with permitting. I need a permit for EVERYTHING! I needed a permit to replace my front door. Unfortunately I only have the basic knowledge of home repairs. I've replaced a couple faucets and garbage disposals, but I wont touch electrical. Watching the hot water heater getting replaced seemed easy enough. That one I could have probably done myself.

permits are a tricky thing. I decided to play by the rules this time around and get permits for most of the work. Towns use permits as means to increase your taxes otherwise why the hell would they care about a front door!? That being said, in most cases, as an owner and occupant of a single family home you are able to take a permit out yourself and perform the work yourself and town should be ok with it. At least that is my experience here in NJ.

Oh and one more thing, plumbing looks a lot easier when someone else is doing it. If you really want to learn, go get some pipes, solder, flux and a torch from home depot and tinker around.

[KingOfJericho]

Where do you live that you need a permit to replace your front door?

[2011CrazE89]

Originally Posted by KingOfJericho

Where do you live that you need a permit to replace your front door?

South Florida. It was to my understanding that if you make any structural repairs you would need a permit. I don't know how a hot water heater and front door is considered structural?

[Lups]

Originally Posted by 2011CrazE89

South Florida. It was to my understanding that if you make any structural repairs you would need a permit. I don't know how a hot water heater and front door is considered structural?

Haha, I had a lovely battle in my hands once for wanting to switch a window to a smaller one. This was in an other country, but still the paper work required was enough to reconsider the need for closet space in the room needing the renovations.

[Mr Tonka]

Originally Posted by 2011CrazE89

South Florida. It was to my understanding that if you make any structural repairs you would need a permit. I don't know how a hot water heater and front door is considered structural?

no.

Based on what i've read in this thread, there is noting that you're going to do yourself that requires a permit.

If you're paying someone to turn a single door into a double door with sidelights, you may be required to get a permit. But if you're just changing your door, no.

[MrPrena]

Either state of CO has extremely low property taxes, or something's off.

$801,000 market value house is paying $4900/yr.
$360,000 market value house is paying $2110/yr
Even 2nd most expensive county like Pitkin has comparable property taxes.

[MrRoboto]

Originally Posted by PSUSMU

Townhouse ownership >>>>>
Zero exterior maintenance, only responsible for interior/AC/water heater. $4k/yr taxes for 1350 sq ft w/2-car garage.

Do you pay a townhouse/condo association fee?

[Never Convicted]

Originally Posted by PSUSMU

Townhouse ownership >>>>>
Zero exterior maintenance, only responsible for interior/AC/water heater. $4k/yr taxes for 1350 sq ft w/2-car garage.

Yeah, but you live in WV where more people have disease than not.

...and more people are related than not.

[PSUSMU]

Originally Posted by MrRoboto

Do you pay a townhouse/condo association fee?

Yes, $350/mo which includes clubhouse/pool, landscaping, trash & snow removal, exterior maintenance, water & sewer, etc. I know this does not go away and only increases, but it's worth having no headaches to me. ~$21k in fees over 5 years, which would otherwise offset having to replace a roof or whatever, but I also get extra services included in the cost.