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A Major Purchase

Posted June 1, 2007 at 2:23PM by cosmoblue

 

We are living in LA. We love it it's great, the weather, the beautiful people, the beaches, the shopping, our friends. What we don't love is the traffic, the smog, the poor schools, the high cost of living. I mean  we are paying over 90% of our income to rent since I am staying home with DD. We're considering a move to Portland, Oregon. We went up for a weekend and loved it. So since DH is graduating I decided to start talking to some real estate agents and mortgage brokers. They all want us to get pre approved, but DH hasn't graduated yet or been offerd a position in Portland so we don't think we should yet. Then they are suggesting interest only loans which sound insane to me but, they keep saying the profits from an interest only loan are so much greater because you can afford more house and therefore more appreciation on the same investment. We have taken homebuying courses and been through the preapproval process a couple of times before, but decided that the time wasn't right. We didn't want to pay $350,000 now homes here are starting at $400,000 and we feel like we've missed out. We don't want to miss out on owning a home in Portland. I don't believe you can truly build wealth without owning a home. I want to do it, but it is a major purchase and I don't want to do it wrong.

 

Tags: Home, Portland, Purchase

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Sticky_Mommy Homepage

  Sticky_Mommy responded June 1, 2007 at 2:45PM

  I love my job, it gives me a break from my kids!

Of course the Realtors want you to buy more house b/c they make more $!

Once DH gets a job then you'll be able to figure out a budget which should include things like mantainance for your home (we just spent over a 1k on a tankless water heater w/install). What you don't want to do is be house poor and never be able to go out to dinner or buy flowers for your new home.

I love the Northwest. Great place for jobs, lifestyle and kids. And the weather is great too!

dustbunny Homepage

  dustbunny responded June 1, 2007 at 3:36PM

  dishing the dirt, cleaning the chaos

I would say move up there- find an apartment/ rental house & get a lay of the land. What if you find an area cheaper just outside or across town or whatever. I'm with sticky- house poor does not outweigh renting. OR, what if you don't like it, you may want to go back to CA OR explore another city or town in Oregon... PLUS all the fees and costs of buying are insane. I'd wait until you know the spot to be...But, either way- it's fun and exciting to start fresh in a new location!

rockergirrl Homepage

  rockergirrl responded June 1, 2007 at 3:47PM

  www.findbarefootbooks.com

I love Portland. When my DH and I left San Francisco we swore if we ever went west again it would be to Portland. OR was the closest thing to VT I have ever seen out there. I do agree with Sticky and dustbunny. Go and rent first until you get your feet wet.

birdiehandmade Homepage

  birdiehandmade responded June 1, 2007 at 10:46PM

  

I agree with the above. Real estate is tricky, and there are lots of hidden costs depending on the property. (Don't forget to add in your homeowner's insurance and property taxes when figuring in your appreciation on your investment. It can take a sizable chunk out of that equity, and it's something you don't pay when you're renting.) I agree that Portland, OR is a great place. And for what you're getting in terms of lifestyle, it's a good value. There are so many distinct neighborhoods there that I totally agree that you should move there and rent for 6 mos or a year to get the lay of the land. The more time you spend house shopping, the better deal you're likely to get - in an area that you'll love. Plus, you'll have an idea of the cost of living there, your DH's salary, and what you can really afford. Don't listen to the realtors - they want you to go big. They don't care if you've spent all your money on your new house and can't afford to enjoy the city you've just moved to. Being house poor really does suck! Anyway, there's my 2 cents. Good luck!

 

 

 

 

 

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