Now that I've established that I'm looking to buy a house, let me tell you all about my first foray into the market.
First of all: as soon as I knew I'd be moving back to Portland, I applied with my credit union to be approved for a mortgage. Then I did some emailing with a friend and he recommended his mortgage lender so I also applied with that bank. In both cases I was approved for up to 250k. So, yay.
Of course personal finance 101 tells us not to max ourselves out on housing costs, and I don't intend to borrow that much, but it at least gives me a framework. No surprise: my frame is the very bottom of the real estate market in Portland.
I did start poking at the market a little bit: I loaded the redfin and realtor.com apps on my ipod touch and started doing searches... all the time. As I feared, my price constraints limit me to a ring well outside the close-in parts of Portland, but one of the approachable areas is near houses owned by three different friends, so that's kind of awesome.
The real estate searches I've been running are helpful, even if they make me feel silly. Last Wednesday I saw a listing that really made me sit up and take notice. It was an adorable beautifully-finished house just over a half-mile from my friends' houses. The location was otherwise crappy - extremely close to the highway and a freight train line. However it was just so amazingly cute I couldn't stop looking at it.
Long agonizing story short, I used miles to book a flight to Portland and arranged to see four houses with a randomly-chosen agent. I liked the agent quite well. One of the houses was a nightmare pit that is going to be on the market a LONG time; one had a fussy yard and an icky inside; one had good bones but was going to be a pretty big project. The fourth house, the cute one, was every bit as amazing as I thought.
My agent said they were reviewing offers that night (after a whopping 3 days on the market) and that it didn't hurt anything to offer if I wanted to. It costs nothing and takes ten minutes. She said if I thought I'd regret not making an offer, then I might want to do it. She also said it was going to go higher than the list price.
So after futzing with a calculator a bit, I decided to make an offer for 10k more than the list, with a 10% down payment. We offered 45 days to close and free week to get out of the house after that. The agent and I parted ways, and I went to my friend's house to sit by my emailbox.
About 15 minutes later an email came in; the link in it took me to an electronic version of the offer letter. I had to click to initial 11 times and that was it! (Yes, I did skim it before sending it in.) By 3pm I'd made an offer; by 9:40pm I knew I was their second choice, and by 8:30am I knew I didn't get the house. The winner(s?) had a bigger down payment and had offered the same price as I had, so it's nice to know my guess was decent.
It was disappointing but I'm mostly glad. I've decided it was an A+ house in a D+ location. I think I'll shoot for a B location and a B house and hope I can make that work. But I should probably stop monitoring the real estate sites because I can't fly up for another weekend jaunt! I can do this in earnest starting in five weeks.
Tuesday, August 28, 2012
Monday, August 27, 2012
House hunting: why I am considering buying
I'm starting what may become a saga of house hunting, so I thought I'd begin by stating why I'm pretty sure I want to get into the market. I may need this for moral support in the future!
Financial picture:
I'm moving back to Portland in about a month. Since I left six years ago I've paid off all my debt (car + credit + moving + grad school all came to approximately 25k; it was never at scary levels but it certainly took a long time to become and stay fully debt-free), have continued saving aggressively-ish for retirement (18% + 4% match, fully vested now that I've passed my six-year anniversary), and have started saving for a house down payment. I've also managed to do quite a bit of travel and a lot of local exploring as well. In short, life's been good.
Why I didn't buy already:
When I lived in Portland before I didn't think I could afford to buy. With retrospect...maybe I could have, if I'd gotten in before things got crazy. But my head wasn't there and it's just as well I didn't buy, given how my life has been more mobile than I expected!
I've known that as long as I was in the Bay Area, I wasn't interested in buying: anything I can afford would be in a pretty rough neighborhood, would be pretty icky, or would be very far from work. All that and it would cost a lot more than my apartment! The final factor was that I never had any intention of staying in California permanently. So that's been a non-starter (though I have looked, and despaired, occasionally).
Buying for retirement stability:
A few years ago I had a conversation with a friend that was pretty illuminating. She was looking at her retirement plans a few years down the road and was despairing. As long as she keeps working she can live a great life, but once she retires, she can't afford anything like her current life. Her rent alone will take most of her social security check, she doesn't have a pension, and I inferred that her retirement savings aren't that robust. So that was certainly food for thought. If I didn't have to pay rent, my retirement might be smoother.
On the flip side, property taxes and maintenance are no joke. It's impossible to know if the monthly outlay post-mortgage would be equivalent to or even more than rent would be. There's also the responsibility involved in owning a home. That tilts me toward a condo, but then you run into HOAs and the possibility of special assessments in the future if problems crop up. So in short, it's certainly not a given to me that buying is the right and only choice.
What I'm looking for:
I had my eye on a particular condo development for a long time, but their HOAs and taxes are so high - nearly $800/month!! - that the sales price is going to have to come down a lot before I can be tempted into it. Honestly I think they're going to go into foreclosure soon for the 40% unsold units, and then they'll likely be cash sales, and therefore not for me. That's all a guess though.
At any rate, I definitely want 2 bedrooms. I would prefer low- to no-maintenance requirements for the yard. I very much want to be near friends and would also like to be near a neighborhood center: library branch, coffee shop, perhaps a small grocery store. I want my mortgage/interest/taxes/insurance to be about what I'm paying for rent now, since I know that leaves me breathing room. I want the place to be move-in ready - I do NOT want to have to manage and finance projects in the first few years of ownership. Finally, I view this as a potentially lifelong commitment - it's not an investment but a home.
Why I may not be ready:
I do have concerns about being the responsible party if anything goes wrong. I have currently saved enough to cover a 10% down payment and closing costs, if I pillage my savings accounts. My parents have offered to lend me some money, which is great, but I wonder if I should buy if I need to borrow to make it happen. At this point I'm thinking I will try hard to buy without assistance, and will keep their offer in my back pocket in case something goes awry before I've rebuilt my savings. And of course being the lone earner is scary. I'd want to keep the mortgage low enough that I could recoup it in rent if I lost my job or took a big pay cut at some point. But life just keeps happening, and if I'm going to retire with a paid-off mortgage, I've got to get started.
Financial picture:
I'm moving back to Portland in about a month. Since I left six years ago I've paid off all my debt (car + credit + moving + grad school all came to approximately 25k; it was never at scary levels but it certainly took a long time to become and stay fully debt-free), have continued saving aggressively-ish for retirement (18% + 4% match, fully vested now that I've passed my six-year anniversary), and have started saving for a house down payment. I've also managed to do quite a bit of travel and a lot of local exploring as well. In short, life's been good.
Why I didn't buy already:
When I lived in Portland before I didn't think I could afford to buy. With retrospect...maybe I could have, if I'd gotten in before things got crazy. But my head wasn't there and it's just as well I didn't buy, given how my life has been more mobile than I expected!
I've known that as long as I was in the Bay Area, I wasn't interested in buying: anything I can afford would be in a pretty rough neighborhood, would be pretty icky, or would be very far from work. All that and it would cost a lot more than my apartment! The final factor was that I never had any intention of staying in California permanently. So that's been a non-starter (though I have looked, and despaired, occasionally).
Buying for retirement stability:
A few years ago I had a conversation with a friend that was pretty illuminating. She was looking at her retirement plans a few years down the road and was despairing. As long as she keeps working she can live a great life, but once she retires, she can't afford anything like her current life. Her rent alone will take most of her social security check, she doesn't have a pension, and I inferred that her retirement savings aren't that robust. So that was certainly food for thought. If I didn't have to pay rent, my retirement might be smoother.
On the flip side, property taxes and maintenance are no joke. It's impossible to know if the monthly outlay post-mortgage would be equivalent to or even more than rent would be. There's also the responsibility involved in owning a home. That tilts me toward a condo, but then you run into HOAs and the possibility of special assessments in the future if problems crop up. So in short, it's certainly not a given to me that buying is the right and only choice.
What I'm looking for:
I had my eye on a particular condo development for a long time, but their HOAs and taxes are so high - nearly $800/month!! - that the sales price is going to have to come down a lot before I can be tempted into it. Honestly I think they're going to go into foreclosure soon for the 40% unsold units, and then they'll likely be cash sales, and therefore not for me. That's all a guess though.
At any rate, I definitely want 2 bedrooms. I would prefer low- to no-maintenance requirements for the yard. I very much want to be near friends and would also like to be near a neighborhood center: library branch, coffee shop, perhaps a small grocery store. I want my mortgage/interest/taxes/insurance to be about what I'm paying for rent now, since I know that leaves me breathing room. I want the place to be move-in ready - I do NOT want to have to manage and finance projects in the first few years of ownership. Finally, I view this as a potentially lifelong commitment - it's not an investment but a home.
Why I may not be ready:
I do have concerns about being the responsible party if anything goes wrong. I have currently saved enough to cover a 10% down payment and closing costs, if I pillage my savings accounts. My parents have offered to lend me some money, which is great, but I wonder if I should buy if I need to borrow to make it happen. At this point I'm thinking I will try hard to buy without assistance, and will keep their offer in my back pocket in case something goes awry before I've rebuilt my savings. And of course being the lone earner is scary. I'd want to keep the mortgage low enough that I could recoup it in rent if I lost my job or took a big pay cut at some point. But life just keeps happening, and if I'm going to retire with a paid-off mortgage, I've got to get started.
Tuesday, August 14, 2012
Calendar: August
Last year I visited a good friend in LA - and it's a good thing, too, since he's now moved on to Tucson. Hey, just one more place to visit!
Anyway, we visited Venice Beach and while we watched the skateboarders, I practiced using the burst mode on my camera. Confession: no clue if it's called that. But you know, you set it a certain way and it takes multiple shots. And it did, and I caught this kid in flight.
Anyway, we visited Venice Beach and while we watched the skateboarders, I practiced using the burst mode on my camera. Confession: no clue if it's called that. But you know, you set it a certain way and it takes multiple shots. And it did, and I caught this kid in flight.
Monday, July 30, 2012
All manner of lists
So in my last post I mentioned that life and career stuff had been sucking up my brain - well, let your sleepless nights of pondering my life come to a middle. I'm moving back to Portland, but I'm going to keep working for my current employer. My new job is a little vague, and we don't know who will take over my current one, and it's all a little bit crazy-making to a big-time Decider like me. (In Myers-Briggs speak, I'm hugely weighted on the Judging end of the Judging/Perceiving scale.)
At one level, this has been in the works for six years, ever since I left Portland. It's been my favorite place since I first visited in 1995, and I felt proud and happy to live there for ten years. Leaving was totally unexpected but I decided it was the right move for me at the time (and still feel that it was a good move). I always hoped to return and was careful to keep a lot of roots alive there, visiting at least once a year to participate in traditions such as a cookie party, participating in annual book group planning meetings and enjoying brunches and other celebrations.
Last year when my friend's husband died so suddenly I felt ready to quit my job and couch surf up there until I found something else.. fortunately my siblings talked me out of that particular flavor of madness. This spring when a job came open in my company that could be worked remotely, I applied for it, explaining a pending move as one of the factors for my application. Well, I didn't get the job, but the VP took as a fact that I was moving away and said they'd work something out for me; lo and behold they created a position and stuck my name on it.
So, I don't know exactly what I'll do or when it will start; I'll rent from a friend until I decide what type of real estate I want to get into (house that is stumbling distance from a few friends would be great; a condo might be a more realistic selection given how much I do NOT care for home maintenance projects). Right now I feel some low-level stress at all times but I'm trying not to let it get to me. Wish me every manner of luck!
At one level, this has been in the works for six years, ever since I left Portland. It's been my favorite place since I first visited in 1995, and I felt proud and happy to live there for ten years. Leaving was totally unexpected but I decided it was the right move for me at the time (and still feel that it was a good move). I always hoped to return and was careful to keep a lot of roots alive there, visiting at least once a year to participate in traditions such as a cookie party, participating in annual book group planning meetings and enjoying brunches and other celebrations.
Last year when my friend's husband died so suddenly I felt ready to quit my job and couch surf up there until I found something else.. fortunately my siblings talked me out of that particular flavor of madness. This spring when a job came open in my company that could be worked remotely, I applied for it, explaining a pending move as one of the factors for my application. Well, I didn't get the job, but the VP took as a fact that I was moving away and said they'd work something out for me; lo and behold they created a position and stuck my name on it.
So, I don't know exactly what I'll do or when it will start; I'll rent from a friend until I decide what type of real estate I want to get into (house that is stumbling distance from a few friends would be great; a condo might be a more realistic selection given how much I do NOT care for home maintenance projects). Right now I feel some low-level stress at all times but I'm trying not to let it get to me. Wish me every manner of luck!
Friday, July 6, 2012
Vacation brain again
I've been super occupied with work and career and life stuff, but guess what? Vacation awaits! In a few short days I'm heading back to Germany - this time to see my sister receive her master's degree, and to spend some time touring with my parents (and sister, part of the time).
I'm revisiting my packing list from the spring - it will be warmer, but it doesn't look like it's going to be hot, so I think I'm going to pack:
- 2 pairs pants: jeans and khakis (both can turn into capris if necessary)
- 1 skirt (will work for the graduation event and if it gets hot on the trip)
- 2 pairs shoes: probably some version of walking shoes and some summery sort-of sandals
- weather protection: a rain jacket and scarf/wrappy thing; 1 lightweight long-sleeve sweater (blue); 1 lightweight 3/4-sleeve cardigan (black)
- 5 tops: 2 short-sleeve tops; 2 3/4-sleeve tops; 1 dressy tank top. (I bet I'll crack and add something here)
for both parts of the trip:
- pajamas: t-shirt & shorts
- miscellaneous toiletries, socks, etc.
- camera; ipod touch; cell phone (to be stored away until I return to the states); chargers & a plug adapter; guidebook; passport; perhaps a knitting project.
On this trip I won't be using a rail pass, since with three of us it's more sensible to rent a car. Since I'll be driving I won't have so many knitting opportunities, but it's a great thing to have on a flight. Even though I'll be traveling in business and first class (thanks to miles and my clever booking-savvy friend!!), it's a long long time to stay awake and occupied. I can't sleep for all of it (and don't want to miss out on the fun of the high-class travel) so knitting is a good thing to have on hand. Perhaps I'll make another set of socks to complement the ones I did for much of my last trip:
I'll have something like 22 hours in London, then 12 nights in Germany before returning. I'll be able to do laundry once in the middle of the trip, so I think that will work. I may panic and add something to the pile - we'll see!
I'm revisiting my packing list from the spring - it will be warmer, but it doesn't look like it's going to be hot, so I think I'm going to pack:
- 2 pairs pants: jeans and khakis (both can turn into capris if necessary)
- 1 skirt (will work for the graduation event and if it gets hot on the trip)
- 2 pairs shoes: probably some version of walking shoes and some summery sort-of sandals
- weather protection: a rain jacket and scarf/wrappy thing; 1 lightweight long-sleeve sweater (blue); 1 lightweight 3/4-sleeve cardigan (black)
- 5 tops: 2 short-sleeve tops; 2 3/4-sleeve tops; 1 dressy tank top. (I bet I'll crack and add something here)
for both parts of the trip:
- pajamas: t-shirt & shorts
- miscellaneous toiletries, socks, etc.
- camera; ipod touch; cell phone (to be stored away until I return to the states); chargers & a plug adapter; guidebook; passport; perhaps a knitting project.
On this trip I won't be using a rail pass, since with three of us it's more sensible to rent a car. Since I'll be driving I won't have so many knitting opportunities, but it's a great thing to have on a flight. Even though I'll be traveling in business and first class (thanks to miles and my clever booking-savvy friend!!), it's a long long time to stay awake and occupied. I can't sleep for all of it (and don't want to miss out on the fun of the high-class travel) so knitting is a good thing to have on hand. Perhaps I'll make another set of socks to complement the ones I did for much of my last trip:
I'll have something like 22 hours in London, then 12 nights in Germany before returning. I'll be able to do laundry once in the middle of the trip, so I think that will work. I may panic and add something to the pile - we'll see!
Wednesday, July 4, 2012
Calendar: July
This month's picture is another from my trip to Honduras last May (more than a year ago already!).
I've already forgotten most of the feeling from that vacation - I know with my head I walked barefoot on the beach wearing a summery dress, but it's hard to really recapture that!
It was my first full-on tropical resort vacation, and it was amazing. I intend to spend time visiting Hawaii over the next few years, and can't wait to get back into that warm sun/swimming and snorkeling and diving/fruity drinks space.
It was my first full-on tropical resort vacation, and it was amazing. I intend to spend time visiting Hawaii over the next few years, and can't wait to get back into that warm sun/swimming and snorkeling and diving/fruity drinks space.
Wednesday, June 20, 2012
Calendar:June
Sorry for the radio silence. I know it's the way in blog land. I've had a LOT going on behind the scenes with a large possibility of major life uprooting (in a good way, but it's scary too) so my brain has been churning but I haven't been sharing. I hope everything's settled in a few more weeks.
If not, well, I'm off to Germany again for a chunk of time in the middle of July, so I'll be sure to drink plenty of beer!
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