As most of you know by now, I live in an apartment-style condo, which I really have started to dislike for a number of reasons. Lately, I have been thinking that I would really love to buy a cute little house on a nice, quiet street. Then I sit here and wonder, "Am I crazy for wanting a house? Everybody always says that houses cost a lot of money to upkeep, etc. etc. Would I be getting in over my head if I do buy a house?" I would not be able to buy a house right now, due to my current financial situation, and with the real estate market being so bad.

I'm not college educated, and would have to take some classes in order to get my skills up to speed a little more. Even if I do that, with the economy here being so bad, I don't even know if I could get a decent paying job where I could afford to buy a house. I would also have to sell this condo, which would not go for very much money, since it is a tiny, one bedroom, one bath, 800 square foot place (too small for me!) Also, the condos here don't seem to sell very fast, probably because they are apartment style, the maintenance fees are kind of high, and the property taxes are jacked up. I pay about $1,500 a year in property taxes for a shared "backyard" that is not really mine, and is shared by anyone and everyone who lives in this condo development.

When I bought this place 19 years ago, I was much younger, and I was not even thinking about buying a house. But now that I'm older (in my 40's), having an actual house would be like a dream come true for me. I would have my own backyard, my own washer and dryer, my own garage (all things that I don't have right now). Also, I could get away from the woman downstairs, who I don't get along with (she's a stuck-up bitch), and who is always making noise and waking me up. I also see buying a house as a much needed step up for myself, since I don't want to be living in an apartment style condo for the rest of my life. But I still worry about being able to afford it financially.

Everybody always tells me, "Your condo is paid for, how many people your age can be in that position?" True, it's paid for, but if it's not where I want to live for the rest of my life, that doesn't mean diddly squat to me, at this point. Guess all's I can do is take more classes, save up a ton of money, and hopefully, when I am ready to move, the job market and the real estate market will be recovered enough so that I can do this! I really want a house sooooo bad right now.

So, am I crazy for having this dream of one day owning a house?? I know some of you are homeowners here on the org. Is it rough for you financially, do you spend a lot of money of home repairs/upgrades? That's the one thing I worry about, paying for the maintenance of a home. Guess I would need to buy a newer house, or one that has had a lot of upgrades done to it.

Your feedback would be most appreciated.

If you can sell your condo, i say go for it!!!! I know in California nothing is selling

good luck hun!!

do you have to pay monthly dues?

babooshleeky said:

Thanks! I won't be selling right at this very moment, but I'm definitely thinking about it.

horatio said:

Monthly dues? What do you mean by that? I don't have a mortgage, but I do have to pay a monthly maintenance fee, plus all of my other utilities, groceries, gas, etc. etc.

I say sell the condo because you are not happy or satisfied there. Look into the repo market, and foreclosures, I know it's like benefitting from someone elses misfortune but it is a good time to buy. As far as maintenance costs, there is maintence insurance that you can get, we don't have it because my hubby can fix most anything when he's home that is but for a minimal rate you can have people come out and work on major appliances and other big stuff. My neighbor has it and her washer broke and the plan paid for itself because of the amount of money she saved.

t to x edit
[Edited 6/30/08 7:25am]

psychodelicide said:

dues/maintenance same thing

that maintenance insurance like all insurance hassle you and try to get out of paying.

I used to think housing was an investment. But now I believe it is nothing more than shelter.

So, live where you're happy. Housing prices are at historic lows in many places, so you can probably buy more house for the same amount of money - which is nice.

As long as u don't overpay, buy the house.
U will better off in the long run on many levels.

I hate to sound life the voice of doom but, many a times I have seen you post about not having a steady job. It sounds risky to me to leave a no mortgage life, to start paying a mortgage, plus even highter property taxes each year.

A house is a big responsibility. But it's also nice to have your own space. Our house was newer and we didn't have any problems that we needed to fix. The only thing we had to do was replace a hot water heater and that was about $600.

The majority of the money we put into the house was for improvements. New carpet. New hardwood floors.

Yes, those things are expensive. Nice new carpet just for our family room was $1000 and the hardwood floors in our foyer were that as well.

I think it is a big expense, but that's just the way it is. Always been like that and always will be.

butterfli25 said:

Thanks for the suggestion about getting maintenance insurance, I never even knew that it existed. It's nice that your hubby is good at fixing things. My dad is the same way, in fact, anytime anything needs fixing here, I call him. But my dad will not be around forever, so I probably would need maintenance insurance.

psychodelicide said:

When we bought our house the seller included a home warranty. Don't know if that's what you're talking about but it covers major stuff and only costs about $400-$500 a year. There is a deductible. There are different plans so you can choose the one that suits you best.

horatio said:

Not sure what you mean by that. Another drawback to having a condo is that they can assess you, for whatever amount of money they want, to pay for any upgrades that need to be done. This has happened to me on more than one occasion, since there was not enough money in the reserve to pay for it. This assessment fee is IN ADDITION to my monthly maintenance fee.

RodeoSchro said:

Graycap23 said:

I think so too.

hokie said:

from my experience that home owners warranty is total BS.

PaisleyPark5083 said:

You have a good memory! You are right, these past couple of years have been hard for me, as far as being able to hold onto a job. The last couple of jobs I've had have resulted in layoffs due to the company cutting back or lack of work (no fault of my own). But rest assured, I am not going to run out and do this today, tomorrow, or even next month. I need to get a steady, good paying job (as I mentioned above), and just save a TON of money. I won't be moving out of here for a long time yet, but I'm trying to plan for my future.

hokie said:

It is expensive, but it is worth it. Home improvements can actually add some value to the house's selling price.

horatio said:

Really? We never had to use ours...


You had a bad experience?

hokie said:

Yes, a home warranty is probably what I'm thinking of. It's nice that they have different plans to choose from.

hokie said:

It sounds like horatio did have something happen to him. I'm kinda curious as to what happened.

psychodelicide said:

the key is to not overpay.

realtors will try to tell you that housing prices have not gone down that much.

the best deals are in foreclosures, as long as they are not in crappy neighborhoods. And new construction. I have been considering new construction, even though most new homes a I loath, but there are some that can retain some character, and you can get them down 200,000 off of a listed 500,000 home.
Im also looking into buying land and having a Mies, Farnsworth type home built. An architect I am working will is saying we should be able to achieve it for the around the 300,000 mark.

psychodelicide said:

Sounds like a great plan to save first, give your-self a nice cushion in case of any emergency of one's fault or not. I wish you the best my friend!

horatio said:

I have noticed that realtors (and banks too, for that matter), try to get you to buy a house that may be a bit out of your price range. That seems to be a common occurrence. Foreclosures are very good deals. I would love to be able to actually build a house, but that's not happening in my world.

PaisleyPark5083 said:

Thanks!! I definitely am not rushing into it, since buying a house is a HUGE expense.

hokie said:

the sellers say they give it to you in your closing, but really you pay for it.

both houses had something leaking with the bathtub drain. And both houses got a clogged kitchen sink.
they didnt cover any of it.
plus if you pay for the warranty yearly, then you just spent the money you could have used to pay to fix what ever the problem is. sudden expenses typically run around a few hundred dollars. The HSA warranty isnt going to cover a new roof or major things like that. it basically covers, say you water heater goes out or your dishwashers heating coil goes out. Its a con like those warranties they sell at Best Buy. Insurance is the only way to cover major things.
And putting money back away to cover minor things (in the 1000.00 or less range)

Putting money away for yearly maintenence period.
Seasonal things like pest control.
Cleaning the gutters.
Lawn care, tree removal, removing leaves in the fall.
If you have an older home, one without vinyl siding, you have to maintain the paint around the doors and windows. You may have to have the windows reglazed.
Sidewalks driveways to shovel in snowy areas.
Sidewalk/drives crack shift and fall apart in extreme cold and heat.
And you cant put things off or things will get out of control stacking on top of each other.
this is just a small list, and you haven't even begun to think about the inside.

horatio said:

Yeah. I agree for the most part that "warranties" you buy are a waste of money. Like I said, we never used it. We always had an emergency savings fund. If we had to pay for something we took it out of there.

Yes. There are lots of things you have to keep up with a house. It seems like the list is neverending. And once you think you've taken care of things something else pops up.

horatio said:

I'm glad you told me about how the home owner's warranty works, I had no idea. It sux that the warranty did not cover the plumbing issues that you experienced.

hokie said:

Having an emergency savings fund is a very wise idea. You're right, the list of things to do/fix around the house is never ending. :lol; That's what everybody always tells me.