House Hunting is for the Birds

in life •  6 months ago

Alright Steemit Fam... I'm currently in the exciting process of house hunting! Yay us! Right!? Riiighhhhht!?

Well... not so much.

The beautiful house you see above is on our short list. It's got a large enough yard for Apollo, an awesome floor plan, a basement with 9 ft ceilings (how amazing is that!?) and an owners suite to die for.

We've been preapproved. We've spoken with our realtor. We've seen the house. I've done the math- we can definitely afford it on a monthly basis without issue.

Here's the rub... closing costs.

Can someone... for the love of God, please explain to me why I have to pay an origination fee to a bank that I'm going to be paying interest to for the next 15 years!?

Seriously... my estimated closing costs for this crib is NEARLY $13,000 DOLLARS! What in the actual hell!?

Investopedia tells me,

However, because a lender cannot and should not be expected to work for free, receiving a reduced origination fee usually involves conceding something else to the lender.

Work for free!? They aren't working for free... that's what interest is for (literally defined, also by Investopedia, as a charge for the privilege of borrowing money)!

So here I sit... strongly reconsidering my original declination of resigning my lease for my tiny apartment.

Ugh.



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$13,000 DOLLARS

Beautiful home @kbarrett...

It's ALL perspective.

Look at the house. Look at the fact that God has preset the price at which you can comfortably afford this beauty. See the closing fee as a question to ponder:

Would I buy this house if it was valued a 'mere' $13K more?

Also, should I decide to sell:

Is this an area where the valuation on the property is 'guaranteed' to increase?

Lastly, if you can say yes to the two questions without wavering, then ask yourself this:

Do you really want to dump money into a zero-rate of return on a "TINY" something, that you will NEVER, EVER own? ;+)

I hope this helps calm your thoughts.

It's all perspective. The decision has to come from within. Only you, et al have the final answers that matter most. Don't overthink yourself into missing a great buy. Only you know if it is or not. Walk away or continue leasing...Only you can make this decision.

Peace.

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Thanks for this... what you said definitely makes sense and helped calm my nerves a bit. I just hate the idea that I have to pay someone a lump sum fee, when I'm going to turn around and pay them a ton of money in interest over the life of the loan. I guess that's just how things work though :/

Thanks again! :)

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:/

Are you SERIOUS??? (lol) If $13K is all that stands between you and INVESTING in something that will net you that profit and more over time, via equity, I say, shhhhhhhhhhhh....quieten your thoughts.....If this house is yours, GIVE THANKS, and ponder how you're going to personalize it.

Btw, oddly, I've been thinking how over the years, should you decide to keep this house long term, it seems to have the design for a 'simple' remodel to make it a tri-plex. You could live in the center part, and create an Airbnb over-nighter with the sides. This is a property that with a little remodeling, could pay for itself.

Best regards!

Peace.

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haha that would be an awesome idea! This is, however, in a neighborhood with an HOA. Nooooo waaaaay would they allow that lol

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allow

Oh, the dreaded HOA...smh...

Instantly, I'm rethinking EVERYTHING I said in the previous posts...literally LOL!!!!

i.e: What do you mean I can't plant pink flowers in the fall? (lol)...smh!

Are you sure this isn't why this beauty is for sale? I'd research the HOA's history in the neighborhood, BEFORE signing.

Btw, on that remodel, I'd like to think if you did zero changes to the exterior design, they might consider the Airbnb proposal.

Best regards,

Peace.

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haha I'm not entirely sure how strict they're going to be, but where I live, it's more uncommon for a house to not have an HOA, that's just the lay of the land around here.

It's also funny that you mentioned AirBnB. Our entire city was just having the argument as to whether to allow it at all. Luckily, (as of yesterday) the decision was made that people are in fact allowed to rent out their homes for AirBnB type business, though you do have to pay for a permit that allows the variance.

It became an issue because there are no provisions to allow short-term rentals in areas zoned for single-family homes within the city.

But yeah, long story short... I'd say 90% of the homes we've looked at have had an HOA :/

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AirBnB. Our entire city was just having the argument as to whether to allow it at all…an issue because there are no provisions to allow short-term rentals in areas zoned for single-family homes

This is one of those causes, for which I support regulations. Unfortunately, everyone isn’t as responsible as the next regarding the vetting process; leaser & leasee.

I know a lot of people who think this mode of overnight stays is far better than hotels. Personally, I can’t imagine it; but, it is a booming industry.

90% of the homes we've looked at have had an HOA :/

Well, that speaks volumes…I suppose those who complain are the reasons HOAs are a necessary means of keeping the property valuations up.

Best regards @kbarrett!

Prayers that you, et al, are closer to making that bottom-line decision.

It’s a beautiful home; and, I’m sure you will make the best choice!

Peace.

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Thanks! :)

Nice house, thanks for posting this.

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Thanks!