Housing Advice

[pb4uski]

^^^ Bizarre post.

We have both a SFH and a condo. Definitely tradeoffs, but all things considered I prefer the condo. Funny thing... the politics of our condo association are a cake-walk compared to the "neighbor from hell" for our SFH.

And even with condo fees or all-in cost for the condo is a fraction of our annual costs for the SFH.

 

[smihaila]

^^^ Bizarre post.

We have both a SFH and a condo. Definitely tradeoffs, but all things considered I prefer the condo. Funny thing... the politics of our condo association are a cake-walk compared to the "neighbor from hell" for our SFH.

And even with condo fees or all-in cost for the condo is a fraction of our annual costs for the SFH.

As if you couldn't have a "neighbor from hell" also in a condo. And that "fraction" of "annual costs for the SFH" can add up. Especially with HOAs administered by companies who don't even live in the area and not knowing to much about its particularities, or its people.

Was a point a view - and besides the condo fees (or HOA fees in general), the lifestyle aspect may count even more. Certain folks prefer to have more freedom in terms of what to have inside or outside their house, take the problem of regular maintenance in their hands, and so on. That's what I was referring to, by communism/socialism. Lots of sometimes absurd and tyrannical "rules".

 

[Golden sunsets]

I would probably do neither in your situation, since neither seem ideal for your family. You're ready for an SFD based on family dynamics, so condo is out and the family member's home doesn't seem like much of deal and may be more property than you need. The theoretical discount, and it is only theoretical, isn't being offered at much of a bargain when you factor in the sales commission your family member would have to pay. Of course they'd be delighted to sidestep the marketing period and sell it to you, who would likely not do the thorough inspection buyers would do and insist on the buyer correcting any deficiencies at the owner's cost. You'd be buying as is. I wouldn't take that offer. I think your spouse's preference is being made for sentimental reasons and that is not a good basis for purchasing a property that you plan to live in for an extended period.

 

[pb4uski]

As if you couldn't have a "neighbor from hell" also in a condo. And that "fraction" of "annual costs for the SFH" can add up. Especially with HOAs administered by companies who don't even live in the area and not knowing to much about its particularities, or its people.

Was a point a view - and besides the condo fees (or HOA fees in general), the lifestyle aspect may count even more. Certain folks prefer to have more freedom in terms of what to have inside or outside their house, take the problem of regular maintenance in their hands, and so on. That's what I was referring to, by communism/socialism. Lots of sometimes absurd and tyrannical "rules".

Not sure if you might have misread it... our condo is much less expensive than our SFH.

You've obviously had a bad condo experience. Who knows, maybe it is you and not them.

 

[EastWest Gal]

If the employer does not mind you turning around and selling it, you could make yourself a cool $100K in short order. Then buy the property YOU want, not what a family member wants to unload on you.

I'm concerned that the family member just wants a quick sale, without doing renovations.
Does that mean you will need to do renovations if you buy the property? As always, buyer beware.

 

[Music Lover]

Family member wants to sell their property to us in 1.5 yrs but wants commitment soon or will move forward with renovations to sell on open market. House on 5 acres in rural setting with outbuildings yet close to ammenities that is probably larger than we need but would consider more of our “forever home”. 10 miles from work. Would require the purchase of machinery for snow/mowing($10-$15k). House is easily livable today but would prefer some renovations in coming yrs. Price sounds like it will be $360k-$380k with open market value of $390k-$415k. Significant other really prefers option 2 (family property) and maybe upset that employer would offer such a generous deal.

I'm concerned that the family member just wants a quick sale, without doing renovations.
Does that mean you will need to do renovations if you buy the property? As always, buyer beware.

Actually, I'd prefer to buy a house before someone else does the renovations so I can do it my way. It appears they are being offered the house at a reduced price to take into account the work that has to be done.

That being said, we don't know if the required renovations are mostly cosmetic such as ugly flooring and a dated kitchen, or if foundation or structural work is needed. More information is needed.

 

[ivinsfan]

Actually, I'd prefer to buy a house before someone else does the renovations so I can do it my way. It appears they are being offered the house at a reduced price to take into account the work that has to be done.

That being said, we don't know if the required renovations are mostly cosmetic such as ugly flooring and a dated kitchen, or if foundation or structural work is needed. More information is needed.

And remember that house is a family saying they are going to move "sometime" soon. so maybe they will and maybe they won't move. That's a wildcard.

 

[someguy]

I don't think anyone has mentioned this, but our forever home requirements and wants have changed substantially over the years. Any more, we frame our thinking in terms of "will this last us at least 10 years and ideally 20". Ten or 15 years ago, I think we both would have (incorrectly) asserted that our forever home requirements were and would be stable.

 

[imnontrad]

You have a lot of expenses coming up with the kids and you don't want t be paying so much in mortgage that the house owns you.
Is it possible if you bought the 5 acre property to be able to subdivide and sell half of the land or else build a house on it and then rent out the existing house?
Consider hiring a service at $50/100 a pop for show removal. For the acreage - you can always naturalize a lot and only have a much smaller area in grass. (frees up your spare time too. Or depending on zoning, fence off part and have some sheep/goats in it to eat all the vegetation. Plus you could get chickens for farm fresh eggs. If in good shape, you could also probably rent out the outbuildings to others for storage.
The employer may not know how much the condo is worth. If you bought at that price and then turned around and sold it for 100K more, I'm sure it would strain relations.
But also look at the school systems. Are any of the places in a school system with a good reputation? Saving money on a home and then having to spend money for private schooling will cost more in the long run.

 

[harley]

I'd rent the condo for 6-12 months to make sure you like it, then buy it if you do ON A 15 YEAR FIXED loan. Pass up on the other house, sounds like too much work and too far from jobs.

10 miles is too far from the job? I never had a job that close to home, and most of my commutes weren't considered bad. Personally I'd get a 30 year mortgage, fixed for sure. At this point it's probably the cheapest money you'll ever get. If they stay for 15 years it will feel more like a car payment than a mortgage. As far as too much work, that's a personal choice. We love working on and around our houses. Others like the condo life. That's too much like living in a beehive to me, but everyone has their preferences. But I'd always choose raising kids in a place with room to run, given the option.

 

[mystang52]

Current home: rented from employer, option to buy for a "great deal"

Future home: Family "wants" to sell it to you, on their terms and timeline

How about option 3 - one that you and your wife go out and pick, without any emotional baggage or obligations, or bad feelings if and when something comes up later on?

You're in a great financial position for your age. Go shopping.

OP has apparently decided, after this was posted. But I urge OP to reread this. Buying a house is of course a major financial decision, but it is more than finances. You want a place to live in, raise your kids (remember the comment "no yard" in original post), and where both husband and wife are on board with the decision. I'd also be uncomfortable with an unspoken but elephant-in-the-room obligation to the employer.

 

[frgo0629]

OP has apparently decided, after this was posted. But I urge OP to reread this. Buying a house is of course a major financial decision, but it is more than finances. You want a place to live in, raise your kids (remember the comment "no yard" in original post), and where both husband and wife are on board with the decision. I'd also be uncomfortable with an unspoken but elephant-in-the-room obligation to the employer.

Thanks. We have intentions of sitting down with family member to give them our number. If not agreeable we will just move forward with condo. If family member is agreeable we will tell employer if we purchased condo we’d most likely be turning around and selling in a relatively short time frame. We’d then be happy with whatever employer decided as I do not want to strain what is a good relationship now.

 

[frgo0629]

Thanks for all the input. Ultimately decided to run with the larger family property. Was very difficult for me personally to pass on the potential financial gain of condo but hopefully right choice for the family outside of payment. After being honest with employer, they decided to keep for time being which is fine as I’d rather continue good working relationship.