I am terrified of getting a mortgage

[carnivalday]

How much traffic are you getting to your condo? Are you getting showings? You didnt mention anything about that. You state "the price is right"...but is it right, or is it what you want for it? I read a lot of real estate forums, and people who cant sell their homes state that the price is right, but theres no traffic and it sits on the market. Theres always a price that a home/condo will sell for. If you priced it at $25,000, it would sell, right? Im not saying to do that, but there is a price somewhere between that and your price that it will sell at. You just have to decide what is more important to you, waiting on the price you think you have to have, or pricing it to where you can move on with your life. What price is peace and quiet worth?

[Karloff]

Quote:

Originally Posted by ShokWaveRider No wonder you cannot sell it based on your OP. I was wondering if it is in a desirable part of SWF? Seems like trying to sell a place round here that has a history of flooding, even if only 1" and only once. They are worse than boat anchors here, buyers are getting smarter.

This is in SE FL, in the Hollywood / Hallandale Beach / Sunny Isles Beach area.

[Karloff]

Quote:

Originally Posted by Tiger8693 I think it's a matter of location. My best friend from HS/College just bought a condo in St Pete at pre-construction ~$1MM (1600 sq ft). Looking at it online now, selling at 40% above that less than 1 year later. Location, Location, Location....

We love St. Pete! We travel there often and the Dali Museum is a mandatory stop, as are all the bookstores and record stores. I would not mind retiring there one day, but it is way overpriced now. Yes, I saw the million dollar condos, too. I have no idea who is buying them. We went through something similar here and look at where we are now...

As for our condo, the area could not be more desirable... The problem is the building itself.

[ugeauxgirl]

Quote:

Originally Posted by Tiger8693 I agree with those proposing small mortgage. It's a cash flow question really, and the low interest rates just make it a smaller impact on cash flow. Oh, and drop the price and get out! You are "paying a mortgage" now with that monthly fee.

I agree with this. The condo situation scares me. You could be in a home you love, and reduce your risk in the scary condo situation for $150 less every month. I dislike debt too. Just pay it off early with that $150/month you'll be saving on the HOA fees.

[Rustic23]

Debt is just another bill that has to be paid! Yea too much is scary, but you are no where near that level. Isn't you condo fee debt? well not actually but just like it, along with special assessments and such. You appear to have the money in the bank to pay it off anytime you want. On a 15 year note, you will pay about $1,200 a month, and about $200,000 for a $150,000 loan. So you new home all in would cost you $200,000 in retirement savings. Pay in full today $150,000. If having debt cause you to loose sleep, pay in full, and replace the money over time.

[Karloff]

Quote:

Originally Posted by carnivalday How much traffic are you getting to your condo? Are you getting showings? You didnt mention anything about that. You state "the price is right"...but is it right, or is it what you want for it? I read a lot of real estate forums, and people who cant sell their homes state that the price is right, but theres no traffic and it sits on the market. Theres always a price that a home/condo will sell for. If you priced it at $25,000, it would sell, right? Im not saying to do that, but there is a price somewhere between that and your price that it will sell at. You just have to decide what is more important to you, waiting on the price you think you have to have, or pricing it to where you can move on with your life. What price is peace and quiet worth?

I do see the logic in the above. In this case, what I meant to say is that the price was "right' based on recent sales for units that are identical to ours, and the average sale price in the rest of the building. Our unit is not the norm in the building because it is a corner unit (more or less like a small home, really, with oversized rooms). Most units are about 400 sq/f smaller. The unit above us (identical floorplan) sold for $399K a couple of years ago, but without impact windows. Ours has impact windows (this adds +/- $25K). The unit next to ours (identical floorplan, no impact windows, no updates at all) sold for almost $500K about 10 years ago. A unit like ours but immediately facing the ocean and with NO updates nor impact windows just sold for $520K 3 months ago. Units in the building next door are going for $200K more, on average. And our unit was appraised at $460K, etc, etc. We even pay taxes on an appraised value of $408K! I fight this with the county every year, but there is no way of making them see reason. So we feel that our asking price of $385K is "right". But, you are absolutely correct: the market determines what's "right'. And things have gone downhill quickly because the building has gone through multiple managers in one year, depleted reserves, and is getting a bad name in the area (it is well deserved, sadly, and it is not alone...).

And, no, sadly, we only got *one* offer in 1 year... It is low. We are now seriously considering just going with it but have not made a final decision.

[ShokWaveRider]

Quote:

Originally Posted by Karloff This is in SE FL, in the Hollywood / Hallandale Beach / Sunny Isles Beach area.

Thanks, I obviously misread your OP regarding location, folks always talk about SWFL, it becomes a habit.

Condo Building issues are rampant here also, probably due to the fact most are quite/very old, some mismanaged, most with a lot of rentals.

I would be quite skeptical buying a condo anywhere in Florida Coastal areas if the buildings are old or in flood zones other than "X" or "X Shaded". lower flood zones can play havoc with foundations.

Almost better getting a SFH, $650 a month buys you a lot of maintenance, and YOU are in full control.

[Tiger8693]

Quote:

Originally Posted by Karloff This is in SE FL, in the Hollywood / Hallandale Beach / Sunny Isles Beach area.

No offense, but those areas are nothing like St Pete, thus driving the price point diff.

[Karloff]

Quote:

Originally Posted by Tiger8693 No offense, but those areas are nothing like St Pete, thus driving the price point diff.

As I said above, I LOVE St. Pete! But it is apples and oranges, really. Depends on one's priorities.

[ivinsfan]

Quote:

Originally Posted by Karloff I do see the logic in the above. In this case, what I meant to say is that the price was "right' based on recent sales for units that are identical to ours, and the average sale price in the rest of the building. Our unit is not the norm in the building because it is a corner unit (more or less like a small home, really, with oversized rooms). Most units are about 400 sq/f smaller. The unit above us (identical floorplan) sold for $399K a couple of years ago, but without impact windows. Ours has impact windows (this adds +/- $25K). The unit next to ours (identical floorplan, no impact windows, no updates at all) sold for almost $500K about 10 years ago. A unit like ours but immediately facing the ocean and with NO updates nor impact windows just sold for $520K 3 months ago. Units in the building next door are going for $200K more, on average. And our unit was appraised at $460K, etc, etc. We even pay taxes on an appraised value of $408K! I fight this with the county every year, but there is no way of making them see reason. So we feel that our asking price of $385K is "right". But, you are absolutely correct: the market determines what's "right'. And things have gone downhill quickly because the building has gone through multiple managers in one year, depleted reserves, and is getting a bad name in the area (it is not alone...). And, no, sadly, we only got *one* offer in 1 year... It is low. We are now seriously considering just going with it but have not made a final decision.

quoting prices from 3 and 10 years has no relevance today. You already mentioned the building next is zoned for shorter rentals. Some buyers will pay a huge premium to face the water, that's always been true.

It must be beyond frustrating to see your place declining in value while the places you want to buy are rising. Sadly I think you will either sell for what you feel is a lowball price or just stay because of the lowball offers. Only you can decide what works for you. I don't remember if you mentioned what you paid for the condo,but remember it always costs something to live somewhere.

Good Luck...

[Karloff]

Quote:

Originally Posted by ivinsfan It must be beyond frustrating to see your place declining in value while the places you want to buy are rising.

This is exactly what we are going through and the main source of our frustration.

We would have no loss, to be honest, even if we sell at the single lowball price that we were offered. But it is still shocking to see how quickly things can go downhill... Right now, there is not even a motion trend... it's more like a "full stop". The sale I mentioned from a few months ago was the last one in the building, and the new owners now feel like they were ripped-off and overpaid. There have been no sales in the building since.

Our concern is not really making nor losing money, but simply being able to more or less afford the type of house we would love without touching much of our savings. Retirement is still priority #1. A year ago, we thought we could easily afford a $500K single-family home by selling our condo around $450K or so, and dipping on our savings just a bit. No big deal. Our dream was a new construction home. We even made a deposit on one, thinking the condo would sell in a matter of days. How clueless we were... Luckily, we got our deposit for the new home back... And today, almost one year later, it's looking like we will sell at around $100+K less than what we thought, so the main question is "do we buy a lot less home than we dreamed of, or do we get a mortgage to finance the -/+$100K difference?". Since I am debt-averse to the point of it being a psychological drain for me, we may do just that, although the comments on this thread are convincing me that the $100K mortgage would not be the end of the world after all...

I do appreciate all the comments and feedback!

[ShokWaveRider]

Karloff: You will most likely have to go "Way" inland to get a new home for ~$400k - $500k. I do not know for sure, but looking at Zillow it seems that way.

[carnivalday]

I am sure where you are living now is causing you misery, and stress...and will eventually, if it hasnt already, cause health issues. You folks are still young, with a decade or two of high earnings ahead of you. You work at home; how much is working somewhere that you have to leave to just hear a phone call costing you in productivity. How would you feel working from a new home where its peaceful and quiet and you love being there?

Money is for making your life better. That money sitting in that account isnt doing much to help that. You have 2 decades left to make up that difference. Fire sale that sucker and get out of there. I cant imagine the peace and joy you will experience when you are shopping for that wonderful new home. If you were 60, Id have a different answer, but you're not. Every day you arent loving your life is a day wasted. And no one has days to waste.

[Karloff]

Quote:

Originally Posted by ShokWaveRider Karloff: You will most likely have to go "Way" inland to get a new home for ~$400k - $500k. I do not know for sure, but looking at Zillow it seems that way.

Not necessarily. And we do not really care to live on the beach anymore. I really could not care less about it, to be honest.

You can purchase a brand new construction home today in Hollywood for $500K. Or even $450K in the Pompano Beach area (but this is a little too far for us). There are many homes under $400K in the Pembroke Pines and Davie and Cooper City areas. But they are not really what we wanted, mainly because they are older homes that would need new windows, etc. For us in South FL, impact windows are a must. The last thing I want to do is spend $100K from savings or get a mortgage, and then spend another $30K on new impact windows... The new homes are built to the latest codes and come with these windows as standard, which also significantly lowers insurance premiums.

[Karloff]

Quote:

Originally Posted by carnivalday I am sure where you are living now is causing you misery, and stress...and will eventually, if it hasnt already, cause health issues. You folks are still young, with a decade or two of high earnings ahead of you. You work at home; how much is working somewhere that you have to leave to just hear a phone call costing you in productivity. How would you feel working from a new home where its peaceful and quiet and you love being there? Money is for making your life better. That money sitting in that account isnt doing much to help that. You have 2 decades left to make up that difference. Fire sale that sucker and get out of there. I cant imagine the peace and joy you will experience when you are shopping for that wonderful new home. If you were 60, Id have a different answer, but you're not. Every day you arent loving your life is a day wasted. And no one has days to waste.

Thank you. You are absolutely right.

[Ian S]

I would echo the other comments about not being in fear of a mortgage but only you can work through that psychological impediment. I also would advise selling and getting out ASAP. As a long time Board member of an HOA, I see the deteriorating maintenance and non-existent reserves as a disaster in the making. Even if there's a whiff of a specific special assessment, you may be forced to disclose that meaning another hit on the unit's value.That said, others have also suggested that you might try to change the rules regarding short term rentals. How quickly that could be done might depend on whether the rental rule is in the CC&Rs or is simply a rule that is changeable by the Board without the more involved procedure to change the CC&Rs. If just a Board decision, that could be done quite quickly. Also, not sure if it's available, but you could try a fixed fee sellers agent. That could save enough on commission to allow you to drop the price more and come out financially the same. We were able to do that with our patio home recently and saved over $25K on the sale. Good luck.

[gooddog]

I have seen people chase the market down when selling their place. They are so tied up in what they haven't got that they keep trying to get the most for their place, and it never sells - until they finally give up and get next to nothing. If you want out of this mess, get ahead of the downward trend and price your place under the market and dump it. It will hurt for a few months, but in a year you will be much happier and forget about the 20k or so you "didn't get". Or, stay frustrated and keep trying to get the max. Those are your two choices.

[tmm99]

Quote:

Originally Posted by badatmath Living in a condo with zero in reserves that is not being maintained is a lot scarier than a mortgage.

+1
With a mortage or not (You could possibly rent although it's probably not so wise the housing prices in your area are going up a lot), the most important thing seems to be to sell your condo ASAP before the price plunges even further.

[papaof2]

Expand your house search to properties farther out than you're looking. We moved up from a paid off house to a new 5/1 ARM because we needed more space (kids living 600 miles away do want to stay a while when they visit and we loved having the grandkids here).

Moving up to that much house where we were living would have been $300K. Moving out of the city (four miles out) and into an unincorporated area of the county (but with streetlights and full underground utilities) meant we got the equivalent house for $200K. Our original house sold some months later so we paid down the principal and refinanced the balance. A year or so later a stock we'd held for a long time was doing well so we sold enough to pay off the new-to-us house.

The area was once a city (before WWI) so it's "civilized" and we have two grocery stores, plus Aldi, Lidl and a gas station less than a mile away. Several decent restaurants plus Lowe's, Home Depot, Target, Walmart, LA Fitness, a hospital and several doc-in-a-box locations within a 10 minute drive. A major mall is about 30 minutes away. AT&T cell service is excellent here but Verizon and Tracfone are not as good (that might or might not be important to you). We have the option of Xfinity or AT&T for internet and cable TV. Both offer high speed internet (for a price).

Make a list of what you NEED in a new place to live. Make a separate list of what you WANT in that place. Put priorities on each item (1, 2, 3, etc) and a dollar value of what it's worth to you now and what it will be worth to you if you're still in that house in 10, 15 or 20 years. We looked for a "forever" house, with a garage, minimal steps (one 5 inch step from garage to main level and the design is master on main). If we couldn't do stairs to the basement, there's a paved drive around to the boat door (garage door but to an unsealed space not suitable for parking a car) so a wheelchair or powered scooter could get me from the garage to the basement if things came to that.

At 75+, I'm mostly retired with my writing (7 novels published) [mod edit] as my current "job".

[Buckeye]

Quote:

Originally Posted by MrsHaloFIRE Property will sell when its proced appropriately and marketed well. Something has to give. I negotiated on a house that had been on the market for over a year. Negligent maintenance. High HOA fees. Seller would not budge on repairs and i walked. She held out another 6 mos and finally dropped her price below what I offered and sold. Total time on the market almost 2 years. 14k a year in taxes. Several hundred a month in HOA. She ate it big time. Don't let this be you. Price it right.

Have a professional appraisal done. Will probably cost $300-$400. Find out the true value of your property from an unbiased expert. We did this several years ago when we were selling a home into a tough market in a rural area. I did not like the number that came back but it told me the 'truth.' We sold within 60 days and got the hell out of there. If we had tried to sell at the price we thought the house was worth (i.e. more than we paid for it), we would probably STILL be there.

Whatever you do, don't turn it into a rental. Misery on steroids.