When is LBYM going to far?

[Bikerdude]

Usually the lower cost Condo's are not very quiet. Check on the sound proofing that was installed when the units were built. Talk to some of the people living there.

 

[aaronc879]

When i went for the first showing i was shocked at how quiet it was in the unit. I couldn't hear any noise at all. I went out side by the pool and it was much louder as there is a fairly major highway not far away. But the important thing is inside the unit is quite.

 

[Robert the Red]

I plan to get a 15 year mortgage ...

This idea is a mistake. Get a 30 year mortgage (fixed rate, no prepay penalty), then pay extra when you can afford it. You said your job is a little uncertain -- you don't want to be bound to the higher 15 year mortgage pay rate if your pay goes down by 50% suddenly!

 

[Walt34]

In addition to the other comments, consider whether you're going to use the amenities (i.e., the pool) that the association fees will be paying for. For example, the community we live in has a pool we don't use that takes up about one-third of the $400/year association fee. Had we known that, we may not have bought in the community. Compared to the total cost of ownership it's a drop in the bucket really, but it was a surprise that the pool cost that much and is an annoyance. Much of the pool cost is for insurance and the lifeguards that are required by the insurance company.

I've also heard bad things about associations not keeping adequate reserves for roofs and repaving - be careful about that!

 

[W2R]

This idea is a mistake. Get a 30 year mortgage (fixed rate, no prepay penalty), then pay extra when you can afford it. You said your job is a little uncertain -- you don't want to be bound to the higher 15 year mortgage pay rate if your pay goes down by 50% suddenly!

This is good advice. I paid my house off in four years, but got a 30-year mortgage to do it. By the time I paid it off my total payments had been a trivial amount more than they would have been with a fifteen year mortgage. But each month, I had the *option* of sending in the extra or not. Obviously I paid more than my required payments most of the time, but I liked the increased flexibility in case something unexpected came up.

 

[pedorrero]

Are you comfortable with the racial make-up of the "hood" (er, neighborhood) ? Also not mentioned, or did I miss it? : condos can be difficult to re-sell, especially if your neighborhood goes to S#!T after you buy it. Perhaps this is less of a risk in a not-ritzy neighbor hood to begin with?

 

[GatorBuzz]

I just did a quick MLS search in your area. Literally took me one minute. Here are some single-family homes in the 65k-75k range. If it were me, I would think very seriously about spending a 20-30k more and getting a house. If you can afford to put 15k down to avoid PMI, on a 75k house, your payments would be about $359.

I don't know your situation, obviously. But this may be an avenue that you should seriously, seriously consider.

Edit: Here is a link: Neenah, WI - Prudential Preferred Properties

 

[barbarus]

Wait awhile if you can and see how your position holds up AARON. You'll find even better deals in the next couple of years. Much better.
You're wise to be concerned about manufacturing. The Midwest is in a death spiral that I see no way out of.

 

[lazygood4nothinbum]

257 foreclosures in neenah per Welcome to RealtyTrac

with 59 of those "priced" (in quotes) under $150k per http://realestate.yahoo.com/Wiscons...Low=&priceHigh=150000&bedroomLow=&bathroomLow=

wanna bet you can get one of those for half price?

 

[Spanky]

Funny how local real estate is... In San Francisco a smaller 1br/1ba condo sells for about 15x the price of that!

We were in SF in December and could not understand the reason that people would pay that much for a place to live. Most houses (built in early 1900s) do not have any windows on the side and their walls are almost right next to those of another house. Parking spaces are limited. Traffic is very congested even on the weekend. The city does have a lot of high rises that overlook the bay, but a condo at one of those buildings probably costs a couple million dollars.
Most of the jobs, I believe, are located in downtown to which you can access by BART from the East Bay in which housing is more affordable (still very high).

 

[haha]

Most of the jobs, I believe, are located in downtown to which you can access by BART from the East Bay in which housing is more affordable (still very high).

Totally different experience. I lived in Walnut Creek for 2 weeks; I hated it so much I forfeited my first and last to get over to the city. I also lived in Berkeley for a time which was nice, and sunnier and warmer than SF, but not so hot as east of the Berkeley/ Oakland Hills.

Ha

 

[CCdaCE]

Doesn't look like too tough of a neighborhood, adjacent to the golf course. See the aerial map on Mapquest. I worked in Port Washington for a few weeks, so I got a ballpark idea of the area.

Personally, I don't like the idea of a condo, with the fees and "I-don't-get-a-say" in the maint. issues. Sure, it may seem "cheap" now, but you're stuck with those fees forever. Figure out the present value of $200/mo. or whatever for the rest of your life, or life of the dwelling. You still have maint. with a house, but at least you have more say whether you put in a new driveway, pay for snow removal for every 1/2" that falls (stuff you can do yourself if you're truely LBYM), pick maint. free siding/shingles, etc. Are you going to have enough room for all your hunting/fishing/stamp collecting/kayaking/Green Bay Packers/etc. gear in 10 years in a condo.?

I just can't make the leap after renting through college and now owning a house for the past few years. But, I'm a OCD Engineer when it comes to some things.

Good luck, whatever you choose. A seemingly (to me) low priced condo. might be exactly what you're suited to. Pros and cons to everything.

-CC

 

[P.S.]

We were in SF in December and could not understand the reason that people would pay that much for a place to live. .

Spanky, we were there for a week n half over Thanksgiving visiting my brother, SIL, and their new babe.
We went here for b-fast almost everyday:
Welcome | TARTINE BAKERY - SAN FRANCISCO
OMGoodness! the best tasting 1000kcal for for a meal. Yeah-ah! If I could stroll here for b-fast everyday I would move there SOO fast.
sigh... I think my stomach shed some tears when the plane left the tarmac.

OP, how much more house equity could the $110/mo HOA buy you?
I think condos are best for places where RE is really expensive.
Honestly, from the looks of your locale, I would save or work for a house. In the ABSOLUTE most desirable location. I understand you make $44k, but there are ways to increase that.

 

[clifp]

This idea is a mistake. Get a 30 year mortgage (fixed rate, no prepay penalty), then pay extra when you can afford it. You said your job is a little uncertain -- you don't want to be bound to the higher 15 year mortgage pay rate if your pay goes down by 50% suddenly!

I disagree. He is paying a condo at 1X his salary, compared to a far more typical 3x or in places like Hawaii or CA 4-5x. There is a 1/2 percent different between 30 year and 15 year fixed. 15 year 35K loan at 5% payments are $276 at 30 year loan at 5.5% is $198