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PostPosted: Wed Dec 02, 2015 3:06 am GMT    Post subject: Newbie Resources Reply with quote

hi all,

Beginning to research buying a house in the greater Boston area and trying to get a read on whether it's worth waiting a year or two. Mortage rates seem good but prices are high.

Looking at the News & Reference Suggestions section most of the links seem to be either (a) news or (b) a bit over my head, as they require familiarity with a pile of metrics. Where do people suggest starting?
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Guest






PostPosted: Wed Dec 02, 2015 4:59 pm GMT    Post subject: Reply with quote

would be helpful if you provide your affordable price range, so others can provide suggestion on target areas
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admin
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Joined: 14 Jul 2005
Posts: 1826
Location: Greater Boston

PostPosted: Wed Dec 02, 2015 6:33 pm GMT    Post subject: Reply with quote

What's your motivation for buying? That could matter a lot when determining whether to wait.

- admin
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bsg61
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PostPosted: Wed Dec 02, 2015 9:22 pm GMT    Post subject: Reply with quote

I am still waiting because this current market seems unsustainable but the low inventory and available properties in my city - Cambridge - usually selling for 50K+ over asking price makes me wonder.

Is it different this time? Is it going to take 500K to just step foot in Cambridge or Somerville? Lately I am starting to believe "buy now or be priced out forever"...or are we nearing the top of the market? Are most people in the Boston area making $150K?

http://www.boston.com/real-estate/news/2015/12/01/this-the-salary-needed-buy-typical-house-boston/N38pDmAXKj6ogKPkHo39FP/story.html?p1=Must_Reads#comments

I do regret not buying 5 (or 20) years ago, although I still have cheap rent and have saved a lot of $$$ to the point that I could pay cash but that doesn't tie in with my goals of early retirement and a (hopefully) less stressful life as a single elderly person with no children. Need a nest egg to live on but of course, I am forced to gamble my retirement money in the stock market since one cannot make any $$ off "safe" investments with these historically low interest rates.

Oh, yeah, and then there are health care costs to consider.

Time to pour a glass of wine. Wink
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Guest






PostPosted: Thu Dec 03, 2015 1:09 am GMT    Post subject: Reply with quote

Anonymous wrote:
would be helpful if you provide your affordable price range, so others can provide suggestion on target areas


Have ~175k for down payment and could put up to ~3k/month into mortgage.

Admin wrote:
What's your motivation for buying? That could matter a lot when determining whether to wait.


Part of it's emotional, I suppose. The other piece is that it would be financially advantageous assuming property values stayed flat/tracked with inflation. Between the tax savings on interest and being able to rent out a bedroom or two the mortgage would be cheaper than comparable rentals in the Cambridge/Somerville area.
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Guest






PostPosted: Thu Dec 03, 2015 3:33 am GMT    Post subject: Reply with quote

bsg61 wrote:
I am still waiting because this current market seems unsustainable but the low inventory and available properties in my city - Cambridge - usually selling for 50K+ over asking price makes me wonder.

Is it different this time? Is it going to take 500K to just step foot in Cambridge or Somerville? Lately I am starting to believe "buy now or be priced out forever"...or are we nearing the top of the market? Are most people in the Boston area making $150K?

http://www.boston.com/real-estate/news/2015/12/01/this-the-salary-needed-buy-typical-house-boston/N38pDmAXKj6ogKPkHo39FP/story.html?p1=Must_Reads#comments

I do regret not buying 5 (or 20) years ago, although I still have cheap rent and have saved a lot of $$$ to the point that I could pay cash but that doesn't tie in with my goals of early retirement and a (hopefully) less stressful life as a single elderly person with no children. Need a nest egg to live on but of course, I am forced to gamble my retirement money in the stock market since one cannot make any $$ off "safe" investments with these historically low interest rates.

Oh, yeah, and then there are health care costs to consider.

Time to pour a glass of wine. Wink


My wife and I pull in $215K and we're having a tough time buying something that isn't a complete disaster. We're waiting because we have no choice but to wait. Everything on the market is utter shit. At least in towns with good schools. And you get to scrape the bottom of the barrel at $700K, which is obviously insane and unsustainable.
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PostPosted: Thu Dec 03, 2015 9:01 pm GMT    Post subject: Reply with quote

bsg61 wrote:
I am still waiting because this current market seems unsustainable but the low inventory and available properties in my city - Cambridge - usually selling for 50K+ over asking price makes me wonder.

Is it different this time? Is it going to take 500K to just step foot in Cambridge or Somerville? Lately I am starting to believe "buy now or be priced out forever"...or are we nearing the top of the market? Are most people in the Boston area making $150K?

http://www.boston.com/real-estate/news/2015/12/01/this-the-salary-needed-buy-typical-house-boston/N38pDmAXKj6ogKPkHo39FP/story.html?p1=Must_Reads#comments

I do regret not buying 5 (or 20) years ago, although I still have cheap rent and have saved a lot of $$$ to the point that I could pay cash but that doesn't tie in with my goals of early retirement and a (hopefully) less stressful life as a single elderly person with no children. Need a nest egg to live on but of course, I am forced to gamble my retirement money in the stock market since one cannot make any $$ off "safe" investments with these historically low interest rates.

Oh, yeah, and then there are health care costs to consider.

Time to pour a glass of wine. Wink



Cambridge price is insane, mostly due to following reasons
#1: insanely low property tax rate. If you live in Cambridge, you know the two schools pay for your property tax. with low interest and low property tax environment, when the maintenance cost of property goes way down, price of the property goes way up.
#2: international interest on setting up office/research lab in this area. So high paying professional and students like to live around this area, drive up demand on housing, prices goes up。
#3: this one is a slow making one. As prices goes up, a lot of low income families used to live in Cambridge area are being driven out of it, replaced with young professional and student population. This further up the price. I don't blame you for not buying in Cambridge 20 years ago, back then most areas of Cambridge used to be slum, SFH missing yard and parking is so common, and the city was filled with large projects and empty factory warehouses. But you should really kicking yourself for not buying 5 years ago. That was an opportunity of life time.
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PostPosted: Thu Dec 03, 2015 9:34 pm GMT    Post subject: Reply with quote

Anonymous wrote:
Anonymous wrote:
would be helpful if you provide your affordable price range, so others can provide suggestion on target areas


Have ~175k for down payment and could put up to ~3k/month into mortgage.

Admin wrote:
What's your motivation for buying? That could matter a lot when determining whether to wait.


Part of it's emotional, I suppose. The other piece is that it would be financially advantageous assuming property values stayed flat/tracked with inflation. Between the tax savings on interest and being able to rent out a bedroom or two the mortgage would be cheaper than comparable rentals in the Cambridge/Somerville area.


Your thinking is representing pretty much everyone else out there. My advise to you is, just ask yourself, is buying really saving more than 10% compare to renting of the same thing in the next 5 years? Beside the down payment, buying mean you need to pay mortgage, plus tax, plus maintenance (or condo free). If yes, go buy it without any delay.
If not, then take your time instead of rushing in buying.
With that said, your down payment and the mortgage affordability can get you into 600+ thousands dollars home comfortably. Cheap side of Cambridge, most of Somerville should work. Cheap side of Allston/Brighton should work. Watertown should work. Believe it or not, cheap side of Newton/Belmont would work too. There are many choices out there. Just don't expect to get your perfect dream house with this price range, but you should be able to something decent.
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offrs reviews



Joined: 31 Jan 2018
Posts: 2

PostPosted: Wed Jan 31, 2018 4:58 pm GMT    Post subject: There is an offrs.com homeowner/agent review on this Reply with quote

Just wrote an article on this that might help...




What Every First-Time Homebuyer Needs to Know
Congratulations! You’re ready to buy your first home. If you’re like most first-time homebuyers, it’s a very exciting time. But, since it’s something you haven’t done before, you need to make sure that you research the process, find out what to expect and what you can do to make the experience a success. Here are the most critical things a first-time home-buyer needs to know to get started.


Avoid Becoming “House Poor”
Okay, so you’re fired up about buying a house, but don’t forget that there are other things you like to (and have to) spend your money on. It’s easy to get caught up in the magic of house-hunting and end up paying more than you’re comfortable with. Just because you’re approved for a particular mortgage amount doesn’t mean you should use all the approved funds to buy your home.


Calculate the Cost of Home Ownership
You need to do the math. The cost of home ownership goes far beyond the mortgage payment. Make sure that you add in:

    Property Taxes and Home Insurance: These two items are often included in your monthly mortgage payment, but keep in mind that many online mortgage calculators don’t take these into account.

    Private Mortgage Insurance (PMI): If your down payment is less than 20 percent, you may need to include Private Mortgage Insurance (PMI) in your monthly mortgage cost.

    Homeowner Association (HOA) Fees: If you move into a neighborhood that has an HOA, you’ll need to factor in a monthly HOA fee.
    Utilities: Your utilities may be higher in your new home, so don’t underestimate the cost.

    Maintenance: Even newer homes need occasional maintenance, so make sure to consider maintenance in your budget.


Decide What You Want to Pay Each Month
Based on the potential cost of a new home, decide what you’re willing to spend on this alone, each month. Your calculations may indicate that if you buy the most expensive home you can... you won’t have enough money each month to do the other things you enjoy doing. If that’s the case, set a price range for your new home that will let you have that desirable lifestyle that you also yearn for.



Get the Professional Services You Need to Get Started
You’ll need the services of a number of professionals as you go through the purchase process, but you need to start with these two.

    A Real Estate Agent: Find an agent that has experience working with first-time homebuyers. Choose wisely, and they can be a big help in ensuring that you enjoy your home buying experience. Hiring a relative or friend who just got their license, or who isn’t familiar with the neighborhoods you want to look in may not be the best approach.

    A Mortgage Lender: Don’t delay finding a mortgage lender. You need to get pre-approved before you even start looking for a home. You’ll get a clear idea of what your mortgage costs will be, and you’ll put yourself in a strong negotiating position with home sellers.


Clarify Your Needs and Wants
Realistically, you’ll never find a perfect house, so it’s important to make a list of things you need and things you want. The things you need should be those things that you don’t want to compromise on, while the things you want aren’t set in stone. You might even want to prioritize your “need” list. These lists will help you stay focused as you’re looking at prospective homes. For example, you may want a wrap-around porch, but you need to be in a particular school district. Review and revise the list with your real estate agent.



Have Fun!
There are other things you’ll need to know as you get farther into your home search. However, when you address the issues described above, you’ve set a good foundation for success! Remember to go in prepared but to make it a fun experience. Being ready to jump if you need to doesn't have to mean a stressful experience.
_________________
offrs reviews homeowner tips and agent best practices in real estate. Have you used offrs? Do you have advice, feedback or tips to share with homeowners, home sellers or home buyers out there? Let us know!
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PostPosted: Wed Jan 31, 2018 7:29 pm GMT    Post subject: Reply with quote

Wait it out. THIS IS ABSOLUTELY THE WORST TIME TO BUY EVER.
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Guest






PostPosted: Thu Feb 01, 2018 1:02 am GMT    Post subject: Reply with quote

https://www.cnbc.com/2018/01/31/ceo-interest-rates-have-been-manipulated-by-the-fed-for-too-long.html
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PostPosted: Fri Feb 02, 2018 1:26 pm GMT    Post subject: Reply with quote

If your price range was 1.5M, then I would say it "might" be worth waiting. But at 500k I would say the risk/reward is tiltled towards buying sooner. only because
- employment is low
- cambridge is close to employment and education centers
- price range is below the new 750k mortagage cap
- demand for rents because of the above (especially the education acting as backstop). Drops too mouch then investors swoop in

A decline may get you better 'choice' without bidding wars, but the risk/reward of waiting for a 500k property to be a 400k property may be a pointless excercise in the next 5 years.
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Guest






PostPosted: Fri Feb 02, 2018 5:41 pm GMT    Post subject: Reply with quote

Anonymous wrote:
bsg61 wrote:
I am still waiting because this current market seems unsustainable but the low inventory and available properties in my city - Cambridge - usually selling for 50K+ over asking price makes me wonder.

Is it different this time? Is it going to take 500K to just step foot in Cambridge or Somerville? Lately I am starting to believe "buy now or be priced out forever"...or are we nearing the top of the market? Are most people in the Boston area making $150K?

http://www.boston.com/real-estate/news/2015/12/01/this-the-salary-needed-buy-typical-house-boston/N38pDmAXKj6ogKPkHo39FP/story.html?p1=Must_Reads#comments

I do regret not buying 5 (or 20) years ago, although I still have cheap rent and have saved a lot of $$$ to the point that I could pay cash but that doesn't tie in with my goals of early retirement and a (hopefully) less stressful life as a single elderly person with no children. Need a nest egg to live on but of course, I am forced to gamble my retirement money in the stock market since one cannot make any $$ off "safe" investments with these historically low interest rates.

Oh, yeah, and then there are health care costs to consider.

Time to pour a glass of wine. Wink


My wife and I pull in $215K and we're having a tough time buying something that isn't a complete disaster. We're waiting because we have no choice but to wait. Everything on the market is utter shit. At least in towns with good schools. And you get to scrape the bottom of the barrel at $700K, which is obviously insane and unsustainable.


$700-800K still buys you a decent SFH in Arlington. I bought a house there in 2016 for $800K. Happy I did, since the same house would cost me maybe $850K or $900K now. It's perfectly livable, if a little dated. Pretty confident that if I put in $100K for reno I could sell the place for $1M. Not that I plan to do that.
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Guest






PostPosted: Fri Feb 02, 2018 7:39 pm GMT    Post subject: Reply with quote

This market will correct 30% in the upper end and %15 on the lower end within 2 years and there will be no appreciation until then. Cheers.
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Guest






PostPosted: Fri Feb 02, 2018 7:45 pm GMT    Post subject: Reply with quote

Anonymous wrote:
This market will correct 30% in the upper end and %15 on the lower end within 2 years and there will be no appreciation until then. Cheers.

With talent like yours, you should be selling penis pills!
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