lawngnome o-line Posted February 22, 2009 Share Posted February 22, 2009 I'm considering buying a house but I have 0 knowledge on what I should be considering or things that I should be conscious of. I figure instead of spending out of my ass in rent in the city I could just spend similar to slightly more for a mortgage take advantage of a cheaper housing market My intent is to buy a house: -In Eastern Queens/Western Nassau County - With finished basement or 2nd level, of which I could rent out (includes small kitchen, bathroom, and bedroom (preferably with private entrance) - Relatively lower taxes for the area (I know that's almost impossible) I'm looking closer to 6k a year property taxes rather than 10k - Looking in the 300k-400k price range Any help or suggestions/things to consider would be greatly appreciated by the members of the board Link to comment Share on other sites More sharing options...
DMaynard Posted February 22, 2009 Share Posted February 22, 2009 Good time to buy if you can. Real estate is cheap and interest rates are still relatively low. Do not, I repeat, do not get a variable rate mortgage. Get a fixed rate. Interest rates will definitely be going up faster than you can say Jimmy Carter. Link to comment Share on other sites More sharing options...
Otter Posted February 22, 2009 Share Posted February 22, 2009 Make sure you get a quality home inspector. Don't necessarily go with whomever your real estate agent recommends. Link to comment Share on other sites More sharing options...
DMaynard Posted February 22, 2009 Share Posted February 22, 2009 Make sure you get a quality home inspector. Don't necessarily go with whomever your real estate agent recommends. Good point. I got screwed once. Some of these guys are pretty shady if not incompetent. Link to comment Share on other sites More sharing options...
Otter Posted February 22, 2009 Share Posted February 22, 2009 Good point. I got screwed once. Some of these guys are pretty shady if not incompetent. I had to put in a new septic tank about a year and half after we bought our house. If we had a decent inspector I would have saved 3 grand. Link to comment Share on other sites More sharing options...
DMaynard Posted February 22, 2009 Share Posted February 22, 2009 I had to put in a new septic tank about a year and half after we bought our house. If we had a decent inspector I would have saved 3 grand. I once bought new construction that never should have passed inspection. I found out later that the builder, real estate agent and inspector were all good friends. I let my girlfriend at the time run with everything because I was so busy at work. That was my first mistake. Link to comment Share on other sites More sharing options...
Larz Posted February 22, 2009 Share Posted February 22, 2009 get pre-approved for a mortgage before you even go out with a realtor, use a broker don't even think about spending more than 85% of what you get pre-approved for small but nice is better than big and "needs work" stay away from crappy driveways, (narrow, steep, windy) and look for the grade of the property, make sure it doesn't flow towards the house good luck ! Link to comment Share on other sites More sharing options...
Maxman Posted February 22, 2009 Share Posted February 22, 2009 Hey Brian good luck with it. The only advice I have for you is the same advice I just gave my brother. He is closing on a house this week. If you don't have anything to sell, you are PAYING WITH GOLD right now. Pure GOLD. People are completely panicked. You walk in, see something you like and you are all set. Do something like a quick close in your offer and you could find some really good deals. Also don't forget about the $8,000 tax credit for first time home buyers. I know last year it was $7,500 which you were credited with on your return and it was $500 per year you had to pay back on your return for 15 years. I think with this bill it went to 8 grand but I didn't check, definitely look into it. That is a great incentive. Good luck. Link to comment Share on other sites More sharing options...
Bugg Posted February 22, 2009 Share Posted February 22, 2009 Get an inspection, period. In NYC, think the prices are going to start dropping over the next 6 months, especially in the outer boros. Nassau COunty is going to have higher taxes in the places you want to live, but better schools. If you have kids, find out the school district, though in some parts of Brooklyn, Queens and SI, the public schools are actually pretty good and even go through 8th grade. Further, put more money down than you'd like. Those 100% financing and "seller's concession" deals are gone. Check out mortgage rates on line. The bigger the bank, the less help they will be, but typically a big ank will have lower closing costs. But understand that you are paying a mortgage broker one way or the other and you can do the looking around yourself for rates. The Post and Times publish rates every Sunday.Demand yto know what your costs are no matter who you get your mortgage from. Know in NY you pay a mortgage taxes of 1.75% Oof your mortgage at closing. If you work in a union job, see if the union provides legal rep or a voucher for a lawyer. Link to comment Share on other sites More sharing options...
Bugg Posted February 22, 2009 Share Posted February 22, 2009 Hey Brian good luck with it. The only advice I have for you is the same advice I just gave my brother. He is closing on a house this week. If you don't have anything to sell, you are PAYING WITH GOLD right now. Pure GOLD. People are completely panicked. You walk in, see something you like and you are all set. Do something like a quick close in your offer and you could find some really good deals. Also don't forget about the $8,000 tax credit for first time home buyers. I know last year it was $7,500 which you were credited with on your return and it was $500 per year you had to pay back on your return for 15 years. I think with this bill it went to 8 grand but I didn't check, definitely look into it. That is a great incentive. Good luck. Weird thing with that-only applies to fisr time homebuyers who close between April 9th 2008 and July 31, 2009. So I expect people are going to be like cats trying to get of a bag to close before then because next year's stimulus is not yet finalized, though I'd expect it will be extended. Had a client who bought his first house on march 31st, 2008 and could not get the credit and had no idea that scheduling his closing for a week and half later would've given him $7500.Since every mortgage generates a notification to HUD, fudging that would probably trigger an IRS audit. Link to comment Share on other sites More sharing options...
Maxman Posted February 22, 2009 Share Posted February 22, 2009 Weird thing with that-only applies to fisr time homebuyers who close between April 9th 2008 and July 31, 2009. So I expect people are going to be like cats trying to get of a bag to close before then because next year's stimulus is not yet finalized, though I'd expect it will be extended. Had a client who bought his first house on march 31st, 2008 and could not get the credit and had no idea that scheduling his closing for a week and half later would've given him $7500.Since every mortgage generates a notification to HUD, fudging that would probably trigger an IRS audit. Wow I thought it was extended. That is crazy if you miss that timeline that is a lot of money to get interest free. Link to comment Share on other sites More sharing options...
ZachEY Posted February 22, 2009 Share Posted February 22, 2009 I'm in the same boat. Looking to buy a condo in manhattan, preferably the UWS. Something along the lines of a 2br/1 bath or a 1br convertible. Going in with my best friend to split the costs so we don't have to pay rent. Market seems pretty good right now, and with the capping of Wall Street bonuses, more should be coming available shortly. Like you, looking at it as an investment as well. The hope is to live there for about a year and a half to 2 years, (that'd put us at 27) and then refinance to pull out our investment and buy our own places, then take in renters. The hope is for this to be the begining of a small real estate venture for the two of us. We'll see how it goes. I'm going to look around with my agent this week. Link to comment Share on other sites More sharing options...
Jets Voice of Reason Posted February 22, 2009 Share Posted February 22, 2009 I'm in the same boat. Looking to buy a condo in manhattan, preferably the UWS. Something along the lines of a 2br/1 bath or a 1br convertible. Going in with my best friend to split the costs so we don't have to pay rent. Market seems pretty good right now, and with the capping of Wall Street bonuses, more should be coming available shortly. Like you, looking at it as an investment as well. The hope is to live there for about a year and a half to 2 years, (that'd put us at 27) and then refinance to pull out our investment and buy our own places, then take in renters. The hope is for this to be the begining of a small real estate venture for the two of us. We'll see how it goes. I'm going to look around with my agent this week. I knew it Link to comment Share on other sites More sharing options...
Jbro22 Posted February 22, 2009 Share Posted February 22, 2009 Breesy Point OR BUST... Link to comment Share on other sites More sharing options...
Jet Moses Posted February 22, 2009 Share Posted February 22, 2009 I hear alot of good things about Mastic LI on the O & A show. Link to comment Share on other sites More sharing options...
SouthernJet Posted February 22, 2009 Share Posted February 22, 2009 I'm considering buying a house but I have 0 knowledge on what I should be considering or things that I should be conscious of. I figure instead of spending out of my ass in rent in the city I could just spend similar to slightly more for a mortgage take advantage of a cheaper housing market My intent is to buy a house: -In Eastern Queens/Western Nassau County - With finished basement or 2nd level, of which I could rent out (includes small kitchen, bathroom, and bedroom (preferably with private entrance) - Relatively lower taxes for the area (I know that's almost impossible) I'm looking closer to 6k a year property taxes rather than 10k - Looking in the 300k-400k price range Any help or suggestions/things to consider would be greatly appreciated by the members of the board location, location, location.. stay away form GREAT deals if in a less desirable neighberhood or where schools are less desirable,,take less 'house deal' in a better neighberhood/school area... u win in long run and kids will benefit socially and educationally Link to comment Share on other sites More sharing options...
Green DNA Posted February 22, 2009 Share Posted February 22, 2009 Try Northeast Queens (Bayside, Whitestone, North Flushing). The schools are excellent and the RE taxes are a heck of a lot lower than Nassau County. It may still be a little pricey, but as a buyer you are in the drivers seat right now. Link to comment Share on other sites More sharing options...
RSJ Posted February 22, 2009 Share Posted February 22, 2009 location, location, location.. stay away form GREAT deals if in a less desirable neighberhood or where schools are less desirable,,take less 'house deal' in a better neighberhood/school area... u win in long run and kids will benefit socially and educationally I agree 110%. Buy the worst house in the best neighborhood, rather than the best house in the worst neighborhood. Also, I wouldn't start the negotiation at anything more than 75% of the asking price. No one is going to get pissed off in this market since they are lucky if they get an offer every 6 months. Link to comment Share on other sites More sharing options...
ZachEY Posted February 22, 2009 Share Posted February 22, 2009 I agree 110%. Buy the worst house in the best neighborhood, rather than the best house in the worst neighborhood. Also, I wouldn't start the negotiation at anything more than 75% of the asking price. No one is going to get pissed off in this market since they are lucky if they get an offer every 6 months. That having been said, who cares if you piss them off? More often than not, you don't actually meet the homeowner. One building I'm looking at has about 5 available units right now. If I decide I want that, I'm going to make some horribly offensive offers due to that + the economy. Link to comment Share on other sites More sharing options...
Maxman Posted February 22, 2009 Share Posted February 22, 2009 Pissing them off is not an issue BUT you should do your homework anyway. Look them up, see if they are in pre-foreclosure. See what they paid, check to see what they currently owe. These things are all out there for you. The internet is a wonderful thing. Link to comment Share on other sites More sharing options...
lawngnome o-line Posted February 22, 2009 Author Share Posted February 22, 2009 I'm definitely looking for only good neighborhoods. This is eventually going to be the starter/first home, so neighborhood and schools are completely in the picture. I also figure get some realtors to go out there and send me some stuff. That way I can get a gauge of taxes and house costs for each area. Link to comment Share on other sites More sharing options...
Bugg Posted February 22, 2009 Share Posted February 22, 2009 Breesy Point OR BUST... The west of Rockaway(say B.116th Street west) and Long Beach, Island Park, Oceanside, Point Lookout, all seem utterly unaffected by this current crisis. It will take a hurricane for those areas to drop. Link to comment Share on other sites More sharing options...
#27TheDominator Posted February 22, 2009 Share Posted February 22, 2009 The west of Rockaway(say B.116th Street west) and Long Beach, Island Park, Oceanside, Point Lookout, all seem utterly unaffected by this current crisis. It will take a hurricane for those areas to drop. Been looking in Belle Harbor/Neponsit for when we return (2010/2011) and I was hoping this crisis would help me out. Oh well. Link to comment Share on other sites More sharing options...
ECURB Posted February 22, 2009 Share Posted February 22, 2009 Why the need for a rental unit in the house? If you are planning on relying on this income for anything other than a savings account it is a bad idea to buy something yu cannot afford comfortably without it... Link to comment Share on other sites More sharing options...
lawngnome o-line Posted February 22, 2009 Author Share Posted February 22, 2009 It's more along the lines that I would be buying a house that would be a starter home for a small family...the problem is the "family" is me and my brother, he's 26, I'm 23, and neither of us have wife/kids prospects (fingers crossed on the second part for now). The way the market is now, it is better to try to get that slightly bigger house now, and rent it out, to help offset the costs, and then convert later as needed, than buy a smaller house now, and move to a bigger house when the housing market swings back around. I'm not disagreeing with your point about buying a house you can't afford, and I can afford the house without it, but its an extra 1000+ off the mortgage would definitely help the situation. Link to comment Share on other sites More sharing options...
ECURB Posted February 23, 2009 Share Posted February 23, 2009 It's more along the lines that I would be buying a house that would be a starter home for a small family...the problem is the "family" is me and my brother, he's 26, I'm 23, and neither of us have wife/kids prospects (fingers crossed on the second part for now). The way the market is now, it is better to try to get that slightly bigger house now, and rent it out, to help offset the costs, and then convert later as needed, than buy a smaller house now, and move to a bigger house when the housing market swings back around. I'm not disagreeing with your point about buying a house you can't afford, and I can afford the house without it, but its an extra 1000+ off the mortgage would definitely help the situation. Thats the key... and make sure you have the money to invest making it nice so you can rent it for the money you want in a tough market... Link to comment Share on other sites More sharing options...
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