House or apartment?

[elf]

Re: House or apartment?

Privacy.
Pets.
Vegetable garden.
Flowers.
Trees.
Quiet.
Hardwood floors.
Big windows.
Sunlight.
Vista.
Fireplace.
Enough bathrooms.
Space.

House on land.

[rbgarr]

Re: House or apartment?

One of my dearest friends whose marriage I long admired found out her husband had been cheating on her for more than a decade with multiple women. He and she each had high-powered careers and spent a good deal of time in different parts of the globe. She was provost of a nationally ranked university, he was sequentially CEO of various agricultural corporations worldwide. They'd both earned PhDs together and it looked from the outside that they were about as good a dual-career couple as could be imagined. Great Christmas letters detailing fun family get-togethers, wonderfully accomplished children, etc.

She found out he'd been cheating when she had to have an STD-instigated hysterectomy.

She got the house they'd raised their children in, he got the retirement home in California. She sold the house, got an apartment in a Chicago high rise overlooking Lake Michigan and hasn't looked back. She was sad to sell the house but the children were grown and flown and she didn't need it any more. She's thrilled with the convenience and lack of worry about the apartment. She travels the world with friends and her children and has a great guy for a companion now. Life throws curves yet she batted it out of the park..

[skuthorp]

Re: House or apartment?

There is a big shortage of both here, and young and old people can afford neither.

And the other problem of badly built code violation apartments bought off the plan. They leak and are badly ventilated, hence mould. Some blocks have had to be evacuated because of fear of collapse. The builders start a company to build, and then close it down. There is no one to sue. Some knees need to be badly busted with a sledge.

[Tom from Rubicon]

Re: House or apartment?

I left the parental nest, early twenties solo renting a house to I assume my independence. Liberty at a cost. Moved back with Mom and Dad paying similar room and board. Gave me time to be with my aging parents.

In 1983 Reganomics up ended absentee landlord tax deductions. Well somebody had to pay. Reagan clipped some rich so of us poor with capital could buy. We did.
1.5 millon 36 unit apartment complex, and the sellers contractually paid for all physical upgrades.
Being a landlord has it's challenges. But in 1987, a lovely lady rented from us. She was high on credit score. married twice and single at present. She was the ideal tenant, and with her permission. a show case of the single unit apts.
Sold out my interest to buy a house and paid Ronny's capital gains tax of $48,000.
We are now on home #2.
There is I think to rent liberation of responsibility. Found that out quickly as a landlord

[skuthorp]

Re: House or apartment?

What he said…….

[Garret]

Re: House or apartment?

There are few 20-somethings (or even 30-somethings) who can even consider owning a house - unless M&D buy it for them. Banks will no longer lend on a fixer-upper or based on personal knowledge - they go strictly by the numbers now. Around here, 300K will buy a condo or maybe a house in tough shape if you are willing to drive 50 miles to work - 400K+ to get a house closer to where the jobs are. How many young couples can handle a 3K/month mortgage?

[elf]

Re: House or apartment?

One of my dearest friends whose marriage I long admired found out her husband had been cheating on her for more than a decade with multiple women. He and she each had high-powered careers and spent a good deal of time in different parts of the globe. She was provost of a nationally ranked university, he was sequentially CEO of various agricultural corporations worldwide. They'd both earned PhDs together and it looked from the outside that they were about as good a dual-career couple as could be imagined. Great Christmas letters detailing fun family get-togethers, wonderfully accomplished children, etc.

She found out he'd been cheating when she had to have an STD-instigated hysterectomy.

She got the house they'd raised their children in, he got the retirement home in California. She sold the house, got an apartment in a Chicago high rise overlooking Lake Michigan and hasn't looked back. She was sad to sell the house but the children were grown and flown and she didn't need it any more. She's thrilled with the convenience and lack of worry about the apartment. She travels the world with friends and her children and has a great guy for a companion now. Life throws curves yet she batted it out of the park..

Nice to have money. High powered jobs are not available to young people just out of high school, or to elders whose career choices were just barely life sustaining. She was lucky the kids were flown. She would have wanted to keep the house if they hadn't been.

This story is one of luck and wealth. He was visiting prostitutes and they both were big earners. Few are in that position.

[WI-Tom]

Re: House or apartment?

There are few 20-somethings (or even 30-somethings) who can even consider owning a house - unless M&D buy it for them. Banks will no longer lend on a fixer-upper or based on personal knowledge - they go strictly by the numbers now. Around here, 300K will buy a condo or maybe a house in tough shape if you are willing to drive 50 miles to work - 400K+ to get a house closer to where the jobs are. How many young couples can handle a 3K/month mortgage?

On the other hand, that's not true everywhere. Twenty years ago, we bought our house--a duplex that allowed us to live in half and rent the other--for just over $70,000; rent payed 60%+ of our house payment, which was $800/month on a 15-year mortgage. Very much a fixer-upper, yet we put less than 10% down to buy, and borrowed the rest from a local credit union. There are places to live--plenty of them--where local housing prices are not out of reach on locally available incomes, even now. Though house prices have gone up considerably.

Tom

[Jack Loudon]

Re: House or apartment?

Fixer-uppers are still relatively inexpensive because most buyers (understandably) want a 'move-in ready' house. For those are willing to develop the skills and spend the time, a house may be within their means. It does mean spending one's spare money and time working on the house instead of going on ski vacations, as it's not feasible to both make house payments and hire professionals to do repairs and improvements. When I was young I mostly learned from how-to books but now there are youtube videos on everything.

Every house I've bought has needed work, which I mostly did myself. The one I'm in now wouldn't qualify for a conventional mortgage so I had to install gutters, fascia, paint the entire exterior, and do other things before the loan was granted. A risk but it paid off.

Also buy in bad but improving neighborhoods. Houses are still available to those willing to work hard and take minor risks.

[Garret]

Re: House or apartment?

Fixer-uppers are still relatively inexpensive because most buyers (understandably) want a 'move-in ready' house. For those are willing to develop the skills and spend the time, a house may be within their means. It does mean spending one's spare money and time working on the house instead of going on ski vacations, as it's not feasible to both make house payments and hire professionals to do repairs and improvements. When I was young I mostly learned from how-to books but now there are youtube videos on everything.

Every house I've bought has needed work, which I mostly did myself. The one I'm in now wouldn't qualify for a conventional mortgage so I had to install gutters, fascia, paint the entire exterior, and do other things before the loan was granted. A risk but it paid off.

Also buy in bad but improving neighborhoods. Houses are still available to those willing to work hard and take minor risks.

The problem is getting a mortgage, not so much doing the work. Around here the banks are pickier than the buyers.

[WI-Tom]

Re: House or apartment?

The problem is getting a mortgage, not so much doing the work. Around here the banks are pickier than the buyers.

Credit unions. Institutions that prioritize community roots.

That said, we tried for a grant program to help pay for repairs once. We were perfect candidates. We proposed new windows, then new stucco. The program couldn't loan enough to do both at once. Fine. Start with the windows. Nope. Can't give you anything unless you fix it all. OK, then half that amount for interior restoration so we can charge more rent and save enough for windows (33 large windows in our house!) and stucco later.

Nope. Can't loan you anything unless you can fix everything at once.

A pity. Our house would have been really beautiful with new stucco and new windows. Italianate style, built 1884, expanded and converted to a duplex pre-electricty (both kitchens had built-in ice boxes). Really nice scrolly woodwork trim, funky cool swinging windows, maple floors, arched doorways, etc.

We never did anything but put a new roof one. Couldn't afford it. (Or rather, chose to spend our money on other things once the structural repairs were mostly complete so it wouldn't fall into complete ruin).

Tom

[Jack Loudon]

Re: House or apartment?

The problem is getting a mortgage, not so much doing the work. Around here the banks are pickier than the buyers.

Fair point, but a $300,000 fixer would be easier to qualify for than a $600,000 already-fixed house. This is provided the fixer-upper will finance at all, but if it won't finance the seller must find a cash buyer (at a substantial discount, like the We-Buy-Ugly-Houses flippers) or provide owner financing. I still think there are opportunities for the creative and resourceful first-time buyers but it's probably getting more difficult.

And I do get your point about picky lenders. When I got divorced my ex got our house, and after living on the boat for 2 years I wanted to buy a cheap house for myself. I did find a house and even with my good credit and good job it was a daunting ordeal, with me providing reams of paperwork on IRS returns, cancelled checks, receipts on everything, seemingly going back to the beginning of time.

[Ted Hoppe]

Re: House or apartment?

I am now currently houseless. Signed over the title this morning. for the next few months - we will urban apartment dwellers with a partial view of the Oakland bridge, San Francisco Skyline and the Golden Gate Bridge.

The dog seems unconcerned. I on the other hand will be getting a drink.

EB727FC4-D8EB-482E-8928-D2ACAF1B42B5.jpg

[WI-Tom]

Re: House or apartment?

Congratulations on the sale, Ted. It's a stressful thing to sell up and move on. Nice to have it (kind of) behind you, eh?

Tom

[rbgarr]

Re: House or apartment?

She would have wanted to keep the house if they hadn't been....they both were big earners. Few are in that position.

Not really. She much prefers the apartment as do her children and grandchildren when visiting. None of them wanted the house anymore. Too many disturbing memories of his betrayals while they'd all lived there. Regarding earnings, he didn't earn what she did and she pays him 'alimony' due to Illinois rules for divorces and community property.