House Hunting in WNY

[Bob Hubbard]

So, we've put the Texas move on hold and are looking at houses in WNY.
Short version: Prices are low, and we've got a better chance of getting something here now, rather than move there and have to wait to get established to qualify. So, game plan is get a starter place we can work with, use it to build our credit and track record a bit, then in a few years look at moving again. Buffalo winters are starting to kick my *** so heading South is in the plans for when we can swing it.

So, looking for 3 bedrooms, 2 bath, 2-3+ car garages. Average price range is about $65-75k. Taxes are the bit issue. In Buffalo it's about $1,200 a year (city, county and school tax), while the subburbs are higher. Found a really sweet place for $72k, had $7k in taxes. Monthly payments would have been $1,100, $600 taxes. So, trying to stay close to the border with the burbs, in the better neighborhoods. Keeps the taxes and crime rate low letting us get a little more house for the money.

If all goes well, we'll be moving by the spring and I'll be renovating the garage into a full time photo studio.
(Plus the web stuff, of course).

 

[Carol]

I feel ya on the taxes. NH has no state income tax or state sales tax so the cities depend heavily on the property owners for funding.

I get cut both ways because I work down in Mass. now. So I have the higher property taxes of a NH resident, yet I have to also pay Mass. income tax at the same rate as the Mass. residents. Phooey, I say!

 

[Bob Hubbard]

Move to Buffalo.

 

[Carol]

Move to Buffalo.

Move back, you mean

 

[Bob Hubbard]

Well property's cheep, and you can pick my brain on things over coffee rather than the phone which never rang last night I might add *pout* *pout*

 

[Carol]

Well property's cheep, and you can pick my brain on things over coffee rather than the phone which never rang last night I might add *pout* *pout*

Oh yeah! Plus I grew up with the snow so it doesn't scare me....uhhh.....they have DO condos someplace where snow removal is included, right? right?

Bloody hell...I'm sorry about the call. Let me give ya a call tomorrow when the tryptophan wears off if thats OK

 

[Monroe]

$65k-$72k? Holy shitballs! Average around here is $400k Cdn. Last I checked Cdn was about par with Usd. Tax is around $4k. Are you sure it's a good idea buying anything in Buffalo if you're not there for the long haul?

 

[Sukerkin]

$75 thousand dollars for a 3-bedroom house with a 2-car garage?! Are you kidding me?

Not sure what the exchange rate is presently so I'll just do the rough 2-1 thing (dollars to pounds). Our house was (past tense because of the crash) 'worth' $360 thousand. It's 3 bed semi-detached and the only reaon why it has a one car garage is because I had one built. I'll be paying the mortgage until I retire, unless I die young.

It really is another world over there across the water isn't it?

 

[jks9199]

A lot depends on where you are. I've got a townhouse that's currently worth about $120K. 3 Bedrooms, 1 bath (I will NEVER settle for less than 1.5 baths in a house again!), on what I'll describe as the "near outer limits" of a major metropolitan area. But, places comparable to a few Bob's looking at where I work are going for just over $1 million. And that's essentially with tearing down the old place and building a new house on it...

 

[Bob Hubbard]

3 examples
http://www.realtor.com/realestatean...ektowaga_NY_14206_M45241-89435?ex=NY527977661
http://www.realtor.com/realestatean..._Buffalo_NY_14220_M42303-67075?ex=NY529592493
http://www.realtor.com/realestatean...ektowaga_NY_14227_M42643-34019?ex=NY532489877

Pulled those at random from about 20 we've got on the list to consider.

Interest rate right now is about 3.8-4%

Now, just to put things in a bit of perspective, -Buffalo- is pretty cheap. The 1st ring of subburbs prices go up a bit, taxes double-quadruple.
Next ring out from there, taxes double again, prices go up more as well.

A house in Buffalo might be $65k. The next town over, $120k. Same house dropped into San Fransisco, $900k. (Yes, I've done comparables)

There are places in Buffalo you can buy a 2 family house for $5,000. That's five thousand.
You of course need to be a ninja, weapons master, and gold medal track star to survive in that part of town.

As to long term investment terms....in Buffalo itself, I don't consider it so much an investment in the sense that I'll be able to sell it at a profit, as a way to build up credit and net-worth. A $60k house today will sell for $65-70k in 10 years. So, factor in inflation, etc, you lose a little money.
But.
In 10 years, you'll have built about $16,000 equity this way. (assuming $524/mo mortgage on a $60k property with $2k in taxes)
If I rent for the same 10 years, I'll have spent $72,000 (assuming $600/mo rent)
In 30 years, it's either a $60k asset (that cost you $180k) vs $216k spent in rent. Rent of course will go up over the next 30 years.

 

[Monroe]

I think I'd prefer to pay rent and put aside the difference in cost of owning a house toward buying stock instead. When I wasn't planning on staying in one place, renting and putting aside money worked for me.