Reply With Quotehttp://www.realtor.com/realestateand...112542924?mp=1Originally Posted by ryan
Is there any neighborhood, preferably in the COB, suburbs not excluded, where someone could purchase a residence for under $80k in a 'walkable' neighborhood?
Elmwood/Allentown/Hertel would all be great except for the price tag associated.
I'm stuck between renting in what I would consider a 'preferred' neighborhood, and buying somewhere more affordable however less convenient.
Any/all advice would be appreciated.
Thanks in advance.
http://www.realtor.com/realestateand...112542924?mp=1
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Check out the city of tonawanda. I love it there.
There's currently 29 active single family listings and 10 duplexes priced under $80,000.
Most of all I like bulldozers and dirt
Could you recommend any particular streets? I looked at a couple houses there a year or so ago in the $50k range and they were dumps. I do love the close proximity to the water and the bike path connecting to Buffalo.
I have friends who live on Kohler in the COT. That's a modest neighborhood that's walkable to the river as well as downtown.
I think that $50,000 is probably going to get you a dump unless you buy in a high-crime area. Even in Jamestown, that's a low-end price. You might consider buying a structurally sound house that needs work and having it remodelled/refurbished before you move in. I think there are programs through HUD that you can do that with. Before you do this, though, you need to have someone who knows houses go over all the flaws and give you estimates on the costs of repairs/remodels.
Have you considered purchasing a double? There are nice ones in both North and South Buffalo, and they generally cost less than singles because lots of people don't want to bother with tenants. Most apartments have 6 rooms (LR/DR/KIT/3 BRs), usually with a driveway and a garage. I'm most familiar with the streets off Hertel, but there are some on Amherst Street between Wegmans (west of Elmwood) and Lincoln Parkway as well as on the blocks along/off Elmwood between McKinley HS and Amherst Street.
BTW, I didn't mean to put you off about the Hertel area between Elmwood and Military in my post about Rebecca Park. The neighborhood is safe enough, but I think that Rebecca Park is overpriced for that area, and the neighborhood isn't as good as it was. It's definitely better than the West Side west of Richmond or south of Porter. St Florian Street off of Hertel is still a nice block as are Sunset, Page, and some of the others. Sunnyside and Tuxedo have singles and doubles. East of Elmwood, the neighborhood is better, but you will pay more there
I think the old axiom, "buy the worst house in the best neighborhood" is probably a wise one.
Are you prequalified or better preapproved? Why waste time?
Get organised. Define your needs and goals. Write it down and set objectives.
I have considered a double, however my bank requires 20% down for a double whereas they only need 5% down for a single family detached or a townhouse. All things considered, I have about enough in savings for 10% down depending on the final purchase price.
Zanna: Yes I have a preapproval through my bank.
My dilemma is this: I can rush now and hopefully find something before the November 30th deadline and get the $8,000 tax credit, or I can be patient and hope that they extend/increase it for the next year. Also, are the interest rates not at a low right now? If my math is correct, a 1% difference correlates to about $22k over the lifetime of a 30 year $100k mortgage.
Decisions, decisions.
I probably won't need place to live until about May, but I'm just trying to get things set up before I move back.
http://www.realtor.com/realestateand...216_1112666064
I walk the neighborhood this house is in all the time.
1 Corinthians 13:1 "If I speak in the languages of men and of angels, but have not love, I am only a resounding gong or a clanging cymbal."
You would have to close by November 30th, not just have a contract in hand, so basically unless you were paying cash, it isn't going to happen.
Congress is trying to push it through to extend it, but it has not been finalized - do not rush into buying a home ......... chances are you will be sorry.
and you are correct, mortgage rates are very low right now - that could change within a minute - not likely, but just the same.
extendthecredit
Ryan, shop another bank if you are interested in a duplex. FHA requires 3-5% down payment on an owner-occupied duplex, and you should be able to use the prospective market rent of the additional unit to offset your debt-to-income ratio. They typically offset by 75% of the rental income. For example, rental income of $500 per month would be calculated at $375 per month income.
Without knowing your financial situation it's hard to judge, but you sound like a prime candidate for FHA financing. If your lender isn't offering it, find another! Has your lender provided a good-faith closing statement disclosing all origination and discount fees? Don't pay a dime on either if you can help it. Unless you are buying a property that requires repair there is no reason NOT to use FHA. Your closing costs will be less, but your APR will be around 0.25% higher (around 4.88%).
Colleen is right. There's no way in hell you will close by 11/30/09 unless you are paying cash. Forget about the $8k program. You would have needed a house under contract by 9/31/2009 for that to work. Welcome to Yew Nork.
It's a lifestyle decision to buy a duplex, but keep in mind the tax savings you'll receive every year. All repairs and maintenance can be deducted on your tax return if you do it right. Plus, you'll be able to depreciate the square footage of the rental over 27.5 years. That's a $1400+ deduction on your tax return for an 80k duplex. Talk to your accountant, not some crackpot at H&R Block.
Finally, send a private message to Colleen (screen name: caugust) if you need a competent agent to help you with this. It sounds like you haven't received the best advice to date in terms of financing. Get with a good buyer's agent who has been in the industry for a while. It will save you thousands of dollars.
Most of all I like bulldozers and dirt
That's a pretty nice house in a neighborhood that's much nicer and more desirable than the neighborhood around Rebecca Park.
Finally some facts and not just rumors. Don't know how many times I've been asked if the tax credit is going to be extended.
Stay tuned.
Go sit down with a mortgage broker. A broker can check multiple lenders for you. They can also explain in depth the different financing options like FHA.
You should definitely be able to get a double with less than 20% down.
Forget about the $8000 credit unless you're paying cash. Maybe they will extend it maybe they won't.
An area I was thinking about that is walkable is South Buffalo off of Abbott/McKinley near Mercy Hospital. You can walk to a coffee shop, bars, pizzerias, restaurants and of course Cazenovia Park.
Generally, you will pay a higher interest rate with a broker than with a bank. When I bought my current house, six plus years ago, I went to a broker first, and was very discouraged. Then I talked to my realtor and she steered me to HSBC. Their rate was significantly less (like 2 percentage points!) than the broker.
BTW, HSBC doesn't sell your mortgage like many banks do, which is another thing to consider. The mortgage on my house in Albany was sold at least three times during the nine years that I owned it, and every time, I had problems with the escrow. One time they sent my homeowner's insurance premium to some insurance agency in Petaluma, California -- and I couldn't even talk to anybody about this because all the records hadn't been transferred (or that was their story!).
If I'm going to go with a local bank, then I want the servicing of my mortgage to be local, too, not sold off to somebody in Timbuktu.
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