The good news is, the property owner is renovating the apartments where I live. They do need it badly and the revamped apartments (I saw the model last night) are quite nice.

The bad news is, when my lease is up I've got to move out so they can renovate my apartment. I can then either move into an already-renovated apartment, or put my stuff in storage and live somewhere else for a month, then move back into my current apartment after it's renovated. Or of course I could move somewhere else entirely.

I was really hoping not to move again until I was ready to buy a place. I especially was not planning to pay several hundred dollars and endure two moves to end up in the same place I already live in, and I definitely was not planning for my rent to go up $200 a month (gotta pay for the renovations, you see).

Still thinking about what to do. I like where I live and I'm sure I'd like it even better after the renovation. And it's not like I can't afford the extra money, and it'd probably be worth it too. But we're inching toward house payment territory here. For a couple hundred more a month, I could have a condo.

There were a few people at the renovation open house last night who are on month-to-month leases. Those people are basically boned because they are subject to being immediately kicked out so their apartment can be renovated. At least my lease lasts for more than another year, so I don't have to make a decision right away. Still, if I decide to stay, it might be worthwhile for me to volunteer to move early to get a better choice of renovated apartments.

Re: good news bad news scenario

There are 4 messages in this thread, displayed in the order they were posted.

john 3/29/2006 2:57:02 PM Pacific

you should look into buying something sooner rather than later. you'd be surprised by the diversity of available mortgage options, especially some that don't require much if any down payment. if you don't belong to a credit union already, look into BECU, they are at least as full service as any bank and they don't charge for most things that you would look for in a bank/s&l. i don't think that real estate prices will keep skyrocking up as they have been doing, but i don't think we'll see a big downturn either, more of a slow levelling off for the areas that haven't appreciated so much lately...

Jerry Kindall

3/31/2006 7:37:35 PM Pacific

Trouble is, getting a place of my own would require a step down in quality, or else would result in a significant step up in monthly cost (probably at least $500 a month) over what I'll be paying in rent after they renovate here, when you factor in PMI (necessary if I don't put 20% down), the higher rate on an 80/20 mortgage, property tax, and association fees (assuming I go condo). That's assuming recently remodeled, 15 minute commute max from downtown Bellevue, with a water view. I've looked. I'm going to be trying to put together a down payment in the next year but I might have to take a loan from my 401(k) to do it. Even $25,000-$30,000 would be just 10% of the price bracket I'd be looking at. Still, it's better than nothing down, I guess.

john	4/1/2006 9:04:55 AM Pacific

BECU has a 10%/no PMI program which helps a bit. I totally understand the apparent gulf in quality between renting and owning, especially in the Seattle area where prices are still kind of mysteriously high. Since you seem like you'd like to find somewhere to nest for a while, the general break even scenarios are between 2 and 3 years between renting and owning. I just have (unfortunately) never been in the position to pull the trigger on a purchase and have looked back with regret at all the opportunities that might have been there. Personally, I feel that there is much more value and appreciation potential in single family housing instead of condos where you always have to deal with the association and the maintenance fees, but there are of course exceptions to that rule as well. Since you are going to be looking in this overheated market (instead of Hoquiam where TYD purchased), your interest and RE taxes wiill be tax deductible so will be a little less painful. The rates on a 90/10/noPMI 5 Year ARM are 6%, which is a little higher than the really low rates that have been around for a couple of years, but is pretty low historically. Anyway, just thought I'd type my 2 cents in. Hope you doing well otherwise.

Jerry Kindall

4/1/2006 9:30:14 AM Pacific

Hmmmmm. I'll have to look at the BECU deal, then. I can probably come up with 10% down. An ARM is probably a bad idea for me though, and my credit won't be 100% blemish-free for another two years. That's when I was planning to buy -- if house prices don't go up too much, I'll be in a much better position then. Better credit score, thus a lower interest rate, not to mention a bigger down payment. It's just that this renovation is forcing my hand early.
I agree that single-family housing will appreciate more over time, but it also comes with many "opportunities" to spend time and money on upkeep. If I was planning on getting married and having a family, the detached dwelling would probably appeal more, I wouldn't want to raise kids without a yard to play in if I could at all avoid it, but I figure as I approach 40, the likelihood of that trends toward zero anyway. So, you know. Snakes on a plane.
Other than the dilemma over housing, which I have plenty of time to figure out, I'm doing all right, though.

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Re: good news bad news scenario