Would you pull the trigger and make this deal?

[xellos88330]

If you could buy a $185K home for only $1426 a month?

The home is going to be custom built. Two-Story 1982 sq ft. 4 bed, 2 1/2 bath, and den area.

The insurance and taxes are included in the monthly payment.

[ashbeeigh]

What's the interest rate? Is it adjustable? Is this 100% financing or with a down payment? Are your finances in order? (and this last part is coming thinking from my last job...not because I think you'd fall behind on the payments or anything) If you lose your job, fall behind on the payment for whatever reason, etc does the mortgage company/builder have a fallback loss mitigation type plan in place? I've heard a lot of new builders have "lose your job we'll help!" plans now.

I think that's about average for a 185,000 house with an good interest rate.

[Kori Ellis]

Where's the house? (what part of town) How long is the mortgage?

That's a good deal for the insurance/taxes to be included in that monthly amount, I believe.

[xellos88330]

What's the interest rate? Is it adjustable? Is this 100% financing or with a down payment? Are your finances in order? (and this last part is coming thinking from my last job...not because I think you'd fall behind on the payments or anything) If you lose your job, fall behind on the payment for whatever reason, etc does the mortgage company/builder have a fallback loss mitigation type plan in place? I've heard a lot of new builders have "lose your job we'll help!" plans now.

I think that's about average for a 185,000 house with an good interest rate.

It is with 100% financing no down payment. The interest rate will be a fixed 4.25%. (Interest rate is from VA and Texas Veterans guarantees)

I cannot get fired from my job because I am a disabled veteran. My money is guaranteed to me for life. I also have the VA handle my mortgage for me (basically they take out the money before they even deposit it into my account). So I do not need to worry about making the payments on time.

As far as my finances go, the mortgage will be roughly 35-40% of my household income (wife EXCLUDED in this figure).

[xellos88330]

Where's the house? (what part of town) How long is the mortgage?

That's a good deal for the insurance/taxes to be included in that monthly amount, I believe.

I am most likely going to be building it on the southside around 281 and Military. There has been a lot of recent development in the area and I am quite comfortable here. It might actually be built on the same street that I am on now. It will be a 30 year loan unfortunately :(. But the good news is I am only 29 years old. :D

www.spanishhomessa.com
The houses will look something like this. If you heard anything bad about this company please let me know as well.

[ashbeeigh]

It is with 100% financing no down payment. The interest rate will be a fixed 4.25%.

I cannot get fired from my job because I am a disabled veteran. My money is guaranteed to me for life. I also have the VA handle my mortgage for me (basically they take out the money before they even deposit it into my account). So I do not need to worry about making the payments on time.

As far as my finances go, the mortgage will be roughly 35-40% of my household income (wife included in this figure).

So it sounds like it's a VA loan...that's always a good thing. I think as long as you all stay within that 30-35% DTI you should be good. Whatever you do be honest with yourselves about your fiances. 1-2% can kill you. However, I'm sure you know that.


House wise, I think the only thing that would hold me (personally) back is the knowing that the property values could go down or that new homes are going to continue to be built. That can bring down the property value of older (even months old) homes in the long run when people can build something perfectly to fit their needs in 4-5 months as opposed to spending a few thousand dollars and some sweat equity to turn an older house into their idea of perfection.

[xellos88330]

So it sounds like it's a VA loan...that's always a good thing. I think as long as you all stay within that 30-35% DTI you should be good. Whatever you do be honest with yourselves about your fiances. 1-2% can kill you. However, I'm sure you know that.


House wise, I think the only thing that would hold me (personally) back is the knowing that the property values could go down or that new homes are going to continue to be built. That can bring down the property value of older (even months old) homes in the long run when people can build something perfectly to fit their needs in 4-5 months as opposed to spending a few thousand dollars and some sweat equity to turn an older house into their idea of perfection.

This is exactly why I am struggling with it. The impulsive part of me says "Go for it!!!", but the man who experienced all sorts of miscalculations and disappointments says, "Make sure you know what you are doing... you aren't as smart as you think you are."

I bought this current house with the plan of it being a starter home. I was single at the time and didn't want to get anything too pricey. Now that I have my own family, the thought has come into my head that maybe now is the time to move on to a home that is better suited for my family's future. The only thing that bothers me is I am not certain if it is the right time or not.

The house is pretty big for just a family of 3, but I plan on having lots of Christmas', Thanksgivings, Birthday parties and things of that sort, so I need the space to store the in-laws and other relatives if they travel for a holiday or something like that. We are very family oriented and in this house we are at, it just isn't possible to do those things.

This house will be for life if I get it. At least that is what I plan on.

[SpursFanFirst]

As far as my finances go, the mortgage will be roughly 35-40% of my household income (wife included in this figure).

This part makes me uneasy. Your money is guaranteed, but you're including your wife's income in your figures. What if she loses her pay for some reason? How would your finances look then?

When do you have to decide?

I'm a big believer in Dave Ramsey. If you have time, perhaps you'll consider checking out his website. www.daveramsey.com

He's also on the radio daily. I know he's on in SA because I regularly hear listeners from SA call in.

The idea is exciting, but I'd sure hate to see you get in over your head. I've been there, and I'm still trying to dig myself out from past mistakes.
You want your house to be a blessing, not a curse.

[MiamiHeat]

damn, must be a shitty part of town

my home is 3 bed, 3 bath, and it's worth 350k

yours is bigger and much cheaper...good deal.

[Das Texan]

whereabouts on 281 and military?

[xellos88330]

whereabouts on 281 and military?

SE Military about 2 blocks from the off/on ramp.

[xellos88330]

This part makes me uneasy. Your money is guaranteed, but you're including your wife's income in your figures. What if she loses her pay for some reason? How would your finances look then?



My bad. Meant to say EXcluded. Thanks for picking that up lol. :bang

[xellos88330]

damn, must be a shitty part of town

my home is 3 bed, 3 bath, and it's worth 350k

yours is bigger and much cheaper...good deal.

I admit that when I bought this house it wasn't exactly the best. Since then, they have built the City Base Landing, Wal Mart, (I think they built or are building an college campus around here.. but its been a while since I last heard about it) and a new hospital will be up around 2012.

The great thing is that everything I need is close by. I got the HEB, Wal Mart, Best Buy, Home Depot, Lowes, Fire Department, Elementary School, Police Substation, veterinarian for my pets, lots of restaruants including Carino's, Chili's, and some small Jalisco's and my favorite chinese place (It is that asian dude from that Manu time warner commercial from a couple years ago's place). There is also the Republic Golf Course, and a few parks and playgrounds I can take my daughter to. All within 1 mile of my current location. I also have quick access to 281 which basically is my way of getting around SA. Everything intersects with it. Within 7 minutes of the ATT Center and Downtown SA. I think it is absolutely excellent.

The neighborhood isn't bad either. Had tons of kids out trick or treating here, and the police regularly patrol and radar this area due to the proximity to the Elementary School. The area is pretty open right now as well. I am basically in the city, but don't really feel like I am in it.

[Drachen]

I admit that when I bought this house it wasn't exactly the best. Since then, they have built the City Base Landing, Wal Mart, (I think they built or are building an college campus around here.. but its been a while since I last heard about it) and a new hospital will be up around 2012.

The great thing is that everything I need is close by. I got the HEB, Wal Mart, Best Buy, Home Depot, Lowes, Fire Department, Elementary School, Police Substation, veterinarian for my pets, lots of restaruants including Carino's, Chili's, and some small Jalisco's and my favorite chinese place (It is that asian dude from that Manu time warner commercial from a couple years ago's place). There is also the Republic Golf Course, and a few parks and playgrounds I can take my daughter to. All within 1 mile of my current location. I also have quick access to 281 which basically is my way of getting around SA. Everything intersects with it. Within 7 minutes of the ATT Center and Downtown SA. I think it is absolutely excellent.

The neighborhood isn't bad either. Had tons of kids out trick or treating here, and the police regularly patrol and radar this area due to the proximity to the Elementary School. The area is pretty open right now as well. I am basically in the city, but don't really feel like I am in it.

My biggest question is how many other $185,000 houses are on your street? I (admittedly) don't know a whole lot about the area, but I looked on zillow.com and saw a bunch of 55-85k houses. Zillow isn't the end all, be all of home valuations, but it does give you a good idea. My point is, you never want to be the most valueable house on your street (or neighborhood if you are that much more valuable than the 2nd place house). The reason is, if you are the most valuable house in your neighborhood, you having a great house is good for the neighborhood property values, your house will pull the avg up, conversely, the 50 other houses on your street will pull your value down. If you are the most expensive by 2-3k not such a huge deal as long as you are within a defined range, if you are the most expensive by 10k+, you may start having problems.

[Spurstro]

Xellos,

I didn't notice it in the thread, but how many more open lots are there left to be built on in the neighborhood? I have heard of people being one of the first to move into a neighborhood and then after awhile, "lesser" houses start getting built around them because the builder can't hold onto the lot any longer.

Also, have you lived anywhere else in S.A.? (Just curious)

[Soul_Patch]

That is an old area of town. Across military from you is a very old neighborhood with homes in the 50 to 80k range im guessing. My grandparents live over there in an old house, lived there for 50+ years i think. Although it can be considered a bit seedy at times, they have never had a problem with crime. You guys are over in the new area, so it should be just as good if not better.

[ashbeeigh]

damn, must be a shitty part of town

my home is 3 bed, 3 bath, and it's worth 350k

yours is bigger and much cheaper...good deal.

I don't know if you are really from San Antonio or not. 185 is par for the course for a 1900 square foot house. It's not bad at all for a brand new house.

My question is now, that everyone has pointed out that there are 50-80,000 homes near by is this house going to really hold its value? When I had my job job I was really interested in purchasing a home on the Southwest side. There are a lot of newer areas in that area that have already been built. They originally were sold in the 120s-160s but now are selling in the 80s-90s and some have been foreclosed. If they haven't been foreclosed they're now rentals. These are also things to think of. Is that 185,000 final? Can you get it down any further considering these factors? Even though that SE Military/281 area is growing on some people (the southside has admittedly grown on me) it's going to take close to your whole mortgage, I think, to make sure that that 185 value stays. This is a true true investment in my opinion.

[fraga]

Just be sure your home is not at the higher end of the home prices in that area...other wise you'll get some unwanteds in your neighborhood that you might not have thought about...I know when I got my new pad...I made sure to move into a neighborhood where the starting price was 200k...in my experience...that tends to weed out any bad seeds and offspring... :D

[xellos88330]

There are quite a few open lots on my street. I can think of 5 just off the top of my head on my street alone. I know that the biggest house on my street is at the 220k range because I was looking at buying it when I decided to buy a house. Decided it was too big and pricey for me at the time. Recently there have been 6 new houses built in my neighborhood averaging 170k, all about 1 block away.

Hence my dilemma.

[xellos88330]

Xellos,

I didn't notice it in the thread, but how many more open lots are there left to be built on in the neighborhood? I have heard of people being one of the first to move into a neighborhood and then after awhile, "lesser" houses start getting built around them because the builder can't hold onto the lot any longer.

Also, have you lived anywhere else in S.A.? (Just curious)

LOL!!! I used to live close to I-10 and New Braunfels. Neighborhood was kinda scary.

[SpursFanFirst]

There are quite a few open lots on my street. I can think of 5 just off the top of my head on my street alone. I know that the biggest house on my street is at the 220k range because I was looking at buying it when I decided to buy a house. Decided it was too big and pricey for me at the time. Recently there have been 6 new houses built in my neighborhood averaging 170k, all about 1 block away.

Hence my dilemma.

Have you looked at other areas of SA, or do you have your heart set on this particular house?
Given the stats of the house, it sounds like a good deal. But at this time, there are good deals to be had all over the place.
Perhaps you can find a comparable home in a better, unquestionable area that you'll love just as much.
I'm only throwing that out there given the other comments in this thread. I haven't lived in SA since I was a teenager, so I don't have my finger on the pulse of SA real estate like others.

[I. Hustle]

I used to live on the south side but I hated a lot of the ghetto ass people. I had to get rid of the house because of my divorce but i was kind of glad I got out of there. I lived a few blocks from Highland H.S. and those punks would go down the neighborhood with paintball guns at the end of every school year and open fire on houses and cars.

[Spurstro]

LOL!!! I used to live close to I-10 and New Braunfels. Neighborhood was kinda scary.

Have you seen the punk ass kids hanging out at Pickwell Park?

Personally, I don't think there's that much of a difference from I10/NB and 281/Military to purchase a house at that price. I think you'll be able to buy a little older house for the same price somewhere else around town where the neighborhood is already established.

[Drachen]

Have you seen the punk ass kids hanging out at Pickwell Park?

Personally, I don't think there's that much of a difference from I10/NB and 281/Military to purchase a house at that price. I think you'll be able to buy a little older house for the same price somewhere else around town where the neighborhood is already established.

Good point, Last year in April, I bought my house. It is 30 years old, corner lot, 4 bedroom, 2 1/2 bath, a huuuuge yard, and 2280 sq ft . . . for 137k, and this is over near bandera and eckhert. Plus, all of our trees are fully grown (one of the main reasons we didnt want a new house, that and the lack of creativity in today's floorplans).

[xellos88330]

Have you seen the punk ass kids hanging out at Pickwell Park?

Personally, I don't think there's that much of a difference from I10/NB and 281/Military to purchase a house at that price. I think you'll be able to buy a little older house for the same price somewhere else around town where the neighborhood is already established.

After living at i-10 and NB, there is a HUGE difference between the people here. Besides, you will have punk ass kids wherever you live, that is a given. I for one really like this area. It has everything I need in a close proximity.

[CosmicCowboy]

It sounds like you have convinced yourself. Should be fine for you as long as you intend living there for many years. You never REALLY know if you made the right financial decision on a house until it is time to sell it. Location is a real driving force on real estate prices. The house is going to cost the same to build whether you build it on the South side or the North side. The question is whether it will hold it's value at 37/SW Military if the neighborhoods around it go to shit. IMHO It's a little more financial risk than an established north side location.

[SpursFanFirst]

It sounds like you have convinced yourself. Should be fine for you as long as you intend living there for many years. You never REALLY know if you made the right financial decision on a house until it is time to sell it. Location is a real driving force on real estate prices. The house is going to cost the same to build whether you build it on the South side or the North side. The question is whether it will hold it's value at 37/SW Military if the neighborhoods around it go to shit. IMHO It's a little more financial risk than an established north side location.


I agree with everything Cosmic said.

[Spurstro]

After living at i-10 and NB, there is a HUGE difference between the people here. Besides, you will have punk ass kids wherever you live, that is a given. I for one really like this area. It has everything I need in a close proximity.


True....there are punks everywhere. OK, since there's a HUGE difference in people between those two areas, do you think there would be a HUGE difference between people at 281/military and somewhere else? That's why I was asking if you lived anywhere else.

Seems like your mind is made up though. With nothing down and at that rate, I would go for it. Although with lots still available, I would hold out a little longer.

[Drachen]

It sounds like you have convinced yourself. Should be fine for you as long as you intend living there for many years. You never REALLY know if you made the right financial decision on a house until it is time to sell it. Location is a real driving force on real estate prices. The house is going to cost the same to build whether you build it on the South side or the North side. The question is whether it will hold it's value at 37/SW Military if the neighborhoods around it go to shit. IMHO It's a little more financial risk than an established north side location.

The bolded statement can be tested, you are thinking about selling your house in the same area. How much did you pay for it, how much could you sell it for? Whatever you decide, good luck!

[RuffnReadyOzStyle]

Xellos - make sure you do two things from the start: get the solar orientation right (you want the long-edge south-facing to maximise passive solar gain in winter), and make sure you heavily insulate everything during construction (and stay away from things like downlights which kill your insulation and are a fire hazard). If you can, go for solar hot water heating (or gas instant) and natural gas heating. Do these things properly and you will live more comfortably while saving 10s of thousands of dollars over the life of the house.

Good luck.

[xellos88330]

Thank all of you for your input. I think I am going to wait and see what happens. Gonna make the realtors sweat a little bit before I make a final decision. I am thinking that perhaps instead I should make a few more modifications to this house and sell it for more later.

[xellos88330]

Bump...

Ok, I got the monthly payment down to $1230 now after making them sweat a bit. Would you all do this now, or make 'em wait again?

[tlongII]

Bump...

Ok, I got the monthly payment down to $1230 now after making them sweat a bit. Would you all do this now, or make 'em wait again?

How did you get the monthly down? Did they lower the asking price?

[Wild Cobra]

Too many unknowns. However, what ever contract you sign, make sure you don't actually have any liability to pay until after the place is built and inspected.

I did a quick calculation. Looks like an approximate 15 year loan at 4.5% if that's and insurance were not included, so I assume it's a 20 year loan?

Seems like a decent deal as long as you can pay that and utilities, and periodic maintenance. Just make sure you don't expose your ass in the deal. Pay a lawyer to protect your position.

[CosmicCowboy]

bottom line?

NO

Not at I-37 and SW Military.

It might be the neighborhood you are used to but as an investment IMHO it's clearly a NO.

[TDMVPDPOY]

hey if you need a builder, i know a guy that can do it, yes he can, bob the builder...google him

[CubanMustGo]

bottom line?

NO

Not at I-37 and SW Military.

It might be the neighborhood you are used to but as an investment IMHO it's clearly a NO.

I have to agree, and I grew up not too far from there, went to Highlands, and ever since that whole part of town has done nothing but slide downhill. Yes, there is one nice new housing area SE of 37/SE Military but the rest of the area is shit, housing built in the 50s that has not been kept up. There is gang activity and grafitti all over the place. My mom still lives there and thank goodness my 6'6" brother is also there because he helps keep the riff-raff at bay.

Over the last 30 years I have seen plenty of nice new housing areas go in on the SE side of town and every single one has gone to shit within 5-10 years. There's not enough critical mass to keep it going, not when it's surrounded by thousands of older housing units that largely aren't being kept up. The initial buyers sell within that 5-10 year timeframe, housing values go down due to the surrounding area dragging it down, and it spirals into the toilet from there.

For that kind of money you can get a decent place in better established parts of town. Don't let your heart override what your brain is telling you.

[slacker77]

hey xellos,the area you're talking about wouldn't happen to be next to brookside subdivision?

[xellos88330]

hey xellos,the area you're talking about wouldn't happen to be next to brookside subdivision?

I think it is between Brookside and Monte Viejo.

EDIT: My subdivision is Highland Forest.

[xellos88330]

I have to agree, and I grew up not too far from there, went to Highlands, and ever since that whole part of town has done nothing but slide downhill. Yes, there is one nice new housing area SE of 37/SE Military but the rest of the area is shit, housing built in the 50s that has not been kept up. There is gang activity and grafitti all over the place. My mom still lives there and thank goodness my 6'6" brother is also there because he helps keep the riff-raff at bay.

Over the last 30 years I have seen plenty of nice new housing areas go in on the SE side of town and every single one has gone to shit within 5-10 years. There's not enough critical mass to keep it going, not when it's surrounded by thousands of older housing units that largely aren't being kept up. The initial buyers sell within that 5-10 year timeframe, housing values go down due to the surrounding area dragging it down, and it spirals into the toilet from there.


For that kind of money you can get a decent place in better established parts of town. Don't let your heart override what your brain is telling you.


Thanks for the advice!

I guess I don't really notice it much because I am used to seeing that type of stuff all over the place.

[Nbadan]

Don't buy a home as an investment, buy it because you need more living space and you can afford it.....you can certainly wait till one of your neighbors in the 170+ homes newly built in your area decides to move and get in cheaper than 180+k but is that money going to be worth the wait and how much work and improvements is that home going to need?

Buying a home is a personal decision because none of us can specifically say what will happen in the future, but your getting in at a good interest rate, and about the only drawback I can see is putting more money down to reduce your monthly obiligation...If you can't afford to do that now, then maybe waiting wouldn't be such a bad choice..

....however,the cost of building will only increase in the future, that I guarantee...

[TDMVPDPOY]

Don't buy a home as an investment, buy it because you need more living space and you can afford it.....you can certainly wait till one of your neighbors in the 170+ homes newly built in your area decides to move and get in cheaper than 180+k but is that money going to be worth the wait and how much work and improvements is that home going to need?

Buying a home is a personal decision because none of us can specifically say what will happen in the future, but your getting in at a good interest rate, and about the only drawback I can see is putting more money down to reduce your monthly obiligation...If you can't afford to do that now, then maybe waiting wouldn't be such a bad choice..

....however,the cost of building will only increase in the future, that I guarantee...

the shit his buying as an investment, how much rent can he get out of it per wk????