Chronic Car Buyers Anonymous (Archived)

nyccarguy

Wow! a 5 bedroom, 4 bath, 3200 square foot, 14 year old ranch for $500K. What would that go for in my neighborhood?

fintail

That would be 1MM+ in my zipcode, 15 miles north (an hour commute here), maybe 600K or so, 15 miles south it might cost the same 500K, but with even worse traffic.

Michaell

@qbrozen - I think it's the angle of the picture that is distorting the garage. It is a full 3 car setup

@stickguy - yeah, I'm not unhappy with the property tax situation here in CO.

@nyccarguy - the house is way overpriced - I think they want to get their money back on the updates they've made. True price is probably less than $450K.

Our house, which is 2700 square feet, ranch with finished basement, 4 bed 3 bath, would probably sell for right around $400K

28firefighter

That house in my neighborhood, like @fintail, is $1MM+; I'm so depressed.

js06gv

Chronic House Buyers Anonymous??

We've been looking too. The North Dallas area where we live has been exploding with Toyota building their US HQ 7 miles from where I live, plus Liberty Mutual constructing a 5K employee office in the same area and the new Dallas Cowboys practice facility that went in last year. In many cases, the houses are going same day and for over asking price, which used to be unheard of outside of places like California.

The housing dollar goes a lot further in Texas than it does in most other states, but in a hot market like here that has narrowed. The upside for me is the 4,000 sf house we bought for $400K in 2010 will bring $560K now. With the daughter in college, I'm in the same boat as many of you in that there are only 2 people living in the house. We could easily get by with a much smaller house, but the problem we're having is that the things we "want" to keep the same like a huge media room and 3+ car garage, as well as the kind of house the market where we want to live dictates, has us looking at houses that are at least as large as ours if not a little bigger.

We are about 75% that we'll stay put, but are having fun looking. Cashing in our our house and then spending that much or 100K more doesn't make a whole lot of sense, but there are some other factors too - some things we aren't thrilled with in our current neighborhood (although our house is very nice) and there being some value in moving about 10 miles north of us, where deals can still be made for a similar house on more land in what is becoming a more desirable area. Those days are coming to an end though as there is a huge shift of people going there. The number of houses flying off the market for $500-1 million is amazing.

ab348

Speaking of moving, my best friend recently dropped a bit of a bombshell that he and his wife sold their beautiful mid-century split level in a great part of town that they have owned for 22 years and are moving about 90 minutes away from here.

Part of this is no surprise, though the timing is. They had bought the place they are moving to which is deep in the country nearly 10 years ago - a century-old farmhouse - and have been renovating it ever since as they have had time. His wife is a fanatic for old things of the Little House on the Prairie era and the place has been renovated to that style with Victorian antiques and dark colors. I hate it and don't like it at all but I don't have to live there.

Over the years they have renovated every room in their city house at least once and just recently completed adding a third bath, renovating the second bath/laundry, and doing a complete refresh of everything. All the mechanicals and insulation have been updated over the years too. He has quite literally worked like a dog on the place forever in addition to completing one full car restoration and another one he did earlier in life that that he has since maintained at a high level. The house is literally move-in perfect. They hadn't even listed it but someone was looking at another place in their neighborhood that was for sale, came to their door to inquire, and presto, perfect timing. Didn't even have to pay a sales commission.

Her parents live not too far away from the country place. Both are in their 80s and facing health problems so she feels she needs to be with them and care for them until the end. That has accelerated their timeline. My buddy has his own health challenges which makes me wonder why he is moving away from here where all the hospitals and doctors are, but whatever. He is 62, she is 42, and I think that has something to do with him agreeing to do this. Their 19 y-o son has been evicted to his own apartment and as you can imagine he is not too happy despite them paying half his rent for now. Kind of sad.

The most bizarre part is that he has drawn up plans and contracted for construction of a "shop" on the country property - 2000 sq ft, architect-designed, estimated build cost $200K. Interior fit-out is extra of course and he is talking about lifts, compressors, all the tools and mechanical stuff he does not now have, storage racking for vehicles, etc. I'd guess another $100K. This will supposedly feed his old-car habit and allow him to do whatever, whether it be adding more vehicles to his collection or doing restoration work for others, not sure. I think it is nuts. He will never get his money back of course but I suspect he figures his wife will be the one selling it after he's gone.

It's their money and their lives of course but it just gives me a very uneasy feeling about how this might all play out in the end.

roadburner

nyccarguy said:

@Michaell - I DETEST moving

Ditto. The ONLY way I would consider moving is if someone offered me an obscene amount of money for the farm.

breld

Having just moved last year, I agree with the sentiments about the process, but @michaell, backing to open space is a fairly hard thing to find these days - if the numbers work out and the wife (and yourself) want it, I'd just bite the bullet and go for it.

If it hasn't already, the market should be heating up soon with Spring (already feels like Spring, huh?) so you may have to move quickly on it. But by the same token, your existing house could move quickly too.

$50-60k (maybe a bit more) of a difference for the extra space, open space, and the 3rd car garage seems worth it to me.

See - I can be enabling in all things, cars or otherwise!

breld

Ended up chatting with my next door neighbor yesterday - we haven't talked much to date other than him complaining a bit over our dogs barking :@ .

But, we were just chatting about landscaping projects, and I compliment on the new G-wagon he just got (well, new to him, it's a 2009). Apparently he got in an accident in his X5 M and just took the insurance proceeds and bought the MB.

Anyway, got to talking about cars in general, and he starts talking "BMW-ese," throwing out terms such as E46 and E92, and I'm like, "now he's talking my language!"

He's been seeking out a previous gen M3 (E90/E92) and suggested I take a look at them too. He likes to go check out ones that are being privately sold now and again, so I may join him one of these weekends.

What are the enthusiasts' take on those models? I can't say I've paid much attention to them.

breld

I'm a little tempted by this, being it could be a straight across trade. I love the body style of my 4, but getting back into a stick (not to mention the 6 cylinder) could be fun!

2014 335i xdrive

nyccarguy

breld said:

I'm a little tempted by this, being it could be a straight across trade. I love the body style of my 4, but getting back into a stick (not to mention the 6 cylinder) could be fun! 2014 335i xdrive

@breld saying "a little tempted" means he'll have it by the end of the month.

kyfdx

breld said:

Ended up chatting with my next door neighbor yesterday - we haven't talked much to date other than him complaining a bit over our dogs barking :@ .

But, we were just chatting about landscaping projects, and I compliment on the new G-wagon he just got (well, new to him, it's a 2009). Apparently he got in an accident in his X5 M and just took the insurance proceeds and bought the MB.

Anyway, got to talking about cars in general, and he starts talking "BMW-ese," throwing out terms such as E46 and E92, and I'm like, "now he's talking my language!"

He's been seeking out a previous gen M3 (E90/E92) and suggested I take a look at them too. He likes to go check out ones that are being privately sold now and again, so I may join him one of these weekends.

What are the enthusiasts' take on those models? I can't say I've paid much attention to them.

The E9X model with the 414 HP V-8?

I'm a big fan.

Michaell

breld said:

Having just moved last year, I agree with the sentiments about the process, but @michaell, backing to open space is a fairly hard thing to find these days - if the numbers work out and the wife (and yourself) want it, I'd just bite the bullet and go for it.

If it hasn't already, the market should be heating up soon with Spring (already feels like Spring, huh?) so you may have to move quickly on it. But by the same token, your existing house could move quickly too.

$50-60k (maybe a bit more) of a difference for the extra space, open space, and the 3rd car garage seems worth it to me.

See - I can be enabling in all things, cars or otherwise!

Thanks for the feedback - the wife commented that spring is generally a good time to put your house on the market.

My concern is being 'house poor' - we'd be looking at $500-700 more per month for the new place. Is it worth it? I guess we'll find out on Sunday at the open house.

qbrozen

Michaell said:

@qbrozen - I think it's the angle of the picture that is distorting the garage. It is a full 3 car setup

Maybe. But it definitely looks taller than it is wide. None of my garage doors have been like that. Typically they are 7' tall and either 8' or 9' wide. Maybe those are particularly tall.

breld

kyfdx said:

breld said:

Ended up chatting with my next door neighbor yesterday - we haven't talked much to date other than him complaining a bit over our dogs barking :@ .

But, we were just chatting about landscaping projects, and I compliment on the new G-wagon he just got (well, new to him, it's a 2009). Apparently he got in an accident in his X5 M and just took the insurance proceeds and bought the MB.

Anyway, got to talking about cars in general, and he starts talking "BMW-ese," throwing out terms such as E46 and E92, and I'm like, "now he's talking my language!"

He's been seeking out a previous gen M3 (E90/E92) and suggested I take a look at them too. He likes to go check out ones that are being privately sold now and again, so I may join him one of these weekends.

What are the enthusiasts' take on those models? I can't say I've paid much attention to them.

The E9X model with the 414 HP V-8?

I'm a big fan.

Yup - that's the one. I've never been particularly drawn to a V-8, but having driven the Mustang GT a few weeks back, I could be swayed.

My neighbor says he actually tracks values of certain cars on the used market on a spreadsheet (my kind of guy!), and he seems to think that generation of M3s are at a good price point where you won't get hit hard on depreciation (assuming you don't mile it up too much).

Mr_Shiftright

Michaell said:

'92 Legend with 220K - asking $1500.

2nd owner. Repainted 5 years ago. Cloth interior. Owner has added remote start and new infotainment system with Nav and Bluetooth.

Deal, or no deal?

That's about .50 cents a pound...you can hardly buy bananas for that anymore.

But seriously.....statistically speaking, the car is already dead. But, as we can see, it is still running. So how does one judge the value of a car that now has zombie status?

I guess the best justification for paying $1500 is that you can't buy anything better for $1500, and an Acura has better odds of not dropping dead than most cars.

Think of this car as an 80 year old man playing a vigorous game of tennis everyday. Will he be on the courts in 6 months? Who knows?

Mr_Shiftright

nyccarguy said:

Wow! a 5 bedroom, 4 bath, 3200 square foot, 14 year old ranch for $500K. What would that go for in my neighborhood?

In my neighborhood, for $500K the first thing you'd be doing is evicting the chickens or buying new wheels for the house..

Michaell

I know I have it good here in CO.

I was at the office last week (I do pop in occasionally) and ran into a person I've worked with. She is in the process of moving from the Bay Area to CO (has bought a house already; moving in May). She's astounded at how much space she can get compared to CA. And, her commute should be much shorter, as well.

Mr_Shiftright

Having lived both in CO and CAL, I can appreciate the pros and cons of both. There's no perfect place. What counts is that you really like the idea of "coming home" when you're traveling.

Michaell

Mr_Shiftright said:

Having lived both in CO and CAL, I can appreciate the pros and cons of both. There's no perfect place. What counts is that you really like the idea of "coming home" when you're traveling.

I grew up in SoCal but have been in Colorado for 20+ years, and I agree. I enjoy visiting my family in CA, but not sure I could ever live there again.

Colorado has it's plusses, but I'm ready to give up on cold weather and find someplace warmer.

If it were entirely up to me, I'd pull a @stickguy and move somewhere warmer with a smaller, less expensive home (or townhome). Better yet, have a summer home and a winter home, since my job is portable.

graphicguy

$500K in Cincinnati puts you in a 4-5 BR, 4 bath house with upgraded materials throughout on a nice piece of land, in a good neighborhood. That's why I've resisted transfers practically my entire career!

Mr_Shiftright

Michaell said:

Mr_Shiftright said:

Having lived both in CO and CAL, I can appreciate the pros and cons of both. There's no perfect place. What counts is that you really like the idea of "coming home" when you're traveling.

I grew up in SoCal but have been in Colorado for 20+ years, and I agree. I enjoy visiting my family in CA, but not sure I could ever live there again.

Colorado has it's plusses, but I'm ready to give up on cold weather and find someplace warmer.

If it were entirely up to me, I'd pull a @stickguy and move somewhere warmer with a smaller, less expensive home (or townhome). Better yet, have a summer home and a winter home, since my job is portable.

Oof! TWO houses? Just rent a summer place and be happy.

SOCAL and NORCAL are two very different places---like north or south U.S. We speak the same language (s) but climate, architecture, and many attitudes are very different. It's really two different states.

Kinda like Colorado's Front Range vs. Western Slope.

thebean

One of my acquaintances at my local senior center just bought a new Spark and I got a chance to ride in it yesterday.  After this ride, I think we need to put together an intervention for iluv.  Man, that was the tinniest car I have experienced ever.  Noisy and rough with crappy seats.  The guy who bought it said he wanted the cheapest car he could get and he didn't care how it drove or rode.  I have ridden in a Versa and it was a lot better than this Spark.  I bet the iA is worlds better.  

iluv, save your money a little longer and get the iA.  You will regret getting a Spark, I guarantee it.

Mr_Shiftright

Well to be fair---you get a brand new car for $14,000. It's built to a price after all.

stickguy

having 2 houses doesn't seem appealing to me. Now, a nice affordable place down south for us, and chipping in on a house up north with one of the kids, that would work.

stickguy

Michael, $500-$700 sounds way high. I have not checked mortgage rates lately, or maybe you are doing a much shorter term, but IIRC $50K borrowed should be about $200/month, And about $350 if you are doing 15 years.

mortgages are like leases. You get sucked into that "it's only a little more per month" scheme, just on a much larger scale.

Michaell

stickguy said:

Michael, $500-$700 sounds way high. I have not checked mortgage rates lately, or maybe you are doing a much shorter term, but IIRC $50K borrowed should be about $200/month, And about $350 if you are doing 15 years.

mortgages are like leases. You get sucked into that "it's only a little more per month" scheme, just on a much larger scale.

Tell me about it.

The issue is, the new mortgage would be something like $80K more than the one we have now.

There is a mortgage calculator on the link I provided. Played around with it and - I think - the mortgage on the new place, assuming we could get it for the price we think is fair - is about $400-500/mo more than the current mortgage. It depends on how much we can put down, which, of course, is dependent on what we could sell our house for.

Doesn't help that the Fed just bumped rates yesterday. Gonna make mortgages more expensive (I'm in a 30 year fixed at 4.25% at the moment).

Plus PMI, since there is no way I can come up with 20% down.

It's all theoretical until we get a chance to look at it. It's possible that the layout wouldn't suit my wife. And, I've told her, there would be about $0 budget for any sort of updates, so she'd better like (love?) the flooring, cabinets, hardware, etc.

stickguy

that makes more sense. I can't believe PMI is still a thing. That would be a deal breaker to me, just on principal.

Thankfully after being here a long time we have enough equity to make that a non factor. Can't quite sell out and buy a replacement for cash, but can at least get a manageable enough mortgage (if I can keep the darned price down!) to make it a ST loan, paid off early.

suydam

We downsized last year from very large to very small. Since we moved to California we did NOT downsize in price! We are so happy that we got rid of so much STUFF and love our little condo. Best thing is -- it backs onto open space. So many birds and wildlife, and great for the dog. Walking distance to the beach. I'm in heaven. And WAY less to dust and clean.

stickguy

And, none of those things are every happening to me! Wife seems obsessed about keeping a big house (while complaining about having to clean it). Won't willingly leave the NE because of family being in upstate NY. And has hoarder tendencies so has real trouble getting rid of "stuff" (using a polite word for it).

I will be happy to end up in the middle. A bit smaller and cheaper, slightly further south (shooting for Delaware at this point), and a reasonable purging of extra stuff in the basement.

nyccarguy

I had PMI on my mortgage.  It was 2% tacked on to the end of my mortgage plus $232 per month.  I tried refinancing after I bought, but they changed the PMI rules to 1% tacked on to the mortgage and $545 per month.  Since I lost money selling my condo, I only had 10% to put down.  Once I made 5 years worth of payments & had a good feeling my house would appraise for more than I bought it for, I refinanced.  Originally 5 1/8% with PMI, then refinanced for 4 1/8% with no PMI.  I did reset the clock 5 years, but am happy to not pay PMI.

I agree with @stickguy - don't do it because you'll have to pay PMI on principle (no pun intended).

stickguy

I always thought of PMI as a tax on 1st time buyers (and a nasty one at that). And probably a good indicator that if you are not being forced to move, that you shouldn't be looking at that house.

kyfdx

The FED rate won't affect the 30 year end of the yield curve.. Eventually it will, if they keep raising it (and they will), but not any time soon.

@graphicguy I found the perfect 2200 sq.ft house with 1100 sq/ft more finished in the walkout lower level.
2-car garage and 1st floor master. Perfect down-size for you. 5-10 minutes from downtown and OTR. $399K

Don't tell my wife.

Michaell

stickguy said:

I always thought of PMI as a tax on 1st time buyers (and a nasty one at that). And probably a good indicator that if you are not being forced to move, that you shouldn't be looking at that house.

I'm very close to a point in my current house - that I've been in 18 months - to be able to re-fi and drop the PMI.

Problem is, the interest rates have gone up, so I'm not likely to save any money in the payment.

stickguy

How long are you planning to stay? You sound like us. Probably not staying forever, with 10 years probably being the far outside (pushing you to mid-early 60s, starting to think retirement, etc.).

so, consider a 10 year ARM. Still amortized over 30, but at a cheaper rate. When we last refi'd a few years ago, this is what we did. Rate was at least 1% lower than a flat 30 year (basically it was the 10 year mortgage rate). And fixed for 10 years, which I expected (hoped?) to cover how long we would be here. Worst case, I turn 60, and get hit with a rate bump (and either refi or move, or just pay more!).

I did the math, and (spitballing here) I think it was going to take almost 15 years (at the maximum annual rate increases) for me to actually be behind on the deal. No way I want to be here that long, and if I was, would look to have the place paid off anyway.

Worth a look if you are investigating, since on a loan that size, .5-1.0% can make a big difference.

xwesx

Michaell said:

stickguy said:

I always thought of PMI as a tax on 1st time buyers (and a nasty one at that). And probably a good indicator that if you are not being forced to move, that you shouldn't be looking at that house.

I'm very close to a point in my current house - that I've been in 18 months - to be able to re-fi and drop the PMI.

Problem is, the interest rates have gone up, so I'm not likely to save any money in the payment.

PMI is a separate add-on to the cost of the mortgage; I believe that you can ask the lender to drop the PMI when you reach 80% of the home's value, and they're required to do it when you hit 78% (e.g., the outstanding principle on the mortgage is 80% or less of the value of the home). So, if much of the equity is that your home is more valuable due to your improvements, then couldn't you have it appraised and, if you hit 80%, ask the lender to drop the PMI without having to refinance?

graphicguy

kyfdx said:

The FED rate won't affect the 30 year end of the yield curve.. Eventually it will, if they keep raising it (and they will), but not any time soon.

@graphicguy I found the perfect 2200 sq.ft house with 1100 sq/ft more finished in the walkout lower level.
2-car garage and 1st floor master. Perfect down-size for you. 5-10 minutes from downtown and OTR. $399K

Don't tell my wife.

Walt....I actually looked at this place a couple of times. Very nice, just on the opposite end of what I have now....and a little too small!

http://clareschneider.cbintouch.com/listing/mlsid/371/propertyid/1522053/

Assuming the one you're talking about is yours, it's on the "other" side of the river, right?

xwesx

I hear that anything within a five-block radius of Walt's place is considered the "bad side" of town.

stickguy

cute place, but I don't see any pictures of the 2 car garage?

though it does already have a home theater in the bathroom, so you have that part covered.

Michaell

xwesx said:

Michaell said:

stickguy said:

I always thought of PMI as a tax on 1st time buyers (and a nasty one at that). And probably a good indicator that if you are not being forced to move, that you shouldn't be looking at that house.

I'm very close to a point in my current house - that I've been in 18 months - to be able to re-fi and drop the PMI.

Problem is, the interest rates have gone up, so I'm not likely to save any money in the payment.

PMI is a separate add-on to the cost of the mortgage; I believe that you can ask the lender to drop the PMI when you reach 80% of the home's value, and they're required to do it when you hit 78% (e.g., the outstanding principle on the mortgage is 80% or less of the value of the home). So, if much of the equity is that your home is more valuable due to your improvements, then couldn't you have it appraised and, if you hit 80%, ask the lender to drop the PMI without having to refinance?

Good point .. all it would cost me is the appraisal, correct?

stickguy

Not sure if you need to get one. Heck, Zillow is basically free appraisals. And not sure if they take a RE agent one. So contact the lender, and start the process, and see what they require.

kyfdx

graphicguy said:

kyfdx said:

The FED rate won't affect the 30 year end of the yield curve.. Eventually it will, if they keep raising it (and they will), but not any time soon.

@graphicguy I found the perfect 2200 sq.ft house with 1100 sq/ft more finished in the walkout lower level.
2-car garage and 1st floor master. Perfect down-size for you. 5-10 minutes from downtown and OTR. $399K

Don't tell my wife.

Walt....I actually looked at this place a couple of times. Very nice, just on the opposite end of what I have now....and a little too small!

http://clareschneider.cbintouch.com/listing/mlsid/371/propertyid/1522053/

Assuming the one you're talking about is yours, it's on the "other" side of the river, right?

That's pretty cool. Not sure I love that location on Court St, though. I think I'd rather be in OTR, with more of a "loft" vibe.

We like to call it the "good" side of the river. I could be to that property on Court Street in about 8 minutes, from my house.

I'd love to try urban living, but my wife isn't up for it. As close as we are to downtown, it is still solidly suburbia.

Michaell

kyfdx said:

graphicguy said:

kyfdx said:

The FED rate won't affect the 30 year end of the yield curve.. Eventually it will, if they keep raising it (and they will), but not any time soon.

@graphicguy I found the perfect 2200 sq.ft house with 1100 sq/ft more finished in the walkout lower level.
2-car garage and 1st floor master. Perfect down-size for you. 5-10 minutes from downtown and OTR. $399K

Don't tell my wife.

Walt....I actually looked at this place a couple of times. Very nice, just on the opposite end of what I have now....and a little too small!

http://clareschneider.cbintouch.com/listing/mlsid/371/propertyid/1522053/

Assuming the one you're talking about is yours, it's on the "other" side of the river, right?

That's pretty cool. Not sure I love that location on Court St, though. I think I'd rather be in OTR, with more of a "loft" vibe.

We like to call it the "good" side of the river. I could be to that property on Court Street in about 8 minutes, from my house.

I'd love to try urban living, but my wife isn't up for it. As close as we are to downtown, it is still solidly suburbia.

OTR - I had dinner in that neighborhood on my last trip to Cincinnati.

And, I love how close @kyfdx is to downtown but still feels like you're a hundred miles away.

stickguy

I go back and forth between in the sticks, and walkable urban (more like smaller town close to the city where you can walk to downtown).

This one I like. Big garage. Lots of parking, and perfect spot for building another garage! In an area I like, though really don't need this much land (though gives me an excuse to buy a tractor). I think it has plenty of room for our needs now. May not be able to sell wife on that.

http://www.realtor.com/realestateandhomes-detail/147-Laurel-Heights-Rd_Landenberg_PA_19350_M37847-02781#photo23

xwesx

That's enough land to feel like you have a little space, but not so much as to be a huge chore to maintain it. I really like the big roof overhangs; so many places really skimp on that, and small overhangs make for a lot more maintenance on the walls. Just make sure the roof insulation is good or you will end up with wicked ice dams on those things.

graphicguy

I think the price reflects that it's on Court St. It's OK. There are better places in the city, though. I agree with you about putting that property in OTR. Would make for a great urban living arrangement. Or, put it in Mt Adams, but that property up there is WAY OVERPRICED!

I've even toyed with the idea of living on your side of the river, somewhere around Mainstrausse or the Clock Tower area.

stickguy

nice thing I am finding is that as an empty nester, I have a lot more freedom as to where to go. And don't have to be a slave to school district (though still have to be careful, since cheaper to buy probably won't have as much appreciation potential).

So I can focus on size of the garage, not what HS the neighbors go to!

xwesx

I have to ask: What is OTR?

stickguy

not over the road trucking!

must be some trendy neighborhood in Cinci. Not sure why anyone moves to someplace without parking. Makes no sense at all to me.

corvette

Over The Rhine. I think it used to be a questionable part of town, but parts or most of it have been revitalized and redeveloped in the last few years. Mount Adams reminds me a little of the Highlands in Louisville, but it's smaller and more self-contained.