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pittiedaddy t1_j9b08vg wrote

That's great and all. But people also need to sit down and really figure out if they can just "afford the payment" or "afford the house" because there is a difference.

You need to know if you can afford maintenance, upkeep, lawn care, etc. When I bought my house, I had almost $10k put aside for stuff you need. Lawnmower, trimmer, yard tools, etc, and anything that came up that needed attention. The past 4 years have cost me nearly that much taking down sick trees alone, then my central air breaking down, hot water heater needed replacing, fridge crapped out a few months ago, dishwasher did the same the first month I moved in.

Owning a house is more than the payment. So make sure you can really afford the house, not just the payment.

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Kolzig33189 t1_j9b18gj wrote

This is one of the biggest issues I see with younger adults who are trying to move from renting to owning/mortgage. I hear all the time “well I can afford an $1800 rent payment, so of course I can afford an $1800 mortgage payment.” Principal and interest is only one part of paying for a home.

While that might be true with some people doing very well financially, it’s not necessarily true for most because you have to factor in property taxes, home insurance (way more expensive than renters insurance), and any upkeep or repairs that could occur that you wouldn’t be responsible for as a renter. That $1800 mortgage principal and interest payment is more like 2500-2800 for the complete monthly payment after adding in tax and insurance in CT.

And even though I own a “newer” house (about 22 years old) it’s amazing how often things break or repairs/replacements are needed for expensive appliances. All of that needs to be factored in to the question of “can I afford the home” that many often overlook.

Yes, I want more people to be able to afford/buy a home. But I also want them to be in a financial position to smartly and responsibly do so so they’re put in a stressful or financially dangerous situation down the road.

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IndicationOver OP t1_j9betsk wrote

Honestly, that is a lot to happen in 4 years.

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pittiedaddy t1_j9bgxra wrote

I planned on the trees (each tree cost between $1200-1500 and i took down 6), but yeah the appliances were not. What really sucked was the dishwasher shit the bed the first week I was in the house, my wife then got in a car accident 2 days after totaling her car. But you have to think about WHEN something is going to need to be replaced, not IF.

Point is, shit breaks/needs to be maintained and you need to be prepared. For example, the air filters for my central air/Heat get replaced every 4 months and a box of 3 is $80. You're going to need lawn equipment/snow removal equipment, etc and they all need maintenance. And if you think "I'll just pay someone to do it" call around and get prices, you may shit your pants. Learn how to maintain your own stuff.

Another example, When my central air went down, it was a simple capacitor. Just the service fee was $150, the part and install was about another $250. In the middle of summer, that's a big deal

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LymePilot t1_j9bfc2h wrote

Contrary to what your realtor will tell you there has never been a worse period to buy a house in my adult life.

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chenbuxie t1_j9bv7ww wrote

You must be pretty young

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kril89 t1_j9bwzxm wrote

I don’t know because other worse times (the 80s and earlier) they were at least building new housing stock. We had less housing starts in 2022 than 2021 and less in 2021 than 2020. Plus we never saw the huge increase in building in the mid 2000s that lead to the 08 crash like other places.

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CurrentResident23 t1_j9c0i10 wrote

Blame it on the COVID. It became too costly for builders to build due to supply chain disruptions. I know, because I tried to work with some of them. It looks like materials costs are coming down, so let's hope the market bounces back soon.

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kril89 t1_j9ctjiv wrote

That’s not true because look at the sun belt. Homes starts are at record highs. This year and 2022 might be down but exploded in 2021 and early 2022x

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LymePilot t1_j9cbhns wrote

Using the 80’s is not apples to apples. Yes rates were in the teens, but there was active new construction and home prices were a fraction of what someone is paying today for a 50’s/60’s build.

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kril89 t1_j9doey1 wrote

umm that's exactly what I said.

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chenbuxie t1_j9bz3y0 wrote

That's a fair point. I guess I was just thinking about interest rates.

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elainehas t1_j9b375k wrote

Inventory is bare...860 total homes in the state under $300K which is more than likely the price point for new Homebuyers.

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mikecel79 t1_j9cd6cr wrote

The lack of inventory is crazy. In my town there is exactly one 4 bedroom home under 500k and it’s been on the market for months. Everything else in that range that comes up is under contract with days.

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B6304T4 t1_j9boxhf wrote

There is actually nothing here to cheer about.

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Fun-Cockroach8339 t1_j9b2v2y wrote

I used the first thing homebuyer mortgage to buy a small multi family where I live in one unit and rent the other. It’s a great first step in between renting and buying some McMansion you can’t afford.

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bent_peepee t1_j9bamot wrote

that’s a great deal, for both you and the tenant.

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Fun-Cockroach8339 t1_j9bmvrn wrote

I highly recommend it. Paying your bills with someone else’s money is a great feeling.

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bent_peepee t1_j9bn6x8 wrote

oooooh that’s not going to go over well here - this sub hates landlords.

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Fun-Cockroach8339 t1_j9buvjt wrote

😂 oh, I’m aware, I had a bunch of whiny malcontents tell me what a terrible person I am for mentioning it last week.

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IndicationOver OP t1_j9c3x80 wrote

You actually live in it though. That is called house hacking.

I don't think your type is hated on the same level not even close to traditional landlord.

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CTRealtorCarl t1_j9bduka wrote

Unfortunately, these funds are close to running out and I haven't heard anything about them getting replenished again. As of this comment there is ~1.3 million left in the fund and it goes quickly, probably only about 10 days left according to a mortgage person I work with.

Time to own funds

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IndicationOver OP t1_j9bf21a wrote

Good info, CT Junkie author needs to throw that in there.

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taipan__ t1_j9cpk8e wrote

That’s literally what this article is talking about, that a portion of the $600 million Lamont has earmarked for affordable housing is going to put money into the funds of this program.

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cncamusic t1_j9cn308 wrote

I used TTO. I knew I would be in my home for a while so it made sense, and it brought my mortgage payment down to a reasonable place while letting me put less down. Would be great if rates weren’t so awful but it is what it is.

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wanderforreason t1_j9ctwjc wrote

Interest rate for mortgages are probably around where they should be. They were historically low. It's a way healthier percentage now.

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cncamusic t1_j9cu111 wrote

Yeah I really just meant relative to where they were 6 months before I purchased but you’re totally right.

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kril89 t1_j9ge31e wrote

House prices still need to adjust to these higher interest rates. Without TTO they are pretty unaffordable for first time homebuyers. Unless you’re moving here from out of state with a nice high paying remote job.

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1234nameuser t1_j9bmms2 wrote

I've said it before, but CT is like a construction desert coming from growing parts of the US.

Talk about blowing your one opportunity to match the strongest housing demand this state has had in an entire generation. People won't forget.

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