Why I won’t own a house Part 1

homeownershipI get a lot of people that are both friends or coworkers who constantly don’t understand why Jello and I don’t buy an adult house (meaning the American ideal of a house or condo, we would buy a mobile home but that is a different post). There are several reasons for our lack of interesting buying a home, price being the biggest, but also flexibility, commute and a few other reasons. Let me see if I can break out the biggest reason of price here.

First a little background, I live in the Seattle area and evidently the median price is $513,000. Let’s be honest I won’t even come close to that in affording it (no way I want to buy something that is a half a million dollars, or about 10 years of my income at this point before taxes). So I will pick one of the lower priced neighborhoods.

I do love the Seattle area.

Westlake (the other areas can be sketchier and honestly harder to get places to buy). The average price is $367,000. Seattle is very dense, so I will need to probably pick a condo to get a low price like this. Looking over the available condos in the area on Zillow I found a 783 square foot condo for about this price (actually slightly higher) in a more run down area of Westlake.

Overview at Westlake, yep no houses around to buy, but “cheap” condos are here.

Let’s say I have $67,000 in my pocket to put down to avoid the extra insurance needed for homebuyers with less than 20% (no, I don’t have that money anywhere but for argument sake let’s say I do). The best interest rate I can get seems to be 4%, and 25 year loan will be normal. So I borrow $300,000 (see the attached report for breakdown of a loan with NO PITI, insurance, etc, it is purely for the loan).

Per the bankrate website, I will end up paying $475,000 out of pocket ($175,00 in interest), plus the downpayment (for a total of $635,000) for a $367,000 house. I realize people will say “but what is the cost compared to rent”. It comes out to $1,583.00 a month. Which is $400 more a month than what I pay now.

Yes yes, I own it, but that isn’t the end of my cost. I still have to pay for regular condo insurance (not counting the loan insurance for under 20%), taxes and home owner’s association dues since it will probably have to be a condo. I looked up the following utilizing Geico insurance and King County website for taxes owed on a unit that is actually only $337,000 (10% less value then what I have here, so the actual taxes would be more).

Definitely more than just a mortgage payment.

Condo Insurance costs me approximately $112 a month for only $200,000 to fix the home. Property tax for the sample unit I picked out that was similar price was $2,900 a year, or $240 a month. The Home Owner’s Association dues are $350 a month (which isn’t that bad in the area).

Let’s not forget maintenance, the average maintenance recommended by many organizations is 1%. I have linked HSH’s website for source. That means for a $367,000 house, I should be putting away $3,670 a year, or approximately $300 a month. So let’s break down the total cost:

  • Mortgage:              $1,583.00
  • Condo Insurance: $    112.00
  • Property Tax:        $   240.00
  • HOA Dues:            $   350.00
  • Maintenance:        $   360.00
  • TOTAL:               $2,645.00

Let’s compare that to my rent, which is approximately $1,200 a month, plus $25 in rental insurance for a whopping $1,225. Which comes down to $1,420 LESS than what I would pay for a condo at the medium price. Remember, all a condo really is, is an overdone apartment (and not even overdone well usually). To own a house that has actual yard is probably close to 50-100% or more than what I have outlined here.

Important note: if you look at the attached report Mortgage Calculator Report – 300k Home, the first five years of payments an average person pays $580-710 a month in principal, the rest is interest and does not add to the equity of the house. That means for the first five years, $1,980 a month is going away just for the “honor” to buy a house. An equivalent apartment I have found (that is far nicer than the condo I looked at) runs about that much.

I could turn around, take that extra $700 I have left a month and invest, party, pay off debts, or just find a different job that pays up to $5 an hour less.

I think instead of buying a house, I am good with living in a super nice apartment, with extra pocket money and not worrying that something will break (that is the owner’s responsibility).

 

Decrepit Building

I just woke up from a horrible dream. Not a zombie, nightmare infested dream but one that could happen.


We were at an older house, one that had fallen into a lot of disrepair. It belonged to an old lady who I never saw the face of, but we could hear in the background freaking out about the fact she might have to leave. We decided to start cleaning in the kitchen, anything to get her place into a liveable condition. The kitchen was pretty darn bad, it looked like one of those “hoarder” type setups, full of garbage and other debris, along with a broken down feeling.

I started cleaning the walls and noticed they were a weird stucco type texture. As I dug into cleaning, I realized they were stucco because of dirt, grime, but especially because of bug eggs everywhere. As I cleaned, the eggs would hatch, mostly cockroaches, but other types of bugs. This isn’t very surprising, I do have a weird phobia with roaches and of course if this was a bad dream it would have that.

It was at this point I noticed the floor had holes in it. It was an old style wooden floored building. However, the hole was pretty big around, I would say almost a foot across. As I cleaned I noticed more and more insects crawling out. Over a couple minutes that I kept killing them, the insects were larger and larger as well. I eventually yelled back at the old lady that she has to come with us as I woke up trying to get her to move.


Now, that may seem like a weird dream. However, at the end I realized it was about my parents. My parents are having their health decline severely lately. They can’t clean as well, which we help with, due to inability to reach places. Their apartment isn’t like the one in the dream. Except two large issues.

The first issue is the floor by the second door into their living room. It is rotten through. You can feel the floor boards give under the carpet that no matter how often you clean, it begins to develop a mold (I assume its because the floor pushes through to under the apartment crawlspace). Supposedly they have talked with the landlords and the landlords are trying to figure out what to do about it. The problem being is my parents don’t want to move. They love the apartment and they are scared to. So it sounds like the landlord is trying to figure out if they can repair the floor while my parents stuff is there (I could repair it, but landlords are always funny, if my parents have even really talked with them).

The second issue is something I can handle, its just a bit of money up front. ALL of my parents furniture is used, ratty and pretty much destroyed (well not pretty much, it is). They haven’t had new furniture in decades, all of these are things that were at goodwill and they have had for 6+ years, or things my dad has been able to find and bring home. They have already agreed to let me buy them a used sofa/couple of padded chairs to replace them, I just haven’t been able to do that lately.

I think I am going to need to do that next weekend. The furniture is incredibly bad due to their health, but especially because of their dog and  just the fact it is old furniture. They were fortunate and got a new bed last year so that part is good, the bed is in good shape. I think I will contact the local “We Care” and see if they have any good used furniture for sale. I saw a few years ago they carried some nice stuff, and its for a nice charity. If not I will have to go to another place. I will also have to rent a U-Haul pickup, theirs is dying, to deliver the old stuff to the dump and the new stuff back to the apartment the same day.

Well, I am starting to calm down. I doubt I will sleep the rest of the day, but maybe I will play some video games or something.

Feeling like crap

This morning I woke up feeling like shit physically, mentally and emotionally. I probably will call the boys in a little bit and cancel hanging out. I think I got a cold, combine that with the shit my sister pulled and the stress I am feeling about my dad being in jail all in all makes me a nasty guy at the moment.

I hate the world and I am just hoping someone gives me lip so I can beat them into the ground (ok I wont, and I know thats a bad thing, but thats the crappy mood I am in).

I am a little stressed about our car situation, its not for me or the wife, we both do fine without a car, its my mom, she has some major surgical stuff coming up and my dumbass meth-head sister is never reliable to her or my dad. I get worried on how she will get places. I probably wont try and get the car fixed, its just something I am a little fixated on and worried about.

Brother, me, mom, sister – January 2003

I have thought about it and I have to put my tattoo off til at least March (unless I get a job before then, then I can spend money on Tats). I do have the money in my pocket for the outlining of it, but I dont feel I can contribute that money for it. The wife’s back is hurting and she is saving up for a mattress that will help, and honestly as far as priorities go she is my ultimate number one priority, I would drop anything in my life for her needs and would kill someone for her if it was needed (and there are people out there rolling their eyes about that, lol its funny because its true).

I lucked out when I found someone to be so devoted to that she doesn’t take advantage of it. She needs a good mattress and her feeling better physically means she is happier which in the end makes me happier.

I am also slightly frustrated with my clan, dont get me wrong I have a reliable core (Yog, Astarte, Deep One, Tsathoggua, Nng and a couple of others) but the rest only bitch about wanting admin access and how they try to split hairs on the requirements for the clan. I have the strongest urge to go through and fire 50% of the clan just to par it down, but I wont. I feel I need to do it right and give them every opportunity to show me they want to be in it for any other reason then admin access on the public server.

If finances are poor next quarter they will be surprised when I reduce the server to a 12 man private server for matches only, Some would say but “Lilith is already paying for a 12 man private server” but if I reduced it down I would have her stop paying as I think its my responsibility to provide the server and no sense in having two private servers unless we branched out into DoD (which I wouldnt mind). On a good note practices have been extremely good, a large turnout and people seem excited about the upcoming competitions. I think Nng is right, I am too nice sometimes, maybe I will cut that back.

As for the rest of my personal life in this crappy mood I am in consists mostly of C++ projects and ASP.Net projects (which when I learn ASP will rock, because then I can program a database for Dying Light that is self updating and completely set up so anyone can access thier characters on the internet, buy thier own skills and print out thier own tags before game. Thus reducing Logistics to new players and me maintaining the database and ensuring no errors occur. WOOOT totally automated and accurate logistics I can not even imagine that.

Well Crappiness is still with me, better contact the boys.

Tuesday

Well here I am again, yesterday was so damn hot I couldn’t even do a posting. I basically went to class, studied, came home and played a little CS, a little Madden and studied a bit. I have a midterm today in 4 hours in my Roman Lit. class. I am pretty anxious by it and I should at this exact moment be studying but I can’t seem to do it. I will probably post this and then watch a buffy rerun on tv (its an episode for a season me and goat don’t own) and then at 9 I will start studying (that will give me 2 hours before test).

I don’t feel sore at all after sparring Sunday except for my ankle, lol guess maybe I shouldn’t spar on a fractured ankle but if thats all that aches I am surprised. I am pretty happy I get to quit the job at Papa Murphy’s. Don’t get me wrong I like the District Manager alot, Mike is a great guy but the actual store manager Troy is an absolute moron and can’t even call me by my real name, he keeps calling me Laughy and all it was doing was pissing me off.

On a good note I am awfully excited about Dying Light. We made up practice characters and I think the system will work well. The other thing that is great is the fact that a starting character is not useless nor does a person ever get so high a level that they plateau on ever gaining skills. I think we are all pretty excited.

I am also feeling much better about running games. Normally for my group I am the GM/DM but last year or so its been hard for me to run things. This happens sometimes, I know its not that I don’t want to, its just usually stress in the rest of my life that prevents me from doing things like that. I am pretty psyched about D&D, although I think I am going to lay down the law about arguing with the GM. I am tired of the arguing and if people can’t hack my decisions they need to find another GM.

Also we are starting to play Heavy Gear, we are starting with just the table top miniature game to make sure we like it but if that works out I will be starting a Sunday game (D&D is currently our Saturday game). I feel bad, I normally run solo games for Jello but last few months have not been good for my stress. I freak out about money. However I am feeling much better, now I just hope that I can get into the groove of his current character so I can start playing it, the only problem when I get to stressed to play is if its too long a time I sometimes lose the ability to keep that campaign going and need him to start something new.

Ahh stress, money is my number one thing I stress about. Legacies really crushed all our reserves, made us declare bankruptcy and pretty much caused my life a tremendous amount of stress. I think the most upsetting thing about it is the shit people said behind our back. I especially think its funny that all the people that were incredibly nice to us as owners and always talked to us have pretty much never contacted us since we gave it up. Max I want to thank you for attempting to warn me and Jello of that, we figured you were exaggerating, surely people would not be so two faced because of a game. You warned us and you were right. Oh well I think we are going to adopt the Acts of Gord (at http://www.actsofgord.com) type of management for Dying Light. I think the funny thing is the shit people still say behind our back. But we decided this time around to take a different perspective, Gord definately has the right idea.

Well I should stop bitching and move on, I am really glad that some of the legacies people did stay in contact and I like them, the ones that are two faced can kiss my ass and are not important to me anyways.

On a good note our MU Clan server was full most of yesterday, we have been working on getting it filled and it now is starting to. WOOOT. Well its getting close to time for breakfast and then studying. I might post when I get home tonight. Cya all.