Posted October 23, 200717 yr I've recently relocated t the Cleve and I am renting right now. My lease is up soon and I'd like to switch to owning property. I'd like to live in an urban setting, whether that means a downtown condo, townhouse, whatever, I am not picky...but what is my best option here? Will downtown property appreciate in the near term? Should i look at one of the inner ring suburbs? Which areas are safe? Any help on this matter would be greatly appreciated...it is hard to find unbiased opinions outside of a place like this.. :drunk: :drunk: :drunk: :drunk: :drunk: :drunk:
October 23, 200717 yr Given that your home is likely going to be one of the single-most expensive investments you'll ever make - wouldn't you WANT to be picky? Just so you know - we do have some local realtors who are members of the forum; would you be interested in hearing from them? clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
October 23, 200717 yr My first thoughts... It will be hard to find a downtown or urban condo/townhouse for $150k. However, the tax abatement may put a pricier property into your price range. Example: $150k house in Lakewood= $180K new townhome or condo in Cleveland due to the fact that you are not paying property taxes (for the first 15 years). What do you need? One or two bedrooms? Do you want a house? Do you want to cut grass?
October 23, 200717 yr yes, i did not mean to imply that i do not care about the nature of my home purchase, merely that I am open to several options. i am new to the whole process. i would welcome hearing from someone...
October 23, 200717 yr If you're focusing on the condo/townhome end, be sure to get all the information you can about maintenance fees and assessments. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
October 23, 200717 yr My first thoughts... It will be hard to find a downtown or urban condo/townhouse for $150k. However, the tax abatement may put a pricier property into your price range. Example: $150k house in Lakewood= $180K new townhome or condo in Cleveland due to the fact that you are not paying property taxes (for the first 15 years). What do you need? One or two bedrooms? Do you want a house? Do you want to cut grass? 1 bedroom, i don't have an issue with a lawn/maintenance...frankly i'd prefer buying something that i can put a little sweat equity into...
October 23, 200717 yr If you're focusing on the condo/townhome end, be sure to get all the information you can about maintenance fees and assessments. thx mayday...i noticed the stonebridge condos have an interesting rent to own deal? what's the catch on this arrnagment? sounds too good to be true...
October 23, 200717 yr at Stonebridge, half of your rent goes toward your downpayment. Great deal and a smart move by Stonebridge.
October 23, 200717 yr Try the Water Street condos in the Warehouse District. They just went for sale and I know there are/were some units in your price range. They also do rent-to-own. Nice building near all the action but a little off the beaten path too. http://www.waterstreetapts.com/
October 23, 200717 yr There are some properties downtown from $79k - $150k: http://homes.realtor.com/search/searchresults.aspx?cmid=1004300&ml=3&mxp=18&typ=2
October 23, 200717 yr My first thoughts... It will be hard to find a downtown or urban condo/townhouse for $150k. However, the tax abatement may put a pricier property into your price range. Example: $150k house in Lakewood= $180K new townhome or condo in Cleveland due to the fact that you are not paying property taxes (for the first 15 years). What do you need? One or two bedrooms? Do you want a house? Do you want to cut grass? Yeah, and by this logic, I think some of the Fries & Scheule condos in Ohio City that just went on the market might fall into your price range. I *think* they may be starting around $180k. That's a great area, and your investment should do well too, especially if the proposed development around there in the next 5 years occurs (namely MRN's purchases on the south side of Lorain).
October 23, 200717 yr I would consult with some realtors on appreciation. I don't pretend to be an authority on real estate in any sense, but I don't think much of anything is appreciating in Cleveland right now, particularly short-term. You might want to read this blog: http://foreclosingcleveland.wordpress.com/ If you are planning to live here 5 years or less, I would consider just renting and not buying.
October 23, 200717 yr ^^ I would certainly echo seeking a development professional about this, although a realtor may have reason to paint a prettier picture about appreciation. That being said, I find it highly unlikely that absolutely nothing is appreciating in Cleveland. While foreclosures are a considerable issue, I doubt that they're affecting resale of higher-end properties, as these are two entirely different niche markets, with quite a big range of potential buyers between them. Although not perfectly accurate in its methodology, www.zillow.com is a good site for getting a cursory understanding of how particular houses are appreciating opposite the city, county, state and national market.
October 23, 200717 yr ^^ I would certainly echo seeking a development professional about this, although a realtor may have reason to paint a prettier picture about appreciation. That being said, I find it highly unlikely that absolutely nothing is appreciating in Cleveland. While foreclosures are a considerable issue, I doubt that they're affecting resale of higher-end properties, as these are two entirely different niche markets, with quite a big range of potential buyers between them. Although not perfectly accurate in its methodology, www.zillow.com is a good site for getting a cursory understanding of how particular houses are appreciating opposite the city, county, state and national market. I've found Zillow to be a bit off with some of the city properties. According to Zillow, my house has gone down in value by about $20,000 over the past year. I also bought the neighboring parcel earlier this year and it supposedly has doubled in value since February.
October 23, 200717 yr Hi Flee, and I can tell by your Forum moniker that Cleveland is going to be lucky to have you here. I sell homes for a living in the areas you are discussing so I am adding my twelve cents here. In that price range you have quite a few options. Off the top of my head I know that The Grand Arcade, Pointe at Gateway and Payne Avenue Lofts have some units around 150k or less. None of us has a crystal ball but there is not any reason to think Downtown is going to depreciate- in fact Downtown and Ohio City have been hot even when other neighborhoods are not. I also think, in the price range you are discussing, you have less to worry about in terms of resale. Zillow is definitely a mixed bag. I would be happy to send you comps on certain complexes you have identified or answer any other questions you might have. Freis and Schuele DOES have condos for less than 180k but I think they are one bedrooms; that building will remain hot as well since it is transit oriented development. Quite a few have sold (I think almost ten at this point and it's only been on the market since some time this summer, the new portion of the complex anyway). There are Water Street condos and I have to agree they are really in a terrific location. Not sure about prices though but I can look those up as well. You do have options in that price range and some with varying degrees of tax abatement. Welcome to Cleveland!
October 23, 200717 yr I've found Zillow to be a bit off with some of the city properties. According to Zillow, my house has gone down in value by about $20,000 over the past year. I also bought the neighboring parcel earlier this year and it supposedly has doubled in value since February. I absolutely agree ... I've heard many similar complaints, particularly as Zillow doesn't do a very good job of tracking interior improvements until a sale occurs. That being said, it does also provide an easy format for retrieving information about sales prices of homes and provides a context for national and regional prices and appreciation. If nothing else, it should help to dispel the myth that there are absolutely no properties appreciating/maintaining value in Cleveland.
October 23, 200717 yr I would assume that Zillow is a better tool for suburban developments where the houses generally are of similar quality. In Ohio City, you have homes that have been chopped up into eight apartments sitting next to beautifully-restored 4000 sq ft Victorians.
October 23, 200717 yr I know the perfect neighborhood! Hint, hint! :wink: None of us can tell you what your best option is, when it come to a home purchase, but we're here for moral support and share our experiences. So keep the questions coming. If I knew then, what I know now. I would have never bought my house or asked more questions. Question? Since you've been here. What neighborhoods have you explored or spent time in? Even before speaking to a realator, I would have a list of neighborhoods and your needs then weigh the "pros" and "con's". Why type of home are you looking for? Pre or post war? Brick, wood, Sandstone, Limestone, etc? Number of rooms? Master bedroom, upstairs or downstairs? You say you don't mind putting in sweat equity, what will you use for capital for improvements? What time frame do you have to invest in getting/hiring the proper contractor and getting the proper permits, etc.? If in a multi unit building, how much can I afford ON TOP of my mortgage for HOA fees? What is a HOA and what do they cover? There are so many things to educate yourself on. Do you have a mortgage lender? You could very well "find" a unit, but do to circumstances beyond your control (out bid, seller decides to not sell, failed inspection, escrow conditions are not met, etc.) you may have to switch to your second or third option.
October 23, 200717 yr i'd suggest looking at www.Progressiveurban.com for some good ideas. Are you looking for a house, townhouse or condo? PS Buy one of the townhomes at Clinton Courts please.
October 23, 200717 yr All that is true except that I have heard from suburban agents that zillow is not always on the money there either. Oddly enough they are right on the money about my personal home lol. I like the idea of being able to use zillow to browse but when you need actual comps it's not the best. And one thing you can't get from the internet or even a piece of paper: no matter what community you are in, certain blocks on certain streets are considered 'the place to be' and prices can be valued higher there. It's a whacky thing! I still say this: overall, 3 percent appreciation on average for 35 years. Then we had appreciation at higher rates (in some places like West Park and Lakewood 11 percent, 15 percent) and so now a flat or 1 percent increase makes sense because we couldn't keep going up and up forever.
October 23, 200717 yr Hey, I have a friend who has been looking to unload her condo for a few months. It's a nice place but she wants to move home to save money. She lives in that apartment complex over Winking Lizard (sort of a triangular stretch of buildings) on, I think, E9 or E12 and Prospect (you know, the condos near Winking Lizard and Boneyard) If you want, I can give her your contact information or vice versa?
October 23, 200717 yr carolecohen, aren't you subtle :-D Work the board girl! Market yourself!! Just for the record folks - the official forum rule is that realtors are welcome to market their services/listings when appropriate (i.e. someone posts a question asking for info). What isn't approved is gratuitous posts of home listings that aren't in any way relevant to the topic of the thread - pretty common sense, but just so everyone knows. :-) clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
October 23, 200717 yr ^ The building is the Pointe at Gateway, I live there. Personally, I really like it but I feel some the units have become overpriced.
October 23, 200717 yr ^ The building is the Pointe at Gateway, I live there. Personally, I really like it but I feel some the units have become overpriced. On the overpriced by sellers or is the appreciation calculation to high?
October 23, 200717 yr well do you have some preliminary info first? in other words if it is only worth $100,00 i don't want to pay $150,000? not sayign this si the case, but what si the square footage/exat location?etc
October 23, 200717 yr ^ The building is the Pointe at Gateway, I live there. Personally, I really like it but I feel some the units have become overpriced. can you tell me more? it sounds cool if for no other reason than the location!
October 23, 200717 yr ^ The building is the Pointe at Gateway, I live there. Personally, I really like it but I feel some the units have become overpriced. can you tell me more? it sounds cool if for no other reason than the location! Here is the buildings website: http://www.pointeatgateway.com/id10.html
October 23, 200717 yr Eparabola that is kind of you and sure you can do that thank you. That is a great location, also where Pointe at Gateway is (close by anyway).
October 23, 200717 yr It's hard to judge the 'overpriced' issue at The Pointe....I guess it's all relative, some of the prices Downtown and nearby are quite a bit higher than The Pointe. It seems to be pretty good quality, at least to a realtor's eye looking at the workmanship. How does the parking situation affect you, Flee?
October 23, 200717 yr I urge you to find a book about how to buy a house. You really need to understand concepts like title insurance and the closing process. There are also strategies for finding the best deal in a mortgage. I don't have a book recommendation because I did all this research in 1993. My long term advice is to finance 80% of the price and invest any savings you have beyond that in stock/equity/mutual funds for the long term. Long term means you want to ride out the falls in the market. I have ridden out the falls in 1998 and 2001 since I started investing. In several years when your equity in your house increases because its value went up and you've been paying down the mortgage, sell your house and finance a more expensive house. After a few cycles like this, you will be owning a house that appreciates nicely. I hope this makes sense. You may wish to look at and compare the gas and electric bills of these prospective homes. That is going to be a big part of the ownership costs from now on. Happy hunting! edit:repeated word. I would consider financing up to 90% for that matter.
October 23, 200717 yr It's hard to judge the 'overpriced' issue at The Pointe....I guess it's all relative, some of the prices Downtown and nearby are quite a bit higher than The Pointe. It seems to be pretty good quality, at least to a realtor's eye looking at the workmanship. How does the parking situation affect you, Flee? yes, i would need a place to park my car...i'm assuming that is included with rent, no?
October 23, 200717 yr Actually "carolecohen", I believe my friend already has a realtor. I was really offering "Flee2theCleve" my friend's contact info. Sorry
October 23, 200717 yr My long term advice is to finance 80% of the mortgage price.......... Good example. Thats something I wish I would have known back then. However, price & mortgage rate factor in as well.
October 23, 200717 yr Pointe At Gateway has worked out a deal with the parking garage across the street (some of it is covered, some is not). They will give you a year's free parking but then after that I think it's $100/month
October 23, 200717 yr By the way, something for everyone, another cleveland blogger found this site and I've been addicted to it. It's useful for census type info on any zip code. It's fun! And useful if you are thinking about buying into a neighborhood, I think: http://www.zipskinny.com
October 23, 200717 yr ^Socialexplorer.com gives you census data for every neighborhood in the U.S. but I'd wait until 2010 to get something a little more accurate.
October 23, 200717 yr I agree with Borreal. The only other advice I would give is to buy a home that you are planning to live in for five years. Truthfully that is the old standard advice that applies due to our current market conditions now. People are running into more trouble than usual when they are trying to sell a year or two after they have purchased. So unless you are buying something that is way under priced for the market and are fixing it up, I think the five year rule is a good one again.
October 23, 200717 yr I agree with Borreal. The only other advice I would give is to buy a home that you are planning to live in for five years. Truthfully that is the old standard advice that applies due to our current market conditions now. People are running into more trouble than usual when they are trying to sell a year or two after they have purchased. So unless you are buying something that is way under priced for the market and are fixing it up, I think the five year rule is a good one again. 5 Yrs? I thought you should buy to keep/live in for 10 years.
October 23, 200717 yr My Two, in this day and age it's hard to get anyone to think past the next three! lol Seriously though, it's thought of (five years) in terms of when you start paying off the principal and not just interest on your home. That doesn't happen until you get to your fifth year. So it's really hard to recoup what you have already paid unless you wait at least five years. Personally, in order to use real estate as an investment like the stock market, yes, ten years is even better
October 23, 200717 yr thanks. How do you feel about people who pay the 13 payments a year. Mortgages seem so more complicated than they were 20 years ago.
October 23, 200717 yr i would suggest not looking at a house purchase as an investment, per se, but as a living expense. if you find a place for 1000/month that you love and it is a rental, rent it for a while. if you find a place to buy that is 1000/month and you love it, then do that. there are obviously more costs associated with getting into and out of a house, but i think the recent run up of property appreciation has many people thinking of owning as an investment. what people don't seem to grasp is that your 150,000 house ends up costing 300,000 in interest alone over 30 years, before property taxes, maintenance, insurance, water/sewer/trash and all sorts of other expenses that you don't usually pay when renting. from a living perspective, in downtown cleveland especially, i think it is hard to rent a place that has certain living features - wood floors, balconies, fire place. imo, you almost have to buy if you want those amenities, even if it means you break even (or less) if you have to or want to sell within a short time frame.
October 23, 200717 yr It's hard to separate out the two, urban life, because people always look at it as an investment even if they truly want a home to live in. Your best point though is, if you are renting at a certain price and you can buy instead, and don't mind the added responsibilities of ownership (extra costs involved) then why not do it? My Two, making the extra payment always made sense to me (no pun on your name LOL). However, depending on which mortgage person you talk to you get totally different responses. It's like stock market advice! To me it's a no brainer, because if you can get to that principal payment sooner, then why not? No one can ever be sure they won't get into a situation where they have to move sooner than anticipated...new job somewhere else, etc. So I always say it's a good idea even if some mortgage people say no. I think also it depends on how much extra cash you have on hand. No one should be cash poor just to do that.
October 23, 200717 yr Eparabola, have you thought about looking at a foreclosed house or a house that is bank owned?
October 23, 200717 yr ^^ Also most people don't live in one home for thirty years so I wouldn't be worried looking at interest over that many years.
October 23, 200717 yr ^^ Also most people don't live in one home for thirty years so I wouldn't be worried looking at interest over that many years. Really? I've been in my crib for a while and no intention on selling this experiment! Or do you mean most new homeowners - those that have purchased within the last 5-7 years?
Create an account or sign in to comment