Tips on decent housing or How I learned the hard way.

Finding a decent place to live is probably the most expensive, frustrating, and time consuming thing you can do. Moving is a real pain in the butt and so are mortgages, insurance and taxes. There are some things to consider when choosing what type of place you wish to live in.

Here are some questions you need to ask yourself before looking for a residence.
Do I have or want pets? Is my job secure and steady, How much do I have to spend?
Does my income fluctuate from month to month? How is my credit?

There is nothing wrong with apartments. You can live in a decent neighborhood, hassle free with no yard work or home repairs. The downside is you pay several hundred dollars each month while gaining no equity. Apartment complexes are notorious for odd rules, poor parking and bad neighbors. The lack of privacy and a yard are also things to consider.



Buying a home is another option. If you can save a down payment and get the financing, owning a home is usually the best way to go. A house payment will usually be lower than apartment rent per square foot but you will have to figure in the escrow of taxes and insurance into your monthly payment.If you are a first time home buyer, you can find a realtor to show you around (which can be a colossal waste of time) or you can search for a home yourself and then call the realtor on the sign to arrange a walkthrough.

It’s best to start off buying a small older home in an established neighborhood. You may find that nice new subdivision down the road has gone to the meth labs, graffiti and gang bangers in just a few short years. Also, if you have kids check the school district and sex offender registry in your area before buying.

When negotiating for a house bid low. They will always come back with a counter offer. Never get pressured by the realtor when they say "we have several bids or I have a nice couple coming to look at it in 15 min so you had better make an offer if you want this house" Its all a load of Bull. Take your time, shop around and find a house with the features you will need and want.

Get a reputable home inspector NOT hired by the seller to check out a property. This will cost a couple of hundred dollars but will save you in the long run and will give you negotiation points when it’s time to go back to the bargaining table. Be sure to get the best FIXED interest rate you can and forget about buying points and all that other crap.

Do not get fooled into the interest only loans where you get a $400,000 house for $700 per month for the rest of your life. You never end up owning anything unless the property values skyrocket. Which is unlikely in this market.

Once you get financed and move into your new home. Don’t start any major projects right away. Settle in, unpack and take stock of your new surroundings, do some cheap decorating, clean the place up and paint a few walls before you gut the kitchen or start tearing down walls. Remember, once you start a project it’s easy to lose steam , run out of money and end up miserable in a torn up half finished house.

Keep in mind when making your house payment most of the money will go toward interest for the first several years. After 5 years of paying your mortgage do not be surprised if you only have a few hundred dollars payed toward the principal.

If you want to get some quick equity, be sure to write a separate check or make a payment earmarked for equity aside from your regular mortgage payment. Otherwise, they will put your extra money towards interest. Aren’t banks wonderful?

Whenever possible, try to fix things yourself. Nothing is really that hard if you do a little research and take your time. Fixing toilets, sinks, ceiling fans, drywall, landscaping can be quick and cheap weekend projects. Remember start small and do a little at a time.

If you are physically able, mow and edge your own yard. A self propelled lawn mower and electric edger will cost less that $400 and will save you the $100 plus per month an unreliable landscaper will charge you.

Be sure to install smoke alarms, Carbon monoxide detectors and at least 2 good fire extinguishers.

I learned a lot of this stuff the hard way I hope you don't have to.