One of the events that transpired before I headed to Boston from my training seminar in Chicago was a phonecall from my landlord. He is selling the property in which I currently rent an apartment. At the moment, I thought a little about it. I thought more about it, though, on my plane ride to Boston. I wondered if the new owners would maintain the property as is or get the property re-zoned such that it would no longer be a multi-family dwelling. I also wondered with the change in ownership would there be a concomitant increase in my rent. I thought about it some more when I returned home from Baltimore, and I have come to a decision.
After dithering for a short time and waiting out a somewhat torrid housing market, the time for me to buy a house is now. I am not paying more in rent than I am paying now, and I do not want to be forced out of my current place due to a change of heart by the potential new owners. I don’t quite know exactly how I am going to pull it off, as I must admit to not having anything squirreled away for this purchase.
When I originally thought about buying a couple of years ago, I was hemming and hawing about buying after moving out of a living arrangement with my then girlfriend. I wound up not buying, as the housing market at that time was starting to reach a rather supernova-like temperature in Federal Hill and South Baltimore. Admittedly, I was not looking to move out of my neighborhood.
This time, I am a bit more amenable to moving away from the neighborhood. I will admit I will miss it, but at the same time most of the housing prices in that area are simply not manageable for a single person not making something approaching or over a six figure salary. Unless something changes soon–and that’s not happening–I do not see myself affording the neighborhood unless I stretch myself for a home in the $250k to $275k range. Thus, my thoughts on potential neighborhoods is breaking down in this fashion:
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- Federal Hill/South Baltimore/Locust Point
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- These neighborhoods are my sentimental favorites, given that I have grown up and spent most of my time in these areas. I have to include them on here. I would love to live in Locust Point, but the new housing development on the grain silo part of the harbor is going to make housing prices there simply unreachable for me.
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- Fells Point/Butchers Hill/Upper Fells Point
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- I think that Fells Point still has the same problems my current neighborhood has–very little affordability. I kind of wonder what they mean by “Upper Fells Point.”
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- Hampden and the Surrounding Areas
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- I think this is one of the more affordable areas in Baltimore, but it is an incredibly hot market. Also, unlike the other neighborhoods, some of the homes here are not attached. Thus, this neighborhood offers the attraction of homes with something I have not seen in years–a yard.
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- Washington Village/Pigtown
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- I have an interesting dilemma concerning this part of town. Depending on who you talk to, this area is going to see a Canton- and Locust Point-like renaissance. My one issue with both of these areas are that they are not quite as, shall I say, aesthetically pleasing, as the other areas that have undergone a revitalization. I believe this area includes the areas to the west of both of the stadiums. There are some folks who think this area is going to go crazy, and seeing what has happened with the properties in South Baltimore on the east side of the stadiums, I think there might be some truth to these thoughts. Secondly, there are some other interesting issues with these neighborhoods. My grandfather has been on me to get a place in the area, and this is the same grandfather who I ignored when he told me to buy a house in Locust Point in 2000. Consequently, I am on the fence on this one. I don’t want to be a pioneer and have my car and or home broken into frequently. I also think, though, I can get a decent home pretty cheaply here.
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I must admit I am not looking for a place that is lavishly rehabbed, however I really do not want to move into a complete fixer-upper. Maybe something where work can be done at the margins. Of course, if one can get a good rehab at a decent cost, it might be worth jumping on it. Additionally, living in the suburbs is out of the question. I like what the city offers me now, and I think I would be utterly bored out of my mind living anywhere but in an urban environment. I can still have the perks that the suburbs offers within a short driving distance.
I am going to talk to one of my friends today who recommended his mortgage guy, and I might talk to a couple of other friends of mine. The bottom line is that I plan to be a homeowner come hell or high-water by the end of the summer, and I am going to do whatever it takes to make it happen. I am certainly not going to rush into anything, but at the same time I think it is time for me to take this step. Besides, how awesome would it be to invite people over to stately Thomas Manor? 
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I lived in Hampden pre-renaissance and I also lived in Butchers Hill for years until last Fall. Word of caution about Butchers Hill, if you don’t have a private parking pad, be prepared for a parking nightmare. And as of right now, there’s no permit parking either.
I bought a house in Pigtown last December and I can say it was probably the best thing I could have done. I got a 960 sq. foot, completed gutted and completely rehabbed rowhome for 155K. And I have parking for days too. Granted, my street is definitely rough around the edges, but my block is very stable. I’m also starting to see more and more people wandering over to check out houses for sale. I don’t know how much the market has changed since December, but it seems like the best deals are still closer to the Carroll Park side than the Ridgely’s Delight side. And take a drive down Washington Blvd and check out the insane rehabbing going on from W. Cross St all the way down to Bayard St.
Anyway…just my 2 cents.
I lived in Hampden pre-renaissance and I also lived in Butchers Hill for years until last Fall. Word of caution about Butchers Hill, if you don’t have a private parking pad, be prepared for a parking nightmare. And as of right now, there’s no permit parking either.
I bought a house in Pigtown last December and I can say it was probably the best thing I could have done. I got a 960 sq. foot, completed gutted and completely rehabbed rowhome for 155K. And I have parking for days too. Granted, my street is definitely rough around the edges, but my block is very stable. I’m also starting to see more and more people wandering over to check out houses for sale. I don’t know how much the market has changed since December, but it seems like the best deals are still closer to the Carroll Park side than the Ridgely’s Delight side. And take a drive down Washington Blvd and check out the insane rehabbing going on from W. Cross St all the way down to Bayard St.
Anyway…just my 2 cents.
Things might pick up in the summer, but I’ve noticed properties staying on the market longer in Hampden of late than when I was looking about a year and a half ago.
My advice (for what it is worth):
* set a budget (and don’t forget the mortgage payment will almost certainly include property taxes [1])
* line up financing
* find an agent
* look at a few properties in all the neighborhoods you mentioned
* if you like any of the neighborhood, drive through at night too.
I think with your price range you can find a place that you can move in, and fix things as you want/can afford.
[1] oh and your property taxes will almost certainly be more than whatever is listed for the property. In Baltimore (or is it the entire state?) when a property is sold any new tax assessments go into effect immediately. This is almost always higher than the phased in rates the current owner is paying.
Things might pick up in the summer, but I’ve noticed properties staying on the market longer in Hampden of late than when I was looking about a year and a half ago.
My advice (for what it is worth):
* set a budget (and don’t forget the mortgage payment will almost certainly include property taxes [1])
* line up financing
* find an agent
* look at a few properties in all the neighborhoods you mentioned
* if you like any of the neighborhood, drive through at night too.
I think with your price range you can find a place that you can move in, and fix things as you want/can afford.
[1] oh and your property taxes will almost certainly be more than whatever is listed for the property. In Baltimore (or is it the entire state?) when a property is sold any new tax assessments go into effect immediately. This is almost always higher than the phased in rates the current owner is paying.
isn’t there livebaltimore.com and other local resources that will give you tons of info in an attempt to sell city properties? i’ve seen trollies of prospective home buyes launching from poly/western highschool for the past few years.
isn’t there livebaltimore.com and other local resources that will give you tons of info in an attempt to sell city properties? i’ve seen trollies of prospective home buyes launching from poly/western highschool for the past few years.
anghang: I have to admit that W. Cross Street is going insane. I need to take a look at Google Maps to see exactly where that is in comparison to me. Sounds like you did a pretty good job in finding what you wanted.
That said, the Butchers Hill parking issue does not bother me too much. After living in Fed Hill for so long, I am used to doing the old “parking circle jerk,” as it were. Nonetheless, I am definitely going to give them a look.
anghang: I have to admit that W. Cross Street is going insane. I need to take a look at Google Maps to see exactly where that is in comparison to me. Sounds like you did a pretty good job in finding what you wanted.
That said, the Butchers Hill parking issue does not bother me too much. After living in Fed Hill for so long, I am used to doing the old “parking circle jerk,” as it were. Nonetheless, I am definitely going to give them a look.
Paul: Things have slowed down, and I think certain areas are going through a sales boom again as a direct result of folks who bought within the last 2-3 years either growing much larger–children, incomes, etc.–or wanting to taste suburban life. I know in my neighborhood, the number of homes on the market in the last few months has grown considerably, along with their time on the market.
Your advice is sound indeed. I am definitely going to talk to my friends mortgage fellow, along with a friend of mine who entered the biz about 6 years ago.
The one thing that does frighten me about city living is property taxes. My friend who recently moved recounted the tale of his taxes in the county–just across the city line in Stoneleigh–to what his taxes were looking like in Baltimore City. Essentially, he was paying almost 2-3 times more than he was looking to pay in the county. Ouch! The only thing that one can hope for is that the property is still under a tax credit thing that some recent rehabs in certain neighborhoods have qualified for.
Paul: Things have slowed down, and I think certain areas are going through a sales boom again as a direct result of folks who bought within the last 2-3 years either growing much larger–children, incomes, etc.–or wanting to taste suburban life. I know in my neighborhood, the number of homes on the market in the last few months has grown considerably, along with their time on the market.
Your advice is sound indeed. I am definitely going to talk to my friends mortgage fellow, along with a friend of mine who entered the biz about 6 years ago.
The one thing that does frighten me about city living is property taxes. My friend who recently moved recounted the tale of his taxes in the county–just across the city line in Stoneleigh–to what his taxes were looking like in Baltimore City. Essentially, he was paying almost 2-3 times more than he was looking to pay in the county. Ouch! The only thing that one can hope for is that the property is still under a tax credit thing that some recent rehabs in certain neighborhoods have qualified for.
johnnydollar: livebaltimore is one resource, but another good one is talking to real estate agents–the ones who give the straight dope as opposed to lying through their teeth. They exist, as I have dealt with a few in the past.
johnnydollar: livebaltimore is one resource, but another good one is talking to real estate agents–the ones who give the straight dope as opposed to lying through their teeth. They exist, as I have dealt with a few in the past.
Hey - check out some of the floor plans and pricing for the new developments in Clipper Mill, Brewer’s Hill, and Charles Village!
http://www.twelve09living.com/flash_content/intro.html
http://www.brewershill.net/ (You could LIVE with Mr. Boh!)
http://www.clippermill.net/
http://www.charlesvillageprojects.com/
Complete list of Struever Bros., Eccles and Rouse projects:
http://www.sber.com/developing/default.asp
Hey - check out some of the floor plans and pricing for the new developments in Clipper Mill, Brewer’s Hill, and Charles Village!
http://www.twelve09living.com/flash_content/int...
http://www.brewershill.net/ (You could LIVE with Mr. Boh!)
http://www.clippermill.net/
http://www.charlesvillageprojects.com/
Complete list of Struever Bros., Eccles and Rouse projects:
http://www.sber.com/developing/default.asp
PS I’m an Ambassador for LiveBaltimore. Their resources are wonderful and they can offer some major incentives. You should really stop in for a cup of coffee - they have everything from floor plans to photos and are completely low key - they just want to provide info.
Also - if you are a first time homebuyer, don’t forget about an FHA loan. I bought my house for less than $10,000 in cash and got the seller to cover my closing costs.
PS I’m an Ambassador for LiveBaltimore. Their resources are wonderful and they can offer some major incentives. You should really stop in for a cup of coffee - they have everything from floor plans to photos and are completely low key - they just want to provide info.
Also - if you are a first time homebuyer, don’t forget about an FHA loan. I bought my house for less than $10,000 in cash and got the seller to cover my closing costs.
Three thoughts…
Do a little research on the school districts. If one of your choices has particularly bad schools, you could cross it off your list. While you could surely sell it later to somebody else without kids, you might not make as much money from your investment as someplace that has a great district.
Buy a house that is going to allow you to save each month. You spelled out a red flag, which is that you don’t have much squirrelled away. Once you are the owner and the furnace or refrigerator or plumbing goes out, you need to have cash for these issues. It could be a long time until you can take out an equity loan, and you probably don’t want to charge big ticket items unless you have a super low interest rate on your card. You can’t count on tradesmen taking credit for emergency jobs, and if you are relying on that then you aren’t going to be as free to shop for the best estimate. I’m just sayin’. You definitely need some cash somewhere once you are lord of the manor. I know you’ve experienced this with car ownership, but somehow it’s worse when something in the home falls apart. Catching a ride is easy compared to not having heat in the winter! Otherwise investigate what your bank can do for you in terms of unsecured credit lines for an emergency.
Homeowners insurance–a must. Talk to an agent about which areas might cost you more. You get discounts for how close a hydrant and/or fire department are to your property and for having a fire extinguisher, too. Take advantage of anything you can. I’m sure I sound like a real cheapskate, but it’s amazing how much money you have to spend when you buy a house. You are also going to need a little fund for fees to change over your utilities and to buy the little must-haves in a new house–fresh shower curtain, window coverings, carpet cleaning if it stinks in there, etc.–things you really need from the start IMHO.
Three thoughts…
Do a little research on the school districts. If one of your choices has particularly bad schools, you could cross it off your list. While you could surely sell it later to somebody else without kids, you might not make as much money from your investment as someplace that has a great district.
Buy a house that is going to allow you to save each month. You spelled out a red flag, which is that you don’t have much squirrelled away. Once you are the owner and the furnace or refrigerator or plumbing goes out, you need to have cash for these issues. It could be a long time until you can take out an equity loan, and you probably don’t want to charge big ticket items unless you have a super low interest rate on your card. You can’t count on tradesmen taking credit for emergency jobs, and if you are relying on that then you aren’t going to be as free to shop for the best estimate. I’m just sayin’. You definitely need some cash somewhere once you are lord of the manor. I know you’ve experienced this with car ownership, but somehow it’s worse when something in the home falls apart. Catching a ride is easy compared to not having heat in the winter! Otherwise investigate what your bank can do for you in terms of unsecured credit lines for an emergency.
Homeowners insurance–a must. Talk to an agent about which areas might cost you more. You get discounts for how close a hydrant and/or fire department are to your property and for having a fire extinguisher, too. Take advantage of anything you can. I’m sure I sound like a real cheapskate, but it’s amazing how much money you have to spend when you buy a house. You are also going to need a little fund for fees to change over your utilities and to buy the little must-haves in a new house–fresh shower curtain, window coverings, carpet cleaning if it stinks in there, etc.–things you really need from the start IMHO.
I’m not going to tell you how to buy a house or suggest where. I am just going to offer to hook you up with the realtor I worked with when I bought mine. She was truly incredible and held my hand through the entire process and stuck up for me when I didn’t know how to handle my mortgage broker and I’d love to send some business her way.
(She also got the seller to kick in cash and let me finance more than the asking price so I’d have even more cash for closing costs and after closing she took me to dinner, which she paid for, and gave me a hug when we parted ways. Who can ask for anything more?)
Seriously, let me get you with her.
I’m not going to tell you how to buy a house or suggest where. I am just going to offer to hook you up with the realtor I worked with when I bought mine. She was truly incredible and held my hand through the entire process and stuck up for me when I didn’t know how to handle my mortgage broker and I’d love to send some business her way.
(She also got the seller to kick in cash and let me finance more than the asking price so I’d have even more cash for closing costs and after closing she took me to dinner, which she paid for, and gave me a hug when we parted ways. Who can ask for anything more?)
Seriously, let me get you with her.
Broadsheet: Let me know when you are ambassadoring, and I will swing by. Presuming, of course, you are working at the location on Charles Street.
midwestie: All good points, but at the time I am not too worried about schools. I will cross that bridge when I get to it.
SC: Let’s talk off-line. I am interested in any help I can get, and if your agent is the bomb-izzle, it is worth my time to chat with her.
Broadsheet: Let me know when you are ambassadoring, and I will swing by. Presuming, of course, you are working at the location on Charles Street.
midwestie: All good points, but at the time I am not too worried about schools. I will cross that bridge when I get to it.
SC: Let’s talk off-line. I am interested in any help I can get, and if your agent is the bomb-izzle, it is worth my time to chat with her.
You might want to consider checking out Ednor’s Gardens, just next to Charles Village/Waverly. You’re close to everything, and it’s really one of Baltimore’s best kept secrets. One of our docs just moved into a lovely house for just under $200k, and it’s a quiet and safe neighborhood (at least his side of it is).
You might want to consider checking out Ednor’s Gardens, just next to Charles Village/Waverly. You’re close to everything, and it’s really one of Baltimore’s best kept secrets. One of our docs just moved into a lovely house for just under $200k, and it’s a quiet and safe neighborhood (at least his side of it is).
I think you can sort of discount any consideration of schools in Baltimore City. The public schools largely suck and probably will continue to for the foreseeable future. Most people buying into the city who care about education will send the children to private school.
I think you can sort of discount any consideration of schools in Baltimore City. The public schools largely suck and probably will continue to for the foreseeable future. Most people buying into the city who care about education will send the children to private school.
If junks don’t work with SC’s girl, I got a guy. He sets up shop right in Federal Hill, knows this area and the surrounding areas very well. I saw my house before it even went on the market and was able to get it at an insane low price.
I also know a mortgage guy who is legit. Holla if you interested. You can pay me back in bacon and Car bombs at No Idea. no rumplemintz.
If junks don’t work with SC’s girl, I got a guy. He sets up shop right in Federal Hill, knows this area and the surrounding areas very well. I saw my house before it even went on the market and was able to get it at an insane low price.
I also know a mortgage guy who is legit. Holla if you interested. You can pay me back in bacon and Car bombs at No Idea. no rumplemintz.
Sorry for the lecture. :blush: These are just the traps I fell into.
Now I do have a child and am fleeing the school district. Can I sell in time for school registration or will I be renting in addition to paying my mortgage? And I actually did get some sticker shock when my fridge and furnace went out. I’d had no idea.
But you are right that this is probably a good time to get investing. Check your credit report now and see if there is anything you clean up to boost your score and help you get a better rate.
I’m totally jealous that you have leads on good people to work with! That makes a big difference. Can’t wait to see how this turns out.
Sorry for the lecture. :blush: These are just the traps I fell into.
Now I do have a child and am fleeing the school district. Can I sell in time for school registration or will I be renting in addition to paying my mortgage? And I actually did get some sticker shock when my fridge and furnace went out. I’d had no idea.
But you are right that this is probably a good time to get investing. Check your credit report now and see if there is anything you clean up to boost your score and help you get a better rate.
I’m totally jealous that you have leads on good people to work with! That makes a big difference. Can’t wait to see how this turns out.
Good luck, JJT! I happily offer my labor services when it comes to moving.
Good luck, JJT! I happily offer my labor services when it comes to moving.
midwestie and Paul: There really are but a handful of good schools in the city (one of which I am proud to call my alma mater, but I digress). That said, he is right. If and when I ever get married and have children, I will worry about the whole school thing. Again, I qualify that with a lot of known knowns and known unknowns.
OSP: You are on the list of folks to talk to. I will discuss this offline with you, once I touch base with SC. In any event, bombs and bacon and No Idea.
jennetic: Suggestion duly noted.
snay: Thanks for the wishes.
midwestie and Paul: There really are but a handful of good schools in the city (one of which I am proud to call my alma mater, but I digress). That said, he is right. If and when I ever get married and have children, I will worry about the whole school thing. Again, I qualify that with a lot of known knowns and known unknowns.
OSP: You are on the list of folks to talk to. I will discuss this offline with you, once I touch base with SC. In any event, bombs and bacon and No Idea.
jennetic: Suggestion duly noted.
snay: Thanks for the wishes.
Okay, I see where you’re coming from. SC had said something along those lines once and I thought he meant just the inner city, not a larger area. I’m sure that with two incomes, private school isn’t the end of the world; two incomes are becoming the norm anymore.
I’m still excited to see how this turns out! “Stately Thomas Manor”…heh.
Okay, I see where you’re coming from. SC had said something along those lines once and I thought he meant just the inner city, not a larger area. I’m sure that with two incomes, private school isn’t the end of the world; two incomes are becoming the norm anymore.
I’m still excited to see how this turns out! “Stately Thomas Manor”…heh.
Woah, for a second I thought you were going to say you were moving to Boston.
Anyway, I’d be careful with an FHA loan, as Broadsheet suggets, as they’re not as stable as conventional loans. I also know a mortgage guy, having just bought a house last summer, and the thing that impressed me most about him was when he said, “Yeah, I could get you a loan for xxx thousand dollars, but you wouldn’t be able to afford your mortgage payments.” The fact that he was concerned about us and not his commission was the reason we decided to go with him.
Woah, for a second I thought you were going to say you were moving to Boston.
Anyway, I’d be careful with an FHA loan, as Broadsheet suggets, as they’re not as stable as conventional loans. I also know a mortgage guy, having just bought a house last summer, and the thing that impressed me most about him was when he said, “Yeah, I could get you a loan for xxx thousand dollars, but you wouldn’t be able to afford your mortgage payments.” The fact that he was concerned about us and not his commission was the reason we decided to go with him.
Check out Violetville: http://www.violetville.org/
Check out Violetville: http://www.violetville.org/
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