2023 Real Estate Observations (Boston, Cambridge: appointed, apartment complex, new house)

[newenglandgal123]

Originally Posted by chicagoliz

They're not all McMansions. In certain towns, 1.2 million gets you a small, old house. Sometimes there are very valid, practical reasons for wanting or needing to be in a specific town.

Yes, there are certain risks involved, but sometimes those risks are manageable and are worth taking -- it's not always because someone wants a big fancy house to show off.

I guess when it comes to mortgages and financing I'm more risk adverse than many. Putting less than 20% down and carrying a mil plus mortgage just to get into a specific town is a risk I wouldn't personally take.

[lrfox]

Originally Posted by newenglandgal123

I guess when it comes to mortgages and financing I'm more risk adverse than many. Putting less than 20% down and carrying a mil plus mortgage just to get into a specific town is a risk I wouldn't personally take.

Same here. We knew we were playing it fairly safe when we bought in 2020. And maybe it's just that the environment has evolved over the last 2 years or so, but we're learning that we were downright conservative compared to the people we know who have bought in recent years. There are a lot of people who make a good deal more than us and/or have more help than we did, but I have a hard time imagining that some of the riskier buys in recent years aren't going to end up leaving some people deep underwater.

[newenglandgal123]

Originally Posted by lrfox

Same here. We knew we were playing it fairly safe when we bought in 2020. And maybe it's just that the environment has evolved over the last 2 years or so, but we're learning that we were downright conservative compared to the people we know who have bought in recent years. There are a lot of people who make a good deal more than us and/or have more help than we did, but I have a hard time imagining that some of the riskier buys in recent years aren't going to end up leaving some people deep underwater.

Yes, I know a couple who's parents covered the down payment for them on a home in Malden and they are still just barely able to afford the monthly mortgage themselves (2 incomes). However, I guess it's still less than what they were paying in rent in Cambridge so to them it is worth it. Their house isn't a Mcmansion either...it's a pretty basic vinyl clad 1920's-1930's style bungalow that you see prevalent in many neighborhoods in Medford/Malden that cost maybe between $550-600K for a mere 1100 sq feet.

[brightdoglover]

The official cant has been to buy the most house that you can. That is ridiculous, I think, but a lot of people do go for it.

[MtPleasantDream]

Originally Posted by newenglandgal123

Yes, I know a couple who's parents covered the down payment for them on a home in Malden and they are still just barely able to afford the monthly mortgage themselves (2 incomes). However, I guess it's still less than what they were paying in rent in Cambridge so to them it is worth it. Their house isn't a Mcmansion either...it's a pretty basic vinyl clad 1920's-1930's style bungalow that you see prevalent in many neighborhoods in Medford/Malden that cost maybe between $550-600K for a mere 1100 sq feet.

That sounds like a good deal though.
Today I saw a 900 sqft ranch sold for $450k in Billerica.

https://redf.in/BDIo2g

[chicagoliz]

Originally Posted by newenglandgal123

Yes, I know a couple who's parents covered the down payment for them on a home in Malden and they are still just barely able to afford the monthly mortgage themselves (2 incomes). However, I guess it's still less than what they were paying in rent in Cambridge so to them it is worth it. Their house isn't a Mcmansion either...it's a pretty basic vinyl clad 1920's-1930's style bungalow that you see prevalent in many neighborhoods in Medford/Malden that cost maybe between $550-600K for a mere 1100 sq feet.

This is an important point that so many people gloss over or overlook. If you work in Boston/Cambridge, you don't have a lot of options. You need to live somewhere -- some people are able to live with their parents, but often that is not available. So you've got either rent payments or mortgage payments. At least if you are making a mortgage payment rather than a rent payment, you are building up some equity. And at any given rental/monthly mortgage payment price point, just about the only way you can make that lower is to venture further and further out from the city. Given many of the changes that have happened since Covid, there may be a little more wiggle room on that, but you're still tied to where you work. And if you're married, that issue may be twice as hard, if both people are tied to offices in any way.

If you work in Cambridge, living out past Worcester is going to have a major quality of life impact. If you end up in some situation where you can't afford your mortgage payment, you wouldn't have been able to afford your rent, either.

[jayrandom]

A new build in my neighborhood (from a tear down) is my new litmus test for how crazy the market still is. It's listed at $2.4m, dropped to $2.3m and has been sitting for a couple of months now. Prices are still insane, but I think we've hit the high water mark.

[r_p]

Originally Posted by brightdoglover

The official cant has been to buy the most house that you can. That is ridiculous, I think, but a lot of people do go for it.

Because it works for most folks especially over the long term.

E.g., we bought at the top of our budget a few years back. The house is modest but the location is awesome (land alone accounts for more than two-thirds of the total assessed value). Since then the house has appreciated by at least 60% and our incomes have also gone up by 50%. We can even afford to pay it off but rate is just too low (2.5%) to justify.

I know many folks who are in a similar situation.

[massnative71]

Originally Posted by chicagoliz

This is an important point that so many people gloss over or overlook. If you work in Boston/Cambridge, you don't have a lot of options. You need to live somewhere -- some people are able to live with their parents, but often that is not available. So you've got either rent payments or mortgage payments. At least if you are making a mortgage payment rather than a rent payment, you are building up some equity. And at any given rental/monthly mortgage payment price point, just about the only way you can make that lower is to venture further and further out from the city. Given many of the changes that have happened since Covid, there may be a little more wiggle room on that, but you're still tied to where you work. And if you're married, that issue may be twice as hard, if both people are tied to offices in any way.

If you work in Cambridge, living out past Worcester is going to have a major quality of life impact. If you end up in some situation where you can't afford your mortgage payment, you wouldn't have been able to afford your rent, either.

Local access channel was on at the gym the other night, and what I saw take place (zoning board or board of appeals?) left me absolutely LIVID. Long story short, apparently these clowns got caught operating an illegal AirBnb without a proper permit. Woman had a long sob story "we were in subsidized housing"..."we didn't want to be a burden on society any longer"..."so we bought this house"..."I had a child"..."had to stop working"..."my husband's salary alone can't pay the mortgage"..."so we had to start renting our extra room short term"..."without that we will lose our home and become a burden on society again".


So let me get this straight, she was not only not taking responsibility for her own poor choices in life, but also blackmailing ME the taxpayer that if I don't give special treatment to her that it's going to be MY problem to support her again???


Anyway, (after of course giving little to no public notice of this hearing) only one other voter (older hippyish looking dude, who she probably paid to be there) showed up and he was in favor. "No objections?", the board all voted yes for these losers to keep renting to transients. So her bad behavior has now become the neighborhood's problem.



It's scum like this who is partially responsible for the overinflated prices. This is not an "affordable" community here, no reason why they couldn't have bought a condo nearby or single family in a cheaper town a little further away. First time buyers especially, should expect to make sacrifices. My first home (condo) in MA left me with an hour + commute. Sucked it up for 4 or 5 years. The sense of entitlement many have today is disgusting, where it often results in them living beyond their means at the detriment of their neighbors and future home buyers.

[matrix5k]

Originally Posted by MtPleasantDream

That sounds like a good deal though.
Today I saw a 900 sqft ranch sold for $450k in Billerica.

https://redf.in/BDIo2g

That house looks really nice actually, perfect starter home. Although the double yellow line road is undesirable but the backyard looks big.