Our First Home!
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| A 2-car garage, 3 beds, 2 baths, 1979 home. |
We closed on our first home this past Friday! Didn't think this would ever happen at age 24, but here I am. I know I am supposed to feel super excited, but I'm feeling kinda mellow about the whole thing. Sometimes I feel like my reactions are always so delayed. So, check back with me in a week and I'll let you know how I feel.
Anyway, does this new milestone means I am an adult now? Hahaha. I always thought buying a home was a pretty far-fetched thing that only really, really mature and serious grown-ups do when they have families. You know, the whole purchasing a home occurs only when you get to a point in life where you finally go, "Aha! This is the dream job I've been looking for, and this city is best for building a family. There's good schools, good restaurants, good neighbors, and a good community. I want to settle here." Something like that. But that wasn't the case with us at all!
The way John and I stumbled upon this decision was because rent prices were going up at our current apartment--from $1235 to $1445 for a 2 bed, 1 bath apartment that hasn't been upgraded or cleaned out in 7 years (we took over a lease from the previous tenant for the lower rate). A 17% increase in rent is RIDICULOUS. It's not like anything has changed either! I don't know about you, but going to sleep on July 31st on the same bed in the same place, and then being forced to pay $210 extra the next morning just doesn't sit well with me. At least upgrade something or give me free cleaning!
Yeah, yeah, I know rent rates is driven by demand, but is there REALLY that much demand in Davis to induce a 17% increase?! I don't think Davis is particularly awesome to live in unless you are a retiree or a student at UC Davis. And I don't think the increase in incoming students can skyrocket by that much every year. Furthermore, is a beat-up apartment like our even worth $1445? Everything seems so inflated.
When we found out that interest rates for a home mortgage are at an all time low--3.3%--and that homes in Sacramento are fairly priced, purchasing a home as a means to "control rent" sounded like a pretty practical alternative. The only problem is that owning a home limits work opportunities due to limited mobility. Since John is determined to stay at his new work place for a couple of years and I have school, we figured mobility is not a huge issue for now. (I hope we don't regret it later.) Not as if leases don't bind you for at least a year anyway.
Obviously we can never time the market, but we're hoping the house would appreciate, which will give us some return as opposed to rent.
That said, the house still needs a LOT of work. The floors are hideous with a bunch of mismatched carpets, materials, and textures, and the paint job is mediocre. Yellow isn't the most appealing color to me, especially if it spans across the entire interior. So even though we bought the home at a "good market price", we still have to fork out money if we want to make changes to suit our tastes. DIY projects here we come.
Hopefully we don't break the bank! Will update with pictures once the minor renovations are completed. The ceilings are already in the process of being upgraded as I write this. Can't wait to see how the end product would look. Okay, I take it back. I guess I'm feeling more excited now!
Yeah, yeah, I know rent rates is driven by demand, but is there REALLY that much demand in Davis to induce a 17% increase?! I don't think Davis is particularly awesome to live in unless you are a retiree or a student at UC Davis. And I don't think the increase in incoming students can skyrocket by that much every year. Furthermore, is a beat-up apartment like our even worth $1445? Everything seems so inflated.
When we found out that interest rates for a home mortgage are at an all time low--3.3%--and that homes in Sacramento are fairly priced, purchasing a home as a means to "control rent" sounded like a pretty practical alternative. The only problem is that owning a home limits work opportunities due to limited mobility. Since John is determined to stay at his new work place for a couple of years and I have school, we figured mobility is not a huge issue for now. (I hope we don't regret it later.) Not as if leases don't bind you for at least a year anyway.
Obviously we can never time the market, but we're hoping the house would appreciate, which will give us some return as opposed to rent.
That said, the house still needs a LOT of work. The floors are hideous with a bunch of mismatched carpets, materials, and textures, and the paint job is mediocre. Yellow isn't the most appealing color to me, especially if it spans across the entire interior. So even though we bought the home at a "good market price", we still have to fork out money if we want to make changes to suit our tastes. DIY projects here we come.
Hopefully we don't break the bank! Will update with pictures once the minor renovations are completed. The ceilings are already in the process of being upgraded as I write this. Can't wait to see how the end product would look. Okay, I take it back. I guess I'm feeling more excited now!
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