For the past 5 years I've been scrimping and saving and doing everything I can to finally become a homeowner. I've got a fair amount saved for a down payment, and can borrow enough to buy a "starter home" most places. I grew up an inlander in NJ and moved to the coast (no need for specifics) after school. I've been renting and loving it (2 miles to my break) for 6 years now, but I'm ready to buy. And the housing market suggests that I should. I've tried asking friends, family, co-workers, etc. for advice...but they just don't get it. ITS ALL ABOUT THE WAVES. I need to be close to the beach. That's the whole reason I moved down here in the first place. The options are: The Barrier Island and The first town over the bridge. Each has its own pros and cons. Pros of island living: Really close to the beach. Really close to work. Bike everywhere. It's cool. It's elite. Less crime. Low taxes. Quiet winters. Chicks. WAVES Cons: Obnoxious in the summer time. Not much bang for my buck in housing. My budget allows only a modest home or condo. No land. Elderly community. My brother lives here. Almost none of my friends live here. I work here. Boring as hell in the winter if theres no waves. Pros of living just offshore: Much cheaper housing, more land, I can truly AFFORD it. I'd actually have a workspace/garage/yard/driveway. Safer (floods,'canes). Public transportation. Cheaper groceries-seriously. More year-round locals who aren't 150 years old. Cons: Higher Taxes. Adds a few miles to my commute (to work and surf). Less biking. Not Cool/elite. Feels like I'd be settling for second best. Can still get rowdy in summer months. Impossible to get to Islandtown in timely fashion in summer months. Property unlikely to return on investment like island property. What do you guys think, as surfers...as economists...as familymen. I'm single so right now all I care about is proximity to waves and OPP! What would you do if you had 250k for a house?
Being close to waves - I get it. But I recommend you buy something that will increase in value, whether you need to put in that sweat equity, or the ol' buy low sell high. Most starter homes are not where you end up. Things change quick, family's grow. This could be your stepping stone to the beach front.
I live on the mainland side across from Assateague island in Maryland. Living here there is no option of island living since Assateague is all state and fed owned. It is the perfect place for me with a nice little house on a big lot with bay views on both sides. From what I see go on in Ocean City in the summer I think I would opt for the dry side of the bay. It gets crazy in there with no hope of easy movement on a Saturday in the summer, I think I would go nuts. You sound younger than me so the idea of girls wandering around all summer in bikinis is a pretty good deal if I was a young single guy. As far as an investment I don't think you could go wrong with either.
Other factors to consider are maintenance/upkeep and flood insurance premiums depending in what flood zone your new place would reside. Upkeep in a harsh ocean environment is not trivial. It's especially important to factor into the equation if you will be stretching your budget to afford a place near the ocean. I agree that cycle-wise, this is one of the best times to buy a house--ever. Just make sure you've got enough of an emergency fund to tide you through any unexpected emergencies (job loss, shark bites, hvac system dies, etc.) that could crop up. One rule of thumb is to have approx 8 months worth of living expenses stashed away. The last thing you'd want to have happen is to get foreclosed on, killing your chances of buying another place later, should you get married, etc.
All sounds like good advice. Thanks guys. I think i might be leaning towards moving offshore...just afraid I would be surfing less. I drive to my break as it is now anyway, so I really don't see what would impede me further. I've still got alot to think about.
To me, living on the island sounds better. Home value will be stable and easy surf checks means more unexpected sessions. Bicycle helps to avoid summer traffic.
Midlife said it well. I would probably go for more house, but I've got a family so thats the way I think now. I dont mind driving a little. Emergency fund is a must.
I'm no Warren Buffet, but the trend on interest rates (mortgage) is certainly in your favor at the moment. You might see 2.5% on a 15 year note fairly soon. Not there just yet. Worth waiting a bit for that. The savings on interest over 5, 10, 15 years is incredible if you can drive that rate as low as you can get it. Also, just guessing here, wouldn't it be a better time to purchase during late autumn / winter for the geographic locations that you're considering owning a home in? It's definitely an amazing time to be a buyer, as several guys have noted.
id def keep renting and put that cash into investments. homeownership is misleading...unless you buy it outright you are still renting...only now your landlord is the bank and you have to come up with a BIG security deposit
If you're single I'd say stay on the island. Your time in the water will definitely benefit. Who wants to sit in traffic @ hotel check-in time on a summer saturday just to check a minimal swell. But, if you have a bike you'll catch those swells that often only break during a small tide/wind window. Packing all of your crap in a car is still packing all of your crap in a car whether you're driving 10min or 40min. Plus you then have to find parking. Better to park your car on fri. and not get back in til mon. Plus, the amount of resort property is limited so it will usually hold more of its value when the market goes down and will be faster to regain value when the economy recovers.
My two cents and I will be as succinct as I can... I bought my first home (townhouse) after college a couple of years ago. I happen to live in VB. I passed up other places. I miss out on biking to the beach to move a few miles inland. You save money, avoid some of the issues as floods, corrosive saltwater, noise and the notorious condo fees. In terms of getting to the beach, one can adapt. Help a guy fix his boat or home and perhaps you can park at his place or find a place about a mile from the beach the lazy tourists typically miss/avoid, bring a bike (or chain it there if its feasible) and bike with your board to the beach. Don't get me wrong, I am just getting by, but it beats living with the parents and answering to a landlord. You call the shots! That is just dope. There are pros and cons of course. You are responsible for everything. I suggest one to be very picky. Check out those appliances. Find a home owned by old folks (they seem to leave a lot behind that can be of use). This is a buyers market no doubt. You will surf when there is no surf to save money (i.e. paddling down the beach). If you can live on the beach, afford it and out of the flood zone, I would do it. The beach is an addiction. It is stressful to say the least. If you are a handyman, its a good idea. All improvements will help you out. Equity, equity, equity! It's like Monopoly. Use the home as a launchpad for future endeavors. If they fail and you've rented that house out, move back to that particular beach town. Although there is much one can say about living in the East, you're still at a beach and that beats the lives most in this world must endure. Heck, you just might get that island one day and have everything to yourself (assuming that's your style)! I assume you're about my age and I hope this helps. Getting a home is an epic journey. Elementary science teaches that humans REQUIRE three things in order to survive...food, water and shelter. Good luck
Bad advise. The best thing I ever did financially was to buy my first house. I bought it back in the early 90's and paid $85,000 with a mortgage rate of 10%. Yes 10%! I lived in that house for 5 years refinanced once during that time to a lower rate. After those 5 years I sold the house at $92,000. Not a big jump even by late 80's standards. After it was sold I did the math and figured even with the expense of the interest I had completely broken even. By even I mean other than some minor cost of upkeep I had gotten all the money back that I put in so it was as if I had lived rent free for 5 years. I took that money put it in the bank and shopped for my current house. I bought a piece of land and built a house with the original money and now own my current house, have a piece of land as an investment, built a business and am considering buying another large tract of land to build a new house. I did all of this because of that original investment.
Buy someplace with good to excellent schools. That will always be a cushion against a decline in property values.
buy on the island, as close to the beach as possible. you will not reget it. bike/walk to the beach, more time in the water... is that not why you are there? now is the perfect time to buy. low interest rates and moderate relative prices. a primary residence near the beach is an investment and a home.
One last thing...what you pay in interest over the year on your mortgage becomes a tax return (assuming you file)! There's some economics, what you do with that money could go towards surfing.
I think a lot of it depends on what you like to do outside of the water, too. I'm married now and in my 40's but I could not possibly imagine being single and living on one of the barrier islands in NJ. Maybe some people could. But I needed a place where I could get more access to nightlife and the ability to meet a wide variety of people (women). Hell, even to just be able to see a decent movie besides multiplex garbage. I chose to live inland and find super cheap Sept-May rentals that gave me access to surf during swells. If you're content to tie fishing ties or shape boards or work on your novel all winter, then this is not an issue. But man, life in some of these shore towns seems deadening to me (just my preference, though) That said, I cannot emphasize enough how awesome it is to have a short commute. If you work near the beach, then, wow, the possibility of having work, home and surf all right there in biking or short drive distance is really, really enticing. And I also have to say that one of my all time regrets is not buying a house when I was younger and single. You can build up massive equity by maybe renting to a roommate. they're basically putting money in your pocket. Good move looking to buy no matter where you wind up. I'm hemming and hawing. But the middle ground in my scenario would be to buy a fixer upper in a town that has both beach and some culture/nightlife. For 250k you can find it.
