Loft in Detroit and property tax breaks

I am very close to putting down a deposit on a loft in Detroit. I really dig a development I saw over the weekend. The site is not complete and for that reason I think the price's are still relatively low. I will have to put a deposit down in the next two weeks if I am going to do it. The area is titled as a New Enterprise Zone (NEZ) and therefore the property taxes are next to nothing. For the next twelve years I will be receiving a discount of 95%. Not bad. The one thing that is holding me back a little is the income tax in Detroit. Presently the income tax in Detroit is at 2.55% which blows because you get nothing for it. It's almost like the City Council of Clowns decided to penalize the people who chose to stay in Detroit. Regardless, I think I still might do it.

Decreasing closing costs

I just read an interesting article about reducing closing costs. The article seemed to be geared more so toward refinancing but also offered some info for new homebuyers. Some of the points worth noting were things like challenge fees that seem extravagant and buddy up with your mortgage person. I can testify to that since I am using a friend to do my mortgage and he called me yesterday with a way to take $1750 off my closing costs. Rock Financial might be a chop shop but if you get a good person helping you they certainly have the capacity to hook you up. Regardless check out the article if you are interested.

Downtown Loft and Hot Sales Associate

I went downtown yesterday to check out a loft that was advertised as being in my price range. I didn't bother shaving or dressing particularily well since the last person to show me a loft was a dude. When I walked in wearing my flip flops, t-shirt, and jeans I was greeted by a ridiculously hot sales women at the door. Apparently she miss took me for a homeless person or at the very best a college student because she proceeded to ask me three or four questions clearly designed to make me leave. After explaining that I do not live in a garbage can, have a job, am not looking to rent, and am not a college student she agreed to tell me a little about the properties. While going over the some of the aspects of the loft she hit me with a price that definitely superceded my price range. Since I had worked so hard just to get to this point and she was a super hottie I prentended as if I was still interested in the loft. From there she explained the upgrade options in, what as far as I could tell, was foreign language. For 10 minutes she spoke I nodded like an idiot as if any thing she was saying had meaning to me. I fought the urge to ask if I could replace the granite counter tops with plywood to avoid exposing myself as a fraud. She didn't need to know what a schmuck I really am. After she was done babbling about fancy tiles and stupid lighitng, I walked outside and pretended to examine the building from a distance as if I were considering buying the whole thing. Buying a home is hard enough but when you throw beautiful salespeople it makes it even worse. If I didn't have a girlfriend I might have bought one of these lofts on the spot. Bastards.

Guide to Fixing and Flipping Homes

The Detroit Free Press has a write up on a book that claims to be a guide to flipping houses. The book was written by a couple that have spent their lives remodeling houses and also documented their work in syndicated columns, books, and TV appearances. The book offers a checklist about things to know and do before you sign the deal and also provides timelines for projects of the two month, six month, and one year variety. I find the book interesting because all of the houses I have looked at are in need of some level of repair and since my home repair skills do not extend past vacuuming I think I could use a guide of some sort.

Downtown Detroit Condo

I think I might go look at a condo or two in Downtown Detroit. I heard a rumor, and it may be just be a rumor, that people buying new residences in Detroit are getting out of paying the city tax for a few years. That is my major hold up about the city. When I lived at my parents it use to piss me off no end that the city was taking money out of my check each week and didn't do anything with the money. No snow removal, no nice park, no safety......NOT A DAMN THING. But if I can live in Detroit and not pay for the lack of resources it wouldn't be as bad. I wouldn't want to stay in the suburbs and spoil myself.

Foreclosed Homes

I went and looked at a foreclosed home yesterday. What a disaster! I am pretty sure that the people forgot some animal in the house because it smelled like piss and I think there was urine on the basement floor. The kitchen had some disguting and eery substance smeared on the cupboards and the pool was like a swamp. I am fairly certain I will not be buying that cesspool.

50 Year Mortgage

A handful of lenders began offering fifty year mortgages according to CNN Money. It appears to me that the idea of a mortgage for half a century is kind of a sucker bet. First of all it would take forever to build equity since you would probably be paying interest for a decade and a half. Second, it appears that the mortgage rates are not fixed so your payment could go up. The emergence of these types of loans seem to point to the fact that the real estate market is perfect for a dude like me to buy a first house and thatI need to get off my ass and buy ad damn home! Of course I am still going to bullshit because I am a coward......

Missed great real estate opportunity

I dragged my feet and missed out on the opportunity to buy a house I really liked in a neighborhood I loved. The house was priced far below market value and required a small amount of work. Nothing to really sweat. The aspect of the house that intrigued me the most was the location. The house was close to the lake and the mansions that line it. My thought was that since the house sat on a double lot if that area was ever specualted for condos or something it would be the first to be acquired. I have no reason to think that but it sounds good to me! Regardless, it is now a moot point. Now I have to find another house to miss out on.

Interest rate hike

Well, by sitting on my ass and not aggressively looking for a house I have cost myself more money. With the interest rates going up this week I have cost myself a yet to be determined amount of money. I figure with my dismal progress rate and coward attitude I should have everything lined up and ready to sign by 2012. Of course, by then, the market will probably have turned, houses will cost more than they are worth, and I will still be renting this stupid flat with the loud, drunk, tramp neighbors partying and befouling the ceiling of my room with her guy of the week. Is it a crime to break into someone's house to oil their squeaky bed?

Home Equity Credit Card 1% Below Prime?

Can anyone explain this to me? I'm not sure I entirely get it. Is the idea that you would be opening a credit card that has an APR one point below prime and that the lender is your own equity in your home? Does that make sense? If I were to buy a house that appraises for $160,000 and I only pay $150,000 for it can I open one of these to do updates or do I have to wait a few months? Any advice would be great.

Seller Concessions

Seller concessions are almost necessary for me. I went back to a house I really like yesterday and found out that it is bank owned. Being bank owned the probability of having a lower offer accepted is not good and even worse at receiving seller concessions. This kind of puts a damper on my plans. I have the cash to pay for closing but I was more interested in investing that into upgrades and repairs. This is way too hard.

Making an Offer on a House

I am considering making an offer on a house. My real estate agent found a property that claimed to be bank owned but it turns out the guys living there actually have the opportunity to keep their good credit if they can sell the house quick. The house seems to be priced under market value and looks like a good opportunity. I know I should seriously consider buying this house but I am nervous. Presently I am renting from a friend's brother and paying next to nothing leaving me with all kinds of disposable income. For example last week after returning from a trip to Palm Beach I bought roller blades, a kayak, and ate out every single night. It's nice to have the freedom to buy things on a whim but I guess I should suck it up and invest in a future instead of toys. True or False?