Rent or Own

George the original one · Wed Jul 28, 2010 6:19 pm

Can you get a mortgage for less than $100k? As I recall, most mortgage companies won't create a mortgage unless it's at least $100k.
In terms of rent vs. buy in ERE, a $60k home is equivalent to $200/mo rent at 4% safe withdrawl rate. In other words, well worth the other headaches.

JohnnyH · Post by **JohnnyH** » Wed Jul 28, 2010 6:45 pm

@Scott: Wow, those taxes are nearly 5% of the purchase price, that is quite considerable!
I'd hate to be in a expensive house in that area!

ScottfromMenominee · Post by **ScottfromMenominee** » Thu Jul 29, 2010 5:04 am

Property taxes are high on both sides of the Michigan / Wisconsin border here. That's a major consideration. On the other hand, the roads and sidewalks in the wealthier areas in town are in impeccable shape, including speediness in snow removal. That's a downside for those of us in the more "frugal" areas. Also, due to the bad economy, "For Sale" signs are seen on houses in every neighborhood. It's a buyers' market, big time.

JustChristine · Post by **JustChristine** » Thu Jul 29, 2010 1:27 pm

@George the original one: That may be the case in other areas of the country where property values are much higher, but here in the Midwest a mortgage under $100K is fairly common. Mine was $84K when I took it out and I have mine with a major bank.

ScottfromMenominee · Post by **ScottfromMenominee** » Thu Jul 29, 2010 5:48 pm

Average property values for communities around here are in the $60,000 to $70,000 range. Hence, the high property taxes. I don't know what the situation is in other states, but in the Midwest, property taxes (and the lottery scam) are used mostly to fund the local schools.

Seabourne · Post by **Seabourne** » Fri Jul 30, 2010 11:21 pm

MHB - how is the neighborhood that that house (or similar) are in? I've spent a lot of time in Door County growing up (and my sister in law is from there) so I know the climate. How nice is your town for folks? Is there really a bad part of town there?

ScottfromMenominee · Post by **ScottfromMenominee** » Sat Jul 31, 2010 4:27 am

Some of the very cheap houses are in some questionable areas. Menominee has an average rate for violent and property crime, while Marinette is well below average, although the worst neighborhood, Menekaunee, is there. This bad area extends across the Menekaunee bridge into the neighborhoods in Menominee west of downtown up to US 41 and 10th Avenue. I've been looking in both cities with the neighborhoods and walkability in mind. Also, once I'm ready to buy, the condition of the house will be in my sights. Right now, a house in Menominee I'm looking at is on the edge of an area filled with drug houses and bicycle thieves, and it's three blocks from my house! Another house I'm looking at in Marinette is a few blocks from a friend's house in a pristine neighborhood. I may move across the bridge in a year or two, who knows?