Home Buying in 30316>Question Details

tgarcia.84, Home Buyer in Atlanta, GA

Is it a good idea to buy a house in Atlanta (Cabbagetown/Grant Park/East Atlanta) if we have the 20% down payment but will probably sell in 3yrs?

Asked by tgarcia.84, Atlanta, GA Mon Jun 10, 2013

Or is this too risky in the current market?

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Answers

10
tgarcia,

I would love the opportunity to assess your options. It may be smart to obtain an adjustable rate mortgage if you are planning on selling short term. Feel free to give me a call to discuss. Brand Bank has been around Georgia since 1905.

Best,

George Cohen
Mortgage Banker
678.442.3401 Office
678.985.5923 Fax
gcohen@brandmortgage.com
apply online: gcohen.brandmortgage.com
NMLS# 75615 | 1078450
0 votes Thank Flag Link Tue Jul 2, 2013
Well no one will be able to predict what the market is in 3 years. But we can speak on the now and maybe give a bit of input into what is more probable.

I will say that we are in a sellers market especially within your price point. The inventory is low and when that happens prices increase. Also we see now that interest rates have begun to creep up.

Take the Grant Park area for example. Home buyers have been slugging it out to purchase homes in the area. I've seen numerous bidding wars. And the prices have definitely begun to rise. Here's another example; I had a listing there that everyone swore up and down it would sell for $225K to $235K. Eventually that home sold for $250K because the location (A hop skip and a jump from the park) was so great. There are a ton of factors that you must take into consideration.

My advice T. Would be to sit with a realtor and discuss the market. Discuss what is happening in the price point in the areas you are interested in and become as informed as possible. Then make a decision as to if you think now is a good time.

Not all realtors are after a sale. My first priority is and always will be to have my clients be able to make an informed choice. Education is the best weapon.

If you would like I would be happy to sit down and have a consultation with you at anytime with no pressure.
0 votes Thank Flag Link Tue Jun 11, 2013
Thanks for all the responses.

We are pre-approved for a fixed 4.5% loan.

I appreciate the input (though I worry that some of these answers are biased since realtors want to make a sale! ;) )

My major concern is whether it is too risky buying a place that we are going to want to sell so soon, given the upfront costs. I've done some Internet research and it seems to say that it's not smart to buy if you're moving out in under 5 (or even 10) years.

We do have the advantage of the down payment taken care of by a third party, but wouldn't it make more sense to just hold on to that and use it to buy a house that we know we will be in permanently?

I don't mind not making $$ off the sale in 3 years, I just want to break even, and people are saying that even that is wayyyy risky in such a short time frame.
0 votes Thank Flag Link Tue Jun 11, 2013
You wrote: "I don't mind not making $$ off the sale in 3 years, I just want to break even, and people are saying that even that is wayyyy risky in such a short time frame." whoever those people are, take their advice...
Flag Wed Jun 12, 2013
Best is to follow your own gut feelings. Only you can determine what is best for you. Best wishes.
Flag Tue Jun 11, 2013
If you consider an arm loan, consider what if you end up not selling your home in 3 years! Fixed Interest rates are pretty low right now so if I were you I would look into an ARM loan carefully.
0 votes Thank Flag Link Tue Jun 11, 2013
Amerisave - that's a gross generalization about prices. Stick to what you know - good advice on the ARM loan.

tgarcia.84 - in 30316, think quiet tree lined street, away from the primary borders, with ample covered parking, on a gorgeous lot and a minimum 3/2 with a basement if you are seeking value in the area. So many buyers fighting over mistaken buys today...

Also, think $175K-375K for a big range to find value in...starting with the sweetest 2/1's and moving into new builds - getting into the $400's and up will net some of the best properties in OP GP, and EAV - just know that you are stretching the limits when you move into that range - the limits of value.

Ask your financial advisor whether $40-80K in a property that you want to sell in 3 years at an 8% cost minimum makes sense...

I have permission to show a vacant house on the quiet end of EAV, on Edgemore near Gresham. a block from the EAV cliffside canyon.

He will unload it for $260. Comparables are selling for $265-280K. A sweet, mid-century modern "atomic ranch" on granite foundation on a corner lot, brick house on a full basement with a massive two car garage. let me know if you are interested.
0 votes Thank Flag Link Tue Jun 11, 2013
I don't have a financial adviser. Is that awful? I'm in my late 20s and don't have a ton of assets yet. I figured those were for millionaires! haha.
Flag Wed Jun 12, 2013
Thanks for your feedback Lee and the advice I gave as a lender. The advice I gave regarding the area, I gave as a neighbor, as I have lived in those neighborhoodssince 2006 and currently own two homes, one in Cabbagetown and one in Grant Park.
Flag Tue Jun 11, 2013
Good question, Cabbagetown and Grant Park are both hot areas. They are affordable and nearly filled with young professionals who love living just a mile from downtown Atlanta. Housing prices have increased over the last 10 years when new homeowners began discovering the area and started to renovate the often neglected homes. If you're planning on moving in 3 years, we would advise you to take advantage of low rates on a 3 or 5 year ARM.
0 votes Thank Flag Link Tue Jun 11, 2013
Who is your agent?

What is your price range?

Depending on location, I answer yes or no...

Is it too risky? What do your financial advisors recommend?
0 votes Thank Flag Link Tue Jun 11, 2013
No one can predict the future. My suggestion is to try to purchase a home that is a below value
and hope for the best. If in three years the market does not improve you can always rent it.
The areas are great in my opinion.
If you decide to purchase your home please consider me
as your buyer's agent.
Please click on my picture to view my profile and the services I offer.
Best wishes.
0 votes Thank Flag Link Mon Jun 10, 2013
I agree, if you can do it, it is a good idea to do so right now. Will this be your first home?
0 votes Thank Flag Link Mon Jun 10, 2013
Hi T,

I would say that it is a good idea. Especially in the Grant Park area. There is not a lot of inventory in Cabbagetown currently. When you consider East Atlanta I would focus more so on the EA Village area. The strongest neighborhood out of the three is the Grant Park neighborhood in my opinion. It is very popular with first time buyers, young families, full mature families, and well...lets just say it is a great area that attracts many walks of life.

I'd be happy to further discuss the different neighborhoods and what they have to offer with you anytime. Feel free to give me a call whenever you can.

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
Office: (404)541-3500
Direct: (678)656-5524
tylerwillisintown.kwrealty.com
0 votes Thank Flag Link Mon Jun 10, 2013
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