Planning to buy a home

February 2, 2005

We've been talking about it for a couple months and recently made a decision to buy our own home this spring/summer. We had wanted to save more for a down payment, to lower the term of a mortgage but if we wait much longer any extra savings will be eaten by [http://pressherald.mainetoday.com/news/state/050129prices.shtml|rising house prices]. Once our income tax return arrives we will be looking in earnest (March/April). We're going to take the plunge and we're both excited and scared. Buying a house is much more permanent decision than renting and we will be starting to grow deeper roots in this area.

This weekend we took a Saturday shopping trip to Portland and once again pined to live in this much more urban centre. We started talking about the possibility of moving to the [http://www.visitportland.com/default.aspx|greater Portland] area. It has so much to offer: beautiful New England architecture, a seaside working port and inland bay, a cobble stoned shopping district, a variety of vegetarian eateries, extensive arts and culture, oceanside parks and beaches, networks of community minded people. Not to mention a generally different crowd of people - more cosmopolitan, less rural mentality (read: less country hicks). It also has a thriving Vineyard church and is closer to Damien's employer in Boston. But that's not all it has, it also has a much more expensive housing market. So, although Portland has so much that appeals to us to live comfortably on a single income would be unrealistic for our family.

In comparison, the Lewiston/Auburn area has Willow Pond Farms, Range Pond, [http://www.bates.edu/index.xml|Bates College] - a Nationally renouned private college (university) that supports a great deal of culture and arts, Lost Valley Ski Hill, a couple Y's and many up and coming downtown revitalization projects that will increase the area's value and bring more restaurants, recreation, shopping etc. to the area. It also has many gorgeous neighborhoods, ours being one. We are getting connected in the local homeschooling group and are finding places to contribute in developing the broader community (not just our neighborhood). And perhaps most importantly this area has people we love and who love us. Friends who stop by on a moment's notice, church family who provides for our spiritual, emotional and physical needs. As an interesting note the population of Lewiston/Auburn is roughly the same as Portland's (about 60,00) so it's not like we live in a small rural town.

Having moved several times we know that we can make friends wherever we go, as long as we get plugged into a good church we'll be fine. But it's time to start putting roots down and building equity in a home. Part of me is scared because as much as I want to settle somewhere I don't want to feel trapped. I've enjoyed the experience of living different places, seeing different things and meeting so many wonderful people. I have a real hard time imagining living in one spot for 20 years. So, I'm afraid that we'll buy a home in Lewiston/Auburn and then have to stay because this is what we have settled into. Also, it's difficult to think about living permanently so far away from family - so, why don't some of you move to the east coast! I don't know if any of this makes sense but I'm coming to realize that I have a bit of wanderlust to live different places, try new things, meet new people. Life's too short to stay in one place!

Despite all those contradictory emotions I am very excited about buying a "first" home. Our Edmonton home didn't really count seeing as we didn't live there or have any emotional attachment to it. I'm excited about moving in a positive financial direction and having a place to call our own.

We'll keep you posted on our progress.

Anonymous on Feb. 3, 2005, 7:12 a.m.

Believe it or not, most people don't stay in the first home they buy for 20 years. Most people buy a modest first home (something cheaper with lower payments) and build equity in it, then they move to a higher priced home that suits their needs better, and then when their family is all grown, they downsize once or twice more. So looking at it this way, it is not necessary to feel "trapped" when you buy a home. Most people stay in their first home at least 5 years to build equity in it. This is accomplished two ways. First, you are paying down a mortgage and second, properties often increase about 10% a year, (sometimes more, sometimes less, but generally 10% is a realistic number). So in say, 5 years your home could be worth 30% - 50% more than what you paid for it, especially if you have done a few upgrades to maintain or improve it's value. If you were to sell at this time, it's true that other homes you are looking at will also cost more but you will have a much bigger down payment to put on your next home and hopefully your salary has kept up with the rising cost of living so you can afford any increase in payment. So buying a home is more like buying a really big "piggy bank". It forces you to save while you enjoy living in it. Life is so short, the sooner you can get into the "piggy bank house" the better. In our lifetime we have purchased 5 homes (one was a mobile home) and we will probably purchase 2 more before all is said and done (part of our downsize plan).

It would probably be wise to look closer to where Damien works to cut down on his driving if this is at all possible. This is also more economical on gas and wear and tear on your car. Even if work was only a 1 hour drive, it would be easier. If you are going to move anyways why not move a little closer? You can always make new friends and then you would be doubling your circle of friends (you can still keep your old friends and make new ones too).

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Anonymous on Feb. 3, 2005, 4:10 p.m.

There are a couple factors to consider in moving closer to Damien's job. 1) Our long term goal is for Damien to stay at home and not move back to an office job so, we don't "need" to be close to work. 2) Damien's employer supplies Damien with a car and pays for his gas and car maintenance - so that's not a concern for us. 3) Damien only drives to Boston once/week. He goes Tuesday am and leaves Wed afternoon. That's the only driving he needs to do.
4)Housing as you get closer to Boston gets much more expensive. An equivalent house in Portland area - the only area we really want to live closer to Boston, costs $100,000 extra, not $10,000. We want and need to (due to Visa) restrictions a one income lifestyle.

So, these are all factors for us to consider.

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Anonymous on Feb. 5, 2005, 1:43 a.m.

Good for you Renee and Damien! This is so exciting! Happy house shopping! (:lol:)

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Anonymous on Feb. 6, 2005, 7:55 p.m.

I just want to say that I really look up to you for having the strength to pack up and move far away from family. I pray one day I can have the same strength.

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