House options - advice needed

irinasak

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I have a very hard time trying to figure out what would be the best decision for us so I am looking for an objective fresh perspective. This situation has taken an emotional toll on me.

My bf, me and our three cats live in a rented one bedroom apartment. We have grown to hate it. Bad. For the first time in my life I have experienced anxiety attacks because of that apartment - everything is old, squeaks, the kitchen tiles are falling and we have an infiltration that sometimes gets dry. We do not know the owners as they do not live in this country, we pay the rent to some relative of theirs who is more than willing to help us with the minor stuff, not so much with replacing the tiles and the floors. We do not have the concept of landlords - here, individual people buy apartments which they can rent to other individual people, most of the time with no legal bond. My anxiety comes from a weird source: my downstairs neighbor is away with work 10 months/year, but in the months he is home he really likes to entertain people. Loud. I do not want to say anything to him because my three cats run around like a herd of hungry hippos at night and my NEUTERED male cat sings us the song of his people every morning at 4 am. So I guess we have this unspoken agreement that we bother each other but not complain. It is obvious the time to move, because I think all of us deserve and afford a better home. 

Here is where it gets complicated:

- my mother owns a three bedroom apartment in which she lives alone. She is willing to take us in, although she doesn't like cats (in general).

- my father owns a cottage and  a land in the city, but there is a very complicated legal situation there which I am trying to solve. He is willing to sell it as soon as possible and give us the money or allow us to build our own home on the land (which we can not do yet because of the legal issues of the land)

- my bf's parents own a two bedroom apartment and a huge country house 1 hour away from the city. They are planning to move to the country house in two-three years, when  they retire, and give us the apartment

- we have money for a small apartment (like the one we are living in right now) and the bank will give us enough money to buy a big house and land outside the city

THE OPTIONS:

1. Buy a small apartment with the money we have BUT why do that when my mom has a big one and his parents have one that will be ours in two-three years, and maybe have loud neighbors or be the loud neighbor?

2. Move in with my mother. Although I love that apartment, I grew up in it, I don't know if I am ok moving with my bf and my mother (moral issues). They both get along very well. We would have to keep the cats in one bedroom, a small hallway, a big bathroom and an enclosed balcony, at least at first (I don't think this is an issue for them, because they tend to stay in one room now anyway). We could use this as a temporary solution, until we figure out the issue with my father's land or until we find something better. And we could save some serious money.

3. THE DREAM: Buy a big home outside the city, have enough land to plant own tomatoes and stuff. THE DISADVANTAGES: have a bank debt for the rest of our lives, increase the expenses with gas and home maintenance and refuse all social life, as everyone we know lives in the city. Never go away on holidays as there is no one available to feed the cats, or pray to make new friends where we'll move. It is our dream to have a house like this, but we are probably not ready for the lifestyle yet.

4. Rent another place - even if I would find someone to accept three cats, there will be the same risks with loud neighbors or us being the loud neighbors. Plus we have so so many things hard to move, and in the end the efforts is too big for another temporary solution.

5. The most obvious option, I suck it up, take some Bach remedies and some camomile tea and stay here where we are until we figure out what to do. It is just frustrating that we have to pay (rent) to feel bad.

What to do, what to do?! My bf is a very calm whatever kind of guy, he is ok with any of the options, except with the buying a big expensive house right now (he says we should not hurry buying an expensive house and I am in a hurry to move).
 

red top rescue

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My personal recommendation would be to stay where you are at least for the time being.  You are blessed that the downstairs neighbor is only there two months out of the year!  I would recommend good ear plugs for sleeping (Macks silicone putty earplugs are cheap, comfy and very effective). 


You might also try making friends with your downstairs neighbor, not to criticize his noise and perhaps make him angry, but instead apologize for your cat's 4 AM serenades, which may make him less likely to ever complain, and might even make him think about his own noise. 

You can replace the tiles yourself and perhaps get a thick rug for the floor for less money than it would cost you to move.  It is also possible that if you make repairs and improve the place, you can submit receipts for materials and get credit towards your rent.  Most landlords will do this and appreciate the fact that their tenants are making the place better.  I do not understand what you mean by "an infiltation that sometimes gets dry," so I cannot make any recommendations specifically for that, but again, if it's something you could fix, the landlord might be willing to reimburse you for any items you buy, considering you are doing the work.

I think patience will save you money and aggravation, and you will have a better place in a few years.
 

swampwitch

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The first questions that come to mind are: what is the the price to income ratio where you live and Is Romania still in a housing bubble? 

As a general rule, if the price to income ratio is over 3-5%, housing is in the severely unaffordable range and financially you are much better off renting.  (I read that in Bucharest it is 11%.) 

You shouldn't have to be stressed two months of the year, though, I would recommend you move. You have to decide where, but personally I would go for free and save as much money as I can.  Move out as soon as you can, it doesn't have to be a permanent place for now, you can also move again later.

Where we live has a huge impact on our lives! Good luck.
 
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irinasak

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Thank you both for your responses. After a long talk and a long night, we decided against buying another apartment. So that leaves us with 4 options.

"An infiltration that sometimes gets dry" is in the bathroom, on the ceiling, from the common water pipe. Depending on how much water is used in the building, a corner of our bathroom ceiling gets wet. Sometimes, when there is less usage and it is hotter outside, it gets dry. And then it gets wet again. It is like a small small leakage, I guess. We do not have to pay for the repairing/replacement of the pipe, but we (or the owners) and the upstairs folk would have to pay for the walls - which have to be demolished on a small surface in order to get to the pipe. We decided to postpone this.

Bucharest (my city) has a 12.82 price to income ratio - http://www.numbeo.com/property-investment/rankings.jsp but it is a buyer's market - the offer is so much bigger than the request and the houses are about 35% cheaper than in 2008. The rent/month is the same (money) as the bank payment/month would be.

We shall see. Being a grown up is not fun.
 

swampwitch

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...The rent/month is the same (money) as the bank payment/month would be.
Even if the rent payment and the mortgage payment are equal, renting is still far cheaper.  I don't know how the housing market works in Romania, but here in North America there are additional considerations that buyers deal with (and renters don't).

1) cost of buying may include: paying inspector, adjustment costs, appraisal fee, land transfer tax, property survey, other taxes, title insurance, water quality inspection, hook-up fees, septic or sewage inspection, mold inspection, home insurance, appliances, window coverings, condo or strata fees

2) property taxes - can be a significant yearly expense

3) repairs in and around the house, including foundations, heating & cooling, perimeter drains, sewage or septic, electrical, plumbing, roof, in addition to costs of general maintenance and repairs

4) your deposit and other equity can be lost if house prices go down, while investing that deposit can bring you a 6-8% return

5) mortgage debt - the bank owns the house until you pay it off

6) being stuck living in one area and being at the mercy of the housing market if you want to move 

Either way, whether you buy or rent, the place is yours as long as you make the payment each month. People consider houses investments, but they receive no return on them unless they sell (and not always then).

Investing $500K at 7% will pay you $35K a year or about $3K per month. After 5 years, you will be $175K richer.

Buy a $500K house at 3% and you pay $69K interest over a 5-year term. Change the rate to 5% and you are paying $117K over 5 years.

On the other hand, if you have the financial resources, it's fine to buy a house as long as it's not more than 40% of your wealth, in my opinion.
 
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irinasak

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After some very complicated weeks of constant debating, calculating, going over and over and over the plans, after researching the housing market and every option there was, we have decided to go with THE DREAM: a house outside the city.

We decided to build a house on a 650 sq meters land (6996 sq ft).


We are at  about 10 km / 6 mi away from the city, in a somehow secluded residential small neighborhood. All the areas around Bucharest are quickly transforming in suburbs so it's getting harder to find a land bigger than 250 sq m / 2690 sq ft closer to the city. We are content with our 650 sq m land, but I am (not so) secretly hoping that we will buy more land on the left, our house being (for now) the last one built. We have all the utilities - electricity, gas and sewerage.

I marked with a red X the future house:


We received some money from my bf"s grandmother, enough for the down payment and for some furniture. The house will be payed with a loan from the bank. They already built the foundation, and we are hoping to move there in September. 

In the mean time, we have moved in with my mother. This is our forth week there. It is not so bad as I imagined - my cats seem to like her A LOT (maybe she has a weird energy) and she is starting to warm up to them. She doesn't pet them, but lets them rub on to her and she insists to let them out of our room to explore the rest of the house (to satisfy their curiosity she says, but I am pretty sure that after 4 years of solitude she likes having some souls around. I am starting to get the feeling that when we move it will be hard on her).

Because life is not perfect, this situation has brought up several things:

- my mother is not happy with our decision to buy a big land outside the city. She would have wanted for us a life IN the city, in a tiny apartment, surrounded by people. Everything I hate.

- my bf's mother confessed to my bf that she dislikes me. It came as a surprise, because in 4 years she never let anything show. Actually, I thought she liked me. She now said that I am making her son do only what I want, that he has no will of his own and that I am not putting enough money into this (ironic in so many ways, as she has been in my shoes when she married her husband)

- the discussion about marriage. I never ever wanted to be e bride. I am turning 30 this year and I still don't want to be a bride. Of course my bf's mother doesn't get it, as she wants for her son a grand wedding with at least 500 people. The thought alone could put me in a mental institution.

Anyway, we have a new phrase we're using a lot these days: this is the road, this is where we're going.
 

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Congratulations! Ten kilometers from the city sounds perfect - peace and quiet as well as a short commute. It's a shame that your bf's mother is pushing for a big wedding you don't want, but it won't be her wedding or marriage, so tough. :lol3:
 

Kat0121

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congratulations! It looks like things are working out the way they should. I wouldn't worry about what your BF's mother said. It seems to me like she's more upset that she's not getting her way. Your BF is a big boy. He can make his own decisions and from what you said, it sounds like the 2 of you discussed every option available to you at length before making a decision. 

I think It's nice that your Mom is warming up to your cats. I wouldn't be surprised if she ended up with one or two of her own after you move out! Cats are the best and having them around is addicting! 
 
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irinasak

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Thank you all for your replies.

I am the only one living my life every day, so I do the best I can. I have noticed this lack of empathy we humans have nowadays - so easy thinking we could live other people's lives better than they do. I see this with both our mothers and our older relatives, who lack the notion of respecting other people's choices. But enough ranting, I am grateful for their support, however it is.

We are currently debating if one of the doors should open to the left or to the right - who knew this was a decision to be made?
 
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