Buying in SE NH

atmay

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Only 3%?? That's scary. Doesn't that put you under water for the first couple of years of ownership? That's how my military buddies got into a bad financial situation... those 0% VA loans are pretty predatory.
I put 3% down on my house, and my lady put 0% on hers through the VA.

We’ve never not had equity in either property.
 

TrackDayRdr

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If you live in NH and work in MA you will still pay MA income taxes along with NH real estate taxes. While NH is famous for "no income tax" they have fees...on everything. If you are self-employed there is an 8% tax on business income (exclusive of your "compensation") and an archaic tax system that will require records for things you might not be aware of. If you have questions, connect with a CPA who is aware of the way the two tax systems work and follow their advice. Coincidentally, I'm a CPA - let me know if you have questions.
 

SKumar

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I lived in Portsmouth two different times. The second time I bought, then after moving out rented it for a couple years. I regret selling it. Portsmouth is a great place to live.
Worth the price of admission in a sellers market?
 

boiler_eng

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Yeah I’ve accepted that shooting on my own land is never going to happen where I’m looking. Not without another real estate crash bringing prices back to reasonable. My absolute needs are 3 bedroom 1.5 bath with roof and siding in great shape. 2+ car garage as well, attached or not isn’t a care as long as it’s a quick scoot out the door to it.
My “comfortable” all together payment (taxes, mortgage, ins., etc.) is around $1700/mo. Allows me to still save for future repairs and doesn’t leave us house poor with school loans and car payments.
But until we have close to $30k+ between us it’s kind of moot.
The $30K, is that including or outside of Closing costs, moving, larger emergency/repair fund due to house, slush fund for if rental lease and closing don't line up so you have to float some multi payment months, additional furnishings due to more room, yard equipment, more tools, first year of home insurance, cash to pay taxes on investments cashed in, etc.

The richest I ever felt was cutting checks to pay for a house, the poorest was looking back 6 mo later on how little I saved. (4 months of double payments + lots of first time expenses meant I was barely cashflow positive the first few months.) Also, beware that houses can tend to make babies if you aren't careful.
 

DispositionMatrix

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Greenland, Stratham, and the non-beachy portions of Hampton/No Hampton will provide you with a much more satisfying bang for your buck right now, I think. Portsmouth proper is great and all, but hella spendy.
It's all kind of dense. If you don't mind being packed in UK-style, the seacoast region is for you.
 
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If you live in NH and work in MA you will still pay MA income taxes along with NH real estate taxes. While NH is famous for "no income tax" they have fees...on everything. If you are self-employed there is an 8% tax on business income (exclusive of your "compensation") and an archaic tax system that will require records for things you might not be aware of. If you have questions, connect with a CPA who is aware of the way the two tax systems work and follow their advice. Coincidentally, I'm a CPA - let me know if you have questions.
This is a necessary evil for a shit ton of people. I don't really know why it gets brought up so much as yes, it is a thing, but my equivalent position in NH is going to make ~30%+ less of the bat immediately. Shit, there are places in NH that pay 60% less for the same exact position than MA's equivalent. Worth the drive? f***. Yes.
 

DarthRevan

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This'll limit you to a small corner of southeastern NH. I'd go as far off from the tourists and interstate highways as you can get and still be within "commutable distance" of Beverly.
Stratham/Exeter area is good for this.
I work in Nashua/Merrimack so I really don’t want the seacoast area. I really wish she’d be more willing to look for work in NH but at least she’s open enough to move out of MA...

The $30K, is that including or outside of Closing costs, moving, larger emergency/repair fund due to house, slush fund for if rental lease and closing don't line up so you have to float some multi payment months, additional furnishings due to more room, yard equipment, more tools, first year of home insurance, cash to pay taxes on investments cashed in, etc.

The richest I ever felt was cutting checks to pay for a house, the poorest was looking back 6 mo later on how little I saved. (4 months of double payments + lots of first time expenses meant I was barely cashflow positive the first few months.) Also, beware that houses can tend to make babies if you aren't careful.
As for covering months of rent we’re in a very fortunate position where it’s a third floor apt of her parents house. They’ve been saving half of the paid rent for us to use as a down payment in the future. In addition to what we save we will also have a little extra cash to help with any additional extras that might pop up.
As for moving expenses, we don’t really have much to take with us aside from clothes, the sofas, guns, and some knick knacks. Thankfully there’s a pickup in the family so beer and pizza should be the only expenses there.
 

SKumar

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Greenland, Stratham, and the non-beachy portions of Hampton/No Hampton will provide you with a much more satisfying bang for your buck right now, I think. Portsmouth proper is great and all, but hella spendy.
I'm a young guy in my 30s. No wife, no kids, no mortgage. Free as a bird. Ideally, I want to step out of my door and walk into the action. On weekends, I want to jet up into the mountains and lakes.
Between me and my father, we're looking to buy with cash. I want it as a bachelor pad, he wants it as an investment property.

Here's where I'm stuck: on top of Portsmouth's prices being a highly desirable area, it's also a sellers market. I can hold off and save until I prices come down, or I opt out until I'm older and want to live in the suburbs..
 
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How so? I have one and I havent noticed anything out of the ordinary with it. What am I missing?
If you had to sell the property for any reason within a couple years of purchasing, you would owe money.

Being underwater isn't ideal, but if you have no plans on moving/selling, it isn't inherently bad to wait out the storm. It really depends on how you got underwater. If you're underwater due to a low or 0% down mortgage, that corrects itself in time. If you're underwater because the floor dropped out of the housing market, then that's beyond your control and if you can weather it, the market may eventually correct itself as long as your home was correctly appraised in the first place. The one way you never want to be underwater is from a bidding war on a piece of property that artificially inflates the price. If that's how one lands underwater, you basically did that to yourself.
Therein lies the problem. If we have another 2007-8 collapse, the hosuing market and job market are (somewhat) linked. If you lose your job, can't afford to pay your mortgage, AND your house value goes down you'll end up in one of those tent cities. I have seen it first hand.

I put 3% down on my house, and my lady put 0% on hers through the VA.

We’ve never not had equity in either property.
How is that possible? Between closing costs and realtor fees, theres almost no way you'd have equity at 0-3% down.
 

NH_Realtor

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Greenland, Stratham, and the non-beachy portions of Hampton/No Hampton will provide you with a much more satisfying bang for your buck right now, I think. Portsmouth proper is great and all, but hella spendy.
Problem is availability in Greenland and the taxes in Stratham. Hampton's ok, North Hampton is probably the best of the bunch but they're coming up against ridiculous town spending raising taxes. Learned alot about this during my (failed) run for state rep, my district is Portsmouth, Greenland Newington and North Hampton.

The availability problem is really all throughout the seacoast and other area's right now. We need inventory big time.
 

ReluctantDecoy

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Therein lies the problem. If we have another 2007-8 collapse, the hosuing market and job market are (somewhat) linked. If you lose your job, can't afford to pay your mortgage, AND your house value goes down you'll end up in one of those tent cities. I have seen it first hand.
That's a possibility, but also a bit of a perfect (sh*t) storm. That's why it is important to establish homestead when buying, and preferably not be house-poor (ie. not putting 100% of liquidity into monthly mortgage payments).
 

atmay

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Problem is availability in Greenland and the taxes in Stratham. Hampton's ok, North Hampton is probably the best of the bunch but they're coming up against ridiculous town spending raising taxes. Learned alot about this during my (failed) run for state rep, my district is Portsmouth, Greenland Newington and North Hampton.

The availability problem is really all throughout the seacoast and other area's right now. We need inventory big time.
We didn’t think the taxes in Stratham were terribly absurd, compared to some of the other towns we were looking at.

How is that possible? Between closing costs and realtor fees, theres almost no way you'd have equity at 0-3% down.
Don’t buy a house that appraises for exactly what you’re paying for it, that’s how.

I had ~15% equity in my house as soon as the ink was dry on the title.
 

atmay

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I'm a young guy in my 30s. No wife, no kids, no mortgage. Free as a bird. Ideally, I want to step out of my door and walk into the action. On weekends, I want to jet up into the mountains and lakes.
Between me and my father, we're looking to buy with cash. I want it as a bachelor pad, he wants it as an investment property.

Here's where I'm stuck: on top of Portsmouth's prices being a highly desirable area, it's also a sellers market. I can hold off and save until I prices come down, or I opt out until I'm older and want to live in the suburbs..
Yeah, anywhere that isn’t the very expensive part of Portsmouth isn’t going to do that for you. We’re a 10-15min drive from downtown, and it’s basically the boondocks.
 

NH_Realtor

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We didn’t think the taxes in Stratham were terribly absurd, compared to some of the other towns we were looking at.



Don’t buy a house that appraises for exactly what you’re paying for it, that’s how.

I had ~15% equity in my house as soon as the ink was dry on the title.
They're not that bad comparatively to most other towns, especially Exeter. I'm comparing it to Portsmouth and I shouldn't be, I'm just very anti tax. I really like Stratham as a town though, sounds like you're just down the road from me. I'm right by Pease.
 

atmay

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They're not that bad comparatively to most other towns, especially Exeter. I'm comparing it to Portsmouth and I shouldn't be, I'm just very anti tax. I really like Stratham as a town though, sounds like you're just down the road from me. I'm right by Pease.
The house I own is in North Berwick. All of NH was a bit of a shock when it came to taxes...

But yeah, we’re not not too far from Pease. Kinda across the street from the hill park.
 

jron

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Only 3%?? That's scary. Doesn't that put you under water for the first couple of years of ownership? That's how my military buddies got into a bad financial situation... those 0% VA loans are pretty predatory.
Federal minimum downpayment is 3.5%. The days of 20% are long gone for the average working man, median house prices nearly quadrupled since the 80's.
 

Kevin_NH

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Therein lies the problem. If we have another 2007-8 collapse, the hosuing market and job market are (somewhat) linked. If you lose your job, can't afford to pay your mortgage, AND your house value goes down you'll end up in one of those tent cities. I have seen it first hand.
That's a possibility, but also a bit of a perfect (sh*t) storm. That's why it is important to establish homestead when buying, and preferably not be house-poor (ie. not putting 100% of liquidity into monthly mortgage payments).
Homestead in New Hampshire is covered in RSA 480:1 & 529:20; unlike some other states, there's no concept of "establishing homestead"; under NH state law, equity protection is automatic (Increased in 2016 to $120K/240K for single/married).
 

NH_Realtor

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Federal minimum downpayment is 3.5%. The days of 20% are long gone for the average working man, median house prices nearly quadrupled since the 80's.
If the town is approved USDA will do 0% down rural development loan. I was surprised when I helped some friends of ours buy in Pembroke and it was an approved town.
 

boiler_eng

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I work in Nashua/Merrimack so I really don’t want the seacoast area. I really wish she’d be more willing to look for work in NH but at least she’s open enough to move out of MA...


As for covering months of rent we’re in a very fortunate position where it’s a third floor apt of her parents house. They’ve been saving half of the paid rent for us to use as a down payment in the future. In addition to what we save we will also have a little extra cash to help with any additional extras that might pop up.
As for moving expenses, we don’t really have much to take with us aside from clothes, the sofas, guns, and some knick knacks. Thankfully there’s a pickup in the family so beer and pizza should be the only expenses there.
Yeah sounds like a good situation. Just make sure to model your costs well so you don't end up with a payment that is difficult when the rest of life comes along.
 
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Federal minimum downpayment is 3.5%. The days of 20% are long gone for the average working man, median house prices nearly quadrupled since the 80's.

Yeah and the gov't will also loan you $150K for a degree in Gender Studies. Doesn't mean its a good idea...
 
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Wind yourself around Great Bay and head north of Exeter toward Newmarket or a bit west into Epping and Raymond.
The tween towns (between Exeter and Manchester) are close to things and still inexpensive...with room for shooting.
 

edmorseiii

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This is a necessary evil for a shit ton of people. I don't really know why it gets brought up so much as yes, it is a thing, but my equivalent position in NH is going to make ~30%+ less of the bat immediately. Shit, there are places in NH that pay 60% less for the same exact position than MA's equivalent. Worth the drive? f***. Yes.
STFU everyone else, who let you back in?

[kiss]
 
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If you had to sell the property for any reason within a couple years of purchasing, you would owe money.
Well the options arent really very realistic for most 1st time home buyers, especially in the fine state of Massachusetts. PMI is basically hepatitis C of the finance world. How can one make a mortgage even more miserable? Why hello PMI. Yes, I'd love to pay $20,000+ of additional bullshit to have the pleasure of owning a house in a place I don't want to live in. How did you know?

The days of 20% down payments are over for most 1st time buyers. With 2 groups of people battling for the death over bragging rights: People who sell narcotics and people whose parents provide them with insane amounts of cash. Not to mention that most people who do put cash down on a house don't actually put 20% down since that is an insane amount of money to have floating around.

Keeping with the general theme of my life, I lucked out and bought my house in a "low" period of the local market. And buy low I mean I only had to use half a tube of lube on myself to be able to finish the deal (think of the savings!). I put zero down. Because I had approximately zero dollars in my bank account because I have a job thats sole purpose was to provide a landlord with income. Savings? Hilarious! Anywho, even with zero down the market went up so ridiculously fast that I had equity on my home almost immediately. Within 6 months I think. I now have over $150,000 of equity into my lovely home that I don't want in a place I dont want to live in under 6 years.

Is the fact that my home value has gone up over $110,000 in 5 years an indication that the housing market is smoking crack? Yes. The housing market is smoking so much crack infact that it's starting to defecate in the streets. And theres one thing Dench is going to do, and thats slip on said pile of poo-poo, bang my head off the ground and die before I can even cash out on said sexy equity without spending it all in Le Village Gai in Montreal like a real man.

I just hope in the end the banks find more ways to make money off people. Retarded mortgages? Yes. Student loans that not eve Jesus H Christ can default out of? Please. I mean shit, take my money!

Yeah and the gov't will also loan you $150K for a degree in Gender Studies. Doesn't mean its a good idea...
I know this has become an easy cliche to take shots at the bad choices that children make but it only serves to conceal the real issue. There are plenty of legit degrees that plenty of people graduate with who are unable to find positions that pay enough for a "normal" life style.

Sure, the dumb degrees are dumb, hur dur, we know. They have always been dumb. But the thing thats actually dumb are degrees that are very expensive that have job markets that are paying like it's 1988 still.

I was just looking at getting my BS. Since I have milked the GI Bill 100% dry I actually have to pay for this. The following is so retarded that I want to preface it by saying it's true and I've checked the math. If I go from an AS to a BS in my field the raise earned from said upgrade will take over 42 years to pay for the degree at current pay rates not including inflation or pay raises.

So Denchy just hit that red X on her browser.

Federal minimum downpayment is 3.5%. The days of 20% are long gone for the average working man, median house prices nearly quadrupled since the 80's.
I'm not sure how people don't seem to understand how different the housing market is now compared to any point pre 2008 nuclear holocaust bail out extravaganza. When my grandparents bought their 1st homes in the earl 1960's both of them did so on a single income. Both of these loans were for amounts that were approximately 2 years of their gross pay. One of the houses is still owned by said grandparents. The house now using median income of an individual in it's zip is about 9 years gross income. Even if a person had a spouse who makes the median along side we're still talking about a loan thats 2x more of a nightmare than grannies. Not to mention other costs that are out of control, such as child care which is starting to become a running gag to see how high it can get. Also student loan, etc.

basically the 30 year mortgage obliterated the housing market and subsidized loans did the same for student loans. Since the bank can't come and take your degree away when you can't pay the loan they've worked hard over the past 40 years to get it to where it is now - next to impossible to defualt on.

And the best part is people support the current student loan debt thing as if it's a legit thing and a lesson people can learn from. It's a f***ing scam. the same banks who changed the rules are the same group of people who got bailed out when they abused the housing market so hard for so long it fell apart.

brb while i open a savings account for money i dont have that earns less interest than inflation devalues. What a deal!
 
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C. Stockwell

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You think people don't put 20% down? I just had to put 25% down on a house I closed on a month ago.
The point was that most first-time buyers don't put 20% down. Not all first-time buyers. You are a sample size of one and are you representative of the first-time home buyer market?
 
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