Boise Homes Under $150,000: Yes and No
The Idaho Statesman printed an article today about Boise homes available for sale under $150,000. Now, I think the article is pretty much junk as it is more of an ad for a couple of agents than real news. I also think it is somewhat misleading in an attempt to encourage people to go out and buy a home. The majority of my business is under $200,000, so I spend a lot of time looking in this price range. Between $150,000 and $200,000 there are a lot of newer, nice homes for sale, but when you start looking under $150,000 you’ll find older, smaller homes that may need some updating.
Don’t get me wrong here, I’m all for home ownership, but I don’t think this article is very realistic in what it is telling the general public. Right now, you can rent a 3 bed, 2 bath, newer home in Boise worth $200,000-$220,000 for $950 a month (and if you want to, I’ll give you the address). If you wanted to buy that home with no money down, your payment BEFORE taxes and insurance would be $1,199.10, assuming $200,000 at 6% fixed for 30 years. Throw in taxes and insurance and you’ll be around $1,350 a month.
If you want to stay at $950 a month you can still own a home. However, including taxes and insurance, you really couldn’t buy something for more than $145,000. In this price range, you’ll be getting a lot less home and fewer amenities than the rental example above. You will be a homeowner, but you will have to make short-term sacrifices in order to take advantage of the long-term benefits.
I know this because when I bought my first home in 2001, I really didn’t like it. The apartment I had been living in was comfortable and a whole lot cheaper for about the same amount of space. In fact, the home I ended up buying was the very first one I looked at and I crossed it off the list immediately. It was only after looking at the other options that I came back to it. However, buying that home and living there for four years allowed me to build some equity and I was able to buy my second home with which I am much happier. If I had rented for those four years, I wouldn’t have been able to buy my current home, even if I had saved the difference between my rent and my mortgage for those four years (which we know 99% of people wouldn’t be able to do).
So, yes, you can buy a home for under $150,000, but you probably won’t be buying your dream home. However, if you don’t buy that first home, you may never be able to buy your dream home.
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