Many or all of the items featured here are from our partners who compensate us. This may influence which products we blog about and where and how the item appears on a page. Nevertheless, this does not influence our evaluations. Our viewpoints are our own.
Lauren Byrne prepares to rent out her Seattle condo next year. In this series, NerdWallet interviews new property owners throughout the nation about their unique homebuying journeys and the financial decisions that assisted them
along the way. Seattle’s real estate market is lastly starting to cool, which’s excellent news for the hordes of youths who continue to flock to the Pacific Northwest tech center. But Lauren Byrne, a 26-year-old Nordstrom purchaser, bought a$ 390,000 apartment with her boyfriend, Zach, in December 2017, when the market was still hot.( The couple split the deposit. )Byrne, who studied finance in college and also runs an individual finance blog site, purchased the condominium as an investment home. She and Zach live there now, but they plan to rent it out next year. We spoke to Byrne about her homebuying journey, how she saved, and her one significant regret. She dealt with Zach’s father, Doug McKiernan, who is a property representative; he shared his recommendations for novice purchasers in the area.( This transcript has been gently edited for clearness and length. ) Lauren Byrne and her boyfriend, Zach, bought their Seattle condo in December 2017. What brought you to Seattle? I’m originally from Ireland. My household immigrated to Seattle when I was 3. A great deal of Irish people immigrate to New york city City and Boston, however my family had good friends in Vancouver, British Columbia, so they wanted to be close to people they knew. I have actually grown up in the Seattle area for most of my life and went to college at Washington State University.
Seattle has actually altered a lot in terms of cost, the size of the population and dining establishments and activities. A great deal of people have actually been pressed out of the city.
Why did you choose to purchase a home in Seattle?
I had been renting in college and continued renting after I returned to Seattle for work. My moms and dads began acquiring financial investment residential or commercial properties around ten years ago, and it’s been truly great for them, so that motivated me.
What were you trying to find in a home?
My goal was to find a location I might lease rapidly and regularly with time. I wanted it to be close to downtown Seattle– near to workplaces, nightlife and restaurants– so that it would draw in rental interest. It didn’t require to have the most recent and greatest updates, however I wanted something that I didn’t have to put a lot of cash into after buying.
Lauren Byrne found her condo on the very first weekend she began looking
. What was your homebuying journey like? My lease on the home I was renting ended on Dec. 31, 2017, so I started looking in early October of that year. I found our place within the very first weekend of looking. We saw 6 put on Saturday, including our future home, and then went back on Sunday and decided to make an offer for $390,000– that was the asking cost– and we nearby mid-November. The deal was accepted right now. Our agent was able to negotiate for the seller to cover our closing costs too.
The owner had died, and the sale was being handled by a 3rd party who didn’t have an individual stake in the home and therefore wanted to finish up the sale as rapidly as possible.
How did you understand that the home was the one for you?
Based on my spending plan of $400,000, I understood I ‘d be limited to apartments. Most single-family houses were beginning at $800,000 at the time. The apartment has a garage, its own personal entryway and in-unit laundry. That made it more valuable for renting.
Some condominiums have a guideline that only a particular portion of the structure can be leased at the same time, but there was no such cap on this unit.
What’s your method to finance, and how did you conserve for the home?
My interest in financing began at a young age after seeing my moms and dads work very difficult and make sacrifices– they moved to the U.S. without a lot of connections or income to support themselves. They taught me how to handle money, and I wished to be successful to make their sacrifices worth it.
I have a truly balanced technique when it comes to conserving and cash. I certainly think it is necessary to take care of your future self. I follow the 50/30/20 budgeting method. I’ve always dedicated to saving or investing 20% of my $91,000 earnings. Because I started working, that 20% has gone into a different account that I do not see on a daily basis. I likewise get a perk every year and conserved that cash for my house purchase. But I also want to live a lifestyle that makes me happy, so that’s where the 30% is available in.
Existed any surprises or obstacles? Would you have done anything differently?
I met with a home loan broker simply a year out of college, 2 years before I made the purchase, and chose to wait and save more. But when I went through the procedure in 2015, I was really in a worse position because house prices had actually gone up greatly. Seeing just how much the marketplace blew up given that I met with the broker, in hindsight I would have shopped earlier because I did have enough to buy at the time.
What recommendations would you provide to someone thinking about transferring to Seattle?
Do not look at locations at face value; picture what they could be in the future. The public transport isn’t excellent once when you run out the town hall. If you look 10 miles out of the city center, it’s very challenging to get around, but the city is working on expanding its light rail system.
Guidance for novice house purchasers
Doug McKiernan assisted Lauren and Zach through the homebuying procedure, and he gave us a couple of ideas for novice purchasers in Seattle:
Consider South Seattle. Columbia City, in specific, is an appealing community about 4 1/2 miles from downtown Seattle. “South Seattle has removed,” he says. “There’s a lot of new advancement, and that’s where the cheaper land is.”
New to the city? Rent initially. “If you’re just relocating to Seattle, start by renting for at least six months till you discover which parts of the city you ‘d like to reside in, and consider your commute,” McKiernan says. “Traffic is terrible, so make certain you’re not investing two or three hours on the roadway every day.”
The marketplace is much better than it was. Seattle’s housing market utilized to be among the hottest in the country, however stock is growing now. “During the marketplace we were simply in, individuals were paying too much for houses and there were numerous multiple-offer scenarios. It’s decreased substantially because completion of June,” he says. “Now you have more options and less urgency.”
Be sincere with yourself. If buying a home in Seattle isn’t in the cards for you financially at the minute, that’s OK. “I always inform individuals not to be house rich and lifestyle poor,” McKiernan says. “Do something that fits within your methods and work with a lender prior to starting.”
Photos by Linda Dalton.
More homebuying stories: