Mixed bag

Our housing decision was made for us. We put in a very low offer to a bank on a duplex one street over. (kind of a short sale, kind of a foreclosure, not officially either.) We were hoping since they were anxious to get the property "off the books" they would just take the offer. Not. It probably didn't help that they just dropped the price by $100,000! They came back with a full price counter-offer and we really can't afford ANY counter offer. We offered only what we could afford if 1) we couldn't rent the lower level and 2) we wanted to take over the bottom and use it as a 4 bedroom house (which we would have to do eventually). They agreed to our absurdly low interest rate which they actually would have had to buy down, costing them money. We know that interest rates will probably increase in the next year and we will be priced out of the city market all together. So that means if we want to stay in the city, we will rent. If we want to buy, we move out. That's pretty much the deal unless something amazingly cheap comes along again.
It was a great learning process for us. Most of the housing market terms used above I never knew the meaning to before last week. The duplex was not our dream home, it was an opportunity to get into some real estate at a really, really low interest rate and actually affordable price for a 4 bedroom "house" in exactly the location we wanted. But I think we are relieved as well. It would have been a scary thing to have a mortgage we could barely make if we didn't rent out the bottom.
It was fun to see Stephen's excitement about the improvement possibilities around the house. Our "agent"(friend of the family) said young couples never want to buy anything that's not perfect. When Stephen pointed out how a closet could be fixed just by re-hanging the door, she looked at him like he had horns growing out of his head. Pretty funny. I guess she hasn't shown too many houses to Hunt boys : ).
Meanwhile, I am glad for my little apartment and the fact that my budget still allows for a cupcakes royale now and then! I was working next to one last night and when I dropped by, it was happy hour! Buy 3, get 3 free. Now THAT is exciting.