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Will you be a homeowner before you turn 35?
- Thread starter neutralgamer02
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Arcane Hayter
Member
You still need to carry some type of insurance too. You don't want to lose your investment to something stupid. I can guarantee that even with all those costs after its bought and paid for it won't touch what rent would be for the same house.
neutralgamer02
Member
Are maintenance costs really that much yearly if you don't buy a crap house?
It isn't like you replace your air conditioner, washing machines, and toilets every year. It would most likely be a low as changing a couple of lightbulbs most years.
Also, if you buy a new house the maintenance costs are going to nonexistant for your first few years unless you go around breaking stuff.
I always feel maintenance is overstated. Property taxes are an issue, but when that is all you pay after you pay off your mortgage, then that is a pretty good deal.
Also, tax deductions help to outset these costs.
RumblingRosco
Member
I bought 25% of my house at 22. The other 75% is split evenly between my parents (collectively representing 25% ownership), sister, and brother. We paid in full, no loan or anything. I could have bought it myself outright, but we instead went through this route so that I wouldn't have to touch my retirement funds.
I now technically rent the house, paying 25% of the rent to myself, but am also a part-owner of the house. This is funny because it allows me to take out an extremely cheap renter's insurance on my possessions. Also, when I finish my PhD in a few years, I'll likely move, and this makes it much easier to get it sold because my family can work on selling it if I have to up and leave suddenly for a new job. This allows for great leverage in regards to selling as prospective buyers won't really have me by the balls. Or, if I decide to live here long-term, I can buy my family's share.
I talked the previous owner down about 7% off their asking price, and they threw in enough furniture and other things that more or less saved me another 3%. I'm pretty happy talking them down 10%. A few months after purchase, the governments annual property reports valued my house not only at more than what I paid, but more than the price that was asked by the previous owners. So, my house is worth about 15% more than what I paid for it. Additionally, my dad and I have been doing minor repairs and I have been doing some nice cosmetic changes (taking down wallpaper from the 80's, rebuilding the koi pond, fixing the fence, etc) that should increase the value further by the time I'm looking to sell it in 4 years.
I live in central Illinois and the house was listed at $105,000, so by no means was it an overly expensive house. Finished attic, 1100 sq. ft., 2 bedroom, a recently built sunroom, an unfinished basement, 1 car garage, etc).
I now technically rent the house, paying 25% of the rent to myself, but am also a part-owner of the house. This is funny because it allows me to take out an extremely cheap renter's insurance on my possessions. Also, when I finish my PhD in a few years, I'll likely move, and this makes it much easier to get it sold because my family can work on selling it if I have to up and leave suddenly for a new job. This allows for great leverage in regards to selling as prospective buyers won't really have me by the balls. Or, if I decide to live here long-term, I can buy my family's share.
I talked the previous owner down about 7% off their asking price, and they threw in enough furniture and other things that more or less saved me another 3%. I'm pretty happy talking them down 10%. A few months after purchase, the governments annual property reports valued my house not only at more than what I paid, but more than the price that was asked by the previous owners. So, my house is worth about 15% more than what I paid for it. Additionally, my dad and I have been doing minor repairs and I have been doing some nice cosmetic changes (taking down wallpaper from the 80's, rebuilding the koi pond, fixing the fence, etc) that should increase the value further by the time I'm looking to sell it in 4 years.
I live in central Illinois and the house was listed at $105,000, so by no means was it an overly expensive house. Finished attic, 1100 sq. ft., 2 bedroom, a recently built sunroom, an unfinished basement, 1 car garage, etc).
AbortedWalrusFetus
Member
I bought a condo this year. It was $265,000, and I put 5% down. My interest rate was a bit higher because of that, 5.375%, but it was a good deal regardless. I could actually probably dump enough money into it to get 20% equity now, if I wanted to avoid PMI, but I am probably better off putting that money in other investments.
If you have the cash, now is a great time to buy. Home prices are at incredible lows and interest rates are at all time lows. Just do your research well and if you have the money and job stability you should be set.
Edit: I bought a place near Center City Philadelphia, in a rapidly gentrifying neighborhood. Also, I am 27.
If you have the cash, now is a great time to buy. Home prices are at incredible lows and interest rates are at all time lows. Just do your research well and if you have the money and job stability you should be set.
Edit: I bought a place near Center City Philadelphia, in a rapidly gentrifying neighborhood. Also, I am 27.
Home owners insurance is pretty cheap, actually.
bought one when I was 25, sold it this year, bought another with enough down payment to avoid PMI.
Worked out great, can't imagine renting with a family, particularly over the long haul. Have my dedicated theater room, 3 car garage, etc.
Renting is a great thing for single people or DINKs, particularly if you want to be out of the house, travel, etc.
Worked out great, can't imagine renting with a family, particularly over the long haul. Have my dedicated theater room, 3 car garage, etc.
Renting is a great thing for single people or DINKs, particularly if you want to be out of the house, travel, etc.
TheClimaxan
Member
Bought my first house 2 years ago at 24. So yes.
uh no, from everything I hear maintenance on houses is annoying and costly
Valkyr Junkie
Member
In my experience, maintaining the yard and pest control are the biggest recurring expenses.
GodfatherX
Member
I'm 29, will be married and likely a homeowner in the next 12 months, we will have our wedding paid for, a 20-25% down payment, and money left over for a used car. She is 24
parrotbeak
Member
I'm sure it depends a lot on the area. Here termite tenting is necessary every few years, and sometimes there will be high wind damage, but no freeze or snow. But those costs are there when you rent too; you're just paying all the owner's costs via rent, plus extra for their profit.
neutralgamer02
Member
Well, I'm just basing it off what my mother pays. She moved into her house in 2008. Most she had to pay most of those years was to get lightbulb. This year was a bit much, but she had to fix the kitchen disposer, ~$125, and replace a window net, ~$80. Total about $250 in repair.
It is definitely annoying, but it isn't like you are spending thousands of dollars to fix your home each year.
It is a overstated cost for most. Also, it can be deducted in taxes.
Conciliator
Banned
I bought a house at 23, then saved up and put down 20% equity on it a few years later(that was this June, I'm 27 now), and got a better interest rate when I refinaced(4.825%). That knocked out my PMI, so now my monthly payment is about $550 a month. Pretty cool! No plans to save up any more equity for now.
EDIT: I'm in upstate SC.
DOUBLE EDIT: My house a 3 bed/2 bath valued at $117k.
EDIT: I'm in upstate SC.
DOUBLE EDIT: My house a 3 bed/2 bath valued at $117k.
parrotbeak
Member
How much tax do you pay when you're retired though? I thought it was minimal as long as you wait until a certain age before tapping into your pre-tax retirement fund.
Mr. B Natural
Member
With the way employment has been depicted lately, I would imagine a lot of people are in your shoes.
How many companies these days hire for keeps? and how many employees are the same? I think moving around is part of life these days because of it and it does impact housing trends.
neutralgamer02
Member
You mean property taxes? I think I have seen some programs where if you are over a certain age then you can have your property taxes waived if you qualify. Don't know how widespread that is though.
AbortedWalrusFetus
Member
My home maintenance costs are completely offset by the energy savings I have. I moved from a 90+ year old apartment that cost me $250+ a month to keep heated in winter, to a brand new house that I haven't even had to turn the heat on in because of the low energy construction. The fact that it's new helps things too, with maintenance costs. I even got a property tax abatement, so my property taxes are only supposed to be just under $900/year for ten years.
The mortgage and condo fees are close to $2k a month though. That's the rough part.
The mortgage and condo fees are close to $2k a month though. That's the rough part.
Depends on what kind of job you have. I work for one of the biggest insurance companies in the US as an adjuster. As long as I continue to perform in my position to their standards, I'll have a job here. I can choose to move, and it may advance my career a little faster, but it is by all means not necessary.
dskillzhtown
keep your strippers out of my American football
Owning a home is better than I thought it would be. It is a huge payment every month, but I love it. My own place, don't have to worry about who my neighbors will be every 6 months, no need to worry about finding a parking spot if I get home late, no moving to a new place if the rent goes up. I just got so fed up with apartments and condos that I had to get my own house. The feeling of "my place" is great.
The only bad part for me was the actual construction. It was delayed a few times because of a dumb foreman so at the very end of the process it was stressful for everyone involved.
The only bad part for me was the actual construction. It was delayed a few times because of a dumb foreman so at the very end of the process it was stressful for everyone involved.
Good point about location.
We are in the Portland area and are looking at spending somewhere from $350,000 to $400,000 for a home and will wait for the one that best fits us.
I am curious to know how much people paid for their homes and where they are if they are under 24 and homeowners.
Mengy
wishes it were bannable to say mean things about Marvel
I bought my house 12 years ago for $165,000, I was 27 then. Been here ever since. Best decision I ever made. But the market and economy was different then. I would not want to be looking to buy a house in today's world.
It isn't the maintenance costs that you can think of that you need to worry about, it's the ones you can't anticipate. Owning a home costs money, no two ways around it. And the saying is true, work on the house is never done. I am thinking of taking out a home equity loan soon to pay for a few home improvement projects. With a house, that kind of stuff is always around the corner, no matter how new or nice the place is. It's just a part of home ownership...
It isn't the maintenance costs that you can think of that you need to worry about, it's the ones you can't anticipate. Owning a home costs money, no two ways around it. And the saying is true, work on the house is never done. I am thinking of taking out a home equity loan soon to pay for a few home improvement projects. With a house, that kind of stuff is always around the corner, no matter how new or nice the place is. It's just a part of home ownership...
parrotbeak
Member
No, people are talking about using maintenance and other homeowner costs as tax deductions, so I was just wondering what kind of taxes you are paying at that point.
Z
ZombieFred
Unconfirmed Member
I've almost finished buying a house here in the UK,a lovely huge three bedroom-semi detatch house, so I can say I will be having my own house at the age of 21 (but all my 40,000 pounds will be gone after everything haha) and I see it's going to be a lot of work for me in the next few months, that's for sure!
DeaconKnowledge
Member
Already own a home.
Looking at raising the capital to buy a second while still keeping the first and renting it out to subsidize the second.
Looking at raising the capital to buy a second while still keeping the first and renting it out to subsidize the second.
Alkohallick
Member
Well I bought my house July 13, 2007 (only remember the date cause it was a Friday the 13th lol) and lost my job May 08, yeah it sucked but I'm still there now and wouldn't trade it for the world. Not sure how much everybody here makes but I didn't have any money to put down just signed the paper work. 120,000 3br 2 bath, 2 car attached garage STL, MO
Edit: Turned 29 this past Sept.
Edit: Turned 29 this past Sept.
neutralgamer02
Member
Yeah, I was wondering that too, which is why I added it to the OP. Most good houses around the city that I live are 250k+. The single story old houses are the type of houses that cost 150k or less, unless you go to the suburbs. So, I am wondering if people in their early 20s are really able to buy the former or the later. Either way it is impressive, but I am looking to buy the former.
What are some examples of these costs then? I would like to know b/c I am playing to buy a newly built house 3 years from now and want to know what to expect. I really thought maintenance wasn't a big deal if you buy a new house.
We did, me being 25 at the time and my wife being 24. We bought our first home this year in June for $248k. It was a foreclosure that originally sold for $330k and the previous owners lost it after pulling all the equity out and owing around $450k on it. Between rent and what we were putting away in savings, we were putting away more than what our mortgage came out to be and we still have a good amount of cash for spending/saving. Like mentioned before, if you do buy, with the market being the way it is, have the seller pay closing costs. We wrote it into our offer that the seller would give us 3.5% of the total price being paid to go towards our closing costs which covered all the costs and even allowed us to buy down the interest rate which was a huge plus for us.
I had to get in to part ownership. So basically I own 50% of my house and the other 50% is owned by the council. I pay part mortgage, part rent. I did this all on my own saving up a good deposit and moved in to a brand new house. I did this when I was 25.
I feel really lucky to have got the house and I feel like I am not just "burning" money purely on rent each month, plus at the end of each year I can buy more of the house if I choose too.
If I am being honest having a mortgage isn't everything though, I mean for one it costs a lot if you decide to move again (at least in here in the UK). Where as with rent you can just hand in your notice and be on your merry way. Soon as you start to buy a house you have to bring in Solicitor's who again are not cheap, and do a lot of checks etc. It takes time and is rather stressful.
All I would say is don't be intimidated or feel bad for not owning a house because in this economic time it is an incredibly difficult feat to achieve.
I feel really lucky to have got the house and I feel like I am not just "burning" money purely on rent each month, plus at the end of each year I can buy more of the house if I choose too.
If I am being honest having a mortgage isn't everything though, I mean for one it costs a lot if you decide to move again (at least in here in the UK). Where as with rent you can just hand in your notice and be on your merry way. Soon as you start to buy a house you have to bring in Solicitor's who again are not cheap, and do a lot of checks etc. It takes time and is rather stressful.
All I would say is don't be intimidated or feel bad for not owning a house because in this economic time it is an incredibly difficult feat to achieve.
Arcane Hayter
Member
I actually bought two on the same property note and rent one out now. Looking to acquire at least two more next year. Not to earn extra income but more of a retirement plan.
The major things are: can you swing payments when its not rented out and can you cherry pick your rentals so stuff doesn't get destroyed?
captmcblack
Member
I live in NYC, and it will be impossible for me to buy a home around here unless I'm making beaucoup bank doing something soon. It's 6/7 years before I'm 35 now...
My wife and I have owned our home for about five and a half years; I'm 34 now, she is 35.
The house cost about 180k, and we had enough to pay the 20% down. However, doing so would have required selling some investments that I wanted to hang on to, given where the markets were at. So we paid 15% down, and took a home equity loan (line of credit, really) for the remaining 5% to avoid the additional insurance baked into the loan. We paid that off in about a year and a half, and paid extra each month on the home. In January this year we refinanced from 6% to just over 4%, creating a new 30 year loan which we are tracking to pay off in ~15 years. Of the original $180k+ price, we've paid off over 60k.
The experience of getting the initial loan was like being patted down for loose change. Wait, that's not quite hyperbolic enough. It was like being strip searched for loose change.
Example: one of the fees baked into the closing costs was fee to transport documents to the title company. I asked, you're basically charging $60 to put the papers I'm signing in the car and take them back to the office with you? Yup.
The entire experience felt like that. The house is worth it, but my opinion of the mortgage industry is rock bottom.
Qwell
Member
Bought my own when I was 23 years old (2003) in the Portland, OR area. I'm in an outlying suburb and paid $151k, its about 1500+ sq. ft, pretty new place and it was a good price for the area at the time before things really started to blow up in this area.
I would say about half my friends have already bought houses (most of them highly overpaid) and the other half really don't have an interest in buying a house. It seems they would rather have a nice car and extra toys which I find really odd, but oh well.
I didn't put anything down, I got an 80/20. Very happy I bought and also very thankful I worked in the industry at the time and could see the trend ahead in time and didn't get into anything foolish.
I would say about half my friends have already bought houses (most of them highly overpaid) and the other half really don't have an interest in buying a house. It seems they would rather have a nice car and extra toys which I find really odd, but oh well.
I didn't put anything down, I got an 80/20. Very happy I bought and also very thankful I worked in the industry at the time and could see the trend ahead in time and didn't get into anything foolish.
SillyEskimo
Member
Bought my first house at age 22 and sold it at 24 and made a 20% profit. Bought my second house at 29 and I am still living here at age 36. I would be content to live here through my golden years. The home is lovely in every way. On our 20 year mortgage it will be paid off when we're 49 but we make extra payments here and there. It would be amazing if we could pay it off by the time we're 45, which is totally possible but we are unwilling to make huge sacrifices just to make that happen.
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