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Will you be a homeowner before you turn 35?
- Thread starter neutralgamer02
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BriareosGAF
Member
I paid $545k for a 2BR condo in West LA in 2006, put down 10%, it was a really odd ARM, too. Sold for $500k before the market really started tanking because we had a second kid, so basically we lost our down payment on it. But if you factor in deductions, not paying rent, and the joy of having a 9 minute bike ride for a commute in LA, it was worth it.
I paid $360k for a 4BR house in Maine on 3.5 acres in late 2008, put 20% down. Could have put down more but we used it for renovations instead, which was a good decision. Looking at refinancing to 4% from 5.125% right now, maybe dropping from a 30 year fixed to a 20 year fixed at the same time. I love my house, it's over 200 years old and full of character, and the grounds are awesome. Massively unexpected expenses: tree management. We have several ~150 year old trees on the grounds and maintaining them was more than I'd expect. I think most folks in Maine just say "fuck it" and deal with it when they fall over.
aronnov reborn
Banned
at the current rate i'll have my house of $195,000 paid for by the time i'm 37.
The Lamonster
Member
I became a homeowner at 26.
Lots of equipment and materials.
Example: You want to put some wood shelves in your pantry to help organize it. Do you have a saw? A level? A drill? Screws? Sandpaper? A ladder? Paint? Extension cord? Wood?
No matter what project you want to undertake, inevitably you'll need some doodad or gizmo from the store, I'm addition to the raw materials.
You'll need equipment to maintain your lawn, and you'll need to maintain the equipment.
You will always want to be improving the house so that it's a nicer place to live, and so you'll always be doing various projects.
Or at least you should, or general wear and tear will turn it into a dump.
Z
ZombieFred
Unconfirmed Member
Perfect time to buy meadows. Low interest rates and lots of great oppotunities for great houses. My house I am getting was originally 145k (so $250,000) and I got them down to 125 due to some little work that needs doing, from the survey. I only had to put 18k for a deposit (almost 20 percent but you only need 10 these days) to get a great interest rate deal. Should give it a go when you can, especially when there's no stamp duty tax for one more year.
Arcane Hayter
Member
My house was built in the 20's. In the last 10 years that I've owned it I have had to replace/repair the following.
Water Heater: $350
Refrigerator: $450
Sewer pipe from the house to the city drop: $350 (would have cost $2k - $3k if I would have paid someone else to do it)
Gas Stove: $350
Siding: $5k (this wasn't necessary but I wanted to better insulate the house)
Carpet: $650
Sprayed for Weeds: $1k ($100 per year)
The real heavy hitters are structural issues and Air Conditioning.
Stuff is going to wear out and break down. But I spend more on insurance and property tax in a year than I've ever spent on "maintenance" in a year.
The work is never done. But it's no different than buying a car. The car payment is not the only cost of the vehicle. Does it justify leasing? That's on a by situation basis.
Captain Sparrow
Banned
Wow, this thread makes me feel good about myself. I bought a brand new town home 2 years ago, when I was 23. I put 20% down. I even graduated college with no financial assistance from my parents and bought and paid off a new car. I'm tired of people bitching that they can't save up. I lived at home until 23 and did full time school and community college. It wasn't fun, but it made it possible.
Renting longer term is a joke. Short term should only be if you have no other choice (which is more rare than people make it out to be). You always hear all of the advantages of renting. Go to an apartment building and see how many investors you find in there. You aren't escaping taxes and maintenance. The fees are built into your payment and spread out between everyone else with the landlord still profiting. Another thing is in 10 years, my mortgage payment will be the exact same, escaping inflation. Your rent payment will definitely be higher.
Renting longer term is a joke. Short term should only be if you have no other choice (which is more rare than people make it out to be). You always hear all of the advantages of renting. Go to an apartment building and see how many investors you find in there. You aren't escaping taxes and maintenance. The fees are built into your payment and spread out between everyone else with the landlord still profiting. Another thing is in 10 years, my mortgage payment will be the exact same, escaping inflation. Your rent payment will definitely be higher.
I like how you think I have money/credit. I'm young and part of the lost generation. I like how all the rhetoric is basically about writing us off and trying again with the next generation in terms of education/housing.
For those getting their homes in their early to mid 20s, what kind of interest rates did you get? How was your credit at the time? I'm toying with the idea of buying a house in a year or two although I'm currently paying off my car loan. My credit score is good but I just don't have enough history at the moment.
Cymbal Head
Banned
Probably. But that will greatly depend on what happens to me in the next decade.
DeaconKnowledge
Member
You make it seem so dire.
Yes you'll need that stuff, but you'll accumulate tools and equipment as projects come up in your home.
I didn't run out and buy a caulking gun when I closed on my mortgage.
Arcane Hayter
Member
I was in the same boat with credit. I had one mortgage company tell me I would have better luck with more history even with a worse credit score.
There are companies out there that will finance you. That is all they do and they usually peddle mortgages from the top level banks. I used a local outfit that got my mortgage with Chase.
I locked in my rate in at 6.25 (I think the national rate was 5.25 at the time but they wouldn't lock it in).
Three years later I refinanced at a lower fixed rate and dropped my mortgage from a 30 year note to a 15 year note. With the lowered interest rate it only raised my monthly payment by $50. It cost me $300 to refinance and Chase approached me.
Krauser Kat
Member
bitch please, I was 24 when i bought my house.
parrotbeak
Member
I did. Haven't used it since though.
Z
ZombieFred
Unconfirmed Member
Part of the lost generation? I'm 21 and only did my school eduction up to 6form level, doing an NVQ in IT, and got a job working for the public sector in two schools (moved to another when moving to Leicester from Kent, when parents moved to Egypt) and started working when I was 18. I had some will money when I was 21, which I didn't need since for getting a house with both me and my partners income (getting 36 together so far and will go over 40 in the next 3-4 years) if we just saved our money for 5 years and got it at 26 instead, but it was nice to have that start. I wouldn't say a lost generation at all, I've been slightly laid back but worked hard in my job and I did get redundant in the past. You just got to keep your hopes and keep looking and it'll be fine
My current interest rate is at 4% fixed for 3 years.
Shabadoo69
Member
I am 29 and am in my second home. I paid $220,000. I didn't get the obama thing because it was my second home. Buying a home is a pain in the ass. It never goes as planned. I love my house and dont really plan on moving anytime soon.
Skiptastic
Member
I'm now 28, but I was the same two years ago.
Wasn't my intent!
neutralgamer02
Member
I have planned to buy that stuff when I move into my house, so that wouldn't be maintenance for me. Toolkit, ladder, screws, electrical equipment, lawnmower, etc. Doubt I will need wood though for a new home.
How am I going to be improving a new home? It will be a townhouse so I can add a basement or new room. I won't be changing the outside since the yard is small. Most of the stuff you are talking about is for old homes people buy and then fix it up. I am not following that approach at all.
But, your house is almost 100 years old. The house I am looking at will be constructed in 2012. I doubt I will need to do any of those things within 10 years of buying my house.
Flying Toaster
Member
As a home owner I have learned to despise HOA's and the fact that every month more houses go up for sale or are forclosed on thus lowering the overall non-existant price of my house.
On the bright side prices are so low in America that rent is more expensive most of the time versus a house payment.
On the bright side prices are so low in America that rent is more expensive most of the time versus a house payment.
Flying Toaster
Member
So that just means that its a cookie cutter house and that everything is plaster and thin.
gutter_trash
Banned
does a condo count? I got my first mortgage when I was 28 when prices were reasonable before the spike
Well, I used to live in the Vancouver area with my wife, and we were saving up to eventually buy a condo/apartment/townhome or something, but as those frequently run up to 300k or more, (700 to a million for a house) we would have had to save for a few years. I ended up getting into an awesome school program in Calgary, so we moved there. We are using some of our savings for tuition.
A house for under 200k in Vancouver is unheard of. And people don't actually make THAT much money out in the Van area. I used to make about 55k and my wife made about 45k, and we would have had to save for about 2-3 years to make a reasonable downpayment. We were getting paid quite well compared with a lot of my friends.
It would be interesting to hear where everybody lives (those who own houses for 150k etc).
A house for under 200k in Vancouver is unheard of. And people don't actually make THAT much money out in the Van area. I used to make about 55k and my wife made about 45k, and we would have had to save for about 2-3 years to make a reasonable downpayment. We were getting paid quite well compared with a lot of my friends.
It would be interesting to hear where everybody lives (those who own houses for 150k etc).
Arcane Hayter
Member
That was kinda my point. If I can live in a very old house with low maintenance costs I think its feasible for anyone else, barring any real lemon type of scenarios.
Bottom line though: don't stretch yourself so thin that if you do need to replace something you can't swing it. I see it all the damn time around my neck of the woods. I've got friends making huge house payments and living on Ramen.
My house was built this past year and this is not the case at all... You can't necessarily make generalizations like that...
neutralgamer02
Member
It is a townhome in the center of the city. Not a cookie cutter. You will see it at the link.
http://www.sanaztownhomes.com/
Oh, I see. Guess I misunderstood. Yeah, I agree.
parrotbeak
Member
Ya, to make it clearer, that's less than $70/month.
Of course, if you have a townhouse or condo you will pay much more per month in maintenance fees.
Arcane Hayter
Member
Southwestern US. Bought to houses on the same property for $55,000 in 2001. One is rented out for $400 per month and is about 800 square feet. The house I live in is two story and about 1800 square feet. Gross family income is around $65,000 a year. 5 years left on my mortgage.
Alkohallick
Member
Well at the time my credit was "OK" low 600's if i remember correctly. I got a 5.025% fixed 30year. No money down made 60-65k year.
They were practically giving away loans at the time not so sure how it is now.
Nice work. I might have to move down there once I'm finally done with school!
haha.
Arcane Hayter
Member
I've seen these houses. We have a whole subdivision in town full of them. They are overpriced pieces of junk. The ones built in my town have an "open" floor design to hide the fact that they really don't have a lot of square footage.
Doesn't sound like his is one of this type though.
Arcane Hayter
Member
So many older couples retire out here because their money goes some much further around here.
We get a lot of people from California that sell their homes off for a million and live off of that for years out here or invest it in rental property.
Future Trunks
lemme tell you something son, this guy is SO FARKING HUGE HE'LL FLEX AND DESTROY THE SUN no shit
Bought my first house (1500 sq ft villa) at 23 years old in Houston. 0 percent down, closing cost partially paid by builder (FHA loan for first time home buyers at the time...2005). Fixed rate, kinda high by todays standards, 6.125 percent, but it was only a 110k loan. 740 credit score. Mortgage plus interest and mortgage insurance is less than 1k a month. Because it's a villa the monthly hoa fee covers the exterior maintenance. So that's good. Because I know I'm busy, I wanted something of good value that wouldn't require too much of my own time for basic upkeep.
Moved 3 months ago to Oregon. Still own the home, being rented out because the area is developing and I wanted to hold on to the property. The rent is still reasonable yet covers mortgage, home owners insurance, lawn upkeep, and even warranty plans I have on appliances and systems in the house in case something breaks. The tenant's a great guy and low risk to damage the home (do your research on your tenants!) So it's been a win win so far.
Looking to purchase my next home by February. I'm 30. Next one after that will be a home on the east coast.
I think it's unfair to lump home ownership in the same category as marriage and kids as having an impact on your ability to advance in your career by moving. A home is an object. Sure, it's a consideration, just like any other aspect of the moving process. If you want to keep the house and move on, you'll find a way, there are many options and some are relatively painless (for example, renting out with a property manager overseeing things). If you want to sell, you'll find a way to make that happen as well. Sacrifices are made in either case (and the sacrifice can be quite minimal), but home ownership doesn't stop you from being a traveling mover and shaker or baller or whatever else. Choose a home that's right for your level of current and future commitment to living in it and taking care of it.
Moved 3 months ago to Oregon. Still own the home, being rented out because the area is developing and I wanted to hold on to the property. The rent is still reasonable yet covers mortgage, home owners insurance, lawn upkeep, and even warranty plans I have on appliances and systems in the house in case something breaks. The tenant's a great guy and low risk to damage the home (do your research on your tenants!) So it's been a win win so far.
Looking to purchase my next home by February. I'm 30. Next one after that will be a home on the east coast.
I think it's unfair to lump home ownership in the same category as marriage and kids as having an impact on your ability to advance in your career by moving. A home is an object. Sure, it's a consideration, just like any other aspect of the moving process. If you want to keep the house and move on, you'll find a way, there are many options and some are relatively painless (for example, renting out with a property manager overseeing things). If you want to sell, you'll find a way to make that happen as well. Sacrifices are made in either case (and the sacrifice can be quite minimal), but home ownership doesn't stop you from being a traveling mover and shaker or baller or whatever else. Choose a home that's right for your level of current and future commitment to living in it and taking care of it.
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