Financial Priorities?
July-1st-2003, 09:47 AM
#1
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Join Date: Dec 2001
Location: PA
Posts: 2,339
Financial Priorities?
I'm a young whippersnapper, just turned 21 a few weeks ago. I've been officially working at my current job for one year at the end of this month. I really like my job, I get along great with my co-workers, and I consider my boss to be one of my good friends.
Anyway, I don't make GREAT money, but it's enough for me to pay my bills, save some cash, and still buy the things that I want. Depending on how well things go at work the next few months, I could be looking at a really nice raise (anywhere from 10-30%, I'm not sure) in the near future (6 mo - year). Anyway, I plan on staying in there area for a while at my job because it's a good, secure job, and I like it a lot.
So far my money savings have gone towards car mods. Being a member of this forum automatically classifies me as a car enthusiast. And car enthusiasts usually spend money on their cars. Nothing wrong with that.
I live in an apartment right now with a roomate. The place is pretty crappy, one of those big houses that was converted into apartments. We've been looking for another place to live for a few months, and we've found some really nice places, but the rent is more than I'm willing to pay.
To make a long story short, I've started to look around for houses for sale. I'm not sure if I'm really ready for that big of a commitment, but it *seems* like a good idea. Hell, I'd probably be paying less on a mortgage on a house than what I'm paying for my apartment right now. Not really, but it wouldn't be a lot more.
I guess what I'm asking is what do you guys/girls think about me buying a house? Should I hold back and just enjoy my youth, or step up and make a financial commitment for the next 30 years? I probably wouldn't have nearly as much money to save for my car with a house, but if I get a promotion, it might all even out.
I know there are some older members on this board, I'm hoping they can give me some good advice from their experiences. Thanks guys!
Anyway, I don't make GREAT money, but it's enough for me to pay my bills, save some cash, and still buy the things that I want. Depending on how well things go at work the next few months, I could be looking at a really nice raise (anywhere from 10-30%, I'm not sure) in the near future (6 mo - year). Anyway, I plan on staying in there area for a while at my job because it's a good, secure job, and I like it a lot.
So far my money savings have gone towards car mods. Being a member of this forum automatically classifies me as a car enthusiast. And car enthusiasts usually spend money on their cars. Nothing wrong with that.
I live in an apartment right now with a roomate. The place is pretty crappy, one of those big houses that was converted into apartments. We've been looking for another place to live for a few months, and we've found some really nice places, but the rent is more than I'm willing to pay.
To make a long story short, I've started to look around for houses for sale. I'm not sure if I'm really ready for that big of a commitment, but it *seems* like a good idea. Hell, I'd probably be paying less on a mortgage on a house than what I'm paying for my apartment right now. Not really, but it wouldn't be a lot more.
I guess what I'm asking is what do you guys/girls think about me buying a house? Should I hold back and just enjoy my youth, or step up and make a financial commitment for the next 30 years? I probably wouldn't have nearly as much money to save for my car with a house, but if I get a promotion, it might all even out.
I know there are some older members on this board, I'm hoping they can give me some good advice from their experiences. Thanks guys!
July-1st-2003, 09:55 AM
#2
Thread Killa'
Join Date: Jul 2002
Location: k-town, USA
Posts: 326
Buy a house! Interest rates will never be better, plus you really don't have a 30-year committment (you can sell it later, likely for a profit).
You will have more enjoyment actually owning and caring for your yard and house than you can imagine. Plus it is a great investment. And while you are still young, you can always have a roomate, who then is helping make the payments on your place (just make sure you use a clear, concise lease, because even amongst friends, a legal contract is a necessity).
I think if you check around you will find that making payments is actually less than paying rent, which means, you ultimately are saving disposable income. Thus, I don't think the Pro will be neglected!
You will have more enjoyment actually owning and caring for your yard and house than you can imagine. Plus it is a great investment. And while you are still young, you can always have a roomate, who then is helping make the payments on your place (just make sure you use a clear, concise lease, because even amongst friends, a legal contract is a necessity).
I think if you check around you will find that making payments is actually less than paying rent, which means, you ultimately are saving disposable income. Thus, I don't think the Pro will be neglected!
July-1st-2003, 10:46 AM
#3
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Join Date: Dec 2001
Location: PA
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Originally posted by foxymazda
I would def get a house if I had the chance to. Its a big commitment but its a different kind of commitment, if you catch my drift. lol.
I would def get a house if I had the chance to. Its a big commitment but its a different kind of commitment, if you catch my drift. lol.
I'm sure my roomate would really like to move as well, but I'd more than likely have him pay some of the utilities as his rent... Because, as bad as it sounds, I want it to be MY house... He's not known for his financial inginuity by any means, he'd probably put up "his share" of the house as collateral for a bag of magic beans or something. Sadly I'm not even joking.
And what's a polite way of telling him that I don't want any of his worthless **** in the house???
July-1st-2003, 11:26 AM
#4
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Join Date: Jun 2003
Posts: 241
House! Just tell your roommate that YOU are going to buy a house and if he wants in on it, tell him you want to do it yourself. Better yet, call Dr Laura! Hey, it's your money.
Btw, you got 10-20k to put down on the house? Not a good idea to buy if you don't IMO. (My sis' works at ditech)
Btw, you got 10-20k to put down on the house? Not a good idea to buy if you don't IMO. (My sis' works at ditech)
July-1st-2003, 11:34 AM
#5
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Join Date: Oct 2001
Location: W.Htfd. CT
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Buying a house is not always the best investment, but interest rates are so damn low I don't think you can go wrong. You will need more money than you think. i.e. if the house will sell for 100,000. you can get it for 5% down but you will have to pay for PMI, which is insurance on the mortgage if you don't pay. This is not insurance to help you but to help the bank. The PMI might be around $50 a month. If you have 20% down then you do not have to pay the PMI.
However, let's say you have only 5%. Now there is the cost of the attorney (do not buy a house with out one!), the house inspection, there might and will be other fees. So you'll need close to $8500 and good credit.
Look into it you might have to live on P&J for the rest of the summer but in the end, you will save money.
One last thing, I looked up Williamsport on a map and I see that there is a river next to it any house you look at ask if it is in the FLOOD PLAN if so keep looking at houses.
However, let's say you have only 5%. Now there is the cost of the attorney (do not buy a house with out one!), the house inspection, there might and will be other fees. So you'll need close to $8500 and good credit.
Look into it you might have to live on P&J for the rest of the summer but in the end, you will save money.
One last thing, I looked up Williamsport on a map and I see that there is a river next to it any house you look at ask if it is in the FLOOD PLAN if so keep looking at houses.
July-1st-2003, 12:52 PM
#6
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Thanks for the info everybody!!! Luckily for home BUYERS, property values aren't that great around here... Might not be the best investment, but a minimal investment is still better than NO investment of renting.
My sister went through the process of buying a house two years ago, and she says there are a lot of breaks that first-time homebuyers can get. That was in a different area, but apparently there are also some incentives from the city for first-time buyers in the city, which is nice. For instance, instead of the usual 10% down, they will take 3-5% down. I know the more down the better, but it's definately an option.
On top of that, my parents said they'd lend me some money for the down payment. My grandfather has been giving them money the past couple of years (as much as he can legally give away un-taxed), and they're just letting the money sit. As much as I don't want to borrow from my parents, it's nice to know that they're there if need be
Yes, Williamsport is right by the river, but we have a really high dyke (sp?) the length of the city, the river would literally have to be up to the level of the bridges to get over the dyke, which would probably be a good 30-50' rise... So that's pretty unlikely.... Not to mention the properties I've been looking at aren't near the river (my work would be submereged before anything, WOOOOOOOOOO!!!!) hehehe...
My sister also told me that she was able to roll all the other fees and costs into the mortgage payment, including the PMI or whatever it is. We also can get the property taxes included in the payment as well.
I'm going to talk to my parents and see what they have to say about it. Thanks again!
My sister went through the process of buying a house two years ago, and she says there are a lot of breaks that first-time homebuyers can get. That was in a different area, but apparently there are also some incentives from the city for first-time buyers in the city, which is nice. For instance, instead of the usual 10% down, they will take 3-5% down. I know the more down the better, but it's definately an option.
On top of that, my parents said they'd lend me some money for the down payment. My grandfather has been giving them money the past couple of years (as much as he can legally give away un-taxed), and they're just letting the money sit. As much as I don't want to borrow from my parents, it's nice to know that they're there if need be
Yes, Williamsport is right by the river, but we have a really high dyke (sp?) the length of the city, the river would literally have to be up to the level of the bridges to get over the dyke, which would probably be a good 30-50' rise... So that's pretty unlikely.... Not to mention the properties I've been looking at aren't near the river (my work would be submereged before anything, WOOOOOOOOOO!!!!) hehehe...
My sister also told me that she was able to roll all the other fees and costs into the mortgage payment, including the PMI or whatever it is. We also can get the property taxes included in the payment as well.
I'm going to talk to my parents and see what they have to say about it. Thanks again!
July-1st-2003, 02:15 PM
#7
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Join Date: Nov 2002
Location: Tulsa, OK.
Posts: 106
I bought my first house at 21. It is a great investment. Just don't get more than you can afford. Buy a conservative house for you first house and rent you extra rooms so you can make some extra payments. I paid 85K for my first house. I was only out of college for 6 months. I started with one friend renting from me and ended up with 2 for a year. I put 10K down, Interest rate was 7.8%, and I ended up paying $670 a month. My room mates were paying 300 for one room and 200 for the smaller room. They also paid 1/3 of bills. I was only having to cover $170 of my mortgage and about 100 in bills. Not to bad of a deal if you ask me. I am now buying a second house for me and my Future Wife (47 days left) to live in, and renting out the other one. I also refinanced after 3 years and drop 10 years off the mortgage and $100 of the mortgege because of the 2.5% drop in my interest rate.
Do it if you can afford it. The sooner you start building equity the better off you will be!
Do it if you can afford it. The sooner you start building equity the better off you will be!
July-2nd-2003, 01:12 AM
#9
WAZZU
Join Date: Jun 2002
Location: Seattle,WA
Posts: 613
Nothing is better then buying a house...I wish I started saving back when I was your age.
I rather sink my rent money into a house...go for it...you will not regret it. But as stated by someone before, remember not to go to gung-ho on a house...stick to one that fits your budget. Then you can move up after 2-5 years to a better house.
I rather sink my rent money into a house...go for it...you will not regret it. But as stated by someone before, remember not to go to gung-ho on a house...stick to one that fits your budget. Then you can move up after 2-5 years to a better house.
July-2nd-2003, 07:32 AM
#10
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Location: PA
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Well, I've decided to officialy start looking around for houses, but I'm not to settle for just anything. Luckily I have the luxary of time (for the most part). I think above all, I'd like to find a place in a nice neighborhood. It would be much easier to sell a nice house in a nice neighborhood than one in a bad neighborhood.
So I'm going to start looking around, if it needs work, I'll do it, that's fine with me... But I just don't want to LIVE in a seedy area, and if I can get more money when I go to sell it, that's even better
So I'm going to start looking around, if it needs work, I'll do it, that's fine with me... But I just don't want to LIVE in a seedy area, and if I can get more money when I go to sell it, that's even better
July-2nd-2003, 09:59 AM
#11
Protege Enthusiast
Join Date: Feb 2002
Location: Chicago
Posts: 227
Remember what they say...better to get a crappy house in a good area than a good house in a crappy area. Goes a long way when you decide to sell.
Also, regarding the roommate situation...definitely, it should be YOUR house. Don't even think about having anybody else's name on the papers. If he wants to rent a room and/or pay utilities that's fine, but don't think that just because he suddenly gets his **** together for five minutes, he'll be reliable in the long-run. Trust your gut instincts there.
Good luck with your decision!
Also, regarding the roommate situation...definitely, it should be YOUR house. Don't even think about having anybody else's name on the papers. If he wants to rent a room and/or pay utilities that's fine, but don't think that just because he suddenly gets his **** together for five minutes, he'll be reliable in the long-run. Trust your gut instincts there.
Good luck with your decision!