|Topic Review (Newest First)|
|02-10-2012 02:06 PM|
I just bought a nice new fridge for $300 but lots of good advice.
Home owner ship is huge responsibility. HUGE. HUGE. HUGE. I bought a house when I was 25 (I am 36 now) and man...I had NO IDEA what I was in for.
At the time of purchase, yes the house cost much much more then renting. 10 years later.....and that is no longer the case. I could barely get a studio apartment for what my mortgage costs. Even when you add taxes and insurance it's still far less then a comprable place.
I am also in the US so I get a decent tax break on my house. I just re-financed 220k at 3.8% for 30 years fixed and my payment is about $1000. With taxes and insurance it's still well under 1500. I could easily get 1800 to rent it out. I can easily rent out the spare bedroom for 500. ( I live in So Cal where everything is $$$)
That's not to say it's been all good times. My house is about 90 years old and in the last ten years I have re-done the plumbing, replaced the roof and remodeled the bathroom. I had no choice as the home was in pretty bad shape when I bought it. I had a very thorough home inspection, and I had no surprises. The problem was i *thought* I knew what I was getting into but now looking back on it I HAD NO FUCKING CLUE. Stupid dumb 25 year old I was!!!
There's been a ton of good advice here and details specific to youin Canada but do not JUST think about the fianicial aspects. There is so much more to home ownership. It's a lot of work and a lot of responsibility but also has a lot of positives. It is NOT something to be taken lightly and it's certainly not for everyone. Even buying a newer home it will have issues. And if you don't think you could live in a house for a minimum of 10 years DONT BUY IT. Sure it's great if you can sell it sooner but ain't no guarantee that will be possible.
|02-10-2012 10:18 AM|
thanks for the insight man. as for the car payment, i do double payments so i can pay it off quicker. originally i'm only suppose to be paying $400 a month, but i put down $800 altogether.
but yeah. i guess i still have a while to go until i can stabilize and get moving, but until then i can look around and get an idea of what i wanna buy.
p.s. i like how you threw in xbox 360 membership in there
|02-10-2012 09:40 AM|
Originally Posted by newnew View Post
As far as the $2,000 fridge, that was just an example. Whatever the cost is - it costs more than a landlord paying for it.
Something you could consider that could help you out if you do decide to buy a home is to get a 2 bedroom place and rent out one of the bedrooms to a friend. Getting an extra $400-500 per month from a buddy will definitely help out a $1500 per month mortgage.
Lastly, I'm just gonna list some other monthly costs to consider, as you might not have to pay for these things currently if you're living at home:
- gas (heat/stove)
- TV (cable/satellite)
- xbox live membership
- property taxes
- homeowner's insurance
- HOA fees (if condo)
- your car payment
- your car insurance
- your car maintenance (oil changes, new brakes, new tires, any fixes required)
- retirement savings (401k, IRA, etc.)
- furniture you'll have to buy
- pots/pans/cleaning items
Just some things to think about. Here's a quick google search for some things to consider: Don't forget about these 20 costs of home ownership - USATODAY.com
After you deduct all of those from your paycheck, do you still have enough money or time to do anything fun? Do you have enough money to buy a new snowboard? Season Pass? Even a single day lift ticket? Not that snowboarding is the most important thing in life, but realize you'll have to make some sacrifices to become a homeowner.
|02-09-2012 08:45 PM|
I mean no offense, but from reading your posts, you don't know much about real estate or home ownership. You really need to get some hard numbers together as well as educate yourself.
First off, go see a mortgage broker. You said that you have been working for a year, they tend to like a 3 year salary history. Get pre-approved and that will give you a starting point.
Go to a community college. They usually offer some kind of first time buyer course. Avoid courses sponsored by real-estate firms. Not that they're bad, but they're a marketing tool to get clients. Everything is viewed thru rose-colored glasses and your phone will be ringing off the hook within a week.
No one can tell you whether home ownership is right for you at this moment, and everyone in real estate is looking to make money off you. If you enter the market as is, then you're a sheep among wolves.
|02-09-2012 08:03 PM|
|newnew||yeah....my friend bought a condo. i didn't ask how much it was, thought it'd be kinda rude to dig my nose in that deep. but i'm assuming it was around $270K give or take. i'm not sure how much he put down either. i'm sure it was at least 10%, so at least $20K, he's paying $176/weekly. that's cheaper than what i pay on my car...haha but mind you he is an accountant and used to work at a bank so i'm sure he's got all of his numbers straight and disciplined himself so he would achieve comfortable financial standards|
|02-09-2012 07:57 PM|
I spent $4500 on all 6 appliances last time around, and even that I consider to be on the high side.
|02-09-2012 10:11 AM|
|hikeswithdogs||Owning a house is a pain in the ass(regret buying mine about 1\2 the time), keep the payment around 25% of your monthly income or your going to hate life.|
|02-09-2012 10:04 AM|
Not to be a debbie downer... but you should do a bunch more research before you decide on making the biggest purchase in your life. I don't know much about Alberta and any "booms" they have coming, so it may be a good time to jump in on buying something, but again - make sure you know what you're doing.
Owning a place has a lot of added responsibilities that renting does not require. Fridge breaks in your house - get ready to shell out $2k for a new one. Fridge breaks in a rental, call you landlord and he'll have one there tomorrow. HOA fees (if condo/townhouse) are $300 (example) a month, that is $3,600 per year, every year, for the rest of your life. Own a house and you don't have an HOA, but you have to buy a lawnmower, mow the lawn, shovel the snow, fix the gutters, pay for a roof repair, water heater leak, etc. etc.
Again, I'm not trying to discourage you... just trying to show both sides of the story. It's nice to have your own place but you also need to look ahead to the future. Do you plan on staying at this job for quite some time? If so, its a lot easier to cancel your rental lease and move to a new area for a new job/life than it is to sell a house, especially if you didn't put enough of a down payment down and can't sell it for what you owe. If you owe $200k and its only worth $180k, get ready to sell the house and still owe $20,000 just to get out of it. That was a big reason why the whole US housing market crashed... people were buying houses as "investments" rather than "homes". Everyone wanted to upgrade and all of a sudden when everything crashed, people lost jobs, didn't get overtime, etc. and then didn't have the cash to pay for the "investment" they were living in.
If I were you (not sure how old you are, but if around 22-24) I would either stay at my parents and just save as much as I could, or find a few of your buddies and all go in on a larger condo / house where you could be paying $400-500 a month for everything. You don't need a $1500 per month condo to rent, you need your own room and access to the living room / kitchen / bathroom. That way you can still save a decent amount of money but you aren't stuck living at home.
My personal situation, coming from the Detroit area I was gettin close to buying a house/condo for very cheap (Detroit suburbs some of the hardest hit during this recession) and I'm glad I didn't because about a year ago I was offered a job in Denver, CO. Now instead of riding a 200' vertical hill an hour away from where I lived, I'm riding 3,000'+ vertical an hour from where I live while making more money. Eventually I will want to buy something, but not until I am certain on where I want to stay (area wise). I would have hated to be stuck with a mortgage somewhere and I have to turn down a better job / location / life. That is where renting is an advantage.
|02-09-2012 09:02 AM|
Originally Posted by Riley212 View Post
|02-08-2012 06:02 PM|
what you qualify for and what you want to pay are usually completely different.
what I've been going by is dont pay more than 1/4 of your monthly income on a monthly payment for a house, that way you still have money for a savings and doing fun things and eating good food, you know "living life"
Seems like most people buy the max and get more house than they really need.
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