Midgen wrote:
I say 'buy more lottery tickets' :p~~
i have been
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| Dilemma https://gladerebooted.net/viewtopic.php?f=7&t=6356 |
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| Author: | Nevandal [ Tue May 24, 2011 3:45 am ] |
| Post subject: | Dilemma |
Well, I've been living on my own now for a little over 2 years, and it's great. Got myself a nice 2 bedroom apartment...and I'm saving up to put a down payment on a house. Living here in the apartment, I've discovered that I can barely tolerate apartment living. The things I want to do pretty much require me to have a house. There's no way I'm going to enjoy living in an apartment with the constraints I have. 1. I can't practice guitar much, with the hours I work and the noise levels in the apartment, this is impossible....I can't stand using headphones or playing at whisper quiet volumes 2. Paying rent sucks...it's like throwing money away! 3. I want to own my own place....so much more freedom and privacy. I must buy a house! So....I have two options. Next summer I will have enough money for a decent down payment on a house, and then I will have a 30 year mortgage. Money wont be THAT tight, but I wont exactly be rolling in the dough either. Also, if I do this I will probably have to setting for something not quite as nice as I'd like...but I will definitely be happy to have my own house. The 2nd option would be to move back in with the 'rents. They've actually welcomed me back a few times and I've refused...but lately I've been thinking it would be a good idea to move back for a few years, save up a large amount of money (in 3-4 years I'll be able to buy at least 75% of a house, straight up cash). My ultimate goal if I go this route would be to save up enough money to buy a house without taking a loan at all, and not have to ever worry about a mortgage payment for a very very long time. My step brother and sister live at home still and they're paying off their debts (1 from student loans and another from an expensive divorce involving a recently purchased house). I however, am completely debt free. Here's the thing, they don't have a big problem with me moving back in, and the fact that I work night shift means we'll be out of each others hair. They will hardly know I'm there, and vice versa. I'll be able to play my guitar at a decent volume when they're at work and on the weekends (something I can't do in my apartment) while I save up for a house. If I could tolerate this, it would be ideal because once I got into my house I would be able to crank up my 401k percentages and start an IRA and other types of retirement / investment funds, not to mention most of my money would be spending money, instead of having to suffer for 30 years with a mortgage and feeling like I'm living paycheck to paycheck. So what do you think? What would you do if you were me? Go straight for my own house or sacrifice living on my own for a few years and then get a house? |
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| Author: | Micheal [ Tue May 24, 2011 4:30 am ] |
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If you can get a good deal on a house now, indicators are saying wait a few months to see if there is another substantial drop in prices. Might get a better place for the same money, or the kind of place you're looking at now for less money. This is always a gamble. Prices may start rising again, but it isn't all that likely. You can turn a 30-year loan into a shorter loan by making an extra payment or two or three a year. It goes straight to the principle and lessens the interest you have to pay. Also look at straight 15-year fixed. If you aren't dating and don't intend to be, flopping at your parents for a while might be a good idea. It is always difficult when you bring a new interest home, especially when you want to say mom, go to bed so we can too. This is your call. Yes, and yay on buying your home - but do it smartly. |
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| Author: | LadyKate [ Tue May 24, 2011 6:50 am ] |
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This seems like too monumental of a decision to put it to a simple yes no vote, and I don't know enough about housing markets or finances to advise you. But I'm supporting you from the sidelines! Yay! :cheerleader: Good luck! |
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| Author: | Lex Luthor [ Tue May 24, 2011 9:58 am ] |
| Post subject: | |
Buying a house is throwing money away too because you don't gain interest from it, as opposed to investing that money. If you rent an apartment you can concurrently invest the hundreds of thousands it costs to own a house. |
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| Author: | Amanar [ Tue May 24, 2011 10:07 am ] |
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Living with your parents sucks. If you have a good, stable job, don't move back home. I'm not sure buying a house is the best option, but if it's between doing that and moving back with your parents, I would buy a house. Why can't you look for another rental unit that will better suit your needs? And while buying your own house may grant you more "freedom and privacy," it also comes with many negatives, like maintenance and costly repairs that come out of nowhere. |
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| Author: | Talya [ Tue May 24, 2011 10:44 am ] |
| Post subject: | Re: |
Lex Luthor wrote: Buying a house is throwing money away too because you don't gain interest from it, as opposed to investing that money. If you rent an apartment you can concurrently invest the hundreds of thousands it costs to own a house. Mortgage costs are typically about the same or lower than rental costs, in most places I've been. Not to mention that the US housing market is currently way undervalued. ("Bubble-bursting" always overcompensates.) Over the long term, real estate usually outperforms most other investments. so rather than giving away your rent every month and getting nothing for it, you're contributing to something you will get back, especially if one invests while the market is highly depressed like it is now. |
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| Author: | Kaffis Mark V [ Tue May 24, 2011 10:48 am ] |
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Real estate (that you inhabit) is a poor investment. Why? You rarely actually capitalize on it, except to sink additional money in in addition to the capitalized value of the real estate to buy MORE (or BIGGER) real estate. So it's a shitty investment, if you can call it an investment at all. However, tax and upkeep are, if you budget for them wisely, cheaper than rent once you pay off the mortgage with the difference. So it can be a smart thing to buy. |
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| Author: | Talya [ Tue May 24, 2011 10:51 am ] |
| Post subject: | Re: |
Kaffis Mark V wrote: Real estate (that you inhabit) is a poor investment. Why? You rarely actually capitalize on it, except to sink additional money in in addition to the capitalized value of the real estate to buy MORE (or BIGGER) real estate. That's less true for families, where once the kids leave home, parents often sell their house and move in to a smaller place. In any event, if your mortgage+taxes is anywhere close to the amount you were paying in rent, the Mortgage is a far better deal, as you're building equity, whereas with rent you're just flushing the money. In Nev's case, moving back home might be a better idea for the time being, as long as he really saves all that extra money. |
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| Author: | Nevandal [ Tue May 24, 2011 11:17 am ] |
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i do need a house long term apartment and even condo living is out of the question |
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| Author: | Lex Luthor [ Tue May 24, 2011 11:34 am ] |
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Can't you just play music with the volume turned down? |
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| Author: | Nevandal [ Tue May 24, 2011 11:35 am ] |
| Post subject: | Re: |
Lex Luthor wrote: Can't you just play music with the volume turned down? no |
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| Author: | FarSky [ Tue May 24, 2011 11:39 am ] |
| Post subject: | |
Why don't you rent a house? First of all, as Kaffis pointed out, house purchases are hardly "investments." Additionally, while it's all awesome to have a house and all, it's also A) a gigantic pain in the *** if something changes in your life and you have to move in those thirty years before you pay off the house, and B) guess what comes with that shiny new mortgage: upkeep of the house. That's the brilliant thing about renting. Provided it's not you screwing up the place, if something breaks, it's not your problem. You don't shoulder the costs, or the time/energy/manpower to fix it. I have awesome parents. I love them dearly, and I have a fantastic relationship with them. In what I'm sure is nothing but pure coincidence, my relationship with them improved immensely right about the time I moved out to go to college. But barring some medical issue or needing to take care of them, I cannot fathom living with them again. |
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| Author: | Nevandal [ Tue May 24, 2011 11:44 am ] |
| Post subject: | |
i want to own my house. i don't want to live in a space that someone else owns. landlords blow. |
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| Author: | Lex Luthor [ Tue May 24, 2011 11:46 am ] |
| Post subject: | Re: |
Nevandal wrote: i want to own my house. i don't want to live in a space that someone else owns. landlords blow. Ownership is all relative... the state actually owns your house. |
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| Author: | Rynar [ Tue May 24, 2011 12:03 pm ] |
| Post subject: | Re: |
Nevandal wrote: i want to own my house. i don't want to live in a space that someone else owns. landlords blow. I would suggest Looking at investment properties that have apartments complexes on them, and buying one of those. Live in one of the units yourself and let those who rent the other units pay your mortgage. |
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| Author: | Talya [ Tue May 24, 2011 12:14 pm ] |
| Post subject: | Re: |
FarSky wrote: Why don't you rent a house? Because the rent in those situations tends to actually be more than what the mortgage+taxes would cost. |
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| Author: | Nevandal [ Tue May 24, 2011 12:17 pm ] |
| Post subject: | Re: Re: |
Rynar wrote: Nevandal wrote: i want to own my house. i don't want to live in a space that someone else owns. landlords blow. I would suggest Looking at investment properties that have apartments complexes on them, and buying one of those. Live in one of the units yourself and let those who rent the other units pay your mortgage. no thanks house houuuuuse. |
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| Author: | Midgen [ Tue May 24, 2011 12:18 pm ] |
| Post subject: | |
The one advantage to buying a house (as opposed to renting), especially at such a young age, is that eventually you will own it outright, and not have to pay a mortgage OR rent. Of course this would depend on you living in it long enough to actually pay it off. I say 'buy more lottery tickets' :p~~ |
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| Author: | Nevandal [ Tue May 24, 2011 12:25 pm ] |
| Post subject: | Re: |
Midgen wrote: I say 'buy more lottery tickets' :p~~ i have been
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| Author: | Kirra [ Tue May 24, 2011 12:46 pm ] |
| Post subject: | Re: Dilemma |
Don't look at a house as an investment...those days are gone where you buy a "starter home" them do some minor fix ups and flip up to a nicer house... Buy something you can see living in and be happy in for a while. You will eventually pay it off and have some return for your money, if you sell, unlike if you rent for years and years...no return there. It may not be considered the best investment that it used to be, but...far better than renting. You can probably get a house payment for not much more than your rent. Now, with that being said...I personally, would live with my parents and save every penny I could, because I would want to get a house that I was be happier with in the long run and saving money would allow me to do that. But, if you find a house that you love and can afford now, and parents really don't work out? Buy then! Whatever you do, good luck Nev 
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| Author: | Rynar [ Tue May 24, 2011 12:47 pm ] |
| Post subject: | Re: Re: |
Nevandal wrote: Rynar wrote: Nevandal wrote: i want to own my house. i don't want to live in a space that someone else owns. landlords blow. I would suggest Looking at investment properties that have apartments complexes on them, and buying one of those. Live in one of the units yourself and let those who rent the other units pay your mortgage. no thanks house houuuuuse. Or a duplex then. One of the least wise things any person can do is buy their first property purely for lifestyle, forsaking all investment. Everything you own should work for you. |
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| Author: | Kirra [ Tue May 24, 2011 12:51 pm ] |
| Post subject: | |
But having neighbors stops him from doing what he wants most in a house.. Playing his guitar like he wants to do.. Sure, renting to someone else would be nice, but how is that better than the reason why he wants out of an apartment? |
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| Author: | Rynar [ Tue May 24, 2011 12:52 pm ] |
| Post subject: | |
See... it's his property. He can do what he ants. |
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| Author: | Nevandal [ Tue May 24, 2011 12:55 pm ] |
| Post subject: | Re: |
Kirra wrote: But having neighbors stops him from doing what he wants most in a house.. Playing his guitar like he wants to do.. Sure, renting to someone else would be nice, but how is that better than the reason why he wants out of an apartment? Kirra you should know better to bring logic into this thread 
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| Author: | Kirra [ Tue May 24, 2011 1:07 pm ] |
| Post subject: | Re: |
Rynar wrote: See... it's his property. He can do what he ants. True, you can do what you want if you are the Landlord, but will be pretty tough to find renters that follow your lifestyle and aren't bothered by it. You can buy with investment in mind, yes and probably do better when you get ready to sell. But, I like to think my happiness is an investment that I like better than the return I would get from being a landlord and all the hassles that can bring. Just depends on what you want.. |
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