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Scared to be a home owner?
- Thread starter FREAKYSTLYEY
- Start date
I bought my first house at 24 and wouldn't have had it any other way. At least all the years of mortgage payments add up to me owning something instead of renting and having nothing when the lease comes up.
If you can buy a house, you should. Home prices are insanely low. Ya, they've been that way for a while, but lets face it; that wont last forever.
Someone who's renting an apartment or small house for ~$1500/mo would be better suited buying a $350K house with a 30 year note. The cost? ~$1500/month.
Dont worry about "the rest of your life" being in one house... You'll eventually upgrade to a nicer place when the opportunity presents itself. Usually, it wont matter WHAT condition the housing market is in when selling to buy.
All that said, some people dont want to deal with the hassles of homeownership, but i can tell you, when they get old and can no longer work, and then it comes time to pay the rent, and then their kids stick 'em in an old folks home. And they live the rest of their days kicking themselves in the ass for not buying a home. Sad, really.
Someone who's renting an apartment or small house for ~$1500/mo would be better suited buying a $350K house with a 30 year note. The cost? ~$1500/month.
Dont worry about "the rest of your life" being in one house... You'll eventually upgrade to a nicer place when the opportunity presents itself. Usually, it wont matter WHAT condition the housing market is in when selling to buy.
All that said, some people dont want to deal with the hassles of homeownership, but i can tell you, when they get old and can no longer work, and then it comes time to pay the rent, and then their kids stick 'em in an old folks home. And they live the rest of their days kicking themselves in the ass for not buying a home. Sad, really.
I bought my house almost three years ago. It'll be three years in March actually. I have absolutely no regrets at all.
I may be relocating out of state in 6 months or so. The worth of my house has gone up a decent amount because while here I had multiple home improvement projects. I can do most work myself so the actual $$ I have into my home is minimal compared to what it would have been if I had to hire people to do the work.
I may be relocating out of state in 6 months or so. The worth of my house has gone up a decent amount because while here I had multiple home improvement projects. I can do most work myself so the actual $$ I have into my home is minimal compared to what it would have been if I had to hire people to do the work.
27 and own two houses. I like it except when S*** breaks or I have to do maintenance, then I wish I rented somewhere where that was all taken care of. It's pretty nice for picking up chicks tho "you have your own place, how much is rent here?" "I own it" :: panties fall off of their own accord ::
I too was in this same boat about two Summers ago. Since moving out I had always lived in apartments and underneath it all hated it. Was paying over $600 a month for a very small studio apartment, never could find a parking space anywhere near or in front of my building and also had some inconsiderate a-holes who lived next to and above me, especially above me I could of killed that guy!
In talking with my folks for advice and also with record lows in interest rates and it being a overall buyers market I started to look. Looked at a lot of houses around my general area still being close to my family, work etc. Long story short I found a house and a good deal on it, good location, etc etc. However before I totally signed my name on the line I was really second guessing myself if I was ready for it or really wanted to added responsibilities etc. I backed out and lived in the apartment another year.
Next Summer rolled around and I was on the hunt, this time I felt destined to find something. Again long story short I have now been a homeowner since May of this year and have a great newer house (built in '08) and have been loving it. I have two dogs and can, have a yard they can run in now and it's the small things, but I have a garage! And two car at that. I don't mind mowing or anything and between my dad, brother and I we can fix almost anything that may arise. Sure I don't have quite as much free spending money as before, however I manage. Plus as others said the interest is tax deductible.
It may be not for everyone owning a home, however it has it's perks.
In talking with my folks for advice and also with record lows in interest rates and it being a overall buyers market I started to look. Looked at a lot of houses around my general area still being close to my family, work etc. Long story short I found a house and a good deal on it, good location, etc etc. However before I totally signed my name on the line I was really second guessing myself if I was ready for it or really wanted to added responsibilities etc. I backed out and lived in the apartment another year.
Next Summer rolled around and I was on the hunt, this time I felt destined to find something. Again long story short I have now been a homeowner since May of this year and have a great newer house (built in '08) and have been loving it. I have two dogs and can, have a yard they can run in now and it's the small things, but I have a garage! And two car at that. I don't mind mowing or anything and between my dad, brother and I we can fix almost anything that may arise. Sure I don't have quite as much free spending money as before, however I manage. Plus as others said the interest is tax deductible.
It may be not for everyone owning a home, however it has it's perks.
Sadly, this is a rare occurrence, such as it is the rare occurrence that the unforeseen event can solve itself without requiring any financial funding. It is important for the homeowner to be able to handle and “juggle” so to speak, his finances so that the mortgage loan can remain paid or reduced n such a way that he can divert the needed resources to fulfill the needs of the emergency event and still keep his real estate property or home.
The way interest rates are in the states. Buy a house goddammit!
But really, you need to feel it's the right thing to do. It is a fairly major commitment, however if prices are good and you plan ahead, chances are you'll beable to sell it and cover any fees, hopefully with a bit of profit, before you decide to head off somewhere else. So long as you're not losing a huge amount of cash in interest, which at the moment you shouldn't be, it's a good investment. As you said, better than paying rent, pay your own mortgage, not somebody elses.
Personally I say your money is better as a deposit on a piece of real estate that evaluates than it is sitting in the bank making a small amount of interest that probably doesn't even keep up with inflation at the moment. Your cash is getting worth less and the dirt around you more
Live in the place, rent it out, whatever. If you get a good location with a few spare bedrooms, live there with a load of room mates and let them pay your mortgage for you.
Also, having an asset of some kind is great for getting any future loans or finance.
But really, you need to feel it's the right thing to do. It is a fairly major commitment, however if prices are good and you plan ahead, chances are you'll beable to sell it and cover any fees, hopefully with a bit of profit, before you decide to head off somewhere else. So long as you're not losing a huge amount of cash in interest, which at the moment you shouldn't be, it's a good investment. As you said, better than paying rent, pay your own mortgage, not somebody elses.
Personally I say your money is better as a deposit on a piece of real estate that evaluates than it is sitting in the bank making a small amount of interest that probably doesn't even keep up with inflation at the moment. Your cash is getting worth less and the dirt around you more
Live in the place, rent it out, whatever. If you get a good location with a few spare bedrooms, live there with a load of room mates and let them pay your mortgage for you.
Also, having an asset of some kind is great for getting any future loans or finance.
Buying a house is scary. You have the mortgage, you're responsible for all maintenance, which can get very expensive. It pays to be handy. Property taxes will always go up. even when you pay your house off, you have taxes and utilities which can be a lot if you have a big house.
Moving can be a pain if you're selling in a down market.
If you're in an apartment you dont' have to buy all the tools and things you'll need to maintain a house.
In essence you have far fewer expenses renting, but rent always goes up and you'll never have a chance to own anything. so rent as long as you can and save a lot of money.
I don't believe owning a house is as great an investment as people will lead you to believe. I've been in my house almost 4 years and it's worth at least $10,000 less than what I bought it for.
You're probably going to be paying double what your house is worth due to the nature of home loans and interest payments.
if you live in your house your whole life then it's great, you can be old and your mortgage payments are the same as 30 years ago and by that time, that's a small amount because of inflation.
Right now however paying my mortgage (3.75% interest) is a better investment than any bank account or cd I can open. But if i want to get any of my equity out of my house i'm gonna have to pay a bunch of interest to borrow on my house. the money i've already spent toward it. Banks have you bent over a barrel, that's for sure.
that's the scariest part.
anyway very little of this is coherent, so i'll stop
Moving can be a pain if you're selling in a down market.
If you're in an apartment you dont' have to buy all the tools and things you'll need to maintain a house.
In essence you have far fewer expenses renting, but rent always goes up and you'll never have a chance to own anything. so rent as long as you can and save a lot of money.
I don't believe owning a house is as great an investment as people will lead you to believe. I've been in my house almost 4 years and it's worth at least $10,000 less than what I bought it for.
You're probably going to be paying double what your house is worth due to the nature of home loans and interest payments.
if you live in your house your whole life then it's great, you can be old and your mortgage payments are the same as 30 years ago and by that time, that's a small amount because of inflation.
Right now however paying my mortgage (3.75% interest) is a better investment than any bank account or cd I can open. But if i want to get any of my equity out of my house i'm gonna have to pay a bunch of interest to borrow on my house. the money i've already spent toward it. Banks have you bent over a barrel, that's for sure.
that's the scariest part.
anyway very little of this is coherent, so i'll stop
If you have the ability to buy a home, it is stupid not to at this time. A recent study showed that owning was 45% cheaper than renting in some areas.
Values are only going to go up at this time, plus the huge mortgage deduction on your taxes. When you sell and move, you essentially get back what you put in.
Just buy wisely, as as a car or bass.
Values are only going to go up at this time, plus the huge mortgage deduction on your taxes. When you sell and move, you essentially get back what you put in.
Just buy wisely, as as a car or bass.
Calebmundy
Supporting Member
- Apr 5, 2007
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- Endorsing Artist: DNA Amplifiers, Lākland Basses
The idea that paying rent is putting money into something that "goes towards basically nothing" is a common sentiment that really bothers me. You are getting the use of the house/apartment-shelter, comfort (on various levels) storage etc. You're getting a lot more than nothing.
Whether or not to buy a house can be tricky. I did it only because I bought a tiny house in a half-way sketchy neighborhood, so my mortgage is less than $600 a month and it saved me money on rent. So far, it's been about even maybe. Maybe a little more expensive. Currently saving for a new roof. There are other benefits, it's "my" place, I can paint ect without asking someone. I love not sharing walls any more.
Whether or not to buy a house can be tricky. I did it only because I bought a tiny house in a half-way sketchy neighborhood, so my mortgage is less than $600 a month and it saved me money on rent. So far, it's been about even maybe. Maybe a little more expensive. Currently saving for a new roof. There are other benefits, it's "my" place, I can paint ect without asking someone. I love not sharing walls any more.
My house (recently appraised for a re-fi) is worth nearly $43k less today than when it was purchased in 2003. But in 21 years this heap of sticks & stucco will be mine.
In 26 years you'll own your house. Any way you slice it, you still come out on top, imo. Sure, theres been a housing market slump thats lasted a long time. A really long time. But I think that hurts house flippers more than folks who buy a home for a residence.
got my first when i was 27, my second (now a rental) when i was 29. both small, and in "meh" neighborhoods. BUT those "meh" neighborhoods will forever have folks looking to rent. i have stuck to the finance "trick" to pay them off way early, and now owe less than 50k on one and less than 40k on the other.
there's definately a sense of pride in being a homeowner, but when your furnace stops working in january, it get's interesting. overall, i have no regrets about it. if you can find a way to buy, i really feel it's a should-do. every choice-between-two has pros and cons, and a pro to one person is a con to another, so it's an individual's decision. BUT due to the nature of the website we are discussing this on, i'll leave you with this parting question: how many landlords give people the green light to build a band room/recording studio in their house, garage or apartment?
there's definately a sense of pride in being a homeowner, but when your furnace stops working in january, it get's interesting. overall, i have no regrets about it. if you can find a way to buy, i really feel it's a should-do. every choice-between-two has pros and cons, and a pro to one person is a con to another, so it's an individual's decision. BUT due to the nature of the website we are discussing this on, i'll leave you with this parting question: how many landlords give people the green light to build a band room/recording studio in their house, garage or apartment?
I just bought my first house this past May at 30 years old. I'd been working on it the last few years, but finally it all fell into place and worked out.
I'm single, no kids, and yeah it's a big jump (especially when it's all on you) but really that feeling went away pretty quick when you start buying stuff to fill it up and you realize it's "yours" (sorta, anyway).
Since I graduated college in 2005, this is my 7th residence so yeah I'm tired of moving lol. Plus it's in an excellent location so I'm not worried about property values declining or not being able to rent it if I ever had to move for work, etc..
I'm loud w/ my music and TV and bass/guitar jamming so yeah, no more shared walls effin rules.
Also, buy a little "less" house and get a 15 year note. Rates are significantly lower and you'll pay it off in half the time. That's what I did.
I'm single, no kids, and yeah it's a big jump (especially when it's all on you) but really that feeling went away pretty quick when you start buying stuff to fill it up and you realize it's "yours" (sorta, anyway).
Since I graduated college in 2005, this is my 7th residence so yeah I'm tired of moving lol. Plus it's in an excellent location so I'm not worried about property values declining or not being able to rent it if I ever had to move for work, etc..
I'm loud w/ my music and TV and bass/guitar jamming so yeah, no more shared walls effin rules.
Also, buy a little "less" house and get a 15 year note. Rates are significantly lower and you'll pay it off in half the time. That's what I did.
Owning a home is great. Maintaining it is a PITA and at times can get ridiculously expensive.
When you're in my situation with a 50-hour a week day job plus frequent weekend gigs (sometimes overnighters), finding the time to do even basic things like mowing the lawn or keeping the deck stained can be a challenge sometimes.
And as for the mortgage interest tax deduction... yeah that's nice but I personally believe that will be going away within the next 4 years so I wouldn't use that as a factor in my decision.
P.S. Good luck getting a mortgage right now. Rates are dirt cheap but the standards are sky high. If you've got even just a couple dings on your credit rating most banks won't even talk to you.
When you're in my situation with a 50-hour a week day job plus frequent weekend gigs (sometimes overnighters), finding the time to do even basic things like mowing the lawn or keeping the deck stained can be a challenge sometimes.
And as for the mortgage interest tax deduction... yeah that's nice but I personally believe that will be going away within the next 4 years so I wouldn't use that as a factor in my decision.
P.S. Good luck getting a mortgage right now. Rates are dirt cheap but the standards are sky high. If you've got even just a couple dings on your credit rating most banks won't even talk to you.
HUUUUUUGE +111 on this. I run my music stuff through a Sch C on my tax return and yeah, talk about the ultimate in butthurdt. I too have great credit, clean record, etc. and it was still a huge PITA for me to get finally approved. "Preapproved for $$$" means jack until you get down to it, and you've paid thousands in app fees, etc., and they STILL don't push your loan through. Happened to me the afternoon before I was to buy my first place back in 2010. Talk about a sickening feeling.
I bought my first home in 2011. I too was nervous about expense, upkeep etc. so far it hasn't been bad at all. A landscaper takes complete care of the yard every week for 75 bucks a month, the utility bills are of course higher than any apartment I rented but not astoundingly so.
Getting the loan was pretty easy with excellent credit and a decent down payment. Only 1 income too.
I've been here for a year and love it. If its something you are able to to go for it.
Getting the loan was pretty easy with excellent credit and a decent down payment. Only 1 income too.
I've been here for a year and love it. If its something you are able to to go for it.
