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senor punk posted:Upstate/Western NY is dying? I don't understand the Upstate NY is dying part but. I plan on staying in the house I buy until I die. I plan on buying a house with enough bedrooms to support 2-3 kids and room to grow. I don't want to throw my kids around like I was growing up. Going to a new School every 16 month blew hardcore. Also I am looking for advice on what to do for house buying, I have no clue how it works. and Yes I would like to go the FHA way if the rates are good.
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Jan 30, 2011 10:17
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I'm not hating on Rochester, I'm hating on the idea of buying a house at your age. You don't have to be tied down to a mortgage to get married or have children. You can rent a house just as easily as buying one, but renting keeps options open. I'll also let you in on a little secret, the odds of you working 20 years at a single company are laughably small. Companies get bought, corporate HQ's move, markets die. This thread is full of people who bought a house at your age, and by far most of them regret it. We're trying to get you to not repeat or mistakes. edit: I'll go ahead and answer your questions, but I'll stress buying a house at your age is a really stupid decision. Buying a house is relatively straightforward. Go find a Realtor, look at some houses, find one you like. Haggle on the pricing, get approved for the mortgage, sign your life away. Nothing to it really. Buying a house is expensive though. If you go the FHA route you're going to need 3.5% down, but there's a poo poo ton of extra costs associated with buying a house. You'll need to pay for inspections. You'll need to fund your escrow account, you'll have associated utility deposits to put down. You'll need to move, that costs money. You'll need a refrigerator and a washer and dryer as those don't come with houses normally. You're going to need a few grand once you move in because you're going to want to change some things in your house. You'll probably want to paint, change a few light fixtures, maybe recarpet a few rooms. You get the point. Oh great, now your a homeowner. Welcome to the new world homeowner upkeep. You'll need to find a pest control and termite company, that poo poo costs money. You're Saturday mornings are forever ruined thanks to seasonal yardwork. You get to pay property taxes. That's just money down the drain. In addition to your 7K downpayment, I would really recommend having about 5K on hand for all the expenses you're going to have the first few months of homeownership. I would also recommend having 6 months of expenses in the bank before committing to a house. So if your bills are 3K a month, you need to have an 18K emergency fund to fall back on in case something happens to your income* * I'm not just talking about losing your job. What happens if you get into a horrible car accident and can't work for 4 months? skipdogg fucked around with this message at 10:33 on Jan 30, 2011 |
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Jan 30, 2011 10:19
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skipdogg posted:I'm not hating on Rochester, I'm hating on the idea of buying a house at your age. I understand that but I doubt the company is going anywhere any time soon. You can look it up, Wegmans. They are family own multi-billion dollar company, which is still growing. A lot of the people that I work with and have worked with have been with the company for 15+ years. The reason I don't want to keep renting is the fact that I hate moving, and since when I get married I will have to move again already I just want to cut out the 4 or 5 more moves I will have until I have the 20% saved. My parents rented my entire life since they had to always move for jobs, and it just blows. I haven't even unpacked all my moving boxes for when I moved up here 6 months ago since I am so used to moving. To add to wanting to buy VS rent is that you can rent a place up here for 950 or have a mortgage for 1050. I want a place to call HOME, not can't put holes in the wall, have to tip toe around to avoid making the neighbors mad, not having to hear loud neighbors, not having to worry about get security deposit back, having the rent go up, change in owners. I want a guest room, office, my own washer and dryer, responsibility. Dbhjed fucked around with this message at 10:33 on Jan 30, 2011 |
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Jan 30, 2011 10:24
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Dbhjed posted:I understand that but I doubt the company is going anywhere any time soon. You can look it up, Wegmans. They are family own multi-billion dollar company, which is still growing. A lot of the people that I work with and have worked with have been with the company for 15+ years. Well gently caress you should have said that earlier. Yeah Wegmans ain't going anywhere, and you are definitely correct in thinking they will stay anchored in that part of the state. I kinda did something similar in the sense that I rushed to buy something out of sheer laziness and not wanting to have to move multiple times. I wanted to buy at some point, since at the time I had just gotten what is going to be a very stable career type job (municipal employee in a position that the city is continuing to hire for, even as there are hiring freezes and layoffs for other city agencies). When I found out I'd have to be moving out of the place I was renting due to issues the landlord was having (dude was a researcher working off a grant and bought an investment apartment for some reason. Grant got cut, he lost his job, found himself in a terrible position. I don't know why the hell he bought). I decided right then and there that I was going to see if I could find a place to buy so I wouldn't have to move to another rental and potentially move again at some point in the future if I found a place I could buy. I regret that part of my decision. That said, if you are looking for the "raise a family" house, and don't plan on moving for a long time then go for it.
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Jan 30, 2011 10:31
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senor punk posted:Well gently caress you should have said that earlier. Yeah Wegmans ain't going anywhere, and you are definitely correct in thinking they will stay anchored in that part of the state. I kinda did something similar in the sense that I rushed to buy something out of sheer laziness and not wanting to have to move multiple times. I wanted to buy at some point, since at the time I had just gotten what is going to be a very stable career type job (municipal employee in a position that the city is continuing to hire for, even as there are hiring freezes and layoffs for other city agencies). When I found out I'd have to be moving out of the place I was renting due to issues the landlord was having (dude was a researcher working off a grant and bought an investment apartment for some reason. Grant got cut, he lost his job, found himself in a terrible position. I don't know why the hell he bought). I decided right then and there that I was going to see if I could find a place to buy so I wouldn't have to move to another rental and potentially move again at some point in the future if I found a place I could buy. Awesome, now going back to my original post is there something I can do now besides just saving up that will benefit me when I do buy a house since I am not looking to even start looking until this time next year and def not buy before March 2012. I plan on being picky as hell when I am looking, since I plan on being there for a while.
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Jan 30, 2011 10:35
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Dbhjed posted:Awesome, now going back to my original post is there something I can do now besides just saving up that will benefit me when I do buy a house since I am not looking to even start looking until this time next year and def not buy before March 2012. I plan on being picky as hell when I am looking, since I plan on being there for a while. -List your average take home pay per month as well as the outstanding debt you have on your student loans, credit cards, and furniture so that we have a better picture of how much of what you make is spent, and how far you have to go on that sort of stuff. -Get your wife a better job? -Try and cut spending where possible and start saving more, the down payment isn't the only money you have to have. There's the lawyers fees, the inspection, realtors fees, and closing costs, not to mention the bank will probably want to see cash in reserve to cover 6 months of mortgage payments. My down payment was 53,600, yet I had to show about 75k in liquid assets, and that's not including the 10k deposit I had already put down. Edit: No I guess there isn't that much besides saving more, getting rid of debt where possible, and maybe you should check your credit report at some point before heading to the banks (annualcreditreport.com is the legit free site). If you wanted to start the legwork you could always try and get an idea of what the banks in the area charge for closing costs, look into finding a realtor, lawyer, and mortgage broker, and start thinking about/checking out areas you'd want to buy in. senor punk fucked around with this message at 10:53 on Jan 30, 2011 |
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Jan 30, 2011 10:44
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I edited my post above with info you'll need. You also really should sit down and figure out why you equate renting = moving in your brain. My mother in law has rented the same apartment for 12 years now. Just because you rent doesn't mean you have to move. Before I bought a house I lived in the same apartment for over 3 years.
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Jan 30, 2011 10:48
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senor punk posted:-List your average take home pay per month as well as the outstanding debt you have on your student loans, credit cards, and furniture so that we have a better picture of how much of what you make is spent, and how far you have to go on that sort of stuff. Getting wife a better job is something we are actively working on, good news is she also works at Wegmans, but it is hard to get in full time. Bills wise: Take home pay is 610 a week after 401k, insurance, and 25 bucks in to another savings account. Student loan is still very big, 25,000 left since I just graduated May 2010. I owe 3,600 on my furniture but I have 48 months with no interest, so I am taking my time with it. Then I have one credit card with 2,500 on it which I am paying 200 a month to get it down. I am also paying 120 a month for different things for my wedding. But the credit card and wedding stuff will be done before I get married. Plus unless I start doing poorly at my job I've been guarantee 3.5% raises every six months for the next two years. As for cutting other stuff I don't think there is any room to improve there. I have an extra 2,000 in another saving account that I can also dip into as well as another 1,000 that I can use. But those I want to keep onto and not use for the house unless it because necessary. But looking into closing costs I am going to take what two of my friends did. As long as there is nothing major wrong with the house, offer them what they are asking but have them cover ALL closing costs.
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Jan 30, 2011 10:56
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skipdogg posted:I edited my post above with info you'll need. You also really should sit down and figure out why you equate renting = moving in your brain. My mother in law has rented the same apartment for 12 years now. Just because you rent doesn't mean you have to move. Before I bought a house I lived in the same apartment for over 3 years. Seriously. There are tons of people like this in NYC, though a lot of it has to do with the rent control laws that still exist here. The first place I lived in NYC I was living with a woman whose rented the same apartment for probably 33 years now, and plans on living there till she dies. It does help that she is rent controlled, so the landlords have their hands tied on how much they can raise the rent, however she's getting a gigantic 2 bedroom for at least 1/3rd the market rate. Of course the situation would not have been as sweet if it was a fair market apartment, however I think even then renting would have been a better deal, since even at market rate renting would probably be cheaper than a mortgage + high maintenance fees.
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Jan 30, 2011 11:00
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Dbhjed posted:But looking into closing costs I am going to take what two of my friends did. As long as there is nothing major wrong with the house, offer them what they are asking but have them cover ALL closing costs. Don't be so naive. If a house is overvalued by $40k is that a good deal for you? When you start to look at houses try and get a good gauge on the market and see what's out there. You may fall in love with something early on, only to find out after a few more houses that the dream house is nice, but totally overpriced for what it is.
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Jan 30, 2011 11:04
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senor punk posted:Seriously. There are tons of people like this in NYC, though a lot of it has to do with the rent control laws that still exist here. The first place I lived in NYC I was living with a woman whose rented the same apartment for probably 33 years now, and plans on living there till she dies. It does help that she is rent controlled, so the landlords have their hands tied on how much they can raise the rent, however she's getting a gigantic 2 bedroom for at least 1/3rd the market rate. Of course the situation would not have been as sweet if it was a fair market apartment, however I think even then renting would have been a better deal, since even at market rate renting would probably be cheaper than a mortgage + high maintenance fees. I grew up in eastern PA, which has no rent control and had wild growth in the past 10 years, also my parents never really had that stable of jobs so they would get a new one every few years, and since they didn't pay well if the rent ever went up we would move that happened a lot. Things are more stable up here but I really don't want to be paying for a house when I am 60. Also we don't know how long the market is going to be this low. I want to get a decent jump on that. My biggest thing is as long as I live in a rented living space I will never really feel at home. In my head it is just temporary. I am so used to moving from apartment to apartment that I have my entire life in eight boxes. Those eight boxes are still sitting in my room and I only go into them when I need something. Also right now my future wife and I live in a two bedroom apartment since because of moral and life choice reasons we don't sleep together and once I am married we would only need 1 bed room and spending the 100 extra a month for the extra bedroom would be dumb, so we would have to move again anyway. I feel that living in a house that I have to be in for 20 year before even thinking of being able to move again will allow me to plant some roots and have a home. Not a place that I can't do anything with and have to worry about the attached people while they seem not to care about me. (This apartment is half as bad as some I've lived in when I comes to this but the idea is still in my mind) Also if I lived in NYC I would never think of owning a place. I have some friends living there and man renting is almost like owning there.
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Jan 30, 2011 11:13
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senor punk posted:Don't be so naive. If a house is overvalued by $40k is that a good deal for you? When you start to look at houses try and get a good gauge on the market and see what's out there. You may fall in love with something early on, only to find out after a few more houses that the dream house is nice, but totally overpriced for what it is. Another good thing about Rochester since the Property tax is so high, most of the house prices are artificially low. Example: I was looking at two houses about 2 miles from each other. One was assessed at 110,000 but selling for 105,000 and the tax was 3,800 the other was assessed at 112,00 and selling for 120,000 and the tax was 4,500. It seems if you want to sell your house it is better to keep the costs low since this area has the highest property tax in America. I don't know if it is recommended but can't you lump closing costs in with your mortgage? Dbhjed fucked around with this message at 11:22 on Jan 30, 2011 |
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Jan 30, 2011 11:20
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Debt - 25000 Student loans - 3600 Furniture - 2500 Credit Card - 31,100 Total Savings - 8000 (Based on your posts) Income (per month) - 2540 Bills(per month): - 300 student loans - 80 car insurance - 120 cell phone - 100 furniture - 100 Cable/internet - 200 credit card - 750 rent - 100 utilities - 100 savings - 120 Wedding poo poo? - 1970 Total According to this you have $570 a month left over. Obviously some of that goes to food, groceries, and other random expenses, but I would try and keep track of spending and figure out where it's going. You say your mortgage payment is probably going to be about $1000, which adds $250 to your monthly expenses, and if property taxes were $3500/year, that's $291 per month, those 2 things right there eat up what money you had left over, and food isn't even mentioned in your budget. While you will be getting those 3.5% raises every 6 months for the next 2 years, you will only end up grossing another 7000 after those 2 years, which is really only going to net 4k-ish after taxes. It will definitely help, but it's not going to be a day and night change. If at any point it was just up to you to cover all the bills you'd be cutting it pretty drat close. You need to pay off the credit/furniture/other small debt and then don't carry a balance on your card. senor punk fucked around with this message at 11:31 on Jan 30, 2011 |
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Jan 30, 2011 11:28
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Dbhjed posted:It seems if you want to sell your house it is better to keep the costs low since this area has the highest property tax in America. So what you're saying is that local economic conditions are depressing prices. Make sure to remember that before you bite the bullet. You can lump closing costs in, but that means you'll be paying 5-6% on however much extra that is for the next 30 years, and your monthly payments will be slightly higher. I personally wouldn't, but to each his own.
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Jan 30, 2011 11:30
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Aren't property taxes covered by the bank until you pay off your mortgage? I was factoring that into the 1000 for mortgage payments. Also the extra money I have extra every month goes into my saving for a house. I expect it to be 7000 by the time I look for a house (it is 5,000 but growing every month). I am looking to see if any bank or other mortgage company has a program like, looking to buy a house down the road open an account with us with the intention of using the money for a mortgage and we will give you some type of package when you go to buy a house. Dbhjed fucked around with this message at 11:38 on Jan 30, 2011 |
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Jan 30, 2011 11:34
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There are a lot of red flags in my mind for what you are doing. Why don't you just wait save up the 20%+ so you can prove to yourself that you can live frugally enough to be able to actually afford something, as well as not having to pay PMI? You are also getting married super young and the statistics are definitely against you. You live with your girlfriend now, how do you know she doesn't have some weird habits or invade your personal space in some way that you are going to be unable to deal with? You sleep in separate bedrooms, you are basically just roommates at this point. Maybe you should take some time before getting married (I know this isn't going to happen) or for a year or two after getting married to actually live in close quarters and make sure you don't hate each other before you sign your lives away? Maybe you should unpack your boxes, pay down your loans and save your money before making such a big decision. You seem to have already made up your mind though and that's fine I guess.
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Jan 30, 2011 11:38
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Dbhjed posted:Aren't property taxes covered by the bank until you pay off your mortgage? This is my weak spot, since I own a Co-Op and property taxes are covered by the monthly fee I pay to them. You may be right though. That said, you'd still be looking at 250-350 more a month.
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Jan 30, 2011 11:39
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IratelyBlank posted:You are also getting married super young and the statistics are definitely against you. You live with your girlfriend now, how do you know she doesn't have some weird habits or invade your personal space in some way that you are going to be unable to deal with? You sleep in separate bedrooms, you are basically just roommates at this point. Maybe you should take some time before getting married (I know this isn't going to happen) or for a year or two after getting married to actually live in close quarters and make sure you don't hate each other before you sign your lives away? I don't know if house will be closer quarters than a 3 room apartment. A 4 bedroom house with a basement and another floor will give us more room. I agree with getting the 20% saved up but that will not happen to late in life about the time my gf and I want to have kids. I don't want to imagine moving with a new born or a pregnant wife. Also I want a mortgage to factor every other future expenditure and not the other way around, like a car payment right now my car is fine but in 3 year it will prob be time to get something newer. I want to have a house already and have to get a smaller car payment then have a car payment and have to have a lower mortgage. Once I pay off my CC and the wedding stuff that will give me 320 extra everything added to the 750 I am paying for rent now that will give me 1070 for a mortgage, plus I will be making more at my job by then. Also we are getting married in 15 month and are looking to get a house right before we get married. Example timeline: Jan 2012 - start looking for house Feb 2012 - Keep looking maybe make some offers March 2012 - close on a house and move in April 2012 - Get married and live in new house Dbhjed fucked around with this message at 11:54 on Jan 30, 2011 |
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Jan 30, 2011 11:47
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senor punk posted:This is my weak spot, since I own a Co-Op and property taxes are covered by the monthly fee I pay to them. You may be right though. That said, you'd still be looking at 250-350 more a month. I just asked a few people that I work with and property tax is included with mortgage that is why most factors are 1000, it would be less if they were lower.
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Jan 30, 2011 11:48
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Dbhjed posted:I don't know if house will be closer quarters than a 3 room apartment. A 4 bedroom house with a basement and another floor will give us more room. You are living in two separate bedrooms, if I am reading correctly, which is a lot different than sharing the same personal space. Dbhjed posted:I agree with getting the 20% saved up but that will not happen to late in life about the time my gf and I want to have kids. I don't want to imagine moving with a new born or a pregnant wife. You don't want to wait 2-3 years to solidify your situation before you take such a big step? It's your choice since you are the one paying for it, but it really seems like you are looking for validation. The answer to your question about if you can plan with a bank ahead of time for a mortgage is that you need to go ask your bank. I have never heard of anything like this but you would have more success trying to work with a local credit union. edit: nm
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Jan 30, 2011 11:58
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IratelyBlank posted:You are living in two separate bedrooms, if I am reading correctly, which is a lot different than sharing the same personal space. The only time that we are not together beside work is when we are sleeping we spend a lot of time together. On top of that we have been together for 4 years. I am sure my choice to marry her is a good one. I know she snores and that doesn't both me. I don't want to have my first kid when I am 29 that is too late in life. Remember I am talking a year down the road. I am in no shape right now to buy a house, that would be dumb. I am looking a year out but since I have some cash saved I am looking to pre invest with a bank to maybe get a lower rate or some cash match. ALSO: Just in thinking, I know everyone is saying save until you have the 20% to avoid the PMI, but is it wrong to think that the 750 I am paying for rent every month not be better spent than paying 750 dollars to paying off my house? The 27,000 I would be paying in rent the next 3 years could be 27,000 less I owe on a house while trying to save 13% more than I have. Or is this thinking way off? Rent = 750 Over 3 year that will be 27,000 (just for a place to live and not having to fix something if it breaks) Would that be better spent on paying off a mortgage than trying to save while paying rent if rent doesn't go up? I know interest is the key here but is this thinking off? Dbhjed fucked around with this message at 12:28 on Jan 30, 2011 |
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Jan 30, 2011 12:04
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Dbhjed posted:is it wrong to think that the 750 I am paying for rent every month not be better spent than paying 750 dollars to paying off my house? The 27,000 I would be paying in rent the next 3 years could be 27,000 less I owe on a house while trying to save 13% more than I have. Or is this thinking way off? The one thing I would say is that you'll need much more emergency savings than you think you will. Houses are way way way expensive, and if you're not prepared you might be in for a rough surprise when something bad happens the first year out. We gave ourselves a huge buffer when buying (like an extra 20k in savings) and even that was low enough to make me feel nervous when all the things started adding up.
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Jan 30, 2011 16:27
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Couple of points here for you: - definitely pull your credit score to make sure nothing is holding you back there - nothing says "I have no money" like FHA with closing costs rolled in. You need to save as much as possible and have your future wife start saving money as well. If you can get to 5% down to do conventional it will save you money in the long run. Here are the numbers for you for a $115K loan, 5%, $3800 property taxes - PITI $1070 465 interest 150 principal 50 home insurance (guess) 87 PMI 315 property taxes So of your $1070, $150 actually goes towards principal (avg over first three years). Over three years you will save $5400 towards principal. If you are in the 25% bracket you will save $215 a month, making your net payment $855, but that doesn't account for the standard deduction. Total throw away money the first three years? At least $25000, the actual amount depends on your tax situation. Just realize that with such a small down payment (basically 0 if you have to roll in closing costs) you aren't really saving anything over renting (at least the first couple of years).
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Jan 30, 2011 16:59
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Dbhjed posted:
Personally, I would never buy a house the month before my wedding. Buying a house and getting married are two of the the most stressful things you will do in your life. I would not want all of that stress compacted over thirty days. That last month before my wedding was stress hell and we were not even buying or moving. I had more fights with my then fiance in that month than we had in years before that. I can't imagine what it would have been like if we were trying to close on a house at the same time. Personally, I would wait a few months after the wedding so the stress dies down a bit. That last month your wedding to do list will be a mile long, and everyone will be losing their poo poo.
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Jan 30, 2011 19:00
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Realjones posted:Just realize that with such a small down payment (basically 0 if you have to roll in closing costs) you aren't really saving anything over renting (at least the first couple of years). Saving money and owning a house are not two words that should ever be in the same sentence. Unless you have enough to put 20% down plus at least $10k in a "home expenses" fund (what happens if your furnace dies and needs to be replaced?) Plus a six-month cushion for monthly expenses. Homes are basically giant money fires, and you will spend way more in interest, utilities, and random house poo poo than you think possible right now. For example, oil ain't free. Heating a standalone home takes a lot more of it than heating an apartment that can leech off its neighbors. Oh, and if you don't think the market can go down further, look at Detroit sometime. Your employer may be secure, but the rest of the employers in the city affect housing prices, and Rochester isn't a great bet with those. All of that said, if you want the luxury of home ownership, that may all be worth it to you. Just don't try to cloak that luxury with the word "investment."
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Jan 30, 2011 19:13
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I think it is hilarious that someone with $5k in savings and the ability to "save" $2k/year is going to "buy" a 100% financed house. I'm sure it will end well dude. Go for it.
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Jan 30, 2011 19:27
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Dbhjed posted:To add to wanting to buy VS rent is that you can rent a place up here for 950 or have a mortgage for 1050. +$100 for extra utilities +5-10% annually in maintenance Add that of that $1050, you are only getting $150 actually applied to your principal making it financially similar to renting but with a lot more risk. Paying $100 more for a mortgage is not a good idea. I went from a $1000/mo 2 bedroom apartment to a $700/mo mortgage+ins+taxes and I am breaking even after all the little costs of home ownership come into play. I can understand your wanting to buy a house because of the responsibility and freedoms it allows. If you decide to buy, just realize this is a worse financial decision than renting and it will make you poorer. At your current income you will be saving nothing and any little expense will wreck you financially. Wait until after the wedding, see how your wife's employment plays out, pay off all of the debt except for student loans, then make a more informed decision on what to buy. Once you have two reasonable incomes and an actual down payment you will be in a better position to survive the pitfalls of buying. Tax rates in your area are loving retarded and increase your mortgage by 40-60%. Is all of that county or can you escape from some of it by being outside of city limits? If you are determined to buy, NACA has an office in Buffalo if you are willing to drive there for a few meetings to save a few hundred a month on your mortgage. They are a non-profit organization that fleeces banks for money by protesting "predatory lending practices". To make them go away BoA and Citibank have set up big funds for them to lend out at low rates if the person goes to a few meetings/credit counseling. Whether you agree with their ideology or not they have an excellent home purchase program (0% down, no PMI, no closing costs, retarded low rates) if you are willing to deal with going to some financial counseling meetings and deal with how slow and lovely a non-profit bureaucracy is. I have 3% fixed for 30 years and all I showed up to closing with was a check for $1500 to fill escrows. I've made a few big posts about it before and I'll try to dig up an old PM if you want to know more.
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Jan 30, 2011 19:58
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The "random house poo poo" is right. In my building that I bought last year, there was some major problems with my plumbing that the inspection didn't catch and I had to immediately replace a good chunk of it for $9000.
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Jan 30, 2011 20:05
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Let's take a quick detour down the "poo poo that's broke on our new homes" road in case DO NEVER BUY wasn't clear. $10000 - Built into the loan for new gutters, furnace, AC, carpet, and some other things to meet code. $3000 - Kitchen was not salvageable. Cost included all new cabinets and countertops. It would have been double that if I paid someone else to do it. This was sort of expected. $200 - New toilet and plumbing when old one began leaking down into garage. $200 - Patch hole in roof caused by idiot former owners drilling DirectTV Satellite into place. $600 - New water heater when old one started leaking 2 weeks after move in. $500 - Pressure washer, water sealant for deck. $300 - Interior Paint Upcoming: $1200 * 2 - Renovate two bathrooms completely. 6'*4' mirror fell off the wall in the guest bathroom and the tile around the tubs are just hideous. $4500 - New Roof. Not URGENT, but its getting up there in age and will need it sooner rather than later. $2000 - 7 new windows to replace 1980's drafty metal windows. $1000 - Replace all of the interior doors that look like poo poo and aren't even the right side on some of the frames. I don't know how to explain this or how it happened. Optional: $3000 - Expand driveway (Our 2 car garage has a 1 car driveway that slowly expands and I'd like to wrap a parking pad around the side of the house. $godknows - Replace the hideous colored siding the last owners put on the house Damnit I need to come into some money. I love my house but "investment" isn't the right word at all. I was aware about most of the big stuff that happened/will happen but I'm sure I'm leaving off a pile of <$1000 items that nickle and dimed us at the start.
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Jan 30, 2011 20:27
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Arzakon posted:If you are determined to buy, NACA has an office in Buffalo if you are willing to drive there for a few meetings to save a few hundred a month on your mortgage. They are a non-profit organization that fleeces banks for money by protesting "predatory lending practices". To make them go away BoA and Citibank have set up big funds for them to lend out at low rates if the person goes to a few meetings/credit counseling. Whether you agree with their ideology or not they have an excellent home purchase program (0% down, no PMI, no closing costs, retarded low rates) if you are willing to deal with going to some financial counseling meetings and deal with how slow and lovely a non-profit bureaucracy is. I have 3% fixed for 30 years and all I showed up to closing with was a check for $1500 to fill escrows. I've made a few big posts about it before and I'll try to dig up an old PM if you want to know more. This is more of what I was looking for. Unless it really pans out that buy is worse than cutting off my arms and legs I am pretty much going to go for it. I am just looking for the best way for to use what I have now to make an investment for a future house. Driving will be worth it to save some $$$ The idea of having to pay for a house when I am retired doesn't bow that well with me. And later down the road I can make a bit more with my payments if I continue to get raises and hopefully in a few years take another position in the company that pays a bit more. I am near the bottom right now. The only reason my saving have been low is I spent a lot of the first few months I had for wedding stuff. I am paying for most of it, not my girlfriend so I've dumped close to 4 grand into that, and then another 2 on moving up here. Once that crap settles I'll have more. The way you guys make it sound you should never buy a car unless you have 80% to put down because of the cost and hit in value. I don't think I know of a single person that paid the 20% unless they got some help from their parents, and they all are doing well. Not having to worry about being directly connected to people, a damaging an apartment and having to pay, sharing laundry rooms (or paying 8 bucks a load at a place), and the ability to do what I want with the place seems worth a couple of extra 100 a month. Crap happens in life. The tax rate is high through the whole country there is no way around it and have less than an hour drive to work. Now lets say the wife makes 30k a year when she goes full time, is this still going to look like a bad idea? Dbhjed fucked around with this message at 21:02 on Jan 30, 2011 |
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Jan 30, 2011 20:43
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I read the OP and the first couple pages. I'm pretty sure I want to buy even though according to this thread renting might be a better option. I'm a graduating senior from college with no debt and going to graduate school for ~8 years with a yearly stipend of about 30k. I want to buy something by the summer and I plan to resell after 8 years unless I choose to stay in the area, and I don't think I should have a problem with that. I'm looking at townhouses/condos which are roughly $125-140k, and I can afford to put about $40k down (thanks to my parents) which should make my mortgage around $1k monthly. My school also offers noninterest loans (interest doesn't start until post graduation) up to 25k a year during my grad school years that I can put towards paying for mortgage with the intention that I sell immediately upon graduation. Alternatively I could probably rent a similar place for around the same price, my question is will I really be saving money by buying (due to recouping my mortgage through selling and tax breaks on my mortage) if I assume that housing values won't change much in the next eight years? (They've remained pretty stagnant even during the housing bubble) Edit: Also is that government tax break for first time buyers still going on? Buying does seem to be slightly better from the calculator in the NY times. singe fucked around with this message at 21:16 on Jan 30, 2011 |
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Jan 30, 2011 21:13
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Dbhjed posted:The idea of having to pay for a house when I am retired doesn't bow that well with me. And later down the road I can make a bit more with my payments if I continue to get raises and hopefully in a few years take another position in the company that pays a bit more. I am near the bottom right now. You'll still owe $500+/mo in taxes and insurance even when the house is paid off. Not adjusted for inflation of course. But really, if you live in your place for 30 years and pay it off, awesome. The thing it by buying early with no down payment you are going to get hit hard financially by PMI and the interest. Save for a while and you'll have a lower payment which you can then make extra principal payments and pay it off even earlier. Do 2 bedroom apartments with no washer/dryer really cost $950 in Rochester, NY? I was paying $1000 for a really nice 2 bedroom with washer/dryer hookups in Atlanta, GA. Dbhjed posted:Now lets say the wife makes 30k a year when she goes full time, is this still going to look like a bad idea? Until your credit card and furniture debt is paid off and you have a savings nest egg, yes. If you put the time into the NACA program and avoid closing costs there are still people who would call you stupid for financing 100%. I wouldn't finance 100% @ 5% even if I knew 100% I was going to be in the same place for 5+ years. The amount of your payment going to principal just isn't enough. When you sell your place 6% gets eaten immediately by realtor fees. $100K financed at 5% gets you that $6000 in equity at the end of year 4. After you've made $25,000 in principal and interest payments, $16,800 ($350/mo) in tax payments, $7200 ($150/mo) in insurance payments. Congratulations, you just spent $49,000 to make $0 and it only took you 4 years to do it! You did have a place to live though, at the cost of $1020. Plus the utilities. Plus the maintenance. Plus *see above*. Hope the housing market in your area stayed stable else you also get to eat all those other costs at closing. I can understand if you say "I'll be here for at least 5 years" but saying you know you'll be where you are for the next 20+ is wishful thinking at best. Someone mentioned lowering your federal tax burden earlier and I'll throw out some numbers to put that in perspective too. You have a $11,400 standard deduction as a married couple. Your $4,000/yr in property taxes isn't even getting close to letting you itemize unless you have a special situation where you have lots of other things to itemize and are already close to the $11,400. It will probably do nothing for you.
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Jan 30, 2011 21:26
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singe posted:I read the OP and the first couple pages. I'm pretty sure I want to buy even though according to this thread renting might be a better option. If you read in the past few pages, it seems better to rent for now if you plan on moving so soon. Stick that 40k in a 10 year cd and earn some interest on it.
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Jan 30, 2011 21:28
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Arzakon posted:You'll still owe $500+/mo in taxes and insurance even when the house is paid off. Not adjusted for inflation of course. I plan on being here until I die. I don't want to move again. I would like to be in the house I buy until I die as well. and Yes apartments up here do cost 1000 because of the property tax, it is the highest in the USA. Again isn't property tax covered in your mortgage until it is paid off? Also the furniture is interest free for 4 years and it will be paid off long before that. ALSO I am more interested in programs that will let me invest my 5,000 for a mortgage later that 5,000 at minimum will be 7,000 by the time I buy looking at 10-12 would prob be a better picture. And if my gf get a full time job it should be even more. I have a year of renting (which you guys prefer), tax returns and savings before I plan to buy. I am not going to buy with the 5k, I want to invest it in a bank for later. I was looking for advice on this. Dbhjed fucked around with this message at 21:37 on Jan 30, 2011 |
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Jan 30, 2011 21:31
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singe posted:I read the OP and the first couple pages. I'm pretty sure I want to buy even though according to this thread renting might be a better option. It would be monumentally stupid of you to use student loans to pay for your mortgage. If things get bad and you don't get a job right away or can't sell the house for whatever reason it is possible to get mortgage debt discharged in bankruptcy but pretty much impossible to get rid of student loan debt. Also the student loan debt is unsecured so you would be paying of debt with more debt at a higher interest rate. If you can't afford the house without student loans I wouldn't do it.
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Jan 30, 2011 21:34
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singe posted:I read the OP and the first couple pages. I'm pretty sure I want to buy even though according to this thread renting might be a better option. Might as well re-use some of my math from the previous post. Lets say you buy a $140K place and get all your closing costs paid for. With $40K down your mortgage is $100K. 8 years into your mortgage @ 5% you now owe only $85K. Yes, you are almost 30% into the mortgage and you've paid down 15% of the loan. Now you sell it and pay a realtor 6% of $140K, $8,400. So at best, if housing stays flat, you are going to make $6,600. Subtract maintenance. Subtract what the buyers want you to put towards closing costs. Subtract the extra utility bills. Subtract the HOA fees because you bought a condo and pray they didn't rise too much during your stay. Add how much the property value has increased (If you are lucky this will balance with the "subtracts"). Or you can invest that $40K and if you earn a paltry 5% you'll turn that into $60,000 with much less headache. If you use the money to "invest" in a home you are pretty much just speculating on the housing market, and your portfolio lacks diversity (You own one property). You will get no tax breaks for having a mortgage. Your standard deduction will assuredly be better than itemizing for your $140K home. If its not, then you are getting bent over in taxes, making your property investment even harder to make money on. If the $40K is dependent on you purchasing a home though then go hog wild get that money. Don't take student loans out unless you have to. They can't be discharged and are just a pain in general. The federal $8,000 tax credit has expired.
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Jan 30, 2011 21:43
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Repeating from my last post: I am more interested in programs that will let me invest my 5,000 for a mortgage later that 5,000 at minimum will be 7,000 by the time I buy looking at 10-12 would prob be a better picture. And if my gf get a full time job it should be even more. I have a year of renting (which you guys prefer), tax returns and savings before I plan to buy. I am not going to buy with the 5k, I want to invest it in a bank for later. I was looking for advice on this. New for this post: If i buy a house with the 7k assured and stay there for the whole 30 years of the loan is it still really that bad of an idea? or should I wait the estimated 10 years and buy then with the 20% down? (which I really wouldn't do just looking to see what you guys would do?) Also factoring in then I will have car payments and a kid or few to have to move with me? I know I am going to be paying 200 more a month but it seems like a half decent way to spend it to me. Or is waiting the best option without a doubt and you guys can see no reason why anyone doesn't buy a house with less than 20% ever? Dbhjed fucked around with this message at 21:49 on Jan 30, 2011 |
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Jan 30, 2011 21:47
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Dbhjed posted:I plan on being here until I die. I don't want to move again. Want doesn't always match up with can. If Rochester turns into Detroit, are you staying there because of your house? Dbhjed posted:Also the furniture is interest free for 4 years and it will be paid off long before that. Pay it off anyways if you decide you want to buy. If you don't the debt and the related payments will affect your debt-to-income ratio and thus lower the amount of home you can buy or even disqualify you. Another note, I see you are paying $300/mo on $25K of student loan debt. If that loan is through the government (DLS), restructure your payment plan to 20 years rather than 10 years on that website. It will make your debt-to-income look better on a monthly basis as your payment will drop 40% or so. You can keep paying the $300/mo to pay it down, it just makes it look better on applications. Dbhjed posted:ALSO I am more interested in programs that will let me invest my 5,000 for a mortgage later that 5,000 at minimum will be 7,000 by the time I buy looking at 10-12 would prob be a better picture. And if my gf get a full time job it should be even more. I have a year of renting (which you guys prefer), tax returns and savings before I plan to buy. I am not going to buy with the 5k, I want to invest it in a bank for later. I was looking for advice on this. If you are sticking with your 1 year plan, find a high interest savings account and put it in there. You aren't going to earn any appreciable interest in 12 months reliably unless you make risky bets and hit (dont do this). FYI Regarding your wife's income. If she moves employers and is starting full time employment in a field where she has not worked before, lenders may be wary to allow her income on your application until she has a 2 year employment history in the field she is working in.
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Jan 30, 2011 21:52
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Arzakon posted:Want doesn't always match up with can. If Rochester turns into Detroit, are you staying there because of your house? There is no way in HELL I am going to keep my student loan for 20 years for get that crap. 300 is very reasonable. My wife is still going to be working for the same company just it is really hard to start full time here and she needed a job, once she is there 6 months which will be next month she can start applying for full time work. I don't plan on a costly home, 100-150k works wonders up here. I just want a place of my own. As much as renting is a benefit in disguise, it blows. Cons: for renting: I can't paint, I can't have a 5.1 system, I have to tip toe around, I have to keep the volume down on the tv, I can't have parties, I don't have a covered car spot, I can't expand, the place is small, I have to hear my neighbors do all the stuff I don't do because I want to be respectful to them, I am at the liberty of what they want to charge for rent, will have to move if they raise it high (this happens more than you think). Pros: Something breaks not my problem, I can save a wee bit of money, I can drop out when I want (this isn't true since I signed a lease that says if I move out before the lease it up I can be hit for the remainder of the rent), I don't have to mow the lawn (which I like doing)
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Jan 30, 2011 22:05
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Dbhjed posted:I plan on being here until I die. I don't want to move again. I would like to be in the house I buy until I die as well. and Yes apartments up here do cost 1000 because of the property tax, it is the highest in the USA. Again isn't property tax covered in your mortgage until it is paid off?
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Jan 30, 2011 22:05
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