Post # 1
I need some advice. I’m at a cross-road with three options….but first let me start off with a little background info on me and Boyfriend or Best Friend. We have been together for over a year, we plan on getting engaged by May…(probably before then by the way he’s acting) and we want to get married next year in the fall. Currently I live with my grandparents, I moved in to keep them company and they are so great! Boyfriend or Best Friend lives at home for the first time since graduating high school, (former college athlete). We both work full time and go to school in the evenings. We are currently looking at houses and apartments and want to do something soon. I really don’t want this $8000 tax credit get away but I also don’t know if it’s worth it. The apartment we would be living in would be about $700 with utilities and everything and a house would be a little more. I am all for the house even though it may be a stretch at times. I currently live 30 mins away from work so an apartment or house in the city would help out a ton! What would you do? Please tell me your experiences in apartments and houses….first time home owners that used this $8000 tax break would be great!
Post # 3
we are buying our first house. I am super excited! Its a great time to buy because the economy is still down, so house prices are low, and should raise in the near future (making a good investment for you!) The pros to a house are that you own it (duh!) and can do what you want. Paint, landscape, etc. Also, you aren’t “throwing” your money away. You are paying on something that you can sell and make a profit. As for renting, you will never see that money again. But, with renting, if something goes wrong, you just call your landlord! I think if you can though, financially, I would look into buying! 🙂
Post # 4
If I were you I wouldn’t jump on buying a house just because of the 8,000.00 credit. I don’t want to get in your business but you are not even engaged yet and you have been together for only a year. Anyway just rent for now, or if you REALLY are set on buying go on, it is a good time to, you can ask for anything you want (extras) and you will probably end up getting it. Good Luck!
Post # 5
I wouldn’t get a house just because of the credit either. You need to make sure that you have money saved up for a downpayment, and for unexpected expenses. Houses cost more to maintain then an apartment because you have insurance, taxes, higher utilities, and of course maintenance. I wouldn’t go into a house if you aren’t sure how long you are going to be staying. Just because the market is down right now doesn’t mean that they are going to shoot up in the future. Honestly, the rate of increase of value of homes usually only keeps pace with inflation, which right now is 0%. So homes aren’t really great as investments, plus if you sell the house you still need to have a place to live so it isn’t like a regular investment where you can pocket the money. Overall, a house is a place to live, not an investment. If you can afford to buy a house, then go for it but if not, that’s okay too.
I think that since this is your first place together, you should really consider renting until you have been together longer (I am not saying there is anything wrong or that you are going to breakup and I’m not looking down on your relationship, just being safe).
Post # 6
- Wedding: June 2010 - Indiana Memorial Union
Home owning isn’t profitable until you decide to sell, so I don’t really think it’s healthy to think of the place as you live, day to day, as an investment.
Just decide if you can really afford property taxes and maintenance, including surprise problems like roof leaks and plumbing catastrophes. We’re not ready to buy because we’re not sure we want to live in this area. I like the freedom of renting and not having to pay for maintenance, for now.
Post # 7
i was paying for an apartment 50 dollars less than what i pay for my house now… i bought a house last year in april and i dont regret it at all… we bought the house really cheap and after with did some cosmetic fixing the value came up… i know an apartment sounds cheaper but you are paying for somebody else… a house you are paying it for your self
Post # 8
@Mimi29: Thank you so much for your advice! I know that because we aren’t engaged or married that people think we’re crazy and so do I sometimes. I honestly think we will get an apartment first and maybe next year get the house thing rolling. I just hate to miss out on a deal but the house that we’ve been watching has already dropped its price by $5,000 in the last month and with the market still not shaping up I’m sure the price will drop again. Meanwhile we can save up more money for a down payment.
@MissAsB: thank you for your level headed advice too! I need someone to tell me to slow down sometimes! Haha! I completely agree about the cost being higher with a house because of all of the extra little cost…insurance, property tax, homeowner’s fees, etc.
Post # 9
And I really agree with making sure you are going to be living there for a while! We had to leave our house and rent it because the market is horrible and we can’t sell it!
Post # 10
I probably wouldn’t buy a house yet, especially if you’ve never lived away from home and paid your own bills (you didn’t say whether you had yet). Also, unless you know 100% that you want to live where you are for at least the next 5 years, and are truly ready for all of the hidden/unexpected expenses of owning your own home, it would probably just be better to wait a while until you get more settled.
Post # 11
@ribbons: We are pretty sure that we are going to stay in this area for the next few years but we may relocate depending on where the next branch of his and his dad’s business moves to.
@Magenta: in our area a One or Two bedroom apartment is between $600-$900 a month and a house payment with all the taxes and utilities and everything would be about the same. I hate paying for an apartment when I know I will never see that money again. I had an apartment for a year and it cost me $1000! That’s $12,000 I will never see again and that makes me sick!
Post # 12
Do you have money for the down payment?
After the down payment, do you have about $5k in the bank for repairs and such?
How are you paying for your wedding? you and your future Fiance or parents?
I would go for the apartment for at least a year and see how that goes. Moving in together has its own set of challenges. Who is going to be in charge of paying the bills?
A house is a big investment and I would rather test it out in an apartment first.
The tax break is nice but only if you are able to afford the house and also the responsibilities that go along with owning a home.
If you are in an apartment, and the stove needs to be replaced, you don’t have to pay for the new stove, the landlord does. Now in a home, you would have to pay for the new stove.
Not to mention, homeowner association fees, insurance, taxes, plus closing costs.
Post # 13
Perhaps a better way to look at the credit is like this:
If you bought an $80k house the $8k first time homebuyer credit would be 10% of the purchase price, right? But if you count in closing costs (please don’t forget about those in your upfront costs) and interest (at 5%) you are really paying about double or $160k for the home. That 8k is now 5% of what you will really pay just for the house.
Would you buy a pair of expensive shoes just because you are getting 5% off?
Post # 14
There are sooo many things to consider when buying a house. Darling Husband and I have been debating this since August, and we just now made the decision to move forward with building a home in one of those cookie-cutter suburban neighborhoods. We’ve both lived in apartments for years, and we feel it is the right time for us to take the step. We figured out we can get a house that is 2.5 times bigger than our apartment for just a little bit more than what we pay each month. Plus we are tired of dealing with our upstairs neighbors who magically turn into elephants at night.
The town we are building in is considered rural, and there is a special type of mortgage that does not require a down payment. The mortgage is simply a way to help stimulate growth in this rural area. Honestly, I find it amusing that the area is considered rural – our commute into Houston will average between 30 and 45 minutes, which is the average anywhere in the Houston area.
Just be sure you think about every single factor before you committ. We went over our budget hundreds of times before we signed on the dotted line. We asked our parents and friends for advice, and did alot of research before we committed to our house. Am I still scared to death? Yes, but I think together we will be just fine.
Post # 15
@Sarah71710: You CLEARLY speak my language…I read your post question “Would you buy a pair of expensive shoes just because you are getting 5% off?” and said in a little five year old defeated at the pet store voice, “No.” Thank you greatly for your shopper savvy point of view!
Post # 16
@Piccateer: When I had my apartment a few years ago I swear my upstairs neighbors were dinosaurs! How could they make that much noise??? I was like Mr. Heckles with my broom banging on the ceiling to make them stop running all over the place.