Post # 1
I’m just curious. SO seems to want to buy a house without having rented an apartment (we both live at home still. That should change soon though 🙂 ) So I wanted to get some bee thoughts on buying a house without having rented an apt.
Post # 3
I would buy a house without renting, but not without living together first.
Post # 4
Also, personally, I would not purchase a home without having the full 20% down payment, steady jobs, 6 months emergency fund and some additional funds for repairs, etc. Without a full downpayment, you end up paying pre-mortgage insurance (which adds up) and if you do not have a safety net, how will you fix a broken furnance? repair a damage roof?
Those are the reasons why we are renting first before buying. We could afford a house right now and have 15% of a downpayment, but we are waiting till we get to the golden 20%. Also, we are considering moving to a new city, so unless you are going to stay somewhere for at least 5 years, I would recommend renting first.
Are you two living with your parents because you cannot afford to live on your own currently? Do you have a good chunk of money saved up?
Also, my FI and I have been together for 9 1/2 years and we are getting married next August, we live together now. I am fine signing a lease before marriage, but personally, I would not sign a mortgage with someone I am not married (or at least engaged) to because it could get really complicated if it doesn’t work out (just my decision).
Post # 5
oh, no. I think it’s really important to have lived a few places first so that you can get a feel for layouts, what works for you, what your habits are, etc. Noise separation is big for us, since we have really different sleeping schedules, for example. We’re in a 3 story townhouse where his office is on the 1st floor and the bedrooms are on the 3rd for that reason. Unless you live someplace where homes are super cheap ($200,000 and under) thus making it not that expensive to move/change houses….I’d wait and see what the dynamics and needs are before choosing a home to purchase.
Post # 6
i wouldn’t buy a house before 1) living together, and 2) renting. it’s completely different to live on your own than it is to live at home. and then the added stress of actually being responsible for a full house is kind of daunting. renting gives you that taste of having to take care of a house/apartment, but you still kind of have the landlord to take care of big things. i think that renting is a necessary step. i also think you should live together before you buy a house together.
Post # 7
@crayfish: + 1 on the living style and preferences. Just wanted to say I think its interesting you call $200,000 or less super cheap!!
My guess is you are comparing it to the California/Bay area market (my parent’s live there, so I know how crazy, expensive it is), but wehre I live $200,000 will buy a lot of home and is on the higher end. You could get 4 bedrooms, 3 bath, 2000+ sq ft, a yard, etc.
Around here, $90,000-$100,000 would be super cheap and it wouldn’t necessarily be a HUD/REPO or fixer upper.
OP, depending on your housing market out east, price would definitely be something to consider!!
Sorry, just had to comment 🙂
Post # 8
I am currently renting a 1 bedroom tiny little apartment for $594 in an “okay” part of town. My FI and I are looking for houses (he lives at home) and we can get a mortgage, home owners insurance and taxes for less than that a month in a nicer part of town. Right now I feel like I am throwing money away each month, I absolutely hate renting. The money just dissapears and after my lease is up in march I will have nothing to show for the $8910 I’ve spent in the last 15 months other than I’ve had a place to sleep. At least if you buy a house you are paying something off and you can do what you want and not be stuck in a dinky apartment with neighbors waking you up at all hours. Even if you rent a house, you are just paying the owner’s mortgage plus some. I personally feel like people should only rent if thats their only option. Buying a house make wayyyyy more sense financially. Assuming you are willing to start with a small “starter” home that isnt going to put you up to your eyeballs in debt. Our max that we are willing to spend for a 3bd 2.5bath in our area is $85k. We are looking at foreclosure homes obviously but we dont mind a fixer-upper. 🙂
Post # 9
I would, and we did. I like this way better. I don’t feel like I’m ‘throwing away’ money on something that will have no outcome.
Post # 10
We did, although we practically lived together with my mum for a while and then house-sat for my dad’s side of the family for three months before we actually moved in.
We did have over a 25% deposit and we were both set on buying before we met.
Post # 11
@LLRininger: In many ways I do feel like you are throwing away money when you rent, but the reality is that many homeownership repairs can be costly. Our water heater and fridge broke last year and they would have been about $3000 to replace. We didn’t pay a dime of it. Also, our annual fire place cleaning, furnance maintanence and water bill (which luckily we do not have to pay) would come up to another $1200, and we do not have to pay it.
Lastly, it looks like you live in a very affordable home ownership area. Your max budget wouldn’t buy that much of a house here. That would honestly wouldn’t even buy a townhome! And I live in a fairly affordable area.
So I see why it made sense for you two to buy now. Unfortunatley, we do not even have apartments with rent lower than $650 a month (at least in the nice parts of town). Many smaller homes around here start at around $120,000/$130,000 for a 2bd, 3bath. The average is closer to $185,000-$200,000.
Post # 12
If you’ve only ever lived with your parents then I don’t beleive you know enough about what kind of house you’d like. You might think you want a certain type of house however you don’t truly know. I reccommend getting some more life experience before commiting to a 30 year morgage.
Post # 13
@bmo88: This is very true. Things like real estate tax, water bills, sewer, gas, electric, mortgage interest, new furniture, cleaning supplies, furnace filters, lawn mowing maintenance, curtains, etc all add up. Plus the time to clean and maintain a house, or pay someone to do it gets expensive.
@Azalea_Bee: +1. I think you can get an idea of what you don’t like (carpet, ranch homes, etc) but its hard to get an idea of how you would use the space if it was all yours. It would be better to rent a house first, and get a feel for what you like or don’t like before being committed.
At the end of the day, I don’t think homeownership is about finances, or investments. It is a lifestyle choice.
Post # 14
I bought my first house at 25 before I even met FI. I moved from my parents’ house to that house. FI had done the same thing around the same age. So, when we met, we both has houses of our own and neither of us had ever rented.
When we got married, we sold my house and I moved into his. We used the profits of the house to pay for the wedding and then banked the rest of the money until we figure out what to do with it.
Honestly, when I met FI at 28, I probably wouldn’t have been too interested if he didn’t already own a house. In my circle of friends, that’s just what you’re expected to do – Graduate college, save some money, buy a house.
Post # 15
Agree about home preferences. Also, when you live in an apartment you get many of the benifits of homeownership with virtually none of the downsides. You don’t have to make repairs, mow the grass, or do any upkeep. I think it is a nice transition phase into owning a home.
Post # 16
Oops! I forgot to mention in my above post, buying a home is actually smarter than renting in the area I live, so that was one major factor in our decision (it’s around 250-300 USD less for monthly mortgage than for rent, and we don’t have PMI).