Post # 1
My SO & I are renting an apartment now. I’ve calculated the cost of an average mortgage for our area and it’s actually a few hundred dollars less than our monthly rent. I know we’re not ready to buy a house yet, we don’t know where we want to end up & there’s no where we could imagine staying for 5 years or more right now but I’m hoping within the next 5 years we will be ready to purchase. I am really tired of renting because I feel like it’s such a waste of money!
I wanted to ask you all how you decided financially and emotionally that you were ready to buy? Was it because you were married, wanted to live together, wanted kids, something else? How did you know that you wanted to stay in that area for a long time? I’ve moved 7 times in the last 6 years since I graduated HS & started college & I’ve developed a complex where no where feels permanent. I’m always waiting for the next move (even now in our WONDERFUL apartment I am constantly looking at houses for us to maybe start renting next year even though I truly adore our apartment, I’d actually ideally take it with us to another city lol)
I also am not in my career yet, I’m graduating from college in December. Do you think this could be a reason for my feeling this way? Since I’m not in a steady career yet, I don’t feel secure job wise so the idea of putting most of our savings down on a non liquid asset scares the crap out of me lol
Finally, did you drain your savings for your down payment (outside of your emergency fund)? I love saving money and I don’t like spending it so the thought of losing a huge chunk of our savings isn’t something I like…
Post # 3
I bought my first house in 2003 (back when I was single.) I (like you) got sick and tired of throwing my money away on rent every month.
It’s a personal and big financial decision, really. If you CAN scrape up the down payment money, then I say go for it….go meet with a mortgage consultant soon and see if you’re in a posiiton to purchase right now.
There’s a lot of different programs out there for first time buyers and down payment assistance if you qualify too….you just gotta go out there and see what’s available.
Post # 4
@JaneyDcat: how long did you stay in the house? did you know you wanted to live in that area for a while? my biggest fear is buying & then 3 years later wanting to follow a job opportunity or something to another state but being stuck because of the house. Like, what if the house doesn’t sell? Do any houses NEVER sell?
Post # 5
@soontobemrsm11: Yeah….since college, I’ve always lived in the Minneapolis metro area.
I’ve never wanted to move somewhere else…..
You should always consider saleability of your home before you even purchase it, but nobody has a crystal ball. I bought my townhouse for $140k in 2003 then sold it in 2006 for $162k.
Today, since the housing bubble burst, that townhouse is worth about $75k.
Do you have a trusted friend or family member who is a realtor? Or a friend who can recommend someone? A good realtor can advise you on the best investment for your money….townhouses and condos are EASY choices for first-time home buyers, but they are often pretty hard to sell, but then it depends on the market you’re in too.
Post # 6
I bought my house when I made enough to pay the mortgage. I wish I had waited a few more years. I drained the savings account for the downpayment, and when things started hitting the fan (basement flooding from three sides and needed to add sump pump, and get estimate for redoing three basement walls), the emergency fund dried up too. I wish I had waited to have double what I put down for my downpayment it would have made things a LOT less stressful.
Post # 7
@JaneyDcat: For our jobs, Fiance and I have had to list every place we have dwelled since age 18. That includes every dorm room, every group house, and every appartment (14 for me, 8 for him). We also get the opportunity to explain why we left each of those dwellings. After both of us went through the process this summer, we declared we are only moving one more time in our lifetime.
We know we will be in our city forever– Fiance has never left the area and this is where I always wanted to be. We have good, secure jobs and love the people.
We wanted to save up for at least 20% of the downpayment and for us to be married before we bought. I refuse to start TTC in our apartment (we didn’t babyproof when we moved in and it isn’t safe for a kid) and so our plan is to wait to buy until we find something we like in an area we like.
Post # 8
We were tired of throwing money away, Fiance has a pretty stable job, and the city we live has a ton of opportunites in his field if something was to happen. The company he works for would also help us sell the house and relocate if it came down to it. I’m graduating in May with my bachelor’s but I’m an Photography major with an Art History minor so I can have a job almost anywhere.
We were tired of there not being any parking, and our air conditioning going out in the middle of Alabama summer and them not actually fixing it, not handling the wasps nest on our patio, having enough hot water to basically wash your hair.
We were just at a breaking point with the apartment complex and after talking about it, and to our parents we decided that for what we were paying in rent we could get a really nice house, in a nice neighborhood. So after that, we found an amazing realtor who really helped us through the whole process and answered our every question and even told us stuff we didn’t know. We closed on our brand spankin’ new home on February 15th, and I could not be any happier!
Just for reference we were paying $825/month for a 2 bed/1 bath 1100sq ft apartment (that was with a $45/month discount) now our mortgage is about $870/month for a brand new 3 bed/2bath almost 1700sqft house not including the pretty large 2 car garage (a little over 400sqft) and good size back yard.
Post # 9
- Wedding: September 2011 - Baby boy 12/2015
We are hoping to close soon! How did we decided it was that time to buy a house. There were several reasons:
1. We were ready financially – could pay a mortgage
2. We were tired of renting
3. We expect to stay in the city for a while
4. We want to have a house before we have kids
5. Interests and house prices are lower than they were before
6. Our apartment is too small and I rather invest the money in a house than paying rent for a bigger apartment
7. We want to be able to host family
8. It is one of my dreams!
Wow that was a long list.
Post # 10
We are in the process of buying our first home now. We could never leave the area and our parents have offered to help pay when we suggested moving 10 mins away lol so we for sure know we’re not leaving. I graduate next May and am just going to pray I get a job in the area bc I wouldn’t move for a job. Since we live in a rural area we qualify for loans with 0% downpayment so won’t be using any savings that saved several thousand for. Neither of us have full time “careers” as I’m in school and he works at the family farm 40+ hours a week and is a full time student. We never considered renting bc we also felt it was a waste of money. But if you don’t plan on staying long renting may be the way to go with the current housing market.
Post # 11
I’ve never rented. I moved straight from my parents house to my house with my then fiance. We just knew we wanted a home. Rent is expensive here, homes are just as expensive, but we wanted our own space and walls and garage parking. We also knew we wanted more space for future kids. We didn’t come anywhere near close to draining our savings. I like to have a huge emergency fund and accessible cash so we just put down enough to make the payments reasonable but keep a comfortable amount of cash.
Post # 12
@Pollywog: did you change your address on your DL every time you moved? How would your job know if you lived somewhere and didn’t list it to them? I honestly can’t even REMEMBER all of the addresses of the places I’ve lived and I’ve kept my mom’s address (who lives about an hour and a half away) on my DL the whole time. I would hate having to list everywhere, I don’t know if I could haha
@candy11: It’s good to have a long list! lol
@tphotog: Do you ever worry about if something happened to him, would you be able to afford it on your own? I know that sounds morbid lol but if my SO got seriously injured where she wasn’t able to work, I wouldn’t be able to afford the mortgage on my own. I think I would feel more comfortable buying if I could afford it on my own if something were to happen to her or she wasn’t able to work for some horrendous reason (God forbid!)
@HisIrishPrincess: That’s kind of my mentality right now…I want us to double our savings. I would feel comfortable putting 20% down on a house if we still had equal that in our savings afterward. Were there any indications that something was wrong with the piping in the basement?
Post # 13
@soontobemrsm11: All of those things we took into consideration, we are not the type of people to just jump into a major decision, it took us 1 1/2 years to decide we wanted a house, it took us nearly 6 months to decide what TV wanted. The only way he would not be able to work was if he went blind, deaf, or died and we are working on getting life insurance policies incase something like that does happen. I actually have a really good job now, and I’m in line for a promotion, if I want it, once I get my degree. I may be young, but I’m not stupid.
Post # 14
My fiance and I bought a house about a year a half ago. The reason is mainly because putting money toward rent is a waste. We had been looking on and off for about a year, but the right house went on the market as a foreclosure, and we believed the market was probably at the lowest it would go. (The housing market in our area has been really bad the last couple years, worse than most places.) We don’t know that we will be here forever, but we are close to both our parents, and close to my school since Im still in graduate school, semi close to his work. The most important thing to us was that if we wanted to sell it tomorrow we would make money on the house, even if we put it on the market lower than the current market analysis value. We chose a good value house, that needed some TLC, did all the work ourselves and haven’t put a ton of money into the house. Buying a house is always the way to go in my opinion, but just don’t spend more than you can truely afford. I would even go much lower in price than you think you can afford, just to be sure.
Also, I am the same way about saving money, so I know spending a large chunk of savings is not something to look forward to. But I definitely see it as an investment.
Post # 15
@tphotog: that’s awesome! congrats on the promotion! I’m sure having a really good job helps a lot, I think that will probably be the biggest thing to help me decide to move ahead looking at buying. It would probably take us just as long as it did you, I do NOT make big decisions easily. I am in the “I’m young but not stupid” category as well. I have so many friends in debt or not concerned about saving and finances are a HUGE concern of mine, I need to feel secure.
Post # 16
@soontobemrsm11: It wasn’t the pipes it was coming in from outside under ground. There were a few things that came out after but nothing that I could sue over. The home inspection showed no proof of water damage, and for the first 10 mos it never flooded. I would reccomend talking to neighbors in the area when you do look. It turned out that most of my nieghbors had 2 or 3 sump pumps because when the houses were built the mix for the walls were off.