Post # 1
Seriously! Half our income goes to rent each month, and between stuff like food, gas and electric, water, cable….I might as well just kiss all my money goodbye. We want to buy a house but I have no idea how to manage it!!
Post # 3
Oh, Miss Burgundy, I feel your pain! I have no idea how people do it these days! I don’t pay rent and I can’t even fathom it!
Post # 5
I know you’re mostly frustrated, but I feel your pain. We’re really lucky. The husband and I are looking for a house, and most of our down payment is going to come from my parents–some as a gift, some the remnants of a savings account they set up for me. We’ve been saving pretty aggressively (although that money is mostly for the hubs’ tuition) thanks to direct deposit sucking it away before we can think about it.
Do you have a monthly budget set up? Tracking our spending really aggressively helped us cut back a bit more.
Post # 6
I totally feel your pain… we never thought we’d be able to buy a house with everything else going on (apartment rent/other bills), but since we were first time home buyers, we qualified for a loan that required no down payment. That was several years ago though…. not sure if they’re still doing that b/c of the whole mortgage fiasco.
Hang in there! 🙂
Post # 7
Honestly, the only reason we were able to buy our house this year was because it was a foreclosure. We probably wouldn’t have been able to buy a house for years to come, but our house was on the market as a foreclosure, and we only paid half of what it’s currently worth. Our mortgage is even less than rent was at our townhouse!
There’s some good programs out there for first-time homebuyers you can look into (tax credits and such). Also, if you can get approved for an FHA loan, you only have to have 3.5% for a downpayment instead of 20%. Plus, if the seller is desperate enough, they might even pay some or all closings costs, which can really cut down on the upfront money buyers need.
I would say if half of your total monthly income is going to rent, though, that’s pretty high. Could you look at lower cost rentals for a while, maybe a year or so? That way, you’d be able to sock away all the money you’re saving on rent for a new home!
Post # 8
haha ummmm they don’t live in CA? 🙂
Seriously though– it is hard but its a LOT easier depending on location. We’re looking at buying a house in the next few months but we live in Columbus, Ohio where we can get a really nice house (probably 4 bed 2-3 bath) in a nice suburb for 200-250K. I’m sure our salaries here are lower than they would be bigger cities but not THAT much lower.
Post # 9
Well, I moved towards more affordable housing for one…where I was living before a starter home in the area would have still been in the $400k range with property taxes close to $10k a year. But, the other thing that was REALLY helpful is we put a really good sized down payment on our house and were able to eliminate PMI payments in addition. IF you can do this, I highly suggest it. Paying PMI is like throwing money away each month…so it’s great if you can wait it out and save more and more $. Having a good nestegg saved up for AFTER the home purchase is important too. We easily spent a few thousand the first month on random misc. things…lawnmovers, rakes, shovels, patio furniture, garbage cans, extension cords, leave blowers, paint, paint brushes, cleaning supplies, blinds, etc….all misc. stuff that you don’t think about but you need right away and it adds up QUICK!!!!
Is there another more affordable rent option for you? It will be super hard to save if over 1/2 your income is going to rent. And, seriously consider moving if you can still find work and be happy somewhere else.
Post # 10
eek! I wish more people were buying. I am trying to sell and it is depressing. I would recommend buying because you will get a great deal right now. Also, you can qualify for a first time homebuyers tax credit of $8000! that will help you with your downpayment. Some people get creative and have the seller provide their downpayment. It may up the purchase price of the property, but it will provide you with a downpayment.
Post # 11
I feel you. Half my income is rent as well, and that’s not including utilities, groceries, cell bill, etc. The bank called me up to ask if I wanted to open a savings account and I actually laughed. I know it was her job, but the thought of someone staring at my account balance and then inquiring if I wanted to open a savings account was hilarious.
Post # 12
It really depends on where you live (rent) and where you want to buy a house. I think San diego can be pretty pricy.
Right now, I feel your pain. A sizable chunk of what I bring home goes to rent. If I buy a house where I live (just a modest small house, 2 or 3 bedroom), I’ll need to pay even a bigger amt in mortgage (provided 20% down payment magically materializes). If we move out of the bay area and live in some suburbs of TX, we can probably buy a huge house outright with cash…lol BUT, we probably cannot find a good job there. It’s catch-22.
Oh well, gotta save save save…
Post # 13
I feel you on the CA issue – we’re in NJ and houses are ridiculously overpriced everywhere near NYC (where we work). I’m planning on renting for a while.
Post # 14
Oh, you could also look into rent-to-own options! My husband and I were talking with a friend earlier this year who couldn’t sell her home; she decided to start advertising a rent-to-own option and started immediately getting interest.
Basically, a part of your rent every month goes toward the downpayment on the home. After a year or two, you’ll have enough saved up to actually buy the home. Plus, you get the added benefit of having lived there for a little while and being able to really try it out. I think it’s definitely making a comeback in this economy.
Post # 15
My fiance and I wanted to buy an apartment when we moved in together several months ago (when prices were even lower!) and an 800 sq ft tiny little place in the area of San Francisco that we wanted to live in was over $500,000!! We don’t even live in the “rich” part of the city, either. We were pretty bummed, but are sticking to renting (which still costs an arm and a leg here)
Post # 16
even harder trying to sell!! uggggh. We each have a condo and there is no way we can sell them in the next year. It sucks too.