Buying a House in 2 yrs - Realistic Numbers?

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I have been pretty aggressively paying off that student loan debt. It's down to about $20K or a bit more than that right now. The mortgage, taxes, insurance on this will be less , per month, than I am paying in rent. 20 year mortgage, not 30. Obviously there will be repairs that need to take place and those will cost. Utility bills will be a bit higher.

Ultimately, what it comes down to, is I just cannot engage in my hobbies while living in an apartment any more. I can't fix my Jeep or do upgrades in the parking lot, I have to store my camper at a friend's house. Makes it inconvenient.

I'm not going to give up my hobbies for the next 10 years while I save for a house.

Also, the neighborhood where I am living now is getting worse and worse. IF I move elsewhere it's just going to be more expensive to rent. There's usually 1 or 2 shootings per year in the complex where I live!

Kero heater will be for the drafty old garage for winter projects. Once things start moving along with the bank, I am going to be picking up a used snowblower and storing that at my parents while I wait. Supposed to be a bad winter this year ... don't want to be shoveling that driveway by hand.
 
I wish you the best of luck with the new home. I completely understand having a place to work on your cars and partake in hobbies during your free time. You only live once.

One big recommendation for you, if you don't do this already: Do a zero based budget every month, and reconcile it.
 
Originally Posted By: Miller88
20 year mortgage, not 30.


Did you check out a the rate on a 15 year vs. the 20 and 30? Sometimes the rate savings is not there with a 20 but is with a 15.
 
That's pretty short money compared to the prices in this area, most people start off in the 200-300k range and when they have money, they're in the 500-800k range.

At 57k, after you down payment, you could almost float the whole thing on a couple of 0% balance transfer credit cards, assuming that you can pay it all off in a couple years. For that small of a loan, I bet the fees are pretty high. What's your monthly payment with a 20 year mortgage? Must be around $350 a month. If you're more aggressive, pay almost $1000 a month and it could be paid off in 5 years.
 
Fix it enough to rent it. Sounds like a great rental if your interest changes latter in life.

I bought an inexpensive first home too and it turned into 2.5x purchase price in 6 years. All because I was dazzled by a 24 year old beautiful real estate agent I met and she got her first sale from me.
 
Originally Posted By: madRiver
Fix it enough to rent it. Sounds like a great rental if your interest changes latter in life.

I bought an inexpensive first home too and it turned into 2.5x purchase price in 6 years. All because I was dazzled by a 24 year old beautiful real estate agent I met and she got her first sale from me.


That is an option for sure.

Something that may be beneficial or not to me is there's a few other houses undergoing renovation in the area. The one next to it sold for $37K and is being renovated. The one across the street was around $40K and is almost done being renovated. Seems that someone is trying to make the neibhorhood nicer. Either for renting out or for flipping.

I'd rather rent than flip
 
Originally Posted By: Miller88
Originally Posted By: madRiver
Fix it enough to rent it. Sounds like a great rental if your interest changes latter in life.

I bought an inexpensive first home too and it turned into 2.5x purchase price in 6 years. All because I was dazzled by a 24 year old beautiful real estate agent I met and she got her first sale from me.


That is an option for sure.

Something that may be beneficial or not to me is there's a few other houses undergoing renovation in the area. The one next to it sold for $37K and is being renovated. The one across the street was around $40K and is almost done being renovated. Seems that someone is trying to make the neibhorhood nicer. Either for renting out or for flipping.

I'd rather rent than flip


Being a landlord is not easy, and is often a full time job unless you hire a property management company. Between screening prospective tenants, getting the place clean and ready to rent, actually renting (and assuming the tenants pay you on time), and the wear/tear/damage that will result from another person living in your house, it's a lot to consider. Don't get in over your head with this.

Also, where in NY are houses selling for the cost of the average new car? Are taxes that cheap, too?

This is one of the biggest financial and emotional decisions you're going to make in your life, and I feel like you're treating this like buying a used car. Seriously think the whole thing through and seek the advice of your elders and people who have done this before, otherwise you're just going to get into an even bigger mess than you're already in.
 
Originally Posted By: oilpsi2high
Being a landlord is not easy, and is often a full time job unless you hire a property management company. Between screening prospective tenants, getting the place clean and ready to rent, actually renting (and assuming the tenants pay you on time), and the wear/tear/damage that will result from another person living in your house, it's a lot to consider. Don't get in over your head with this.


I have 10+ units and a lot of people seem to think this, but it's not true. I can go for a week or more and not hear from any of my tenants.
 
I can't believe how cheap houses are there. House prices have exploded here in the past couple years. My grandparents house isn't anything fancy, could sell for at least $300k

My aunt bought her house for $139k, nice house but nothing fancy. Neighbor sold theirs a couple weeks ago for $240k in 1 day. They were asking $225k.

$1,000 a month isn't much for a mortgage these days, you could pay that house off in 5 years
 
Originally Posted By: Nick1994
I can't believe how cheap houses are there. House prices have exploded here in the past couple years. My grandparents house isn't anything fancy, could sell for at least $300k

My aunt bought her house for $139k, nice house but nothing fancy. Neighbor sold theirs a couple weeks ago for $240k in 1 day. They were asking $225k.

$1,000 a month isn't much for a mortgage these days, you could pay that house off in 5 years
Forgot to mention she bought her house for $139k in 2003
 
Makes zero sense to rent if you have a good job and ok credit.

I bought a couple duplex's in Buffalo NY about 10 years ago, for under $40k.

Rented both out for $500-$525 per month for 7-8 years, then sold both for $65k.

Bought a house down here in Texas (single family, small house) for $125k.

Property just assessed at $170k a few years later. We are going to refinance it and have a payment under $800 per month.

You can rent a closet around here for $1100 per month, but not much more. My friends who rent deal with increasing rent costs, more rules, and more nonsense every year.
 
I'm renting for not much more than just the property taxes on my old house. And it is wonderful...no constant work maintaining the place, no yard work all the time, no giant bills for repairs (like a new furnace), no snow shoveling...wow, I didn't realize how much WORK a house was until I stopped doing it.
 
Originally Posted By: Jarlaxle
I'm renting for not much more than just the property taxes on my old house. And it is wonderful...no constant work maintaining the place, no yard work all the time, no giant bills for repairs (like a new furnace), no snow shoveling...wow, I didn't realize how much WORK a house was until I stopped doing it.


Makes sense in the high dollar tax areas, my buddy on Long Island sold his house and said the same thing.
 
Stop depressing me.

We looked at a house last weekend, going for $699k, 1254 sq ft ALL original from 1959 pretty much. Figure it needs $80k.

Renting a 1BR apt still
laugh.gif
(under-market at $1245/mo)
banana2.gif


but I am about to leave and go surf
 
Originally Posted By: Jarlaxle
I'm renting for not much more than just the property taxes on my old house. And it is wonderful...no constant work maintaining the place, no yard work all the time, no giant bills for repairs (like a new furnace), no snow shoveling...wow, I didn't realize how much WORK a house was until I stopped doing it.


Pretty much verbatim what people who either can't afford a home, don't have credit good enough for a home, or are too lazy to actually do the work involved in owning a home. At the end of 15 or 20 years, at least you'll have that pile of rent receipts to keep you happy.
 
And in not owning, you have the optionality of moving house NOW to take advantage of that huge job opportunity that landed in your lap but requires you to move town/state/country.

Home owners are shackled to their "investment", and therefore less likely to take advantage of remote opportunity.
 
Originally Posted By: Pop_Rivit
Originally Posted By: Jarlaxle
I'm renting for not much more than just the property taxes on my old house. And it is wonderful...no constant work maintaining the place, no yard work all the time, no giant bills for repairs (like a new furnace), no snow shoveling...wow, I didn't realize how much WORK a house was until I stopped doing it.


Pretty much verbatim what people who either can't afford a home, don't have credit good enough for a home, or are too lazy to actually do the work involved in owning a home. At the end of 15 or 20 years, at least you'll have that pile of rent receipts to keep you happy.


So...did you not read the post you quoted or did you just ignore it?
 
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