Being single, young, and buying a house

Tanach · #1 08-17-2005, 01:33 PM

So, I'll be starting work soon out of college and I don't really want to throw money out on rent. Bottom line, I'm thinking about buying a house.

I'll be making a little over 50k from salary, and I've made and avg of 2k/mo over the last year from that game that some of you play (although I don't really want to count much on that when taking into account a 15-30 yr mortgage)

and I'm looking in the 250 price range and plan to put down 25k. I have a newish car, so I won't have car payments. Also it's actually probably going to be a condo.

I guess I'm wondering has anyone else here done this and does it seem like a good idea?

(Yes, I feel OOT is the best place to go for this type of advice.)

~Jack

jakethebake · #2 08-17-2005, 01:38 PM

Where will you be living? And condos in general are crappy investments. Yes, they've been good in a few places in recent years, but longer-term they've been crappy. Even if we see a soft landing for the real estate market, I predict the condo market in several places will see a severe correction.

morgan180 · #3 08-17-2005, 01:39 PM

excellent idea. just don't get a 30 year fixed. get a 7/1 or 5/1 ARM (interest only is a good option too) it will get you a better rate and you'll probably move before it goes adjustable. it will open up more cash for you instead of paying down a 30 year mortgage for a property you'll barely remember in 30 years.

morgan180 · #4 08-17-2005, 01:40 PM

[ QUOTE ]
Where will you be living? And condos in general are crappy investments. Yes, they've been good in a few places in recent years, but longer-term they've been crappy. Even if we see a soft landing for the real estate market, I predict the condo market in several places will see a severe correction.

[/ QUOTE ]

yes the market you'll be living in is a huge factor.

2planka · #5 08-17-2005, 01:41 PM

I would caution against buying right away. Have fun. Blow your money on silly stuff for a few years, or save as you go. No reason to saddle yourself with a mortgage until you're (a) financially capable, (b) confortable with where you are in terms of location and lifestyle, (c) over the college thing.

Don't get me wrong, saving for and buying property is a very good thing. I just don't think you should rush into it. Enjoy yourself. Be irresponsible while you still can.

jakethebake · #6 08-17-2005, 01:43 PM

What's that new avatar, kilgore?

OtisTheMarsupial · #7 08-17-2005, 01:46 PM

I bought a condo almost a year ago and then fell in love. The condo is too small for the both of us, besides, IMHO, it's best to start a relationship on equal footing. So, I'm selling and we're buying a new place together.

Moral of the story, try to imagine what could happen in the future that might affect this large decision and then work it into your plans.

What I did: I made a deal with my realtor that if I wanted to sell within a year (if I regreted my decision to buy or for some reason needed more space...) she would buy it back from me at the price I paid less costs (costs added up to what I would have paid in rent). So, if I can't find a good buyer, I can at least sell back to my original realtor without losing anything.

Just something to consider. Good luck [img]/images/graemlins/smile.gif[/img]

djoyce003 · #8 08-17-2005, 01:46 PM

you are looking at a 2200 mortgage payment including insurance and taxes, plus condo fees. Your salary of 50k is only 4k per month before taxes. You are going to be dead ass broke dude. Your poker income will make this moderately affordable but I'm not sure i'd want to saddle myself with this. If that poker money dries up or you hit a bad streak, you are in a mess I think. My wife and I collectively make around quadruple what you do and I wouldn't want that payment.

2planka · #9 08-17-2005, 01:46 PM

It's Kurt V.

Thanks for noticing, Pops.

Tanach · #10 08-17-2005, 01:47 PM

[ QUOTE ]
Where will you be living? And condos in general are crappy investments. Yes, they've been good in a few places in recent years, but longer-term they've been crappy. Even if we see a soft landing for the real estate market, I predict the condo market in several places will see a severe correction.

[/ QUOTE ]

It's actually a townhouse not a condo, I'm just retarted.

Also the area it's in is downtown of a city that is sort of being revived. It's going to be a nicer area in the comming years.

Thanks for the advice guys, keep it comming.

~jack