I'm crushed.
You'll probably need to tack on some for mortgage insurance unless you have 20% to put down. Gotta pay garbage too.
Monthly bills aside, the reality of buying a first house is all the $ spent after taking it over to make it your own. Paint, appliances, furniture, window coverings, security storm doors that can be deadbolted (smart idea and peace of mind from doorknockers and door kick-inners!) Then the landscaping and such but you might not get to that stuff for a while as you'll be busy making the inside your own. You can spend 10-20k in the first months after its yours in a heartbeat. Think of all the things a homeowner needs just to care for the property like tools, a lawnmower, if ya make a list its shocking all the stuff people have!
Sorry, I ramble!
When I bought my first house I chose one that was maybe half the $ that I was qualified for. If I would've took every penny they offered and bought more house, I would have been foreclosed on a year or two ago.
To me that is the bottom line. Thank of the creditor as no different than your ccard company trying to bump up your credit line all the time, its just more rope to hang yourself on. The best thing you could do is find a solid house in a good neighborhood that is on the cheap as it hasnt been remodeled since 1950 or somesuch. You'll be a handyman and ready for all the f'd up stuff that will happen by the time its how you want like your water heater going bad and spraying water all over the floor. There wont be a landlord to call to fix it ya know. If you happen to end up with a lil $ from your hobby regulary and you porbably will once you have your own place, you can use it to buy all the paint, lumber, tools and such to fix her up and then your directly increasing the value of your investment without having to document the $.
The smaller your mortgage payments, the better off you'll be over time in case of unexpected loss of job or whatever. You dont want to be house poor or end up like one of the fools that buys the mega house in a development with a long commute and to many rooms to care for. Lose that job after getting a monster mortgage and the slide from living fancy to bad credit and foreclosure will be much steeper and painful.
RM
Monthly bills aside, the reality of buying a first house is all the $ spent after taking it over to make it your own. Paint, appliances, furniture, window coverings, security storm doors that can be deadbolted (smart idea and peace of mind from doorknockers and door kick-inners!) Then the landscaping and such but you might not get to that stuff for a while as you'll be busy making the inside your own. You can spend 10-20k in the first months after its yours in a heartbeat. Think of all the things a homeowner needs just to care for the property like tools, a lawnmower, if ya make a list its shocking all the stuff people have!
Sorry, I ramble!
When I bought my first house I chose one that was maybe half the $ that I was qualified for. If I would've took every penny they offered and bought more house, I would have been foreclosed on a year or two ago.
To me that is the bottom line. Thank of the creditor as no different than your ccard company trying to bump up your credit line all the time, its just more rope to hang yourself on. The best thing you could do is find a solid house in a good neighborhood that is on the cheap as it hasnt been remodeled since 1950 or somesuch. You'll be a handyman and ready for all the f'd up stuff that will happen by the time its how you want like your water heater going bad and spraying water all over the floor. There wont be a landlord to call to fix it ya know. If you happen to end up with a lil $ from your hobby regulary and you porbably will once you have your own place, you can use it to buy all the paint, lumber, tools and such to fix her up and then your directly increasing the value of your investment without having to document the $.
The smaller your mortgage payments, the better off you'll be over time in case of unexpected loss of job or whatever. You dont want to be house poor or end up like one of the fools that buys the mega house in a development with a long commute and to many rooms to care for. Lose that job after getting a monster mortgage and the slide from living fancy to bad credit and foreclosure will be much steeper and painful.
RM
Yeah man, you'll dig it! But to be honest, the upkeep and chores that come with it get old really fast. Its a love hate relationship. SOme days you'll wanna burn the fkr down cuz of all the extra work a home creates for ya but you'll never regret it. Best of luck finding that house with the perfect place to put your secret oasis, and remember to buy a good amount below what the creditors offer. best of luck to you.
RM
RM
I mean why would I rent when with almost the same amount that i pay monthly ,when i can buy a house with a loan??
Well yeah...people had the same logic two years ago. And now they got FUCKED BIG TIME! So there are two sides to this..
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andrew415
Thanks guys for all the input, It kind of makes a difference because I'm in Canada in an Oil Rich community with a VERY secure job. There isnt much foreclosures here.
I got a call from my mortgage person today and they approved me for actually 375,000$ but I'm only looking to spend about 275,000$ tops. I've been renting for the last 3 years at 1000.00 a month for a 1 bedroom shitbox. The mortgage will now be around 1300-1400 for a 4 bedroom 2 1/2 bath house built in 1970-1980's.
I got a call from my mortgage person today and they approved me for actually 375,000$ but I'm only looking to spend about 275,000$ tops. I've been renting for the last 3 years at 1000.00 a month for a 1 bedroom shitbox. The mortgage will now be around 1300-1400 for a 4 bedroom 2 1/2 bath house built in 1970-1980's.
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h^2 O
hmmmm....people qualifiying for mortgages which they can't afford...where have I heard this before. You're a construction laborer, and someone approved a $300,000 loan for you? Hook me up with the bank's number - I'm an unemployed student and I could really use a Ferrari 360
Damn, congratulations on achieving your goals man. I'm in a 1-BR apt right now too ~ $1000 a month as well. I'm 22 but I feel like I have much more traveling to do before I find a place to settle down. Sounds like you got your shit planned out though, nice work.
You gonna rent any of those rooms or u planning on growing or what?
You gonna rent any of those rooms or u planning on growing or what?
Pretty sure he makes way more bank than a regular construction laborer doing the oil field shit.
litebuzz
Member
wow that house is like 30 yrs old...has it been updated recently? just make sure it passes an inspection and is structurely sound.
i'd say just be careful, and for fuks sakes, make sure your down payment is enough so that you are NOT paying pmi(total bullshyt waste of $ 4 u).
definitely have them escrow your taxes and insurance.
you can certainly count on at least $3000 a month for everything...int/princ, taxes, insurance, utilities, maintenance...and the list goes on.
its a great feeling dude! congrats!
i'd say just be careful, and for fuks sakes, make sure your down payment is enough so that you are NOT paying pmi(total bullshyt waste of $ 4 u).
definitely have them escrow your taxes and insurance.
you can certainly count on at least $3000 a month for everything...int/princ, taxes, insurance, utilities, maintenance...and the list goes on.
its a great feeling dude! congrats!
gtbuds2332
Member
or you could buy a duplex and rent the other half out. Then your tenants will pay most of your mortgage....it might depend on your market for that to work well though
where i live it works very well, the rent usually covers about 85% of the mortgage
where i live it works very well, the rent usually covers about 85% of the mortgage
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andrew415
h20-
I'm a Heavy Equipment Operator, 3 years experience, lead hand of 16 people on the crew. far from labourer. I started out as a labourer for 17 bucks an hour and now I've worked my way up to 32.50$ an hour.
Now you can quit while your ahead being smart guy or I'll photocopy some pay stubs, cheers
TwoOhsix0
I'm planning on doing a 2000W grow this winter after i'm done work. I only work 7 months a year.
Thanks again guys , lots of help
I'm a Heavy Equipment Operator, 3 years experience, lead hand of 16 people on the crew. far from labourer. I started out as a labourer for 17 bucks an hour and now I've worked my way up to 32.50$ an hour.
Now you can quit while your ahead being smart guy or I'll photocopy some pay stubs, cheers
TwoOhsix0
I'm planning on doing a 2000W grow this winter after i'm done work. I only work 7 months a year.
Thanks again guys , lots of help
HawaiianPunch
Member
Or try to find a four unit apartment type building and rent 3 of the 4. You can be on site maintainance. They don't really have to know you are the owner. Maybe they will know by name but not by face. You'll basically live for free, aside from the upkeep work you'll have to put into the units if they mess em up. Try to get mature people without pets.
If you love where you live and don't plan on living elsewhere, then buy. If you are only there for the work, bad idea. You really save money renting on the short term.
You don't start seeing profits in buying until after 10+ years, unless the housing market skyrockets and you can cash out like a bandit. Doubt you'll see that happening anytime soon.
If anything, buy some property in Dubai
^^^That's what I'm doing 
It all depends on your market, I suppose. I could rent a ~1250 square foot 3 BR home in my town for $1500/month. That's the going rate in several different (good) neighborhoods, through several different property managers. I chose to buy one instead, and bought a 1360 square foot, 3BR home in the same neighborhood (and in as fine/better shape, bigger lot, etc) as many of the aforementioned rentals - hell, there's one next door - and my mortgage payment comes up to a grand total of $960, escrow and all.
I live in a college town with a nearby military base, so the housing market is definitely both somewhat insulated and quite different from most... but you can't just make a blanket statement like that. It's flat-out untrue for some of us.
-s
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why stop there? You could just MAKE a duplex...just put up a sheet wall like when Tony and Angela had to sleep in the same room.
To answer your original question, try to figure out all of your monthly costs then add another 10-15%. That's because when you own your own home, there's always something that comes up. Just think about all those times you've had your landlord in to fix something. You will now be the one doing the fixing. And if you've never owned a home before, there are all kinds of things you will need to buy that you probably won't think of beforehand. Maintaining a yard, for example, requires a number of purchases up front.
One piece of advice from what I've learned over the years -- if you can afford it, don't try to skimp on your necessary purchases. I'm talking everything from a garden hose to a lawn mower to a water heater or furnace to paint to carpet. Cheap stuff is cheap for a reason. You might be able to buy a garden hose for $10, but chances are by next year it's going to be wrapped in duct tape, and then you'll have to spend another $10. You'll be happier in the long run if you invest in quality products (the highest quality you can afford), not only for the piece of mind but less money later on in repairs and replacements.
One piece of advice from what I've learned over the years -- if you can afford it, don't try to skimp on your necessary purchases. I'm talking everything from a garden hose to a lawn mower to a water heater or furnace to paint to carpet. Cheap stuff is cheap for a reason. You might be able to buy a garden hose for $10, but chances are by next year it's going to be wrapped in duct tape, and then you'll have to spend another $10. You'll be happier in the long run if you invest in quality products (the highest quality you can afford), not only for the piece of mind but less money later on in repairs and replacements.
