Posted on: 27th Nov, 2010 08:06 pm
Sorry for the long intro, but I have a bunch of questions and I think a background is relevant.
I am 23 and finishing my degree in a few weeks. I already have a job lined up starting just after the new year. I have good credit (765 on whichever one freecreditreport.com gives you). First year salary is 48K and the experienced average within the field is somewhere in the 60-70K range depending on who you ask. I live at home with my parents so the only major expenses are food and car insurance (no student loans to pay off either).
So, originally I was looking at getting an apartment because as much as I love my parents, it is difficult to take them in intervals of more than a few days. Anyway, decent apartments around here run $600-$800. In addition to that I'm not the type of person who wants to deal with people living above/below/same floor as him. So I look to see what mortgage payments would be. 10K down for a 200K house, a 30-year was about a thousand a month.
So it kind of seems like a no-brainer. I know from my ex-girlfriend's house-buying experience that she needed to have her job for about a year and had to have X amount in the bank for about a year so I realize I won't be moving in soon anyways. I think I'll have to suck it up and save up while living with my parents for about a year.
I highly doubt I'll grow old in the first house I buy as I really am not sure what I want out of life at this point, but I'd be there for a MINIMUM of 5 years, likely 10 or so.
Anyways, am I missing something big here? I realize that there are other expenses involved (maintenance, heat, electricity, taxes, etc). However, around here 200K can buy a fairly decent house so I'm not to concerned with maintenance/repair costs. Overall, compared to a nice apartment it looks to be about $400 a month more to own rather than rent. So for $400 you get to essentially invest your otherwise thrown-out rent money. I can also do modifications, have a yard, and not have to deal with a landlord/tenants. There HAS to be something I'm missing. I realize that not all are as fortunate as I, but even with mediocre credit it seems that a 100K home is attainable for most. Yet most people I know in their upper 20's and lower 30's rent.
So, what am I missing? Also, any advice? Once I'm out of school I will be going to talk to some banks just to get an early game plan. Until then, please opine!
I am 23 and finishing my degree in a few weeks. I already have a job lined up starting just after the new year. I have good credit (765 on whichever one freecreditreport.com gives you). First year salary is 48K and the experienced average within the field is somewhere in the 60-70K range depending on who you ask. I live at home with my parents so the only major expenses are food and car insurance (no student loans to pay off either).
So, originally I was looking at getting an apartment because as much as I love my parents, it is difficult to take them in intervals of more than a few days. Anyway, decent apartments around here run $600-$800. In addition to that I'm not the type of person who wants to deal with people living above/below/same floor as him. So I look to see what mortgage payments would be. 10K down for a 200K house, a 30-year was about a thousand a month.
So it kind of seems like a no-brainer. I know from my ex-girlfriend's house-buying experience that she needed to have her job for about a year and had to have X amount in the bank for about a year so I realize I won't be moving in soon anyways. I think I'll have to suck it up and save up while living with my parents for about a year.
I highly doubt I'll grow old in the first house I buy as I really am not sure what I want out of life at this point, but I'd be there for a MINIMUM of 5 years, likely 10 or so.
Anyways, am I missing something big here? I realize that there are other expenses involved (maintenance, heat, electricity, taxes, etc). However, around here 200K can buy a fairly decent house so I'm not to concerned with maintenance/repair costs. Overall, compared to a nice apartment it looks to be about $400 a month more to own rather than rent. So for $400 you get to essentially invest your otherwise thrown-out rent money. I can also do modifications, have a yard, and not have to deal with a landlord/tenants. There HAS to be something I'm missing. I realize that not all are as fortunate as I, but even with mediocre credit it seems that a 100K home is attainable for most. Yet most people I know in their upper 20's and lower 30's rent.
So, what am I missing? Also, any advice? Once I'm out of school I will be going to talk to some banks just to get an early game plan. Until then, please opine!
great post, I am interesting in it!
One word.. Great! Two words.. Very awesome!