- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Buying an apartment directly out of college
Posted on 7/10/18 at 11:26 am
Posted on 7/10/18 at 11:26 am
I am on track to graduate in two semesters and role into the work force. I have a position with a company lined up already because I have been interning there for around the last year or so. I’ve already been told the position is mine if I want it. Starting pay would be around 60k. I have been thinking about my housing situation coming up when I start there. I have been able to find many one bedroom apartments available for purchase in the 90-100k range. From what I’m looking at in the area rent on a similar apartment in the same area would be more than a mortgage note and insurance. I’m considering using a first time buyers loan, and just buying a place as opposed to renting and having to deal with a land lord.
No debt
Basically no savings though
Truck allowance from company so won’t ever have to worry about note
Am I missing something here because I believe I’m definitely going to buy a place an oppsed to renting, which seems to be the norm for the right out of college crowd.
No debt
Basically no savings though
Truck allowance from company so won’t ever have to worry about note
Am I missing something here because I believe I’m definitely going to buy a place an oppsed to renting, which seems to be the norm for the right out of college crowd.
8
Posted on 7/10/18 at 11:35 am to ALSUFAN
I'm not sure about where you're buying, but in TN first time home buyers can qualify for a forgivable 15K HFA loan for a down payment - you should see if anything like that is available in your area. It's a pretty sweet deal - the loan tapers down by like 20% per year the last 5-10 years so if you live in the residence for 10+ years it's completely forgiven.
I'm in the same boat but I don't know what my long-term (3+ years) looks like so I'm renting for the time being.
I'm in the same boat but I don't know what my long-term (3+ years) looks like so I'm renting for the time being.
Posted on 7/10/18 at 11:41 am to ALSUFAN
I would probably wait until I had established some type of savings/emergency fund before jumping into a significant purchase like that, especially if you are just graduating college. With renting, you have a set amount you know you will spend every month. If you own the place, then you never really know when you will incur a significant expense. It would be nice to have an emergency fund/savings to fall back on when the significant expense occurs, especially if you are purchasing an older unit. Owning a house/apartment sounds glamorous, but there is some value in having the apartment complex fix all your issues on their dime.
Additionally, given that you are new the workforce, you may want to move sometime soon if you are offered a better opportunity or if you get tired of the area. Just another factor to consider.
Additionally, given that you are new the workforce, you may want to move sometime soon if you are offered a better opportunity or if you get tired of the area. Just another factor to consider.
Posted on 7/10/18 at 11:48 am to ALSUFAN
1 bedroom places can be harder to sell so that is a consideration. That may be why you can find so many available....
Posted on 7/10/18 at 12:01 pm to ALSUFAN
quote:
which seems to be the norm for the right out of college crowd.
Definitely not.
quote:
Am I missing something here because I believe I’m definitely going to buy a place an oppsed to renting
My first year out of college I bet I got 15 messages on LinkedIn asking if I had interest in a job. You have no money to put down so you'll have zero equity and will pay PMI. If you want to move after 2 years you'll lose money after paying realtor fees, insurance, etc. There's no reason to rush into buying, especially when you don't have any money.
Posted on 7/11/18 at 6:36 am to ALSUFAN
I would buy it and live in it a couple years. You will save money on your note as opposed to renting a similar place. You can rent it out when you move on to buy a bigger place. I rent out my first home I purchased and build equity without paying a dime. Your margins should be nice on an apartment and you may even come out ahead each month. Having a single family home, I am closer to breaking even.
Posted on 7/11/18 at 6:41 pm to ALSUFAN
It's fine if you don't want to, but I'd buy a 2-3 BR and rent rooms to friends.
Posted on 7/13/18 at 4:41 pm to ALSUFAN
Lack of liquidity for owned apartments is no joke. You could be offered a far better gig or simply want to try a new geography (maybe meet a sig other who wants to GTFO or is tired of your poor 1 BR) and you won't find a timely buyer or at least one that won't demand such a discount that all the "savings" incurred via not renting are thrown in the fire and maybe more accounting for selling costs. Oh and you have no nest egg.
Until you're in the geography you want to spend the next decade in + have savings + have reasonable degree of assurance that you know what you're doing, it's probably not a good idea.
Until you're in the geography you want to spend the next decade in + have savings + have reasonable degree of assurance that you know what you're doing, it's probably not a good idea.
Posted on 7/16/18 at 10:20 am to ALSUFAN
Some good advice in this thread. It's tougher to sell a person right out of college to buy considering the unknowns in a job field and potential for moving or even transitioning. If you feel super comfortable with the current job lined up and that it's stable and something you want to do for a little while, then I'd certainly look into owning. I don't know I'd do a 1 BR, though. I'd personally look at a cheaper 2 or 3 BR house that you can qualify for with little to no money down. Easier to sell and can rent out to friends. I realize it may not be cheaper, but you pay out the arse in HOA and other fees for owning in condos, too. This is an extra 200 or so that's can be hidden when researching.
I'd talk to someone you trust about home ownership before jumping into it. People in family, close friends, and maybe even look further into the company more. It's a major investment that isn't easy to just get in and out of. You need to be confident in just about every aspect before doing this. If all checks out, then you may make out a lot better than renting for a few years. Don't feel rushed into doing this, though. Take your time and do your homework.
ETA: There are also a lot of good threads linked on this topic that should give you more specific information if you decide to move forward.
I'd talk to someone you trust about home ownership before jumping into it. People in family, close friends, and maybe even look further into the company more. It's a major investment that isn't easy to just get in and out of. You need to be confident in just about every aspect before doing this. If all checks out, then you may make out a lot better than renting for a few years. Don't feel rushed into doing this, though. Take your time and do your homework.
ETA: There are also a lot of good threads linked on this topic that should give you more specific information if you decide to move forward.
This post was edited on 7/16/18 at 10:23 am
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News