- 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
First time home buyer - need advice
Posted on 2/1/17 at 10:24 pm
Posted on 2/1/17 at 10:24 pm
So recently got a new job that has giving me a set schedule and cut out traveling so looking into buying a house. Location is flexible so as of right now I am looking at either the Mand/Cov area or Laff area. I thought about renting as I am still applying to out of state jobs because I am interested in moving to Denver or TX but my field "O&G" is slow right now. However renting seems like throwing away money, especially being the current outlook for the industry isnt all that good and it could be awhile before an opportunity arises.
Ideally I am looking for a place I can either start renting out or sell in a couple of years, by no means a long term residency. The housing market in Laff seems way over bought and a bubble waiting to burst. The continued climb in housing prices with the collapse of O&G jobs makes no sense. Is there something I am missing there?
The 2nd question is do I put money down or go with a FHA or rural development "all if St. Tammany parish applies for this somehow". I have always heard to put money down but not exactly sure of the reason.
Ideally I am looking for a place I can either start renting out or sell in a couple of years, by no means a long term residency. The housing market in Laff seems way over bought and a bubble waiting to burst. The continued climb in housing prices with the collapse of O&G jobs makes no sense. Is there something I am missing there?
The 2nd question is do I put money down or go with a FHA or rural development "all if St. Tammany parish applies for this somehow". I have always heard to put money down but not exactly sure of the reason.
This post was edited on 2/1/17 at 10:25 pm
7
Posted on 2/2/17 at 5:34 am to GREENHEAD22
quote:
However renting seems like throwing away money,
Renting will save you money
Posted on 2/2/17 at 7:08 am to GREENHEAD22
If I recall. General rule of thumb is if you're not going to live in it for more than 5 years then just rent. With things like closing cost, taxes and all the bullshite that comes with owning a home you won't make enough equity to make it worth the risks.
Of course you do get to do what you want. I rented while I built and it was miserable.
Of course you do get to do what you want. I rented while I built and it was miserable.
Posted on 2/2/17 at 7:11 am to GREENHEAD22
I believe there are income restrictions on USDA Rural Development loan. When I bought my house I think the income limit was 75K. I am no means a financial expert, but if you are planning on moving to Denver or Texas, I believe it would be wise to rent. Even you said O&G is down right now which means a lot of people are not going to be purchasing housing which in turn could make the house you buy sit on the market longer if and when you decide to move.
Posted on 2/2/17 at 7:35 am to Perrydawg
quote:
believe there are income restrictions on USDA Rural Development loan. When I bought my house I think the income limit was 75K.
I think it depends on where you live. High cost areas like Denver typically have a higher income limit.
Posted on 2/2/17 at 7:52 am to GetCocky11
If you do not plan to live there for 5 years, then chances are that you will still not have much equity in it if you do not put any money down due to having to pay the interest up front and all of the closing costs and other fees. The amount of the loan will typically be just over 100% of the purchase price.
The only way that you will make money in a shorter amount of time than 5 years is if the house increases in value over that short time. It is possible, but not likely. For example, I purchased a house in prairieville with rual development that I owned for 3 years. The market jumped in my area and I was able to make a few grand off of it, but it wasn't much at all. In that three years, I only got the loan down to 2,000 below the original purchasing price due to paying all of the fees and majority interest up front.
Best of luck to you.
The only way that you will make money in a shorter amount of time than 5 years is if the house increases in value over that short time. It is possible, but not likely. For example, I purchased a house in prairieville with rual development that I owned for 3 years. The market jumped in my area and I was able to make a few grand off of it, but it wasn't much at all. In that three years, I only got the loan down to 2,000 below the original purchasing price due to paying all of the fees and majority interest up front.
Best of luck to you.
Posted on 2/2/17 at 10:18 am to GREENHEAD22
there is a LOT of money thrown away on owning a house.
1) property taxes
2) Maintenance
3) repairs
4) interest
5) home owners insurance
If you add these up, it has normally been about the price to rent for my situations. Owning a home for me is not the best financial move. I own a home because I like to play music loud and have the appliances and features I like.
1) property taxes
2) Maintenance
3) repairs
4) interest
5) home owners insurance
If you add these up, it has normally been about the price to rent for my situations. Owning a home for me is not the best financial move. I own a home because I like to play music loud and have the appliances and features I like.
Posted on 2/2/17 at 10:32 am to notsince98
quote:
there is a LOT of money thrown away on owning a house.
You are only thinking short term. If you lock in a mortgage, you've locked in an expense for 15-30 years and then it drops to 1/3-1/2 once its paid off. Rent continues to go up.
Additionally, if bought at the right price a home should go up in value. You can't buy a high end home brand new and expect that as you bought at the top of the market, but its very possible to find deals and do that.
None the less, I would not recommend the OP buy unless he is looking to buy something like a foreclosure to fix up or if figures out his plans. You should not buy unless you are planning on living there for at least 3 years. Chances are if you buy and have to rent out a house you bought at market value the money you make if anything is not going to be worth the hassle.
Posted on 2/2/17 at 10:54 am to GREENHEAD22
In your shoes if you are going to buy, I would look at something in the Lafayette area close to UL that you can fix up and if you leave will always have renters in the area because of the university. It will be a pain in the arse at times to maintain if you are that far away and a landlord, but if you find the right house at the right price it might work.
Posted on 2/3/17 at 7:13 am to baldona
quote:
You are only thinking short term. If you lock in a mortgage, you've locked in an expense for 15-30 years and then it drops to 1/3-1/2 once its paid off. Rent continues to go up.
I don't think you read my post very closely. The only thing that goes down over time is the cost of interest. Everything else will go up. The only time buying a house is a real investment/money move is if you are going to flip it. owning a home will throw away a ton of money no matter what.
Posted on 2/3/17 at 7:49 am to notsince98
quote:
there is a LOT of money thrown away on owning a house.
1) property taxes
2) Maintenance
3) repairs
4) interest
So, you are saying that as a renter, your landlord just pays this stuff for you and you get a good deal only paying rent?
Of course the rent you pay covers all these expenses (and more since the owner can't claim homestead extention, plus is looking to make profit).
Difference is you opening yourself up to risk and locking yourself into something. I bought my first house a year out of school. But I also knew that if I moved with my company, they paid closing costs, agent fees, etc.. so as long as my home value didn't go down, I was good. Sold 4 years later and made a few thousand. If I didn't have that deal, I'd have lost money and rent would have been worth it.
Rent might very well be a better option. Especially for the OP....why would you ever buy when applying out of state? But to say the money thrown away on owning is ever the same as renting something equal is false, unless the landlord is losing money or bought way before prices rose in the area and is too stupid to set his rent appropriately.
Posted on 2/3/17 at 8:12 am to coachLSU
quote:
quote:
However renting seems like throwing away money,
Renting will save you money
Some markets it makes more sense to own, some you are better off renting.
Imo, home ownership, from an investment standpoint is overrated.
Posted on 2/3/17 at 8:58 am to 632627
"1) property taxes
2) Maintenance
3) repairs
4) interest "
----
Add in closing costs and selling costs....
Makes no sense buying for the short term. You have no idea which way the housing market will go.
Posted on 2/3/17 at 9:08 am to GREENHEAD22
If you don't have 20% to put down, you're gonna be paying PMI....which is simply throwing money away. About the only way I'd buy with a short occupancy horizon like yours is if you are very handy and can find a distressed/unrenovated property & handle the renovations yourself. Sort of a live-in flip. But you are probably better off renting since you clearly plan to move....
Posted on 2/3/17 at 11:29 am to GREENHEAD22
Avoid the Marigny Circle area when apartment hunting in Lafayette.
Posted on 2/3/17 at 11:52 am to KG6
quote:
Of course the rent you pay covers all these expenses (and more since the owner can't claim homestead extention, plus is looking to make profit).
False equivalence. I don't know of a rental house that would have as nice as stuff as the average joe puts in their home. Rentals always go cheap. The cost of owning and maintaining a rental house will always be less than owning.
Posted on 2/3/17 at 12:07 pm to notsince98
quote:
I don't think you read my post very closely. The only thing that goes down over time is the cost of interest. Everything else will go up. The only time buying a house is a real investment/money move is if you are going to flip it. owning a home will throw away a ton of money no matter what.
LOL, what? What about if you have a 15 year mortgage and pay your house off? You are telling me that its cheaper to rent than live in a paid off house? If you buy a house at age 30 and its paid off at age 45, you are telling me from 45 to death you are better off renting?
You are in over your head and need to stop if you honestly think long term you are better off renting than owning.
ETA: I'll give you this, there are plenty of bad ways to own a home and you are right its easy to waste money. But ultimately, the best potential money move is to own a home long term and pay it off in 15 years or less.
This post was edited on 2/3/17 at 12:10 pm
Posted on 2/3/17 at 1:23 pm to notsince98
quote:
I don't think you read my post very closely. The only thing that goes down over time is the cost of interest. Everything else will go up. The only time buying a house is a real investment/money move is if you are going to flip it. owning a home will throw away a ton of money no matter what.
bullshite. Land value can exponentially increase the value of property. Tear downs in Nashville are getting 600k and up for 1/2 acre lots. Just closed on a house built in 62' that owner paid 38k for. Sold for 560k.
Posted on 2/3/17 at 7:01 pm to iknowmorethanyou
Yea after some more thought I am going with rental for a year or so until career options become a little more clear. Main reason I was looking to buy was to have rental property and collateral for future land purchase but if I move it would just add a headache having to manage it from afar.
Posted on 2/3/17 at 9:00 pm to baldona
quote:
LOL, what? What about if you have a 15 year mortgage and pay your house off?
the monthly note on a 15 year mortgage is going to be alot higher than renting a like property, so you can't just make some arbitrary statement like this.
long term, and barring disaster, owning a home long term will make more financial sense than renting. however, as an investment, your home is an illiquid asset, at some point you will need to dump more money into it, and you take on risks that a renter doesn't.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News