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Started By
Message
Wise friends of the MB: Am I anywhere close to buying a home? UPDATED pg. 3
Posted on 4/7/15 at 7:50 pm
Posted on 4/7/15 at 7:50 pm
What would you do in my scenario? I'm off for spring break and my wandering mind is getting the best of me.
The specs:
Not married
Income- minimum gross is $3,232 but I usually make around $3,400
Can make an extra 2-3k this summer.
Can get reimbursed up to 4k for teaching certification this summer
Debt
Car- $9600 ($257/month)
Credit Card- $1,799 (will be gone in four months) 0% apr
Student loan-$7,000 (I pay $250/month) 0% apr
That's it.
I have $1,000 emergency fund and a few grand in investments.
I'm currently paying ONE HUNDRED dollars per month in rent. I do not live with my parents, and I am fairly happy, but I'm getting the fever.
I pay about $1200/month toward my debt to knock it out.
I don't save much at all. I contribute to my Roth and buy $100 worth of Ford instead (god I'm an idiot)...
I would love to buy a house that is more convenient to the center of the greatest city on earth, Baton Rouge. I currently live in Central which is always 25-30 minutes from nice things.
When would you buy? Where would you buy? I'd prefer not to lose money from this hypothetical purchase.
Long commute to work is not an issue. I work a fair distance west of Baton Rouge.
The specs:
Not married
Income- minimum gross is $3,232 but I usually make around $3,400
Can make an extra 2-3k this summer.
Can get reimbursed up to 4k for teaching certification this summer
Debt
Car- $9600 ($257/month)
Credit Card- $1,799 (will be gone in four months) 0% apr
Student loan-$7,000 (I pay $250/month) 0% apr
That's it.
I have $1,000 emergency fund and a few grand in investments.
I'm currently paying ONE HUNDRED dollars per month in rent. I do not live with my parents, and I am fairly happy, but I'm getting the fever.
I pay about $1200/month toward my debt to knock it out.
I don't save much at all. I contribute to my Roth and buy $100 worth of Ford instead (god I'm an idiot)...
I would love to buy a house that is more convenient to the center of the greatest city on earth, Baton Rouge. I currently live in Central which is always 25-30 minutes from nice things.
When would you buy? Where would you buy? I'd prefer not to lose money from this hypothetical purchase.
Long commute to work is not an issue. I work a fair distance west of Baton Rouge.
This post was edited on 7/19/15 at 3:15 pm
14
Posted on 4/7/15 at 8:06 pm to bayoubengals88
At first glance it looks like you should try to build up your emergency fund before investing in a house. If you were to buy a house today and lose your job tomorrow, you would have to support the new mortgage plus your current debt payments on $1,000 savings. You should also consider if you will be required to put money down or pay closing costs.
Posted on 4/7/15 at 8:06 pm to bayoubengals88
quote:. Pay this as long as possible
ONE HUNDRED
Posted on 4/7/15 at 8:07 pm to bayoubengals88
I would save up more money for a down payment on a home. Plus if it's your first home you'll have to furnish, buy a lawn mower. All that stuff adds up real fast.
Will oil prices being down in BR soften up the real estate market there?
Will oil prices being down in BR soften up the real estate market there?
This post was edited on 4/7/15 at 8:09 pm
Posted on 4/7/15 at 8:21 pm to kaaj24
quote:According to a link on the OT Lounge last week we've added other types of jobs. Lafayette will likely be hurt much worse.
Will oil prices being down in BR soften up the real estate market there?
If I get reimbursed 4k and make an extra 3k this summer then my emergency fund will be at $8,000 in no time. Start looking at this point?
This post was edited on 4/7/15 at 8:22 pm
Posted on 4/7/15 at 8:34 pm to bayoubengals88
Sure, If you want to live in a shitbox trailer, go ahead and look. Or milk this amazing cost of living situation, save up an enormous down payment (with money left over for an emergency fund of at least 3 months expenses), and then look. Slow down.
Posted on 4/7/15 at 8:38 pm to bayoubengals88
How old are you? Any chance of moving out of state? If I was in your shoes, single with no kids, I wouldn't want to tie myself down with a house. $100 a month in rent is basically free. Is the situation hurting you in the woman department? If not, I would ride it out as long as possible. Save your money up as long as possible. If you plan to stay here long term, put together a plan so that you can put a nice down payment down as well as have plenty money for furnishing the new house and then look at houses
Posted on 4/7/15 at 8:45 pm to HeadyMurphey
quote:
How old are you? Any chance of moving out of state? If I was in your shoes, single with no kids, I wouldn't want to tie myself down with a house. $100 a month in rent is basically free. Is the situation hurting you in the woman department? If not, I would ride it out as long as possible. Save your money up as long as possible. If you plan to stay here long term, put together a plan so that you can put a nice down payment down as well as have plenty money for furnishing the new house and then look at houses
this.
Mortgages are for us married folk with kids. If single with no kids you should be able to pack a bag and grab your dog to leave at a moments notice. If you are one of those that just have to have a home then get debt free and save up 20% for down payment. You don't want to be house poor.
Posted on 4/7/15 at 8:53 pm to bayoubengals88
Owning (having a mortgage) is overrated IMO.
I would not buy.
Consider:
1. Payoff your debts.
2. Max retirement savings
3. Travel.
I would not buy.
Consider:
1. Payoff your debts.
2. Max retirement savings
3. Travel.
Posted on 4/7/15 at 8:58 pm to HeadyMurphey
quote:26
How old are you?
quote:
Any chance of moving out of state?
Just started my career last August.
quote:The good ones don't mind.
Is the situation hurting you in the woman department?
The plan was to get rid of this small debt and save about $1,500/month (that's $18k in a year). You all are right. I need to get this idea of owning a home out of my mind.
Posted on 4/7/15 at 9:11 pm to bayoubengals88
Just starting a career, you never know what opportunities might pop up, especially being single. You have the advantage or being able to jump on an opportunity and go at any moment. You would certainly be in a better position to own a home being debt free. As someone else said, homeownership is overrated without a family and a stable career. Resist the urge to jump into it and save your money. Shoot to reevaluate your situation in a year and ask yourself the same question.
Posted on 4/7/15 at 9:32 pm to HeadyMurphey
quote:I wouldn't be. Pay $100/month for as long as possible.
Am I anywhere close to buying a home?
Posted on 4/7/15 at 9:36 pm to bayoubengals88
I think just have a case of the grass is greener... Just be happy you aren't having to pay for the upkeep of that grass, pay a mortgage, fix the ac...
You are very lucky To have a decent place for $100, take advantage of that as long as you can.
You are very lucky To have a decent place for $100, take advantage of that as long as you can.
Posted on 4/7/15 at 9:49 pm to bayoubengals88
$100/mo is ridiculous. Do that for as long as possible and invest your money in other arenas.
Posted on 4/7/15 at 10:12 pm to bayoubengals88
Seems like you really love Baton Rouge and willing to set roots here. Nothing wrong with that.
I was similar to your situation near your age. What I would do is:
1 pay off all your debt.
2 save a good amount for a down payment
3 since you are single and don't need too much space, instead of buying a house, I would buy a duplex in a good neighborhood(garden district, mid city). You can get a good one for 190K. Finance it for 15 years. With the rental income, you're mortgage payment won't be that bad. And you'll increase your equity faster over time.
4. You can always buy a house later
I was similar to your situation near your age. What I would do is:
1 pay off all your debt.
2 save a good amount for a down payment
3 since you are single and don't need too much space, instead of buying a house, I would buy a duplex in a good neighborhood(garden district, mid city). You can get a good one for 190K. Finance it for 15 years. With the rental income, you're mortgage payment won't be that bad. And you'll increase your equity faster over time.
4. You can always buy a house later
Posted on 4/7/15 at 11:03 pm to bayoubengals88
quote:
Car- $9600 ($257/month)
Credit Card- $1,799 (will be gone in four months) 0% apr
Student loan-$7,000 (I pay $250/month) 0% apr
That's it.
Work this down to nothing.
quote:
I have $1,000 emergency fund and a few grand in investments.
Get this to about $10k
quote:
I contribute to my Roth and buy $100 worth of Ford instead (god I'm an idiot)...
Get this to 15% of your gross.
Then lets talk about a house. If you're motivated, this can happen in 2 years. Get to it.
Posted on 4/7/15 at 11:04 pm to PeteRose
quote:
3 since you are single and don't need too much space, instead of buying a house, I would buy a duplex in a good neighborhood(garden district, mid city). You can get a good one for 190K. Finance it for 15 years. With the rental income, you're mortgage payment won't be that bad. And you'll increase your equity faster over time.
This is also good advice for the OP in a situation like Baton Rouge that has a robust, vibrant rental market.
Posted on 4/8/15 at 6:31 am to Ace Midnight
First off , you are way smarter than most in that you are willing to ask questions to people older than you. Great job on that.
I agree with a that is said but would add this. You are in no hurry to buy a home. The Intrest rates are crazy low and as a result the housing prices are high. Just pay off debt and keep saving and investing for when your lifestyle changes and you need a house.
A house won't make you more of an adult. It just will tie you to one location and cost more money and time than you can imagine.
I agree with a that is said but would add this. You are in no hurry to buy a home. The Intrest rates are crazy low and as a result the housing prices are high. Just pay off debt and keep saving and investing for when your lifestyle changes and you need a house.
A house won't make you more of an adult. It just will tie you to one location and cost more money and time than you can imagine.
Posted on 4/8/15 at 7:16 am to SECdragonmaster
Patience is key here. It is tough when first starting out but good choices now mean a better life later. Hang to much debt on your back and you can be like the majority of Americans, waiting on your tax refund to buy a big screen tv. Just keep paying down debt and saving your money as long as feasible. Your position to buy will be stronger and you will ultimately be better off financially.
This post was edited on 4/8/15 at 7:17 am
Posted on 4/8/15 at 7:25 am to PeteRose
quote:
Seems like you really love Baton Rouge and willing to set roots here. Nothing wrong with that.
I was similar to your situation near your age. What I would do is:
1 pay off all your debt.
2 save a good amount for a down payment
3 since you are single and don't need too much space, instead of buying a house, I would buy a duplex in a good neighborhood(garden district, mid city). You can get a good one for 190K. Finance it for 15 years. With the rental income, you're mortgage payment won't be that bad. And you'll increase your equity faster over time.
4. You can always buy a house later
This. Looking back I wish I would have bought a place I could rent out after I move.
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