Whats The SECRET PEOPLE?!? (mortgage, good credit, student loans)

[Defined_Within]

Ive just came across this site and it seems to give alot of insight . . . So I would appreciate ALL comments PLZ

I moved to this area due to the Katrina situation in NOLA. Ive managed to get a clearance at I'm at a salary of 50k a year. I want to stay away from renting but I feel theres no way for me to stay in a nice,affordable area ANYWHERE around the DC metro area. I dont know if im just so accustomed to having land and the whole bang for your buck theory but I refuse to pay 200k for a 1bed/1bath, 875sq ft condo and my deck being the size of my closet OR a small home for 700k by myself. Renting is OUT THE QUESTION folks.. WHERE THE ARE YALL GETTING YOUR MONEY???!!??..I need to know cause all these 745s and Benzy I see floating around. Ive come up with a few ways I could see it being possible...

1. Married with combined incomes..
2. Making at least 80k single
3. Ppl are renting out every bedroom in there home to cover expenses
4. Your doing something illegal "LOL" jk


I know alot of ppl must be one check from foreclosure..have to be. Unless theres a secret everyone else knows but me?!?

QUESTION: I just made 22, im single, no kids, and good credit.
Is 50k even enough to maintain here in your opinion?
Am I being unrealistic in my thoughts of what life should be like in this area?

[hj2500]

There's no secret, its just plain expensive, like the Silicon Valley or Manhattan (not as bad as those places though). You just have to put up with smaller homes like they do unless you want to live far away from the action. If you want land you'll have to live in expensive places or out in the Hunt Country.

[stacylee926]

Buying right now in the DC area is a little crazy. The housing market of 3 years ago inflated all the property values - maybe inflated is not the right word. The DC was already really expensive to begin with before the housing market took off.

I am not sure why you refuse to rent. Renting a place is not bad at all.
MANY many people are doing that now. You are only 22, but 50k is not alot in that area. If you try to find something affordable, you will end up 1 hr from DC and have to spend all you money and time getting to work.

I was a single mom collecting child support only, had my parents living with me and worked 2 jobs to pay a $1650 mortgage on a TH. I couldn't do it and had to leave town. NOW I am married but have a nice little SFH in a nice little suburban area.

[LLD]

Bottom line is the DC metro area is just outrageously expensive to live in as are some other areas in the country. It was certainly a total shock to my system coming from Texas where land and housing (now I know) relatively cheap compared to many other parts of the country.

$50K at 22 even in the DC area is a decent salary and you should be able to live on it. But it most likely won't be enough to buy a place. Lots of young professionals house share so that they can be close to the action and still have a decent amount of space. This is reasonable then you start socking money away for a down payment on a place. You will have to adjust your expectations in terms of size and what it costs -- every one of us has that didn't grow up in this area or came from a much cheaper housing market.

Some people choose to deal with long commutes to find more affordable housing, others don't. So you need to really weigh what is most important to you. In the end, you might decide the area is not for you -- as have many others. You are so young, probably best not to lock yourself into buying anything anyway in this totally crazy real estate market. You need 10-20% down now too -- I don't think there are going to be many 0% down mortages granted in this current mortgage market debacle.

[Defined_Within]

Originally Posted by stacylee926

I am not sure why you refuse to rent. Renting a place is not bad at all.
MANY many people are doing that now.

Rent here in the area is close to mortgage payments. After a year or 2 of renting...what you get out of it....NOTHING. Dont even think it shows on your credit report SMH

Originally Posted by stacylee926

You are only 22, but 50k is not alot in that area. If you try to find something affordable, you will end up 1 hr from DC and have to spend all you money and time getting to work.

Yes I guess it isnt much at all huh...

[Defined_Within]

Originally Posted by LLD

Bottom line is the DC metro area is just outrageously expensive to live in as are some other areas in the country. It was certainly a total shock to my system coming from Texas where land and housing (now I know) relatively cheap compared to many other parts of the country.

$50K at 22 even in the DC area is a decent salary and you should be able to live on it. But it most likely won't be enough to buy a place. Lots of young professionals house share so that they can be close to the action and still have a decent amount of space. This is reasonable then you start socking money away for a down payment on a place. You will have to adjust your expectations in terms of size and what it costs -- every one of us has that didn't grow up in this area or came from a much cheaper housing market.

Thanks very much for you opinion..

[claremarie]

Am I being unrealistic in my thoughts of what life should be like in this area?

No. You are, however, being unrealistic about what life should be like for a 22 year old person. Most of the people who drive the nice cars you see on the road, and who live in the houses and condos you can't afford, are not 22. Nearly all of them have college degrees, and more than a few have advanced degrees. They work hard, and are probably married to someone else with a good job who also works hard. But when they were 22, they were either in graduate or professional school, or working an entry-level position making far less than $50K. They were paying back student loans. They were renting small apartments, usually with roommates. They were not always living in "nice areas."
That's the secret.
If you refuse to rent for the time being, then you are living in the wrong city.

[pennylove76]

I would say the secret is people paid their dues. At 22 making $50k the dues would be to live in a condo or townhome and as you make more money and/or get into a relationship you sell your house & make a profit and buy the bigger/better place you can now afford.

I don't live in the area but I am looking to move there. When I was your age I did not make $50k niether did my husband and we are not that much older than you. However, we were smart to buy a townhome. We lived at the townhome for 2 years while continuing to do well in our careers and in the interim our house greatly appreciated in value. When we sold our townhome 2 years after buying it we were both making very good salaries and we made a profit on our sale. So we were able to buy the house we currently live in, which had the nice large lot and other amenities that we desired.

We were the youngest people in our neighborhood for 2 years, actually we still would be but their is now a wife who is a year younger than me.

My point is we were smart to buy real estate. Granted the market was much better. However, I would still argue that if you plan on staying in the area you should buy something even if it is small. The tax benefit alone made it worth it for us and then once your life takes you in a different direction you can sell your real estate for a profit and move on.

Also, even in a bad market you can still make money on real estate. My best friend did the same thing we did only she bought a duplex. She live downstairs & rented the upstairs out. She has since moved in with her boyfriend and they decided to buy a bigger house. However, rather than sell her duplex, she also rents out the bottom and makes very good retal income. Enough to pay the mortgage for the duplex and still have some to save for maintenance. Also, she was able to use the equity in the duplex to buy the house her & her boyfriend now lives in.

Side note, my husband and I do save money and we are not one step away from foreclosure. And, I truly belive that our "secret" was to buying real estate as soon as we could when we were about your age. We may have been about a year or 2 older but we started seriously saving and looking at what our options were at age 22.

[Defined_Within]

Originally Posted by pennylove76

I would say the secret is people paid their dues. At 22 making $50k the dues would be to live in a condo or townhome and as you make more money and/or get into a relationship you sell your house & make a profit and buy the bigger/better place you can now afford.

So this paying dues thing your referring to...is it the age dues or salary dues?

Originally Posted by pennylove76

Side note, my husband and I do save money and we are not one step away from foreclosure.

If i offended you...that wasn't my intent,..but IF YOU WERE in this area you would understand that alot of ppl are foreclosing on there homes. . sad to say, but TRUE. I believe if i had a wife also my problem really wouldn't be problem at all and there wouldn't be a point of even writing this.[/quote]

Originally Posted by pennylove76

And, I truly belive that our "secret" was to buying real estate as soon as we could when we were about your age. We may have been about a year or 2 older but we started seriously saving and looking at what our options were at age 22.

Thats really not a secret, I know buying real estate is the way to go..i understand that concept,...thats what im trying to do!

[Tone509]

As others have said, the DC area is extremely expensive. It's just how it is. The excellent job market here has pushed up salaries which consequently drove up housing costs. Getting a $50K gig with clearance is an amazing thing to do at 22. You'll either have to pay your dues by renting and/or sharing a home while you get the experience - and theoretically, the salary increase - needed for the type of close-in home that you want... or you'll have to settle in for a commute of 90 miles/minutes or more.

Your first three assumptions are correct and pretty much necessary and typical for many here. Who knows... maybe even #4 might be true for a selected few.

Land is at a premium in Northern Virginia and the DC metro area in general, not to mention the Northeast and other areas mentioned earlier in this thread. That is not an issue, I'm sorry to say, in NOLA let alone other less densely urbanized metros in the country.