Advice on Purchasing my First Home

[citybythebay]

Originally Posted by ScrantonWilkesBarre

Thank you. I already have my future neighborhood staked out (Hill Section), yet I won't be able to afford a home there for another seven or eight years or so (most homes range from $175,000-$250,000). Here are a few homes I'm already eyeing up, even though they'll likely be long sold by the time I'm house-hunting.

I like the Tudor style house at the top...and as others have mentioned the room-mate deal could break the deal...I totally agree with that. Personally, I could not handle having a room-mate.
I agree MoMark ^^^ renting does not mean you can't save money...been there, done that.
There are many ways to budget and save money while renting.

[Cornerguy1]

You don't realisticly have either the savings or the income to carry a house right now. Waiting 3 three years until you're 23 or 24 isn't going to make a lot of difference in the long run.


But

You realize this will put a major crimp in mainebrokerman's plan whereby you get a female room mate? Are you prepared to make that sacrifice?

[christina0001]

My concern for you is, what if you end up wanting to go to a different school for your masters? You might have to make a long commute, or sell the home too quickly and lose money when you factor in what you spent on closing costs, etc. Rent as cheap as you can and keep saving up money; when you are done with school you'll be in a great financial position to buy. Wouldn't it be great if you could save up enough money between now and then to put down 10% - 20% on your dream home?

[mm_mary73]

Originally Posted by ScrantonWilkesBarre

Thank you all for your help thus far! I think I've decided to rent instead for the next three years until I'm on more solid financial footing. Besides, I won't be earning nearly enough money to have a "safety cushion" in the bank should the hot water heater decide to go or if I find out that more work needs to be done to bring the electrical wiring "up to code." I'd just be better off avoiding the hassle for now and renting for a while. 1-bedroom apartments can be had around here for $500/month, including all utilities. I can certainly swing that!

Considered a "lease-purchase"?

[Cosmic]

I don't think a lot of people understand the "Roomate" thing. From my experience there are few negatives. There is just about zero legal whatever in terms of ownership. Somebody buys a house and owns it, all the others are simply folks paying a form of rent.

The roomates typically have no girlfriend / boyfriend relationships. In fact you probably don't want that type of arrangement. But it is a good way to raise additional money to carry a house you normally could not afford. In Boston, two women had one a few doors from me and they had like 5 other folks in there. The real negative is all the cars that produces for certain neighbors with no off street parking.

One other big advantage with that type of arrangement you always have somebody else to pick up your mail, pay bills, watch after your stuff, etc if you travel a lot or take long vacations. It is more like living with a family of that particular size. Never get any kids into the arrangements.

If you look in the local paper see if there are any such ads to give an idea of what type of income that can generate. The other good thing it one person moves out, the owner does not lose all rental income for that month. Lot of people like that type of living, no lease or paperwork, just two months rent up front. No deposits, etc.

The tricky part might be getting the loan based on all the typical Mickey-Mouse.

[SteelCityRising]

Originally Posted by mm_mary73

Considered a "lease-purchase"?

That would be wonderful, Mary, but there aren't many of those types of opportunities available in NEPA. I'd love to enter into a five-year rental lease agreement for a nice home in the city with the option to purchase after that, as it would be perfect timing for where I'd be professionally---just starting to climb up to near senior accountant level---and I'd be able to swing it.