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Is there anything tying you to Seattle? It sounds like you could live anywhere. Seattle is expensive (although compared to NYC and SF it's relatively affordable). Don't feel compelled to defend your lack of saving--it's your life and your money--but a $60k salary even in more expensive places is enough to save a little for emergencies if that is the priority.
I'm a bit perplexed as to why you'd move to Texas if you like the mountains of the Pacific Northwest. Isn't Seattle the most expensive US city in the Northwest? Why not move somewhere relatively close but not as expensive? Eastern Washington, idaho, Montana, Oregon, and even other parts of coastal Washington should be cheaper, right?
P.S.
To the one who insulted me, OrangeNJ, you don't know anything about me, but I would like to see if you could survive working the long hours and running a business from your home as I do.. I do the work of like 10 people, from developing very sophisticated software solutions to dragging the office furniture up two flights of stairs, doing tech support and setting up all the equipment. Most companies have people who are paid just to setup the networks, alone.
I'm sorry if you felt insulted, but that was not my intention. The fact is your post came across as whiny. As you said, maybe it is time to look for a new job. $60k, while a good salary, does not sound like enough for the amount of work you say you are doing. If your job is one that can be done anywhere, perhaps moving to a lower COL area for a few years to save money would be your best solution.
I'm a little perplexed about why you've continued to work for the family busuness for 15+ years. It sounds like you could make much more than 50k if you worked elsewhere. And no employer sponsired 401k?
I'd be thinking long and hard about that employment situation before considering purchsding a home or adopting kids.
I'm a little perplexed about why you've continued to work for the family busuness for 15+ years. It sounds like you could make much more than 50k if you worked elsewhere. And no employer sponsired 401k?
Jk, I am as perplexed as you are.. If things don't change with the business this year, I am planning on finding a job, which is a reason why I want to relocate closer to a city with lot of IT Jobs. In between working the job, I am training myself in some various technologies that I think will help improve my job prospects.
Quote:
Originally Posted by Jkgourmet
I'd be thinking long and hard about that employment situation before considering purchsding a home or adopting kids.
Won't be adopting kids any time soon.. That may be 10 years down the line, unless things look better financially.
Yeah, I am pretty set on renting.. I wasn't planning on buying, unless I saw improvement in the business in the next year. I also plan on taking over the company eventually. I am currently releasing a new software product that I am going to see how much income it will generate and will be developing a cloud based system over next year, which may result in a giant revenue.
I posted this thread more out of curiosity than anything, because I know sooner or later I Would like to buy a home rather then deal with landlords. Of course, I just thought I would see what people thought of my current situation, especially with a high credit score. I'm an definitely understanding the consensus is to wait until you rack up some savings.
The bad credit score is a killer for a mortgage. Over 30 yrs time or even 15 yrs, that's thousands and thousands if you decide to get a high interest rate loan. And no you may not always be able to refinance later.
15% on a mortgage, for example is insane. But I've seen folks do it.
With a car it's doable but borderline nuts. On a 30 yr. note that's crazy though.
I have been a renter for about 20 years now and I will say I have wanted to be able to claim a place for my own, somewhat like a homebase.. However, I have not been able to accumulate any large amount of money in my bank account over the years, due to the struggles of being part of a small business and having to pay such high rents living most of my life in the Pacific Northwest. The cost of living here is just going up and up. However, my parents lost big time on their house and went into bankruptcy during the housing crash. They made some major mistakes, buying the house at a peak value in a remote resort town in Southern Oregon. Also, the house they built was built in the 70s , was not desirable and had a host of problems that ended up costing them tens of thousands of dollars. My father ended up becoming a handyman himself to avoid paying many of the repair costs. Basically, the disasters that have affected them has scared me away from ever considering to buy a place.
Anyhow, I am hoping to avoid making the same mistakes he has made. I know I have read over and over about how you should not buy a home if you have no down payment. On the other hand, I hear mortgage rates are at the lowest ever and I also have a credit score above 800. I've paid my bills on time throughout the years and have no negative strikes against me. Thanks to my good money management, negotiating skills and high credit score I was able to buy a brand new car that was well above my price range and I am actually paying less a month on it then I did on a cheaper car I bought that was 2 years old and had 30,000 miles (when I bought the car) previous to the newer car. Basically, I could see where my credit and negotiating skills helped me in a car purchase. However, I am not sure if purchasing a house could have a comparable potential.
I have never bought a home before and I know there will be real estate people on top of me saying it is possible with the hope of gouging me and making money off of me. So, I am hoping to hear answers from knowledgeable people in the forum and if you are real estate agent, I can only hope you will give me sober advice and know that I am not planning on buying for a while anyhow.
So, what are people's opinions? I am living in a semi-rural area right now and planning on moving back to Seattle or another major city so that I can be closer to IT jobs. I've worked in small family software business for 15 + years and have no plans on leaving the business, but I also know that in case things fail I would like to be closer to an area where there are much more jobs for my profession. Also, I plan on starting a side IT business and being near a city like Seattle will be helpful for IT resources.
The downside is that the rental prices in Seattle are through the roof and I feel like I will be tossing money into the toilet as the mortgage rates seem much lower, especially in Snohomish and Pierce countries which appear to have less taxes and lower land/housing costs than Seattle.
It looks like I may have to fork out $1600 a month for rent and I am not so eager. I'm just wondering with a credit score of 800+ and with an income of 60k, would there be any potential for me to get desirable financing without a down payment? Perhaps taking a second mortgage for a down payment that may also have a low interest rate due to the high credit?
One more advantage of buying a home is that I do have the potential to rent out a room or if the property has a Mother-In-Law or something built on it, that could be another revenue incentive. I feel Seattle's housing market will be much more stable than many cities. It only appears that more people are moving to Seattle and there is limited space to build. This is all speculation and I am no expert on market trends.. I just know that I felt the same about San Francisco 16 years ago when I was looking to live there and prices are now double or triple what they are when I was looking back then.
Is there any potential to purchase a home well below market value from a short sale or foreclosure in an area like Seattle?
My goal would be to purchase a home outside of the city, in a suburb where land is cheaper and I can actually live in a single family home with a garage with a private yard. Places I would be considering would be semi-country or suburban areas like Duvall, Monroe, Lake Stevens, Snohomish, South Everett, Lynnwood, Edmonds, West Federal Way (away from I-5) and others in these areas.
I'd desire to live in places like Issaquah, Redmond, Bothell, etc but they are way too much money.
Anyway, I really appreciate to hear people's advice.. I am just curiosity to hear people's advice. Most likely I will just end up renting and playing it safe, but I am wondering if there are any other options out there.
There are two types of rural loans. The direct loan does not require much money, might even be 100 financing as this is the type person the loans are for, good credit no extra money. everyone starts somewhere trying to buy your first home. I was broke, young, and borrowed my tiny down payment from relatives which I payed back with interest alongside the mortgage. Was it easy? No, but it worked out. Go on and do what ever it takes to get a home. Check out all mortgage options. First time buyer programs, USDA. You pay your bills, life is risky, even with money ,
I think you can save on your salary if you are willing to make sacrifices (cheaper car, roommates, etc) and live below your means. But if you wish to live how you are currently then unfortunately you are going to be stuck renting until you increase your salary. And if you are indeed planning to adopt and send kids to private school, you will need ALOT more money coming in.
Good luck. You have gotten plenty of great advice. Hope to hear you come back in 2 years with some money saved and ready to buy.
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Is there USDA loans areas in the area?
