Should I move back home? (renting, claim, bedroom, building)
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If your job is stable, get the house. $100K is a good price and it's better than throwing away money on rent, assuming it's in a good neighborhood with a good school system and not likely to go downhill.
I wish I'd bought a place in my late 20s or early 30s and then today I'd be in a much better financial position. Instead, I threw 20 years of rent down the toilet and have nothing to show for it--$240,000 or so down the drain. Sure, some will advise you not to, but I thought I'd represent the opposing view because I think it's worth considering.
Now if you are feeling super thrifty, and you have a good relationship with your parents that you won't be fighting or resenting them all the time, or them you, then it's worth considering that option as well because you can save a ton of money toward a house downpayment later on. But you should pay them something--$300/month or whatever they would accept--to relieve the feelings of guilt on your part at being a free loader and the feelings of resentment on their part that they have to take you in but you should be more independent.
Best of luck and let us know what you decide.
If the OP can get rent down to $350/month it makes more financial sense than buying a house for $100K. But moving back with parents is mooching, and that's a different beast entirely because you're not cutting your costs, just offloading them.
Don't move back home with your parents unless you are totally down and out. And by that I mean, something like you have brain damage from an injury and can't work and have $200,000 in debt.
Your rent is very low. It is less than half the national average. You should be able to save up to buy a house and keep living where you are at, even if you live somewhere like Detroit.
Don't be seduced by a tax deduction for mortgage interest before you run the numbers through the likes of TurboTax. The standard deduction is often higher.
OP, keep in mind the fact that if you marry your spouse may not want to live in the house you have purchased.
Plan:
1. lower your current expenses by searching for a living arrangement that would be cheaper.
2. fully fund your IRA/401K
3. invest the remainder in a balanced fund such as Wellesley Income or if you want to eliminate uncertainty IBonds. Learn about investing by reading, Boggleheads website is strongly recommended.
I'll answer your questions with questions that will help you and potentially others trying to answer you questions....
Have your parents INVITED you to move back home, or is this your idea and they are unaware???
Do you plan on "paying room and board" or do you expect them to pay your way for the honor of sharing their home with you?
Are you willing to live by THEIR rules (assuming they have any) or do you want to be your own person with your own needs the ONLY consideration???
WHAT would be your intention??? To save $$$ to move in a goal related time, or just an open ended "hey guys, you gave birth to me and are now responsible for me" kind of move????
Seriously, your goals, contributions, and thoughts as to WHY you are considering such a plan would be most helpful.
Don't be seduced by a tax deduction for mortgage interest before you run the numbers through the likes of TurboTax. The standard deduction is often higher.
OP, keep in mind the fact that if you marry your spouse may not want to live in the house you have purchased.
Plan:
1. lower your current expenses by searching for a living arrangement that would be cheaper.
2. fully fund your IRA/401K
3. invest the remainder in a balanced fund such as Wellesley Income or if you want to eliminate uncertainty IBonds. Learn about investing by reading, Boggleheads website is strongly recommended.
Home ownership is not a slam dunk financially.
I am single, never married, and I don't have any kids. But you have a very interesting point. What if I do marry later on? She might have a lot of stuff to move into the house or she might want a different house altogether! Not only that, but selling the house would be harder than buying it. Not only do you have to put the house up for market, but if the economy is bad and not many people are buying, that will just make it harder to sell the house and the price of the house may have to go down. As I recall, I think that when you sell the house years later, you also have to pay the seller's agent fees as well as the commission for the buyer's agent.
I'll answer your questions with questions that will help you and potentially others trying to answer you questions....
Have your parents INVITED you to move back home, or is this your idea and they are unaware???
Do you plan on "paying room and board" or do you expect them to pay your way for the honor of sharing their home with you?
Are you willing to live by THEIR rules (assuming they have any) or do you want to be your own person with your own needs the ONLY consideration???
WHAT would be your intention??? To save $$$ to move in a goal related time, or just an open ended "hey guys, you gave birth to me and are now responsible for me" kind of move????
Seriously, your goals, contributions, and thoughts as to WHY you are considering such a plan would be most helpful.
My father told me years ago that I could have saved so much money after I told him that I moved into a new apartment. I was criticized by family members for moving out years ago. But I haven't told my parents that I am considering moving back home.
If I move back home, I will save as much money as possible for a larger down payment on a house after my current job is over years from now.
Just to clarify. I rented apartments after moving back to my current city for a total of approximately 11 years (9 years 4 months of around $600/month apartments and 1 year 10 months of renting a cheaper apartment of $450/month). The total time was 11 years, NOT 20 years. Sorry for the confusion.
This still puts you in your 30's, no?
Your too old to be moving back in with your parents. I take it you don't have a girlfriend?
...selling the house would be harder than buying it. Not only do you have to put the house up for market, but if the economy is bad and not many people are buying, that will just make it harder to sell the house and the price of the house may have to go down. As I recall, I think that when you sell the house years later, you also have to pay the seller's agent fees as well as the commission for the buyer's agent.
Absolutely!! home appreciation is not a given and transaction costs can be substantial. Not only the realtor's fees substantial but some states have real estate excise taxes the seller must pay. Then you are at risk of a PITA neighbor. If you rent you can always move away but it isn't easy to escape a problem neighbor when you own a house. Honest, home ownership is not nirvana.
Never buy a house because of property tax deductions for mortgage interest and property taxes.
If it were me I would move into a cheaper apartment, put the extra 200 away each month. Set a goal for yourself of saving 10,000. Or find a higher paying more stable job, buy a 100k house and rent out the basement to help with your mortgage payment. May the force be with you!
My father told me years ago that I could have saved so much money after I told him that I moved into a new apartment. I was criticized by family members for moving out years ago. But I haven't told my parents that I am considering moving back home.
If I move back home, I will save as much money as possible for a larger down payment on a house after my current job is over years from now.
You have mentioned moving back home yet you have not talked to your parents about moving back into their home and if they will even allow you to move back home.
Also, I haven't seen any mention of you paying part of the financial upkeep and maintenance of your parents home, paying rent, part of the groceries, part of the utilities, etc.
Have you mentioned it and I've missed it or are you not going to pay rent, utilities etc. to your parents?
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