Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm 25, have about 130k saved, and make about 80k a year before taxes- And can use/save most of that.
Pretty decent, but the problem is houses in my area(outside Boston) is insane. Where I live now, most single story homes that would at all be to my standards for a purchase are 450-600, with the more ideal ones I'd actually be happy with are 800k-1.2, obviously with higher ones being closer to the city.
I can't decide if I should just be saving like a madman to afford my dream home, or buying a nice single story, and then later upgrading it.
My main concern about that however is that from what I've heard, upgrading houses is a crapshoot in terms of getting what you want/unreliable builders.
Appreciate any and all advice from this community.
1. Buy a house you can afford. Do not focus on dream house.
2. Get married to someone who also makes $80 K.
too young to want to marry lol. This thread is kind of to help me piece together what I can afford. In theory I could afford a very expensive house since I pay rent of 2300 currently and amass savings.
Remember, your $2300 for rent is your total housing cost (for the most part) but you can't equate that to a mortgage payment. For a home ownership, you will have your mortgage principle and interest, taxes, insurance, energy, repairs, maintenance, yard care, appliance replacement, roof replacement, it goes on and on. That's not meant to dissuade you but you'll want to keep that in mind. I suggest that you start with talking to a recommended lender. Ask around, get a recommendation, and go see that person. Explain it all and see what they have to say. You might talk to a few. The lender will explain it all and, if they don't, find another lender.
Start off by what a lot of people in New England have always done- buy a three family, live on the first floor, and rent out the other two units for $2300 each.
1. Buy a house you can afford. Do not focus on dream house.
^^This. Most people don't buy their "dream house" until later in life. Typically, as we grow older, our dreams change - I know mine have. Maybe your taste will change, maybe you'll relocate, and maybe when you do meet your potential spouse, he/she won't want to live there.
My husband and I bought a townhouse 5 1/2 years ago. This is not our dream house. However, we do like it, the mortgage payments are affordable, and when we go to sell it in 5-10 years, it will have a decent amount of equity for a down payment on our next house.
At your age, my advice would be to hold on to as much of that $130k as you possibly can. Put down the minimum down payment and have a mortgage that is affordable for you.
Off topic, but I'm curious as to how you have been able to save so much? $80k is a good salary but you're probably spending close to half your monthly net income on rent. Perhaps you don't have a lot of discretionary spending?
Don't buy your dream house and overspend on your first home, you never know what kind of neighbor problems you may encounter and be miserable when you can't sell.
^^This. Most people don't buy their "dream house" until later in life. Typically, as we grow older, our dreams change - I know mine have. Maybe your taste will change, maybe you'll relocate, and maybe when you do meet your potential spouse, he/she won't want to live there.
My husband and I bought a townhouse 5 1/2 years ago. This is not our dream house. However, we do like it, the mortgage payments are affordable, and when we go to sell it in 5-10 years, it will have a decent amount of equity for a down payment on our next house.
At your age, my advice would be to hold on to as much of that $130k as you possibly can. Put down the minimum down payment and have a mortgage that is affordable for you.
Off topic, but I'm curious as to how you have been able to save so much? $80k is a good salary but you're probably spending close to half your monthly net income on rent. Perhaps you don't have a lot of discretionary spending?
I don't really spend much. I am a good saver. I had 230k before certain expenses so saving up isn't hard to me and I have zero debt.
I'd buy a house that is convenient to your job and in an area with where vacancies are low for renters. A pricey home near a location with a lot of jobs doesn't usually become a bad choice if you decide to move. It will sell quick or be rented quick.
Then you're in a better position than many others......
I'd suggest taking heed to many of the other poster recommendations. At 25, it's difficult to know what your dream home will be in 10 years so start with something affordable that you can fix up to your taste. It's a crapshoot whether you will get all of the invested money back, but make the house what you want within reason and enjoy it until your needs change.
Buying a house is just the beginning. Maintaining one is a different ball of wax. We got a really good deal on our current house. We've lived there since 2009 and paid $155k for a 3 bed 2 bath brick rancher on .5 acres which was a pretty good deal in our area at the time. In 7 years we have....
Replaced the roof - $6,500
Replaced the HVAC - $6,000
Replaced the water heater - $500
Replaced the appliances - $6,000
Replaced the flooring - $1,800 (I did it all myself)
Upgraded all the fixtures and removed all the brass - $800
Repaired a ceiling leak in the garage (before the roof) - $400
Replaced the fence - $3,500
Replaced the garage door opener - $400
Painted the interior twice (changed colors) - $700
I estimate that we have spent around $26,600 on things outside of what it cost to purchase the home (and doesn't include a lot of small expenses like replacing a light switch, outlet cover, replacing door locks, repairing a hole in the wall from kids, etc.... If you add in the mortgage (includes property taxes and insurance) and utilities, we have spent over $137k in 7 years.
There will always be repairs to make, maintenance to do and other expenses regardless of the house.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
