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Home ownership can be fun, but maintenance can suck up all your free time so beware. Don't even START mowing your lawn. Instead of paying good money on a lawnmower, hire a lawn guy and free up your weekends forever. If you can't afford a lawn guy, cancel cable TV to save money and get the lawn guy instead!
I'd tell myself, SINK:
-- buy sooner
-- consider whether your lot has a hillside on it or not, flat lot is better
-- a 25K higher purchase price doesn't make much of a difference in a mortgage payment (so if the house you want is 25K more, don't settle. at that price difference -- hold out and wait for the house you want)
I'd have much more advice for a first time home buyer. But as for what I'd tell MYSELF looking back -- that's about it.
I've loved owning my home. It's worked out great.
Don't give in to the sellers' (retired couple where the husband had an overinflated opinion of his house) every demand. Don't be afraid to walk away just because you're getting married soon, need a place to live, can afford to buy a house, and this is the only one you've seen that you think is worth buying, so you really want to make the deal work. There is nothing wrong with renting for the first year or so if this deal falls through, even if you can buy now (especially with the upcoming housing market crash).
Be consciously aware of big ticket things that are nearing fixing/replacement: siding, roof, crumbling driveway - and use them as leverage during negotiation. (All have since needed to be done, and overall cost tens of thousands of dollars.)
Be cautious of buying an older house with no updates, even if things are perfectly functional and you personally don't care about the lack of updates. It will be a big turn off to potential buyers if you have an interest in selling and updates haven't been done. Thanks to HGTV, buyers are/will be more impressed by "updates" than all the money recently sunk into the big ticket things they won't have to worry about any time soon (see previous point).
In spite of the above: if you have to buy in 2005, you picked the right house. Still happy with the location and size, just wish I had an extra bedroom, garage stall, and a bigger/more scenic yard.
And what you want in 20 years will be even more radically different.
I'm an exception to that, apparently. Been in my house 13 years now, and no plans to move, ever. But then, I didn't have kids, either. So that means my life doesn't change as much over time as someone with kids would.
I was going to post the advice to move as few times in life as possible. If you figure 10% in costs every time you buy/sell, which is not an unreasonable amount, that adds up to a lot of money over a lifetime. If you move every 10 years of your adult life, that is potentially 5 or 6 moves. If the average home is $200k, that is over a hundred thousand dollars in closing costs. That isn't pocket change. And for those in higher priced areas, this number could easily be a quarter million over a lifetime. Add in the fact that the average homeowner actually owns for LESS than 10 years, and the number goes up even more.
So if you can stay put for 15 or more years each time, and maybe only move 2 or 3 times in your adult life, you can save a LOT of money.
I'm an exception to that, apparently. Been in my house 13 years now, and no plans to move, ever. But then, I didn't have kids, either. So that means my life doesn't change as much over time as someone with kids would.
I was going to post the advice to move as few times in life as possible. If you figure 10% in costs every time you buy/sell, which is not an unreasonable amount, that adds up to a lot of money over a lifetime. If you move every 10 years of your adult life, that is potentially 5 or 6 moves. If the average home is $200k, that is over a hundred thousand dollars in closing costs. That isn't pocket change. And for those in higher priced areas, this number could easily be a quarter million over a lifetime. Add in the fact that the average homeowner actually owns for LESS than 10 years, and the number goes up even more.
So if you can stay put for 15 or more years each time, and maybe only move 2 or 3 times in your adult life, you can save a LOT of money.
But renting a $1000 a month apartment for 10 years is like losing $120K, plus more because rents go up.
I bought my house in 2005, so I'd agree with the poster who would have cautioned against that. Houses in this area weren't outrageously expensive, but they haven't recovered from the crash, either.
Quote:
Originally Posted by statisticsnerd
1. Stay away from condos!!!!!
2. Don't buy a home unless you are married, have a family, and fully intend to settle down in an area for at least a decade. If you have kids, you should own a home since apartments are no place to raise kids.
3. Don't buy a home that is over 20 years old. The repair bills aren't worth it.
4. If you are single, keep renting cheap apartments, cook your own food, drive an old car, and stick what's left over in your 401k and IRA. Renting provides you with a lot of flexibility career-wise since you can easily move. A home is a ball and chain. That kind of goes with #2, wait until you are married and settled down before considering homeownership.
5. Never EVER listen to realtors who tell you that renting is "throwing money away" and that owning a home is an "investment." Stocks are investments. A home is just something you live in. You throw money away on realtor's commissions, HOA fees, maintenance costs, property taxes, insurance, etc. on a home and should you need to sell when the housing market stinks, you'll throw a ton of money away.
None of those five things, that's for sure.
When I bought my first house I was 27 and single, and the house was 100 years old. I sold it six years later for twice its value, and bought a house that was 60 years old that was $30,000 less, and the proceeds went toward retirement.
Home ownership may not be for you when you're young and single, an old house or a condo may not be your choice, but don't paint everyone with that same narrow minded brush.
Quote: Originally Posted by LoriNJ View Post
Can we get an AMEN!
And what you want in 20 years will be even more radically different.
Quote:
I'm an exception to that, apparently. Been in my house 13 years now, and no plans to move, ever. But then, I didn't have kids, either. So that means my life doesn't change as much over time as someone with kids would.
Another exception, who bought 13 years ago and is also single, no kids.
If I weren't relocating for retirement I could easily see this being my forever house.
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