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Normally, it's young couples who go out on limb to buy a house. They're planning to have children so they need the room, plus they're in the earlier stages of their careers so they can count on promotions and their income to rise and make it easier to meet the mortgage payments. And they have the 30 years to pay it off.
But does anyone know someone who was middle aged when they tried to buy their first house with a big mortgage?
My wife and I are a middle-aged couple. We met too late in life to have children of our own. My wife has one daughter from her previous marriage. Her daughter is almost 19 but with a bit of a learning disability and will probably be living with us through her twenties until she gets married. This is my first marriage and I have no children.
It's always been my wife's dream to have a little house in Middle Village. Anyway, I really want with all my heart to give her that dream, especially as buying a house is really the only big married couple event we can do together, not being able to have a child. But in order for her daughter to be able to get around, we are really limited to Middle Village and even a little row house there costs a fortune. We'd have to go into the kind of debt and payments cycle couples go into when they're starting out, not when they would normally be starting to really pay down the house or even selling it to downsize.
Anyway, we found a nice house, but like all nice houses it will be a stretch for us to pay. It's a very nice house in the neighborhood she loves. My heart is telling me to go for it. But my head is hesitating for the reasons I've already written, and I'm thinking we might need to painfully let this go as another dream we can't have and to settle for a coop in a nearby, not as bucolic neighborhood, and save for retirement. A two bedroom will be tight with a grown daughter and pretty hard to find since my wife also happens to have one small dog already and another she might need to take in, but that's a different story.
So, my questions is, does anyone know middle-aged couple who decided to take on a big mortgage and the upkeep of a house? How did it work out? Were they happy they did it or was it a regret?
You should consider purchasing a 2 family instead (if you weren't considering that), the extra income will help offset the mortgage and as time goes on, usually rents go up and your mortgage payment remains the same, so maybe in 10 years the rent will pay most of your mortgage.
Houses also appreciate better than coop, so when you want to retire and sell, you will probably make a better profit. Coops also have maintenance fees which can be a little high imo.
Regarding if you will be happy, it's all an individual preference and there is no one fit's all answer here. You have to evaluate what you can afford, what makes you happier. I think if you can afford it and you obviously prefer a house, go for it. Also, don't shy away from looking nearby, like Maspeth for example where it might be slightly cheaper, or even the woodside area that border Middle Village, or Glendale, just something to keep in mind in case you get more bang for your buck in other areas.
You should consider purchasing a 2 family instead (if you weren't considering that), the extra income will help offset the mortgage and as time goes on, usually rents go up and your mortgage payment remains the same, so maybe in 10 years the rent will pay most of your mortgage.
Houses also appreciate better than coop, so when you want to retire and sell, you will probably make a better profit. Coops also have maintenance fees which can be a little high imo.
Regarding if you will be happy, it's all an individual preference and there is no one fit's all answer here. You have to evaluate what you can afford, what makes you happier. I think if you can afford it and you obviously prefer a house, go for it. Also, don't shy away from looking nearby, like Maspeth for example where it might be slightly cheaper, or even the woodside area that border Middle Village, or Glendale, just something to keep in mind in case you get more bang for your buck in other areas.
Thanks, do you need to be particularly handy to be a two-family owner? I've lived in apartments my whole life and don't know how to fix anything. I guess it's impossible to predict whether having to call professionals in to fix problems tenants may have will leave enough left over for the rent to be profitable enough?
We definitely can't afford a two family in Middle Village. I've been trying to expand our search area for quite a while, but my wife insists on only Middle Village. She says places like Glendale and Maspeth are much more inaccessible and impossible for her daughter to get around in than Middle Village, and not as solid neighborhoods
Thanks for your post. It makes lots of sense, if I could only persuade my wife.
Any reason that they shouldn't try for a 3 family rather than a 2?
I have to admit even a two-family sounds a little daunting, let alone a three. I'm no handyman, and I'd be frightened to take on the kind of mortgage you'd need for a three family. Wouldn't have the down payment and safety fund for it, either.
Thanks, do you need to be particularly handy to be a two-family owner? I've lived in apartments my whole life and don't know how to fix anything. I guess it's impossible to predict whether having to call professionals in to fix problems tenants may have will leave enough left over for the rent to be profitable enough?
We definitely can't afford a two family in Middle Village. I've been trying to expand our search area for quite a while, but my wife insists on only Middle Village. She says places like Glendale and Maspeth are much more inaccessible and impossible for her daughter to get around in than Middle Village, and not as solid neighborhoods
Thanks for your post. It makes lots of sense, if I could only persuade my wife.
You can be a homeowner and not know how to fix anything. My father is the least handiest person I know and he bought a house a long time ago with tenants. You just need a plumber/electrician you trust for issues that might come up (which could be once a year or less if the house is in good shape). The boiler you get a service contract for maybe $200 a year that get's you covered. Then a spackler/sheetrocker if you need to fix walls. Painting I'm sure you can do, Things like a roof, windows, sidewalks, etc... those are major and best left to bigger contractors.
Good luck, keep your eyes peeled and you might come across something good. Check John O'kane at o'kane realty, I think he has some solid deals sometimes, plus he's an honest guy that can help answer your questions
Did you know how to fix cars before you got your driver's license and/or buy a car? Probably not because you know you can take it to a mechanic if anything breaks. So goes with a house. You do not need a Bob Villa know how in order to properly maintain a multifamily house. But what you do need is a lot of common sense. There are tons of information online and books that is available to you to educate yourself about owning a single family house or a multifamily house.
Also there are millions of middle aged people that are buying homes. However be smart and don't over stretch yourself financially. After the crash, the Gov't implemented what they call QM standards where QM stands for Qualified Mortgage. Basically, it is the ability of the borrower to pay the mortgage back. Banks will no longer allow you to stretch yourself like they did before the crash. In order words they want bigger down payments.
So you either have to save up for the down payment or tap your 401K if you have one. But back to your question, the people I know who bought houses in their middle ages, as far as I can tell all are doing fine. Granted most of them have reserves they can tap into in case anything goes wrong with their property. Some downsized by selling their bigger house then bought a smaller one. Most of them have mortgages on the homes but its not 100% leveraged. They all have equity in their homes.
I don't know if this helps you or not but you need to sit down and plan it out. Take the emotion out of it and let the numbers tell you if you can afford to buy a house or not.
Normally, it's young couples who go out on limb to buy a house. They're planning to have children so they need the room, plus they're in the earlier stages of their careers so they can count on promotions and their income to rise and make it easier to meet the mortgage payments. And they have the 30 years to pay it off.
But does anyone know someone who was middle aged when they tried to buy their first house with a big mortgage?
My wife and I are a middle-aged couple. We met too late in life to have children of our own. My wife has one daughter from her previous marriage. Her daughter is almost 19 but with a bit of a learning disability and will probably be living with us through her twenties until she gets married. This is my first marriage and I have no children.
It's always been my wife's dream to have a little house in Middle Village. Anyway, I really want with all my heart to give her that dream, especially as buying a house is really the only big married couple event we can do together, not being able to have a child. But in order for her daughter to be able to get around, we are really limited to Middle Village and even a little row house there costs a fortune. We'd have to go into the kind of debt and payments cycle couples go into when they're starting out, not when they would normally be starting to really pay down the house or even selling it to downsize.
Anyway, we found a nice house, but like all nice houses it will be a stretch for us to pay. It's a very nice house in the neighborhood she loves. My heart is telling me to go for it. But my head is hesitating for the reasons I've already written, and I'm thinking we might need to painfully let this go as another dream we can't have and to settle for a coop in a nearby, not as bucolic neighborhood, and save for retirement. A two bedroom will be tight with a grown daughter and pretty hard to find since my wife also happens to have one small dog already and another she might need to take in, but that's a different story.
So, my questions is, does anyone know middle-aged couple who decided to take on a big mortgage and the upkeep of a house? How did it work out? Were they happy they did it or was it a regret?
lots of folks take mortgages late in life. i would stay away from a two or more family unless you want to take on the headache of tenants at this stage and you have deep pockets to cover the loss of rent, not if but when things go wrong as a landlord as they usually do at some point.
if you have a two family and divorce ,illness or job loss strike your tenant as they typically get a landlord at some point you will have a total loss of income posssibly for months until it is resolved.
while the odds are the home will cost you more upfront then renting unless you have the knowledge to invest elsewhere and the strong discipline to do so you will do better buying.
homeownership's real value is not in what the value of the home is 99% of the time.
its value is it allows many to retire on far less income down the road because it can be a pretty good cost cutter.
retirement studies show over and over what allowed most folks to retire is the lower costs of ownership once the home is paid for.
i like renting and investing elsewhere and have come out much farther ahead by doing so then had i tied up that money in the house. but like i said unless you have the knowledge and discipline to do so go for the house. it is a better lifetyle and may cut costs for you down the road allowing you to retire on a smaller income..
in our case as a renter my investing is giving me a higher income as i approach retirement but with higher housing costs.
Last edited by mathjak107; 02-21-2014 at 03:57 AM..
I would only buy something that you feel that you can comfortably afford. If you really can't afford Middle Village, and that is the only place that your wife will consider, then I would probably continue to rent.
If you can convince her to look in other areas, I'd try to buy something with a 15 year mortgage instead of a 30 year. I'd also suggest the 2-3 family route. It does help to offset the cost of owning a home.
Also there are millions of middle aged people that are buying homes. However be smart and don't over stretch yourself financially. After the crash, the Gov't implemented what they call QM standards where QM stands for Qualified Mortgage. Basically, it is the ability of the borrower to pay the mortgage back. Banks will no longer allow you to stretch yourself like they did before the crash. In order words they want bigger down payments.
So you either have to save up for the down payment or tap your 401K if you have one. But back to your question, the people I know who bought houses in their middle ages, as far as I can tell all are doing fine. Granted most of them have reserves they can tap into in case anything goes wrong with their property. Some downsized by selling their bigger house then bought a smaller one. Most of them have mortgages on the homes but its not 100% leveraged. They all have equity in their homes.
I don't know if this helps you or not but you need to sit down and plan it out. Take the emotion out of it and let the numbers tell you if you can afford to buy a house or not.
Thanks.
When you say the middle-aged purchasers you know all have equity in their homes, did they put down larger than 20% to initially buy the house? I have 20% for the downpayment and would be doing a 30-year mortgage. I wouldn't be able to put down more than that. And then the payments themselves seem pretty high for us, and we're pretty much set in our careers, with no major salary increases or promotions likely. Single families homes are the only neighborhood option ofr us, so we'll have no income from the house itself.
Anyway, bottom line, I'm just asking if the midle-aged purchasers you are aware of put down just 20% and took out 30 years, or did they put down more than that and were able to do 15 years?
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