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.
So I have a question for other home owners, real estate agents and anyone else that is in the same quandray as me. I work in a city where real estate is extremely expensive so I am renting for pretty cheap right now. I would like to eventually own but as other posters and people in real life have said, who wants a substantial bank note around their neck.
My philosophy is that housing should only be roughly 25% of your net income and in order to own a nice place near where I work it would be far more than that (unless of course I saved for a LONG time to put a huge amount down, but at that point you might as well just save a little longer and buy a home outright). Anyways I have alot of goals and activities that require money but I also want some nice garage space to engage in some other activities but where I am now that just tacks on more to the price tag of a home.
So a thought I had was buying land and building in an area that would normally be a nightmare commute but then just continuing to rent something cheap next to where I work. Yea it would be nice to buy a home next to where I work but best case is I would be completely house poor and worse case is I just flat out could not even afford it.
If I bought/built in an outlying area the costs would be substantially lower but I would also have the cost of rent in town as well (which would be cheaper than running my truck into the ground and all the gas money).
Though im not sure I could get real estate THAT much cheaper to also afford rent next to my work.
How do other people deal with this conundrum?
Just look every night for forclosures, etc. I always wonder who all these people are that are buying these homes at "market value". My area is a fairly small market and there are only so many corporate execs and a hand full of buisness owners who really flourished. Are there enough families where both spouses work 2 jobs to pay for these places?
btw I make pretty good money so its not like im working at kinkos trying to by a manhatten condo.
Perhaps its just my area and you either make the big break and get an exec job, be house poor or live in an appt. Just seems like there should be a way out without making yourself an indentured servent to the bank. Having a mortgage is ok but it should not be 75% of your net income.
I work in a city where real estate is extremely expensive so I am renting for pretty cheap right now.
That's odd. Usually if RE is expensive then ALL of it is expensive.
Quote:
My philosophy is that housing should only be roughly 25% of your net income
I agree, but that's objectively harder to manage in some areas and at some ages.
Quote:
I would like to eventually own but...
I also want some nice garage space
So a thought I had was buying land and building in an area that would normally be a
nightmare commute but then just continuing to rent something cheap next to where I work.
How do other people deal with this conundrum?
Most will share with others in similar circumstance.
Use their stability to get the mortgage on a too big house ...then rent out rooms.
Very often at an actual profit.
My philosophy is that housing should only be roughly 25% of your net income and in order to own a nice
How do other people deal with this conundrum?
Perhaps its just my area and you either make the big break and get an exec job, be house poor or live in an appt. Just seems like there should be a way out without making yourself an indentured servent to the bank. Having a mortgage is ok but it should not be 75% of your net income.
It sounds like you only want to spend 16% of your gross on housing. I'm in a high cost area, people can spend close to 40% of their gross, you will always be priced out unless you triple your income.
It sounds like you only want to spend 16% of your gross on housing. I'm in a high cost area, people can spend close to 40% of their gross, you will always be priced out unless you triple your income.
Well other than the fact that my area is starting to experience lay offs. I rent cheap because im in a less than desirable area, not ghetto but not ideal. Plus I keep cutting space down to keep my costs low so I can save and leverage my income. I talked to a straight shooter realtor and they said people are hunkered down because a lot of people DONT make a lot of money.
This isent exactly manhatten where Donald trumps live, the biggest earners will be a few CEO's of the satalite offices up here.
I spend about 16% now but am willing to go to 25% for a mortatge on the right property. But the right properties are far beyond 25%. The last resort is just to keep renting until I retire, then I will have a crap ton of money to retire early else where. I only spend about 12k a year on rent and the properties I like around here are close to a half million so it would take me a life time at 12k a year to reach half million PLUS interest and utilities.
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.
