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Old 10-28-2014, 10:34 AM
 
35,095 posts, read 51,001,042 times
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Quote:
Originally Posted by anonymous51 View Post
I have talked to friends, and I have asked for advice on websites, including this one. Most people told me to buy a house. I am not distraught over just how much I paid for rent. Mostly I am distraught about how much I have spent renting apartments over the next 11 years, and what I should do now after renting apartments for so long.

Are you prepared to not be able to put so much money aside each month like you currently do when you purchase a home?
Are you prepared to work on things in the home yourself when they break or hire someone to fix things for you?
Are you prepared to purchase lawn maintenance equipment and do all of that work or hire someone to do it for you?
Are you prepared for the additional taxes, insurance, utilities, and vehicle costs for repair, maintenance and gasoline since you will more than likely be commuting further than you are now?
Are you prepared to keep a larger home clean and organized or hire someone to come in and do it for you?

Do you really want to live with your parents again? I left about the time I was 13 or so, not legally but I was gone anyway and I will never live with my Mother again I do not care what the circumstances are.

If you are prepared to take over every aspect and responsibility of home ownership then by all means go purchase a home.
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Old 10-28-2014, 11:34 AM
 
6,599 posts, read 5,843,394 times
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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.
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Old 10-28-2014, 12:40 PM
 
Location: Portland, Oregon
10,987 posts, read 20,471,805 times
Reputation: 8261
In many cultures a single adult living with their parents is common but they pay their fair share of the household expenses. Assuming the parents think this is a great idea keep in mind the fact that your fair share may not decrease your expenses. In the American culture a 30 yo adult living with their parents causes others to wonder about the family dynamics.

Frankly I do not believe that buying a house is always a good financial decision, are you fully funding your IRA or 401K? There is a NY Times widget to help with the decision of should I buy or rent. Home ownership costs are not just a mortgage but insurance, property taxes, and maintenance - which can be significant such as when a roof needs replacing. Then there is the reality that the cost of selling a home should you need to move for employment purposes is much higher than breaking a lease.

If you want to save money you could find a cheaper apartment or decrease your commute expense by moving closer to your place of employment.
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Old 10-28-2014, 12:53 PM
 
Location: Over yonder a piece
4,267 posts, read 6,259,492 times
Reputation: 7133
You've been renting for 9 years and then another 11 years. Presuming you moved out at age 21, you are in your 40s. For heaven's sake, don't move in with your parents. That ship has sailed. The only reason I moved back in with my parents (at age 26) was to save money for the year leading up to my wedding.

Move into the cheaper apartment for $350/mo. Save the $100/month. Or find a $600/mo 2-bedroom and get a roommate (someone you know and get along with - not a stranger) so you only have to pay $300. Whatever you do, don't buy a house! Houses are not just the mortgage and property taxes. They are also landscaping costs and repairs on the house and appliances, which can be expensive when your roof gets a leak and the whole thing needs to get replaced to the tune of several thousand dollars you don't have.

When you rent, you have virtually no property tax, no landscaping costs and no repairs because your landlord pays for it.

Consider finding a second job and put that money away in savings - do not spend a dime of it. This way you have a small emergency fund in case you lose your main job (if that is truly a concern in your field).
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Old 10-28-2014, 01:37 PM
 
3,657 posts, read 3,264,754 times
Reputation: 7028
Quote:
Originally Posted by anonymous51 View Post
I currently live in a one bedroom apartment for $450/month, and I make enough money that I can put aside a good amount of money left over in savings every month even after I pay for rent, cable, and utilities. I can move into a one bedroom for as low as $350/month. There is another apartment ($399/month) where I can park in the parking garage (for an additional $35/month). As all of you already know, I rented apartments for 11 years and spent around $75,000 in rent over the years, because I made the mistake of renting $600/month apartments for the first 9 1/2 years I rented apartments in my current city. I started renting my current apartment in January 2013, because it was significantly cheaper. I almost bought a house, but the home inspection showed problems in the house including structural foundation issues, valve problems in the water heater, and termites. Needless to say, I walked away from that house. At this point, I realized that if I ever buy a decent quality house in this day and age, that I should buy a house that is worth at least $100,000. I don't know how long my full-time job will be around, so I am hesitant to take out a 15 year or 30 year mortgage on a $100,000 house. What do all of you think I should do? Should I move back home to my parents' house or should I move into a cheaper apartment? Should I live with a roommate? Should I buy a house? Please help me. I have been distraught over this issue for weeks. I have been overwhelmed with concern. Thank you in advance for your advice and help in this matter.
Renting isn't the best option long-term, because with renting you don't get the tax advantage of a mortgage and more importantly you don't build any equity in renting. Also, when you have a mortgage you can qualify for HELOC which is another source for a loan if needed in an emergency. If you fear unemployment, a HELOC is a great thing to have, because the interest rate is lower than credit cards.

Buy you only consider buying a house if you think you are going to stay in the house for at least a few years. A $100K home isn't an expensive home, so the costs to get in and out of that home is going to be low cost. If you were buying a $500K home with the intention of moving in 2-3 years, that wouldn't be a very good plan, better to rent in most situations. But $100K home is a safer situation.

As for the mortgage, get a 30-year loan. The payments will be lower each month. You can also set aside additional principal payments and pay the loan off sooner, thus turning it into a 15 year loan if you wish.
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Old 10-28-2014, 01:40 PM
 
3,657 posts, read 3,264,754 times
Reputation: 7028
Quote:
Originally Posted by anonymous51 View Post
I have talked to friends, and I have asked for advice on websites, including this one. Most people told me to buy a house. I am not distraught over just how much I paid for rent. Mostly I am distraught about how much I have spent renting apartments over the next 11 years, and what I should do now after renting apartments for so long.
Money can always be replaced. Don't worry about money spent in the past, you can't do anything about it anyway. Just focus on the future.
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Old 10-28-2014, 01:52 PM
 
847 posts, read 1,345,243 times
Reputation: 762
Quote:
Originally Posted by Girl View Post
You've been renting for 9 years and then another 11 years. Presuming you moved out at age 21, you are in your 40s. For heaven's sake, don't move in with your parents. That ship has sailed. The only reason I moved back in with my parents (at age 26) was to save money for the year leading up to my wedding.

Move into the cheaper apartment for $350/mo. Save the $100/month. Or find a $600/mo 2-bedroom and get a roommate (someone you know and get along with - not a stranger) so you only have to pay $300. Whatever you do, don't buy a house! Houses are not just the mortgage and property taxes. They are also landscaping costs and repairs on the house and appliances, which can be expensive when your roof gets a leak and the whole thing needs to get replaced to the tune of several thousand dollars you don't have.

When you rent, you have virtually no property tax, no landscaping costs and no repairs because your landlord pays for it.

Consider finding a second job and put that money away in savings - do not spend a dime of it. This way you have a small emergency fund in case you lose your main job (if that is truly a concern in your field).

My thoughts exactly. No adult in their 30's or 40's have any business moving back in with their parents when they have the means to support themselves.
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Old 10-28-2014, 02:11 PM
 
6,599 posts, read 5,843,394 times
Reputation: 16788
Quote:
Originally Posted by Girl View Post
You've been renting for 9 years and then another 11 years. Presuming you moved out at age 21, you are in your 40s. For heaven's sake, don't move in with your parents. That ship has sailed. The only reason I moved back in with my parents (at age 26) was to save money for the year leading up to my wedding.

Move into the cheaper apartment for $350/mo. Save the $100/month. Or find a $600/mo 2-bedroom and get a roommate (someone you know and get along with - not a stranger) so you only have to pay $300. Whatever you do, don't buy a house! Houses are not just the mortgage and property taxes. They are also landscaping costs and repairs on the house and appliances, which can be expensive when your roof gets a leak and the whole thing needs to get replaced to the tune of several thousand dollars you don't have.

When you rent, you have virtually no property tax, no landscaping costs and no repairs because your landlord pays for it.

Consider finding a second job and put that money away in savings - do not spend a dime of it. This way you have a small emergency fund in case you lose your main job (if that is truly a concern in your field).
Um, no... Unless your landlord is giving you a huge discount of the goodness of their heart, you're paying for every penny of those taxes and repairs, just not directly. And you're paying for their mortgage.

I do agree there's a cost of your time involved in owning; you're going to be fixing stuff, or spending time on the phone calling repair people.

I also agree about a second job to augment savings. More people should do it, especially when there's so much seasonal work around the holidays.

Also: don't accessorize. Use last year's phone; if yours broke, then find one used or refurbished on ebay rather than buy the shiniest new one that costs $700 over two years of a contract. If you move in with the parents, do a family plan. Don't buy cable TV and put that $60/month into savings instead. It all adds up.
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Old 10-28-2014, 02:24 PM
 
Location: Over yonder a piece
4,267 posts, read 6,259,492 times
Reputation: 7133
Quote:
Originally Posted by blisterpeanuts View Post
Um, no... Unless your landlord is giving you a huge discount of the goodness of their heart, you're paying for every penny of those taxes and repairs, just not directly. And you're paying for their mortgage.
That's a given. I didn't think that needed to be explained. But it means the OP will not have additional out of pocket expenses to keep the place up like he would with a house. Especially if he's in an apartment.
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Old 10-28-2014, 03:22 PM
 
Location: somewhere in the Midwest
625 posts, read 948,724 times
Reputation: 331
Quote:
Originally Posted by Girl View Post
You've been renting for 9 years and then another 11 years. Presuming you moved out at age 21, you are in your 40s. For heaven's sake, don't move in with your parents. That ship has sailed. The only reason I moved back in with my parents (at age 26) was to save money for the year leading up to my wedding.

Move into the cheaper apartment for $350/mo. Save the $100/month. Or find a $600/mo 2-bedroom and get a roommate (someone you know and get along with - not a stranger) so you only have to pay $300. Whatever you do, don't buy a house! Houses are not just the mortgage and property taxes. They are also landscaping costs and repairs on the house and appliances, which can be expensive when your roof gets a leak and the whole thing needs to get replaced to the tune of several thousand dollars you don't have.

When you rent, you have virtually no property tax, no landscaping costs and no repairs because your landlord pays for it.

Consider finding a second job and put that money away in savings - do not spend a dime of it. This way you have a small emergency fund in case you lose your main job (if that is truly a concern in your field).

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.

Last edited by anonymous51; 10-28-2014 at 03:31 PM..
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