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I'm looking for some feedback and advice regarding my current situation. I'm 23 years old, currently living in North NJ and looking to purchase a starter home. Ideally, i would love to buy a home up here but with my budget i'll more than likely not be living in a good neighborhood. While I do not have any issues with that in terms of safety and other things I want my house to appreciate and the neighborhood be somewhat appealing in the near future (5-7 years).
I have 40K I'm looking to put down and I want to purchase the house for ~170-180 thousand depending on condition and other things.
What would you suggest the first thing I do is? I've been monitoring zillow, nj mls and other websites but the houses within that budget usually fall in an area i know will not get better in the near future. I'm very familiar with the urban areas in NJ, therefore i know the good/bad spots and do not lump a whole city like Irvington or East orange as crime-ridden.
Do you think I should consult with an agent? Also, do you have any recommendations with agents in the essex, hudson, union county area? I'm also highly interested in foreclosures but have found conflicting information. If anyone can elaborate or send links for that process in NJ, that would be great. Thank you!!
If you're serious setup a buyer's meeting with an agent to discuss your plans and they can tell you what is feasible. Then get pre-qualified on a mortgage. Maybe start visiting some open houses on your own first.
I bought my first place at 23 as well. Just had two regrets. First that I did not investigate the tax situation in the area, which were high compared to neighboring areas yet gov't services were not great. But the big one was that I felt trapped(having bought just before bubble went boom). It wasn't a big impact on the $105k starter house, but I dealt with a new job's 1hr commute rather than lose money on selling the house. Ended up selling it 10 years later for $107k and having had put around $20k in updates and repairs to it. I would have been better off renting just a couple more years until I was more settled on my career location.
In buying a house the value is in location, location, then condition. You really need to know the neighborhoods you are considering. A great place to start is to look at school test scores. The better the test results the stronger the home market. The next factor is to consider the maintenance needs of the home you are considering. A new roof is expensive. Look for dry-rot, mold, plumbing and water (as in drainage) issues. If the neighborhood has 3 bedroom homes and what you are considering has 2 bedrooms it might not be the best choice. On the other-hand if the neighborhood is in high demand even a one-bedroom house that may need repairs could be a good choice.
My concern is how long you would live in the house. You are very young and usually young people marry and as the previous poster mentions jobs do change. Do you see yourself living in the house you would purchase more than 7 years? It takes that long, usually, to accumulate enough equity to make the purchase viable.
On the other hand mortgage interest rates are at record lows.
You are 23 ..... DONT BUY A HOME. I don't know your specifics but one of the biggest things you have going for you is that you can move where ever if needed. What if you get a dream job offered in a different state? Unless you think you are going to be in the same place for a LONG time (>6 years) I would stick to renting.
Every person I know under the age of 35 hates being a homeowner (condos aren't as bad) due to spending one day each weekend tending to the yards or other maintenance.
Every person I know under the age of 35 hates being a homeowner (condos aren't as bad) due to spending one day each weekend tending to the yards or other maintenance.
That's funny, I'm a year from turning 35 and I purchased my house at 26. I've never once regretted it. It really depends on the individual. My now wife and I were never really nomads and were happy settling into our house at a young age. She was only 24 at the time, so only a year older than the OP.
I would personally recommend that he saves until he can buy in an area he actually wants to live in though. The house would be in a desirable area whether he goes through with selling in a few years or decides to stay.
You are 23 ..... DONT BUY A HOME. I don't know your specifics but one of the biggest things you have going for you is that you can move where ever if needed. What if you get a dream job offered in a different state? Unless you think you are going to be in the same place for a LONG time (>6 years) I would stick to renting.
Every person I know under the age of 35 hates being a homeowner (condos aren't as bad) due to spending one day each weekend tending to the yards or other maintenance.
I bought my house at 29 and never regretted it.
OP, I'll second what someone else said, location is very important. I would stay away from homes in bad areas even if they're cheap.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It seems that things never change. My wife and I were in the same situation at ages 23/22 in the 1970s, looking at homes to buy in Oakland, CA that we could afford but were in areas a bit too close to the sketchy parts. We simply waited and saved for another year or so until we had enough down payment for 10% down on a home in a nice, safe city about 20 miles southeast.
I purchased my first condo at 21 (in NYC) and lived in it until I married at 27. Sure, it was tough being young and juggling a mortgage but I knew early on that I didn't want to pay rent and wanted to own. I sold said condo at a nice profit, too - netting far more money than if I had spent six years renting.
When you say "home" are you talking about SFHs only or are you including condos? Maybe you can find a nice apartment-style condo like I did? You don't have to buy an actual home to have the homeownership experience and benefits. In fact, for a young person, condo living was perfect because I wasn't responsible for shoveling. Buying a condo may get you into better neighborhoods. I wouldn't buy in a "bad" neighborhood praying for gentrification. While I do look to the future, you're going to have to deal with the present. I'd buy in the better areas that you can afford.
Location: In a little house on the prairie - literally
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Quote:
Originally Posted by BizrulesSD
You are 23 ..... DONT BUY A HOME. I don't know your specifics but one of the biggest things you have going for you is that you can move where ever if needed. What if you get a dream job offered in a different state? Unless you think you are going to be in the same place for a LONG time (>6 years) I would stick to renting.
Every person I know under the age of 35 hates being a homeowner (condos aren't as bad) due to spending one day each weekend tending to the yards or other maintenance.
What bad advice!
I bought my first house at 23, my daughter at 24, and my son bought his first at 21, right after graduation from college. We are all glad we did. I always encourage my kids to buy as early as possible.
Renting makes sense for some, but for most buying is the better financial option.
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