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Thread: The "Looking to become a homeowner" Thread

  1. #1
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    The "Looking to become a homeowner" Thread

    So here I am, now officially working at my big boy job (well, today was my first day). I want to move out of the parents house, and I am left with a few options. Rent or buy.


    I have never lived outside the parents nest egg of home etc and this is going to be a big leap. I don't like frivolously spending money without having some sort of ROI.


    I know SLM had that massive thread of when he was house searching, I would just like to point out that I am just looking and am open to all CONSTRUCTIVE criticism.






    Thoughts and Opinions?

  2. #2
    THE KING IN THE NORTH! TheBenior's Avatar
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    Unless you're sure that you're going to be where you settle for living and work for at least several years, I'd rent for a bit. Various fees and costs wiped out about 10% of my home seller's cut of the house I bought.

    Of course, the sound financial thing to do would be to live with your parents longer to save up more money (houses always need something), but renting isn't throwing money away, it's paying for shelter, and compared to owning, allows mobility. It may have been a historically unique situation, but I'm certainly glad I didn't buy when most of my early 30s cohorts did. So many of them are stuck with properties they're still upside down or are rebuilding their credit from strategic foreclosures. OTOH, I wish I'd bought a year or two earlier, as lack of decent supply is exerting upward pressure on prices locally (though still way off 2005-2006 peaks in all but a few very hot neighborhoods).

    I was actually telling Janelle the other day that I wouldn't have been happy moving to the suburban far NW side of Chicago in my mid-20s instead of living centrally like I did for a while (where I definitely can't afford a detached single family house).

  3. #3
    mAdminstrator Random's Avatar
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    1. Be very realistic with your budgeting.
    2. Keep commute distances and shopping distances in your head as you look--cheap housing doesn't help you much if you're spoending the difference in gas.
    Whoomah!

  4. #4
    Corvette Enthusiast Kchrpm's Avatar
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    1) Get a garage
    2) Get a 2 car garage
    3) Get an oversized 2 car garage
    4) etc
    Get that weak shit off my track

  5. #5
    Senior Member Leon's Avatar
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    If you can, stay with your folks whilst building up a deposit.

    You save a lot in the end with more deposit paid.

  6. #6
    Senior Member G'day Mate's Avatar
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    Sponge for a bit and then, if possible, live within walking distance of your local supermarket and riding distance of your work

  7. #7
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    Start by paying your parents some rent so you get used to that part. It'll make it easier for them when you stay longer too.
    Save a third or more of your gross to get your deposit built up.
    Fix your credit.
    Read SLM's thread for ideas.

  8. #8
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    Yes, if u gonna pay rent, pay your folks! At least offer to pay, I'm sure parents would be happy to let you stick around for a while for free... Point is you need to save up for a down payment.

    And just buy whatever you can afford at the moment and don't worry about market tanking. Just don't buy around neighborhoods where you know are heavily dependent on 1 company... Should that company relocate, you don't want to be in a ghost town!

    IMHO, in normal neighborhoods, it's only natural that housing prices would go up... Just as rent and everything else go up.

  9. #9
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    Quote Originally Posted by neanderthal View Post
    Start by paying your parents some rent so you get used to that part. It'll make it easier for them when you stay longer too.
    Save a third or more of your gross to get your deposit built up.
    Fix your credit.
    Read SLM's thread for ideas.

    Credit is not an issue at all.







    All sound points guys.

  10. #10
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    No really good answers there. My personal advice is suckle the parental teet as long as possible, then rent for a while. Home ownership can quickly become a full time job, and you really need a solid financial cushion to go down that road. Rent is cost control - you live there and you pay a small monthly premium for someone to handle everything. When it's your place and the AC fails or the subfloor rots or the roof blows off, that comes directly out of your pocket. I know way too many people who have emptied their bank to squeeze into a house and then end up getting murdered when something unexpected happens. I wouldn't go down that road. There is no shame in renting, and moreover it really helps you slip into the mindset of taking care of a place solo without any financial responsibility in doing it. I think there are a lot of valuable lessons to be learned while doing time in a rental. I highly recommend it.

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