Buying my first home
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As a rule of thumb your housing payments should not exceed 25% of your gross monthly pay. If you push harder, you're setting yourself up for a fall. What happens if the roof is blown off in a storm, your car suddenly needs brakes and tires at the same time, your kid gets in a fight and needs dental surgery, or that great job suddenly has too many people doing it? Unexpected things happen to all of us, and if you're stretched to your limit based on normal expenditures, you're going to lose the game. Don't let yourself get into any situation that prevents you from putting away 10% of your gross each month in a savings account to cover just such emergencies. Will Build Nuclear Missile For Food - No Target Too Small
Roger Wright wrote: Don't let yourself get into any situation that prevents you from putting away 10% of your gross each month in a savings account to cover just such emergencies. For years, I lived paycheck to paycheck. A couple of months ago, I started putting about 10% of my gross into a new saving acct (automatically, so I never see it). I don't really notice it's not there now unless I do something stupid (like last week when I bought an xbox and a new cell phone in a single night), and I now know I've got a comfortable lump of cash in case of emergency. In other words, I'd heartily recommend everyone do it. :)
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I am in the process of looking for my first home. I've always had a liking of larger, older houses. In order to get an older house that has been maintained and in a decent neighborhood, generally you have to spend a larger sum of money. If I go after the house I want, after paying the mortgage, expenses, etc, I may have $100 left over (this is with food, entertainment, everything factored in). So, the delema is whether to go for the house I have always dreamed of, or to stay pragmatic, buy a smaller house, and hope to buy that "dream house" later. Any insight to this situation would be appreciated. Or if you have advice about general home buying (sites, references, etc), I'd love to hear those also. Thanks everyone! Jim QTExtender - The OFFICIAL addon for QuoteTracker.
AAntix wrote: I may have $100 left That's not much for increases in Gas prices, increases in insurance, kids, wives (or signifigant others), kids, wives, medical expenses, home repairs, kids, wives, savings, gifts for relatives at holidays, wives, kids, etc. AAntix wrote: everything factored in Somehow, I doubt it. My wife and I have gone through some difficult times financially. One of the things I learned the hard way is that so-called budgets are usually nothing more than pipe dreams based on overly optimistic thoughts. I maybe wrong, but I would strongly suggest that you re-review your budget an make sure you factored in things like car inspections, taxes, registration, medical co-pays, life insurance, bank fees, books (the list just keeps going, doesn't it?). AAntix wrote: stay pragmatic Again, I don't know all of your details, but a house with a smaller payment that is in a good location can bring as much enjoyment to most people as a larger house. I would look for your ideal location and find ahouse that fits. Just my 2 cents.
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Roger Wright wrote: Don't let yourself get into any situation that prevents you from putting away 10% of your gross each month in a savings account to cover just such emergencies. For years, I lived paycheck to paycheck. A couple of months ago, I started putting about 10% of my gross into a new saving acct (automatically, so I never see it). I don't really notice it's not there now unless I do something stupid (like last week when I bought an xbox and a new cell phone in a single night), and I now know I've got a comfortable lump of cash in case of emergency. In other words, I'd heartily recommend everyone do it. :)
A very wise step, Jeremy, and one that made an immigrant friend into a millionaire before he turned 40 (with slight modifications). Will Build Nuclear Missile For Food - No Target Too Small
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I am in the process of looking for my first home. I've always had a liking of larger, older houses. In order to get an older house that has been maintained and in a decent neighborhood, generally you have to spend a larger sum of money. If I go after the house I want, after paying the mortgage, expenses, etc, I may have $100 left over (this is with food, entertainment, everything factored in). So, the delema is whether to go for the house I have always dreamed of, or to stay pragmatic, buy a smaller house, and hope to buy that "dream house" later. Any insight to this situation would be appreciated. Or if you have advice about general home buying (sites, references, etc), I'd love to hear those also. Thanks everyone! Jim QTExtender - The OFFICIAL addon for QuoteTracker.
Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. Jim QTExtender - The OFFICIAL addon for QuoteTracker.
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Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. Jim QTExtender - The OFFICIAL addon for QuoteTracker.
AAntix wrote: Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. don't take it that way! Just don't go for the gusto the first time through. Use the first house as a learning experience, so this way you will __really__ know what you want in your _dream_ house. There's so many things i've learned in the 3 yrs ive had my house that i'd never thought important. (hell, i never thought of it at all) I mean it's like all the little things... like toilets with cheap plastic handdles and levers vs. good quality brass ones. It's the 60W light bulb they put in the garage that I decided to replace with a commercial pair of 110W 8 foot flourescents ( :cool: ), it's the crappy wiring job I discovered on the telephone system months after the warrenty expired, it's the fan they used in the HVAC blower, it's the cheap heating/cooling unit itself, it's the plumbing, the electric, the CAT5 (most important of course), it's all those little things that you dont realize the first time through. Remember, you never think about things you don't think about! ~Nitron.
ññòòïðïðB A
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I am in the process of looking for my first home. I've always had a liking of larger, older houses. In order to get an older house that has been maintained and in a decent neighborhood, generally you have to spend a larger sum of money. If I go after the house I want, after paying the mortgage, expenses, etc, I may have $100 left over (this is with food, entertainment, everything factored in). So, the delema is whether to go for the house I have always dreamed of, or to stay pragmatic, buy a smaller house, and hope to buy that "dream house" later. Any insight to this situation would be appreciated. Or if you have advice about general home buying (sites, references, etc), I'd love to hear those also. Thanks everyone! Jim QTExtender - The OFFICIAL addon for QuoteTracker.
First off I'll say you're wise in looking for real-estate... in many areas, a mortage is cheaper than rent (or at least comparable), and you at least build equity in your home instead of flushing money down the toilet. I've now bought twice (first a condo, then an older home), and in my rambling experiences, this is what I've found: :bob: An easy way to find a real-estate agent is to find a house you really like, figure out who's listing it, and go with either that person or somebody from their same group. :bob: You can get some good deals on older houses if you look around, are patient, and are willing to do some work. For instance, I got mine at a great price becuase the owners wanted to sell quickly, and while a lot of it has been renovated (new roof, etc.) it had no central air conditioning, needed painting, etc. You could also go for a real fixer-uper, knowingn you'll have to put some time and money into it, but on the other hand you get to renovate it so it's just what you want. :bob: Make sure you get a home inspection before you buy. But don't put much stock in the termite inspection - you often can't really tell if there are termites without ripping out wallboard and checking the studs. :bob: As others have said, be realistic in what you can bite off. If you can find something close to what you're paying in rent now (taking into account the fact you'll pay property tax and insurane on top of your mortgate), you're golden. If you can swing it, go for a 15-year, you'll save thousands of dollars in the long run, but from what you say it sounds like you probably won't have the financial abilities to do that. :bob: As for lot size, again, be realistic. A big yard sure is nice, but do you have the time and energy to maintain it? Mowing gets old. Shovelling snow off of a long driveway gets old, too. But for many people (including me) it's worth it. Trees sure are nice, too, but frequently require trimming and maintenance, especially if they are close to the house. :bob: And of course, take into account location! If you think you'll re-sell in a few years, make sure you buy in a sellable location (e.g., not in the slums.) Your commute to work is an issue too... having to drive long distances, or wait an hour in stop-and-go-traffic gets old and expensive. Anyway, good luck in your quest! Remember, even if you win the rat race, you're still a rat.
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AAntix wrote: Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. don't take it that way! Just don't go for the gusto the first time through. Use the first house as a learning experience, so this way you will __really__ know what you want in your _dream_ house. There's so many things i've learned in the 3 yrs ive had my house that i'd never thought important. (hell, i never thought of it at all) I mean it's like all the little things... like toilets with cheap plastic handdles and levers vs. good quality brass ones. It's the 60W light bulb they put in the garage that I decided to replace with a commercial pair of 110W 8 foot flourescents ( :cool: ), it's the crappy wiring job I discovered on the telephone system months after the warrenty expired, it's the fan they used in the HVAC blower, it's the cheap heating/cooling unit itself, it's the plumbing, the electric, the CAT5 (most important of course), it's all those little things that you dont realize the first time through. Remember, you never think about things you don't think about! ~Nitron.
ññòòïðïðB A
startNitron wrote: it's all those little things that you dont realize the first time through. ... including, say, the lack of an exhaust fan in the bathroom. X| But that turned out to be a good thing, I was able to get one I wanted, wasn't cheap but is nice and quiet and works well (even after Mexican meals. :) ) Much better than the piece-o-junk fans that are in a lot of houses. Remember, even if you win the rat race, you're still a rat.
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Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. Jim QTExtender - The OFFICIAL addon for QuoteTracker.
AAntix wrote: I think I am going to wait until my savings grows a bit more before taking the dive. No! Don't give up. Paying rent to someone else and gaining no equity is silly! "Looking at cleavage is like looking at the sun. You don't stare at it. It's too risky. You get a sense of it and then you look away." Jerry Seinfeld
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Thank-you everyone for the advice. I think I am going to wait until my savings grows a bit more before taking the dive. Jim QTExtender - The OFFICIAL addon for QuoteTracker.
Mike is correct. It is silly to collect rent receipts if there's a home you can afford to buy now. Your thought of starting with something less ambitious and upgrading later as equity and income grow is sound. You can't write off rent for income tax purposes; you can mortgage interest. That means that a house payment equal to the rent you're paying now is cheaper by whatever the tax on that amount is in your bracket. For the first five years almost 100% of your payment is interest, which you deduct from your taxable income. Do the math, then decide what's smart for you. Will Build Nuclear Missile For Food - No Target Too Small
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First off I'll say you're wise in looking for real-estate... in many areas, a mortage is cheaper than rent (or at least comparable), and you at least build equity in your home instead of flushing money down the toilet. I've now bought twice (first a condo, then an older home), and in my rambling experiences, this is what I've found: :bob: An easy way to find a real-estate agent is to find a house you really like, figure out who's listing it, and go with either that person or somebody from their same group. :bob: You can get some good deals on older houses if you look around, are patient, and are willing to do some work. For instance, I got mine at a great price becuase the owners wanted to sell quickly, and while a lot of it has been renovated (new roof, etc.) it had no central air conditioning, needed painting, etc. You could also go for a real fixer-uper, knowingn you'll have to put some time and money into it, but on the other hand you get to renovate it so it's just what you want. :bob: Make sure you get a home inspection before you buy. But don't put much stock in the termite inspection - you often can't really tell if there are termites without ripping out wallboard and checking the studs. :bob: As others have said, be realistic in what you can bite off. If you can find something close to what you're paying in rent now (taking into account the fact you'll pay property tax and insurane on top of your mortgate), you're golden. If you can swing it, go for a 15-year, you'll save thousands of dollars in the long run, but from what you say it sounds like you probably won't have the financial abilities to do that. :bob: As for lot size, again, be realistic. A big yard sure is nice, but do you have the time and energy to maintain it? Mowing gets old. Shovelling snow off of a long driveway gets old, too. But for many people (including me) it's worth it. Trees sure are nice, too, but frequently require trimming and maintenance, especially if they are close to the house. :bob: And of course, take into account location! If you think you'll re-sell in a few years, make sure you buy in a sellable location (e.g., not in the slums.) Your commute to work is an issue too... having to drive long distances, or wait an hour in stop-and-go-traffic gets old and expensive. Anyway, good luck in your quest! Remember, even if you win the rat race, you're still a rat.
Excellent advice.:-D Will Build Nuclear Missile For Food - No Target Too Small
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Mike is correct. It is silly to collect rent receipts if there's a home you can afford to buy now. Your thought of starting with something less ambitious and upgrading later as equity and income grow is sound. You can't write off rent for income tax purposes; you can mortgage interest. That means that a house payment equal to the rent you're paying now is cheaper by whatever the tax on that amount is in your bracket. For the first five years almost 100% of your payment is interest, which you deduct from your taxable income. Do the math, then decide what's smart for you. Will Build Nuclear Missile For Food - No Target Too Small
Roger Wright wrote: You can't write off rent for income tax purposes; you can mortgage interest. Does anyone know if that's the same over here in Britian? :~
David Wulff The Royal Woofle Museum
Putting the laughter back into slaughter