You know the thing about houses, is the old axiom, Location! Location! Location!
There's places all over the USA, small towns and villages, where you can get a whole house for between $40,000 and $80,000, and sometimes less if they're in disrepair.
For houses in that price point, you're looking at a monthly mortgage of around $300 to $500
So yes, it can be done so long as you know you're not going to find a "cheap" house in, near, or around any major city. You'll have to travel a bit.
Ehh, don’t even limit yourself with this. I’m moronic and somehow managed to buy a house during the hottest real estate market in possibly the hottest place in the country last year.
Stack away bits of money and look at the incentives the gubbmint puts in place. Believe it or not, they actually have a bunch of programs and laws in place to help first time homebuyers not become perma-renters if you can come up with a little money. First time buyers need less than investors to buy a place, as long as you can convince the owner to sell to you instead of some slumlord.
Yes
Will you have to compromise on what you want? Yes
To set yourself up for success, start saving now, put those savings in some sort of investment account. Fidelity, betterment, whatever, just read any basic investing or financial advice book. Learn handyman skills, books and videos are nice, but there is no substitute for doing. Keep your eyes peeled for foreclosures, but ignore anything with foundation or structural issues.
The majority of people that I hear complain about the impossibility of homeownership are financially illiterate and completely inflexible on their demands, confusing wants with needs. >Oh but I absolutely need that 4000sqft because I might get a dog >Yes it has to be in a suburb right outside the city, it's so close to the bars and restaurants I go to every night >ugh, I'll never be able to afford a home >goes on Amazon shopping spree >goes on vacation for the 4th time this year
Just don't be that guy. Anything worth doing requires some sort of effort, and no one can have it all, so compromise is inevitable.
not to sound like im coping, but ive been an electrician for 5 years. ive moved up in the trade, gotten raises, saved a lot (to me) of money, and every time i feel ready to buy a house, the market doubles in value
>>Oh but I absolutely need that 4000sqft because I might get a dog
im looking at <1000sq ft houses >>Yes it has to be in a suburb right outside the city, it's so close to the bars and restaurants I go to every night
the houses are expensive even in the "country" where im looking >>ugh, I'll never be able to afford a home
i try to keep my head up >>goes on amazon shopping spree
no >>goes on vacation for the 4th time this year
i havent gone on a vacation since 2019 and even that was a less than $1k vacation including the plane ticket, place i was staying, food, entertainment etc
Listen, my realtor neighbor told me this when I was hesitant to try to buy a house in the boom last summer. He said it’s a shitty time to buy for somebody who wants to flip the house within a year, but if you’re going to buy the house and hang onto it for 10+ years and take care of it and improve it, the property value will only go up in the long run and you will end up owing $200k on a house that’s now worth $600k.
He wasn’t my realtor. Plus he knew that I would rather fix stuff myself than call the landlord and wait for them to find the cheapest fix.
I had 90 days to figure out whether I was going to buy a place, or rent at like $3500/mo. Interest rates weren’t as fricked because I got preapproved right before 2-3 more interest rate hikes. I’m glad I bought.
I was renting for 10 years and it fricking sucked because at 4 years and 6 years, right after getting comfy and at home in the houses, the owners decided they wanted to sell as the market was going up a little and they wanted way too much money. I had the regrets that I didn’t buy the house 5 years earlier, and I didn’t want those same regrets in a few years when rents on a 3/2 that wasn’t in the hood were up to $5k/mo.
Nope. I’m telling OP to do it because even paying in a hot market is better than renting. Paying the mortgage feels so much better than paying rent, and I don’t have to ask anybody if I can hang a fricking picture on the wall.
Also we got a pretty good price. They lady had just redone the kitchen and first floor real nice and we paid $20k-$30k less than the other 2 houses that had sold in the past few months right down the street.
Also that dude gave me some good advice. Florida had just passed this “hometown heroes” program like within the past couple months. The mortgage company said we were the first buyers they had who had used the program because it was so new. We got an extra 5% towards down payment or closing costs, so that was an extra $20k to make a much more competitive offer. I think sellers get skeptical of people doing the minimum first timer 3% down because a lot of those offers fall through before closing, so that $20k helped in the crazy market where we got beat by investors on the first 2 houses.
60k/year before taxes, homes start at 200k+ for shitty ones with no land, $300k+ is more realistic for a home that doesnt need $75k renovation and has some land
Talk to a local mortgage company that friends and family have used, ask them what you realistically might need to come up with as a first time homebuyer, and then if you want to, have them run the numbers and see if you can get approved for $300k and see what your monthly payments with insurance will actually be.
Also work on finding a nice girl and marrying that b***h because a second income will help you get approved for more. And if that’s going to take a few years, buy yourself one of those shitty houses or apartments instead of renting because then you will have some equity in 5-10 years when you find the nice girl and it will help put a fat down payment on the $400k house at that point.
>every time i feel ready to buy a house, the market doubles in value
That won't be happening again for a long while, higher interest rates and the recession are killing house sales across the country.
You'll pay more, but if you can get into a house, you can re-finance at a lower rate in the future.
Pay your debts.
Save some $ to buy your house in a few years.
Find somewhere where population is growing and where there are establishments that will not leave the place.
Remote work has changed the real state landscape a lot.
When you're out of rent, things will get easier.
It's hard but it's still in the realm of possibility.
But for those of us who are working low income jobs, the biggest mistake I see is people renting more than what they need. Minimizing your rent costs is the biggest thing you can do to keep more money in your pocket. Get the studio apartment instead of the 2 bedroom, or stay in a shittier part of town instead of the really pretty townhouse.
Yeah it should be a no-brainer. I lived in cheap and shared rental accommodation for a decade before buying into the market. Lived well below my means and didn't allow lifestyle creep to come into things. That extra decade of extended living like a penniless student while earning average wages was actually way overkill, I absolutely could have bought in earlier but the process was a bit scary and I waited to make the leap.
I understand if anything it's a bit simpler in the US because you can lock in a mortgage rate for the durarion of the mortgage. That's unheard of over here, best you can do is lock in for a few years and then you have to lock back in at a new rate or take your chances on the floating rate. Much less security in this situation, but having a big enough downpayment up front minimizes the risk.
yeah, but are 30 year mortgages the norm in your country the same way that they are in the US?
Basically the way that it works out is that the median household income is just enough to meet the 1:3 mortgage payment to income ratio in the least desirable areas and it's not enough to meet it in the average or more expensive areas
Would you tell me more about the interest rate structure and how mortgage contracts are set up in your area? Can they seriously change up your interest rate every few years arbitrarily?
That's kind of terrifying. Do they still do 15 or 30 year mortgages as a standard?
>Can they seriously change up your interest rate every few years arbitrarily?
That's kind of terrifying. Do they still do 15 or 30 year mortgages as a standard?
Yes and Yes. You can fix all or part of your mortgage for a period of 1-2 years tops. When that expires it all automatically drops to the floating rate and you are free to re-fix, stay floating, or consider switching to a bank that's offering a better rate (they're all pretty similar though). The rates don't arbitrarily change, the central bank has a base rate and the commercial banks are all somewhat tied to that rate. Still entirely possible that interest rate hikes cause rising defaults though.
yeah, but are 30 year mortgages the norm in your country the same way that they are in the US?
Basically the way that it works out is that the median household income is just enough to meet the 1:3 mortgage payment to income ratio in the least desirable areas and it's not enough to meet it in the average or more expensive areas
>30 year mortgages the norm in your country the same way that they are in the US?
Yes. At least I think so based on my understanding of the US mortgage market. You can get a 10, 20, 30 year mortgage here. Longer would be uncommon and you'd have to be pretty young with a great future earning potential (e.g. degree in a hot field) I think. We took a 20 year mortgage, set our repayment amounts to aim to pay it off in 10 years, and took advantage of the last few years of crazy low interest rates to pay it off as fast as possible. But if the interest rates had spiked at any point we wouldn't have been in a much worse position. It mystifies me that people think a period of low interest is the right time to keep taking on debt. It's the right time to be paying it off.
>It mystifies me that people think a period of low interest is the right time to keep taking on debt
low interest rates = very low monthly payments. Anyone who bought during 2020-2021 is paying half as much monthly for the same borrowed amount as compared to now. It WAS a great time to take on a house payment because if you didn't, then because of massive inflation in the housing sector and steeply increasing interest rates, anyone who didn't buy 2 years ago is now looking at 2x-3x prices in a lot of the country. Either in cash prices or in terms of how their monthly payment shapes up.
In the USA, 30 year mortgages are the norm, and how much people can afford to pay monthly on a 30 year loan is effectively what sets the housing market prices in most of the country. If where you are has price to income ratios of 10-12x as the norm then I can't understand how you're paying things off in 10 years unless you have a much higher than average income.
Ah but the ongoing low rate is the only reason that is true. If you're in a situation where interest rates rise, and your mortgage interest rate rises alongside it, then you have to pay down aggressively in the low-interest times or you'll be underwater when the rates rise.
It's completely different if you locked in a low rate that is fixed for the duration of the mortgage. That would be a great position to be in, but is simply not something that is offered here.
It's still possible, but difficult. I grew up rural and did not really want to live in a town or city. I bought a 3 acre lot in the country side, lived in a 5th RV on it for 10 years until I could afford to build a house. I could have taken a shortcut and put a mobile home on the lot but I had specific things I wanted and was willing to wait until I could do it right
Forgot to add the land was $15k, another $4k to get public water and electric connections, spent $5k on a used 5th wheel RV, now I'm about $150k into a slab + metal frame building I've made into a home. Location location location is what matters the most for this stuff working out.
yes, i will explain and eloberate on some of the points made on this thread
first off their is propoganda for people millenials and some gen x, that they will never own a home, step 1, dont listen to this, most people our age look at a giant number and assume , one would never afford it or even want to pay that for that long. in fact most people our age have not even financed a car lol. you should do that first.
2.the cost, you have to understand inflation and interest , also supply demand and also add
investing.
you see since fricking oprah in the 90s when they had robert kawosaki on, they caused all the boomers to start investing in real estate, thus making the prices go sky high.
cut to today houses are 400 600k
know first you must undertand the inflated prices of the houses is only due to the past 20 years, us having low interest rates, this has stopped this year and were at 7 atm.so prices for houses in the next few years will come down
low interest means loans where the interest is not very high, this is investing 101
low interest loans means you can have assets that pay for themselves with loans. boomer house investing 101.
but interest went up so thats gone lol
3. any asset can be purchased by anyone if they know how to finance it, their are a million ways to finance a house. witch is not an asset lol. boomers dont listen tho
ok heres your question know
how can i buy a house today as someone under 30.
1, debt to income ratio, this is what banks use to finance loans, it depends on how much you spend and how much you waste. you make 2k but after bills car payment, your left with 300, thats not enough for a house.
so you have to make more money or have no debt at all, car payments fricking cable bill, nothing that can be traced, like pay it off or cancell so it shows you pay nothing out
ok know this is part most people give on , financing,
you need to finance the loan, no one pays the full amount unless you have it, you need to finance it,
ways to finance loan
you need a down payment
so you need to save some money lol
regular loan is 10 percent of cost of house
but you prob wont be able to do that
here is where you may succedd
it all depends on your effort
ok
fha loan, this how many real estate people buy houses, those fricks lol, also how many normal people get their first home,
first home time buyer loan backed by the fed gov 3.5 interest and down payment as low as 5 percent
this is your best bet honestly
ask a loan officer at bank or find one online to help get a fha loan, some of these guys are total scum by the way, banks are your best bet.
but not always.
2 second option, there are low income loans just like fha loans that also have 5 percent down low interest. depends on your income and state.
3. ok know the real Black folk, owner financing, you get loan directly from owner and deal with title company, this is agreat way for anyone to get land and a home, mosltly land, if you see
for sale by owner
call them
and discuss terms
change them and try to make a good deal for both, some will be happy with like a 10k down payment even less with land
finally home bbuyer fixer up loans, but the interest is too high
you need something like this, the interest is too high atm. but it means prices will come down next few years.
if you have at least 10 15k saved up in a year or 2 , you can buy a nice house
>$10k-$15k
I wish I had the shit prices on homes that you have.
Also don’t forget closing costs. You can get a low 3%-5% down payment, but you’re going to pay another 3%-5% in closing costs which is kind of gay. Either way that’s a lot less than the boomer “20% down”. PMI is gay too when you get a loan with a low down payment, but you can get rid of it within a couple years if you have your shit in order.
Yes, it sucks, but even with PMI and homeowner’s insurance, it’s still a few hundred bucks a month less than renting and I’m actually building some equity. Plus everybody says you can get rid of the PMI as soon as you refinance, so if we manage to get a good economy again after Biden dies, then I’ll refinance and drop that bill. And if Biden doesn’t die or Kamala takes over, the inflation will get so bad that my mortgage is the cost of a cheeseburger and the PMI is the cost of the slice of cheese on the burger and nothing matters anyway.
i like you bud
but dont believe the propoganda
we have a giant generation of young people
the booomer die off sell of began 2023 to end sometime in 2070
the usa is a wealthy country
just realize,, every illegal mexican cousin i have
has
1 giant fricking 50k truck
no fricking papers
a family
with 2 fricking kids
and usually a house back home in mexico
11 months ago
Bepis
I feel ya, it’s a little bit fricked up, but if you get your priorities straight and drive that 2009 Camry for a few more years, it’s possible.
I couldn’t imagine saving enough to buy my own house all through my 20s until I met a responsible girl. Get married instead of renting an apartment and being “engaged” for 12 years, that ring means you have some skin in the game and you start to care more about buying a house for your family than getting that new JDM intercooler for your Subaru. There’s a lot of programs for first time buyers and you can buy a fricking condo or apartment instead of renting and start building something, but you need to have realistic expectations and understand that your first home might not be a 3000 square foot McMansion like the empty nester boomers.
Also I’m at Disney right now, the wife loves the place but we put it off for 3 years to pay for a wedding and buy a house. Tax returns went right into savings instead of theme parks and hotels. That’s how life works.
exaclty i like this guy
shit sucks
suck it up and move through the muck
as much as it sucks paying insurance and other shit, its better than the monthly high interest rate of current 7
I mean I didn’t think I would be able to buy last year until I talked to realtors and bankers. I thought of my last 10 years renting and was sick of it, especially with how I would keep up the houses.
In 2012 I could’ve bought a decent 3/2 for like $250k, maybe that would be around $1500/mo mortgage. I rented for like $1800-$2000 the next 4 years, then they wanted to sell the house for nearly 400k and I didn’t think I could do it.
Then I got a different house and was there for 6 years at like $2000-$2500/mo, and the last couple years I only got it for <$3000 because I was an easy tenant. Then they gave me 90 days to move out or pay $700k because they’re crazy boomers.
If I wanted another 3/2 to rent, it would be $3500/mo anywhere but the hood and I would either get kicked out of there in a few years when they wanted $1mil or be paying >$4000/mo, so we went for it and tried to buy a place and the mortgage is like $500/mo less than it would be renting, even without a huge down payment.
You gotta start somewhere, and that was my 3rd time in that shitty situation in 10 years. I wanted to own eventually and everybody said just do it because you have no clue what the market will do in the next couple years but rents will always go up and in the long run (>5 years) the home values will always rise.
you need to ask for the parameters of the loans so you meet requirements and dont waste time, ask for a checklist
what debt to income do i need, the bank checks all this and just says no withought telling you
also i forgot, if you have parents that can co sign
than you can finance
I was offered a conventional loan with as little as 3% down. You don’t need 10%+ for a conventional loan unless your credit score sucks.
I don’t know about FHA that much though, everybody said to go conventional as long as it was available to me. I think sellers like seeing conventional loans too, they’ll be weary of FHA buyers if they have another good offer from some investor with a lot of cash down.
It’s real easy to get a pre-approval if you just talk to your bank or a mortgage company. Wells Fargo did it real fast while the actual mortgage co went a little more in-depth. They’re going to do a hard check on your credit so keep that in mind if you have a lot of checks recently, but they will give you options and at an amount you’re thinking of spending and locks you into an interest rate for 90 days in case it goes up again.
go to bank loan officer
or guy who speacilizes in financing mortages,
ask them for the types of fha loans
and parameters for qualifyng
they will give a you a list or tell you how to research it on your own, much of this will be of your own effort, no one really cares.
another point, i have a 40 acre property, no one cares abought you anon
you must make a lot of the effort yourself
for instance google fha and read anon
real estate people are scum of the earth
you must be weary
they act like they have no time for you
find a good person who will show you the time of day, the market is desperate atm
great time
during covid
they would fricking hang up on you for anything less than 500k
>will i (a non college educated white male zoomer) ever be able to afford owning a home?
Yes.
It will not, however, be an appreciating asset.
Boomers and vaxxies dying. There are more of them than anyone else.
There will be a glut of homes on the market, cratering the price. Everywhere a Detroit.
(Which is probably why Blackrock is buying them all up to pull a De Beers, i.e. introducing artificial scarcity. It won't work, of course. But that's not actually possible.)
It sounds awful, but read obits for areas you're interested in and then watch for when their kids try to unload the house. If you're looking at the right neighborhoods where the boomer kids were raised right, they'd rather sell to you than Blackrock.
I don’t know about you, but $3500/mo rent ends up being >$40k/yr on rent. How many years are you going to sign leases on rental properties while you wait for house values to drop 5%, maybe 10% max?
I don’t know about you, but $3500/mo rent ends up being >$40k/yr on rent. How many years are you going to sign leases on rental properties while you wait for house values to drop 5%, maybe 10% max?
Also if your against the “Buy whenever you can” people, maybe you never had the feeling of getting comfy in a house after 5 years and making it your home and then getting a 90 day notice. And it’s always going to happen when the market is up. And god forbid it’s right after a “””pandemic””” during which every blue state governor scared off a good % of their population and real estate jumped >50% in Florida within a year so your competing with New Yorkers who are offering above listing price for properties they have never even seen.
My in-laws were living in an apartment in a larger fairly new development and the lease they signed in 2021 was for $1800/mo. 12mos later when they wanted to renew for 2022, the property management wanted $3000/mo. The rental market is just as volatile. If the owner can’t get the rent, they turn it into an Air BnB over here.
i dont think you know women dude
most girls want you to do the saving also
i always wanted a wife
but women are hardcore when it comes to emasculating you for not earning enough
in fact i agree with anon
you have a family
you need a house
no women wants to live in an appartment with kids
Honestly your chances are slim. Housing is expensive everywhere, even here in bumfrick Ohio. Keep in mind that you can’t “just” buy a home out in the country either. It’s still going to be expensive, your job selection will be much worse, you’ll make less money, and you’ll have to do a lot of driving.
6 years ago I was making $70k and renting at $1400 a month. My apartment place got bought and they decided $1800 was a good charge so I said frick this I need to move and for whatever reason I decided a house was better than renting at this point and got a realtor. Budget was $200k.
I spent about 4 months looking at various houses, mostly I did my own research and just told her which one I wanted to see and she met me there with a key or code to the lockbox to open it. Finally she shows me this house that I rejected before for being too far away from work, 50 minute drive. But everything else was perfect. Well as perfect as it could be within my budget. Nice small town, secluded house on 2 acres. They almost sold it but the last deal fell through and were on the market again so we made an offer. The house was listed at $220k and the offer was $190k plus cover all my closing costs. Ended up agreeing to $205k with all closing costs covered.
I regret nothing. I love my property. It was a long commute for a couple years then covid blessed me with work from home and I still do. My company went fully remote and sold their office space so there's no risk of getting recalled to work in the office again so that's nice. And my salary now is $140k so the house is very affordable, I'll have it paid off within 10 years easily.
So yeah the property is great. The house is just okay. It's livable. Split level with 2 finished floors, one being half submerged. Neither is level with the ground. Not ideal, it's a lot of stairs. Only one bathroom, I could add another eventually. Nothing is falling apart, the boiler is old but still manages to function.
Anyway yes you can do it. Just save your money for a down payment and don't be too picky. I almost was but I still owe my realtor thanks for finding this house and convincing me to look at it. She knew what I was looking for in terms of privacy and location (rural but not middle of nowhere) and found it at the right price.
PS I was 29 when I started looking and 30 by the time I bought. If you asked me when I was 27 or 28 when I'd own a house I'd say I dunno maybe never, it's too expensive. It just happened quickly because of the rent increase.
I know prices and interest rates have gone up since I bought. If I were buying now even though I make double what I made then I could probably still only afford the same house. But so what? I do make double what I made when I bought and I do live in the same house and I don't want a different one. I'd feel bad leaving all my birds and my skunk friend behind. So I'd still buy it today, even at $350k.
I was in the same situation, renting an apartment for $1800 and kept getting into it with the landlord about maintenance, so I said frick it and scavenged up enough money for a house down-payment last year.
I was wringing my wrists about it for a long time because of high interest rates and a competitive housing market, but everything all worked out in the end.
>screwed by timing over the last 12 years
This is what I have been saying the whole thread. You wasted so much money on rent instead of building equity. Keep waiting more years until PrepHole finally says it’s a good market but you have some other excuse about timing.
Get your shit lined up and go for it if you ever want to be a homeowner. Over the past year I talked to so many boomers who got into like 15% mortgages in the 80s and they all said they didn’t regret it.
The timing I am referring to is entirely unrelated to me "timing" the market. I entered the workforce in 2012, did not get anything approaching a good job until it was 2015 and by 2017 when my job was seasoned enough to start applying for mortgages the down payment needed to purchase a house had already shifted out of my favor. Then Covid happened and exploded the market. I am going to wait for a little bit longer and then if I cannot find anything locally I am just going to need to move further away with my family until we can afford, but my wife refuses to entertain that as an option so we are probably never going to buy until she recognizes the error of her ways (Impossible).
Look at the cost of homes you would be interested in buying and plug the number into a mortgage payment calculator.
But since you were too moronic to even think of this incredibly obvious first step, ima guess you will never own a home.
Yeah it's not actually impossible or even unlikely that you'll be able to own a home, just save up your money by working while living at home for as long as possible. Once you have like a 5-10% down payment and good credit you can get a mortgage loan. If living at home is not an option split with as many roommates as you can stand.
HUD can get you in a real house for a lower price. It takes some diligence, it is a weird federal auction thing, and you have swear to live in it personally for a while and not resell it for a longer while. They will always need TLC, and many are absolute stinkers you <really> don't want, but I live in a nice one in a nice neighborhood.
well lets see. You're too moronic to post on the correct board, so I'd say no.
This is the home owner board
Dont give up op, if you asked me in 2019 i would have said it was hopeless, now i live in my dream home
If i can do it, any one can
You know the thing about houses, is the old axiom, Location! Location! Location!
There's places all over the USA, small towns and villages, where you can get a whole house for between $40,000 and $80,000, and sometimes less if they're in disrepair.
For houses in that price point, you're looking at a monthly mortgage of around $300 to $500
So yes, it can be done so long as you know you're not going to find a "cheap" house in, near, or around any major city. You'll have to travel a bit.
Ehh, don’t even limit yourself with this. I’m moronic and somehow managed to buy a house during the hottest real estate market in possibly the hottest place in the country last year.
Stack away bits of money and look at the incentives the gubbmint puts in place. Believe it or not, they actually have a bunch of programs and laws in place to help first time homebuyers not become perma-renters if you can come up with a little money. First time buyers need less than investors to buy a place, as long as you can convince the owner to sell to you instead of some slumlord.
Yes
Will you have to compromise on what you want? Yes
To set yourself up for success, start saving now, put those savings in some sort of investment account. Fidelity, betterment, whatever, just read any basic investing or financial advice book. Learn handyman skills, books and videos are nice, but there is no substitute for doing. Keep your eyes peeled for foreclosures, but ignore anything with foundation or structural issues.
The majority of people that I hear complain about the impossibility of homeownership are financially illiterate and completely inflexible on their demands, confusing wants with needs.
>Oh but I absolutely need that 4000sqft because I might get a dog
>Yes it has to be in a suburb right outside the city, it's so close to the bars and restaurants I go to every night
>ugh, I'll never be able to afford a home
>goes on Amazon shopping spree
>goes on vacation for the 4th time this year
Just don't be that guy. Anything worth doing requires some sort of effort, and no one can have it all, so compromise is inevitable.
not to sound like im coping, but ive been an electrician for 5 years. ive moved up in the trade, gotten raises, saved a lot (to me) of money, and every time i feel ready to buy a house, the market doubles in value
>>Oh but I absolutely need that 4000sqft because I might get a dog
im looking at <1000sq ft houses
>>Yes it has to be in a suburb right outside the city, it's so close to the bars and restaurants I go to every night
the houses are expensive even in the "country" where im looking
>>ugh, I'll never be able to afford a home
i try to keep my head up
>>goes on amazon shopping spree
no
>>goes on vacation for the 4th time this year
i havent gone on a vacation since 2019 and even that was a less than $1k vacation including the plane ticket, place i was staying, food, entertainment etc
Listen, my realtor neighbor told me this when I was hesitant to try to buy a house in the boom last summer. He said it’s a shitty time to buy for somebody who wants to flip the house within a year, but if you’re going to buy the house and hang onto it for 10+ years and take care of it and improve it, the property value will only go up in the long run and you will end up owing $200k on a house that’s now worth $600k.
>taking home buying advice from realtors
lmao at this moron
He wasn’t my realtor. Plus he knew that I would rather fix stuff myself than call the landlord and wait for them to find the cheapest fix.
I had 90 days to figure out whether I was going to buy a place, or rent at like $3500/mo. Interest rates weren’t as fricked because I got preapproved right before 2-3 more interest rate hikes. I’m glad I bought.
I was renting for 10 years and it fricking sucked because at 4 years and 6 years, right after getting comfy and at home in the houses, the owners decided they wanted to sell as the market was going up a little and they wanted way too much money. I had the regrets that I didn’t buy the house 5 years earlier, and I didn’t want those same regrets in a few years when rents on a 3/2 that wasn’t in the hood were up to $5k/mo.
Sounds like you overpaid and are now coping
Nope. I’m telling OP to do it because even paying in a hot market is better than renting. Paying the mortgage feels so much better than paying rent, and I don’t have to ask anybody if I can hang a fricking picture on the wall.
Also we got a pretty good price. They lady had just redone the kitchen and first floor real nice and we paid $20k-$30k less than the other 2 houses that had sold in the past few months right down the street.
Also that dude gave me some good advice. Florida had just passed this “hometown heroes” program like within the past couple months. The mortgage company said we were the first buyers they had who had used the program because it was so new. We got an extra 5% towards down payment or closing costs, so that was an extra $20k to make a much more competitive offer. I think sellers get skeptical of people doing the minimum first timer 3% down because a lot of those offers fall through before closing, so that $20k helped in the crazy market where we got beat by investors on the first 2 houses.
Salary and area/avg home price where you're looking?
60k/year before taxes, homes start at 200k+ for shitty ones with no land, $300k+ is more realistic for a home that doesnt need $75k renovation and has some land
Are you renting right now?
Talk to a local mortgage company that friends and family have used, ask them what you realistically might need to come up with as a first time homebuyer, and then if you want to, have them run the numbers and see if you can get approved for $300k and see what your monthly payments with insurance will actually be.
Also work on finding a nice girl and marrying that b***h because a second income will help you get approved for more. And if that’s going to take a few years, buy yourself one of those shitty houses or apartments instead of renting because then you will have some equity in 5-10 years when you find the nice girl and it will help put a fat down payment on the $400k house at that point.
I need muh land, I need to grow muh potatoes and build a chicken coop, haha land, I love paying taxes
I pay less tax for acreage 20 minutes out of the city than i would pay for square footage in the city
>every time i feel ready to buy a house, the market doubles in value
That won't be happening again for a long while, higher interest rates and the recession are killing house sales across the country.
You'll pay more, but if you can get into a house, you can re-finance at a lower rate in the future.
Pay your debts.
Save some $ to buy your house in a few years.
Find somewhere where population is growing and where there are establishments that will not leave the place.
Remote work has changed the real state landscape a lot.
When you're out of rent, things will get easier.
It's hard but it's still in the realm of possibility.
But for those of us who are working low income jobs, the biggest mistake I see is people renting more than what they need. Minimizing your rent costs is the biggest thing you can do to keep more money in your pocket. Get the studio apartment instead of the 2 bedroom, or stay in a shittier part of town instead of the really pretty townhouse.
Yeah it should be a no-brainer. I lived in cheap and shared rental accommodation for a decade before buying into the market. Lived well below my means and didn't allow lifestyle creep to come into things. That extra decade of extended living like a penniless student while earning average wages was actually way overkill, I absolutely could have bought in earlier but the process was a bit scary and I waited to make the leap.
I understand if anything it's a bit simpler in the US because you can lock in a mortgage rate for the durarion of the mortgage. That's unheard of over here, best you can do is lock in for a few years and then you have to lock back in at a new rate or take your chances on the floating rate. Much less security in this situation, but having a big enough downpayment up front minimizes the risk.
Oh and the price to income ratio here is more like 10-12x, so hearing how it's hard for people in areas where it's 3-5x is kinda funny.
yeah, but are 30 year mortgages the norm in your country the same way that they are in the US?
Basically the way that it works out is that the median household income is just enough to meet the 1:3 mortgage payment to income ratio in the least desirable areas and it's not enough to meet it in the average or more expensive areas
Would you tell me more about the interest rate structure and how mortgage contracts are set up in your area? Can they seriously change up your interest rate every few years arbitrarily?
That's kind of terrifying. Do they still do 15 or 30 year mortgages as a standard?
>Can they seriously change up your interest rate every few years arbitrarily?
That's kind of terrifying. Do they still do 15 or 30 year mortgages as a standard?
Yes and Yes. You can fix all or part of your mortgage for a period of 1-2 years tops. When that expires it all automatically drops to the floating rate and you are free to re-fix, stay floating, or consider switching to a bank that's offering a better rate (they're all pretty similar though). The rates don't arbitrarily change, the central bank has a base rate and the commercial banks are all somewhat tied to that rate. Still entirely possible that interest rate hikes cause rising defaults though.
>30 year mortgages the norm in your country the same way that they are in the US?
Yes. At least I think so based on my understanding of the US mortgage market. You can get a 10, 20, 30 year mortgage here. Longer would be uncommon and you'd have to be pretty young with a great future earning potential (e.g. degree in a hot field) I think. We took a 20 year mortgage, set our repayment amounts to aim to pay it off in 10 years, and took advantage of the last few years of crazy low interest rates to pay it off as fast as possible. But if the interest rates had spiked at any point we wouldn't have been in a much worse position. It mystifies me that people think a period of low interest is the right time to keep taking on debt. It's the right time to be paying it off.
>It mystifies me that people think a period of low interest is the right time to keep taking on debt
low interest rates = very low monthly payments. Anyone who bought during 2020-2021 is paying half as much monthly for the same borrowed amount as compared to now. It WAS a great time to take on a house payment because if you didn't, then because of massive inflation in the housing sector and steeply increasing interest rates, anyone who didn't buy 2 years ago is now looking at 2x-3x prices in a lot of the country. Either in cash prices or in terms of how their monthly payment shapes up.
In the USA, 30 year mortgages are the norm, and how much people can afford to pay monthly on a 30 year loan is effectively what sets the housing market prices in most of the country. If where you are has price to income ratios of 10-12x as the norm then I can't understand how you're paying things off in 10 years unless you have a much higher than average income.
Ah but the ongoing low rate is the only reason that is true. If you're in a situation where interest rates rise, and your mortgage interest rate rises alongside it, then you have to pay down aggressively in the low-interest times or you'll be underwater when the rates rise.
It's completely different if you locked in a low rate that is fixed for the duration of the mortgage. That would be a great position to be in, but is simply not something that is offered here.
It's still possible, but difficult. I grew up rural and did not really want to live in a town or city. I bought a 3 acre lot in the country side, lived in a 5th RV on it for 10 years until I could afford to build a house. I could have taken a shortcut and put a mobile home on the lot but I had specific things I wanted and was willing to wait until I could do it right
Forgot to add the land was $15k, another $4k to get public water and electric connections, spent $5k on a used 5th wheel RV, now I'm about $150k into a slab + metal frame building I've made into a home. Location location location is what matters the most for this stuff working out.
yes, i will explain and eloberate on some of the points made on this thread
first off their is propoganda for people millenials and some gen x, that they will never own a home, step 1, dont listen to this, most people our age look at a giant number and assume , one would never afford it or even want to pay that for that long. in fact most people our age have not even financed a car lol. you should do that first.
2.the cost, you have to understand inflation and interest , also supply demand and also add
investing.
you see since fricking oprah in the 90s when they had robert kawosaki on, they caused all the boomers to start investing in real estate, thus making the prices go sky high.
cut to today houses are 400 600k
know first you must undertand the inflated prices of the houses is only due to the past 20 years, us having low interest rates, this has stopped this year and were at 7 atm.so prices for houses in the next few years will come down
low interest means loans where the interest is not very high, this is investing 101
low interest loans means you can have assets that pay for themselves with loans. boomer house investing 101.
but interest went up so thats gone lol
3. any asset can be purchased by anyone if they know how to finance it, their are a million ways to finance a house. witch is not an asset lol. boomers dont listen tho
ok heres your question know
how can i buy a house today as someone under 30.
1, debt to income ratio, this is what banks use to finance loans, it depends on how much you spend and how much you waste. you make 2k but after bills car payment, your left with 300, thats not enough for a house.
so you have to make more money or have no debt at all, car payments fricking cable bill, nothing that can be traced, like pay it off or cancell so it shows you pay nothing out
ok know this is part most people give on , financing,
you need to finance the loan, no one pays the full amount unless you have it, you need to finance it,
ways to finance loan
you need a down payment
so you need to save some money lol
regular loan is 10 percent of cost of house
but you prob wont be able to do that
here is where you may succedd
it all depends on your effort
ok
fha loan, this how many real estate people buy houses, those fricks lol, also how many normal people get their first home,
first home time buyer loan backed by the fed gov 3.5 interest and down payment as low as 5 percent
this is your best bet honestly
ask a loan officer at bank or find one online to help get a fha loan, some of these guys are total scum by the way, banks are your best bet.
but not always.
2 second option, there are low income loans just like fha loans that also have 5 percent down low interest. depends on your income and state.
3. ok know the real Black folk, owner financing, you get loan directly from owner and deal with title company, this is agreat way for anyone to get land and a home, mosltly land, if you see
for sale by owner
call them
and discuss terms
change them and try to make a good deal for both, some will be happy with like a 10k down payment even less with land
finally home bbuyer fixer up loans, but the interest is too high
you need something like this, the interest is too high atm. but it means prices will come down next few years.
if you have at least 10 15k saved up in a year or 2 , you can buy a nice house
>$10k-$15k
I wish I had the shit prices on homes that you have.
Also don’t forget closing costs. You can get a low 3%-5% down payment, but you’re going to pay another 3%-5% in closing costs which is kind of gay. Either way that’s a lot less than the boomer “20% down”. PMI is gay too when you get a loan with a low down payment, but you can get rid of it within a couple years if you have your shit in order.
Dont you need default insurance with less than 20%?
Not that anon, but yes. That's what pmi is. Private mortgage insurance
I thought so
Calling it "boomer 20%" makes that guy sound like a gullible idiot who i wouldnt trust for homebuying advice
Yes, it sucks, but even with PMI and homeowner’s insurance, it’s still a few hundred bucks a month less than renting and I’m actually building some equity. Plus everybody says you can get rid of the PMI as soon as you refinance, so if we manage to get a good economy again after Biden dies, then I’ll refinance and drop that bill. And if Biden doesn’t die or Kamala takes over, the inflation will get so bad that my mortgage is the cost of a cheeseburger and the PMI is the cost of the slice of cheese on the burger and nothing matters anyway.
i like you bud
but dont believe the propoganda
we have a giant generation of young people
the booomer die off sell of began 2023 to end sometime in 2070
the usa is a wealthy country
just realize,, every illegal mexican cousin i have
has
1 giant fricking 50k truck
no fricking papers
a family
with 2 fricking kids
and usually a house back home in mexico
I feel ya, it’s a little bit fricked up, but if you get your priorities straight and drive that 2009 Camry for a few more years, it’s possible.
I couldn’t imagine saving enough to buy my own house all through my 20s until I met a responsible girl. Get married instead of renting an apartment and being “engaged” for 12 years, that ring means you have some skin in the game and you start to care more about buying a house for your family than getting that new JDM intercooler for your Subaru. There’s a lot of programs for first time buyers and you can buy a fricking condo or apartment instead of renting and start building something, but you need to have realistic expectations and understand that your first home might not be a 3000 square foot McMansion like the empty nester boomers.
Also I’m at Disney right now, the wife loves the place but we put it off for 3 years to pay for a wedding and buy a house. Tax returns went right into savings instead of theme parks and hotels. That’s how life works.
exaclty i like this guy
shit sucks
suck it up and move through the muck
as much as it sucks paying insurance and other shit, its better than the monthly high interest rate of current 7
I mean I didn’t think I would be able to buy last year until I talked to realtors and bankers. I thought of my last 10 years renting and was sick of it, especially with how I would keep up the houses.
In 2012 I could’ve bought a decent 3/2 for like $250k, maybe that would be around $1500/mo mortgage. I rented for like $1800-$2000 the next 4 years, then they wanted to sell the house for nearly 400k and I didn’t think I could do it.
Then I got a different house and was there for 6 years at like $2000-$2500/mo, and the last couple years I only got it for <$3000 because I was an easy tenant. Then they gave me 90 days to move out or pay $700k because they’re crazy boomers.
If I wanted another 3/2 to rent, it would be $3500/mo anywhere but the hood and I would either get kicked out of there in a few years when they wanted $1mil or be paying >$4000/mo, so we went for it and tried to buy a place and the mortgage is like $500/mo less than it would be renting, even without a huge down payment.
You gotta start somewhere, and that was my 3rd time in that shitty situation in 10 years. I wanted to own eventually and everybody said just do it because you have no clue what the market will do in the next couple years but rents will always go up and in the long run (>5 years) the home values will always rise.
you need to ask for the parameters of the loans so you meet requirements and dont waste time, ask for a checklist
what debt to income do i need, the bank checks all this and just says no withought telling you
also i forgot, if you have parents that can co sign
than you can finance
I want to buy a house in the next year. redpill me on FHA loans. sounds too good to be true.
I was offered a conventional loan with as little as 3% down. You don’t need 10%+ for a conventional loan unless your credit score sucks.
I don’t know about FHA that much though, everybody said to go conventional as long as it was available to me. I think sellers like seeing conventional loans too, they’ll be weary of FHA buyers if they have another good offer from some investor with a lot of cash down.
It’s real easy to get a pre-approval if you just talk to your bank or a mortgage company. Wells Fargo did it real fast while the actual mortgage co went a little more in-depth. They’re going to do a hard check on your credit so keep that in mind if you have a lot of checks recently, but they will give you options and at an amount you’re thinking of spending and locks you into an interest rate for 90 days in case it goes up again.
last year yes
know i dont think so
go to bank loan officer
or guy who speacilizes in financing mortages,
ask them for the types of fha loans
and parameters for qualifyng
they will give a you a list or tell you how to research it on your own, much of this will be of your own effort, no one really cares.
also here in cali fha qualifies for 400k
another point, i have a 40 acre property, no one cares abought you anon
you must make a lot of the effort yourself
for instance google fha and read anon
real estate people are scum of the earth
you must be weary
they act like they have no time for you
find a good person who will show you the time of day, the market is desperate atm
great time
during covid
they would fricking hang up on you for anything less than 500k
>will i (a non college educated white male zoomer) ever be able to afford owning a home?
Yes.
It will not, however, be an appreciating asset.
Boomers and vaxxies dying. There are more of them than anyone else.
There will be a glut of homes on the market, cratering the price. Everywhere a Detroit.
(Which is probably why Blackrock is buying them all up to pull a De Beers, i.e. introducing artificial scarcity. It won't work, of course. But that's not actually possible.)
It sounds awful, but read obits for areas you're interested in and then watch for when their kids try to unload the house. If you're looking at the right neighborhoods where the boomer kids were raised right, they'd rather sell to you than Blackrock.
Why not inherit your parent's home?
Renters
So many paragraphs of the worst financial advice I have ever read
I don’t know about you, but $3500/mo rent ends up being >$40k/yr on rent. How many years are you going to sign leases on rental properties while you wait for house values to drop 5%, maybe 10% max?
Also if your against the “Buy whenever you can” people, maybe you never had the feeling of getting comfy in a house after 5 years and making it your home and then getting a 90 day notice. And it’s always going to happen when the market is up. And god forbid it’s right after a “””pandemic””” during which every blue state governor scared off a good % of their population and real estate jumped >50% in Florida within a year so your competing with New Yorkers who are offering above listing price for properties they have never even seen.
My in-laws were living in an apartment in a larger fairly new development and the lease they signed in 2021 was for $1800/mo. 12mos later when they wanted to renew for 2022, the property management wanted $3000/mo. The rental market is just as volatile. If the owner can’t get the rent, they turn it into an Air BnB over here.
get a wife.
Live on your salary, save hers.
Simple as
i dont think you know women dude
most girls want you to do the saving also
i always wanted a wife
but women are hardcore when it comes to emasculating you for not earning enough
in fact i agree with anon
you have a family
you need a house
no women wants to live in an appartment with kids
Honestly your chances are slim. Housing is expensive everywhere, even here in bumfrick Ohio. Keep in mind that you can’t “just” buy a home out in the country either. It’s still going to be expensive, your job selection will be much worse, you’ll make less money, and you’ll have to do a lot of driving.
Yes. I'll build my homes
>paying for israeli education
6 years ago I was making $70k and renting at $1400 a month. My apartment place got bought and they decided $1800 was a good charge so I said frick this I need to move and for whatever reason I decided a house was better than renting at this point and got a realtor. Budget was $200k.
I spent about 4 months looking at various houses, mostly I did my own research and just told her which one I wanted to see and she met me there with a key or code to the lockbox to open it. Finally she shows me this house that I rejected before for being too far away from work, 50 minute drive. But everything else was perfect. Well as perfect as it could be within my budget. Nice small town, secluded house on 2 acres. They almost sold it but the last deal fell through and were on the market again so we made an offer. The house was listed at $220k and the offer was $190k plus cover all my closing costs. Ended up agreeing to $205k with all closing costs covered.
I regret nothing. I love my property. It was a long commute for a couple years then covid blessed me with work from home and I still do. My company went fully remote and sold their office space so there's no risk of getting recalled to work in the office again so that's nice. And my salary now is $140k so the house is very affordable, I'll have it paid off within 10 years easily.
So yeah the property is great. The house is just okay. It's livable. Split level with 2 finished floors, one being half submerged. Neither is level with the ground. Not ideal, it's a lot of stairs. Only one bathroom, I could add another eventually. Nothing is falling apart, the boiler is old but still manages to function.
Anyway yes you can do it. Just save your money for a down payment and don't be too picky. I almost was but I still owe my realtor thanks for finding this house and convincing me to look at it. She knew what I was looking for in terms of privacy and location (rural but not middle of nowhere) and found it at the right price.
PS I was 29 when I started looking and 30 by the time I bought. If you asked me when I was 27 or 28 when I'd own a house I'd say I dunno maybe never, it's too expensive. It just happened quickly because of the rent increase.
I know prices and interest rates have gone up since I bought. If I were buying now even though I make double what I made then I could probably still only afford the same house. But so what? I do make double what I made when I bought and I do live in the same house and I don't want a different one. I'd feel bad leaving all my birds and my skunk friend behind. So I'd still buy it today, even at $350k.
I was in the same situation, renting an apartment for $1800 and kept getting into it with the landlord about maintenance, so I said frick it and scavenged up enough money for a house down-payment last year.
I was wringing my wrists about it for a long time because of high interest rates and a competitive housing market, but everything all worked out in the end.
I'm a 30 y/o millennial and I have been screwed by timing over the last 12 years. The chances of me being able to buy anytime soon are very low.
>screwed by timing over the last 12 years
This is what I have been saying the whole thread. You wasted so much money on rent instead of building equity. Keep waiting more years until PrepHole finally says it’s a good market but you have some other excuse about timing.
Get your shit lined up and go for it if you ever want to be a homeowner. Over the past year I talked to so many boomers who got into like 15% mortgages in the 80s and they all said they didn’t regret it.
The timing I am referring to is entirely unrelated to me "timing" the market. I entered the workforce in 2012, did not get anything approaching a good job until it was 2015 and by 2017 when my job was seasoned enough to start applying for mortgages the down payment needed to purchase a house had already shifted out of my favor. Then Covid happened and exploded the market. I am going to wait for a little bit longer and then if I cannot find anything locally I am just going to need to move further away with my family until we can afford, but my wife refuses to entertain that as an option so we are probably never going to buy until she recognizes the error of her ways (Impossible).
>2017
>covid
Nah bro you’ve been making excuses and paying rent the past 8+ years instead of building equity in a home.
Look at the cost of homes you would be interested in buying and plug the number into a mortgage payment calculator.
But since you were too moronic to even think of this incredibly obvious first step, ima guess you will never own a home.
Yeah it's not actually impossible or even unlikely that you'll be able to own a home, just save up your money by working while living at home for as long as possible. Once you have like a 5-10% down payment and good credit you can get a mortgage loan. If living at home is not an option split with as many roommates as you can stand.
https://www.hud.gov/fha/
HUD can get you in a real house for a lower price. It takes some diligence, it is a weird federal auction thing, and you have swear to live in it personally for a while and not resell it for a longer while. They will always need TLC, and many are absolute stinkers you <really> don't want, but I live in a nice one in a nice neighborhood.