NT's Homeowners, I need help.(25+ come on in)

[thunderchunk69]

Originally Posted by BTK

bought a home for 300k under FHA, put down 10%, the PMI does suck. But by copping the house, I took out an equity loan for 100k and started my own business, now the crib is paid off 4 years later in full including the second mortgage. Every year I'm just paying excises taxes and insurance now

I would never take that risk but you got that off
PROPS!

 

[cjdynasty]

Originally Posted by jschue

Originally Posted by CJDynasty

4wrestling, I definitely remember you place, and 2K a month on a 250K condo is

!

Man call me silly, but I am envious at you guys being able to save that 20%!! How long did it take for you all to do that? Maybe for me, since I just graduated (last May), and just started working (Aug.) thats why it seems like an unbelievable task. And I make good money!

Stupidest thing I did after graduating college (2005) was buy a car.  Best thing I've done last few years?  Pay off my damn car

 Now I take the money I WAS using for my car loan and stick it savings.  Now my car has 100k on it, but hell, its paid for, reliable, and I'm saving mucho $$$.  Also check with your employer- they may have savings options as well.  I participate in my employers employee stock purchase plan.  I take 5% of every pay check and buy company stock at a 15% discount.  And tax returns?  Don't do the stupid thing and buy something you don't need.  File that away into your savings.  It helps me if I have the savings done automatically.  Out of sight, out of mind.    It adds up...and quick.  

   Yea,  I had to buy a car.  I had a 98 Expedition with 190+ miles on it.  Was just getting too expensive to maintain.  My car note is managable though (200 a month for a 07 Altima).  But you are right.  I need to get better with stashing some cash away.  I too am putting 5% into savings at work.  I guess its more of a marathon than a sprint with this savings game. 

 

[ayipapi]

Just skimmed through the thread and I would say congrats...its refreshing to see dudes actually caring about there future (just came outta thread where dudes are crying cause FTL cut there monthly sneaker allowance from $1000 to $500 A MONTH)..

Geographically..I'm not familiar with the SouthWest in terms of real estate...being a NYC area resident I can give you advise on what worked for me when I was your age..(which was a DIFFERENT time...ANYONE could get a mortgage)..your first home should be considered an Investment...one day your gonna get married and have kids..trust..you and your NEW family wont want to live In YOUR place...your gonna want a new place together...so it might put you in a situation where 5years from now..you have a spot your trying to sell to upgrade to a new spot...with that being said my suggestion would be this...purchase a condo (again geographically might not make sense but NYC metro it does)..

.go FHA..put as little down as possible...the trick to getting RICH in America is use OTHER peoples money...Like someone else said equity has no value until you cash out...putting more down won't help you qualify easier (unless you have a debt to income issue) so more money down (unless it's more then 20%) only avoids PMI..even the difference between $5k down $10k down is minimal in terms of month to month payment ($100k @ 5% 30yr= $536.82 +tax insurance / $110k @ 5% 30yr= $590.50 + TI) Now some is gonna say hey that's $55 a month for 30 years which adds up...don't be fooled...you could take that $10k put it in the market and get a better net return in 30 years...you could also take that additional money and pay down debt...my point is you have more options with the cash then having $55 dollars amount in additional cash flow...

Again thinking long term..should you decide to move..get married..whatever..you now have a piece of investment property...based on the prices of homes...I'm gonna assume that condo's are half that amount...renters exist in EVERY market....buyers have to clear hurdles to purchase..but rent ors will always need a place..based on estimated $800 a month (once you factor in MTN fees etc) you should always be able to rent it out to cover your mortgage...or worst case sceniero refi to adjust your payment down...homes are MUCH tougher to rent...plus..in time..the condo will be paid for..you'll be in a other spot which is also being paid for..and the condo becomes almost a retirement fund that you can take an income from..use as a piggy bank and borrow from..or sell and cash out the equity...

I'm 31..I have two condos which I rent and a house which I just bought...I committed as little money as possible to each with the thinking being a long term strategy...large money down only matters if you plan to sell within 5 years..your protecting yourself against market factors..but WHEN you sell your really just getting your money back not making profit as it would seem..it does protect from going upside down..if you have a long term strategy with real estate...you'll NEVER lose money...good luck and congrats..

 

[cjdynasty]

Originally Posted by Ayipapi

Just skimmed through the thread and I would say congrats...its refreshing to see dudes actually caring about there future (just came outta thread where dudes are crying cause FTL cut there monthly sneaker allowance from $1000 to $500 A MONTH)..

Geographically..I'm not familiar with the SouthWest in terms of real estate...being a NYC area resident I can give you advise on what worked for me when I was your age..(which was a DIFFERENT time...ANYONE could get a mortgage)..your first home should be considered an Investment...one day your gonna get married and have kids..trust..you and your NEW family wont want to live In YOUR place...your gonna want a new place together...so it might put you in a situation where 5years from now..you have a spot your trying to sell to upgrade to a new spot...with that being said my suggestion would be this...purchase a condo (again geographically might not make sense but NYC metro it does)..

.go FHA..put as little down as possible...the trick to getting RICH in America is use OTHER peoples money...Like someone else said equity has no value until you cash out...putting more down won't help you qualify easier (unless you have a debt to income issue) so more money down (unless it's more then 20%) only avoids PMI..even the difference between $5k down $10k down is minimal in terms of month to month payment ($100k @ 5% 30yr= $536.82 +tax insurance / $110k @ 5% 30yr= $590.50 + TI) Now some is gonna say hey that's $55 a month for 30 years which adds up...don't be fooled...you could take that $10k put it in the market and get a better net return in 30 years...you could also take that additional money and pay down debt...my point is you have more options with the cash then having $55 dollars amount in additional cash flow...

Again thinking long term..should you decide to move..get married..whatever..you now have a piece of investment property...based on the prices of homes...I'm gonna assume that condo's are half that amount...renters exist in EVERY market....buyers have to clear hurdles to purchase..but rent ors will always need a place..based on estimated $800 a month (once you factor in MTN fees etc) you should always be able to rent it out to cover your mortgage...or worst case sceniero refi to adjust your payment down...homes are MUCH tougher to rent...plus..in time..the condo will be paid for..you'll be in a other spot which is also being paid for..and the condo becomes almost a retirement fund that you can take an income from..use as a piggy bank and borrow from..or sell and cash out the equity...

I'm 31..I have two condos which I rent and a house which I just bought...I committed as little money as possible to each with the thinking being a long term strategy...large money down only matters if you plan to sell within 5 years..your protecting yourself against market factors..but WHEN you sell your really just getting your money back not making profit as it would seem..it does protect from going upside down..if you have a long term strategy with real estate...you'll NEVER lose money...good luck and congrats..

Great read, and well appreciated!  I have a quick question for you.  I will shoot you a PM to avoid thread jacking...  

 

[money making a]

Originally Posted by LazyJ10

580 a year? Try 363 a month

HOA fees are ridiculous

I've been looking for a condo in the downtown seattle area for awhile and for all the high rises HOA fees are $450+/mo minimum. Even the condos and townhouses in some of the nicer suburbs cost that much a month, absolutely absurd... High HOA fees along with $400+/sqft

 

[leopardbrain]

Originally Posted by SneakerPro

Originally Posted by bc60997

Originally Posted by SneakerPro

Originally Posted by DEpast

Never pay what you can "afford".

Always go a little cheaper. Or you could be stuck.

Yeah $150K isn't reasonable for me right now.

I'd be sitting in my big +!% house that I don't need and not able to afford to furnish or "pimp"

I'm spending 115K tops, I don't want anything to change about my current lifestyle I just want to own a home instead paying rent to get noise complaints for smashing my chick(real reason I started to think about buying a house)

I live in Dallas as well, actually I lived in Frisco and now I live out in Las Colinas...Here is the best advice I can give you b/c I am the same age as you.  DO NOT BUY A HOUSE UNLESS YOU PLAN TO LIVE HERE FOR A LONG TIME.

You mentioned that you live in one of the fastest growing cities in America.  What you failed to realize is that there is more land out here than one can imagine.  They build out not up in DFW.  You will gain NO EQUITY in buying a house and the appreciation on houses in our area are some of the WORST IN THE COUNTRY for a city our size.  I would hold onto your money for another 5-10 years before looking to buy a house.  I am an investment banker and used to restructure mortgages so believe me when I say I know what I am talking about. 

In the end the decision is yours, but I would strongly advise you not to purchase a home anytime in the near future atleast not in the DFW area if you are looking for your money to go into the positives.  Much better investment routes you could take with that the money you would spend on a mortgage and up keep than to sink it into a house in our areas market.   

PS - Please don't look at HMS - I know you seen the commercials

.

"Bless your heart"

I'm not buying a home to invest. It just doesn't make sense to me to keep paying rent. For the exact same cost I pay right now I can own a decent home. Realistically the only place I would even think about leaving the DFW for is Miami or Southern Cal but those are more pipe dreams

Even if I don't buy a house I wouldn't leave the DFW anytime soon. The things I don't like about the DFW are prevalent in all major cities except the weather(its too dawn cold here for me)

HOA fees are a dealbreaker for me as well. Bastards can come take your house even if you own it and paid it off.

I

  

 he get's me every time! Anyways, have you ever considered East Dallas? Like Mockingbird area or Lake Highlands? Also, (I know off topic) I work off of Legacy! Feels good to run into locals!

 

[jschue]

For you guys paying HOA fees on your house what does that include? I'm only really familiar with condo HOA's.

 

[supermanblue79]

Originally Posted by jschue

For you guys paying HOA fees on your house what does that include? I'm only really familiar with condo HOA's.

My HOA fees for my subdivision are only $165 per year.
That includes street lighting, cutting the grass in the common areas, road/sidewalk/driveway maintenance.

 

[lazyj10]

Mine was for a condo -

Exterior insurance
Garbage/recycling
Water (which is the reason we've has one increase over 3 years)
General/common area maintenance

Those are the main ones.

Anyone who may buy a condo, ask to see the most recent HOA financials. Make sure your building has adequate reserves.

If you're moving into new construction, safe bet the initial HOA will be raised.

Lastly, if anyone is facing foreclosure or a short sale...keep paying your HOA and Property Tax. They can and will put liens on your place which makes matters harder for you.

 

[timcity2000]

it would be interesting to see a thread where people post pics of their houses/condos, how much they bought it for (and when), what city they live in, etc. just for comparison's sake.

 

[cjdynasty]

Originally Posted by TimCity2000

it would be interesting to see a thread where people post pics of their houses/condos, how much they bought it for (and when), what city they live in, etc. just for comparison's sake.

 

[ualreadyknow23]

Originally Posted by jschue

For you guys paying HOA fees on your house what does that include? I'm only really familiar with condo HOA's.

My subdivision is fairly large with alot of small "sub-subdivisions" within it.  We have 3 large pools, all of which are free to homeowners; two with splash pads and mini water slides.  We have I think 2 tennis courts, and two clubhouses.  There's a golf course and country club in my subdivision but I'm not sure if HOA has anything to do with that.  We have heavy police patrol (if you speed through, you WILL get a ticket, no doubt), landscape maintenance is done weekly, twice a week trash pickup, and overall just keeps the neighborhood nice and property value from declining.  

I have to say for a 10+ year old neighborhood, it has been kept up immaculately so honestly I can't really complain about the $580/year.  I just know I have friends in smaller neighborhoods that pay like $200/year so I get

 when I think about mine.  But I guess for all the stuff we get it's worth it.



- Preciate it.
  

 

[SneakerProSr.]

I guarantee my house or any house for that matter isn't going to depreciate at a rate of $10000 a year for five years.

Because that's what I throw away in rent.

 

[dwele farooq al suleed afzul]

You pay 866 a month in rent?

And I agree with you btw on buying a house because you want to live in and therefore being less concerned about the immediate appreciation or depreciation. Good luck on getting what you want, I think you will. Tell me about Frisco and Addison in short though. What makes those cities desirable as Dallas suburbs/alternatives? http://www.trulia.com/pro...enade-Rd-Frisco-TX-75035

You have to step your handyman game up though as a homeowner and as just part of the evolution of becoming a grown man.

Point will come where you decide you don't like that color in the living room anymore, or that you want to go hardwood instead of carpet, or bamboo instead of hardwood, or change the granite on the countertops, add some shelving to the closet, etc. DIY has a show called "10 grand in your hand" where the contractor shows you how to save 10k in improvement jobs by doing it yourself. It's amazing how little work actually adds up to that and the relative simplicity. It's more tedious and long than difficult, yet it's still only 1 weekend worth of elbow grease.

You should keep us updated. And how salty are your neighbors going to be who are probably 2 income families with children and they see a young brotha move next door on his own? You will be the talk of many neighborhood watch meetings and old @%% lady gossip sessions. "Who is he? I heard he plays in the NFL. Go talk to him and ask?! I'm not going, you do it Bethesda. "

 

[mr jordan04]

Originally Posted by ooIRON MANoo

Originally Posted by Mr Jordan04

Originally Posted by DeNs415

I scooped my house in April of 2009 i believe, I'm turning 25 this August. Copped a 3 bedroom, 2 bath in Pittsburg CA for $90K.
  

i cant even get a ninjahood's size room shack in cali LA for that price

Just to add some perspective, that's like buying a pad in Corona, Colton, etc. 

I'm saving up, still, hope to jump in the market by the end of the year.  I have no shame in asking my realtor to look up foreclosure listings.

Still finding a decent house for under $200k is a $!!++%$ pipe dream.  I want to stay as close to the city as possible.  I would rather pay a little more than live my life on a freeway, commuting everyday

.

where you looking? house or condo? how much you giving down?

im thinking about a condo, but those damn hoa fees have me

 

[airjapan707]

Originally Posted by jschue

For you guys paying HOA fees on your house what does that include? I'm only really familiar with condo HOA's.

My HOA is 40 a month and includes access to a community pool and rec center, and maintenance of the parks in our development.

 

[ooiron manoo]

Originally Posted by Mr Jordan04

Originally Posted by ooIRON MANoo

Originally Posted by Mr Jordan04

Originally Posted by DeNs415


  

where you looking? house or condo? how much you giving down?

im thinking about a condo, but those damn hoa fees have me

I'm looking at Houses.  Open to a few areas and looking to put anywhere from $25-40k down. 

 

[SneakerProSr.]

Originally Posted by Dwele Farooq Al Suleed Afzul

You pay 866 a month in rent?

And I agree with you btw on buying a house because you want to live in and therefore being less concerned about the immediate appreciation or depreciation. Good luck on getting what you want, I think you will. Tell me about Frisco and Addison in short though. What makes those cities desirable as Dallas suburbs/alternatives? http://www.trulia.com/pro...enade-Rd-Frisco-TX-75035

You have to step your handyman game up though as a homeowner and as just part of the evolution of becoming a grown man.

Point will come where you decide you don't like that color in the living room anymore, or that you want to go hardwood instead of carpet, or bamboo instead of hardwood, or change the granite on the countertops, add some shelving to the closet, etc. DIY has a show called "10 grand in your hand" where the contractor shows you how to save 10k in improvement jobs by doing it yourself. It's amazing how little work actually adds up to that and the relative simplicity. It's more tedious and long than difficult, yet it's still only 1 weekend worth of elbow grease.

You should keep us updated. And how salty are your neighbors going to be who are probably 2 income families with children and they see a young brotha move next door on his own? You will be the talk of many neighborhood watch meetings and old @%% lady gossip sessions. "Who is he? I heard he plays in the NFL. Go talk to him and ask?! I'm not going, you do it Bethesda. "

Addision has tons of stuff for young people to do. The first year I lived in Dallas I was right on the Addision/Dallas border and had a ball.

Frisco is just awesome. Tons Fortune 500 companies close by, everything is brand new and there is a ton of money around here. A lot of athletes/celebrities live in the area. In the last two weeks I've ran into Randy White, Tony Dorsett, Del Harris,Deion Sanders.  Mike Ribero because they all live out here. The negative are that its definitely a place for familes because the city shuts down at 12.

Random but Del Harris is easily the nicest "famous" person I've ever met. Guy gave me tickets to a Legends game then called me back the day met him to see if I wanted to go to the game that night. Real good dude.

 

[haydenhouser]

This thread was the most worthwhile thing I've ever read on NT. Props to the author and a pat on the back to all the contributors..

There are responsible people under the age of 30..

It was encouraging to hear your guys' stories. Motivation too. I've wanted to buy a home for a while now. Renting is giving other people money.

I'm only 20, but have savings and equity in stuff apart from real estate. I'm from Eugene, OR. Prices here are higher than you think. The quality of living is great.

 

[mr jordan04]

Originally Posted by ooIRON MANoo

Originally Posted by Mr Jordan04

Originally Posted by ooIRON MANoo

Originally Posted by Mr Jordan04

Originally Posted by DeNs415


  

where you looking? house or condo? how much you giving down?

im thinking about a condo, but those damn hoa fees have me

I'm looking at Houses.  Open to a few areas and looking to put anywhere from $25-40k down. 

i have about 20 right now, but ideally id like to do 30-40.
where are you seeing houses for low 200's?
  

 

[theswoosh]

My wife and I bought a home in November 2010. It's in a fantastic neighborhood: Lake washington is 1.5 blocks away, 3 parks .5 miles away, grocery store is 5 blocks away, and there are a few spots to eat and coffee shops all with in walking distance. Our main decision was to buy into a neighborhood with low crime and a great atmosphere. People actually say hello to each other here.

OP it's a great time to buy, but your single so you should really consider buying a home that will appreciate in 5-7 years (when the market comes back around) so if you need to you can sell. Last but of advice is to buy a home that YOU can work on. Cause repairs and general up keep in no joke.

For everyone else, the wife and I made a blog that walks you though our kitchen renovation. http://sewardpark.wordpress.com. The whole project cost us 2 months (working on it nearly everyday) and around $15K to do.

 

[mr jordan04]

Originally Posted by TheSwoosh

My wife and I bought a home in November 2010. It's in a fantastic neighborhood: Lake washington is 1.5 blocks away, 3 parks .5 miles away, grocery store is 5 blocks away, and there are a few spots to eat and coffee shops all with in walking distance. Our main decision was to buy into a neighborhood with low crime and a great atmosphere. People actually say hello to each other here.

OP it's a great time to buy, but your single so you should really consider buying a home that will appreciate in 5-7 years (when the market comes back around) so if you need to you can sell. Last but of advice is to buy a home that YOU can work on. Cause repairs and general up keep in no joke.

For everyone else, the wife and I made a blog that walks you though our kitchen renovation. http://sewardpark.wordpress.com. The whole project cost us 2 months (working on it nearly everyday) and around $15K to do.

damn, props on all the handy work.
this is the 2nd time i see a washer/dryer in the kitchen area. is this common?

  

 

[theswoosh]

^ it is in Europe. Our kitchen was once 2 rooms (Kitchen and Laundry room) and honestly we have no other place to put the W/D. Eventually we are going to replace our furnace and hotwater heater for baseboard heaters and a tankless h20 heater. But were talking at least $8K in work so that wont be for a while.

 

[acbboyz84]

Smh living in California is way too expensive. Wish i can afford a house

 

[moneymike88]

i wonder what the results of this thread would have been if it was made on ISS