What's a good age to be a homeowner? How old were you when you bought your first house?

[SuperMachoMan]

Originally posted by: dullard
It all depends on the area you choose to live in.
1) Some places that condo you describe is $80k, some places it is $400k.
2) Association fees (if applicible) vary widely. I just bought my house and when I was looking 95% of houses had no association fees and those that did were ~$100-$300 annually. $3k may association fees may exist where you live, but that certainly isn't true in most places.
3) $3k is high for insurance. That $400k condo would insure for ~$1200 in areas where earthquakes don't cause lots of damage.

Lets do the same numbers in another area of the country. A typical 800 sq ft apartment in Nebraska is $600 a month in good condition. A typical 2000 sq ft house here is $175K in good condition. Interest + insurance + tax + association fees is $800 a month on that house (then of course $200 a month in principle which you are essentially paying yourself). So for $200 a month more you get 3-3.5 times the living space (remember that 2000 sq ft doesn't include fully finished basements). That doesn't even include tax benefits. After tax, or if you get a slightly smaller house, it costs the same or less per month to buy than it does to rent.

Over time, that $600 a month in interest and $200 a month in principle, those numbers start changing. The interest drops to zero and the principle increases toward $800. Thus if you were even at the beginning, after 10 years you are much better off with a house.

Of course this assumes the house price doesn't decrease (which after inflation DID occur in many locations in the late 80s).

I absolutely agree that it does depend on the local market. Local price/rent ratios is a very important consideration just as price/earnings ratios are important when evaluating stocks. Also the amount of leverage used in purchasing a $175K home is signicantly less so there is much less risk involved. Leveraging yourself to purchase a $500K home could mean financial ruin in the event of a market downturn.

I just think it is important to consider all the cashflows involved rather than making the blanket statement that "rent is throwing money away" or "home prices only go up or sideways". A home is an asset like any other with an appropriate value. There is always a limit at which point it becomes more profitable to rent rather than own, investing your savings in other vehicles.

 

[Ender]

I love all the people who rent apartments. My parents are making a fortune off them

 

[civad]

originally posted by: Sampson
The good age is when you can afford it and are ready to settle down in one area for a length of time.

Buying a house is not a good prospect for everyone, keep that in mind.

Agreed. I have been working for abt 2 years at my current job.
The pay is good, and so are the growth opportunities, but I'm 26 and this is my first job. I plan to move to a different job / place after 2 years. In that case, I dont see too much sense in buying a house since I *might* be tied down to this place.

And then there is my cousin who moved form PA to NJ with her family because of her husband's job. Their house in PA isn't rented for the past several months (the area has high rents) and they have to pay both the mortgage for the house as well as the apartment in NJ.

 

[alkemyst]

Originally posted by: SampSon
I'm so sick of you southern california whiners.

South Florida is not much better and there are young buying homes as well.

It all depends on what you did young. I was working a good bank job since I was young plus worked food delivery at night a few nights a week. My bank job + some side jobs on computers and detailing got saved and my delivery job was money out....I had my first 7 years of college covered.

Coming out of school I had another good job due to my banking experience. Not much debt a house was an easy purchase. I also had $40k to put down on it. Thing is there were other's younger than me with way more, esp those coming out of the dot com craze.

You have some 16-17 year olds pulling in $50k+, living at home with parents still paying all bills. When they get a little older they usually go to the house instead of renting.

Of course there are many that never get a house due to improper money management or not making enough to save any yet alone support their life style.

 

[tec699]

Originally posted by: BD2003

Originally posted by: Epoman
Fvck man most of you people are saying you bought a home at 20-25 years of age. GODDAMN you all must not live in Southern CALIFORNIA! Theres not a house for under $350,000 unless you want to live in a very gang poplulated, Cockroach infested area. At $350,000 a mortgage after P&I and Taxes, Insurance would be $2,000+ A month. I'm 32 and my dream is own a stinking house. I could afford it if I move out to the sticks.

I hear that. One of my friends parents just got offered 400,000 for the biggest dump POS house I have ever seen in my life. The apartment my parents have been renting for 30 years is worth 300,000 as a condo, and its in a dirty, disgusting area.

Where do all you people live that you can afford to buy a HOUSE at 25 and under?

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

I think $75K is damn good money especially when you compare what you make to the national average. Maybe you should find a mate who is a professional? Put togeter the two incomes and you'll probably have close to $150,000K a year coming in.

In souther Nj you can find a decent house for $250,000 but the really nice ones go for $350,000 and higher. I have a different perspective. Why would anybody want to lock themselves down with a 30 year old mortage when their only 22 years old? I would rather save up the money for a substational downpayment for a home when I'm in my early to mid 30's.

 

[BD2003]

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

Yeah, I suppose it is comparing apples to oranges. For the time being I cant see myself getting out of the city...its not such an easy thing. I dont know how SoCal compares to NYC, but its an entirely different experience living here, in a huge city. Most people here dont seem to understand this. I hear how much less expensive the rest of the country is and I can barely believe it...its THAT different. I almost feel like I need a reality check reading this thread because of people buying houses at 20-25!

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

It really pisses me off when people say "only 75k". How out of touch do you have to be to not be able to live on 75k? You could afford a house on that even in NYC, as long as you aren't foolish with your money.

 

[alkemyst]

Originally posted by: BD2003

Selling a house is not as easy as selling a car. Buying a house is only an option when youre willing to settle. I certainly am not willing to settle. It is both a practical and financial decision to pay 500 bucks a month to rent a place with roomates, compared to buying a house that would cost at least 2000 dollars a month, along with maintaining it. For my current situation, buying simply is not an option, although I may not exactly be the target audience. Taking into account the housing market in my area (new york city), I dont see how any 24 year old could possibly be expected to afford any sort of house, even with a wifey.

None of your post is based on reality.

Selling a house is often times a quicker process than cars. Your agent gets you major exposure and all agents would love to get a taste of the commission. With a car you are on your own.

As far as NYC, I don't know but there are plenty of people living there. It has to do with finances. If you are scraping away at that $500 a month, a house is unrealistic....but as far as being financially stable at 24, I was....my brother was even more so making 6 figures .... tons of young to mid 20's in the last 10 years made fortunes got big $$$ jobs. I wouldn't be surprised if there werent at least 10 self made millionaires under the age of 24 in NYC right now.

Å

 

[Ender]

Originally posted by: tec699

Originally posted by: BD2003

Originally posted by: Epoman
Fvck man most of you people are saying you bought a home at 20-25 years of age. GODDAMN you all must not live in Southern CALIFORNIA! Theres not a house for under $350,000 unless you want to live in a very gang poplulated, Cockroach infested area. At $350,000 a mortgage after P&I and Taxes, Insurance would be $2,000+ A month. I'm 32 and my dream is own a stinking house. I could afford it if I move out to the sticks.

I hear that. One of my friends parents just got offered 400,000 for the biggest dump POS house I have ever seen in my life. The apartment my parents have been renting for 30 years is worth 300,000 as a condo, and its in a dirty, disgusting area.

Where do all you people live that you can afford to buy a HOUSE at 25 and under?

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

I think $75K is damn good money especially when you compare what you make to the national average. Maybe you should find a mate who is a professional? Put togeter the two incomes and you'll probably have close to $150,000K a year coming in.

In souther Nj you can find a decent house for $250,000 but the really nice ones go for $350,000 and higher. I have a different perspective. Why would anybody want to lock themselves down with a 30 year old mortage when their only 22 years old? I would rather save up the money for a substational downpayment for a home when I'm in my early to mid 30's.

And in the meantime waste money by renting? The interest might be high, but property appreciation is also a strong factor for purchasing a house.

 

[BD2003]

Originally posted by: alkemyst

Originally posted by: BD2003

Selling a house is not as easy as selling a car. Buying a house is only an option when youre willing to settle. I certainly am not willing to settle. It is both a practical and financial decision to pay 500 bucks a month to rent a place with roomates, compared to buying a house that would cost at least 2000 dollars a month, along with maintaining it. For my current situation, buying simply is not an option, although I may not exactly be the target audience. Taking into account the housing market in my area (new york city), I dont see how any 24 year old could possibly be expected to afford any sort of house, even with a wifey.

None of your post is based on reality.

Selling a house is often times a quicker process than cars. Your agent gets you major exposure and all agents would love to get a taste of the commission. With a car you are on your own.

As far as NYC, I don't know but there are plenty of people living there. It has to do with finances. If you are scraping away at that $500 a month, a house is unrealistic....but as far as being financially stable at 24, I was....my brother was even more so making 6 figures .... tons of young to mid 20's in the last 10 years made fortunes got big $$$ jobs. I wouldn't be surprised if there werent at least 10 self made millionaires under the age of 24 in NYC right now.

Å

My post is most definintely based in reality, but we appear to be coming from entirely different realities. First of all, Im only just scraping by by your definition of it. I come from a very poor family. I could afford to pay more than $500 a month, I just choose not to. Yet I consider myself financially stable. I managed to pay my way through college with minimal debt, with barely any help from my parents. They live in another state now, and I am completely on my own.

On top of that, things are quite a bit different for college grads nowdays then they were 10 years ago.

And there are something around 10 million people in NYC, so that figure means nothing. Besides, Im not even trying to become a millionaire.

All Im trying to get across is that what the average joe has in NYC, is not what the average joe has in the midwest or in the suburbs.

 

[alkemyst]

Originally posted by: BD2003

I just graduated college a year ago. Everything I know and love is in this city, I have been here my entire life. I am getting ready to move out of the city sooner than later, but right now I do enjoy living with the people that I live. That alone is worth the $500 a month. They might stay here in the long run, but I certainly am not.

There is not a single realtor or house seller in this entire city that would allow me to do what you suggest. They would laugh in my face. Maybe on long island somewhere, but certainly not here.

Its kind of like a catch-22 in stuck in here. If I want to move, I need a car and a job wherever Im moving to. But I cant afford a car where I currently live. And therefore I cant get a job, or even really scout out apts wherever Id move to. And Im not leaving my gf, just to move somewhere else. Maybe in a few years she can come with me, but not right now.

I have considered moving to southern CT, but I dont even know where to begin to find a job there, especially without a car.

The second paragraph shows you don't understand how this works....the seller could give two craps, he gets a sales draft...the bank is were you're going to make or break that situation. Some banks won't allow rental income to be part of the qualifying, some will....you usually also need good credit and a job.

It's not that 24 yo can't do this, it's just that most havent gotten that serious. Being that you can't even afford a car, a home is definitely out of your league. You don't need to have a car to own a home, but you do need income for it.

Your real excuse is you can't afford it, you can rationalize that no one else can because of your situation.

Also the property values are also usually sided with higher incomes so you can't compare one state to the next....the best way to do it it to work in a higher paying place and commute out of state/area which is very possible in the New England area...you get the spending power plus more economical living.

It's all a tradeoff....but again you just don't want a house, no way you are going to believe anyone else telling you it's not that hard.

 

[SuperMachoMan]

Originally posted by: BD2003

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

Yeah, I suppose it is comparing apples to oranges. For the time being I cant see myself getting out of the city...its not such an easy thing. I dont know how SoCal compares to NYC, but its an entirely different experience living here, in a huge city. Most people here dont seem to understand this. I hear how much less expensive the rest of the country is and I can barely believe it...its THAT different. I almost feel like I need a reality check reading this thread because of people buying houses at 20-25!

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

It really pisses me off when people say "only 75k". How out of touch do you have to be to not be able to live on 75k? You could afford a house on that even in NYC, as long as you aren't foolish with your money.

I have no complaints about $75K or about my quality of life at that salary. I simply said it is irresponsible to borrow $500K on a salary of $75K/year. Do you disagree?

The traditional lending standard before the fed brought us artificially low interest rates and get-rich-quick financing gimmicks (subprime lending, interest only loans, etc.) was 2.7 x annual income. People purchasing homes with $500K interest only ARM's on $75K salaries are in for a world of hurt when interest rates rise and when Freddie Mac/Fannie Mae finally go under.

 

[alkemyst]

Originally posted by: SuperMachoMan

I won't argue the fact that purchasing a home has traditionally been a sound financial decision. But for people living in an inflated housing market like myself and Tomato, I believe it makes more financial sense to rent rather than own due to the facts:

1) You save a significant amount of money monthly that can be used to invest in better performing financial instruments.
2) I believe that housing prices will decline significantly in the next few years as they did in the early 90's
3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

You also don't understand the way it works...you post above about how the interest and taxes were part of throwing the money away shows that....all of that is a writeoff, being that you make $75k which is a higher tax bracket you can use the writeoffs.

1) The best performing investment right now is real estate....that is why most of hte market is so high...investors are willing to put there money in the almost guaranteed 10% annual return.

2) significantly? I don't think anything but a slight blip....no investors lost major money in real estate during that time....if you are referring to those that could only hold a property for a few months, real estate is a slow gainer.

3) I don't know what's large at $75k to you, but assuming you are single or just have a girl then you don't need a crazy house. You can even buy a house you rent out somewhere and in return use that to pay your own rent. You just have to think it all out.

Most people though can't buy a house due to too much debt, using the not strapped down excuse to justify it.

 

[BD2003]

Originally posted by: alkemyst

Originally posted by: BD2003

I just graduated college a year ago. Everything I know and love is in this city, I have been here my entire life. I am getting ready to move out of the city sooner than later, but right now I do enjoy living with the people that I live. That alone is worth the $500 a month. They might stay here in the long run, but I certainly am not.

There is not a single realtor or house seller in this entire city that would allow me to do what you suggest. They would laugh in my face. Maybe on long island somewhere, but certainly not here.

Its kind of like a catch-22 in stuck in here. If I want to move, I need a car and a job wherever Im moving to. But I cant afford a car where I currently live. And therefore I cant get a job, or even really scout out apts wherever Id move to. And Im not leaving my gf, just to move somewhere else. Maybe in a few years she can come with me, but not right now.

I have considered moving to southern CT, but I dont even know where to begin to find a job there, especially without a car.

The second paragraph shows you don't understand how this works....the seller could give two craps, he gets a sales draft...the bank is were you're going to make or break that situation. Some banks won't allow rental income to be part of the qualifying, some will....you usually also need good credit and a job.

It's not that 24 yo can't do this, it's just that most havent gotten that serious. Being that you can't even afford a car, a home is definitely out of your league. You don't need to have a car to own a home, but you do need income for it.

Your real excuse is you can't afford it, you can rationalize that no one else can because of your situation.

Also the property values are also usually sided with higher incomes so you can't compare one state to the next....the best way to do it it to work in a higher paying place and commute out of state/area which is very possible in the New England area...you get the spending power plus more economical living.

It's all a tradeoff....but again you just don't want a house, no way you are going to believe anyone else telling you it's not that hard.

On one hand there are people posting that they make only 75k, and dont feel that they can afford a house. Not to mention thats way above the national average.

On the other hand, youre missing the entire point. Im not speaking for anyone else outside of my situation. But there are SO MANY people in "my" situation where I live. Maybe its the exception to the norm, Im just telling you how it is around here. Most of my fellow grads dont have jobs. The ones that do, are doing alright. But no one is anywhere near to buying a house. I dont know a single person, and I have not met a single person my age in my entire life in NYC who owns a house, or is remotely close to buying one.

Maybe this is an entirely different experience then what you are used to from growing up, so things seem so "simple". But for more people than you can count, its not that simple.

 

[BD2003]

Originally posted by: SuperMachoMan

Originally posted by: BD2003

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

Yeah, I suppose it is comparing apples to oranges. For the time being I cant see myself getting out of the city...its not such an easy thing. I dont know how SoCal compares to NYC, but its an entirely different experience living here, in a huge city. Most people here dont seem to understand this. I hear how much less expensive the rest of the country is and I can barely believe it...its THAT different. I almost feel like I need a reality check reading this thread because of people buying houses at 20-25!

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

It really pisses me off when people say "only 75k". How out of touch do you have to be to not be able to live on 75k? You could afford a house on that even in NYC, as long as you aren't foolish with your money.

I have no complaints about $75K or about my quality of life at that salary. I simply said it is irresponsible to borrow $500K on a salary of $75K/year. Do you disagree?

The traditional lending standard before the fed brought us artificially low interest rates and get-rich-quick financing gimmicks (subprime lending, interest only loans, etc.) was 2.7 x annual income. People purchasing homes with $500K interest only ARM's on $75K salaries are in for a world of hurt when interest rates rise and when Freddie Mac/Fannie Mae finally go under.

Now might not be the best time, and you might have to live a little further away from the city than you'd like, but most families dont even make that much money, so if you cant do it, no one can.

 

[SuperMachoMan]

Originally posted by: Ender

Originally posted by: tec699

Originally posted by: BD2003

Originally posted by: Epoman
Fvck man most of you people are saying you bought a home at 20-25 years of age. GODDAMN you all must not live in Southern CALIFORNIA! Theres not a house for under $350,000 unless you want to live in a very gang poplulated, Cockroach infested area. At $350,000 a mortgage after P&I and Taxes, Insurance would be $2,000+ A month. I'm 32 and my dream is own a stinking house. I could afford it if I move out to the sticks.

I hear that. One of my friends parents just got offered 400,000 for the biggest dump POS house I have ever seen in my life. The apartment my parents have been renting for 30 years is worth 300,000 as a condo, and its in a dirty, disgusting area.

Where do all you people live that you can afford to buy a HOUSE at 25 and under?

Take a look at where these people live. Most live in the mid west and the south. Housing in these parts of America is awefully cheap especially when compared to the East and West Coast. What does a nice house in Indiana cost? $150,000 maybe? Come to NJ and I guaranntee you most of these people would be renting like the rest of us. How many 23 year old individuals can afford a $350,000 home? I don't know of any.

3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

I think $75K is damn good money especially when you compare what you make to the national average. Maybe you should find a mate who is a professional? Put togeter the two incomes and you'll probably have close to $150,000K a year coming in.

In souther Nj you can find a decent house for $250,000 but the really nice ones go for $350,000 and higher. I have a different perspective. Why would anybody want to lock themselves down with a 30 year old mortage when their only 22 years old? I would rather save up the money for a substational downpayment for a home when I'm in my early to mid 30's.

And in the meantime waste money by renting? The interest might be high, but property appreciation is also a strong factor for purchasing a house.

It makes no difference to me whether I give my money to a landlord as rent or to a mortgage lender/management company/government as interest/fees/taxes. That money is gone either way.

Furthermore I believe that housing prices in Southern California are artificially inflated due to artificially low interest rates and unethically easy lending standards and will decline in the future. Prices will decline as interest rates rise and even more people are priced out of the market. Even with interest rates at historical lows there are currently record shattering numbers of forclosures and bankruptcies in America.

 

[SuperMachoMan]

Originally posted by: alkemyst

Originally posted by: SuperMachoMan

I won't argue the fact that purchasing a home has traditionally been a sound financial decision. But for people living in an inflated housing market like myself and Tomato, I believe it makes more financial sense to rent rather than own due to the facts:

1) You save a significant amount of money monthly that can be used to invest in better performing financial instruments.
2) I believe that housing prices will decline significantly in the next few years as they did in the early 90's
3) It would be financially irresponsible to leverage myself into such a huge purchase while making only $75K a year.

You also don't understand the way it works...you post above about how the interest and taxes were part of throwing the money away shows that....all of that is a writeoff, being that you make $75k which is a higher tax bracket you can use the writeoffs.

1) The best performing investment right now is real estate....that is why most of hte market is so high...investors are willing to put there money in the almost guaranteed 10% annual return.

2) significantly? I don't think anything but a slight blip....no investors lost major money in real estate during that time....if you are referring to those that could only hold a property for a few months, real estate is a slow gainer.

3) I don't know what's large at $75k to you, but assuming you are single or just have a girl then you don't need a crazy house. You can even buy a house you rent out somewhere and in return use that to pay your own rent. You just have to think it all out.

Most people though can't buy a house due to too much debt, using the not strapped down excuse to justify it.

1) Do you really believe that real estate will continue to appreciate at several times the rate of inflation indefinitely? You do realize that that would mean that 95% of the population would be unable to afford a house within a decade, right? And yes I do get better than a 10% return on my investment portfolio.

2) Yes significantly. That is my personal belief, it is by no means written in stone. As for the early 90's, many middle class people in Southern California were abandoning their homes and declaring bankruptcy rather than paying off their mortgages because they were so far underwater. It makes absolutely to sense to pay off a $500K mortgage at 6% interest on something that is worth $400K.

3) For reasons I have stated, I would not buy a house even if I did have enough money. It does not make financial sense to me.

 

[alkemyst]

Originally posted by: SuperMachoMan

1) Do you really believe that real estate will continue to appreciate at several times the rate of inflation indefinitely? You do realize that that would mean that 95% of the population would be unable to afford a house within a decade, right? And yes I do get better than a 10% return on my investment portfolio.

You are very uneducated in this....your better than 10% is earned more than likely by another's choices. What's it in by the way, how liquid is that, and are you counting employer contributions in that gain, how much money too? With a few grand high gains are easy as the risk is low....serious money is in real estate right now due to it's so cheap to buy.

I don't know what numbers you are trying to use, but just take any 10 year period, 20 year period, and 30 year period in real estate and the gain is clear. Also not everyone can buy a home, you are one example of that. There is a lot of outside variables but the gain is clear in real estate...you gain slowly over the long run....but you always gain. Again there are always rare exceptions, some yeehaw spends $250k on a log cabin in the middle of nowhere it may be only worth $50k in reality.

2) Yes significantly. That is my personal belief, it is by no means written in stone. As for the early 90's, many middle class people in Southern California were abandoning their homes and declaring bankruptcy rather than paying off their mortgages because they were so far underwater. It makes absolutely to sense to pay off a $500K mortgage at 6% interest on something that is worth $400K.

You are talking a depressed area, there are bad decisions made everywhere and any investment...do you idiots from South CA realize there are other places to live...talk about running through life with blinders on.

3) For reasons I have stated, I would not buy a house even if I did have enough money. It does not make financial sense to me.

You don't have the money therefore it doesn't make sense because you wish it that way. You know the potential you are throwing away and are in denial.

 

[alkemyst]

This thread is a prime example of all the misconceptions of home buying and also old info.

In our parents day you needed 20% down. It made sense too as the interest on the loan was excessive.

Now you have 103% financing available for those with excellent credit (your rating is not = to excellent credit, just a start)....you can borrow at 5-6%, less on a 3, 5, 7, 10 year adjustable and reinvest that downpayment in another property or investment. The extra interest you are paying all up front is a direct write off, as is the taxes. Even some improvements are deductable.

Now take all your debt and refiance it into the house with a HELOC or equity line (illegal in some places like TX because people cannot manage their own money there)....now you have interest there that unlike credit card CAN be written off. Plus every dollar you put in to principal should always be able to be gotten back (except in extremely rare situations).

Saving for years right now is bad, especially if you have any debts. It's so funny to hear people socking $100-200 away a month at 3-7% if lucky and paying $200-300 in interest on credit debt each month...your money will be worth less in the future too giving you less buying power. This is one of the rare primetimes to buy if you can....saving for the future instead of just jumping into a home you can afford now is really idiotic.

Say you hate the house in 3-4 years...you sell it...you should be able to recoup all the investment and more. There are calculators to show this....most people can't grasp it in there heads....even homeowners...many don't realize what they can write off and what loan products are right for them.

 

[SuperMachoMan]

You're a mortgage lender, right? Or a real estate agent?

 

[BatmanNate]

22

 

[Eli]

My girlfriend and I are going to buy a house ASAP.

Rent is a waste of money.

 

[PowerMac4Ever]

Originally posted by: minendo
As soon as you can buy one, buy.

and

Originally posted by: SampSon
I'm so sick of you southern california whiners.

 

[alkemyst]

Originally posted by: SuperMachoMan
You're a mortgage lender, right? Or a real estate agent?

me? neither, my father has been in charge of lender and now secondary marketing since I was a kid...I worked in the mortgage banking industry since I was about 12 on the secondary marketing side and the bulk purchase/sell of BCD paper until I was about 28 and decided it had become a career and no longer was just a job I did for better money.

I currently work for a mortgage lender again on the system admin/analyst side of things taking my mortgage and computer knowledge and combining them.

As far as RE agents, being in south florida I think 1 in 4 people are one I know a lot of them though.

 

[SuperTool]

I am 24, make over $70K, and I am not buying a house in the bay area. I think it's "hella" expensive here. I don't think these prices are sustainable, and if they are, I am not interested in sustaining them. I think when it comes time for me to purchase a house, I will move out of here to somewhere less expensive. This is a nice place to get experience and education, but long term, it's just too expensive.

 

[SuperMachoMan]

Originally posted by: alkemyst

Originally posted by: SuperMachoMan
You're a mortgage lender, right? Or a real estate agent?

me? neither, my father has been in charge of lender and now secondary marketing since I was a kid...I worked in the mortgage banking industry since I was about 12 on the secondary marketing side and the bulk purchase/sell of BCD paper until I was about 28 and decided it had become a career and no longer was just a job I did for better money.

I currently work for a mortgage lender again on the system admin/analyst side of things taking my mortgage and computer knowledge and combining them.

As far as RE agents, being in south florida I think 1 in 4 people are one I know a lot of them though.

I could tell that was not the first time you have given that sales pitch!

Look... I am not trying to pick a fight with you. I understand that home ownership has historically been a wonderful investment with tremendous tax benefits, particularly over the past few years. I am envious that people like your father and your employers have been able to make a killing off the mortgage/refinancing boom. And of course I wish I had had the forsight to buy a home a few years ago rather than rent.

I simply believe that housing prices in Southern California are unsustainable at their current levels and that it would be unwise to purchase in such an environment. I believe that as interest rates rise and wages decline, consumers will not have the spending power to support near term price appreciation. Subprime borrowers and 103% financing people will feel the sqeeze and forclosures will increase. The mortgage backed securities market will suffer and lenders will be forced to reign in lending standards. These are my personal beliefs, you are entitled to your own. I am not the only one who feels this way, Sir John Templeton predicts price declines of 90% in overheated markets.

I live in Orange County California where the real estate situation in not unlike the one you describe. Do you think an economy where half the people are employed buying and selling real estate/mortgages is sustainable? Do you think you company will continue growing indefinitely as it no doubt has the past few years? The people you sell 103% ARM financing and who are repeatedly getting HELOC's to pay off their credit cards... Are they not overextending themselves? What happens to them when interest rates go up a few points and their monthly payments go up $500?

Like I said, this is just my opinion and I feel no further need to justify it. I most certainly can "afford" to buy a home on 103% financing, but I am putting my money where my mouth is.