Why you should buy a home as early as possible.

[Saint]

Where I live, which was a crazy hot market two years ago - no inventory, tons of people trying to buy - houses are down 15% and falling everywhere. Tons of inventory sitting around now. I know several people who bought two years ago who are down $20-30K from their original price, not to mention the $10-20K they've "invested" in the house already. One of them needs to move for their job, and now they'll be paying for an apartment + a few hundred dollars since the rent their house can get is a good bit lower than their 2% IR mortage. Assuming they can find a tenant since tons of new apartments are coming online and there is lots of vacancy.

I think about buying a house a lot, since it would be nice to have more space and be able to make it my own. But since I'm just starting on FL, it just doesn't make sense to me. Mortgages are 50% higher for a house the same size as a 2br apartment. Renting eliminates the risk of major maintenance/repair, which seems to come up every year or two with a house. I've known several people who had to take our more debt on their modest house because of things like that. I can also downgrade my apartment if I need to get leaner as I'm starting out, but downgrading a house is extremely expensive with all the fees and time.

RE makes sense for wealth preservation, passive income, or as a business if it's your main thing. But buying a house to live in "as early as possible" regardless of market conditions has started to look way less attractive in my area the last few months. Would love to hear any arguments against this though, because it will be a major decision on my mind in the next year or two.

 

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[MJ DeMarco]

Where I live, which was a crazy hot market two years ago

Where is this, approximately?

 

[Saint]

Where is this, approximately?

I'm in a major metro in a major sunbelt state. From what I've heard, this is the case in Austin too.

 

[NervesOfSteel]

Your right. Raising a family in a "warm comfortable house" is nicer. I've been in RE for 47 years, so I look at it differently from you. It is a business for me. But I also like to be personally comfortable.

I'm a retired RE appraiser. In commercial and residential situations, I have seen about every living situation a human can have. I have been able to ask the question -- why -- so I have a lot of the reasons that people do what they do. It's not binary -- renting vs. buying a home.

And the concept of "rich" is relative to the person's perspective. When I was a kid, I just wanted a house with heat and an indoor bathroom. Dad had a talent for buying houses that had neither. He was always going to build something someday. The indoor bathroom in our last family home came a few years after we moved in. They got a furnace for heat after I left home.

Where I live, which was a crazy hot market two years ago - no inventory, tons of people trying to buy - houses are down 15% and falling everywhere. Tons of inventory sitting around now. I know several people who bought two years ago who are down $20-30K from their original price, not to mention the $10-20K they've "invested" in the house already. One of them needs to move for their job, and now they'll be paying for an apartment + a few hundred dollars since the rent their house can get is a good bit lower than their 2% IR mortage. Assuming they can find a tenant since tons of new apartments are coming online and there is lots of vacancy.

I think about buying a house a lot, since it would be nice to have more space and be able to make it my own. But since I'm just starting on FL, it just doesn't make sense to me. Mortgages are 50% higher for a house the same size as a 2br apartment. Renting eliminates the risk of major maintenance/repair, which seems to come up every year or two with a house. I've known several people who had to take our more debt on their modest house because of things like that. I can also downgrade my apartment if I need to get leaner as I'm starting out, but downgrading a house is extremely expensive with all the fees and time.

RE makes sense for wealth preservation, passive income, or as a business if it's your main thing. But buying a house to live in "as early as possible" regardless of market conditions has started to look way less attractive in my area the last few months. Would love to hear any arguments against this though, because it will be a major decision on my mind in the next year or two.

My house has proved to be an asset rather a liability.
It has helped me stay positive in darkest days by serving as a fall back net of small wealth.
Since my house is set up as my comfort, it saves me a lot of time with daily routine and makes my life smooth.
I have used it as my Office, Research Lab, Prototyping workshop, warehouse, etc.
It has provided me with rental income and helped my pay a substantial chunk of its own debt.
It has provided me with a personal gym and a personal bar.
above all,
It is enabling me me to raise my children in a warm and comfy environment with substantially less mental scars that I developed in my childhood due to extreme poverty!

As for monetary gains, every house will eventually sell at a profit after a decade or so!

 

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[biophase]

Where I live, which was a crazy hot market two years ago - no inventory, tons of people trying to buy - houses are down 15% and falling everywhere. Tons of inventory sitting around now. I know several people who bought two years ago who are down $20-30K from their original price, not to mention the $10-20K they've "invested" in the house already. One of them needs to move for their job, and now they'll be paying for an apartment + a few hundred dollars since the rent their house can get is a good bit lower than their 2% IR mortage. Assuming they can find a tenant since tons of new apartments are coming online and there is lots of vacancy.

This is probably not the right time to buy. I mean I thought that way in 2008 until 2013. In hindsight, the right time to buy was 2013-2020. The window is usually huge. It's not like the right time to buy will be within a span of 6 months and you will have missed it. But you have to be monitoring it. It will be interesting to see how real estate does in the next 2-3 years.

But with that said, those people have purchased an "asset" with fixed payments, hopefully. I guess we can revisit this in 10 years and see how the several people that you know end up doing. We can compare 2033 home prices with today and 2033 rental prices with current mortgage payments. Only time will tell.

I think about buying a house a lot, since it would be nice to have more space and be able to make it my own. But since I'm just starting on FL, it just doesn't make sense to me. Mortgages are 50% higher for a house the same size as a 2br apartment. Renting eliminates the risk of major maintenance/repair, which seems to come up every year or two with a house. I've known several people who had to take our more debt on their modest house because of things like that. I can also downgrade my apartment if I need to get leaner as I'm starting out, but downgrading a house is extremely expensive with all the fees and time.

If you can't afford a house today. Don't get a house. My post was directed at people that can afford a house and choose to rent for the freedom.

But buying a house to live in "as early as possible" regardless of market conditions

Well yes, you have to look at market conditions.

I'm glad it's on your radar now, because you will be much better informed when the time comes to buy.

 

[NervesOfSteel]

This is probably not the right time to buy. I mean I thought that way in 2008 until 2013. In hindsight, the right time to buy was 2013-2020. The window is usually huge. It's not like the right time to buy will be within a span of 6 months and you will have missed it. But you have to be monitoring it. It will be interesting to see how real estate does in the next 2-3 years.

But with that said, those people have purchased an "asset" with fixed payments, hopefully. I guess we can revisit this in 10 years and see how the several people that you know end up doing. We can compare 2033 home prices with today and 2033 rental prices with current mortgage payments. Only time will tell.


If you can't afford a house today. Don't get a house. My post was directed at people that can afford a house and choose to rent for the freedom.


Well yes, you have to look at market conditions.

I'm glad it's on your radar now, because you will be much better informed when the time comes to buy.

The best time to buy is when one can afford a house without breaking one's back !
The Peak time to buy a house is when you can actually afford it and the world is undergoing a financial meltdown!

Most people who do too much mathematics are usually the ones with missed opportunities. I have been a victim of 'Mathematics and overthinking' combo and missed some massive opportunities almost a decade ago!

 

[Saint]

If you can't afford a house today. Don't get a house. My post was directed at people that can afford a house and choose to rent for the freedom.

Well yes, you have to look at market conditions.

I'm glad it's on your radar now, because you will be much better informed when the time comes to buy.

I'm finding this topic so interesting from two angles: First, I took the opposite approach in my 20s, so it's interesting to consider whether that was the right call. Financially, almost certainly not - I could've bought in that prime window in cities that blew up the last few years. But for overall life choice, I'm glad I didn't because I wouldn't trade the opportunities and experiences that being mobile opened for me. I think buying a house would've made all that a lot more difficult

Second, I'm wrestling with this because I could buy a house right now. I also just had a baby, so the idea of having some extra space sounds really nice. Since I'm just starting my FL journey though, and given the market, it doesn't make sense to me financially now. A downpayment would cut my runway 20-30%. Getting a house that would be an even modest improvement over my apartment would cost 50% more per month, further reducing my runway, plus open me up to huge risk of 5-digit expenses coming out of nowhere. And again, the market's falling in my area.

Before, financially I should have but didn't want to. Now I want to, but financially I don't think I should. If you found where you want to settle, which I finally have, and you can buy a house in a reasonable market, then I'd agree, you should buy a house as early as possible. I'm definitely going to keep monitoring it.

 

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[MJ DeMarco]

Here's a fact: If you buy a house and plan to live in it for the rest of your life, it doesn't matter what happens to prices. And by no means does this mean you can't travel and go on a month long cruise.

Afterall, isn't this what Buffet and Munger like to preach? That they've lived in the same damn house for 9,000 years? I wonder if they are fretting over the price they paid for their house last century.

 

[EvanOkanagan]

My ex girlfriend did especially well with this strategy.

I bought 7 homes including a primary residence between 2013-2018. Buying fixer-uppers/dated homes in above average areas that I was able to make some improvements to. Also in areas that had potential future zoning changes (to increase density).

She had no money down, didn't need to deal with financing (all in my name), and no headache with dealing with any of the properties or tenants. She's never made more than 40-50k/year and was able to walk away with approx 1m tax-free in 2021.

TL;DR Get a cohabitation agreement kids!

 

[andrea532]

Here's a fact: If you buy a house and plan to live in it for the rest of your life, it doesn't matter what happens to prices. And by no means does this mean you can't travel and go on a month long cruise.

Afterall, isn't this what Buffet and Munger like to preach? That they've lived in the same damn house for 9,000 years? I wonder if they are fretting over the price they paid for their house last century.

Hi MJ DeMarco.
I would like to have my say on this topic and then tell me if I'm wrong or not.
I speak mainly for the Italian context but I believe the same method can be used all over the world.

If your plan and fastline there must be very specific conditions to purchase your first home, unless you have already purchased it.

First of all you must have a lot of liquidity available which allows you to create both your future business and which allows you to give the mortgage advance, the famous 20% if this is also the case in other states.

Another condition could be the support of this 20% from your parents, so that you can use your savings for your future business.

According to once the mortgage is made the installment must be 25% of your salary, I understand that it is very little for some but if you follow a fastline you cannot afford for the mortgage installment to hinder your plans such as rent.
So on 1000 euros your mortgage should be 250 euros.

As written in MJ's books it is a short sacrifice for a better future, because once you have started your business and saved the money for passive income for life you will be able to close your mortgage or renovate this house if and what you want and much more.

I hope this answer was helpful to all those people who read this post thinking that the message was to just buy the house.

I thank MJ de Marco for his books if it weren't for him I would still be here saving 10% to retire in 40 years.

I thank everyone who every day reading your posts motivates me in creating my e-commerce.

 

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[biophase]

I'm finding this topic so interesting from two angles: First, I took the opposite approach in my 20s, so it's interesting to consider whether that was the right call. Financially, almost certainly not - I could've bought in that prime window in cities that blew up the last few years. But for overall life choice, I'm glad I didn't because I wouldn't trade the opportunities and experiences that being mobile opened for me. I think buying a house would've made all that a lot more difficult

You could have bought a home and then rented it out. Then you could still had the same freedoms.

 

[MartinG]

I often wonder why people complicate this question and ponder on right times to buy or debate on the viability of owning an asset as 'fastlane'. Things are never black and white.

Money in asset is always good, as assets nearly always go up over a long period of time. And you can always buy and have someone else in it to pay off your mortgage.

 

[Kak]

Another good reason...

The government will never get its hand out of the cookie jar.

Most people don't understand this concept, but every dollar SPENT by government is really our collective tax burden. Even if it isn't directly paid by check. Thankfully a bunch of foreign suckers have USDs or it would be worse.

That money comes from somewhere. Make no mistake, inflation is a tax and it's as likely to stop as actual taxation.

Now they're talking rate cuts in March... Lol... Time to go home shopping.

 

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[Kak]

I thought this was kind of interesting.

I was of the impression that buying with cash now is a great opportunity to get a good deal before they drop rates and home values go crazy again, but now I'm starting to think the bubble hasn't truly burst.

I've been casually looking around at homes because we need something bigger, and I'm truly in awe at how many multi-million dollar homes there are. Are there really that many "wealthy" people? One after another after another. Hundreds hundreds of homes. I've always been of the impression that most Americans were flat broke.

On the other hand, every home being expensive isn't a new thing to people from a lot of other states and Canadians... and the market stays incredibly expensive.

 

[EvanOkanagan]

I thought this was kind of interesting.

I was of the impression that buying with cash now is a great opportunity to get a good deal before they drop rates and home values go crazy again, but now I'm starting to think the bubble hasn't truly burst.

I've been casually looking around at homes because we need something bigger, and I'm truly in awe at how many multi-million dollar homes there are. Are there really that many "wealthy" people? One after another after another. Hundreds hundreds of homes. I've always been of the impression that most Americans were flat broke.

On the other hand, every home being expensive isn't a new thing to people from a lot of other states and Canadians... and the market stays incredibly expensive.

I live in a medium-size city in Canada. "Average" home price here is still hovering around 1m.

Even if you put 200k down, interest alone is about $4,000 on the mortgage. With principal, insurance, and taxes in you're about $7,000/mo. That's $84,000/year in house payments for someone to live in an "average" home here if they buy right now. Not very sustainable with these elevated rates, and if they don't see a sharp reversal going to be some further issues this year IMO.

 

[Kak]

I actually did a short radio show on the affects of interest rates on home affordability a while back.

SHORT: Rate Hike Effects on Real Estate Markets

Listen to this episode from Kyle Keegan Radio Show on Spotify. I explain what increasing interest rates does to the affordability of real estate. If rates keep rising, real estate will keep falling.Become a supporter of this podcast...

open.spotify.com

 

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[Timmy C]

I live in a medium-size city in Canada. "Average" home price here is still hovering around 1m.

Even if you put 200k down, interest alone is about $4,000 on the mortgage. With principal, insurance, and taxes in you're about $7,000/mo. That's $84,000/year in house payments for someone to live in an "average" home here if they buy right now. Not very sustainable with these elevated rates, and if they don't see a sharp reversal going to be some further issues this year IMO.

I live 40 minutes from the CBD of Melbourne, Australia.

Average home prices here are between $600,000 to one million dollars.

For years people have said prices would crash here, for decades they have said this. Yet it never happens.

Add to that a government propping it up with record levels of immigration, restricted supply, and government programs to prop up the scam I don't see it stopping.

It won't crash, they'll never let it happen.

They always intervene and prop it up with some new scheme.

 

[Sinewave_Sam]

I bought my house in 2014 after just turning 22. I had no intentions of ever renting, and had saved up enough for a large down payment on a small home. I bought my "starter" home for $76,900 in the small town I grew up in. At the time I was making $15/hr and based all of my bills off of that. Mortgage, taxes and insurance was $550.

To this day I'm still living in that 1,100 sq ft home and still loving it. Best investment ever made. I now make over 3 times that amount at my 7-5, and can easily pay my mortgage on what my business is currently bringing in. Sadly I only visit now because of how much I work out of town...

 

[Choate]

In a bit of a situation here, any advice welcome.

Living with ex-gf, we broke up. Boston area rents are insane, was paying $2900/mo here (split) and studios and 1BRs start at $2k and up. Decided today I want to buy and then at some point I thought of the forum, and specifically this thread.

What sort of closing costs might I be looking at for an FHA loan? Probably looking at a $250k-$300k house and trying to keep total payment under $2500/mo, but I'm willing to be house poor for a bit. My back is up against the wall. Income is increasing (currently $120k, I could probably push for $200k this year), but my upfront down payment won't be high, looking at $10k right now.

I've got like a 2 month timeline so I'm looking to do this ASAP.

 

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[ZackerySprague]

I know that this may be a controversial topic, but I want to give you a few examples of people that I know that are slowlaners but are actually doing very well vs. some aspiring "fastlaners" that aren't anywhere in the same position. This topic came to mind when another friend was shocked when he learned that one of our mutual friends had a decent net worth despite having a low paying job.

Example 1: I had a friend who we will call Amy who made $7/hr back in 2008. Back then a city in the Phoenix area had a first time homebuyers program. The city would pay up to $50,000 down payment for a home, but the catch was that when she sells the home, the first $50,000 is returned to the city. She qualified for the program due to her low salary.

So she bought a home for $100,000. With a $50k down payment from the city, she got a loan of $50,000 at something like 4.5%. She was able to qualify for a house on a salary of under $15,000 a year!

Today her home is worth $375,000. Her house equity is probably $170kish and she is lucky to have a nice fixed $500 mortgage payment on her current home until its paid off. If she had continued renting, she wouldn't be able to afford anything today!

Example 2: I have another friend who we will call Julie. I have known her since 2008. She has never made more than $35k per year. She bought a house for $88k in 2000. Today her house is almost paid off (she's been making an extra $100 payment per month). Today her house is worth $340k. Her equity is $330k. There is no way she could have saved that amount in 20 years on $35k a year.

These are two examples of people who would have huge issues in surviving today if they had not purchased a home years ago. Rents in their areas are $2500 a month for a home in their area. They would have been priced out a long time ago. But because of their purchase, they are paying $500 and $450 a month in mortgage payments.

I contrast this to others I have known who consistently make $75k-$150k per year but never buy a home. They lived the digital nomad life or the lifestyle business life of renting a nice loft in the city. 5-10 years later, their net worth is close to zero and they cannot afford a home any more due to the prices and interest rates.

I can already hear the naysayers saying, but if you reinvest everything back into your business, that's a much higher ROI. I agree. But this is assuming your business is successful. What I would tell any 20 year old aspiring entrepreneur is that if your business is doing well, invest into a home first, then the rest into your business.

That's insane for how low those prices were back, but that's a good ROI. Happy for them, truly. That's awesome! I wish I had a loan at 4.5% at $50,000 for a home! I WISH. I would have done this, if I was around at that time!

Rent is not cheap now days. On average it's $1,500, no matter what metro you go to or big city. Sometimes even $2,000 or more!

This is steal!

 

[biophase]

In a bit of a situation here, any advice welcome.

Living with ex-gf, we broke up. Boston area rents are insane, was paying $2900/mo here (split) and studios and 1BRs start at $2k and up. Decided today I want to buy and then at some point I thought of the forum, and specifically this thread.

What sort of closing costs might I be looking at for an FHA loan? Probably looking at a $250k-$300k house and trying to keep total payment under $2500/mo, but I'm willing to be house poor for a bit. My back is up against the wall. Income is increasing (currently $120k, I could probably push for $200k this year), but my upfront down payment won't be high, looking at $10k right now.

I've got like a 2 month timeline so I'm looking to do this ASAP.

I've never gotten an FHA loan so I don't know if those closing costs will be different than a normal loan.

With that said, you would be looking at things like title insurance, appraisals, paperwork fees and loan origination fees. My guess is somewhere around $5k-$10k in closing costs. This will all be rolled into the loan.

Looks like your payment for $240k loan at 7% is around $1700.

You will have to find out what your real estate taxes will be, and HOA fees, if any. And don't forget your homeowners insurance. These can easily add up to past $800/mo.

 

[TempusFugit]

Does anyone have advice for a 24 year old husband and father of one making $66k/year on this topic given the current economic environment?
My wife and I want to buy a house within the next few years, but I'd honestly rather have the start of a Fastlane business and pay for a house that way instead of buying a house in need of renovation and then selling it for profit. Wherever our next home is, it is going to be permanent.

 

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[wanttogofaster]

Does anyone have advice for a 24 year old husband and father of one making $66k/year on this topic given the current economic environment?
My wife and I want to buy a house within the next few years, but I'd honestly rather have the start of a Fastlane business and pay for a house that way instead of buying a house in need of renovation and then selling it for profit. Wherever our next home is, it is going to be permanent.

It depends. If you are in a high-cost-of-living area, you may not even be able to afford anything with that salary.

If you are in a medium or low-cost-of-living area, I would buy something and have a manageable monthly payment for the next few years. If interest rates increase, you can still afford a place to live. If interest rates drop, you can always refinance and have an even lower monthly payment.

The good news is that according to this article, most of the US (assuming you are in the US) is a medium to low-cost-of-living area!

How does 'the least affordable housing market in recent memory' look in your area? Check our map

California has the top four counties with the highest median home values, nationwide. Explore housing market prices across the US with these maps.

www.usatoday.com

If you do not have any business experience, you should not spend a lot of money starting one. In most cases, you should be able to start something with next to nothing. So whether you start a business or not should not impact your house-buying decision.

Also, at 24, I doubt your first home is going to be your "permanent home". Things change, you may need to move for whatever reason, you could have more kids and need extra space, you may want a smaller home or you may not want to maintain all that acreage, after all, just to name a few.

 

[yrybri]

I know that this may be a controversial topic, but I want to give you a few examples of people that I know that are slowlaners but are actually doing very well vs. some aspiring "fastlaners" that aren't anywhere in the same position. This topic came to mind when another friend was shocked when he learned that one of our mutual friends had a decent net worth despite having a low paying job.

Example 1: I had a friend who we will call Amy who made $7/hr back in 2008. Back then a city in the Phoenix area had a first time homebuyers program. The city would pay up to $50,000 down payment for a home, but the catch was that when she sells the home, the first $50,000 is returned to the city. She qualified for the program due to her low salary.

So she bought a home for $100,000. With a $50k down payment from the city, she got a loan of $50,000 at something like 4.5%. She was able to qualify for a house on a salary of under $15,000 a year!

Today her home is worth $375,000. Her house equity is probably $170kish and she is lucky to have a nice fixed $500 mortgage payment on her current home until its paid off. If she had continued renting, she wouldn't be able to afford anything today!

Example 2: I have another friend who we will call Julie. I have known her since 2008. She has never made more than $35k per year. She bought a house for $88k in 2000. Today her house is almost paid off (she's been making an extra $100 payment per month). Today her house is worth $340k. Her equity is $330k. There is no way she could have saved that amount in 20 years on $35k a year.

These are two examples of people who would have huge issues in surviving today if they had not purchased a home years ago. Rents in their areas are $2500 a month for a home in their area. They would have been priced out a long time ago. But because of their purchase, they are paying $500 and $450 a month in mortgage payments.

I contrast this to others I have known who consistently make $75k-$150k per year but never buy a home. They lived the digital nomad life or the lifestyle business life of renting a nice loft in the city. 5-10 years later, their net worth is close to zero and they cannot afford a home any more due to the prices and interest rates.

I can already hear the naysayers saying, but if you reinvest everything back into your business, that's a much higher ROI. I agree. But this is assuming your business is successful. What I would tell any 20 year old aspiring entrepreneur is that if your business is doing well, invest into a home first, then the rest into your business.

Hey, just wanted to say I think the stories are interesting and you're making a good point, but what in the case if you're really young and not really certain? If I'm planning to move out at a young age wouldn't it be better to rent to not lock myself financially to a house that I'm not even certain I want to settle in for life? Just my two cents as a complete financial noob. Thanks

 

[WilliamSherman]

If you're starting a business or your income goes up and down, thinking about getting a house early is really smart. Sure, putting money back into your business could bring in more money later, but there's no guarantee it'll work out. On the other hand, buying a house is like getting something solid that usually gets more valuable as time goes by. Plus, you could rent it out, enjoy stable monthly payments with a mortgage, and even save some on taxes.From my point of view, saving up to buy a house is a good move. When you use your savings to help pay for it, you end up borrowing less money. This means you'll pay less interest over the time you're paying back the loan.

 

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[Choate]

I've never gotten an FHA loan so I don't know if those closing costs will be different than a normal loan.

With that said, you would be looking at things like title insurance, appraisals, paperwork fees and loan origination fees. My guess is somewhere around $5k-$10k in closing costs. This will all be rolled into the loan.

Looks like your payment for $240k loan at 7% is around $1700.

You will have to find out what your real estate taxes will be, and HOA fees, if any. And don't forget your homeowners insurance. These can easily add up to past $800/mo.

Thanks a lot for this info. It was really useful at the time, and I now have a quick update on my situation.

Ended up moving out, locking down a 14 month lease in a cheaper one bedroom. To my surprise, about a week later, loan officer came back and said I was preapproved for up to $285k, with another $15k coming from down payment assistance and getting rolled into the cost of the loan, so my only costs would be the costs of closing, so maybe around $10k if I understand correctly.

I'm not sure if I would be overextending myself if I purchase a home while still renting, and what the costs/time commitment might be in turning that around quickly to rent out ASAP, knowing nothing about landlording. Could get a cheap place in western MA by UMass and rent it out to students pretty easily though, since greater boston area is royally f*ed.

Seems like a good opportunity, but my back would be against the wall in a way I've never experienced before, for better or worse. I'm still super cash tight atm but high income, think I'd be in a much better place while still within the confines of this 3 month (extendable to 4 months) preapproval.

 

[araknid]

We live in one of the most expensive places in the UK in terms of housing (2 bedroom, 1 bathroom houses averaging £600k+), and may stay here for 5+ more years because of my wife's career. It's very hard to know if prices will go down and interest rates at the moment make borrowing expensive. But we are leaning towards buying soon because renting long term does feel like a waste at times (for us, realise this is not true for everybody).

 

[Einfamilienhaus]

Bro get out of here with the "oh dream big but make sure to be ready to settle for less" mentality.

We just recently had a massive thread about how this is toxic and helping noone.

Serious question. Where Can I find this thread?

 

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[Choate]

Update on my situation. Fully settled in now to my new place, $2300/mo in rent. Still have a preapproval until June, which is good for $300k with $25k in down payment, meaning that I'd have virtually zero closing costs - would just need $1k or $2k, monthly payment for that down payment assistance through the state would be an extra $160.

Considering a duplex that I could move my parents into and then renting out the other side, since this has to be owner occupied (and I could do that with my parents living there as I could be there part time).

This will definitely stretch the income but I have a strong desire to get grounded with home ownership ASAP. If I could manage the above situation, I might look at buying a condo or house in a couple years.

The question would be can I manage $2300 in rent and then whatever the cost of a $300k house would be? I am also finishing a Master's degree which will be done by next summer, got another $20k to come up with for that. Need to double my income to $200k this year. No reason that I can't do that. Time to put the pressure on.

 

[ryanbleau]

I decided to buy first house last year. Been in it for about a year. I wanted to move to Florida but I'm cheap and wasn't going to spend $500k on my first house. Having been a general contractor, hard work doesn't scare me. I bought a shell of a house on some land for less than $75k and put around $30k into the remodel.. Today it's valued at around $300k. The deals are out there for kids that want to put in the work.