My fiancee and I are both going to be 20 soon. He will be finished with school this year and his current job wants to start him out at about 55,000 a year with fantastic benefits. I will be finished with school in May of 2008. I have had my job for about 3 years, and when i finish school i will only be making about 30,000 dollars (child care field)
We are planning to move out of my moms house around the year 2009, so that he has about a year and a half to work, and so that i can get started in my career and save some money as well.
He has a theory that sounds pretty smart. He says he does not want to rent a place, ever. In Connecticut, the cost of rent(To rent somewhere half way decent)is about the same as a mortgage payment. Between the two of us, we are planning to save about 80,000 dollars for a downpayment on a small condo/appartment.
Any tips/suggestions/comments?
2007-02-11 02:05:20 · 7 answers · asked by ? 4 in Business & Finance ➔ Renting & Real Estate
If you have seen this question twice, its because i posted it in the wrong category before.
Also, when i say "school" i mean college. He is going for his A&P in airplane mechanics and I am going for my associates in early childhood education (When the time is right, i do intend on going back for my masters ....there are certian situations preventing it from happening right now)
2007-02-11 02:06:36 · update #1
That's a wonderful idea!
But I caution you to not just go to the bank that you have your checking account with to get a loan, you need to shop for your best interest rate.
Mortgage BROKERS are your best best because unlike a bank they have many lenders they deal with and because of this can almost always have a better rate than a stand alone financial institution.
A few tips as well. When you buy your first home make sure you pick one that will maximize your return when you resell it. Starter homes are an important part of the market and getting one that has as many desirable features will help you when you go to move up to your next one.
You will be well ahead of the curve if you come out of the gates and buy a home. Ever wonder how those with a modest income end up with great homes later in life? They build the equity when they are young and roll it into a new purchase.
Good luck!
2007-02-11 04:03:10 · answer #1 · answered by Tim Nolder, Professional Realtor 2 · 0⤊ 1⤋
Thats great, I am 22 now and my wife 21, we bought our house in FL 2 years ago with the same idea and forsight to see a little struggle now to pay more now will really set us up in the future. I am also a Realtor and have many clients that use a mortgage calculator or a banks table of payments and see that it is only a couple bucks more or the same as renting. However the difference is upkeep and maintenance and taxes and insurance. Which are usually escrowed with your payment and can sometimes be a 1/4 to 1/2 of your payment, so when you start getting serious talk to insurance agents and get quotes on rates and you should be able to get quotes on prop. insurance through your counties property appraisers website. And def. get a home inspection to assure yourself you will not need big repairs soon. You have a great idea and a good plan, good luck and it is almost always better to buy then rent, so if you have to buy a little cheaper place to afford the taxes and stuff, remember it will almost always go up in value and you are paying monthly into equity like a savings account rather than rent that you have nothing to show for at the end of your lease.
2007-02-11 13:52:16 · answer #2 · answered by Jeff T 2 · 0⤊ 0⤋
Buying a home has wonderful tax benefits because you can deduct the interest on the mortgage, and the real estate taxes from your tax return.
The value usually goes up while you have a 30 year fixed mortgage payment, if you choose a fixed mortgage - and I always recommend that one.
A rental never has a fixed payment - for more than the lease and always seems to go up - and you have nothing if it increases in value.
GOD bless you and get prequalified by your banker or credit union where you have your checking or savings account. That way you both will know how much of a mortgage payment you can handle.
Get a good real estate broker to work with you and find just the right place.
Make sure if you both put your money into the place that both names are on the mortgage and on the title to the property.
GOD bless all of your decisions, always.
MBA-Boston Univ.
CPA-retired
I worked my way through college by selling real estate!
2007-02-11 10:17:43 · answer #3 · answered by May I help You? 6 · 0⤊ 1⤋
FANTASTIC!!!
you are on track to a great future, if you are in a position to buy verses renting. When you rent you are giving your money away,never to see it again. With the incentives for first time home owners you can get started very affordably.My advice is to start with something you can easily afford(things always come up ) get that one paid for then you can buy the house that you
really want , that way you don't stretch your budget as bad, when you go to buy....compare banks interest and plans. You will save alot of money
2007-02-11 10:32:14 · answer #4 · answered by barry h 2 · 0⤊ 1⤋
Jess hi that's great. Save money buy place not throw it away in rent. Getting broker, lawyer help - hope it works 4 U. Busines & stuff @ yor age takes plan, lots of advice & comitment! God Luk
2007-02-11 16:39:44 · answer #5 · answered by PervyRetard 5 · 2⤊ 0⤋
As long as you both know where you want to settle down, there is no reason not to buy if you can afford it.
2007-02-11 10:44:27 · answer #6 · answered by psycmikev 6 · 0⤊ 0⤋
I say it sounds like a smart idea, although make sure your credit is good.
2007-02-11 10:13:48 · answer #7 · answered by Aphrodite 3 · 0⤊ 0⤋