I just don't understand how it's possible for the average college grad who comes out of school with a 42K/year job to buy a house near his/her job without having to endure a 1.5 hour commute.
2007-03-07 15:47:13 · 8 answers · asked by trer 3 in Business & Finance ➔ Renting & Real Estate
Add a comment as to where you live/work.
As others have said there are many places in the US where that sort of income will be more than enough to buy a house.
In other markets $42K is more or less the closing costs that you pay when you buy excluding the down payment.
As was suggested by one I found it helped to get roommate when you are first getting started. I was renting a room in a 4 bedroom house (1 couple and 3 singles so 5 people). I purchased a smaller house a 20 miles away (vs. 10 for where I rented) and found that my monthly costs were the same once I had 2 roommates.
Costs the same but I was the owner. When I then factored in the different in my taxes I was taking home more money than before when I was renting.
It was not 'easy' and I am not sure it should be.
When doing a job search it might work better if you compare jobs & incomes on a relative basis. Factor in the cost of living and then see what job pays the best. Or pick the location that is right for your career but maybe be forced to rent.
One final alternative that is a hybrid. You can rent where you want to work and buy a home that you rent out to a tenant in another area. If the numbers make sense and the areas where you buy is good then that can provide some of the benefits of being on the property ladder (tax benefits, a hedge if house prices continue to rise, equity build up from monthly payments). It is not a perfect hedge as you are living in one market but owning in another. The two markets will not rise or fall at the same rate of speed. Definitely more hassle than not owning a rental.
2007-03-07 19:16:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It really depends on where you live. I'll make 42k a year in a few months when I start my new job and I'm looking at houses that are about 10-15 minutes away from my work place. Houses that are brand new, nice neighborhood, 2-3 bedroom with finished basement go for about 120k - 130k which I think is pretty affordable. Of course this is in Wichita, KS, a decent sized city, but nothing in comparison to most other states' largest cities. I think if you live in a big city you'd probably be best off just renting for a few years until you're absolutely sure you want to stick around for a while and you are able to save up some money. Good Luck!
2007-03-07 15:53:14 · answer #2 · answered by k_hart100 3 · 1⤊ 0⤋
I'm not sure where you live, but I just bought a house that is about 10 minutes from my school and work, and I make WAYYYY less than 42k a year. Although, I will say, buying a decent "cheap" house, was a hard task. I looked for a long time before one came along that was close enough to where I wanted to be and cheap enough that I could afford.
Good luck!
2007-03-07 15:51:01 · answer #3 · answered by Anonymous · 2⤊ 0⤋
I'm 22, I graduate with a BS in 3 months, and I own several properties.
As the first answerer said, it's about perseverance. Figure out what you can afford, then find a place that will work for you. Mortgage companies love to help out first time home buyers, so you can probably get a good rate if you have decent credit.
2007-03-07 15:54:21 · answer #4 · answered by ? 5 · 1⤊ 0⤋
It depends on where you live. Here in Houston the average person makes that much or less and buys a home easily with decent credit. Housing is cheaper than elsewhere. So.....possibly in your area but not where I live.
2007-03-07 16:04:13 · answer #5 · answered by CHERI S 3 · 2⤊ 0⤋
No mortgage companies are just tighning up on tyhe quality of loans they are doing so if you have decent credit and 10% down you should be able to get a 200k house
2007-03-07 18:30:56 · answer #6 · answered by Benjamin G 2 · 0⤊ 0⤋
Save until you have a down payment and then get roommates... lots of them. Good luck!
2007-03-07 15:54:17 · answer #7 · answered by questionmarkinthedark 2 · 0⤊ 0⤋
budget . 42 K /yr can buy more than one.
2007-03-07 15:55:44 · answer #8 · answered by sam hill 4 · 0⤊ 0⤋