Buying a House, Help!!

[NOFX]

Hey guys, I know alot of you guys have been homeowners for a while and I could use a little advice. I am about to purchase my first house.

 

I'm 24, single and Im looking at this as an investment as well as my place to live. the prices down here are really expensive. I'm currently paying 900 a month in rent now for a 1 bedroom apartment. My plan is to get a 3 bedroom place and have at least one roomate(I have someone ready to move in). I'm not completely in the dark and have some advice from co-workers and I have been watching the market since about January.

 

So a town home exactly like this one poped up on the market last friday

 

http://www.roseandwomble.com/idx/REIN/prop...N&mlsid=0623375

 

except its not an end unit and it was 172,000. I put an offer in on it over the weekend and Im now starting to question myself. The neighborhood is AWESOME. Near country club, a brand new town center, etc..etc.., but I just don't like the townhouse in general. The layout sucks and Im going to have to do some painting and removing of some old school 70's wallboard that I don't like. Plus the rooms are somewhat small and not an open floor plan.

 

I also would just much rather be living in a house than a townhome. So my question is, am I just not comfortable because its my first place and should I stick with it? Or should I continue looking until I find a house I really like. I haven't got an answer on my offer yet, so I can still pull out. If Im looking at a house, it will be something like

 

http://www.roseandwomble.com/idx/REIN/prop...N&mlsid=0619308

 

built in the 50's and the neighborhood is OK, not the ghetto or anything..

 

So what would you guys suggest?

[TheGeek]

The links dont work unless you have an account with that website.

 

This is what my mom and dad told me to do when I wanted to buy my first house: Get what you can get, fix it up to the point that you would die for the house, sell it for double the cost, and keep on upgrading through your life.

 

BUT! That works in Minnesota becuase house costs can double in 10 years or so.

[Nick Soapdish]

my advice is to pay straight cash...

 

do it Tron style, buy the baby.

[NOFX]

BUT! That works in Minnesota becuase house costs can double in 10 years or so.

 

Well 5 years ago, the same townhouse for 172,000 costs about 80,000

 

A condo for 55,000 is now selling for 138,000. Prices are crazy!!!!

[w8t4time]

my advice start small once you build equity then you can move to a house!

 

but start with something that will buffer you against any interest rate problem or income problems

 

make sure you put down more than 30% down

 

and the first 5 or 10 years double your payments

[NOFX]

my advice start small once you build equity then you can move to a house!

 

but start with something that will buffer you against any interest rate problem or income problems

 

make sure you put down more than 30% down

 

and the first 5 or 10 years double your payments

 

 

So your asking I put down $51,000 and then make a $2,400 monthly payment?

that may work back in my hometown where 100,000 gets you a 2000sq ft house and 3 acres of land.

 

 

But right now, I can get 100% finacing on this joint. FHDA loan, Im looking at $1050 monthly payment. The other loan im looking at $1190.

 

btw, Im locked it at either a 6.1% FHDA or a 6.75% regular mortgage.

 

I can afford a 1100 monthly payment if I have to, but Im getting roomates and it should be cheap. My buddy bought a townhome near here a little over a year ago for 150,000. Its now appraised at 220,000.

[w8t4time]

1100 X 360 months =396,000

 

in ten years with little to no money down you will have paid for your house/condo twice its newly appraised value!!!

 

your perceived appraised value is mute next to the interest paid to a bank and not to yourself

 

I hate owing money to banks don't like to play the lets live in debt game!

 

my numbers maybe wrong but you get my drift

 

also I think most appraised property is bumped up a little for the property taxes to be as high as possible

 

what you actually sell it for is what its worth

 

myself personally I have a condo but in ten years my monthly payment is $31!

worked like crazy payed way more and now I can kick back and save for next investment someday<edit with my condo as the down payment> I will have a greenhouse to walk to from my house---- nobody above me below me next to me---- always in my business everyday my neighbors are so nosey!!!

 

that is my dream!

Edited June 6, 2006 by w8t4time

[NOFX]

right, I see exactly what your saying. But we also have to look at this from another perspective.

 

Will I be in this townhouse 5 years from now? I don't think so.

 

Making minimum payments on this place is still investing very little into prinicpal. If I sell this for what I paid for it in 5 years, I will at least get what I put into it back, plus save a buttload in taxes each year because of interest paid each year.

 

Plus with the way the market is in this area, I am willing to bet the value of this place will exceed 200,000 within within just a few years.

 

or I can continue to pay 900 a month in rent and have nothing to show for it.

 

My dream to is to not pay rent. My parents don't have a mortgage and own 80 acres of land. I can keep this place for 4 years, sell it for 30,000 more than I paid for it. Move back home and build my own house. Not to shabby, but i dont wanna move back

[w8t4time]

some of my friends are amazed I haven't moved yet.

yes you are correct most people don't stay someplace more than 5 years you have a very valid point!