Quote:
Originally Posted by BlueGTS
Jim, I agree with your sentiments 100% but you have to understand that housing over the past 8 years is nothing like it was in the years prior. That is to say pre-2000 you could by a first home at 2x - 3x your yearly income. After 2000 that number has jumped to 4x to 5x your yearly income. The cost of houses now really makes 1st time home buying a challenge. Add to that how much you have to put down now a days and it is a daunting task. With that said, I do agree everyone should jump in as soon as possible as it is the right move.
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thank you.
not to beat a dead horse, but if you buy a house and fail it's not like your parents wouldn't help you out down the road. it's taking that first step that will get you down the path...
there are plenty of people who are doing it. hell, if you have to, grab a bunch of your freeloading friends and have them pay you to rent a room while you pay the mortgage. that kills multiple birds with a single rock.
that's exactly how i bought my first house.
also, in these trying times, the motivated seller is easier to find. that's the guy who will accept below market for the house just to get out from under it. that's also how you show the bank that you are putting your 20% into it. example, house costs 100k. seller accepts 80k, but all of the paperwork shows you bought the house for 100k. bank cuts the seller a check for 80, he walks away happy and you just got into your first home with zero dollars down. this is how i bought the house i am in right now and the numbers aren't that far off. meanwhile, i refied for a lower rate, lowered the term and put the extra dollars that i saved from the lower rate into the principal every month. instead of a 30 year term, i'll be done in 15 total (only another 6 to go) and while the housing market just took a dump on all of us, my house is still worth more than i paid for it (almost double). this is all current, not 30 years ago (when i was 14, just so you know).
many have said it, but i am not sure they've put it in these terms: while a lightening might be tempting from an enthusiast point of view, you'd be much better off with something more practical for your business. just so we know, is the 16K what you expect to get from your current car? or is it some combination of car sale, savings, etc?