First Home

[pschnei3]

How did people save up for their first home?

[Dmitriy@AUTOcouture]

Originally Posted by Paul Douglas Schneider

How did people save up for their first home?

Still saving for a condo in tribeca, I'm 22 and renting in the city... however I'm planning on moving back with the parental units to save up some dough, the city is EXPENSIVE!!

[DFW_M]

Originally Posted by Paul Douglas Schneider

How did people save up for their first home?

Well, first off...starting with the Bimmer instead of home was a mistake on your side...

Next, there are programs for the first time buyers that enable you to get in with little or no money down.

Also, you should look for the location, not necessarily for a big and nice(st) home. Look for the area that would appreciate.

Our first home was in 1998, 8 months fresh out of college with the college loan on my back. We got into the townhome, you could see the Ocean out of the 2nd story window. We paid about $110k for it. 2.5 years later we sold it for $250k. After that, it was easier. Now, we have no mortgage (age 34).

[Nicholas]

Originally Posted by dr325i

Well, first off...starting with the Bimmer instead of home was a mistake on your side...

[MoreCowbell]

Originally Posted by Nicholas

Come on now...first off, the guy works hard. I'm 31, and I have never owned a damn thing.

It's about priorities. At age 22, I would have chosen the car over Real Estate as well, and i'm sure just about almost everyone on the board, when they were 22 would have made that same choice.

Let's also realize this. Let's say that his car payment is $500 a month. That's 6k per year. If he wants to live in NYC, his mortgage payment will be around 3g a month for the smallest livable apartment. So he delays his real estate purchase for a 2 months...it's a good trade-off in my book, but to each his own.

Also,he is 22. If he wants to buy real estate, at favorable terms, he is going to have to establish some "hard" credit. The Bimmer does that for him.

There is a trend on this board, that has been here for the year I have been a member, to flame young BMW owners. And i've been part of that because I think a lot of the sub-25 year olds got the car from mommy and daddy(an utter disgrace) but that's not what happened here.

The guy is also doing a damn fine job at selling me my first mortgage, which hopefully I will be signing any day now.

[findtom]

Originally Posted by gluck75

Come on now...first off, the guy works hard. I'm 31, and I have never owned a damn thing.

It's about priorities. At age 22, I would have chosen the car over Real Estate as well, and i'm sure just about almost everyone on the board, when they were 22 would have made that same choice.

Let's also realize this. Let's say that his car payment is $500 a month. That's 6k per year. If he wants to live in NYC, his mortgage payment will be around 3g a month for the smallest livable apartment. So he delays his real estate purchase for a 2 months...it's a good trade-off in my book, but to each his own.

Also,he is 22. If he wants to buy real estate, at favorable terms, he is going to have to establish some "hard" credit. The Bimmer does that for him.

There is a trend on this board, that has been here for the year I have been a member, to flame young BMW owners. And i've been part of that because I think a lot of the sub-25 year olds got the car from mommy and daddy(an utter disgrace) but that's not what happened here.

The guy is also doing a damn fine job at selling me my first mortgage, which hopefully I will be signing any day now.

Well said.

I think the key point there is that relative to NYC real estate a 325i E90 is a pretty minor purchase decision.

[flush01]

worked my ass off, was at the right place at the right time... at 21 had my first 350k house, now at 23 just moved into 5xx k house... need to pay this off as quick as i can ... my advice, when u get a house, keep prepaying as much as you can, it will kill alot of interest

[MoreCowbell]

Originally Posted by findtom

Well said.

I think the key point there is that relative to NYC real estate a 325i E90 is a pretty minor purchase decision.

Thank You. Exactly!!!

And as far as NYC Real estate. It's going to my first home purchase. And at 7 figures, let's just say, i'm..well...nauseas....

[findtom]

Originally Posted by gluck75

Thank You. Exactly!!!

And as far as NYC Real estate. It's going to my first home purchase. And at 7 figures, let's just say, i'm..well...nauseas....

Even in NYC 7 figures should get you a pretty sweet pad. Congrats.

I better start up E90post cribs 2007.

[flush01]

btw, i really wanted to dump more $ into the house instead of getting 335, but sometimes stupid decision is a good one

[MoreCowbell]

Originally Posted by flush01

but sometimes stupid decision is a good one

Like 7 figures on an apartment....

[flush01]

Originally Posted by gluck75

Like 7 figures on an apartment....

ya i heard NYC has insane prices... here in t.o. you can get 4bedrooms/4bathrooms 2 car garage 3000 sq.ft. for around $550-600k... how much is it in NYC ?

[DFW_M]

Originally Posted by gluck75

Come on now...first off, the guy works hard. I'm 31, and I have never owned a damn thing.

It's about priorities. At age 22, I would have chosen the car over Real Estate as well, and i'm sure just about almost everyone on the board, when they were 22 would have made that same choice.

Let's also realize this. Let's say that his car payment is $500 a month. That's 6k per year. If he wants to live in NYC, his mortgage payment will be around 3g a month for the smallest livable apartment. So he delays his real estate purchase for a 2 months...it's a good trade-off in my book, but to each his own.

Also,he is 22. If he wants to buy real estate, at favorable terms, he is going to have to establish some "hard" credit. The Bimmer does that for him.

There is a trend on this board, that has been here for the year I have been a member, to flame young BMW owners. And i've been part of that because I think a lot of the sub-25 year olds got the car from mommy and daddy(an utter disgrace) but that's not what happened here.

The guy is also doing a damn fine job at selling me my first mortgage, which hopefully I will be signing any day now.

Well said.

Though, the point is not a $500 BMW payment only. THe point is in priorities. Usually, at the age of 22 if you have a Bimmer, you allowed yourself some other luxuries and you're very much stretched. Therefore, it is about priorities, and the car should definitely be behind the house.

Also, if he's asking us about the advice on the first home, I doubt he can shell out %6k per month for what you called a NYC home.

The bottom line is that you have some ways to get into the first house with not much money up front. But I would suggest a modest place with a great (appreciating) location. And patience, of course.

[BrianJA]

Originally Posted by flush01

ya i heard NYC has insane prices... here in t.o. you can get 4bedrooms/4bathrooms 2 car garage 3000 sq.ft. for around $550-600k... how much is it in NYC ?

For around $600k, you MIGHT be able to find a mediocre studio apt. somewhere.

NYC real estate sucks. I am also making the first moves on buying my own place. Renting is such a waste. I am tired of throwing money every month into rent and not having anything to show for it.

[CnoteMD]

There are a lot of ways to achieve home ownership without having to save for a large downpayment. But my advice is to sacrifice a few luxuries until you reach your goal. For example, I refused to buy my first BMW until I had already made 6 months of payments on my condo.

Also, you can always opt for an 80/20 mortgage (or many other variations such as 80/10/10 or 80/15/5) in order to lower your downpayment and still avoid PMI. I used this same strategy in early 2005 and was able to refinance my place, which also paid off the 2nd mortgage (HELOC), and still left me with over 20% in equity. In this scenario, you can buy a home and only need to pay closing costs (and the only requirement is 5% of the purchase price in cash reserves - and retirement account assets count).

Just decide how long you plan on living in the home. If it's going to be short term, get a ARM about 2 yrs longer than you expect to live there. Otherwise, get a fixed rate mortgage. Also, avoid interest-only mortgages (too many of them end up in foreclosure).

[CnoteMD]

Originally Posted by BrianJA

For around $600k, you MIGHT be able to find a mediocre studio apt. somewhere.

NYC real estate sucks. I am also making the first moves on buying my own place. Renting is such a waste. I am tired of throwing money every month into rent and not having anything to show for it.

You are absolutely right. Thats why I moved across the river to NJ. I have a view that rivals almost any place in NYC for maybe 1/3 of the cost (and over twice the *******.

[BrianJA]

Originally Posted by CnoteMD

You are absolutely right. Thats why I moved across the river to NJ. I have a view that rivals almost any place in NYC for maybe 1/3 of the cost (and over twice the *******.

Where are you in NJ that has a view? I lived in Jersey City a few years ago when I first got out of school. They sure are doing a lot of building over there!

Right now I am in Brooklyn. Still expensive, though not as bad as Manhattan. My problem is that I am renting a killer apartment right now and feel that if I were to buy something it would likely be a step down from where I am currently living. Very torn.

[darkcloud]

I'm 23, and I'm very fortunate to have a great job. I'm currently growing my family business, which has already in 6/mo gone up 50-100k in the year due to better productivity and communication with our clients. I'll be around 100k this year in earnings as well.

Anyways I've been saving since about March 06 and have 12k set aside towards a house and just opened a Roth IRA which I'm putting in $100 a month. My next step will be a money market which would support my car downpayments and emergency funds. My student loans are 7/mos from being paid off, a house will be purchased by mid summer and I have to buy a ring as well in the next couple months.

I got the bimmer cuz I wanted it. Sure I could have saved maybe $100-200 a month w/o the BMW, but it's what I wanted and as far as anyone can tell me I'm only living once so I figured why wait?

Overall with some decent planning, decent savings, and the occasional new car to fulfill my desire haha I should be fairly well set up by my early 30's.

[DFW_M]

Originally Posted by darkcloud

I'm 23, and I'm very fortunate to have a great job. I'm currently growing my family business, which has already in 6/mo gone up 50-100k in the year due to better productivity and communication with our clients. I'll be around 100k this year in earnings as well.

Anyways I've been saving since about March 06 and have 12k set aside towards a house and just opened a Roth IRA which I'm putting in $100 a month. My next step will be a money market which would support my car downpayments and emergency funds. My student loans are 7/mos from being paid off, a house will be purchased by mid summer and I have to buy a ring as well in the next couple months.

I got the bimmer cuz I wanted it. Sure I could have saved maybe $100-200 a month w/o the BMW, but it's what I wanted and as far as anyone can tell me I'm only living once so I figured why wait?

Overall with some decent planning, decent savings, and the occasional new car to fulfill my desire haha I should be fairly well set up by my early 30's.

Great!

There you go, smart planning and maturity can get you there. The other question is if you want it at the age of 22 or 32...

[darkcloud]

Originally Posted by dr325i

Great!

There you go, smart planning and maturity can get you there. The other question is if you want it at the age of 22 or 32...

That's the nicest/smartest thing you've ever said . Sorry for getting on you in that other thread, it was a bad day.

I actually want it all NOW, but I can wait a few more years. Better at 30 then 50 . I wanna do euro delivery in 2 years too, the g/f is down cuz she'll get a trip to europe haha, just gotta save a few pennies in the meantime.

[DFW_M]

Originally Posted by darkcloud

That's the nicest/smartest thing you've ever said . Sorry for getting on you in that other thread, it was a bad day.

I actually want it all NOW, but I can wait a few more years. Better at 30 then 50 . I wanna do euro delivery in 2 years too, the g/f is down cuz she'll get a trip to europe haha, just gotta save a few pennies in the meantime.

It wasn't my intent to piss anyone off...just stating an opinion. Sorry if I went a bit far, I know it is a touchy subject. After all, the internet posts should not piss anyone off...who knows, I may just be a dumb 17-year-old pretending to be someone else...

Anyway, looks like you have it planned right. Remember, if you plan for the family (kids) that will change things a lot. Sure, I want that 335 + Xede, and I could probably comfortably afford it, but...I like what I have and especially because it is paid off. Again, the priorities. In your case, you're doing great by prioritizing things.

Good luck.

[Couch]

Not buying a house for a few years, and I find a job where I can afford to build a custom home. Exactly what I want, nothing less, nothing more.

Just renting from a friend, we actually just moved in over the weekend. Nothing like being closer to work, but closer to the ghetto. I think I actually appreciate living with my parents even more now. A safe place where I don't feel worried. Now I think I'm gonna buy a gun and get my concealed license.