[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 46 KB, 332x500, notmyhome.jpg [View same] [iqdb] [saucenao] [google]
29117399 No.29117399 [Reply] [Original]

-----THIS IS AN UNSCHEDULED INTERRUPTION TO YOUR REGULAR CRYPTO PROGRAMMING-----

So I am looking to buy my first (hopefully only) home.
I am 24 years old, I have $40k in the bank, and no debt. I earn $20k a year after taxes and benefits and shit.
My home/utilities and food will be my only major continuous expenses. I walk to work, no kids, no pets, etc.

The home I am looking at is $78k. It is a good price for the size and area.

What I have worked out is a $20k down payment and keep the rest in savings just in case. My mortgage would be $58,000.
Assuming a 15 year mortgage with a fixed interest rate of 5%, the home itself would cost me $460 a month, which is a bit over half of my current rent.
Utilities and homeowners insurance are currently unknowns, but I don't think the total of mortgage, utilities, and insurance would exceed $800 a month, which is about half my monthly income - and I would actually own something instead of throwing money into a void with rent.
If my estimations are correct, I would be spending a bit less than I do now, but will be taking on the responsibility of ownership.

So tell me, /biz/, does my math add up?
Am I on the right track? Am I being retarded?

I haven't started any of the process yet. What traps and scams should Iook out for?

>> No.29118019

you are here at biz and don´t have this amount of worth in shitcoins to pay the house in one go?
After paying your first house in cash you take this as collateral to buy another one which you will rent.
you will then have one house for free

>> No.29118126
File: 16 KB, 200x225, B6F175C0-2A67-403E-A09B-E3E0A3C48E22.jpg [View same] [iqdb] [saucenao] [google]
29118126

>The home I’m looking at is $78K
>Median house price where I like is $800K

>> No.29118196

>>29118126
Sydney?

>> No.29118211

Must be nice to live in hicksville, usa

t. Butthurt west coast fag

>> No.29118269

>>29118196
$800K would be a bargain in Sydney

>> No.29118303

>>29117399
Get a realtor that you feel comfortable talking to.
I had one or two that I told to fuck off before I found the right one.
If they know their shit you can get into a decent place no problems, and they can probably get you in good with a mortgage rep.

Sounds like you're paying enough on the down payment to not pay mortgage insurance, the dumbest scam. I put down like 25-30k on my 110k place and it was no worries.

AFAIK my homeowners insurance is all part of the mortgage.

Depending on your location it can be cheaper to rent after expenses and repairs, but honestly it feels good to own a place. So long as I keep paying my mortgage and HOA I'm golden.

>> No.29118399

>>29117399
>The home I am looking at is $78k. It is a good price for the size and area
Are you a time traveller from1957?

>> No.29118492

Recent home buyer here.
Make sure you get a really good home inspection. There is always going to be maintenance and most of that you should be able to >>>/diy/ but anything you can't will cost you an arm and a leg so it's better to know ahead of time what problems you will likely face. Budget montly for repairs and renos and set that money aside.

>> No.29118528

>>29118019
I like this

>> No.29118561

>>29118126
>>29118399
What hellholes do you people live in? Vancouver?
I passed up several sub $100k houses before settling on one for $145k because it's a giant Victorian farmhouse on an acerage.

>> No.29118627

>>29118528
meh, fuck renting out places.

Especially after what 2020 showed us, I would have been stuck with some assholes living for free in my place.
You have no idea how lucky I am that I'm too emotionally unbalanced to deal with people.

>> No.29118653

>>29117399
Dont do it anon. Real Estate is grossly pvervalued. They will tax you until your ass bleeds and force you to take in some homeless because muh socialism.

>> No.29118680

>>29118019
I don't have any shitcoins because I'm easily addicted to gambling so i just cut myself off completely.

>>29118126
>>29118211
It really is, but income is low here too.
I have one of the better jobs people my age can get around here.

>>29118303
Yeah I'm socially awkward so that's the part I'm looking forward to the least.
Is HOA usually included in mortgage? I can't remember reading anything about that.

>>29118561
Some places are really expensive. It looks like we might be getting some growth in my area so that kinda lit a fire under my ass to get a home sooner rather than later. Don't want to end up dealing with bigger prices later.

>> No.29118741

>>29117399
>$78k
you are getting scammed

>> No.29118797

>>29118627
Thats why you check the backround in advance and also demand a security (~2 Rents).

>> No.29118846

>>29118627
Oh pardon pal. Therapy is always there for you. If didnt worked out on tha firrrst. Try another therapist. You create your own lucky. Be aware of your surroundings, and feelings a bit more. Also language. Telling yourself that lucky is not your friend, justify your blind vision. Your not in a bad spot.

~biz therapist.

>> No.29118849

>>29118211
>t. Butthurt west coast fag
Remember you aren't welcome and to stay in your containment zone.

>> No.29118850

>>29118680
Naw, the HOA will be on you every month, at least it is for me. If you end up in one.
That's why I chose one with as low an HOA as possible, it's already basically robbery.
I partially chose my location because of this, some HOAs are as much as the mortgage.

>>29118653
Aren't the interest portions of the mortgage tax deductible? part of it is.

>>29118797
2 months would just make me cry after this year long shitstorm.

>> No.29118889

>>29118741
Haunted house

>> No.29118918

>>29118492
Yeah, that's what I was expecting. A good inspection on a moderately sized home runs between $400 and $600, right?

>>29118850
Derp I meant home owners insurance don't know why I typed HOA lmao.

>>29118653
b-but I gotta... I gotta... OOOOOWWWWN

>>29118741
I live in hillbilly town so that's a decent but not worrying price for a modest home with minor cosmetic issues. Inspection will tell if there are any deeper problems.

>> No.29118990

>>29118850
It is. However - if you cannot pay in full - dont do it now. Your time will come. Boomers dying off - house prices will fall.

>> No.29119087

>>29118918
I paid $450 for my inspection and ended up with some problems he missed. I would read reviews of the inspectors in your area.

>> No.29119150

>>29117399
Your estimates sound conservative if anything. Make sure you get a financial clause.
Ask if there are any easements/encumberances.
I'd prefer 2.6% variable over 5% fixed in this economic climate but that's just me.

People saying 'realestate is grossly overvalued' are just parroting, yes in cities it definitely is, but if you look at a graph, house prices in the country have barely budged since 2012.

>> No.29119276

>>29118990
This nigger is saying that he spends like 3k a year on rent, give boomers another 5 years say before prices START to drop when and IF rates are ever hiked? That's what 15k. Do you really think that you'll be able to buy a house for 63k? I don't know about america but in AUD and AUS they're literally twice that to build AT LEAST. We aren't talking forking out 500k for a shitty property in a nice city here, which is usually the case, and is the case when people say realestate is overvalued. Go look at country realestate, do it now, go pull up a graph of average house prices in a country town and tell me what the percent increase has been since 2012.

>> No.29119387

>>29119276
Dude just invest that money. Taking a loan in these conditions is suicide. Better to rent than to perish.

>> No.29119400

>>29119087
I was aiming for closer to the $600 for inspection so that sounds about right to me. Will definitely read reviews, and hopefully it is something a realtor can help with.

>>29119150
I hoped they were on the conservative side but sometimes it can be hard to be sure, thanks.
My job is pretty essential and I have a few ways into a work-from-home job if that falls through, so I'm more worried about inflation in the long term than current economic issues. I also have a few older family members who would help me out if things really get bad, but I would rather be self-made than rely too strongly on that.

>> No.29119494
File: 52 KB, 1004x545, listen_here_son.jpg [View same] [iqdb] [saucenao] [google]
29119494

This is AUS, but US doesn't seem different, here look at this shit. Sorry to triple post but if you aren't getting rural realestate in the face of huge inflation, job losses and people otherwise working from home... well i dunno... I'm just glad to have secured my own piece before the covid made property moon here.

>> No.29119627

>>29118680
> socially awkward
If you get uncomfortable around a female realtor, just look at your feet and audibly mutter "rape rape rape"

>> No.29119686

>>29119387
Look i could go into a heap of personal shit why I'll be fine, but to the point you're trying to make (i guess?) when do you think the government will allow interest rates to whipsaw with fucking elon and the other globos also debtmaxed?

>> No.29119870

>>29119686
Dude, Boomers are already dying off. There are more people looking to sell than there are looking to buy because batflu killed jobs and all. Interest rates may be rising but thats not the greatest thing. its the thinking that "housing only goes up". It wont. Especially with new tax laws in place.

>> No.29119988

>>29119627
I'm not that kind of socially awkward I think, I managed to get a gf somehow. I'm just not really good at talking to people in person. I come off as callous and emotionally stunted when I can't carefully type out my words on a Chuck-E-Cheese Token investment forum.

>>29119686
Thanks for all the posts. Honestly I don't really care about the real estate market that much aside from my ability to purchase and pay off a home. I'm looking at it more as a living requirement than an investment, but you are right. I'm not sitting around waiting for boomers to die, especially since I think the resulting crash would be taken advantage of instantly by foreign industry but that's leaning into politics a bit.

>> No.29120034

>>29119870
RURAL realestate hasn't gone up since the bottom of the GFC in 2011 so why do you think its in a bubble now?

Maybe US is different but here is hot. I went to a house which was literally an indoor chicken farm, it smelled so bad, 6 people went to the inspection on new years eve, and 3 people made a bid, i bidded 5% over asking and got outdone, on a fucking indoor chicken farm, legit chickens still there in the house. Chicken shit and all, "we're selling this as is"

>> No.29120181

>>29120034
>Selling crappy chicken farm 5% over ask
Kek nice play - seems like a bubble to me :)

>> No.29120225

>>29118849
what if we were forced to move here as children by our harpy mothers? still a no?

>> No.29120289

>>29117399
Realtors are not your friends. They're going to push you into the most expensive house you qualify for as quickly as possible for top commission then move on to the next..
Get a 10, no more than 15 year, fixed rate mortgage from a credible lender, like a real bank or credit union.
Termite or foundation damage is bad. Shitty wiring/fusebox can get you denied insurance, which you need to bring a year's worth to closing.
Buy the smallest/cheapest house in the most expensive neighborhood so the nicer homes around you keep your value up as well as more quickly up too. A 100k house surrounded by 50k houses is not good. A 100k house among 200k houses is good. Shop school district too. The best ones keep up home values best, plus easier resale.
I'm sure I'm forgetting shit but it's late, passed bedtime.
Oh, if you look at any kind of foreclosures, be SURE to look up any corresponding court cases and hidden liens the realtors won't tell you about. Those will fuck you.
Fixer uppers and sweat equity are good, just get a good home inspection so you don't get fucked. And "comps" are defined as like homes within one miles that have sold withing the last year. Look them up to be sure you're not paying too much.
If you put 20% down, you don't pay PMI plus you can get an investment property, like an apartment building to become a landlord. You must keep several grand in the bank though for emergency repairs when heater dies in winter and single mom has a litter of niglets that will freeze. Single moms with niglets are also scum will you'll have to evict sometimes as well as destroy your place and let dopeboys sell out of. You really want big rents to avoid that kind of trash - for the most part anyway.
I know i'm forgetting shit but it's bedtime.

PC (post captcha) you sound like you've researched some so go ahead and take the plunge. You'llsdo alright if you heed and read.

>> No.29120307

>>29117399
Man thats a sweet home mate.
Honestly tho I feel like throwing all your money away for this it a little much.

Maybe live beneath a bridge until you've enough money to buy a house without mortgage?

>> No.29120415

>>29120181
I will fuck your sister if that's what you want me to do.

>> No.29120470

>>29117399
Where are you getting a 5% interest rate? Seems high. Your overall math checks out though, utilities can be iffy depending on the heating method. Insurance should be in line with what you're thinking but I have an old house and my insurance is about $100/mo. That's a lot though.

>> No.29120484

>>29120415
I would bet. Shes quite hot.

>> No.29120900

>>29118211
I did too, until west coast fags started moving out here for ‘muh weed’

>> No.29120901

>>29120289
I don't really know what to expect from realtors, but I have a firm maximum budget planned and the willpower to not exceed it for any reason.
Fixed rate 15 year and reputable bank/credit union was already the plan. I thought about 10, but given recent economic uncertainties I wanted to give myself a bit more wiggle room with 15.
I already plan on getting the best, most thorough inspection I can get. I'm a firm believer in paying a bit more now to avoid future problems.
I'm less concerned with resale value, but I will make those considerations where possible.
I'm avoiding foreclosures like the plague. Don't want to touch that shit, especially not some of the wacky tax history they can have.
As far as DIY goes I'm willing to deal with homes that need cosmetic stuff like siding and flooring but nothing beyond that. Obviously I will need to make repairs for major stuff eventually but I don't want to be dealing with that right after buying it.
20% to 25% down is the plan, I can't go over that though.
Renting is out of the question unless I get fired or something, and even then I will restrict it to people I know or a friend knows.

Thanks for all of that, pointed out a few things I hadn't thought of and supported most of my decisions so far.

>>29120307
Pic related isn't the one, unfortunately, just a random image from google. Sorry.

>>29120470
I wanted to go very conservative. I don't know what I will get approved for yet, so I wanted to keep my numbers on the safe side. I should have decent credit since I paid my student loans off within 5 years of getting them, but you know. Better to be prepared for the worst and be pleasantly surprised.

>> No.29120989

how is housing valuation done in the usa ? if someone decides to make a good strong house out of concrete or bricks instead of wood, would the valuation go up significantly ?

>> No.29121393

>>29120989
As far as my research points, yes. I would like a brick or stone house but it isn't within my means.

>> No.29121736

>>29118196
bro, how could it be sydney.. He is going to pay the price it cost us for a LandCruiser for a house... 800k gookville for you anon..

>> No.29121939
File: 105 KB, 1024x577, 770db91e54da87564785b09786627b5e.jpg [View same] [iqdb] [saucenao] [google]
29121939

Just for fun:
Here is the sort of style I want to do up the interior, eventually, of whatever house I get.
I think I will go for a darker stone though.
These are definitely long-term plans, but I live my life by the mantra of trying to feel like a king within my means and a little bit of decorative paneling looks like it can go a long way.

>> No.29122330

Hopefully I can make it so that I can just buy my granparent's home before my family start to try and outjew eachother for getting whatever is leftover from the sale of the house to some chinese family.

A hint of spite with a dash of love for my grandparents and the fact that was and still is one of the only places where Im comfy.

Good luck anon with your home buying,

Get a fucking inspector and pay him if hes good, they can save you thousands upon thousands as windows aint cheap to replace, neither is mold, doors etc...

>> No.29122342

I was approved for up to half a million recently. Almost bought a really nice home for very low interest. But decided to stay in my 1100 SQ foot home because I hones to God refuse to allow the Jew man another chance at fucking me with a mortgage. I'm almost paid off on the current home. Mortgaging myself again with how easily the big dogs jump ship and leave everyone holding bags every so many years when they crash the economy has made me rethink this paradigm. I'm at this point going to live like a pauper so i can just put away enough in crypto to be able to buy one in a few years cash. For your situation, I agree w the 15 year mortgage 100 pct, banks hate those because they usually get paid back and they don't get to make money off you twice.

>> No.29122575

>>29122330
We have a lot of kids in my family and not a lot of houses to go around, so I figured as the eldest I would bite the bullet and get my own so one of them can have a better chance.
My gf is apparently set to inherit a few hundred acres of farmland, so if the relationship works out that would be neat.

>>29122342
Yup, I want to one-and-done this shit. Fuck real estate investment I just want a home to make my own. I'm not sure if you can overpay on a mortgage to get it paid faster like I did my student loans but if I have the means to I will.

>> No.29122723

where i can buy so cheap houses?

and why 5% intereset ? the rest sounds ok op.

>> No.29123044

>>29122723
appalachialand
5% because I don't know what rate I will get approved for so I wanted a conservative placeholder.

>> No.29123169

>>29123044
if you know the area and like it do it. its just 78k thats not much money for a real estate.

>> No.29123525

>>29123169
Yeah, we have some nicer 4 bedrooms going $150k to $400k depending on cosmetic features but those are considered fancy around here.
A decent 2 bedroom can be had around $80k with some minor but fixable cosmetic faults, and sometimes you can find a 3 bedroom around that price too if the seller is in a hurry or some of the interior isn't pretty.
My biggest hope is to get a decent 3 bedroom at $80k with only cosmetic faults since I plan on eventually redoing the whole interior like >>29121939 anyway, but more realistically I'm looking for a pretty good 2 bedroom.

>> No.29123752

>>29121939
Looks gaudy as all hell, doubly so next to the ikea tv stand. Shit taste

>> No.29123844

>>29117399
Get a 30 year. Why not? Rates are fucking low. You can pay it off at 15 if you really care.

>> No.29124244

>>29123752
I definitely don't want the stand lol, just the general theme of wood floor with stone walls. Also the outlets and light switches look awful in that image too. It was just an example.

>>29123844
Because the thought of still making payments on something I bought more than 25 years ago makes me want to kill myself, even if I can pay it off earlier. I would even do the 10 year if it weren't for the rona.

>> No.29124341

>>29123844
A lot of banks will penalize you for paying it off faster. I signed a 20 year and if I pay more than 15% more than my regular payments my rate increases.

>> No.29124680

>>29124341
10% to 15% over is good for me, I just like to pay a bit over to keep ahead of the interest a bit.
On my student loan I paid double the monthly minimum until I had enough saved up to pay off the remaining balance twice over and then paid the rest in one lump sum.
If I can do something similar here that would be fantastic. If I can't I might reconsider a 10 year instead of 15. I don't want to be obligated to pay for shit for that long if I have the means to pay it sooner.

>> No.29125204

>>29117399
If you are in America you should getting at LEAST a 2.6-3% interest loan right now. I am 24 as well and just sold my 1st home and got a new one.

Find a smaller reputable mortgage lender. They will give you a great rate then sell your mortgage to Regions or someone within a month. That way you can get a 2.6 rate.

Good idea to put 20k down, the more you pay off up front the more up front interest you can remove to avoid Talmudic payments on your home.

Utilities are entirely dependant on how new the appliances in the house are as well as the quality of insulation. I just moved out of a 1700 sq ft house and was paying about $230 a month in power, the house was badly insulated and the heating and air were old.

Now my 2300 sq ft house has a power bill of $130 a month because of insulation and appliances. So maybe if the AC unit, heat or appliances are old, take some capital out of savings (not the down payment unless 100% needed) and invest in newer equipment.

Gas utilities are so cheap to start so if you will use a lot of gas then use whatever.
>>29117399

>> No.29125453

>>29122575

Best of luck, and im pretty sure you can pay how little or how much you want. The rate is just there for the set timeline ie 25years or less. The faster you pay the less interest overall, also may factor in choosing between a fixed rate vs variable.

Here in CAD variable is cheaper because less constant and riskier if you dont think you can pay it off beforehand. Higher risk also means more money for banks and variable alson means they can change rate...

You gotta do your best to outhebrew the hebrew.

>> No.29125871

>>29125204
Yeah, I know interest rates are low right now, but I wanted a conservative estimate just in case.
The appliances in the home that I am looking at are pretty new, no idea about the insulation. I like to keep things cold though so as long as the AC is kicking good I will be fine. I don't mind going down to 55 f in winter.

>>29125453
Thanks, man. I always clear debts as soon as realistically possible and I never have more than one debt at a time.
To me it seems like a lot of people get screwed over trying to get everything at once. Go to college, get debt, meet a qt gf, marry her, get debt, get a house together, get debt, then have kids pop out and suddenly you are buried under it all.
My plan is one at a time. Get one thing, pay it off, then get the next thing. It is working out pretty well so far but only time will tell.

>> No.29126246

>>29120901
anon im confused why you wouldnt just go for like 3% down on a 30 year mortgage and keep your cash.

also 5 percent on a 15 year seems high as hell. the average rn is 2.3% and like 3% or thereabout for a 30 yr. do you just not have credit?

I just refinanced from 4.8 to 2.6 having bought my house just 2 years ago

>> No.29126587

>>29117399
I checked what kinda house 80k€ gets here, should i buy this nasty 70s house with my crypto cains.

https://asunnot.oikotie.fi/myytavat-asunnot/pori/15872637

>> No.29126667

>>29126246
I don't actually know what rate I will be approved for. This is all in the early research stages of figuring this out, so I went with 5% as a conservative estimate. If I can affort it at 5% interest then I can definitely afford it at 2.3% interest.
I don't know what my credit is. The only debt I have ever had is my student loan, which I paid off many years ahead of schedule. I don't know if paying it off early was good or bad for credit.
I'm not going to do all that to keep my cash because I don't want cash, I want a home. I want to pay for it as soon as humanly possible so it can be mine and I no longer owe anybody anything.

>> No.29127148

I'm gonna head to sleep now guys, thanks for all the help.

>> No.29127837

>>29127148
Sweat dreams bb

>> No.29128406
File: 1.35 MB, 1080x1080, 1613270274212.jpg [View same] [iqdb] [saucenao] [google]
29128406

>>29117399
where is this? fucking 80k house? sign me the fuck up. are there niggers there?

>> No.29128514

>cheapest house within 1.5 hours from my work is $300,000

Being born in Melbourne is the definition of suffering

>> No.29128865

>>29118019
How do you put a house up as collateral to buy another one? Thought only certain people could do this.