$200K and just getting by

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a townhouse in 2000, and back then we didn't need a DP! Things have changed making it more difficult to buy and afford things now for people under 40.

That's what I was about to say. PP who bought when she was 22 - that was 1998 or so. We bought in 1999 and had a 10% DP but could have done 5%, and the house was $200K.

Pp bought before they were married, and many many people break up with their significant other once they are working and in real life; they committed to a mortgage but not to each other. Very responsible.

And as for buying with 5% down, how can you even pretend that is reasonable; it's all about timing and PP got lucky. If it was 2006 you would have been sunk.

My point was that 10% (or 5% which we didn't do) of $200K for a 3-BR, 2-BA in a close-in burb was not that much money - for those asking how people had a downpayment that young.

And there are a ton of people on this board who bought in 2006 and have done just fine. Almost everything close-in and under $1M is up since then, with some DC neighborhoods way up.

At 22 I made $35k pretax and lived in a crappy studio in a shitty part of Alexandria for $1k/mo with no car and no way was I saving up $10k (my half of your $20k DP in less than a year to be able to still buy at 22). How'd you do it?

[Anonymous]

A friend of mine bought a house at age 25 in the DC area, this was in 2000. He lived at home for several months to save for a down payment. It worked out for him.

If you want to call that parental help, so be it, but the house wasn't gifted to him.

[Anonymous]

Anonymous wrote:A friend of mine bought a house at age 25 in the DC area, this was in 2000. He lived at home for several months to save for a down payment. It worked out for him.

If you want to call that parental help, so be it, but the house wasn't gifted to him.

Obviously free rent is parental help? I mean... he can be as happy as he wants about his improved financial condition but I hope he checks his smugness.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A friend of mine bought a house at age 25 in the DC area, this was in 2000. He lived at home for several months to save for a down payment. It worked out for him.

If you want to call that parental help, so be it, but the house wasn't gifted to him.

Obviously free rent is parental help? I mean... he can be as happy as he wants about his improved financial condition but I hope he checks his smugness.

I have known him a long time, that isn't the type of person he is. He got the house in his name, still living in it, and his mortgage is less than my apartment rent is.

He could have paid some of his parents mortgage and still been able to move out in a year, which is about how long it took. He makes good money. It was a smart tactic to get a house.

Oh, he has been single the entire time, never married.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Most people can't afford this. Not everyone get's daddy's help with buying a house. A lot of people have school debt. A lot of people don't make that much that early in life. Etc.

It's not as easy for everyone as it was for you.

And not everyone gets married when they're still children

np. 22 is hardly a child.

Would you advise anyone to buy a home with their boyfriend at 22? Or get married shortly after that? Things can work out, but there is a reason people with more education don't often marry that young.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Good thing you don't buy in 2006.

I am a new poster and I did buy in 2006. But where our bank cleared us for a loan up to $1 million (!) we only took a loan of $300k and bought a lovely house for $500k. Don't "stretch" to buy. The people asking you to are real estate agents who stand to get paid.

+1 and the same applies to college. A lot of people struggling with student debt seemed to have bought the line that education debt is "good debt" just like a mortgage is "good debt". Garbage. Yes, some people may have to go into some debt for college but it should be minimized as much as possible. Live at home, do the first two years at a CC, do your research and choose a lower cost option. DH and I were very comfortable with his $100K salary when I was a SAHM and now as 2 working parents with a $240K income and lots of savings. A big part of that is that we both went to affordable state colleges for undergrad. I also went to a state U for grad school and had it paid for by my employer. He also lived at home during undergrad. I could have gone to an Ivy but was offered no aid so my parents counseled me, wisely, to go to the affordable state school. Graduated debt free. Had a great college experience and been very happy in my career.

We also got lucky with market timing in our house purchase but part of that was that we were willing to buy a little 1940s house that had virtually no improvements since the 1950s. We made modest improvements early on but waited to do a larger renovation until after my stretch as a SAHM.

Please, not everyone gets to live in a state with decent public universities and even fewer live within commuting distance of a university or useful community college. Folks like you who are upper middle class in urban metro areas are so out of check with the people who are taking student loans. It's an escape rocket from a cycle of poverty, but rockets don't come cheap.

My parents counseled me to take out as much debt as I could so having good parental advice and free rent are also advantages you don't seem to appreciate.

I do hope you at least tested your house for lead and asbestos, for your kids sake. 1940s homes can be quite debilitating to infant development, especially when at home all day. But get real, your house was cheap because of when you bought it, not the age.

[Anonymous]

Anonymous wrote:We make 125k, have two kids and are doing fine. We live within our means. We are in a modest home but love our neighborhood. It is definitely possible.

Where do you live, how long is your commute, and how are your schools?

[Anonymous]

Why are people acting like you need 20% down right now? 10% down mortgages are totally being offered and I think it's possible to go below that too. Whether that's a wise move or not is up to your own finances and feelings about risk but there are options.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Good thing you don't buy in 2006.

+1 I know a couple that purchased a home as recent graduates in 2006 in Silver Spring. Their particular neighborhood has gone nowhere but downhill in the past decade.

I also know a couple of others (also recent grads, at the time) who stretched to buy condos in Tysons in 2006, and lost tons of money... They still own their condos and they'd have to sell at a horrible loss. They'll likely never get that money back. Tyson's has improved in popularity, but there are new condo buildings popping up everywhere that they are going to have to compete with when they go to sell.

If you bought in 2000 with no down payment, and it has worked out for you, I guarantee you, it is not because of your financial prowess.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Good thing you don't buy in 2006.

I am a new poster and I did buy in 2006. But where our bank cleared us for a loan up to $1 million (!) we only took a loan of $300k and bought a lovely house for $500k. Don't "stretch" to buy. The people asking you to are real estate agents who stand to get paid.

+1 and the same applies to college. A lot of people struggling with student debt seemed to have bought the line that education debt is "good debt" just like a mortgage is "good debt". Garbage. Yes, some people may have to go into some debt for college but it should be minimized as much as possible. Live at home, do the first two years at a CC, do your research and choose a lower cost option. DH and I were very comfortable with his $100K salary when I was a SAHM and now as 2 working parents with a $240K income and lots of savings. A big part of that is that we both went to affordable state colleges for undergrad. I also went to a state U for grad school and had it paid for by my employer. He also lived at home during undergrad. I could have gone to an Ivy but was offered no aid so my parents counseled me, wisely, to go to the affordable state school. Graduated debt free. Had a great college experience and been very happy in my career.

We also got lucky with market timing in our house purchase but part of that was that we were willing to buy a little 1940s house that had virtually no improvements since the 1950s. We made modest improvements early on but waited to do a larger renovation until after my stretch as a SAHM.

Please, not everyone gets to live in a state with decent public universities and even fewer live within commuting distance of a university or useful community college. Folks like you who are upper middle class in urban metro areas are so out of check with the people who are taking student loans. It's an escape rocket from a cycle of poverty, but rockets don't come cheap.

My parents counseled me to take out as much debt as I could so having good parental advice and free rent are also advantages you don't seem to appreciate.

I do hope you at least tested your house for lead and asbestos, for your kids sake. 1940s homes can be quite debilitating to infant development, especially when at home all day. But get real, your house was cheap because of when you bought it, not the age.

No, not everyone does. I do understand disadvantages. My ILs were poor, living in a tiny house in an awful neighborhood. DH attended a VA State U that most people on DCUM would never let their kids go to. But, that's what was close to home and that's what they could afford so that's where he went. He probably could have gotten aid to go to a "better" school but nobody in his family had a clue about financial aid but at least they knew enough that debt is a bad idea. He never even applied anywhere else. He was the only person in his family to go to college. Still, he learned computer programming and went on to a solid career.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Good thing you don't buy in 2006.

I am a new poster and I did buy in 2006. But where our bank cleared us for a loan up to $1 million (!) we only took a loan of $300k and bought a lovely house for $500k. Don't "stretch" to buy. The people asking you to are real estate agents who stand to get paid.

+1 and the same applies to college. A lot of people struggling with student debt seemed to have bought the line that education debt is "good debt" just like a mortgage is "good debt". Garbage. Yes, some people may have to go into some debt for college but it should be minimized as much as possible. Live at home, do the first two years at a CC, do your research and choose a lower cost option. DH and I were very comfortable with his $100K salary when I was a SAHM and now as 2 working parents with a $240K income and lots of savings. A big part of that is that we both went to affordable state colleges for undergrad. I also went to a state U for grad school and had it paid for by my employer. He also lived at home during undergrad. I could have gone to an Ivy but was offered no aid so my parents counseled me, wisely, to go to the affordable state school. Graduated debt free. Had a great college experience and been very happy in my career.

We also got lucky with market timing in our house purchase but part of that was that we were willing to buy a little 1940s house that had virtually no improvements since the 1950s. We made modest improvements early on but waited to do a larger renovation until after my stretch as a SAHM.

Please, not everyone gets to live in a state with decent public universities and even fewer live within commuting distance of a university or useful community college. Folks like you who are upper middle class in urban metro areas are so out of check with the people who are taking student loans. It's an escape rocket from a cycle of poverty, but rockets don't come cheap.

My parents counseled me to take out as much debt as I could so having good parental advice and free rent are also advantages you don't seem to appreciate.

I do hope you at least tested your house for lead and asbestos, for your kids sake. 1940s homes can be quite debilitating to infant development, especially when at home all day. But get real, your house was cheap because of when you bought it, not the age.

NP here. Holy crap PP, resentful much? The bolded is the talk of someone who spews anger and can't stand it when someone else has something she has. Grow up!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Or buy a home as early as possible. We got our first starter home when we were dating at age 22. We are 40 now and are on our 5th house with one as a rental.

By the time we started having kids at 27, we were established with equity and it just kept building

Good thing you don't buy in 2006.

I am a new poster and I did buy in 2006. But where our bank cleared us for a loan up to $1 million (!) we only took a loan of $300k and bought a lovely house for $500k. Don't "stretch" to buy. The people asking you to are real estate agents who stand to get paid.

+1 and the same applies to college. A lot of people struggling with student debt seemed to have bought the line that education debt is "good debt" just like a mortgage is "good debt". Garbage. Yes, some people may have to go into some debt for college but it should be minimized as much as possible. Live at home, do the first two years at a CC, do your research and choose a lower cost option. DH and I were very comfortable with his $100K salary when I was a SAHM and now as 2 working parents with a $240K income and lots of savings. A big part of that is that we both went to affordable state colleges for undergrad. I also went to a state U for grad school and had it paid for by my employer. He also lived at home during undergrad. I could have gone to an Ivy but was offered no aid so my parents counseled me, wisely, to go to the affordable state school. Graduated debt free. Had a great college experience and been very happy in my career.

We also got lucky with market timing in our house purchase but part of that was that we were willing to buy a little 1940s house that had virtually no improvements since the 1950s. We made modest improvements early on but waited to do a larger renovation until after my stretch as a SAHM.

Please, not everyone gets to live in a state with decent public universities and even fewer live within commuting distance of a university or useful community college. Folks like you who are upper middle class in urban metro areas are so out of check with the people who are taking student loans. It's an escape rocket from a cycle of poverty, but rockets don't come cheap.

My parents counseled me to take out as much debt as I could so having good parental advice and free rent are also advantages you don't seem to appreciate.

I do hope you at least tested your house for lead and asbestos, for your kids sake. 1940s homes can be quite debilitating to infant development, especially when at home all day. But get real, your house was cheap because of when you bought it, not the age.

No, not everyone does. I do understand disadvantages. My ILs were poor, living in a tiny house in an awful neighborhood. DH attended a VA State U that most people on DCUM would never let their kids go to. But, that's what was close to home and that's what they could afford so that's where he went. He probably could have gotten aid to go to a "better" school but nobody in his family had a clue about financial aid but at least they knew enough that debt is a bad idea. He never even applied anywhere else. He was the only person in his family to go to college. Still, he learned computer programming and went on to a solid career.

No you really don't. VA has one of the best public university systems in the country; and my 'local' university was a 2 HR drive away, and many parents counseled their kids to take on debt to get them out of the house and off their books. Your DH already had many advantages, but just compared to your experience it was hard; but many others have bigger obstacles and student loans are about the only option.

[Anonymous]

Anonymous wrote:We make 125k, have two kids and are doing fine. We live within our means. We are in a modest home but love our neighborhood. It is definitely possible.

+1 Thank you, us too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a townhouse in 2000, and back then we didn't need a DP! Things have changed making it more difficult to buy and afford things now for people under 40.

That's what I was about to say. PP who bought when she was 22 - that was 1998 or so. We bought in 1999 and had a 10% DP but could have done 5%, and the house was $200K.

Pp bought before they were married, and many many people break up with their significant other once they are working and in real life; they committed to a mortgage but not to each other. Very responsible.

And as for buying with 5% down, how can you even pretend that is reasonable; it's all about timing and PP got lucky. If it was 2006 you would have been sunk.

My point was that 10% (or 5% which we didn't do) of $200K for a 3-BR, 2-BA in a close-in burb was not that much money - for those asking how people had a downpayment that young.

And there are a ton of people on this board who bought in 2006 and have done just fine. Almost everything close-in and under $1M is up since then, with some DC neighborhoods way up.

Hon, you can't buy at 22 when houses are $1m to start. You CAN when houses are like $200K/$400K to start, which is what they were in 1999.

Bottom line, that's shit advice for anyone who's not 40 who was old enough to buy then (I was 16 in 1999, so thanks for the "great advice") and who doesn't have a time machine.

[Anonymous]

Boo hoo. Tiny violin for those who can't get by on just $200,000.