Is home ownership out of reach for people under 30?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people under 30 are not ready to put down those type of roots. I think I read somewhere that the average age of first time homebuyers is 32.

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area.

When you're young you don't have to worry about school quality and can get a small place. What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse. Even if you don't want to stay in DC, you can rent it out until you're ready to sell. Some get the townhouse and then rent out the basement in it while they live there to save more money.

I know more people that have lost money renting out their place in DC than made money. Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief. It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.

+1 in theory it's a good idea but buy that condo in VA not DC

DP. "In theory" condos are often a bad idea. It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered. Unless you're in Manhattan, condos are a much risker investment than a SFH.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m 35. We first bought at 25 in a townhouse. Best decision we made that set us up for success.

If we had bought at 25 we would have been buying a condo in PG county in 2005, peak of housing bubble. We would still be underwater.

As long as you can afford to buy a long term house (ie townhouse, SFH, something few simple with good schools and safe neighborhood), do it as early as you can, so that if values do decline you are still happy where you are.

I assume you had no student debt or have Big Jobs? A townhouse 10 years ago in DMV were still $750k, which is $150k in after tax cash savings and a $3k monthly payment. Hardly 3rd year Fed employee range of options.

$750k ten years ago? There are currently nice townhomes in the Burke and West Springfield areas (just as an example) for under $600k. Ten years ago they were selling in the mid-$300k range. There are currently SFHs at or under $750k.

[Anonymous]

It’s not that hard. Step 1- buy a condo instead of renting. Step 2 work your way up to a townhouse or small sfh. I would not live where we do now if we did not buy a condo in our early 20’s. By 30 we has a house with no family money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people under 30 are not ready to put down those type of roots. I think I read somewhere that the average age of first time homebuyers is 32.

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area.

When you're young you don't have to worry about school quality and can get a small place. What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse. Even if you don't want to stay in DC, you can rent it out until you're ready to sell. Some get the townhouse and then rent out the basement in it while they live there to save more money.

I know more people that have lost money renting out their place in DC than made money. Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief. It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.

+1 in theory it's a good idea but buy that condo in VA not DC

DP. "In theory" condos are often a bad idea. It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered. Unless you're in Manhattan, condos are a much risker investment than a SFH.

I'm the PP, I should have said the DMV not DC--and, yes, I'd rather buy one in close in NoVa than DC proper. I think condos are pretty safe here because even if there's a real estate downturn for a bit, there's nearly always high rental demand so you don't really have to sell and the downturn doesn't last forever. A SFH is not typically in the cards for a 20-something--out of price and often not located where they want to be. One of my brothers bought a condo in Arlington before 2008 and then had to move for his job in 2009. Worst case scenario. Condo tanked in price, but he was able to rent it out the whole time for more than mortgage + fees. Came back to DMV and lived in it a few years, sold when the market was best and made a tidy profit. And for many the rent/buy calculation almost makes it worth taking the chance. But of course do diligence on the numbers, be prepared to be a landlord and have a plan for a real estate downturn. Sure buying a condo is riskier than buying a SFH, but you need to compare them to renting an apartment vs buying a condo as often that's the choice being made.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people under 30 are not ready to put down those type of roots. I think I read somewhere that the average age of first time homebuyers is 32.

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area.

When you're young you don't have to worry about school quality and can get a small place. What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse. Even if you don't want to stay in DC, you can rent it out until you're ready to sell. Some get the townhouse and then rent out the basement in it while they live there to save more money.

I know more people that have lost money renting out their place in DC than made money. Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief. It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.

+1 in theory it's a good idea but buy that condo in VA not DC

DP. "In theory" condos are often a bad idea. It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered. Unless you're in Manhattan, condos are a much risker investment than a SFH.

I'm the PP, I should have said the DMV not DC--and, yes, I'd rather buy one in close in NoVa than DC proper. I think condos are pretty safe here because even if there's a real estate downturn for a bit, there's nearly always high rental demand so you don't really have to sell and the downturn doesn't last forever. A SFH is not typically in the cards for a 20-something--out of price and often not located where they want to be. One of my brothers bought a condo in Arlington before 2008 and then had to move for his job in 2009. Worst case scenario. Condo tanked in price, but he was able to rent it out the whole time for more than mortgage + fees. Came back to DMV and lived in it a few years, sold when the market was best and made a tidy profit. And for many the rent/buy calculation almost makes it worth taking the chance. But of course due diligence on the numbers, be prepared to be a landlord and have a plan for a real estate downturn. Sure buying a condo is riskier than buying a SFH, but you need to compare them to renting an apartment vs buying a condo as often that's the choice being made.

There is no way he was renting for more than mortgage and fees in 2010. He’s just blowing smoke up your a$$ to not look dumb.

[Anonymous]

There are decent townhomes out near me in the Fairfax Station area for low $400s. I guess that means saving up a $50-$100K downpayment which should be feasible for a married couple but might take some time for a single person unless they live with parents for a few years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people under 30 are not ready to put down those type of roots. I think I read somewhere that the average age of first time homebuyers is 32.

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area.

When you're young you don't have to worry about school quality and can get a small place. What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse. Even if you don't want to stay in DC, you can rent it out until you're ready to sell. Some get the townhouse and then rent out the basement in it while they live there to save more money.

I know more people that have lost money renting out their place in DC than made money. Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief. It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.

+1 in theory it's a good idea but buy that condo in VA not DC

DP. "In theory" condos are often a bad idea. It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered. Unless you're in Manhattan, condos are a much risker investment than a SFH.

I'm the PP, I should have said the DMV not DC--and, yes, I'd rather buy one in close in NoVa than DC proper. I think condos are pretty safe here because even if there's a real estate downturn for a bit, there's nearly always high rental demand so you don't really have to sell and the downturn doesn't last forever. A SFH is not typically in the cards for a 20-something--out of price and often not located where they want to be. One of my brothers bought a condo in Arlington before 2008 and then had to move for his job in 2009. Worst case scenario. Condo tanked in price, but he was able to rent it out the whole time for more than mortgage + fees. Came back to DMV and lived in it a few years, sold when the market was best and made a tidy profit. And for many the rent/buy calculation almost makes it worth taking the chance. But of course due diligence on the numbers, be prepared to be a landlord and have a plan for a real estate downturn. Sure buying a condo is riskier than buying a SFH, but you need to compare them to renting an apartment vs buying a condo as often that's the choice being made.

There is no way he was renting for more than mortgage and fees in 2010. He’s just blowing smoke up your a$$ to not look dumb.

Yes, he was. I was managing it for him!

[Anonymous]

Homes are $1 dollar in Baltimore

[Anonymous]

Look it just takes sacrifice time buy young. My friend in NY wanted a place in Long Beach NY in his 20s. He bought a very run down two family rented both upper units.

Basements are illegal to rent out. It is a flood zone, no CO for basement but owner technically could live there. He lived in a little 400 sf corner of basement. He renovated and did repairs over years. Refinanced, got married kicked out one tenant, then when second kid came took over whole house not mortgage free. That could have easily could have been done in DC in 2010 after real estate correction.

Or just buy a two bedroom coop or condo and get a roommate. The key is but while single and moved into unit with the renters

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people under 30 are not ready to put down those type of roots. I think I read somewhere that the average age of first time homebuyers is 32.

No they aren’t but it’s smart to do it if you can and build equity. You can rent it out of buy but climbing the ladder seems to be the key. I know a few who waited (late 30’s) and it’s just too hard to save 300k for a downpayment for them to stay in this area.

When you're young you don't have to worry about school quality and can get a small place. What I see a lot of people in DC (including my own kid) is live with your parents for 2 years after college, save up for a downpayment on a condo or townhouse. Even if you don't want to stay in DC, you can rent it out until you're ready to sell. Some get the townhouse and then rent out the basement in it while they live there to save more money.

I know more people that have lost money renting out their place in DC than made money. Tenant laws are horrible for the owner…one bad tenant can cause you so much cost and grief. It really isn’t for the faint of heart if you are just finding people through an agent…maybe if you rent to friends or get into the IMF/World Bank pipeline.

+1 in theory it's a good idea but buy that condo in VA not DC

DP. "In theory" condos are often a bad idea. It is very easy for them to be overbuilt and they are more like a commodity than real estate. I've seen several real estate downturns where SFHs are barely affected and condo owners got hammered. Unless you're in Manhattan, condos are a much risker investment than a SFH.

I'm the PP, I should have said the DMV not DC--and, yes, I'd rather buy one in close in NoVa than DC proper. I think condos are pretty safe here because even if there's a real estate downturn for a bit, there's nearly always high rental demand so you don't really have to sell and the downturn doesn't last forever. A SFH is not typically in the cards for a 20-something--out of price and often not located where they want to be. One of my brothers bought a condo in Arlington before 2008 and then had to move for his job in 2009. Worst case scenario. Condo tanked in price, but he was able to rent it out the whole time for more than mortgage + fees. Came back to DMV and lived in it a few years, sold when the market was best and made a tidy profit. And for many the rent/buy calculation almost makes it worth taking the chance. But of course due diligence on the numbers, be prepared to be a landlord and have a plan for a real estate downturn. Sure buying a condo is riskier than buying a SFH, but you need to compare them to renting an apartment vs buying a condo as often that's the choice being made.

There is no way he was renting for more than mortgage and fees in 2010. He’s just blowing smoke up your a$$ to not look dumb.

Yes, he was. I was managing it for him!

What building was this? We rented at that period and looked at buying adjacent units and the math was ridiculously bad. Renting was so much cheaper month to month, it was cash flow negative and a huge bet on appreciation to save you.

[Anonymous]

In some respects, it is easier for single people in their 20s to buy than for 30-somethings that are married and have kids.

People under 30 have to do what many of us did. You buy a lower priced unit in a less desirable but still appreciating part of town. There are still townhomes and small single family homes in less popular areas where you can get good deals, especially for fixer-uppers, put in some elbow grease, do some home improvements and sell for a profit and use the profits to help buy in a more desirable part of town.

I was 27 when I bought my fixer upper. in PG County. I didn't meet my spouse-to-be for another 6 years and I worked on my house. When we got married, we lived another 4 years in the house and then I sold the house for more than double what I paid for it. And having paid down some of the mortgage, I cleared enough for a good down payment on what is now our forever home.

[Anonymous]

We live in Austin and many people we know purchased their first home in their mid-to-late 20s without family money (including us).

But that was 10-15 years ago when prices were reasonable and interest rates were lower.

[Anonymous]

No.

I think more young adults will live with their parents for a few years, save aggressively and have larger down payments.

[Anonymous]

Anonymous wrote:It’s not that hard. Step 1- buy a condo instead of renting. Step 2 work your way up to a townhouse or small sfh. I would not live where we do now if we did not buy a condo in our early 20’s. By 30 we has a house with no family money

This is the way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s not that hard. Step 1- buy a condo instead of renting. Step 2 work your way up to a townhouse or small sfh. I would not live where we do now if we did not buy a condo in our early 20’s. By 30 we has a house with no family money

This is the way.

What are people smoking! I'm 38 and if I had done that would likely have been under water for at least a decade. Very thankful I didn't

Today? Condos in my area are 500-700K. I'm not seeing how that math works either.