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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Only first time homebuyers put down just 20%!

On our second home we put down 60%. It's easy. Live your life on one income and save the other's income. [/quote]

Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.[/quote]

No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all. [/quote]

Come back when you have kids.  You are really fortunate and I say congratulations, but you come across as smug.  Not everyone makes as much as you nor have they been as fortunate.[/quote]

Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either. [/quote]

Than how did you save $60k/year for at least 7 years to get your $400k downpayment??  That requires about $100k additional pre-tax salary, so where did savings come from?  Any outside help or lucky investments (ie you bought before the last bubble?)[/quote]

It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage. [/quote]

Can you elaborate on when you bought, for how much, and what it appreciated to? What kind of equity did you put into, like you are a handyman and reframed an addition? And started with 20% downpayment then?[/quote]

So this was in DMV, what was your approach? We are first time home buyers and trying to see how to make it to have a huge downpayment for our next home.  Unfortunately we aren't super handy, so hopefully that wasn't your appoach?![/quote]

PP here, yes we live in DMV. We put down 20% on our first home at 24 which was a small foreclosure (a little under market value, but not much and we didn't do much work to it). Prior we lived with roommates to save (and because we enjoyed roommates in DC at that age). We got a 10 year mortgage so that our payments, savings and tax deductions would be higher. The place did increase in value. Then we sold and were able to put down 60%. It came combined from equity and also from savings. We lived on one income and the other automatically went to investments. We don't drive that old of cars (5 years old), still vacation, etc, but we save a lot.

I know a lot of people on this board think owning homes isn't the best investment strategy, but for us we feel like it is. It's a lot better than paying rent and the tax deductions help (a little). We like building equity in our home instead of paying a landlord's mortgage.

We have talked that maybe it would have been better to keep saving until we were in our 30s and could just buy one house, but we did house hop. I think there are many different ways to go about it. [/quote]

At 24 you had saved up at least $60k in cash and had stable jobs to buy a house (assuming generally the cheapest house you can buy in DMV is $300k).  At 24, I was still grappling with student loans and barely making $60k/year? What did you guys study and how did you start off debt free?  That's the problem for most first time home buyers, jobs since 2000 have been kind of lackluster unless you are a lawyer, and even lawyers generally have huge student loans.

As for most people on this board not thinking real estate is good investment, are you kidding? 99% of people on this board think real estate is the way to go; the problem is affording it compared to renting.  Putting off kids gave you a lot of flexibility; we were only together 3 years before we had kids, thus the crappy foreclosures and roommate situation weren't really options for long -- once kids come you want a decent place.  When did you buy the foreclosure, 2009?[/quote]

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