[DWCAP]

Assuming your rent is at/very near/below market rents, Id pay up. 1.5% isnt a bad increase per year. However, I would hit them up for all the repairs that you feel are justified (not just what you want). If they wanna raise the rent, then they can put that money back into the property in needed repairs. That way you are kinda getting your monies worth out of the increase.

[DWCAP]

Assuming your rent is at/very near/below market rents, Id pay up. 1.5% isnt a bad increase per year. However, I would hit them up for all the repairs that you feel are justified (not just what you want). If they wanna raise the rent, then they can put that money back into the property in needed repairs. That way you are kinda getting your monies worth out of the increase.

[DWCAP]

So what are you all drinking right now? Has anyone else noticed that Syrah has become the new Merlot and there are AMAZING deals to be had at all price points on it?

-no, but I dont buy a whole lot of wine. However, if you had a few examples, I would be happy to test your theory. 🙂

[DWCAP]

So what are you all drinking right now? Has anyone else noticed that Syrah has become the new Merlot and there are AMAZING deals to be had at all price points on it?

-no, but I dont buy a whole lot of wine. However, if you had a few examples, I would be happy to test your theory. 🙂

[DWCAP]

So what are you all drinking right now? Has anyone else noticed that Syrah has become the new Merlot and there are AMAZING deals to be had at all price points on it?

-no, but I dont buy a whole lot of wine. However, if you had a few examples, I would be happy to test your theory. 🙂

[DWCAP]

So what are you all drinking right now? Has anyone else noticed that Syrah has become the new Merlot and there are AMAZING deals to be had at all price points on it?

-no, but I dont buy a whole lot of wine. However, if you had a few examples, I would be happy to test your theory. 🙂

[DWCAP]

So what are you all drinking right now? Has anyone else noticed that Syrah has become the new Merlot and there are AMAZING deals to be had at all price points on it?

-no, but I dont buy a whole lot of wine. However, if you had a few examples, I would be happy to test your theory. 🙂

[DWCAP]

[quote=briansd1]DWCAP, congratulations. I’m impressed. Great advice.

I’m embarrassed to say that I was not that financially responsible in my 20s. I was lucky more than hardworking.

If everyone was as financially responsible as you, housing prices would be cheaper and the industry would be hurting. [/quote]

Thanks, but the point wasnt to toot my own horn. It was to show it can be done. We got low rent cause we were lucky, and cause I agreed to do all the yard work if he supplied all the equipment. It is cheaper, and I get a taste of what homeownership is really like. It has changed our target house some too by forcing us to look at what we really wanted, instead of what we thought we did. I never realized how important the sunset was to me, till we moved into a house that you cant see it from. Weird, but true. I think a rental house is a better stepping stone than a condo is. Learning to ‘talk the talk’ before learning to ‘walk the walk’ as it goes.

And I think industry would be in a much better place if people were alittle more nuts like me. This constant bubble/bust economy isnt doing anyone any favors.

[quote=briansd1]A friend of mine just bought a house for $250,000 just because he could do a no-down VA loan; and where he lives, buying is cheaper than rent.

The broker kept on telling him that he can afford much more. You’d be surprised how people buy the very maximum they qualify for, resorting to exotic loans, piggy back 2nd mortgages and the like. Even people who didn’t have down payments would rig up gift letters and borrow money from relatives to pad their bank accounts.

That was all fine during the bubble years, but no more.[/quote]

I am glad for your friend, but it doesnt suprise me people are dumb. We currently value RE based on what the most agressive buyer can qualify for. That would be fine and dandy if we took what they can REALLY afford into account (including savings, retirment planning, children, etc etc). But we don’t. Hell in the bubble we didnt even take this into account. It was just ‘have a job, have a loan…’

I really think the reason we have not corrected to even lower/more affordable levels is because the GOV stepped in and changed what people could qualify for. New conforming limits, manipulated interest rates, tax rebates for DP, the alphabet soup of HAMP/HARP/TARP etc etc. All designed to get the most aggerssive buyers, also read emotional and/or desperate, back into the game. It is a sick game, designed to reward those who did not earn it at the expense of those who did, or those not in the game yet.

So my advice to the OP is not to pay that game. We have seen where it goes, and it is not happy. There is a reason they call it the old fashioned way, cause it works and people keep doing it. It sucks at times, isnt easy, and takes time but if done right could get him into his starter house by the time his kid is born, instead of by the time his kid is old enough to need the room.

And Brian, Id take lucky over responsible any day. Sadly, I am not a lucky person. (Said as I rub my left knee which is all banged up from soccer last night)

[DWCAP]

[quote=briansd1]DWCAP, congratulations. I’m impressed. Great advice.

I’m embarrassed to say that I was not that financially responsible in my 20s. I was lucky more than hardworking.

If everyone was as financially responsible as you, housing prices would be cheaper and the industry would be hurting. [/quote]

Thanks, but the point wasnt to toot my own horn. It was to show it can be done. We got low rent cause we were lucky, and cause I agreed to do all the yard work if he supplied all the equipment. It is cheaper, and I get a taste of what homeownership is really like. It has changed our target house some too by forcing us to look at what we really wanted, instead of what we thought we did. I never realized how important the sunset was to me, till we moved into a house that you cant see it from. Weird, but true. I think a rental house is a better stepping stone than a condo is. Learning to ‘talk the talk’ before learning to ‘walk the walk’ as it goes.

And I think industry would be in a much better place if people were alittle more nuts like me. This constant bubble/bust economy isnt doing anyone any favors.

[quote=briansd1]A friend of mine just bought a house for $250,000 just because he could do a no-down VA loan; and where he lives, buying is cheaper than rent.

The broker kept on telling him that he can afford much more. You’d be surprised how people buy the very maximum they qualify for, resorting to exotic loans, piggy back 2nd mortgages and the like. Even people who didn’t have down payments would rig up gift letters and borrow money from relatives to pad their bank accounts.

That was all fine during the bubble years, but no more.[/quote]

I am glad for your friend, but it doesnt suprise me people are dumb. We currently value RE based on what the most agressive buyer can qualify for. That would be fine and dandy if we took what they can REALLY afford into account (including savings, retirment planning, children, etc etc). But we don’t. Hell in the bubble we didnt even take this into account. It was just ‘have a job, have a loan…’

I really think the reason we have not corrected to even lower/more affordable levels is because the GOV stepped in and changed what people could qualify for. New conforming limits, manipulated interest rates, tax rebates for DP, the alphabet soup of HAMP/HARP/TARP etc etc. All designed to get the most aggerssive buyers, also read emotional and/or desperate, back into the game. It is a sick game, designed to reward those who did not earn it at the expense of those who did, or those not in the game yet.

So my advice to the OP is not to pay that game. We have seen where it goes, and it is not happy. There is a reason they call it the old fashioned way, cause it works and people keep doing it. It sucks at times, isnt easy, and takes time but if done right could get him into his starter house by the time his kid is born, instead of by the time his kid is old enough to need the room.

And Brian, Id take lucky over responsible any day. Sadly, I am not a lucky person. (Said as I rub my left knee which is all banged up from soccer last night)

[DWCAP]

[quote=briansd1]DWCAP, congratulations. I’m impressed. Great advice.

I’m embarrassed to say that I was not that financially responsible in my 20s. I was lucky more than hardworking.

If everyone was as financially responsible as you, housing prices would be cheaper and the industry would be hurting. [/quote]

Thanks, but the point wasnt to toot my own horn. It was to show it can be done. We got low rent cause we were lucky, and cause I agreed to do all the yard work if he supplied all the equipment. It is cheaper, and I get a taste of what homeownership is really like. It has changed our target house some too by forcing us to look at what we really wanted, instead of what we thought we did. I never realized how important the sunset was to me, till we moved into a house that you cant see it from. Weird, but true. I think a rental house is a better stepping stone than a condo is. Learning to ‘talk the talk’ before learning to ‘walk the walk’ as it goes.

And I think industry would be in a much better place if people were alittle more nuts like me. This constant bubble/bust economy isnt doing anyone any favors.

[quote=briansd1]A friend of mine just bought a house for $250,000 just because he could do a no-down VA loan; and where he lives, buying is cheaper than rent.

The broker kept on telling him that he can afford much more. You’d be surprised how people buy the very maximum they qualify for, resorting to exotic loans, piggy back 2nd mortgages and the like. Even people who didn’t have down payments would rig up gift letters and borrow money from relatives to pad their bank accounts.

That was all fine during the bubble years, but no more.[/quote]

I am glad for your friend, but it doesnt suprise me people are dumb. We currently value RE based on what the most agressive buyer can qualify for. That would be fine and dandy if we took what they can REALLY afford into account (including savings, retirment planning, children, etc etc). But we don’t. Hell in the bubble we didnt even take this into account. It was just ‘have a job, have a loan…’

I really think the reason we have not corrected to even lower/more affordable levels is because the GOV stepped in and changed what people could qualify for. New conforming limits, manipulated interest rates, tax rebates for DP, the alphabet soup of HAMP/HARP/TARP etc etc. All designed to get the most aggerssive buyers, also read emotional and/or desperate, back into the game. It is a sick game, designed to reward those who did not earn it at the expense of those who did, or those not in the game yet.

So my advice to the OP is not to pay that game. We have seen where it goes, and it is not happy. There is a reason they call it the old fashioned way, cause it works and people keep doing it. It sucks at times, isnt easy, and takes time but if done right could get him into his starter house by the time his kid is born, instead of by the time his kid is old enough to need the room.

And Brian, Id take lucky over responsible any day. Sadly, I am not a lucky person. (Said as I rub my left knee which is all banged up from soccer last night)

[DWCAP]

[quote=briansd1]DWCAP, congratulations. I’m impressed. Great advice.

I’m embarrassed to say that I was not that financially responsible in my 20s. I was lucky more than hardworking.

If everyone was as financially responsible as you, housing prices would be cheaper and the industry would be hurting. [/quote]

Thanks, but the point wasnt to toot my own horn. It was to show it can be done. We got low rent cause we were lucky, and cause I agreed to do all the yard work if he supplied all the equipment. It is cheaper, and I get a taste of what homeownership is really like. It has changed our target house some too by forcing us to look at what we really wanted, instead of what we thought we did. I never realized how important the sunset was to me, till we moved into a house that you cant see it from. Weird, but true. I think a rental house is a better stepping stone than a condo is. Learning to ‘talk the talk’ before learning to ‘walk the walk’ as it goes.

And I think industry would be in a much better place if people were alittle more nuts like me. This constant bubble/bust economy isnt doing anyone any favors.

[quote=briansd1]A friend of mine just bought a house for $250,000 just because he could do a no-down VA loan; and where he lives, buying is cheaper than rent.

The broker kept on telling him that he can afford much more. You’d be surprised how people buy the very maximum they qualify for, resorting to exotic loans, piggy back 2nd mortgages and the like. Even people who didn’t have down payments would rig up gift letters and borrow money from relatives to pad their bank accounts.

That was all fine during the bubble years, but no more.[/quote]

I am glad for your friend, but it doesnt suprise me people are dumb. We currently value RE based on what the most agressive buyer can qualify for. That would be fine and dandy if we took what they can REALLY afford into account (including savings, retirment planning, children, etc etc). But we don’t. Hell in the bubble we didnt even take this into account. It was just ‘have a job, have a loan…’

I really think the reason we have not corrected to even lower/more affordable levels is because the GOV stepped in and changed what people could qualify for. New conforming limits, manipulated interest rates, tax rebates for DP, the alphabet soup of HAMP/HARP/TARP etc etc. All designed to get the most aggerssive buyers, also read emotional and/or desperate, back into the game. It is a sick game, designed to reward those who did not earn it at the expense of those who did, or those not in the game yet.

So my advice to the OP is not to pay that game. We have seen where it goes, and it is not happy. There is a reason they call it the old fashioned way, cause it works and people keep doing it. It sucks at times, isnt easy, and takes time but if done right could get him into his starter house by the time his kid is born, instead of by the time his kid is old enough to need the room.

And Brian, Id take lucky over responsible any day. Sadly, I am not a lucky person. (Said as I rub my left knee which is all banged up from soccer last night)

[DWCAP]

[quote=briansd1]DWCAP, congratulations. I’m impressed. Great advice.

I’m embarrassed to say that I was not that financially responsible in my 20s. I was lucky more than hardworking.

If everyone was as financially responsible as you, housing prices would be cheaper and the industry would be hurting. [/quote]

Thanks, but the point wasnt to toot my own horn. It was to show it can be done. We got low rent cause we were lucky, and cause I agreed to do all the yard work if he supplied all the equipment. It is cheaper, and I get a taste of what homeownership is really like. It has changed our target house some too by forcing us to look at what we really wanted, instead of what we thought we did. I never realized how important the sunset was to me, till we moved into a house that you cant see it from. Weird, but true. I think a rental house is a better stepping stone than a condo is. Learning to ‘talk the talk’ before learning to ‘walk the walk’ as it goes.

And I think industry would be in a much better place if people were alittle more nuts like me. This constant bubble/bust economy isnt doing anyone any favors.

[quote=briansd1]A friend of mine just bought a house for $250,000 just because he could do a no-down VA loan; and where he lives, buying is cheaper than rent.

The broker kept on telling him that he can afford much more. You’d be surprised how people buy the very maximum they qualify for, resorting to exotic loans, piggy back 2nd mortgages and the like. Even people who didn’t have down payments would rig up gift letters and borrow money from relatives to pad their bank accounts.

That was all fine during the bubble years, but no more.[/quote]

I am glad for your friend, but it doesnt suprise me people are dumb. We currently value RE based on what the most agressive buyer can qualify for. That would be fine and dandy if we took what they can REALLY afford into account (including savings, retirment planning, children, etc etc). But we don’t. Hell in the bubble we didnt even take this into account. It was just ‘have a job, have a loan…’

I really think the reason we have not corrected to even lower/more affordable levels is because the GOV stepped in and changed what people could qualify for. New conforming limits, manipulated interest rates, tax rebates for DP, the alphabet soup of HAMP/HARP/TARP etc etc. All designed to get the most aggerssive buyers, also read emotional and/or desperate, back into the game. It is a sick game, designed to reward those who did not earn it at the expense of those who did, or those not in the game yet.

So my advice to the OP is not to pay that game. We have seen where it goes, and it is not happy. There is a reason they call it the old fashioned way, cause it works and people keep doing it. It sucks at times, isnt easy, and takes time but if done right could get him into his starter house by the time his kid is born, instead of by the time his kid is old enough to need the room.

And Brian, Id take lucky over responsible any day. Sadly, I am not a lucky person. (Said as I rub my left knee which is all banged up from soccer last night)

[DWCAP]

I think you should find a less costly place to rent for 5 years and save more money, work on the credit score, and get rid of that credit card bill NOW. Housing isnt going up any time soon, infact most news seems to argue for a slight decrease if anything.

Just a few thoughts:

1) You can find much cheaper housing that is very nice. I rent a 2/2 HOUSE on a big lot for 1550/month in MM. I dont care about the schools cause I am still in my 20’s as well and dont have kids.

2) Alot of those condo’s you are looking at are bunk. They are short sales that will never go through, the HOA has serious problems (and you wont get a loan), the place is trashed and needs more money than you have in just repairs, etc etc etc.

3) Buying a condo is just a bad idea, because you dont want to stay there. After 5 years you will have paid down VERY little of your mortagage, and will be one assment away from loosing any/all equity you have paid off. Plus you will have transaction costs and general home repair costs that are on you. Just due to the transaction, mortagage and repair costs you will need to make ATLEAST 10% appreciation over the next 5 years, just to break even let alone make anything.

I am in a similar boat to you, 20’s, in a stable relationship, first good job (ok I am 2 years ahead of you, but I was there in 2009). Hell, the GF even had similar credit card debt as you. We moved into this little house, killed her CC debt, and saved $. We took hikes and walks on the beach, rented movies from Netflix instead of going out, went camping in Palomar instead of traveling…. Inshort, we gave up the luxeries we loved.

Since we moved into our little house in 09 the GF has saved ~15k, and paid off the CC. I have done alittle better. Plus our credit scores are now ~800 each.

If you pulled off the similar, in 3 years you could have 50k no prob, no debt, great credit, and be able to jump directly into your starter home which is obviously your real target.

Or you could follow the route a co-worker took in early 2003, bought a condo, fixed it up, did like you want to. He is still atleast 10% underwater BEFORE the transaction costs, cant refi, cant rent it for par, cant move without loosing thousands, and cant go out and buy the house he wants cause his ‘investment’ is really just an anchor keeping him from the things he really wants.

Your choice, 3 years hard work to get what you want; or 5 years of speculation.

[DWCAP]

I think you should find a less costly place to rent for 5 years and save more money, work on the credit score, and get rid of that credit card bill NOW. Housing isnt going up any time soon, infact most news seems to argue for a slight decrease if anything.

Just a few thoughts:

1) You can find much cheaper housing that is very nice. I rent a 2/2 HOUSE on a big lot for 1550/month in MM. I dont care about the schools cause I am still in my 20’s as well and dont have kids.

2) Alot of those condo’s you are looking at are bunk. They are short sales that will never go through, the HOA has serious problems (and you wont get a loan), the place is trashed and needs more money than you have in just repairs, etc etc etc.

3) Buying a condo is just a bad idea, because you dont want to stay there. After 5 years you will have paid down VERY little of your mortagage, and will be one assment away from loosing any/all equity you have paid off. Plus you will have transaction costs and general home repair costs that are on you. Just due to the transaction, mortagage and repair costs you will need to make ATLEAST 10% appreciation over the next 5 years, just to break even let alone make anything.

I am in a similar boat to you, 20’s, in a stable relationship, first good job (ok I am 2 years ahead of you, but I was there in 2009). Hell, the GF even had similar credit card debt as you. We moved into this little house, killed her CC debt, and saved $. We took hikes and walks on the beach, rented movies from Netflix instead of going out, went camping in Palomar instead of traveling…. Inshort, we gave up the luxeries we loved.

Since we moved into our little house in 09 the GF has saved ~15k, and paid off the CC. I have done alittle better. Plus our credit scores are now ~800 each.

If you pulled off the similar, in 3 years you could have 50k no prob, no debt, great credit, and be able to jump directly into your starter home which is obviously your real target.

Or you could follow the route a co-worker took in early 2003, bought a condo, fixed it up, did like you want to. He is still atleast 10% underwater BEFORE the transaction costs, cant refi, cant rent it for par, cant move without loosing thousands, and cant go out and buy the house he wants cause his ‘investment’ is really just an anchor keeping him from the things he really wants.

Your choice, 3 years hard work to get what you want; or 5 years of speculation.

[DWCAP]

I think you should find a less costly place to rent for 5 years and save more money, work on the credit score, and get rid of that credit card bill NOW. Housing isnt going up any time soon, infact most news seems to argue for a slight decrease if anything.

Just a few thoughts:

1) You can find much cheaper housing that is very nice. I rent a 2/2 HOUSE on a big lot for 1550/month in MM. I dont care about the schools cause I am still in my 20’s as well and dont have kids.

2) Alot of those condo’s you are looking at are bunk. They are short sales that will never go through, the HOA has serious problems (and you wont get a loan), the place is trashed and needs more money than you have in just repairs, etc etc etc.

3) Buying a condo is just a bad idea, because you dont want to stay there. After 5 years you will have paid down VERY little of your mortagage, and will be one assment away from loosing any/all equity you have paid off. Plus you will have transaction costs and general home repair costs that are on you. Just due to the transaction, mortagage and repair costs you will need to make ATLEAST 10% appreciation over the next 5 years, just to break even let alone make anything.

I am in a similar boat to you, 20’s, in a stable relationship, first good job (ok I am 2 years ahead of you, but I was there in 2009). Hell, the GF even had similar credit card debt as you. We moved into this little house, killed her CC debt, and saved $. We took hikes and walks on the beach, rented movies from Netflix instead of going out, went camping in Palomar instead of traveling…. Inshort, we gave up the luxeries we loved.

Since we moved into our little house in 09 the GF has saved ~15k, and paid off the CC. I have done alittle better. Plus our credit scores are now ~800 each.

If you pulled off the similar, in 3 years you could have 50k no prob, no debt, great credit, and be able to jump directly into your starter home which is obviously your real target.

Or you could follow the route a co-worker took in early 2003, bought a condo, fixed it up, did like you want to. He is still atleast 10% underwater BEFORE the transaction costs, cant refi, cant rent it for par, cant move without loosing thousands, and cant go out and buy the house he wants cause his ‘investment’ is really just an anchor keeping him from the things he really wants.

Your choice, 3 years hard work to get what you want; or 5 years of speculation.

[Author]

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