Advice On Life Needed

[fltdriver]

Now also factor in the hours you spend commuting payed @ your/her hourly rate. Plus the extra miles you were driving were depreciating the value of your cars.

It almost always makes financial sense to live as close to work as possible.


I would move closer, but I would keep looking for a cheaper place to rent. You aren't that far from me and are paying nearly double the cost of rent that we used to pay. Nice neighborhood, 3 bd, 1bth, huge fenced yard for the dogs we payed $525 month for a house.

 

[dart1963]

Privately Owned Vehicle (POV) Mileage Reimbursement Rates

don't just assume gas into commuting expenses, the wear and tear is averaged, this site is THE place to go to get a good estimate on those costs (gas, oil changes, brake pads, shocks, tires, everything is in these estimates).

Also, figure in it takes you how long to get to work, time=money... time you could spend doing other things, work more hours, ride more, however you want

I had a lot of money saved up when I moved into my house (foreclosure, no warranty), I didn't put down 20%, but I also didn't get into the "boom", I paid a reasonable amount for my house. Set aside about 10K for repairs and unexpecteds.. two weeks after moving in, my well pump died... $1200, next year, water heater $500, new roof a year or two later about 3k... etc. etc. etc. Don't forget to set aside money for repairs

Houses aren't cheap, but it's yours to do with as you want and when you leave, you can sell it (this is where 20% down comes in handy, if you are forced to leave before you are above water due to market fluctuations). You pay someone else a higher rent so they can cover all those expenses, but at the end of the day, they are using you to buy a house for them.

Only you can make these decisions, but it's good to hear all sides.

 

[Chucker]

Now also factor in the hours you spend commuting payed @ your/her hourly rate.

Don't get sucked into this kind of thinking. You're talking about the value of money you don't have. If you use this as a guiding factor, you could end up spending less time commuting, but you have less money. That's not going to get you closer to your long time financial goals.

You have to compare everything in real dollars.

 

[danieljardim]

Owning a house has its pros and cons. I bought my house right before market crashed. Taking a hit right now but already getting steps for a refinance.

It's a major decision that you have to make at one point in your life. Renting in my opinion is paying for something that you don't own but if you don't have a house that is the only option.

Regarding sharing the bills penny by penny I'm a little against it. POP the question, make your girlfriend your wife, make your house income a single pot of money (In my opinion is easier to manage bills that way) and come to the side of life that you gonna start dreaming of the stuff you should have done when you were single

 

[ajskillz13]

Simple answer from me... find a house closer to work that will cost you less than $1,300 a month with insurance / property taxes in escrow. Trust me, you should be able to find a deal to easily sail under that number. As stated before, it's a great time to buy a house. Even if the market won't swing back up dramatically, the interest rates are so low, it really isn't justified to be sinking the same $$ or more into rent. I understand the guys who are leery about getting in over your head, but only you understand your relationship and your finances.

Find a good local bank and find someone you can talk to in their lending department. Find out what you are approved for and what your comfort zone is. We were approved for $50K higher than we paid for our house, but there's no way we could have comfortably afforded anything more.

$150,000 loan at 4% is $716 a month. I'd bet you could cover all your bases with a home in that price range. Add property taxes and insurance and you're probably still under $1,000 a month.

Go talk to professionals and make sure YOU are comfortable with what you're doing. Just remember that if you're going to buy a house, be sold on it for at least 5 years. That's the rule of thumb for minimal length of ownership. If you sell any sooner, you probably won't have enough equity to make a profit.

 

[Crocop43]

i think do whats in your heart man....

 

[CrazyCawi]

Owning a house has its pros and cons. I bought my house right before market crashed. Taking a hit right now but already getting steps for a refinance.

It's a major decision that you have to make at one point in your life. Renting in my opinion is paying for something that you don't own but if you don't have a house that is the only option.

Regarding sharing the bills penny by penny I'm a little against it. POP the question, make your girlfriend your wife, make your house income a single pot of money (In my opinion is easier to manage bills that way) and come to the side of life that you gonna start dreaming of the stuff you should have done when you were single

Well we have been together since I was 16. We are engaged. Not married yet because she wants a special wedding. One we cannot afford right now, but its nothing unreasonable. Her parents paid off her college loans, that was their deal. My parents were near bankrupcy with 100k in revolving credit cards, ect. and have colsidated and will have it paid off in 3 more years. I didnt get any help from my parents. So when I needed a car, I got a co-signer. I didnt recieve any financial guidance as far as hey you should really save up cash to buy this not take out a loan, or any of that hoohaw I know now. I wish I knew what I do now, I wouldnt have all the student loan debt, or any of the BS I'm dealing with but unfortunately I am, so I have to deal with it and move forward.

Don't get sucked into this kind of thinking. You're talking about the value of money you don't have. If you use this as a guiding factor, you could end up spending less time commuting, but you have less money. That's not going to get you closer to your long time financial goals.

You have to compare everything in real dollars.

I agree, I wont. Cash is cash, its not counted unless its in my hands, im not that valuable where my spare time creates a dollar worth.

Simple answer from me... find a house closer to work that will cost you less than $1,300 a month with insurance / property taxes in escrow. Trust me, you should be able to find a deal to easily sail under that number. As stated before, it's a great time to buy a house. Even if the market won't swing back up dramatically, the interest rates are so low, it really isn't justified to be sinking the same $$ or more into rent. I understand the guys who are leery about getting in over your head, but only you understand your relationship and your finances.

Find a good local bank and find someone you can talk to in their lending department. Find out what you are approved for and what your comfort zone is. We were approved for $50K higher than we paid for our house, but there's no way we could have comfortably afforded anything more.

$150,000 loan at 4% is $716 a month. I'd bet you could cover all your bases with a home in that price range. Add property taxes and insurance and you're probably still under $1,000 a month.

Go talk to professionals and make sure YOU are comfortable with what you're doing. Just remember that if you're going to buy a house, be sold on it for at least 5 years. That's the rule of thumb for minimal length of ownership. If you sell any sooner, you probably won't have enough equity to make a profit.

We have been searching for a home for about a year and a half. We have done 3 FULL deals to have to lose out because either the appraisal doesnt come back for enough, or the inspection came back with bad stuff. The last inspection showed a bat infestation. Beautiful home, everything we wanted, but the attic was ruined. Had hail damage to the roof like crazy, stuff thats hidden to our eyes. We have lost out on the cost of 3 inspections and 2 appraisals...$2160.....its hard to continue doing that. We cant buy just any shithole either guys, my fiance has to be ok with it as well....and shes not PICKY...but she can tell what is nice and whats not, and wants it to be as close to turn key semi modern as possible she wont go for the 1970's early 80's type home....Ive tried to convince her because I am very handy man savvy, but she just will not budge on it.

Sadly we only have 6,000ish dollars between the two of us. Thats what I am saying, how the hell do you guys do it and put all this money away, especially with kids....Do you make substantially more then us? My base salary is $2500....

 

[CrazyCawi]

not to mention almost every house we saw in the 150k and under range were shitholes that were either trashed on purpose or just weren't taken care of and needed alot of repair stuff.

 

[dart1963]

Thats what I am saying, how the hell do you guys do it and put all this money away, especially with kids....Do you make substantially more then us? My base salary is $2500....

I did it when I was just dating my wife.... I had no problems eating romen noodles/hot dogs and not going out partying... only takes about a year of watching every penny to save up a good chunk of cash... now I can't seem to save a dime... and I make lots more then I did back then
kids are expensive, but worth every penny

 

[MNGreg]

I agree with what many others have said. Having just purchased a house ourselves, I understand how FREAKY it can be taking on that extra amount of debt (long term thoughts and the monthly costs). But you have to add everything up. You might pay PMI right now but that falls off once you hit 20% or 5 yrs of payments. Interest rates now are AMAZING and you can get soo much for your money. Our monthly payment for the house is $1,080 (that includes house payment, PMI, Property taxes, and HIGH coverages on home insurance) take off property taxes, PMI and home insurance it is only about $640 for a 3bd, 2 bath, 3 car garage house.. Our utility (h20,garbage,recycle,sewer) is about $50/month, expected to go up with summer watering season to maybe 75-80. Elect and gas is about $150 (but that includes centerpointe homesmart). A house you also dont have to worry about any pet complaints, the pets will have room to run. If you feel secure in both of your jobs, I would go for the house, if you have concerns, I would probably go for the apartment and maybe stay where you are for the cheaper rent, even though it is 30 more miles. I know how bad you want to cut mileage having driven myself for about 80 or more miles eachway for over 9 years. Now with the house it is about 54 miles each way.

 

[raven6]

Sadly we only have 6,000ish dollars between the two of us. Thats what I am saying, how the hell do you guys do it and put all this money away, especially with kids....Do you make substantially more then us? My base salary is $2500....

simple answer is yes... between the two of you you are at what $48,000 a year right..?? that's not making good money, as you stated in your first post, in today's world that's just getting by money...

not trying to brag but between the wife and I we bring home 4 times that...

IMO you guys need to look at this in real terms... buying a house may or may not strap you... what if the water heater goes out will you have the money to fix it etc... I think you get that part...

Is moving worth the added cost..?? don't just count the fixed bills in your answer.. you need to think out-side the box and ask yourself, if my car breaks down can I fix it or have it fixed tomorrow..?? if I lose my job how long before I'm out on the street...??

if you don't have at least a six month buffer in the bank you are living pay check to pay check... it may not seam like it but you are..

if you can save more by staying where you are don't move, not yet anyway.. save every cent you can now while you can... get some real cash in the bank, half your annual salary, then and only then look at moving/buying whatever..

 

[danieljardim]

Well we have been together since I was 16. We are engaged. Not married yet because she wants a special wedding. One we cannot afford right now, but its nothing unreasonable. Her parents paid off her college loans, that was their deal. My parents were near bankrupcy with 100k in revolving credit cards, ect. and have colsidated and will have it paid off in 3 more years. I didnt get any help from my parents. So when I needed a car, I got a co-signer. I didnt recieve any financial guidance as far as hey you should really save up cash to buy this not take out a loan, or any of that hoohaw I know now. I wish I knew what I do now, I wouldnt have all the student loan debt, or any of the BS I'm dealing with but unfortunately I am, so I have to deal with it and move forward.



I agree, I wont. Cash is cash, its not counted unless its in my hands, im not that valuable where my spare time creates a dollar worth.



We have been searching for a home for about a year and a half. We have done 3 FULL deals to have to lose out because either the appraisal doesnt come back for enough, or the inspection came back with bad stuff. The last inspection showed a bat infestation. Beautiful home, everything we wanted, but the attic was ruined. Had hail damage to the roof like crazy, stuff thats hidden to our eyes. We have lost out on the cost of 3 inspections and 2 appraisals...$2160.....its hard to continue doing that. We cant buy just any shithole either guys, my fiance has to be ok with it as well....and shes not PICKY...but she can tell what is nice and whats not, and wants it to be as close to turn key semi modern as possible she wont go for the 1970's early 80's type home....Ive tried to convince her because I am very handy man savvy, but she just will not budge on it.

Sadly we only have 6,000ish dollars between the two of us. Thats what I am saying, how the hell do you guys do it and put all this money away, especially with kids....Do you make substantially more then us? My base salary is $2500....

I have to tell is not easy at all. My wife works her ass off. I work my ass off.
We leave the house 6:15 and won't come back until 6:30. We barely have time to do anything during the week. By the time we get dinner ready, shower for kids, home work and put them to sleep is 9:30. The only time I have to do stuff is on the weekends after I clean the house and do the laundry.

Besides that I wish I had more money, but the money I have is enough to get me going. I'm not saving anything but I'm paying off my debts.

I bought my house for 300k, market crashed is worth now about 250k. is from 1904 but was all redone (badly) before I moved in. So I've being fixing stuff up since I moved. (just finishing to paint) needs new floors and finish the basement I will be alright.

Stuff around here is way more money than the rest of the country.

Other thing is, as long as you get a good house insurance with your morgatge that will cover most of the repairs.

 

[nismos14]

Try to stop rending, then you can save more for down payment, since that's not an option as far as I can tell, save as much as you can. Pay off debts. Once you do that, decide how much house you can afford. 4k a month after tax - I'd be comfortable buying a 150k house, depending on how much DP you have maybe a bit more. I'm assuming no DP at the $150k mark.

 

[nismos14]

I have to tell is not easy at all. My wife works her ass off. I work my ass off.
We leave the house 6:15 and won't come back until 6:30. We barely have time to do anything during the week. By the time we get dinner ready, shower for kids, home work and put them to sleep is 9:30. The only time I have to do stuff is on the weekends after I clean the house and do the laundry.

Besides that I wish I had more money, but the money I have is enough to get me going. I'm not saving anything but I'm paying off my debts.

I bought my house for 300k, market crashed is worth now about 250k. is from 1904 but was all redone (badly) before I moved in. So I've being fixing stuff up since I moved. (just finishing to paint) needs new floors and finish the basement I will be alright.

Stuff around here is way more money than the rest of the country.

Other thing is, as long as you get a good house insurance with your morgatge that will cover most of the repairs.

NJ does suck, it is so expensive to live in terms of taxes anyway. My wife and I bought our house for $337k and while it is not exactly the easiest, we bought something that we think we could afford and could potentially afford on one income if we cut everything else out if we had to. We save a little bit each year, but it's definitely no where near where we need nor want to be especially for when we have children and so on.

 

[DakinechicK]

I will give my input, however I'm not sure if it will be much help.

You are 23 years old. You are SO young, so don't worry that you aren't making 250,000 a year RIGHT NOW. You have time. Work your way up, look for something different, etc. A lot of us spent our twenties with cr*p jobs working our way up the ladder and paying our dues.

My husband makes a lot of money now, but the years and YEARS he spent with horrible jobs, making little money to where he is now.... very successful. But, keep in mind, he is 45 years old. He has been making what he makes now a little over 15 years. So, he spent 15 years working his a$$ off doing 2am flying jobs that nobody else would do, getting paid 12 bucks an hour, along with other bad jobs, working his way up. Now, he is a very well respected, successful, businessman. People think we are rich... but we SAVE A LOT. We don't have a lot of bills coming in, and we don't have kids. We know how to spend our money (for the most part, lol), we spend it wisely... so that helps as well. I think we are pretty average as far as how much money we make.

I know better than anyone about apartment living and I know it gets old.
I know living pay check to pay check and how hard it is. BUT, you have to get your priorities straight. Is owning a house at 23 living by the paycheck the right move? Probably not. Yes, the rates on buying a house now are great, but again... priorities? You don't want to end up like millions of people getting foreclosed upon or worrying about selling your house by shortsale so you don't get foreclosed. We are in the process of trying to buy a short sale from a lawyer and his future ex wife college professor. Even those two are about to enter into foreclosure which surprised me. The economy is BAD right now. The banks will take you for everything you have if your not careful.

So, where you sit right now, I wouldn't risk it by getting a new house. Credit is everything these days so you def need to have GOOD credit. Living by a paycheck every two weeks is not sufficient enough to own a home (in my opinion) I wouldn't have done it when I was living that way. Way too scary.

I think maybe you need to get a closer apt to work, but save up money. I would put a larger percent down on a house to get lower interest and payments. You do NOT want to get by with putting say, 5% down. You are better off with a 20-30% downpayment.

Don't be in such a rush to grow up LoL. SAVE what money you can, work out expenses over the next few years and keep working your way up in your jobs. Believe me, adding up money between paychecks to pay off certain bills each month is NOT fun.... but you don't want to add something else to that that could be detrimental to your credit.

Sorry this was so long, I just have big feelings about this sort of thing. I've been there!! So has my husband!! It's hard. Period. You just have to get your priorites straight and not rush into something this big. Again, your 23. There is no rush to own a home and get in over your head just yet. With age comes knowledge. I'd say gain a little more and you'll figure out what to do and when it's right!! You won't question it. THAT'S when it'll be time to buy a house.

 

[raven6]

^^^^^^^... this

CC listen to her if you don't want to listen to anyone else, she speaks the truth..

 

[CrazyCawi]

I will give my input, however I'm not sure if it will be much help.

You are 23 years old. You are SO young, so don't worry that you aren't making 250,000 a year RIGHT NOW. You have time. Work your way up, look for something different, etc. A lot of us spent our twenties with cr*p jobs working our way up the ladder and paying our dues.

My husband makes a lot of money now, but the years and YEARS he spent with horrible jobs, making little money to where he is now.... very successful. But, keep in mind, he is 45 years old. He has been making what he makes now a little over 15 years. So, he spent 15 years working his a$$ off doing 2am flying jobs that nobody else would do, getting paid 12 bucks an hour, along with other bad jobs, working his way up. Now, he is a very well respected, successful, businessman. People think we are rich... but we SAVE A LOT. We don't have a lot of bills coming in, and we don't have kids. We know how to spend our money (for the most part, lol), we spend it wisely... so that helps as well. I think we are pretty average as far as how much money we make.

I know better than anyone about apartment living and I know it gets old.
I know living pay check to pay check and how hard it is. BUT, you have to get your priorities straight. Is owning a house at 23 living by the paycheck the right move? Probably not. Yes, the rates on buying a house now are great, but again... priorities? You don't want to end up like millions of people getting foreclosed upon or worrying about selling your house by shortsale so you don't get foreclosed. We are in the process of trying to buy a short sale from a lawyer and his future ex wife college professor. Even those two are about to enter into foreclosure which surprised me. The economy is BAD right now. The banks will take you for everything you have if your not careful.

So, where you sit right now, I wouldn't risk it by getting a new house. Credit is everything these days so you def need to have GOOD credit. Living by a paycheck every two weeks is not sufficient enough to own a home (in my opinion) I wouldn't have done it when I was living that way. Way too scary.

I think maybe you need to get a closer apt to work, but save up money. I would put a larger percent down on a house to get lower interest and payments. You do NOT want to get by with putting say, 5% down. You are better off with a 20-30% downpayment.

Don't be in such a rush to grow up LoL. SAVE what money you can, work out expenses over the next few years and keep working your way up in your jobs. Believe me, adding up money between paychecks to pay off certain bills each month is NOT fun.... but you don't want to add something else to that that could be detrimental to your credit.

Sorry this was so long, I just have big feelings about this sort of thing. I've been there!! So has my husband!! It's hard. Period. You just have to get your priorites straight and not rush into something this big. Again, your 23. There is no rush to own a home and get in over your head just yet. With age comes knowledge. I'd say gain a little more and you'll figure out what to do and when it's right!! You won't question it. THAT'S when it'll be time to buy a house.

:hug::hug::hug::hug:

Dakine....thank you.
I am young, and I understand exactly what your saying. Those are my thoughts, but everyone around us tells us different. My brother lost everything...is 30 years old with 2 kids and a stay at home wife because they cant afford daycare and they live in my parents basement.

We collectively make $66,000 a year before taxes...so about $52,800 before any commissions I can make. It is a huge adjustment for us because I used to make about 48-50k in my prior job and down to 30k because I havent gotten any commissions where I am at currently.

Everyone keeps saying pay off my debts? What debts are you taking about I have a car and a motorcycle....

Car payment is $200 a month and the motorcycle is $96.....I owe on the bike 2 more years, my car is 4 years....but neither are crazy bills at all

the rest I dont really have a choice about...health ins, dental ins, car insur, bike insur, and rent.

 

[fltdriver]

Everyone keeps saying pay off my debts? What debts are you taking about I have a car and a motorcycle....

Car payment is $200 a month and the motorcycle is $96.....I owe on the bike 2 more years, my car is 4 years....

This is what they mean. Start throwing 300 at the car and 200 at the bike. Pay them both off early, save yourself interest, and start a nest egg.

 

[raven6]

Everyone keeps saying pay off my debts? What debts are you taking about I have a car and a motorcycle....

Car payment is $200 a month and the motorcycle is $96.....I owe on the bike 2 more years, my car is 4 years....but neither are crazy bills at all

hummmmm, maybe they are talking about those two debts...???

 

[JSP]

Everyone keeps saying pay off my debts? What debts are you taking about I have a car and a motorcycle....

Car payment is $200 a month and the motorcycle is $96.....I owe on the bike 2 more years, my car is 4 years....but neither are crazy bills at all

the rest I dont really have a choice about...health ins, dental ins, car insur, bike insur, and rent.

Exactly those 2 debts! Why keep them if you dont have to? Pay those off and its that much more a month you have in your pocket. You are paying interest on something you dont have to if you can pay it off. I would LOVE to have an extra $300 a month!