theJ Posted May 13, 2020 Share Posted May 13, 2020 27 minutes ago, JoshstraDaymus said: How does your opinion change when 2 people make a combined about... 80k? That's a pretty substantial drop off. 1 minute ago, JoshstraDaymus said: See the thing is we do not live really outside of our means, but my god is rent expensive in our area and to make matters worse we have 3 dogs. Not everyone can necessarily afford the 2000 sq ft house in the prime suburb in your city. Like @LeotheLion said, if it's a goal, then you just have to save. My wife and i lived in some areas we didn't necessarily want to in order to save more aggressively. We did was Leo did - pretty much nothing for years until we could afford it. Quote Link to comment Share on other sites More sharing options...
scar988 Posted May 13, 2020 Share Posted May 13, 2020 6 minutes ago, LeotheLion said: When we first bought our house, our combined income was 90k. Took about 2.5 years of saving (with combined income between 75-90k) but owning a house was a goal. So we lived pretty frugally. Just took 1 vacation in that time that wasn't a car ride away, limited restaurants/bars, etc. That type of sacrificing isn't for everyone but if owning a home is a goal then there are things you may have to give up to make it work. It also helps that $250k could buy a 4 bedroom home in my area. Man, my wife and I got a 3-bed, 2 bath house in a NW Atlanta suburb for 245k and it wasn't really that big of a deal for us to save up the $5k needed. Then our old townhouse burned down so we used the insurance $$ and put an additional 10 on it. Quote Link to comment Share on other sites More sharing options...
JBURGE Posted May 13, 2020 Share Posted May 13, 2020 (edited) 1 hour ago, theJ said: 3 hours ago, JBURGE said: This is unfortunately becoming impossible where I am as a first time buyer (within an hour of Toronto) due to home prices. You can't save enough in a year to keep up with home price increases, let alone get to 20%. I'll be buying a condo this year with likely 5% down I don't know your particular area. But i will say i think too many people use this as an excuse where it is entirely possible. Like i've heard people say that in my area. You can buy a really nice place in a suburb around me for $150k. Maybe 200-250 if you want to live in a 2000 sq ft place in the best school district. Yet people making 125k combined will say they can't get ahead enough to save up 20% for a downpayment. To me, what i hear is that they'd rather have two brand new cars, the fanciest new phones, etc. Yeah it might take more than a year. I saved for 2 years to buy our first place, and put 20% down. Again, don't know your area. Just getting on my soapbox a little. Believe me, I understand, my job is as a Financial Advisor. A 1 bedroom condo in my city starts at around $330k canadian. There are some that are high 200s but they are ****holes. I mentioned in the first post I am an hour outside Toronto (a little less than an hour). A 1 bed in the city over is the same, however it went from $300k to $330k from January-March this year. We lost out on a few offers in Feb/March due to the huge spike. Without getting too far into the income situation, I am the primary earner. My gf finished school last year and is just starting out. We also live in a 2 bed basement apartment for $1200/m, have been there 2 years. Average rent for a 1 bedroom now in this city is $1500. We're able to save a fair amount, but of course covid has impacted us as the other half isn't working. On top of regular savings through work pay, I saved an additional 10% of my income last year for the purpose of buying a home. That amount of savings was around the same amount of a 20% down payment difference on $300k and $330k purchase prices lol. Edited May 13, 2020 by JBURGE Quote Link to comment Share on other sites More sharing options...
scar988 Posted May 13, 2020 Share Posted May 13, 2020 (edited) Guys, FWIW, I'm a loan officer at a credit union. If y'all have any financial advice you don't want to ask the forum for, you can always jump in my DMs and I'll help there. I primarily do Autos, but I do a ton of personal, CCs, etc. I was with SunTrust before their merger and had an NMLS so I could do Home Equities, so I have a good idea on this stuff too. Edited May 13, 2020 by scar988 1 Quote Link to comment Share on other sites More sharing options...
LeotheLion Posted May 13, 2020 Share Posted May 13, 2020 15 minutes ago, JoshstraDaymus said: See the thing is we do not live really outside of our means, but my god is rent expensive in our area and to make matters worse we have 3 dogs. Saving is definitely tough. The nice thing about once you get the down payment is that the mortgage payment isn't that much worse than rent. Our mortgage payment is about $500/month higher but it is for a 4 bedroom place versus a 1 bedroom. Something that helped with me is linking my accounts on an app like Mint to monitor monthly spending. I always had the goal during the down payment savings period of making sure every month was in the green. Quote Link to comment Share on other sites More sharing options...
JBURGE Posted May 13, 2020 Share Posted May 13, 2020 (edited) 30 minutes ago, scar988 said: Guys, FWIW, I'm a loan officer at a credit union. If y'all have any financial advice you don't want to ask the forum for, you can always jump in my DMs and I'll help there. I primarily do Autos, but I do a ton of personal, CCs, etc. I was with SunTrust before their merger and had an NMLS so I could do Home Equities, so I have a good idea on this stuff too. Yeah, me too for any Canadians. Credit specific questions Edited May 13, 2020 by JBURGE Quote Link to comment Share on other sites More sharing options...
TOUCAN Posted May 13, 2020 Author Share Posted May 13, 2020 30 minutes ago, scar988 said: Guys, FWIW, I'm a loan officer at a credit union. If y'all have any financial advice you don't want to ask the forum for, you can always jump in my DMs and I'll help there. I primarily do Autos, but I do a ton of personal, CCs, etc. I was with SunTrust before their merger and had an NMLS so I could do Home Equities, so I have a good idea on this stuff too. Thats funny, I was with BB&T before their merger and now work for a smaller more local bank with better community presence in PA. Quote Link to comment Share on other sites More sharing options...
winitall Posted May 13, 2020 Share Posted May 13, 2020 4 hours ago, LeotheLion said: I don't understand why you would subtract interest? At the end of both mortgages you have a fully paid home. Look at it from a net worth perspective in year 30: 30 year loan 1 Fully Paid Home 468k stocks/retirement, etc in year 30 15 year loan 1 Fully Paid Home $400k stocks/retirement, etc in year 30 It doesn't matter that the 30 year paid more interest. You come out ahead on a conservative 6% rate. And the bolded is true. But imo first time home buyers should have a long-term horizon. And while you cannot put a $ amount on being out of debt, putting a $ amount on interest expense is massively deceiving. It ignores the opportunity cost of investing the difference. Edit: maybe a better way to look at it. Under the 15 year and 30 year mortgage example you are budgeting $1500/month on home/investments. The difference is the 15 year aggressively pays down the home exclusively in the first 15 years and then focuses on investing. The 30 year allocates some to home and some to investments from the beginning. So the total cash outflows will be the same. I feel like part of it depends on how long you plan on staying in the house. I ran the numbers @theJ used earlier to see where you would be at after 10 years, when many families purchasing their first home would be looking to upgrade to a forever home. 30 year Mortgage Balance: 171,888 Stocks: 82,759 15 year Mortgage Balance: 84,172 In that case, the 15 year would be a slightly better option by a couple thousand. It really just depends. 1 Quote Link to comment Share on other sites More sharing options...
Shanedorf Posted May 13, 2020 Share Posted May 13, 2020 1 hour ago, JBURGE said: A 1 bedroom condo in my city starts at around $330k canadian. damn, that's brutal. Ever consider Detroit ? Its possible that this pandemic leads to a decrease in home prices or a slowing of increases - so maybe that's a buying opportunity next spring ? We just got our 3rd letter yesterday saying "they" are interested in buying our home for cash. CALL TODAY !!! This suggests the predatory vultures are already out looking for distressed owners...and while I hope it doesn't happen - it might help some people. Quote Link to comment Share on other sites More sharing options...
theJ Posted May 13, 2020 Share Posted May 13, 2020 1 hour ago, winitall said: It really just depends It does. The debate will rage on eternally on what is the best way to do all these things. But the fact is that the only real important thing is having a plan, and then working that plan. If you have a plan and follow it, you'll get to where you want to go. Quote Link to comment Share on other sites More sharing options...
Forge Posted May 13, 2020 Share Posted May 13, 2020 2 hours ago, Shanedorf said: damn, that's brutal. Ever consider Detroit ? Its possible that this pandemic leads to a decrease in home prices or a slowing of increases - so maybe that's a buying opportunity next spring ? We just got our 3rd letter yesterday saying "they" are interested in buying our home for cash. CALL TODAY !!! This suggests the predatory vultures are already out looking for distressed owners...and while I hope it doesn't happen - it might help some people. Can tell you that at my work, our volume has been pretty much non stop the entire time this has been going on. There's been open overtime due to volume every week but 1 for the last 3 months. Quote Link to comment Share on other sites More sharing options...
Ty21 Posted May 13, 2020 Share Posted May 13, 2020 Anyone wanna co-sign on a house w me Quote Link to comment Share on other sites More sharing options...
scar988 Posted May 14, 2020 Share Posted May 14, 2020 14 hours ago, Forge said: Can tell you that at my work, our volume has been pretty much non stop the entire time this has been going on. There's been open overtime due to volume every week but 1 for the last 3 months. Same with us at the Credit Union here servicing NW GA and NE Alabama 1 Quote Link to comment Share on other sites More sharing options...
scar988 Posted May 14, 2020 Share Posted May 14, 2020 14 hours ago, Tyty said: Anyone wanna co-sign on a house w me I wouldn't give you $10 if you gave me $20 first. Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted May 14, 2020 Share Posted May 14, 2020 My home has been on the market for 5 weeks. We started kinda high (because the street is super desirable) and just cut the price yesterday. Quote Link to comment Share on other sites More sharing options...
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