I'm in my mid-30s and have been single all my adult life. I've been a homeowner since my early 20s, prior to becoming a nurse.
I bought my first house in central California in 2003, just prior to the real estate boom, for $146,000. It was a two-story three-bedroom, 2.5 bathroom single family house built in 1986. I was earning $15/hourly as a factory worker when I bought this house.
I sold the first house for a small profit and bought another house in the same city for $153,000 in 2004. However, I struck gold with this purchase because I sold one year later for $259,000. I cashed out, took the hefty profit and relocated to Texas.
I have been living in the same house in Texas for almost 10 years.
I think the OP is a single mom,so i am pretty sure her child might get emotionally attached to the home.
Kids get emotionally attached to everything. I remember crying when my parents sold their nasty old station wagon when I was a kid, and there was hell to pay if my favorite blanket got lost. I wouldn't use child attachment as a reason to justify anything.
Everyone's talking about selling when they move, but why not buy to keep the property as a rental? Lots of townhouses in my development are rented. Most only have the sign in the yard for a month or so and then I see a new neighbor. I asked a neighbor what she pays, and it's $350 more than my mortgage. I am paying a ton of extra principal every month on my house so I will definitely have it paid off in less than ten years, and could probably pay it off in three if I worked lots of overtime and sunk all of my disposable income into the house. If I pay it off and then rent it, I would pocket $12,000/year in rental income, which I could reinvest into a second property. If I had a few places that rent for these sorts of prices, I could consider living off of rental income and just retire.
Renting something when there are very affordable, very rentable places in your area is just like throwing hundred dollar bills into the blender, IMO. You're never seeing the money you paid in rent ever again.
Agreed I have done this a few times.....and along the way made nice profits.
A really good tip given to me that I live by...is buy smart [get a bargain] and do not get emotionally attached to the house.
And remember real estate isn't liquid so if you are not in a position to take a loss if needed when you want to sell you may need to switch gears. Just because we want to move doesn't always mean we have to do it if waiting would put you in a better financial situation. If you totally have to move, consider renting until the market adjusts.
One thing I will say is that if the neighborhood is taking a turn for the worst with an increase in rentals, Section 8 and foreclosures I'd do whatever I had to do even if it meant paying out of pocket to dump the property. Thankfully, knock on wood, because I buy modest homes in excellent neighborhoods this hasn't ever been a problem for me but it is something to keep in mind.
It really depends on where you live, because in my area( Maryland), you have to spend 6 figures to buy a decent house. The posters commenting here must live in very cheap areas, because there is no way you can get a mortgage for $650 per month in DECENT place in this area. Even the hoods here charge $1000 per month for rent. I would personally not buy a house as a new nurse. I would settle into the profession before making that big decision. Also factor in childcare , even the cheapest, would still cost $100 per week, amounting to $400 per month.
Depending on where you live there are many decent, safe neighborhoods with reasonably priced homes compared to the wages in Maryland. I would definitely count on spending at least $150,000 but at todays rates that is in the $750 a month range and rentals are definitely more pricey than that.
Kids get emotionally attached to everything. I remember crying when my parents sold their nasty old station wagon when I was a kid, and there was hell to pay if my favorite blanket got lost. I wouldn't use child attachment as a reason to justify anything.
Everyone's talking about selling when they move, but why not buy to keep the property as a rental? Lots of townhouses in my development are rented. Most only have the sign in the yard for a month or so and then I see a new neighbor. I asked a neighbor what she pays, and it's $350 more than my mortgage. I am paying a ton of extra principal every month on my house so I will definitely have it paid off in less than ten years, and could probably pay it off in three if I worked lots of overtime and sunk all of my disposable income into the house. If I pay it off and then rent it, I would pocket $12,000/year in rental income, which I could reinvest into a second property. If I had a few places that rent for these sorts of prices, I could consider living off of rental income and just retire.
Renting something when there are very affordable, very rentable places in your area is just like throwing hundred dollar bills into the blender, IMO. You're never seeing the money you paid in rent ever again.
Definitely agree to your points about the child attachment issue, lol. One of the things I also consider is that even if I only broke even or lost some money when I sold, which fortunately I have not had happen, then I lived rent free. Heck if you live in a house for 4 years and sell at a loss you would have likely spent thousands of dollars above your mortage in rent during that time so that sure allows for a lot of leeway regarding to breaking even.
Owning a home is not always cheaper than renting, depending where you live. Weigh the pros and cons carefully, especially if you're single.
The mortgage payment, property taxes, interest and insurance that I'm paying (1350/ month inclusive) is the same as the rents in my area. It all adds up. However, I'm building equity.
For some people, investing a fixed amount of money every month while continuing to rent is the wiser option.
thevez
113 Posts
Teach me your ways