26 Year Old Looking to move out

**disneysteve** · 12-04-2009, 06:05 PM

Welcome to the site.

How much are condos going for in your area? Be sure to include the condo fee.

**pagina99** · 12-04-2009, 06:23 PM

about $250k for a 2 bedroom condo in a decent area. $350-400k for a 3bedroom townhouse or small house. HOA is usually around $300 a month but varies from complex to complex.

**pagina99** · 12-04-2009, 06:23 PM

Rent is about $1200 for a 1 bedroom, $1500 for 2 bedroom apt.

**kork13** · 12-04-2009, 08:17 PM

Personally, I'd say to possibly look at a condo or small townhouse, and be open to a roommate (if you're okay with that -- some people are good with roommates, some aren't). If you get a roommate, great -- they'll be able to help with your payments. If not, you should still be fine.

Look for a place right around $250k, and use $50k of your savings as a healthy 20% down-payment. Assuming a 5%, $200k note, you'd have payments of ~$1075. Add on your HOA, nearly $1400/mo. That's kind of high as a percentage of your monthly income (37%), but in a HCOL area, that can sometimes be hard to avoid. Also, if that's about what you would pay for an apartment anyway, it may be a wash....

It appears that you are moderately frugal with your income (low-to-average listed expenses, healthy retirement and VERY healthy cash savings for your age), so I don't think in your case the somewhat high housing expenses will drown you. Just be careful that you consider all of the costs of ownership -- mortgage, HOA, insurance, maintenance/repairs, and so on. I definitely think you can safely buy a moderately priced place for yourself, just be smart about it.

ETA: I wouldn't go for anything much more than $250k-$300k, because you just don't have the income for more than that right now. Also, keep in mind that when you own a home, you want to keep a pretty good chunk of change in cash savings to provide for unexpected costs, such as emergency repairs.
Last thought.... If you have all that cash saved up, why are you paying interest on a car loan? Unless it's a 0% rate, there's no reason for it and I'd recommend just paying it off so that you can own the car outright and drop the car payment.

**corporate Gifts** · 12-04-2009, 11:25 PM

You need car insurance as soon as you put a car on the road.
If you decide to buy the car then ask the seller to hold on to it while you phone your insurance giving them the make model and registration. They will give you a cover note. So if in the unlikely event you get stopped by the police you will have 7 days to produce this cover note at a police station.

**disneysteve** · 12-05-2009, 05:14 AM

I also think buying a condo would be okay though it would stretch you a tiny bit. Definitely stay in the 250K range as that's all your income can support and definitely do the 20% down payment.

**maat55** · 12-05-2009, 06:07 AM

If you are buying, look at it as an investment. You are in an position to make an lowball offer on a place and live in it for a couple of years, then move up.

**disneysteve** · 12-05-2009, 06:52 AM

Originally posted by maat55 View Post

If you are buying, look at it as an investment.

I'm not so sure this is good advice. I don't think you should ever look at your home as an investment, particularly given current market conditions.

**maat55** · 12-05-2009, 07:32 AM

Originally posted by disneysteve View Post

I'm not so sure this is good advice. I don't think you should ever look at your home as an investment, particularly given current market conditions.

To the contrary, I think you should always be mindful of the investment aspect of your home.

The market is fairly low now, and if you are attempting to buy even lower than market, you will likely do better.

Too many people buy on emotion and not head smarts.

**MonkeyMama** · 12-05-2009, 07:38 AM

Personally, I'd rent with roommates, as long as possible (could possibly rent for $400/month).

Sounds familiar to the area I used to live. I lived with roommates until I married. Then we bought a $250k condo, but I wouldn't be so quick to buy a condo alone. That is a lot to take on, relying on only yourself and one job.

If you were intent on living alone though, buying could possibly be cheaper (low interest rates, and tax breaks).

It's not worth buying emotionally because it's "low" if you can't really afford it.

**disneysteve** · 12-05-2009, 07:48 AM

Originally posted by maat55 View Post

To the contrary, I think you should always be mindful of the investment aspect of your home.

Just a difference in philosophy, I suppose.

To me, an investment is something bought for the purpose of making a profit.

We did not buy our house in order to make a profit. We bought it to have a place to live and keep our stuff.

**maat55** · 12-05-2009, 07:59 AM

Originally posted by disneysteve View Post

Just a difference in philosophy, I suppose.

To me, an investment is something bought for the purpose of making a profit.

We did not buy our house in order to make a profit. We bought it to have a place to live and keep our stuff.

There is nothing wrong with how you bought your house.

The difference here is that he is single and not likely looking for his last home to start with, he may as well make it a good stepping stone for later.

He certainly should research any move he makes and apply all possible influences( job security, is he staying in the area, etc.) to the decision.

**snafu** · 12-05-2009, 05:23 PM

How stable is your employment? Are you firmly linked to your location? Would you be likely be transferred or find better employment opportunities elsewhere? Home ownership is a huge commitment not easily set aside.

Personally, I'd vote for buying a 2 bdrm condo & room mate option to help with initial expenses since the 1st few years you are paying interest on the mortgage and very little principal. I like stability

**fruitbowlk** · 12-06-2009, 05:04 AM

How much longer will you be paying a $400 Car payment?

26 Year Old Looking to move out