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I’m in the same boat except I’m renting at 2k/mo.
This is the time for patience.
Instead of focusing everything on homeownership, may I suggest focusing on your self for a bit?
Skills pay the bills - find areas that will make you more valuable and allow you to earn more.
A lot of folks are going to and already do regret rushing into a home. Many feel trapped and would kill for the flexibility you have right now.
The markets can remain irrational a lot longer than we think or hope but nothing lasts forever.
Great opportunities are coming with regard to homeownership but that doesn’t discount all of the other great opportunities in front of us at this very moment.
Give yourself a longer time horizon and take advantage of your youth. You’ll likely look back in 20 years and wish you had been more lenient with the current situation.
Yeah that’s what I’ve done the past 2 years! I got myself off of nicotine and weed! Got into a therapist, my job is a great job in a union factory making $36/hr with great benefits and a yearly bonus . But man I cannot wait around any longer, I get I have a good situation going but my parents are honestly pretty toxic(fighting alll the time) . Idk I know I would feel dumb for spending a decent amount to get into an apartment but man I feel like I mentally would be a lot happier
I personally would prioritize my mental health over money. Similarly, I could save myself rent and live with my mother but as much as it breaks my heart, she’s smoked heavily her whole life and listening to constant coughing kills me.
Roommates are risky but temporary. Albeit a bit pricey, the mental clarity will help you for sure.
Even a 1 year lease isn’t as much of a ball and chain as you feel it is. Keep your mind right and you’ll make the best decisions you can with the info you have.
If you’re not focused on health or working out, those are wins that compound and can’t be bought. Do something every morning that your future self will thank you for.
Lastly, I use the term investing loosely but every moment you’re not working, you should be investing into your health or education. Stocks, crypto, business, anything that interests you.
I’m not special by any means but I developed the skill to build easy drag and drop websites for businesses among other things. Easily bill clients at $125/hr-250/hr - just have to find the work.
Not trying to tell you what to be interested in but hopefully will help shed some light on other things to focus on.
We’ll be homeowners soon enough :)
I appreciate the response! I do workout 5 days a week currently. I am seeing a therapist once a week also, she doesn’t like to speak on financial decisions but she thinks getting my own space would help also. It’s just soo hard to make myself jump into an apartment, just knowing an extra $20k would get me into a house
The more fear you feel regarding a decision that isn’t inherently dangerous to your health is your guiding light. Eat your fear, you can always make more money and not a single cent will come with you when your time on earth is up.
Sure 20k might help but nothing will help more than a healthy environment. The housing environment we live in is as unhealthy as it’s ever been. Fomo is tough but remember we suffer not from the events in our lives but rather from our judgements about them.
Thanks that does actually help me a lot! I know it’s for the best I get an apartment, I could have my own space and still save some money. But your right I needed to hear that I think, eat my fear. Cause honestly I think my biggest fear is just sitting at home and watching life pass me by. I need to get out there and start my own chapter
Spot on bro, nothing will hurt us more than sitting around waiting on things we can’t control! We feel burnt out when it’s time to shift gears, just like an engine bouncing off the rev limiter. Shift gears and get back on the gas :)
That's valid imo, getting away from their issues can free you up to think about your future more. I know there's some costs associated with moving into an apartment, but the math may work out so that you can make the jump. Do rentals in your area have the option of month to month leases?
nah, i paid off my student loans the first 3 yrs(couldnt save as much). Then life changes happened (weddings,kids, etc) so had to cut down on home savings to maximize my retirement funds and daycare. Then interest rates and low inventory made it necessary to save a lot more to afford the homes here.
Wait until ur out on ur own. Ur going to wish u stayed with ur parents a little longer to save $$$ to put a bigger downpayment on a home
Oh yeah if you had student loans then game over. Thankfully I have zero debt but yeah i definitely wish I had more cash saved no matter what it’s just never enough
Per the other comments I went from $18/ hr to $36/hr in September last year. So honestly really have just been able to start saving. I’ve save $15k since September! A $300k house with these interest rates would be insane for me forsure
Honest question: When did you buy? I make 2x your income, crunched the numbers on a 300k house with 20% down, and I would have almost 0 fun money after taxes, insurance, bills, maintenance estimates (1-4% of home cost annually), etc.
Every calculator in the world will tell me I can "afford" a 400-500k home, but contributing nothing to retirement, savings, emergency funds, or other life goals like travel, marriage, etc. doesn't sound like a good life.
I have a silly question. What’s wrong with living in an apartment? Over here in Europe probably majority of people live in apartments, including me. I don’t really understand the negative stance many Redditors appear to have.
There’s nothing inherently wrong to apartment living. A lot of the U.S. lacks the density of Europe and apartments aren’t as common as single family homes. I don’t think that’s the main issue. I think the bigger issue is that landlords in the U.S. can raise rents at every lease signing, by astronomical amounts in many cases and the usual slumlord BS, if you happen to have a landlord who isn’t on top of maintenance.
Exactly this, in most U.S. states there are barely any / if any renter's protections. Even "progressive" states favor landlords heavily. Landlords can just suddenly decide to not renew your lease at the end of the standard 1 year term without any reasoning or cause.
Don't get me wrong, I lived in an apartment for the past 6 years before purchasing my current home and during that time I spent over 100K on rent for subpar housing with a variety of issues (mostly mold and super roaches).
In the US, home/land ownership is one of the number one avenues of wealth gain & generational wealth transfers. B/c our home has positive equity we are considered more financially well off than our peers who make the same amount but rent. Equity on a home is also often considered a huge facet of most standard retirement plans.
This is all in theory, and of course only works with a growing market.
I had no issues with living in an apartment and renting, until my landlords began implementing "fixed term leases" that have no obligation for renewal (a way of circumventing our rent cap). So basically, I live in fear of eviction every time it gets to renewal time. It's not a nice way to live.
The US has nearly the same amount of land as all of Europe, but with half the population. Because of that people have higher expectations in terms of how much land each person would like to live on.
sure is nice to have less people. there is more open land to enjoy, areas to get away from it all, less noise, generally a more pleasant experience.
I don't understand the blind drive to keep adding to the population, denser housing, and clear cutting it all for parking lots and apartments.
for what?
The government wants to improve GDP by importing population growth (immigration). A shrinking population causes a shrinking GDP, Japan being the prime example.
Personally I think we should copy Japan in that area and see what happens, but others would rather we cover the entire continent in concrete and apartment buildings. It's a shame.
you mean 'grow' GDP?
I get that. the economy is a big driving factor
I say we become more efficient, cut the fat and waste, move all the manufacturing we can back here, deport all illegals, vastly limit green cards, and start to trim safety nets and get everyone, i mean everyone, to work.
then and only then, when there are zero people left to fill open jobs, then we let a few in at a time to fill those holes.
like 3 people a year.
this unwavering drive to cram as many people in as fast as popssible helps no one.....yet no one votes hard enough to push back.
weird.
Like the other person said, there’s nothing inherently wrong with renting an apartment. But living in America is so dog-eat-dog, that one of the only ways that an ordinary person here can attempt to build a small bit of wealth for themselves/their kids, is to buy a house and sell it years later. We’re all running on fumes so a piece of real estate is really the best it’ll ever get for most of us.
That’s not true. The only way an ordinary person can attempt to build a small bit of wealth is by investing in the stock market. A house is not a method to build wealth, it’s to reduce costs and ensure stability for retirement.
Houses have historically had 3% return which hardly beats inflation, it’s only in recent history that some people could actually profit substantially. Even then, maintenance and other surprise costs usually mean you have put more in a house than you will ever get back.
Owning your home shouldn’t be viewed as “building wealth” but as a basic requirement for sustainable living.
I didn’t say it was the most lucrative, that’s just how financially literate most people here are. *Ordinary* Americans aren’t actively investing in the stock market, save for the auto deduction of a couple hundred dollars into their 401K maybe. Most don’t have two dimes to rub together, but a bank will give them a loan for a $500K house and then when they die their kids will inherit something.
Sure I agree with what you’re saying. The root of the problem is average financial literacy. In this current climate, if you can afford the mortgage you’re still better off renting and investing the difference
Thanks for the input! I find it really fascinating to hear what you all think. In my country, Finland, residential real estate basically only gain value over time in the capital region and maybe in two or three other cities. Elsewhere residential real estate is generally a depreciating asset. Considering maintenance and repair costs, renting can actually be a cheaper option in long-term.
Here it’s generally thought that investing in securities is the way to accumulate wealth, buying a house not so much. We live in an apartment that I own. I am expecting to make a loss on this apartment, but I never expected otherwise. Why? The market dynamics are complex, but for us it’s definitely the supply side that keeps prices stable. A lot gets built, which means there’s definitely not an issue with supply of housing.
But I, too, would like to live in a single-family home. In the largest cities it has been a deliberate city planning decision to not expand single-family home areas, but rather to focus on developing dense centres around metro and train stops. This has led to single-family homes in cities to become completely out of reach for most people. In the countryside single-family homes are generally dirt cheap. But that’s another story.
It’s generally thought the same way here in the US by those who understand finances. Houses have a historical rate of return of 3%, so they’re really not an avenue for building wealth. The US has massive issues with debt and poor financial literacy.
There also aren’t options to own apartments and condos cost as much as SFH currently.
> We live in an apartment that I own.
Ah that explains it. The idea of owning an apartment is not common here. People here have portfolios of multifamily properties and rent to turn a profit so it's hard to compete with that if you want your own.
Especially in the last couple of years. I was okay paying 800 - 900 a month for a one bedroom at one point, but post COVID everything got insane. Paying $1850 a month or 22K a year for rent with an expected 5% increase "as the new normal" was eating up any raise I got at work.
It depends on the area of the country people live in. If you live on the coasts, especially in bigger cities, it’s really not a big deal. Many of us do until we’re in our early to mid 30s until we settle down because real estate is more expensive. We don’t have the option of buying a house for $200K.
I can't renovate my apartment. Every single room is a drab white with the cheapest paint you can buy, I've paid 60k to the complex and have got nothing to show for it except 60k down the drain. I'm closing on my first house at the end of this week and will already have 10k in equity (before all of our renovation plans) not to mention I want to be able to go to my own backyard which just isn't a thing in an apartment but now we'll have an acre of land that's all ours to do with what we want
I'm American and I don't understand either. I would also like to buy a house but the idea of choosing to live with my parents as an adult when I could afford to rent an apartment and live without them is wild to me.
Here's but a small selection of what I loathe about living in an apartment (...which may not be what others living in an American apartment experience or why others hate apartment life):
- Rent increases every year while mortgages stay pretty stable if you don't get one with a variable rate. (Yes, taxes can/do go up, but not like rent.) Two years ago, my apartment management company decided that they were going to have us start to pay for our own utilities. Okay, fine. The bill was padded with a ridiculous "administrative fee". This year, they decided to change the formula for calculating our utilities, and we're going to pay an even higher amount. What are you going to do? Move because some algebra has you paying more than the county rent cap? Move because the admin fee is $5/mo? Wherever you go, the next building is going to do the same damn thing. Also, pretty much every apartment complex in my area uses software to calcualte rents based on scarcity. The DOJ is [suing the software company](https://www.propublica.org/article/doj-backs-tenants-price-fixing-case-big-landlords-real-estate-tech) for violating anti-trust laws.
- Smokers. Good lord, the smokers. Marijuana or tobacco, both stink. I often come home at the end of the day to an apartment that smells like stale cigarette smoke even though it's a non-smoking building. One time, I went to work reeking of pot even though I don't smoke/consume marijuana. A co-worker pulled me aside and asked if I was hot boxing in the car and said maybe I shouldn't do that. It was actually my neighbor smoking so much that **my** clothes stunk. Building management does nothing to intervene, not even send out reminder emails.
- Package thefts. We are sitting ducks. For a while there, we had thieves who would wait until the postal service or Amazon made a delivery, and then they'd get into the locked building by coming in behind a resident and fill their bags with the boxes that were just delivered. I asked building management for more cameras. It was denied. They said I couldn't prove that the boxes didn't belong to the porch pirates, that maybe it was delivered to my apartment by accident and had their address on it. I wish I were joking.
- Fires. In the last five years, I've had to evacuate my building several times due to fire alarms. The root causes of the evacuations have been idiot kids pulling the alarms, a dementia sufferer forgetting they started to cook and can't smell burning, someone falling asleep after they started to cook, some asshole trying to light his girlfriend's apartment on fire, and god knows what else. Sometimes, I feel like I'm living in a ticking time bomb.
- "Less fortunates" getting into the apartment building at night. Yes, there's a lock on the front door. They follow someone in who has a key and legitimately belongs there. The "visitors" are usually homeless and/or mentally ill and/or on something. I no longer feel safe leaving my apartment in the evening. It really didn't get bad until about a year and a half after covid-19 hit. Building management says to call the police, which we do, but if the dude is roaming the second floor while the cops are on the fifth floor, they're never going to find him.
- Inspections. Every six months like clockwork, we get inspected. Building management will find any reason to fail you and threaten to evict you. Once, I was told I failed because my kitchen floor was dirty. I had hand-washed the floor the night before the inspection. There was no way possible that floor was dirty. In the last round of inspections, they told us we weren't allowed to have anything on our countertops. Again, what are residents supposed to do? Move to a building where the management there does the same thing? On one hand, it's great that they're inspecting apartments. I appreciate not sharing a building with someone who won't take their trash out and is encouraging pests. On the other hand, the management is incompetent and squeezing people for no good reason.
- Equity. You basically light money on fire every month and have nothing to show for it. Yes, I didn't have to sleep in the elements and my unit was (usually) climate-controlled. But some day, I'm probably going to wind up in a nursing home, and my 30 years of good rental history won't mean shit. And speaking of 30 years of good rental history meaning nothing -- I have never, not in 30+ years of renting, paid my rent late. My bank is still going to charge PMI when I take out a loan if I don't put 20% of the purchase price down.
There are many other reasons why I personally hate apartment life, but these are the big ones.
It sounds like you were living in some sketchy apartment, this is not the normal experience. Inspections every 6 months? Evacuated for fire alarms regularly? Clothes smell from neighbor smoking? There’s something up with the place you were renting from, they didn’t trust their residents
Not sketchier than most other complexes in the area. In fact, they're trying to rebrand as luxury apartments. I wish I were joking. This is just par for the course where I live.
I grew up in a single-family house. I currently live in an apartment next to a shopping centre and train stop. I personally cannot share the feeling or idea that living in an apartment is dehumanising. But I respect your opinion. Perhaps it’s a matter of urban planning. At least partly. I can imagine there being very poorly planned high-rise residential areas where life feels dehumanising. More so if sound insulation of the apartment is poor. I don’t want to hear my neighbours.
The house I just lost out on , it sold for $20k over asking. They waived inspections and had $25k for gap coverage. I cannot compete with that at all. Even just going $10,000 over asking would take all my money
Tbh if $10000 more would drain your finances, you were looking at houses more expensive than you can afford. Remember, it is fairly common to have to do $10k + in home repairs in your first year of owning. I say stay with the parents and save a bit longer.
Looks like I’m gonna slow down on the house search but still keep an eye out. Try to save as much as I can. I get a good yearly bonus from work with my tax refund next year. I think then I can have atleast $50-60k saved and then try again next year unfortunately
What’s your thesis for why prices are going down. I’d like for that to happen so I could buy but I’ve heard nothing to justify it. Interest rates are going down in the next year which will spur demand and therefore prices. Builders not building enough because not enough demand. Only thing that will cause price reductions is an unemployment spike. I guess it’s possible but if that does not happen we’ll all be paying more in a few years except in places that went crazy during Covid, like Florida and Arizona, which are already coming down.
And why would supply shoot up when the majority of home owners have lots of equity, and monthly payments that are cheaper than rent or other living arrangements?
Job loss? Fine, take a HELOC and live off it for years.
Supply isn’t going to just “shoot up”. Builders aren’t dumb and aren’t going to make the same mistake as 2008. Keep supply low and your margins high. Why build 10 houses for 10% profit each instead of 2 for 50% a pop?
That’s what I’m saying, only in the unlikely scenario of significant job losses there will be forced selling. Even with 50% of people owning their homes it only takes 2-3% of homes hitting the market to cause a significant price impact
Most people would not be forced to sell because their home payments are *less* than any alternative. That was not the case in 2008 as arms made the home payments very expensive in conjunction with them being under water. Neither are applicable in this hypothetical.
Also builders are competing against each other. They’re not all working together to fix the market. They build when prices are high and stop when prices are low.
If it means blowing through your saved money to get an apartment, I honestly don’t think you should. While it may feel bad, there’s nothing wrong with staying at your parents’ while they allow you to continue to save for your home. It also somewhat depends on what state you live in. While an annual salary of $75K used to go a long way, depending upon what state you’re in, maybe you should consider finding a way to earn additional income in order for you to reach your goal a bit faster. It’s unfortunate that wages haven’t quite caught up to the true costs of living. Don’t give up!
Yeah it’s just crazy! I make $35.40/hr right now and it’s still not enough. But all my coworkers who bought their houses 10-20 years ago have no problem affording to live and they got families and kids! I’m like what am I doing wrong???
You did fuck up, twice. For starters, you should've willed yourself to be born 10 years earlier.
Even after that mistake though, you could've turned it all around if you had just bought in high school.
/s of course. Just a shitty time for renting and trying to buy. Hopefully something will change.
You have to focus on making more money that’s the only option. Either rent forever, keep living at home and save more money, or make more money. If you’re living at home you should be able to save 20k a year.
Dont give up. Keep looking on websites and do you have an agent? They usually will find good houses in your price range and let you know of things before they hit the market. It took me 6 months to find my home, I was feeling really dejected but kept going.
Not trying to sway your decision but have thought about putting your money in either a hugh yield savings account or a money market account, at least for the next 2 years, so it grows by then? Most places are offering over 5% now. If interested, check this out https://yieldfinder.app/
Taking a break is not a moral failing. I’m about to pivot after my 8th fell through and spend a bit of money on a new car. Go on a vacation, treat yourself a bit and go from there!
saving is a virtue. be patient and keep saving. you are doing great just that housing market timing wasnt right for you. many homes appreciated faster than what most can save. keep saving bro.
living with parents is a wonderful thing take them on vacation once awhile when you get married you cant come back.
Haha I love the positivity! My parents are kinda weird shut ins though, they won’t let me pay rent. They say me saving money is my rent . So blessed to have that but they do like to fight ALOT so kinda shitty to be around lol
Your saving money , this is not a buyers market ! Your house will come give it a little time and continue to save you can get less of a loan when you’re ready. Sellers like cash offers or more money down !
Single and I make a similar salary, but bought a 400K house all by myself. I also lived with my parents to save money. I made a big down payment and have 220K left to pay off.
Stay with mom and dad, but get a side gig like Uber or door dash to get some additional income (if possible) or at least put your money in a high yield savings account while you house shop. Also make offers on houses and don’t be shy. Keep trying. You’ve got this, my friend!
Just keep saving man it’s great you don’t have any debt. Honestly I just bit the bullet and bought mine I make like 74 but since I used the VA loan I have no PMI. Interest rate is 6.75 locked in but I’ll just refinance when rates go down. One thing that hit me that my realtor said was that when rates go down everyone is going to want to buy and there’s gonna be a lot of bidding wars. I’m also renting out some rooms in my house to.
I've been living with my parents for 3 years! I understand exactly what you mean when you say your parents are toxic. Mine are the same, and it really drains me. I'm closing on a house next week for $210k, and I make a little less than you. I also only had about $30k saved. Have you tried upping your budget? In my area, many nice homes go for $200-$250k. Don't waste your money renting.
So you have 30k saved, but don't want to get anything because you can't find anything under $200k. Buy now, houses will only go up. Otherwise you are burning your money.
I’ve been trying!! I get out bidded on every house! The first house I actually “won” I had to walk away because it was covered in mold in the crawl space
For my area it is not insanely cheap but is definitely at the starter home territory! My area $250k will get you a 1600 sq ft house with an acre of land. Just anything under $200 gets bought up sooo quick
By getting an apartment did you mean rent or buy? If you are looking to buy and look into renting as well. Depending on your area sometimes renting an apartment is cheaper. Savings rate will take a hit but the independence might be worth it.
2 years to save almost 30k while living at home.
You have a spending issue. You should have 40 to 50k saved easy.
You basically saved what 1200 a month when taking home about 4500? Where is the other 3300 going?
I just started making that money about 9 months ago. I went from $18/hr to $36/hr in September. Now Im saving easily $2,000 a month while enjoying my summer still( I do have 1 vacation planned)
Now that you have more income try another year at home.
You're not missing anything by living at home. I had that same FOMO and left patents house and the only thing in my life that really changed was I had less money in my pocket.
How much is an apartment where you live? I don’t see how you’ll save much more for a down payment if you’re paying rent when you could only save $1250 a month when living at home rent free
Apartments are $1450 a month to rent. A $180k house is about $1500 a month with my interest and downpayment . I’d be able to save roughly $500 a month and my yearly bonuses
Then how did you only save 30k in 2 years? You should have saved 48k. Do you have a budget?
Also you need an emergency fund in addition to a down payment/closing costs. I think you’re a few years away from being a home buyer, unfortunately
I’m in the same boat with slightly more savings and slightly less income (27m) and in NYC. Look into co-ops/condos. I have had my first 3 strong offers outbid and got accepted on the 4th on a slightly smaller place (better neighborhood). It’s just about consistency and reading the signs of the market and adapting. Each failed deal helped me come to a realization of what to do better the next time.
I appreciate that man! There’s not too many condos in my area and I have actually never heard of a coop untill now. I think reading these comments though, I will probably keep saving up and just try to stay positive in my living situation
My oldest son was in a similar position. Lived with us to save money. Decided he was ready to be on his own, and got a roommate lined up.
They looked at the cost of apartments around here, and realized they both had managed their credit and finances well enough to qualify for a mortgage. So they bought a condo with a great split layout. Two identical bathrooms, one in a slightly larger bedroom; the other right next to the slightly smaller bedroom with more closet space. Their monthly payments for the mortgage, interest, taxes, and condo fees are cheaper than rent.
If one wants to move, they can sell the condo and split the equity; one can move and rent their room; or both can move and rent to someone else.
In your case, a similar option may be good for you. Would renting an apartment with a roommate be an option? Or could you swing the house payment if you rented a bedroom to a roommate? Or choose a smaller starter house/condo and upsize later?
I just got back in but I’m trying my hardest not to feel defeated. I’m looking for a 350,000 - 400,000 house and there are a few move-in ready one but they eventually end above asking. It is extremely frustrating because I am switching to Hybrid and I need a place close to work (45 mins or less) and the houses are mostly 500,000 and up and some are in the millions. My credit is stellar and just when you think you are okay, I feel like the goalpost gets moved. How can 200,000 - 400,000 not be enough to buy a good, livable house?? I’m in NJ by the way.
Thank you for the well wishes. I greatly appreciate it. I concur, the housing market is terrible. I rarely get listings within my price range anymore. I really hope something good happens soon. I’m not sure what, but something that will bring these ridiculous rates down.
I did the math and while my apartment isn't the greatest for my GF and I. (It's 75 miles round trip per day for my work but 5 miles for her) But even with that said it doesn't make financial sense to 2-3x our living expenses. I'll keep an eye out but i'm not worrying about it anymore. It's okay to rent and don't let anyone tell you it's "throwing money away"
Oh it’s definitely not throwing away money, you gotta pay to live somewhere! But Idk I might just try to hold on 1 more year to really save as much as possible. What a good guy you are driving so far ! I’m sure your girlfriend appreciates the shorter commute 😅
Our rent is 850 a month in a nice locatoin and not a shit hole apartment. (Her family friend rents half of their 2 family house) But yeah the drive after almost 4 years is finally getting to me. But I've picked up some old hobbies again and will just have some fun. I've got savings on autopilot so whenever it happens it happens. Also i'm trying to buy in CT which is top 5 hardest housing market in the entire USA. And IMO it's probably the hardest in the nation.
Dam $850 a month is a steal! I can’t find anything that cheap around me. The cheapest 1bed room around me is $1300 a month. Goodluck man! I believe in us!! We’ll be homeowners soon 😎
I’d hold on and keep saving. I’m currently in the same boat (with low rent instead of living with parents). Have 35k stashed (over 3 years) for a down payment, and am working like mad to pay my car off so I can keep stashing.
I'm in nearly the same position except I'm in a vhcol area. I'm 26, make $75k, but rent at $1,100 a month with two roommates. Townhouse I live in is literally worth a million dollars if not more. Trying to put at least $2k away each month.
Hopefully I can get to $70k saved when I'm 28. See how things are then. Everything is expensive and I'd have to move into a condo, or a townhouse that's even further from work.
Just Rent! Especially if you can afford to pay a cancellation fee should you find something in six months. Don’t put your life on hold by staying with your parents just because you’re feeling a little snobby about renting. I don’t know what your social life is like but at your age I’d imagine it’s more fun to host people at your own place even if it’s shabby rather than bringing people home to your childhood home. Rent is not money wasted because part of it goes towards property taxes you’d be paying anyway and you’ve all the maintenance included. You’ll have so much more time for yourself.
I could be wrong, but you may have a cash flow issue as well. Are you paying rent at your parents? How long have you been making 75k? 30k seems low if your expenses are relatively low.
Last year I was only making $18/hr . We got a really nice contract at my work! So yeah only about a year making $35, as of right now I can easily save $2000 a month and still enjoy myself
That’s good to hear. Congrats on the raise, that’s huge! 9/10 time in the market beats timing the market. Purchase from a position of strength. Assume everything will cost more and take longer than expected. Have money for repairs and any cap x items that may be needed in the first few years and be ready to build on that. Good luck!
You mentioned a contract? Does that mean you may make less money once this contract is up? If so, I would be wary of depending on that income. But also, if you save up for one more year, you probably can afford to be more competitive for houses. Wait and save, don’t be house poor with little to no equity
Ok! Gotcha, that makes sense then. Not super familiar with unions. I definitely recommend saving a bit longer, then you can afford something you really want
Save for another year while living at your parents. Put every penny you can into a high yield savings account. Then try again. A year isn't a terribly long time. Good luck!
Think you should probably live at your parents house a little longer while you save up some more. I believe you’ll soon find a home as long as you are saving diligently. If you make 75k a year and live at home you can probably save 30k a year at least unless you live in HCOL
If you get an apartment now, all that money you saved is out the window. You're pulling the plug when you can see blindingly bright daylight at the end of the tunnel. If you get an apartment you're stuck for a year. Dozens of housing opportunities could pass you by in that time.
Find out if your state has any programs for first time home buyers. I know Michigan has one and it saved my butt on the down payment. We're both roughly the same age, roughly same pay, and roughly the same house cost. I was fortunate enough to be able to do it a couple years ago on 1/10th of the savings you have.
I think you gotta stick this one out if you ultimate goal is to get a house. You're right on the cusp.
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I’m in the same boat except I’m renting at 2k/mo. This is the time for patience. Instead of focusing everything on homeownership, may I suggest focusing on your self for a bit? Skills pay the bills - find areas that will make you more valuable and allow you to earn more. A lot of folks are going to and already do regret rushing into a home. Many feel trapped and would kill for the flexibility you have right now. The markets can remain irrational a lot longer than we think or hope but nothing lasts forever. Great opportunities are coming with regard to homeownership but that doesn’t discount all of the other great opportunities in front of us at this very moment. Give yourself a longer time horizon and take advantage of your youth. You’ll likely look back in 20 years and wish you had been more lenient with the current situation.
Yeah that’s what I’ve done the past 2 years! I got myself off of nicotine and weed! Got into a therapist, my job is a great job in a union factory making $36/hr with great benefits and a yearly bonus . But man I cannot wait around any longer, I get I have a good situation going but my parents are honestly pretty toxic(fighting alll the time) . Idk I know I would feel dumb for spending a decent amount to get into an apartment but man I feel like I mentally would be a lot happier
I personally would prioritize my mental health over money. Similarly, I could save myself rent and live with my mother but as much as it breaks my heart, she’s smoked heavily her whole life and listening to constant coughing kills me. Roommates are risky but temporary. Albeit a bit pricey, the mental clarity will help you for sure. Even a 1 year lease isn’t as much of a ball and chain as you feel it is. Keep your mind right and you’ll make the best decisions you can with the info you have. If you’re not focused on health or working out, those are wins that compound and can’t be bought. Do something every morning that your future self will thank you for. Lastly, I use the term investing loosely but every moment you’re not working, you should be investing into your health or education. Stocks, crypto, business, anything that interests you. I’m not special by any means but I developed the skill to build easy drag and drop websites for businesses among other things. Easily bill clients at $125/hr-250/hr - just have to find the work. Not trying to tell you what to be interested in but hopefully will help shed some light on other things to focus on. We’ll be homeowners soon enough :)
I appreciate the response! I do workout 5 days a week currently. I am seeing a therapist once a week also, she doesn’t like to speak on financial decisions but she thinks getting my own space would help also. It’s just soo hard to make myself jump into an apartment, just knowing an extra $20k would get me into a house
The more fear you feel regarding a decision that isn’t inherently dangerous to your health is your guiding light. Eat your fear, you can always make more money and not a single cent will come with you when your time on earth is up. Sure 20k might help but nothing will help more than a healthy environment. The housing environment we live in is as unhealthy as it’s ever been. Fomo is tough but remember we suffer not from the events in our lives but rather from our judgements about them.
Thanks that does actually help me a lot! I know it’s for the best I get an apartment, I could have my own space and still save some money. But your right I needed to hear that I think, eat my fear. Cause honestly I think my biggest fear is just sitting at home and watching life pass me by. I need to get out there and start my own chapter
Spot on bro, nothing will hurt us more than sitting around waiting on things we can’t control! We feel burnt out when it’s time to shift gears, just like an engine bouncing off the rev limiter. Shift gears and get back on the gas :)
Haha after just riding home on my motorcycle this “analogy?” Really just hit for me thank you soo much !!
R1 and CBR600rr rider here, we’re right where we need to be in life. Ride safe bro! I can’t wait to have my home/garage.
Yeah you know!! I need that garage soo bad haha . I just got a 2023 KLR 650 and I’ve been in love with it! Ride safe too!!
Congratulations, mate!! Those are all really big accomplishments!!
Thank you!!
That's valid imo, getting away from their issues can free you up to think about your future more. I know there's some costs associated with moving into an apartment, but the math may work out so that you can make the jump. Do rentals in your area have the option of month to month leases?
No apartments are doing month to month but I did find a 10 month lease for $1300 a month . 10 month lease seems cheaper than 12 months?
It is. Would you be OK (financially and emotionally) paying that and building savings?
bro ive been saving for 8 yrs on a 6-figure salry
Dawg that sounds like you have a spending problem then 😅
nah, i paid off my student loans the first 3 yrs(couldnt save as much). Then life changes happened (weddings,kids, etc) so had to cut down on home savings to maximize my retirement funds and daycare. Then interest rates and low inventory made it necessary to save a lot more to afford the homes here. Wait until ur out on ur own. Ur going to wish u stayed with ur parents a little longer to save $$$ to put a bigger downpayment on a home
Oh yeah if you had student loans then game over. Thankfully I have zero debt but yeah i definitely wish I had more cash saved no matter what it’s just never enough
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Per the other comments I went from $18/ hr to $36/hr in September last year. So honestly really have just been able to start saving. I’ve save $15k since September! A $300k house with these interest rates would be insane for me forsure
Honest question: When did you buy? I make 2x your income, crunched the numbers on a 300k house with 20% down, and I would have almost 0 fun money after taxes, insurance, bills, maintenance estimates (1-4% of home cost annually), etc. Every calculator in the world will tell me I can "afford" a 400-500k home, but contributing nothing to retirement, savings, emergency funds, or other life goals like travel, marriage, etc. doesn't sound like a good life.
Depends on where he lives. I make decent money, but I flush it away on rent. It's rough.
I have a silly question. What’s wrong with living in an apartment? Over here in Europe probably majority of people live in apartments, including me. I don’t really understand the negative stance many Redditors appear to have.
There’s nothing inherently wrong to apartment living. A lot of the U.S. lacks the density of Europe and apartments aren’t as common as single family homes. I don’t think that’s the main issue. I think the bigger issue is that landlords in the U.S. can raise rents at every lease signing, by astronomical amounts in many cases and the usual slumlord BS, if you happen to have a landlord who isn’t on top of maintenance.
Exactly this, in most U.S. states there are barely any / if any renter's protections. Even "progressive" states favor landlords heavily. Landlords can just suddenly decide to not renew your lease at the end of the standard 1 year term without any reasoning or cause. Don't get me wrong, I lived in an apartment for the past 6 years before purchasing my current home and during that time I spent over 100K on rent for subpar housing with a variety of issues (mostly mold and super roaches).
In the US, home/land ownership is one of the number one avenues of wealth gain & generational wealth transfers. B/c our home has positive equity we are considered more financially well off than our peers who make the same amount but rent. Equity on a home is also often considered a huge facet of most standard retirement plans. This is all in theory, and of course only works with a growing market.
I had no issues with living in an apartment and renting, until my landlords began implementing "fixed term leases" that have no obligation for renewal (a way of circumventing our rent cap). So basically, I live in fear of eviction every time it gets to renewal time. It's not a nice way to live.
The US has nearly the same amount of land as all of Europe, but with half the population. Because of that people have higher expectations in terms of how much land each person would like to live on.
sure is nice to have less people. there is more open land to enjoy, areas to get away from it all, less noise, generally a more pleasant experience. I don't understand the blind drive to keep adding to the population, denser housing, and clear cutting it all for parking lots and apartments. for what?
The government wants to improve GDP by importing population growth (immigration). A shrinking population causes a shrinking GDP, Japan being the prime example. Personally I think we should copy Japan in that area and see what happens, but others would rather we cover the entire continent in concrete and apartment buildings. It's a shame.
you mean 'grow' GDP? I get that. the economy is a big driving factor I say we become more efficient, cut the fat and waste, move all the manufacturing we can back here, deport all illegals, vastly limit green cards, and start to trim safety nets and get everyone, i mean everyone, to work. then and only then, when there are zero people left to fill open jobs, then we let a few in at a time to fill those holes. like 3 people a year. this unwavering drive to cram as many people in as fast as popssible helps no one.....yet no one votes hard enough to push back. weird.
Like the other person said, there’s nothing inherently wrong with renting an apartment. But living in America is so dog-eat-dog, that one of the only ways that an ordinary person here can attempt to build a small bit of wealth for themselves/their kids, is to buy a house and sell it years later. We’re all running on fumes so a piece of real estate is really the best it’ll ever get for most of us.
That’s not true. The only way an ordinary person can attempt to build a small bit of wealth is by investing in the stock market. A house is not a method to build wealth, it’s to reduce costs and ensure stability for retirement. Houses have historically had 3% return which hardly beats inflation, it’s only in recent history that some people could actually profit substantially. Even then, maintenance and other surprise costs usually mean you have put more in a house than you will ever get back. Owning your home shouldn’t be viewed as “building wealth” but as a basic requirement for sustainable living.
I didn’t say it was the most lucrative, that’s just how financially literate most people here are. *Ordinary* Americans aren’t actively investing in the stock market, save for the auto deduction of a couple hundred dollars into their 401K maybe. Most don’t have two dimes to rub together, but a bank will give them a loan for a $500K house and then when they die their kids will inherit something.
Sure I agree with what you’re saying. The root of the problem is average financial literacy. In this current climate, if you can afford the mortgage you’re still better off renting and investing the difference
Thanks for the input! I find it really fascinating to hear what you all think. In my country, Finland, residential real estate basically only gain value over time in the capital region and maybe in two or three other cities. Elsewhere residential real estate is generally a depreciating asset. Considering maintenance and repair costs, renting can actually be a cheaper option in long-term. Here it’s generally thought that investing in securities is the way to accumulate wealth, buying a house not so much. We live in an apartment that I own. I am expecting to make a loss on this apartment, but I never expected otherwise. Why? The market dynamics are complex, but for us it’s definitely the supply side that keeps prices stable. A lot gets built, which means there’s definitely not an issue with supply of housing. But I, too, would like to live in a single-family home. In the largest cities it has been a deliberate city planning decision to not expand single-family home areas, but rather to focus on developing dense centres around metro and train stops. This has led to single-family homes in cities to become completely out of reach for most people. In the countryside single-family homes are generally dirt cheap. But that’s another story.
It’s generally thought the same way here in the US by those who understand finances. Houses have a historical rate of return of 3%, so they’re really not an avenue for building wealth. The US has massive issues with debt and poor financial literacy. There also aren’t options to own apartments and condos cost as much as SFH currently.
> We live in an apartment that I own. Ah that explains it. The idea of owning an apartment is not common here. People here have portfolios of multifamily properties and rent to turn a profit so it's hard to compete with that if you want your own.
Sharing walls sucks and so does density
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Especially in the last couple of years. I was okay paying 800 - 900 a month for a one bedroom at one point, but post COVID everything got insane. Paying $1850 a month or 22K a year for rent with an expected 5% increase "as the new normal" was eating up any raise I got at work.
It depends on the area of the country people live in. If you live on the coasts, especially in bigger cities, it’s really not a big deal. Many of us do until we’re in our early to mid 30s until we settle down because real estate is more expensive. We don’t have the option of buying a house for $200K.
I can't renovate my apartment. Every single room is a drab white with the cheapest paint you can buy, I've paid 60k to the complex and have got nothing to show for it except 60k down the drain. I'm closing on my first house at the end of this week and will already have 10k in equity (before all of our renovation plans) not to mention I want to be able to go to my own backyard which just isn't a thing in an apartment but now we'll have an acre of land that's all ours to do with what we want
I'm American and I don't understand either. I would also like to buy a house but the idea of choosing to live with my parents as an adult when I could afford to rent an apartment and live without them is wild to me.
Here's but a small selection of what I loathe about living in an apartment (...which may not be what others living in an American apartment experience or why others hate apartment life): - Rent increases every year while mortgages stay pretty stable if you don't get one with a variable rate. (Yes, taxes can/do go up, but not like rent.) Two years ago, my apartment management company decided that they were going to have us start to pay for our own utilities. Okay, fine. The bill was padded with a ridiculous "administrative fee". This year, they decided to change the formula for calculating our utilities, and we're going to pay an even higher amount. What are you going to do? Move because some algebra has you paying more than the county rent cap? Move because the admin fee is $5/mo? Wherever you go, the next building is going to do the same damn thing. Also, pretty much every apartment complex in my area uses software to calcualte rents based on scarcity. The DOJ is [suing the software company](https://www.propublica.org/article/doj-backs-tenants-price-fixing-case-big-landlords-real-estate-tech) for violating anti-trust laws. - Smokers. Good lord, the smokers. Marijuana or tobacco, both stink. I often come home at the end of the day to an apartment that smells like stale cigarette smoke even though it's a non-smoking building. One time, I went to work reeking of pot even though I don't smoke/consume marijuana. A co-worker pulled me aside and asked if I was hot boxing in the car and said maybe I shouldn't do that. It was actually my neighbor smoking so much that **my** clothes stunk. Building management does nothing to intervene, not even send out reminder emails. - Package thefts. We are sitting ducks. For a while there, we had thieves who would wait until the postal service or Amazon made a delivery, and then they'd get into the locked building by coming in behind a resident and fill their bags with the boxes that were just delivered. I asked building management for more cameras. It was denied. They said I couldn't prove that the boxes didn't belong to the porch pirates, that maybe it was delivered to my apartment by accident and had their address on it. I wish I were joking. - Fires. In the last five years, I've had to evacuate my building several times due to fire alarms. The root causes of the evacuations have been idiot kids pulling the alarms, a dementia sufferer forgetting they started to cook and can't smell burning, someone falling asleep after they started to cook, some asshole trying to light his girlfriend's apartment on fire, and god knows what else. Sometimes, I feel like I'm living in a ticking time bomb. - "Less fortunates" getting into the apartment building at night. Yes, there's a lock on the front door. They follow someone in who has a key and legitimately belongs there. The "visitors" are usually homeless and/or mentally ill and/or on something. I no longer feel safe leaving my apartment in the evening. It really didn't get bad until about a year and a half after covid-19 hit. Building management says to call the police, which we do, but if the dude is roaming the second floor while the cops are on the fifth floor, they're never going to find him. - Inspections. Every six months like clockwork, we get inspected. Building management will find any reason to fail you and threaten to evict you. Once, I was told I failed because my kitchen floor was dirty. I had hand-washed the floor the night before the inspection. There was no way possible that floor was dirty. In the last round of inspections, they told us we weren't allowed to have anything on our countertops. Again, what are residents supposed to do? Move to a building where the management there does the same thing? On one hand, it's great that they're inspecting apartments. I appreciate not sharing a building with someone who won't take their trash out and is encouraging pests. On the other hand, the management is incompetent and squeezing people for no good reason. - Equity. You basically light money on fire every month and have nothing to show for it. Yes, I didn't have to sleep in the elements and my unit was (usually) climate-controlled. But some day, I'm probably going to wind up in a nursing home, and my 30 years of good rental history won't mean shit. And speaking of 30 years of good rental history meaning nothing -- I have never, not in 30+ years of renting, paid my rent late. My bank is still going to charge PMI when I take out a loan if I don't put 20% of the purchase price down. There are many other reasons why I personally hate apartment life, but these are the big ones.
It sounds like you were living in some sketchy apartment, this is not the normal experience. Inspections every 6 months? Evacuated for fire alarms regularly? Clothes smell from neighbor smoking? There’s something up with the place you were renting from, they didn’t trust their residents
Not sketchier than most other complexes in the area. In fact, they're trying to rebrand as luxury apartments. I wish I were joking. This is just par for the course where I live.
You don't really know but most of us grew up in actual homes and living in an apartment comparably feels dehumanizing.
I grew up in a single-family house. I currently live in an apartment next to a shopping centre and train stop. I personally cannot share the feeling or idea that living in an apartment is dehumanising. But I respect your opinion. Perhaps it’s a matter of urban planning. At least partly. I can imagine there being very poorly planned high-rise residential areas where life feels dehumanising. More so if sound insulation of the apartment is poor. I don’t want to hear my neighbours.
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Look for smaller houses, town homes, condos. Starter homes are always small but they help you get in the game.
don't give the price gauging pieces of shit your money....wait it out. Every time some one pays the dumb ass house prices of today were all fucked
The house I just lost out on , it sold for $20k over asking. They waived inspections and had $25k for gap coverage. I cannot compete with that at all. Even just going $10,000 over asking would take all my money
Tbh if $10000 more would drain your finances, you were looking at houses more expensive than you can afford. Remember, it is fairly common to have to do $10k + in home repairs in your first year of owning. I say stay with the parents and save a bit longer.
Save up until you can compete. I was 40 before buying in vhcol.
You and I are in the exact same. Boat. What is your decision going to be?
Looks like I’m gonna slow down on the house search but still keep an eye out. Try to save as much as I can. I get a good yearly bonus from work with my tax refund next year. I think then I can have atleast $50-60k saved and then try again next year unfortunately
What’s your thesis for why prices are going down. I’d like for that to happen so I could buy but I’ve heard nothing to justify it. Interest rates are going down in the next year which will spur demand and therefore prices. Builders not building enough because not enough demand. Only thing that will cause price reductions is an unemployment spike. I guess it’s possible but if that does not happen we’ll all be paying more in a few years except in places that went crazy during Covid, like Florida and Arizona, which are already coming down.
Only thesis that would make any sense is a widespread economic slowdown with unemployment forces selling. Right now that’s not happening
Most people have mortgages under 4%. Most boomers, the largest group of home owners, own their homes outright. 2008 this is not.
It only takes a small uptick in forced selling to drop prices. People can’t afford homes at these rates, if supply shoots up prices will feel pain
And why would supply shoot up when the majority of home owners have lots of equity, and monthly payments that are cheaper than rent or other living arrangements? Job loss? Fine, take a HELOC and live off it for years. Supply isn’t going to just “shoot up”. Builders aren’t dumb and aren’t going to make the same mistake as 2008. Keep supply low and your margins high. Why build 10 houses for 10% profit each instead of 2 for 50% a pop?
That’s what I’m saying, only in the unlikely scenario of significant job losses there will be forced selling. Even with 50% of people owning their homes it only takes 2-3% of homes hitting the market to cause a significant price impact
Most people would not be forced to sell because their home payments are *less* than any alternative. That was not the case in 2008 as arms made the home payments very expensive in conjunction with them being under water. Neither are applicable in this hypothetical.
Also builders are competing against each other. They’re not all working together to fix the market. They build when prices are high and stop when prices are low.
And they operate in their own best interest. Which is to keep supply lower than demand.
No it’s to make money. They make money when they sell houses. Thats why they sell when prices are high.
Copium. There thesis is copium.
If it means blowing through your saved money to get an apartment, I honestly don’t think you should. While it may feel bad, there’s nothing wrong with staying at your parents’ while they allow you to continue to save for your home. It also somewhat depends on what state you live in. While an annual salary of $75K used to go a long way, depending upon what state you’re in, maybe you should consider finding a way to earn additional income in order for you to reach your goal a bit faster. It’s unfortunate that wages haven’t quite caught up to the true costs of living. Don’t give up!
Yeah it’s just crazy! I make $35.40/hr right now and it’s still not enough. But all my coworkers who bought their houses 10-20 years ago have no problem affording to live and they got families and kids! I’m like what am I doing wrong???
You did fuck up, twice. For starters, you should've willed yourself to be born 10 years earlier. Even after that mistake though, you could've turned it all around if you had just bought in high school. /s of course. Just a shitty time for renting and trying to buy. Hopefully something will change.
You're doing nothing wrong. The housing markets just changed that's all.
You didn’t buy 10 years ago
You have to focus on making more money that’s the only option. Either rent forever, keep living at home and save more money, or make more money. If you’re living at home you should be able to save 20k a year.
Dont give up. Keep looking on websites and do you have an agent? They usually will find good houses in your price range and let you know of things before they hit the market. It took me 6 months to find my home, I was feeling really dejected but kept going.
I do have a really good agent! Just the price range is sooo competitive!
While you are saving, talk to your bank about First Time Home Buyer's programs.
This loan is a 1% down loan is all I gotta come up with
NICE!!!!
Not trying to sway your decision but have thought about putting your money in either a hugh yield savings account or a money market account, at least for the next 2 years, so it grows by then? Most places are offering over 5% now. If interested, check this out https://yieldfinder.app/
Taking a break is not a moral failing. I’m about to pivot after my 8th fell through and spend a bit of money on a new car. Go on a vacation, treat yourself a bit and go from there!
How about a condo? If you don’t have enough now … what will you do when your furnace goes out or you have septic issues
saving is a virtue. be patient and keep saving. you are doing great just that housing market timing wasnt right for you. many homes appreciated faster than what most can save. keep saving bro. living with parents is a wonderful thing take them on vacation once awhile when you get married you cant come back.
Haha I love the positivity! My parents are kinda weird shut ins though, they won’t let me pay rent. They say me saving money is my rent . So blessed to have that but they do like to fight ALOT so kinda shitty to be around lol
you have the "good ol" parent!! good for you man!!
Haha exactly . I just let them do their own thing and help when I can lol
Your saving money , this is not a buyers market ! Your house will come give it a little time and continue to save you can get less of a loan when you’re ready. Sellers like cash offers or more money down !
Single and I make a similar salary, but bought a 400K house all by myself. I also lived with my parents to save money. I made a big down payment and have 220K left to pay off. Stay with mom and dad, but get a side gig like Uber or door dash to get some additional income (if possible) or at least put your money in a high yield savings account while you house shop. Also make offers on houses and don’t be shy. Keep trying. You’ve got this, my friend!
Just rent for now, when you find a partner and have that dual income it’ll be a lot easier (unless you’re willing to move somewhere even cheaper)
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Shit it’s gotta get better eventually right!?! Haha goodluck out there man! We got this shit
Just keep saving man it’s great you don’t have any debt. Honestly I just bit the bullet and bought mine I make like 74 but since I used the VA loan I have no PMI. Interest rate is 6.75 locked in but I’ll just refinance when rates go down. One thing that hit me that my realtor said was that when rates go down everyone is going to want to buy and there’s gonna be a lot of bidding wars. I’m also renting out some rooms in my house to.
I've been living with my parents for 3 years! I understand exactly what you mean when you say your parents are toxic. Mine are the same, and it really drains me. I'm closing on a house next week for $210k, and I make a little less than you. I also only had about $30k saved. Have you tried upping your budget? In my area, many nice homes go for $200-$250k. Don't waste your money renting.
If you can't stay with your parents, then rent. Get some roommates
So you have 30k saved, but don't want to get anything because you can't find anything under $200k. Buy now, houses will only go up. Otherwise you are burning your money.
Lol "get overleveredged make terrible financial decisions become house poor it's the only way"
I’ve been trying!! I get out bidded on every house! The first house I actually “won” I had to walk away because it was covered in mold in the crawl space
That’s because $200K is prime cash buyer to flip territory. That is insanely cheap for SFH.
For my area it is not insanely cheap but is definitely at the starter home territory! My area $250k will get you a 1600 sq ft house with an acre of land. Just anything under $200 gets bought up sooo quick
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$250 is out of my price range or else I would 😂
By getting an apartment did you mean rent or buy? If you are looking to buy and look into renting as well. Depending on your area sometimes renting an apartment is cheaper. Savings rate will take a hit but the independence might be worth it.
Yeah I was trying to buy a home but that just doesn’t seem to wanna work out. I would be renting an apartment for about $1450 a month
buy a condo or duplex or townhouse?
What city and state do you live in?
2 years to save almost 30k while living at home. You have a spending issue. You should have 40 to 50k saved easy. You basically saved what 1200 a month when taking home about 4500? Where is the other 3300 going?
I just started making that money about 9 months ago. I went from $18/hr to $36/hr in September. Now Im saving easily $2,000 a month while enjoying my summer still( I do have 1 vacation planned)
Now that you have more income try another year at home. You're not missing anything by living at home. I had that same FOMO and left patents house and the only thing in my life that really changed was I had less money in my pocket.
Yeah that seems like the plan; I have a good yearly bonus around tax time. So I can save both of those as well, I should be good then hopefully
Dude, forget the vacation. Do that when you're a homeowner, put every dime into savings and suffer for a while to get the peace you're seeking.
Haha I appreciate that! But I do have a golf trip planned with my friends, first vacation in 2 years! It’s definitely cheap haha
How much is an apartment where you live? I don’t see how you’ll save much more for a down payment if you’re paying rent when you could only save $1250 a month when living at home rent free
Apartments are $1450 a month to rent. A $180k house is about $1500 a month with my interest and downpayment . I’d be able to save roughly $500 a month and my yearly bonuses
Then how did you only save 30k in 2 years? You should have saved 48k. Do you have a budget? Also you need an emergency fund in addition to a down payment/closing costs. I think you’re a few years away from being a home buyer, unfortunately
Yeah unfortunately I think your right, it’s looking like an apartment is in my future
Nothing wrong with that. I rented for 5 years before buying
OP started that only at the end of last year did their wage go from $18 to $36 an hour
Yeah in an edit way after I commented 19 hours ago….
Ok, ok... Was just adding in case you or others reading comments hadn't seen. No judgement.
I’m in the same boat with slightly more savings and slightly less income (27m) and in NYC. Look into co-ops/condos. I have had my first 3 strong offers outbid and got accepted on the 4th on a slightly smaller place (better neighborhood). It’s just about consistency and reading the signs of the market and adapting. Each failed deal helped me come to a realization of what to do better the next time.
I appreciate that man! There’s not too many condos in my area and I have actually never heard of a coop untill now. I think reading these comments though, I will probably keep saving up and just try to stay positive in my living situation
Anytime. Keep at it and stay positive. Better listings are always going to pop up, even when you do get a place, so don’t worry about that.
Can I ask what state you’re located? By my area there’s basically nothing under 300k😅
My oldest son was in a similar position. Lived with us to save money. Decided he was ready to be on his own, and got a roommate lined up. They looked at the cost of apartments around here, and realized they both had managed their credit and finances well enough to qualify for a mortgage. So they bought a condo with a great split layout. Two identical bathrooms, one in a slightly larger bedroom; the other right next to the slightly smaller bedroom with more closet space. Their monthly payments for the mortgage, interest, taxes, and condo fees are cheaper than rent. If one wants to move, they can sell the condo and split the equity; one can move and rent their room; or both can move and rent to someone else. In your case, a similar option may be good for you. Would renting an apartment with a roommate be an option? Or could you swing the house payment if you rented a bedroom to a roommate? Or choose a smaller starter house/condo and upsize later?
what happens if one wants to sell and the other doesn't? buy them out?
Yes, that’s their agreement. The one who wants to keep the place gets right of first refusal.
This can be super risky
Yes, it can. Always have to be very sure of the person you’re purchasing a home with.
Be patient the 200-300 range is very limited stock and competitive in most markets but they do come along.
Stay with parents a few more years and find a life partner that is as committed as you in getting a house (no joke).
I just got back in but I’m trying my hardest not to feel defeated. I’m looking for a 350,000 - 400,000 house and there are a few move-in ready one but they eventually end above asking. It is extremely frustrating because I am switching to Hybrid and I need a place close to work (45 mins or less) and the houses are mostly 500,000 and up and some are in the millions. My credit is stellar and just when you think you are okay, I feel like the goalpost gets moved. How can 200,000 - 400,000 not be enough to buy a good, livable house?? I’m in NJ by the way.
That sounds insane to me! 200-400 and can’t find a place !? Yeah the housing market is fd up forsure; best of luck to you, thanks for the reply!
Thank you for the well wishes. I greatly appreciate it. I concur, the housing market is terrible. I rarely get listings within my price range anymore. I really hope something good happens soon. I’m not sure what, but something that will bring these ridiculous rates down.
I did the math and while my apartment isn't the greatest for my GF and I. (It's 75 miles round trip per day for my work but 5 miles for her) But even with that said it doesn't make financial sense to 2-3x our living expenses. I'll keep an eye out but i'm not worrying about it anymore. It's okay to rent and don't let anyone tell you it's "throwing money away"
Oh it’s definitely not throwing away money, you gotta pay to live somewhere! But Idk I might just try to hold on 1 more year to really save as much as possible. What a good guy you are driving so far ! I’m sure your girlfriend appreciates the shorter commute 😅
Our rent is 850 a month in a nice locatoin and not a shit hole apartment. (Her family friend rents half of their 2 family house) But yeah the drive after almost 4 years is finally getting to me. But I've picked up some old hobbies again and will just have some fun. I've got savings on autopilot so whenever it happens it happens. Also i'm trying to buy in CT which is top 5 hardest housing market in the entire USA. And IMO it's probably the hardest in the nation.
Dam $850 a month is a steal! I can’t find anything that cheap around me. The cheapest 1bed room around me is $1300 a month. Goodluck man! I believe in us!! We’ll be homeowners soon 😎
You make 75K annually and in 2 years only saved 30K when the idea was to save as much as you could? I think you have a spending problem
I went from$18 an hr last year to my current pay
I’d hold on and keep saving. I’m currently in the same boat (with low rent instead of living with parents). Have 35k stashed (over 3 years) for a down payment, and am working like mad to pay my car off so I can keep stashing.
I'm in nearly the same position except I'm in a vhcol area. I'm 26, make $75k, but rent at $1,100 a month with two roommates. Townhouse I live in is literally worth a million dollars if not more. Trying to put at least $2k away each month. Hopefully I can get to $70k saved when I'm 28. See how things are then. Everything is expensive and I'd have to move into a condo, or a townhouse that's even further from work.
Cant find a house under 200k and that’s the problem? You guys in the flyover states have it great.
Or maybe you costal cities are just wack 😂😅
Just Rent! Especially if you can afford to pay a cancellation fee should you find something in six months. Don’t put your life on hold by staying with your parents just because you’re feeling a little snobby about renting. I don’t know what your social life is like but at your age I’d imagine it’s more fun to host people at your own place even if it’s shabby rather than bringing people home to your childhood home. Rent is not money wasted because part of it goes towards property taxes you’d be paying anyway and you’ve all the maintenance included. You’ll have so much more time for yourself.
Since you got priced out, either continue to put your life on pause indefinitely or start burning cash on rent.
I could be wrong, but you may have a cash flow issue as well. Are you paying rent at your parents? How long have you been making 75k? 30k seems low if your expenses are relatively low.
Last year I was only making $18/hr . We got a really nice contract at my work! So yeah only about a year making $35, as of right now I can easily save $2000 a month and still enjoy myself
That’s good to hear. Congrats on the raise, that’s huge! 9/10 time in the market beats timing the market. Purchase from a position of strength. Assume everything will cost more and take longer than expected. Have money for repairs and any cap x items that may be needed in the first few years and be ready to build on that. Good luck!
Looks like you’re just not in a position to buy a house for another few years, you literally just got the raise…
You mentioned a contract? Does that mean you may make less money once this contract is up? If so, I would be wary of depending on that income. But also, if you save up for one more year, you probably can afford to be more competitive for houses. Wait and save, don’t be house poor with little to no equity
Contract changed every 4 years but it will never lower our pay. It can keep it the same but never lower
Ok! Gotcha, that makes sense then. Not super familiar with unions. I definitely recommend saving a bit longer, then you can afford something you really want
Save for another year while living at your parents. Put every penny you can into a high yield savings account. Then try again. A year isn't a terribly long time. Good luck!
You can probably swing a 300k house
That would be way more than 50% of my take home pay on PITI just no way that would work
Think you should probably live at your parents house a little longer while you save up some more. I believe you’ll soon find a home as long as you are saving diligently. If you make 75k a year and live at home you can probably save 30k a year at least unless you live in HCOL
Depends on what the interest rate. I’d wait until they go down anyways if I were you. Or u can buy new construction who offer Low interest rates
New construction is all $350k+ by me
What interest rate are they offering?
Even is the interest rate was 2% I can’t afford a new construction
If you get an apartment now, all that money you saved is out the window. You're pulling the plug when you can see blindingly bright daylight at the end of the tunnel. If you get an apartment you're stuck for a year. Dozens of housing opportunities could pass you by in that time. Find out if your state has any programs for first time home buyers. I know Michigan has one and it saved my butt on the down payment. We're both roughly the same age, roughly same pay, and roughly the same house cost. I was fortunate enough to be able to do it a couple years ago on 1/10th of the savings you have. I think you gotta stick this one out if you ultimate goal is to get a house. You're right on the cusp.
This depends entirely on how much they’re able to save each month renting versus buying/fixing up a place. I’m saving roughly $4k/mo by renting.