NWI INGO General Post - Part 4

[dansgotguns]

what is best option?

23 years old
roughly $50k/year


buy house, rent, town home, buy land and install pre-fab?

Renting is never the answer if you can do something better.

 

[jedi]

I'd pay $999 for this lower!

Is this a real lower?
Ie. can you really buy this or is it a photoshop

 

[ROLEXrifleman]

what is best option?

23 years old
roughly $50k/year


buy house, rent, town home, buy land and install pre-fab?

If you have an excellent credit score and you haven't bought yet your wasting money. What type is based on your needs. As long as you buy in an area that isn't going down your going to see a return over time. Also, you must stay in the property long enough to see that return. If you want to bounce around and are unsure what your direction in life us stay at home with mom and dad. Dont even rent. Hotels for nights out with the GF are still cheaper than rent, always respect your parents house.

I bought my 1st house at 21, I'll never pay rent again.

 

[Bill B]

what is best option?

23 years old
roughly $50k/year


buy house, rent, town home, buy land and install pre-fab?

Debt? Savings? Time on job? Profession?

 

[CTC B4Z]

current debt is lower than $5G's... savings is building and will be doubling by time car is paid off, which is in the next 2 months.. 4 years at current job.... diesel industry

 

[CTC B4Z]

it seems like everybody older, 35-50 all bought their house at the age of 18-21... WTF gives?

 

[aclark]

I just bought my first house at 27. For me it was longer because I was moving around and living life. Built up savings and was able to put down more than enough. I wasn't at 20% so I'm paying mortgage insurance, but its really not a big deal. I'd say if you sure about your job, and sure of where you want to live, no reason not to buy. Just don't get stuck in an area that you might think is nice, but is starting to decline. Interest rates are incredibly low so if you're really going to do it take advantage of the times. Just don't get in over your head.

 

[KLB]

Not me. I was 30 when I bought my first house

 

[actaeon277]

https://www.indianagunowners.com/fo...0015-hello_everyone_from_north_judson_in.html

 

[jedi]

it seems like everybody older, 35-50 all bought their house at the age of 18-21... WTF gives?

Not me. I was 30 when I bought my first house

Same here.
Also don't think of a house as an investment. The days of that are long gone with our parent's generation. That type of investment won't be back for at least 2 generations. A house is nothing more than a structure you pay for to have shelther. You are gonna get taxed, have to maintain it, deal with a*** h*** neighboors, town/city ordinance, etc.

Follow dave ramsey's baby steps get your debt out the way, have an emo fund, then save for a down payment, then pay off your home quicker if possible.

 

[CTC B4Z]

yea, I have never bought anything with the intention of making money off of it so Im damn sure not expecting that with a house

 

[Ericpwp]

Live with mom and dad until you have no debt, and money in the bank (down payment X2). You will pay PMI if your down payment is under 20% LTV. You should get out of PMI ASAP. I had a friend and his brother move in and they paid rent. Look at 15 year loans. Use a mortgage calculator with the full amortization table to see how mortgages work. You also have to account for taxes,insurance, and anything else they add to your monthly payment. It could be as much as 50% of the amount going to the bank monthly. Best thing I ever did.

 

[ROLEXrifleman]

Im gonna disagree on houses not as investments. Houses are like guns, if you have $ in hand and a good reserve you can get real-estate low enough to turn a profit if you choose. I also agree though that shouldn't be your primary motive for buying real-estate.
I'm up $20k on the house I'm in now and have only been in it 3 years but I'm in it for the long haul.

There's no magic formula to buying between the ages of 18-21.
Have a credit score above 750
Have a good paying steady job
Low debt to income ratio
Be smart with your money

My nephew is 20 and has a nice $140k condo. He works hard and is smart with his money.

 

[CTC B4Z]

im going to wait til car is paid off, than get pre-approved... I have no idea how any of this works... they tell me i can spend $200k, so anything under that is buyable without question?

 

[ROLEXrifleman]

Pre approvals are only one part of the equation. The property has to appraise, tax estimates have to be made, utilities factored in, property insurance, etc...

So it's not that cut and dry. Odds are you will end up with an escrow account since no one is loaning without one lately.

Who is they? Unless they is an actual bank that is granting the loan against the property, they should not be telling you anything.

 

[CTC B4Z]

im just saying, if i get pre approved for $200k.....

 

[Ericpwp]

im going to wait til car is paid off, than get pre-approved... I have no idea how any of this works... they tell me i can spend $200k, so anything under that is buyable without question?

Yes pay the car off first. When I was preapproved it was for much more then I wanted to spend. Most people start with an escrow account. That is all your taxes and insurances for the year split between the 12 payments. This amount goes up and down with your tax and insurance bill. So if your mortgage payment is $500 your payment to your escrow account can be $200 that's $700 a month, tack on PMI it's $750. They there's Nipsco, cable, internet, cell phone. Make sure you know what you will be paying a month before you say I can afford a $200,000 house. You want to be comfortable, not struggling to make payments.

Lock in a Fixed rate mortgage (15 year is the best), don't let them talk you out of the fixed. These rate are free money compared to what people paid in the 70's. Lock in the low rate for the life of the lone.

 

[Ericpwp]

Hawks are winning, but it's going to be close. Sharks are good.

Buy a fixer upper for $100,000. You want to build equity fast.

Until you have 20,000 into it, you will pay PMI. "They" want to make money, your money.

 

[magic man]

I'm looking to buy a 10/22. If anyone has one they want to part with let me know.

 

[Ericpwp]

Here's the calc for a 30 year at 3% for a $200,000 home, no money down.

$1,051.54
Monthly Payment

$378,554.90
Total of 360 Payments

$95,054.90
Total Interest Paid

Jan, 2043
Pay-off Date

$60,000.00
Total Tax Paid

$8,500.00
Total PMI Paid

Monthly PMI
102 Monthly PMI Payments
of $83.33 Each

Aug, 2021
PMI Pay-off Date