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Seriously how do people afford buying a house?
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amother




Mauve


Post  Fri, Sep 27 2019, 9:26 am
I live in Lakewood and at the time I got married, the turnover in our apartment building was almost constant! People would move in and a year and a half to 2 years later be out because they HAD to buy a house because they had more than 1 kid.

We stayed and stayed and stayed. Saw the world of finance change as neighbors began waiting and living there longer because of how the lending markets had changed. But after 7 years of living with 4 kids in a small aptmnt, we bought a large new airy home.

We invested $5000 of our wedding money in a stock that more than doubled. I saved most of the $ I earned while single, I was working the entire time and my DH had a tutoring job and a summer job and we lived very frugally on that, so any $ my parents gave to us for support was put away for savings. When it came time to buy, both sets of parents gave us monetary gifts which was a bonus that allowed us to buy something nicer than we could have on our own. But even without their help, we would have been able to buy something.

While its true that some may have more opportunities if they get $ from family members or whatever, at a certain point, a lot of the time, its something to work toward. I say a lot of the time, because it is true that for some people home ownership just remains out of reach because of their circumstances.

We continue to live very frugally and I don't currently work. After taking a break, I do need to go back to work because my children are getting older and tuition costs are increasing and the Israel/wedding stuff is on the horizon and freaking me out... I'm glad our children see us living simply, and I hope it will help them emulate this life and take a lot of pressure off of them and they face the sometimes more extravagant lifestyles of others.
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amother




Wheat


Post  Fri, Sep 27 2019, 10:24 am
This one man at my firm is 26 and he and his wife just bought a house. He started working full time at age 22 , his wife at 21 and they saved most of their money. They don't have kids yet.so they had enough for a down payment and the rest is a loan
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amother




Mistyrose


Post  Fri, Sep 27 2019, 10:39 am
We received $$ saved up from grandparents and parents which helped with the down payment. I just hope IYH we are able to help out our kids when the time comes...
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amother




Bisque


Post  Fri, Sep 27 2019, 10:53 am
Goldenrod, beautiful post! Can I ask what profession you are in? Ty
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amother




Wine


Post  Fri, Sep 27 2019, 11:44 am
amother [ Goldenrod ] wrote:
Going anonymous so I can give some actual numbers.

People talk about buying a house like it's a decision that exists in a vacuum. I think some people think that way because they see other people basically getting gifted houses, or a least down payments. But for most of us buying a house is part of the finantial narrative of a family. It's one decision in a long line of decisions. You don't wake up one day and decide to buy a house. You make lots and lots of little choices and some big ones and eventually your able to manage it.

Here's what we did:

Never used the money we received as wedding gifts, invested it the week after we got married and earmarked it for a house. That started out at around 8k, grew a little over the years.

Lived in a tiny two-bedroom apartment with lotsa kids and saved every penny we could. We budgeted militantly. Hubby when back to school, I worked full time, the aim being that we'd eventually both be able to pull a solid income. 6 years later we are very close to achieving that goal. I make about 120k a year. My dh should pull a starting salary of 90k based on job offers he's already recived. It's not rich, but its a solid, livable income that can afford a mortgage and we're hopeful that our income with increase with time and experience.

Recieved a 20k inheritance from a grandparent, and 5k from another grandparent.

Brought an old, oddly laid out, small (1,800 square feel. Small for Lakewood, but feels huge for us and has a basement and attached garage we hope to finish one day) house that needs a lot of work for 300k. We fell in love with the bones of the house and the price tag. When we bought the house the roof leaked, many of the rooms had no electricity and the 100 year old windows made it impossible to heat in the winter, not to mention the squirrels, mice, crickets and chipmunks who were constantly attempting to make our home their home. The kitchen has one sink, one stove and an old limping fridge we adopted from our neighbor. 3 of the 5 bedrooms are tiny; they can each fit one-two beds, but that is it. For reference, 1 of the bedrooms was not even listed as such when we brought the house, it was advertised as a closet. And that's just the structural stuff. The aesthetics of the house are a whole nother story. The paint is peeling in every room. When I sweep, the dust and dirt is speckled with paint chips that are constatly drifting down to the floor. The living room has a large hole in the ceiling. We are constantly re-gluing down the tiles in the kitchen and sweeping away the ever-crumbling ancient grout. 3 of the bedrooms are not sheetrocked; the walls and ceilings are made of plain whitewashed plywood.

We've owned the house now for about 2 years and have patched the roof, wired most rooms, replaced the worst of the windows. It still needs a ton of work, but this house is going to be beautiful one day. In the meantime, we are loving the space and the quirky, haunted-house vide.

I liked what someone said on the other 'how to afford a house' thread in which the OP wanted new construction in a specific location for cheap: you can't have everything. Pick your top two priorities (price? location? whatever). Be honest with yourself about what you can afford and what it's going to take to get there and start walking down that path. From what I read here on Ima it seems that people want a 'perfect' house right NOW. Most big goals in life take a lot of time and effort to achieve. A house is no different.


Sounds like you will end up paying more towards construction and repair, than if you would've bought a move in condition home. Plus the aggravation and headaches of all these unexpected problems is extremely stressful...
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Amarante




 
 
 


Post  Fri, Sep 27 2019, 12:36 pm
amother [ Wine ] wrote:
Sounds like you will end up paying more towards construction and repair, than if you would've bought a move in condition home. Plus the aggravation and headaches of all these unexpected problems is extremely stressful...


You are missing the point - Goldenrod was able to buy a house that she could afford. If she had waited for a move in renovated house, she would still be renting. It appears that she is willing to live in a less than perfect house and renovate as time goes on.

It appears that she and her husband have a handle on home repairs - if one is willing, one can learn to DIY for lots of stuff except possibly electricity.
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amother




Goldenrod


Post  Fri, Sep 27 2019, 2:30 pm
Amarante wrote:
You are missing the point - Goldenrod was able to buy a house that she could afford. If she had waited for a move in renovated house, she would still be renting. It appears that she is willing to live in a less than perfect house and renovate as time goes on.

It appears that she and her husband have a handle on home repairs - if one is willing, one can learn to DIY for lots of stuff except possibly electricity.


My husband is very handy and has many friends in construction type fields. An electritian relative came over to give him a crash course, and he did the rest of the wiring himself.

The only thing he wont touch is plumbing. Thankfully, the plumbing was replaced before we bought the house.
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amother




Goldenrod


Post  Fri, Sep 27 2019, 2:35 pm
amother [ Wine ] wrote:
Sounds like you will end up paying more towards construction and repair, than if you would've bought a move in condition home. Plus the aggravation and headaches of all these unexpected problems is extremely stressful...


We could have bought a move-in condition home, wine. Within our budget, move-in houses were half the size, were on tiny plots, or were fixer-uppers. Which brings us back to my point. If you want to work within your limitations you are going to have to compromise somewhere. As it stands, our construction costs have been close to nill above the cost of materials because we've been doing most of it ourselves.
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newmommy22




 
 
 


Post  Fri, Sep 27 2019, 3:30 pm
amother [ Goldenrod ] wrote:
. The aesthetics of the house are a whole nother story. The paint is peeling in every room. When I sweep, the dust and dirt is speckled with paint chips that are constatly drifting down to the floor. The living room has a large hole in the ceiling. We are constantly re-gluing down the tiles in the kitchen and sweeping away the ever-crumbling ancient grout


I hate to go totally off topic but please check for lead paint and asbestos.
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professor




 
 
 


Post  Fri, Sep 27 2019, 3:43 pm
A thread about house buying? *Clapping hands excitedly* so much I need to learn! Reading this thread, though, I read goldenrod's discription and was like ?????? 90k and 120k is a LOT! it's within your means to buy at least 500k house no? Or maybe not if your daily expenses are very very high... IDK
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meme6




 
 
 


Post  Fri, Sep 27 2019, 3:54 pm
professor wrote:
A thread about house buying? *Clapping hands excitedly* so much I need to learn! Reading this thread, though, I read goldenrod's discription and was like ?????? 90k and 120k is a LOT! it's within your means to buy at least 500k house no? Or maybe not if your daily expenses are very very high... IDK


Getting the down payment is the hardest and with a family I barely have savings always something came up. I always need extra money by Yom Tov sending kids to camp costs a lot. And where I live nothing available under 600k. At this point I would need bigger cause I have a full family. I feel that those saying they saved didn’t need a down payment of 150,000 . I would put out numbers and then suddenly people will realize it’s not always so easy to buy.
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