a place to call home

  • Posted by a hidden member.
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    Jan 04, 2012 11:10 PM GMT
    I am looking to start saving $ to buy a place of my own- probably a condo as I live in a big city. Any one have tips, advice, or experiences to share? thx
  • barriehomeboy

    Posts: 2475

    Jan 05, 2012 1:56 AM GMT
    You're young. Save 10% of every after-tax paycheck in a savings account. After you buy the condo, keep doing that. Invest it well and you'll be a millionaire when you retire. The magic of compound interst. It's that easy, but young guys blow it on Camaro's or Coccaine, and end up poor like all of the old guys on here!
  • Import

    Posts: 7166

    Jan 05, 2012 1:57 AM GMT
    yeah dude, get a job that pays 6 figures. easssssy
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    Jan 05, 2012 3:25 AM GMT
    Do your research before you buy. Look at comparables and don't go over your budget. Find out about foreclosure properties and short-sales (they maybe great deals).
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    Jan 05, 2012 4:30 AM GMT
    I know a condo is the most common way to get your foot into home ownership. But I personally would avoid it. The Home Owners Association would be the number one reason. The HOA rules and fees, for another. And the resale value isn't as good. But that kinda depends on the area you're in as well.

    Condos are great for people that want don't want to maintain a house, and don't mind dealing with a HOA. But if you want something long term, then save up some more and buy yourself a small house.
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    Jan 05, 2012 4:33 AM GMT
    Make sure you check out monthly HOA condo fees if you plan to purchase a condo. They can get expensive.
  • Webster666

    Posts: 9217

    Jan 05, 2012 4:37 AM GMT
    Trying to save enough money to buy a place would take forever.
    To make the down payment on my home, I borrowed my own money from my retirement fund, then paid myself back, with interest. Sweet.
  • trevchaser

    Posts: 237

    Jan 05, 2012 8:49 AM GMT
    Live below your means. This is one thing most people in debt still don't understand. If you don't have cash for it, then don't buy it on credit that is so easy to get. If you do that you don't have to worry about the saving part. If you still haven't saved enough after a certain period doing that, then your job is probably paying you enough just to 'exist' and that should make you feel under valued enough to make a change. To make the maximum amount of stable income, find something where YOU can affect the masses in a positive way outside of a job. Be creative with it and enjoy the journey!

    Save enough for a downpayment. Once you have that, then find something that will be able to pay off the mortgage monthly/property taxes/insurances/utilities/rainy day funds. It's optimal if you can find something that allows you to pay 2x your monthly mortgage for a safety cusion. Once you have the means to do that and you feel that you are stable then go ahead and make a purchase. When you have enough principle put down to borrow as a secure home credit line, use that the maximize your payments monthly so reduce the principle which you are probably paying higher interest to but talk with your bank representative on that one as times are a changing. As you pay your mortgage if your home credit line has lower interest, you will slowly transfer your debt to the lower interest credit line which should remain open to pay off in a hurry without penalty and save you at least 5 figures, if not 6 figures of interest in the long run as it's doing with me. I am in no way a financial advisor so take all this as a a grain of salt as I'm only speaking from my experience. icon_biggrin.gif Have fun!
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    Jan 05, 2012 12:48 PM GMT
    Thanks everyone- real helpful. Just in the beginning stages now so I appreciate the help in getting a head start.