Can I start a poll with the question whether you get a house or not?Tsar wrote:I know the risks but I'll be less in a position to buy a home if I were paying rent+storage. Some of the things I own are things I will own for almost my entire lifetime so I'd want my own place. They are things that could be stolen if I were renting a basement. Now is the time to act (it will give me roughly a 10-11 week ability to save more money for a down-payment and maybe take out a small Upstart loan to cover a little more down-payment). I could make it work. Plus, if I already know I will have a home lined up, then I will try to get the roommate (of my choosing who I feel is trustworthy and has a good credit score too, and acceptable lifestyle choices like not smoking, not partying, etc). Or if I go with the multi-family, rental income means I would have much more ability to save more money each month compared with the single family. The rental home does have a listing price a little more than $10,000 below the single family. So the lower loan plus the rental income of a little more than $1,500-$1,700 total per month would really help to off-set a lot of the costs. I'd basically be living mortgage+rent free with the rental income. I think one of the tenants is also responsible for one of the utilities in the multi-family. I could give up having internet on my computers and just stick with a smart-phone with a mobile internet. I wouldn't do much online anymore for awhile after that. I know I can make it work.gnosis wrote:Tsar,
Your Dad sounds like he is completely out of touch and an a**. You shouldn't take what he says to you to heart.
Why not try to rent a cheap place for a while? Once you get out of your parents' house, you will probably start feeling better and be able to think more clearly. It's not necessary to equate moving out of your parents' house with buying your own house. Don't worry about "proving" yourself to your parents.
Besides, you've never lived independently before, correct? It would be much less stress if you rented something first and took the time to explore living on your own.
Look at the cost of failure:
1) If you purchase a home and your contract ends without an offer, you will still have to deal with the mortgage. What's going to happen to your sterling credit rating? If you can't find a job locally, you may well end up having to move to find work.
2) If you rent for six months or something, then if anything untoward happens at work, you will be in a much better position to deal with it. Plus, if they do offer you a position, you can buy a home in the near future.
My backup plan would be the National Guard but I'm basically guaranteed a job until my contract expires. I probably have a good chance of being hired either as a contract renewal or am employee. In a few months I'll begin applying at permanent jobs if they haven't hired me. I will also meet with a National Guard recruiter if I don't have a permanent job. There are always many jobs that the National Guard is wanting to hire people to fill in my state. I am very confident I could pass the physical tests.
I technically there was a time I lived on my own in a dorm at the college I ended up dropping out of because I hated it for many reasons. I became a commuter at another college which I posted about in an old thread or two.
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I don't think I'll be getting a home anytime soon because all the good properties in my price range are already pending contract (even though they weren't even listed for more than a week and are still showing as active and *not pending*).
Some of your advice was worthwhile and I decided to rent the storage unit and most likely keep living with my parents to save some money, but still get a realtor to keep the possibility open and to look for good deals on apartments.
I think I will just rent out the storage unit and stay with my parents for now, unless I get a very very good deal on an apartment or a realtor is able to help me find a home in my price range that is move-in ready. They mainly want me to move 99% of my things out of the home into a storage unit. So I'll probably do that and save more cash while living with my parents and renting a good storage unit.
Here's the breakdown of how much of a percentage of income each choice would consume for the cost of shelter:
Storage Unit: About 10%-11% of my monthly net income. (I am already doing this, and reversed the unit). (*sheltering my possessions, while I would still live with my parents. Something I hate and since they're basically throwing me out but took a small step back for now since I'm putting everything I own into storage).
A home near the bottom of my price range: About 25% of my monthly net income (this 25% is the monthly mortgage payment, taxes, and insurance).
An apartment with most utilities included would likely be 30% of my net monthly income. There's a small probability it could be as high as 40%
I figure the odds of each possibility occurring are:
72.5% chance I remain at my parents place while paying to keep my possessions in a good storage unit.
19.5% chance I move to an apartment with utilities included
0.5% chance I move to an apartment without utilities included
7.5% chance I am able to get the home I want
NOTE: These odds are only valid from now through June 1, 2016 at 12:00:00 am Eastern Standard Time.
That's...very specific. I picture you standing next to your computer, inputting numbers and coming up with calculations for everything.
"Chance I will eat cereal for breakfast tomorrow...37.5%!"
Last edited by Ghost on January 14th, 2016, 2:32 am, edited 1 time in total.
I'm excellent with numbers, estimating odds, and my personality type is INTJ, so that's what a lot of INTJs do. They (including me) are the best strategists, best at developing plans and contingency plans, and are one of the greatest personality types to be leaders (and some desire it).
You went from poor, broke and a virgin at 25 to financially independent with a house of your own, in the time span of less then half a year. I think that's pretty impressive progress, Tsar. All your dreams of going abroad will be far more likely to succeed now that you have a base to fall back on, a job, an income and a growing network of friends and associates. Not constantly being around a toxic and negative family environment sure helps, too!
I think 2016 might be the year that Tsar, against all odds and against all our predictions to the contrary, will prove the naysayers wrong and land himself a jailbait cutie from a faraway land! Go get it, brother! I am proud of you and genuinely happy for your success.
You do not want to be in debt now, we will more than likely be going into a deflationary spiral right around the corner just like the real markets are around the world.
We are all losing our property rights more so everyday here in the USA, putting down a anchor as in a house is not wise now. You own nothing and are a tenant renter class here as of the 9/11 coup... This is what they are striving for world wide, just reads the 10 planks of the communal dictatorship..
Time to Hide!
I don't have own home yet but I am looking at ones that are in my budget. There aren't too many in RI. But if I got hired permanently by the company I'm with, I could potentially request to transfer to another state with a major operations center and much cheaper homes.
Everyone home in RI that's in decent or even average condition and within a low price gets taken off the market immediately. Maybe some realtors reserve it for a special client. Most of the ones that are in decent condition but don't get bought up are probably in flood zones. I'm still going to look here in RI but I doubt I'll be able to get anything here, which although I would like to be on my own it would be much easier in one of the other states with lower home prices and lower taxes.
I think there's 30% odds I will have my own home in November 2016 and 75% odds I have my own home by April 1, 2017. If I were able to transfer to one of the other places by next year or very late this year, the odds I get my own home likely goes up to 90%. Some decent homes go for $40,000 in those places with no more than $1,000 annual property tax. Really good for the budget.
What I am doing this year is:
1. Make some investments into real assets (AU and AG) (This will be one of the last years to get them. Once the 2016 Financial Crisis begins and/or the Federal Reserve engages in an even greater massive QE program and negative interest rates, the dollar lose a lot of purchasing power. It looks a lot more likely this is going to be how it plays out. Repeat of 2007/2008 if not worse, then even worse (hyper-)inflationary effects from the QE+negative interest rates). This increases my real net worth.
2. Renew my passport. (Set to expire later this year)
3. Get a new car because I need it for traveling around (and especially if I move out of state in the next year).
4. Begin the process to get Italian Citizenship (Better that I begin this by April 30. The dollar's at it's highest purchasing power to relative to the Euro in at least 10 years. It probably won't last very long. It's at least 30%, if not 40% more affordable for me now than it was in 2013 and even 2014).
5. Travel abroad for 2 weeks. I was leaning towards Eastern Europe because that's where I want to find a girl so I could probably scout good locations and see how nice it would be to live there in the future. But maybe a Caribbean Island or someplace in South America might be better as more of a purely fun and see the world trip. Trinidad would probably be a one week trip. I haven't decided where I really want to go yet.
6. Save a lot of cash (after I have bought enough real assets on my list and have done the other items on my list) so I can make a larger down-payment on a house later this year or next year.
By September 1, I will have accomplished 1, 2, 3, 4, and 5. 6 will take somewhat longer because of 1, 2, 3, 4, and 5 but I will still have about 10% of a down-payment for a state like RI or 20%-25% for one of the other states.
I decided to take some advice and not rush into getting a house until I'm more stable but this year I will meet a lot of my goals and have a very solid foundation. I will still be looking with realtors to see if there's anything in RI.
It seems to me you are running the risk of being penny-wise but dollar-foolish. You've got the numbers, but in six months time they may not hold. But then real life means working with incomplete and ever-changing information. Here's another thing to consider: although a house could be good, it might not be. You're still getting established and you're vulnerable. Most people think that houses are assets, but the opposite is true: houses are liabilities. (Asset = something that puts money in your pocket. Liability = something that takes money out of your pocket.) This will definitely take a lot of money out of your pocket. At one time it may have made sense to consider houses to be assets, but now we know this is not really the case. Otherwise, no one would have ever gotten underwater on their "assets." Renting may seem counter-intuitive, but if you can get a relatively low rent place, all you have to worry about is paying the rent. As a homeowner you'll be responsible for everything. As a renter, that's all your landlord's responsibility. And trust me, things will go wrong for a house. Not saying this can't be a good plan...eventually, but it really seems too risky at this point. You don't want to get wiped out financially before you even get a chance to start.
You're probably right. I should wait until I am less financially vulnerable to get a house. I know that a house is not an asset but it's a liability because it will always have property tax, insurance costs, and occasionally things will go wrong. But if the home is small and in good condition, it will be much cheaper than rent.
yOU SHOULD ALREADY HAVE A ARSENAL.
Time to Hide!
If I had my own house I would buy a gun but my family is anti-guns and won't allow guns. I don't believe that any of my relatives own a firearm either. So when I'm on my own and I buy a gun, I would probably be the first person out of all my family to own an actual gun. (Some own pellet guns, BB guns, and one relative that hunts uses a bow and arrow)
I won't be getting my own place this year since I just got an auto loan and a new car. So 2017 will likely be the year I will be able to get my own home. Unless I am able to get a good price ($20,000 for a move-in ready home) and be able to transfer to that state, the home will need to wait.
Besides, if the economy does indeed crash again and go into a recession, home prices should collapse again.
I have been hearing reports on the news that we maybe going into another recession in 2016. The funny thing is, we never fully recovered from the last recession!
"When I think about the idea of getting involved with an American woman, I don't know if I should laugh .............. or vomit!"
"Trying to meet women in America is like trying to decipher Egyptian hieroglyphics."
Quantitative Easing re-inflated the stock market. Corporations cutting cuts, lack of wage growth, and share-buybacks also helped their investors and balance sheets. Some of my corporations has record profits was because they shrunk the size and reduced the quantity of their food products. Healthcare costs increased a lot during the same time. The false economic recovery was unsustainable. Now that there is no more QE and the Federal Reserve raised interested rates an relatively insignificant 0.25% the house of cards built by QE and a false sense of prosperity will likely come crashing down.
That's when the Federal Reserve comes out with an even larger bond buying program under an even greater QE umbrella. Interest rates will go into the negatives. The dollar will reach new lows in purchasing power when that happens.
So right now is the time to buy AU and AG, and do things that are denominated in foreign currencies (since the dollar has it's greatest purchasing power in more than a decade relative to many other currencies including the Euro, Canadian Dollar, Australian Dollar, etc). When the new QE begins, gold will surge past $2,000 and Silver past $55. Oil should then go back to $100 per barrel.
Therefore it makes logical sense to accomplish my goals that involve spending dollars and once the dollar loses purchasing power it makes more sense to put dollars earned towards any outstanding debt.