Should I buy an apartment/condo?

[runningfishy]

I'm giving up because OP and many do not see the TRUE FIGURES. They don't understand cash flow.

OP is structurally dependent and contingent on TOO MANY FACTORS. Granted, he has the resources. It's not what you have in your account, it's HOW you got that money.

$25K @ age 20? Yes, it's nice, but it's not something you've accomplished. There is no way in hell you are able to save up $25K at age 20 at minimum wage. You're either delirious or aritificially avoiding reality.

- - - -

If you said you already have a full ride tuition, you can simply adjust your cost of living. Find a smaller unit. Why pro-rata w/ room-mates? I also find it distasteful in your approach of making money off of your parents. SMH

 

[heliumclinton]

Makes sense to me, why waste $800 to rent a place. You're basically throwing it out.

Putting $800 towards a mortgage is way more beneficial.

 

[2lipslegit]

Originally Posted by RunningFishy

I'm giving up because OP and many do not see the TRUE FIGURES. They don't understand cash flow.

OP is structurally dependent and contingent on TOO MANY FACTORS. Granted, he has the resources. It's not what you have in your account, it's HOW you got that money.

$25K @ age 20? Yes, it's nice, but it's not something you've accomplished. There is no way in hell you are able to save up $25K at age 20 at minimum wage. You're either delirious or aritificially avoiding reality.

- - - -

If you said you already have a full ride tuition, you can simply adjust your cost of living. Find a smaller unit. Why pro-rata w/ room-mates? I also find it distasteful in your approach of making money off of your parents. SMH

I do understand cash flow, I think. I realize Im going to have to pay costs in the future, I realize Ill be much less liquid with most of my money in a property. I do not know how much those costs are going to be, hence me starting this thread.

I do have 25k saved up, just because most people don't pull it off does not mean its impossible. 14k and change is in a CD that expires late this spring, which is pretty damb convenient as far as going ahead with this plan. I appreciate all the props I got, but its not like Im making this thread to get a rise out of people about it.

Dont really get your last paragraph to be honest. Finding a cheaper house than the one we're in really isn't that easy in this area. Everyone is aware that the only people starting leases in august are students, and they price accordingly. Regardless, renting something cheaper wouldnt accomplis much in my situation. Im not exactly preying on my parents, when they offered to put the money towards a mortgage rather than rent. I never asked them to pay rent either, they've done it of their own accord.

 

[runningfishy]

Originally Posted by 2LipsLegit

Originally Posted by RunningFishy

I'm giving up because OP and many do not see the TRUE FIGURES. They don't understand cash flow.

OP is structurally dependent and contingent on TOO MANY FACTORS. Granted, he has the resources. It's not what you have in your account, it's HOW you got that money.

$25K @ age 20? Yes, it's nice, but it's not something you've accomplished. There is no way in hell you are able to save up $25K at age 20 at minimum wage. You're either delirious or aritificially avoiding reality.

- - - -

If you said you already have a full ride tuition, you can simply adjust your cost of living. Find a smaller unit. Why pro-rata w/ room-mates? I also find it distasteful in your approach of making money off of your parents. SMH

I do understand cash flow, I think. I realize Im going to have to pay costs in the future, I realize Ill be much less liquid with most of my money in a property. I do not know how much those costs are going to be, hence me starting this thread.

I do have 25k saved up, just because most people don't pull it off does not mean its impossible. 14k and change is in a CD that expires late this spring, which is pretty damb convenient as far as going ahead with this plan. I appreciate all the props I got, but its not like Im making this thread to get a rise out of people about it.

Dont really get your last paragraph to be honest. Finding a cheaper house than the one we're in really isn't that easy in this area. Everyone is aware that the only people starting leases in august are students, and they price accordingly. Regardless, renting something cheaper wouldnt accomplis much in my situation. Im not exactly preying on my parents, when they offered to put the money towards a mortgage rather than rent. I never asked them to pay rent either, they've done it of their own accord.

Just talk to your parents.  Be grateful your parents are in a position to help you.  It's too bad you do not see the true intentions of your parents.  What I've said still stands, and it's not something you want to hear.  You'll have to crunch numbers. 
What I'm getting at is, you're believing everything will be merry and glee.  You're not accounting for emergencies, and many other expenses.  Get over it, and change your mindset.  Paying for room and board in the context of renting is not bad at all.  It gives you flexibility, something you need.

No one looks out for you more than your own family.  Get that point into your brain.  You still sound spoiled. lolz

 

[2lipslegit]

Originally Posted by RunningFishy


Just talk to your parents.  Be grateful your parents are in a position to help you.  It's too bad you do not see the true intentions of your parents.  What I've said still stands, and it's not something you want to hear.  You'll have to crunch numbers. 
What I'm getting at is, you're believing everything will be merry and glee.  You're not accounting for emergencies, and many other expenses.  Get over it, and change your mindset.  Paying for room and board in the context of renting is not bad at all.  It gives you flexibility, something you need.

No one looks out for you more than your own family.  Get that point into your brain.  You still sound spoiled. lolz

Talk to them about what? They suggested I buy my own place. I don't know what you want me to talk to them about, if anything they'll support the idea.

What do you think my parents true intentions are? It seems pretty simple, they want to help me build a payment history and get some assets to my name.

I'm not sure what you've said that I dont want to hear... I've asked you to explain things but you haven't. If anything, I need someone to convince me of why its not a good idea to go ahead with this, and if buying my own place is a bad decision, I'd hope that someone would talk me out of it. I know I'll have to do some numbers, and its not like I dont plan on it.

I'm not assuming everything will be merry and glee, I mentioned this is my very first post. I know that there will be extra costs that come with owning, but I dont know how great they'll be, which is why I came here to ask for guidance. There are plenty of people that are a few years older than me, have been through this, and can contribute with their experiences.

I know my family looks out for me, and if thats your argument, then you're saying that I should just go ahead and buy it then I guess, because that's what they're suggesting.

I sound spoiled, still? Ok.

 

[arstyle27]

Short sale on a condo is the way to go.

 

[freelythinkingmind]

buy buy buy

 

[leothegod]

idk how you dudes are saying not to buy it they are throwing away 800 a month... if my parents would throw me that type of money every month i wouldnt even think twice about buying an apartment/condo 44k and you could buy something around 100-150k with a 30 year mortgage pay it off way earlier and your credit would be 

and also repairs will not come directly out of your pocket... condo's usually have a maintenance crew that you pay every month along with your rent/mortgage some are even included depends on the place

edit:
reading some of the replies dudes are broke and dumb

think about this say you pay 1500 in rent a month utilities included, not including cable/internet and other stuff
thats 18,000 a year
18,000 a year x 10 years is what.... 180k so basically you renting is throwing away 180k every ten years
think about this if you buy a apartment you pay it off in 10 years... YOU NEVER HAVE TO PAY RENT AGAIN!

 

[crcballer55]

Originally Posted by leothegod

idk how you dudes are saying not to buy it they are throwing away 800 a month... if my parents would throw me that type of money every month i wouldnt even think twice about buying an apartment/condo 44k and you could buy something around 100-150k with a 30 year mortgage pay it off way earlier and your credit would be 

and also repairs will not come directly out of your pocket... condo's usually have a maintenance crew that you pay every month along with your rent/mortgage some are even included depends on the place

edit:
reading some of the replies dudes are broke and dumb

think about this say you pay 1500 in rent a month utilities included, not including cable/internet and other stuff
thats 18,000 a year
18,000 a year x 10 years is what.... 180k so basically you renting is throwing away 180k every ten years
think about this if you buy a apartment you pay it off in 10 years... YOU NEVER HAVE TO PAY RENT AGAIN!

You're failing to factor in the cost of maintenance, taxes, property insurance and HOA's into your figures as well.  At a 1.5% property tax rate in Florida (from my research) he would be paying about $2000/yr. on a $130K property.

 

[liljrdn]

I'm actually looking into buying an apt/condo as well but I think I'm going to save up for two more years - SF is WAY TOO EXPENSIVE

OP be grateful your parents are helping you out bro 

 

[kickstart]

If you were sure it was a place you'd be for a while (3+ years after graduation) I'd say buy. But seeing as you think you might leave, imo, it's not worth it. Just find a cheaper apartment to rent with your friends and continue to save up.

Win-win for you and your parents.

 

[HEATHEN]

Originally Posted by odog24

My neighbor is a real estate agent and when his daughter went off to college they did the same thing.

her parents bought it under their name and their daughter would live in it plus a couple roomates

by the time your done with school you will have a nice ivestment property and since its near a school you rarely have to worry about finding tenants.
it sounds like your parents are well off so they can probably afford to take the slim risk that exists.

 did you smash? 

 

[waitwut]

i dont think you should buy one keep stacking and help your parents a little
buy one when you're really ready or have a better job

 

[dtothed]

maintenance fees can deplete your funds very quickly
some condo units have upwards to 1000/month, this is not including your mortgage
my parents have 3 high rise condo units, and they just jacked up the maintenance fees up by 200/month
non sense

 

[dajoka004]

I'm not trying to be a jerk here, but if you have to come on here to ask if you should buy real estate, you should not be doing it. It honestly sounds like you don't have a clue about the process. I don't even think a mortgage lender will let you take out a loan to cover the remainder of the deposit if you can't afford it.
What's that 25k doing right now? That's the best way to invest your money.

 

[buggz05]

Profit ??
Buy apartment with multiple rooms
Rent out other rooms
Profit ??

Flip it ??

Profit ??

 

[dunks r nice]

Originally Posted by reener

props to OP for saving 25k at 20

 

[runningfishy]

OP,

You're making minimum wage part time, you didn't even finish school yet. To say you'll qualify for a loan, let alone own a home is funny!!!!!!!!

You won't even qualify for a loan!! Maybe if your folks co-sign but even then, you will probably not get one. You might as well FINANCE through your PARENTS, as it seems so already.

Yes, OP, you are still spoiled. 

 

[imvictor]

Originally Posted by Joe Billionaire

Originally Posted by reener

props to OP for saving 25k at 20

this...

x2.

 

[eaalto]

Before you even continue to play with the idea, go to a bank, sit down with a loan agent, and see what your price range is. If you are going to be using your parents money, you may want to think about co-signing with them. If you are going alone, you need to be careful about how much money comes from other sources, as certain loans have requirements about what % of money is from the person responsible for the loan. The bank can't guarantee that your parents will give you $800 a month, but they can guarantee that so long as you stay employed, you will bring home a certain amount of money.

To get approved on an apartment lease, you typically have to prove that you make 3x rent/month, unless you have co-signers, or you pay first and last months rent. The same kind of logic applies to a home loan. They aren't going to set up you up with a mortgage payment that isn't commensurate to your income. You have to make enough money to be able to afford a payment.

It is a novel idea, but you have to remember that you might not even be in the financial position to go in alone on something like this. I know that you have financial backing from your parents, but to get approved for a loan, you typically have to document what money you have and where it came from. You also have to have the cash flow (on your own means) to be able to afford the monthly payment. What kind of loan are you going to do? Conventional or FHA? What is your down payment? Are you going to throw the 25k down and have no reserves? How are you going to manage maintenance costs?

All that said, It isn't a bad idea. You can build equity in a property, and you're right, you wouldn't be throwing money away each month on rent. An easy way around maintenance is to get a home warranty, but these aren't always reliable, and cost upward of $400/year.

But as everyone else has said, you make minimum wage. They are going to want to know your gross monthly income, and whatever minimum wage is, it isn't amounting to a lot in a year. What is it, 15k a year? You typically want to shoot for a mortgage payment that is 1/4 of your income (or less).

 

[tim teufel]

Originally Posted by 21 World B Free 21

No. you won't make up your closing costs unless you stay there for 5+ years and in 2 years you will have no idea where you will end up. Also, you probably don't make enough money for the interest deduction to matter

take out a 15 year mortgage or a 10 year if you have 25k to play with. rates are insanely low right now.
.

 

[jackieboy]

25k @ 20yo

Nice1 OP!