Housing situation
 

Needing opinions.

Apartment or house, what would you do?

The fiance and I are looking for a place to live after our contract runs out next month. It seems that when we find a house we want in a good neighborhood the prices are from 600-800. Well I'd prefer to spend less then 600 so we can save money before we get married. We want a 2 bedroom house. We have a Siberian Husky, so she needs room to play.

Apartments are cheaper and could help us save money in the long run. But, our puppy won't have her own backyard. Apartments seem to range from 375-500 for a one bedroom and the bills are cheaper. The fiance wants a house and it doesn't bother me what we get. Put yourself in our shoes (college students, getting married next May, niether of us have the jobs we are working towards) what would you do?

Move in with your parents.

Negative.

Apartment until you get more settled.

Young... no real jobs... likely no big savings, etc.

I don't know that you're going to get great rates from a lender on buying a home, plus that is a debt that you may want to avoid since you don't have real jobs making good money. I'm just making that statement based on what you said... it could be different.

I would say, do the apartment thing until you have saved some $... and until you're married. You'll enjoy moving into the home with $ in the bank as a married couple.

Also, start watching your credit scores... avoid piling up debt now. You'll be better off when you go for a mortgage.

When I got sick of living in apartments, but wasn't ready to buy a house I found a small rental house for about what I would have paid for an apartment. Look around, you may be surprised. Smaller duplexes (ranch style) are usually affordable.

I'm pretty sure he means renting a house not buying one.

Last one... get a free credit report, check out www.myfico.com (I think that is the site). You can pay for reports, but I would suggest working on your credit score and talking to a lender about a year in advance.

It costs you nothing to talk to a lender, and let them know up front "you're not going to convince me I can own it now"... if they're any good, they'll work with you and gain your trust, knowing that you'll be using them in a year.

The good ones can help you with a realtor, etc.

Just some friendly advice. I think you should start making sure your credit score, finances, etc are in line a year before you really want to buy. It takes some time to rebuild bad credit and the better your score... the more house you can afford at a lower rate.

And, since this will be your first house... likely a starter house. Find something reasonable in a good school district, that way the resale value is good and when you try to move later... you may sell quicker.

Ahhh... didn't really consider that one.

If it were me, I'd take the house over the apartment nearly every time if the cost was the same or cheaper.

Ok, screw it ... I'm outta here.

See that might be the problem about an apartment. My fiance has been living in this one since last August and said she doesn't want to live in one anymore. I'd just feel so much better going into marriage with our savings account in the 4 digits then less then a thousand.

Exactly. Me and the miss are in the early stages of purchasing a home, but having a clean and good credit can do wonders, especially when it comes to going for a mortage. I take my monthly bill payments very seriously. Once we get some of our bills paid off next year, most of the money would very deftinaly help on our mortage payments.

Yes, if they were the same price I would take the house every time. But we've been looking for a few weeks now and every house that would cost the same as an apartment has been in the ghetto.

Sure, but that's without the taxes and the other bills (i.e. water, electric)

Dunit, try to find a apartments that would offer maintence, and at least the following three (free cable, trash, and water) Me and the miss live in the area where the cable, trash, and the water are free, we only have to pay for the electric.

I don't have credit right now. I bought my fiances ring in February with my first credit card (kays card). It isn't supposed to be paid off until January but I should have it done next month.

The apartment we live in now has us paying the electric and cable/internet.

12 months, no interest, right?

Never took out a loan for either college or a vehicle?

Not bad. Usually though, (In my experience) water sometimes tends to cost more, especially if you are NOT using any a/c.

If it's an interest free card for a set period and you really want to build credit then don't be in such a rush to pay it off. By making regular payments on time you are building a credit history. If you pay it off and don't use the card or worse yet close the account it will have a negative impact on your credit as opposed to a positive one.

You get good credit by having a modest number of accounts that are open and active. In some cases having no credit is worse than having poor credit.

No, unfortantly I am paying interest on it. I think since March interest has added another 30 dollars to it. That's why I'm trying to pay it off asap, that and it will help my credit.

My vehicle was given to me by my grandpa. I do have a couple loans for college but I think they had to be put under my dads name until I graduate.

I'm not an expert in the field... but I have stayed at a Holiday Inn Express recently. It may sound weird, but you're going to need a credit history that shows you can pay your bills on time. I don't think you're going to get too far without a credit history.

Maybe I'm wrong...

I'm also not surprised that the cheaper rent houses are not in the greatest of neighborhoods. I'd stick with an apartment scene for now. Sure, it sucks for the dog... but, it's short term.

We almost have to use the A/C in here. Electric is probably 100 a month here. It gets really hot in here without, opening the windows doesn't offer much cooling. We must be in the bad part of the complex, not much of an opening for windows to get outside air.

You are saying that if I continue paying it off as quickly as possible it could hurt me?

What I am saying is, the credit report people don't see that I paid off a credit card 5 months in advance?

http://www.myfico.com/

Check that site out - there's a forums section that could be helpful for questions like this one. And, there's a TON of helpful info all over the site.

It depends on what your long-term goals are. Do you want to eventually own a home? Take the option that will allow you to save a down payment quicker. Don't accumulate stuff/debt now...there'll be plenty of time for that. And start building your credit. Get a couple credit cards, make minor purchases each month ($50 - $100) and pay them off in full each month. With most CCs, you won't be charged any interest if you pay off the balance within one billing cycle. If you do go the apt route, try to find out (not sure how) their policy on returning deposits. There are a lot of apt complexes that will literally make stuff up so they don't have to give your $$ back.

I'll check it out.

What angers me is checking apartments on here and they look good but then you go and drive by them and they look like crap.

The evil of the Internet... if it looks "too good to be true", it probably is too good to be true.

Heh, good line on the Holiday Inn Express. No, you are correct on the credit history. Usually, if people have a very solid credit history, and they are capable of paying their bills on time, and no missed payments, more often than not, they would be approved for a big mortage, provided that their salary will be sufficiant enough to pay it, of course.

Usually, it a good idea to buy stuff that is around the $400 to $600 and most stores have that gimmick of 12 months no interest for purchases of $399 and up. Start off paying off those first to build up your credit.

For example, in March of this year, at Circuit City, I recently bought a new computer, with Windows Vista, 3.0 Ghz, 2 GB RAM, 22 inch widescreen monitor and it had a free printer/fax/scanner in one, thrown in the package. 14 months, no interest for it.

It costed me $1150, but I got $320 back from rebates, and I used that to chuck off part of the payments. And I'm deftinaly gonna get this paid off before the end of the year, easily. About $500 more to go.

That's what I've been thinking. Long-term an apartment could save us an easy 150+ a month and over a year or two (two years left for school) and we could easily use it for a down payment on a house. We'll have to get a new car sometime when we get married both of ours aren't the best and are high mileage. I could just see us easily paying over 1K on a house, bills, auto insurence, health insurence, etc. When we would only be making 2K a month. What if something happened to a vehicle, would we have to wait to fix it because we don't have the money. With an apartment, saving that money, we could fix something real quick.

As my brother said "if you say you can afford this place, it doesn't mean you should go get it". Find cheaper stuff, he says to get an apartment.

The more I talk to you guys and him, I'm hoping we can just get an apartment.

Yeah, we don't know ALL the bad areas around here. So, we're saying "hey, 550 a month for this two bedroom place, awesome lets check it out" we go there and it's in the ghetto.

Funny story. The other day I found a 3bdrm, 1.5 bath for 500. The old lady says "real quiet neighborhood". We go to check it out and the first people we see in the neighborhood are 3 cop cars with lights flashing at one of the houses.

Yeah, I was in that type of a grey area that you're currently in. Me and the miss are deftinaly trying to save up $ for the down payment. Not to mention that we're figuring out and deciding (we're more than likely gonna build a home) if we want to have a walkout basement or not.

For instance, Yeah, we did some advanced thinking, and that would be with 2 types.

1. With Walk-out
- Base price is $229,000
- All extra stuff added (i.e. additional lighting, low-e windows, corial countertops, etc etc) $12,095
- 9' Walkout Basement - $18,550

Add all them up, it's $259645

2. W/o Walkout

Same as above, minus the $18,850, which would be $242,855.

And our down payment would be at least around 40,000, which is very good since it would lower the monthly payments.

With the walkout, the payments would be starting at $1,760, that's included taxes and insurance. W/o the walkout, it's starts off a $1,656, including taxes and insurance.

So we're thinking to ourselves, is it really worth an extra $100? Especially when you add it all up and all.

We know for sure, with the bills that we are currently paying for, will not cover the home costs. That's why we set a goal to at least try to get 3/4ths of our bills paid off by next June, where it would free up at least close to $800 that we can put into the mortage payments.

I'm wanting to do the same thing. I got another credit card a month ago for 500. But, don't plan on using it for anything other then a breakdown of my truck.

If there is one thing I want it's a 32 inch Sony LCD HDTV at Wal-Mart for 700.

There are no "credit report people" it's all programmed formulas. Paying it off won't hurt you. The main thing is that now that you have it open it should be active. Unfortunately with a Kay's card you can't really use it very often. I would recommend you sign up for a card on campus (master card or visa), get the free tee shirt and use it for 1 tank of gas per month. When you get the bill pay it off in full and charge another tank of gas and so on. This will establish an active account that is managed responsibly. The scoring model will see low balance to limit ratio, and good payment history and BOOM there you have it! Within 6 months you will have a good credit score.

Heh, as long you make the payments, and don't miss a payment, you'll be fine.

BTW, where are you wanting to live at? Your location thingy says OKC, and I'm assuming ya'll are looking at in the OKC area?

Like I said, I have a chase credit card that has 500 on it. You think it'd be best if I used that once a month for gas and paid it off in full each month? Do you think that the Kay card that I used won't give me much credit? Just wondering.

Yeah, right now we live in NW OKC and are looking for a place here. But when we graduate we both want to immediately move back to her hometown (my bro lives there now also), that is if our jobs would allow that.

Apts are usually cheaper depending how safe an area you need to be in....

Save up for a house decent down payment. Still buyers market

Where would her hometown be at, if I may kindly ask?

Watonga. Small town, everythings cheaper but fuel.

Absolutely on using the Chase card for gas. If you pay off the full balance you'll never pay a dime in interest so it does nothing but good. The Kay card will help in the short term it is just an account that you won't use very often unless your lady requires jewlery on a monthly basis. If that's the case you may want to reconsider that ring!!:)

God I'm old.

Ah, ok. For some reason, I thought maybe ya'll were from the KC area.

Either way, good luck.

Yeah, that's a problem. This place she lives in now is considered a nice area. This two bedroom she lives in now is 644 a month. It seems most of the aparments I've driven by this week haven't been amazing looking.

This looks nice.

http://www.rent.com/rentals/oklahoma...1&searchrank=3

The pic could be a trick though.

If this living arrangement is temporary, rent the least expensive place you two can agree upon. Give it a while, sign a 6 month lease or less if possible. If you hate it, when your lease runs out, find a bigger place. You need to put your money away until you can buy. Your goal is to buy. Drive your Grandpa's car until it falls off its wheels. Save, save, save. You have your whole life ahead of you. You may look back on these struggling days with fondness.

I couldn't agree more. A few times over the past couple years I thought about getting a new vehicle but then though "I'll just drive this until the money it costs to keep this running becomes to much". Of course I haven't saved any of that money. But I know I would've had to sell that vehicle by now.

I like Mr. bogie's advice on this deal, Mr. Dunit35.

All you really need right now is a stove, a bathroom, and a good bed. Save as much money as you can, avoid debt like the plague, and take your vitamins.

FAX

At this stage, consider your vehicle as transportation and nothing more. You already have a woman, so there's no need to purchase to impress. Just curious, how long until you graduate?

Two years at the least.

Yeah, just focus on graduating... live modestly, get married... save some $ and you'll be better off. Taking on too much too early could get you in a bind that pushes you to file for bankruptcy, then you're SOL for a while.

Very good point, have less money could cause problems in our relationship also.

No doubt and all buying a house does is give your new bride all sorts of reasons to buy new stuff... that doesn't seem to happen as much in an old apartment. So, you're saving in a number of ways.

Plus, getting into a house means 3 trips a month to Home Depot... then there is lawn care and crap like that... need I say more?

What's your major?

i would get a apartment that was cheap. That way when she dumps you there is she can't get much out of you.

Criminal Justice now, was History education.

Are you going into law enforcement?

I am looking at a house right now on the net. It's only 625 sq ft. How small is that? Pretty small?

Second that.

Tiny

I don't even know if that qualifies as a house. Heh.

For the sake of comparisons, most 2 car garages are about 250 sq feet.

The room I'm sitting in right now is 400.

That house is a small apartment.

Thanks, it's a one bedroom for 400 in a nice neighborhood within two miles from our jobs.

Well, that certainly saves on fuel and it's reasonably priced. I don't know why you shouldn't look at it.

Doesn't sound like you are settled or enough to buy a house, but renting is just throwing your money away. Yeah, I still do it, mainly because I'm lazy. But I'm going to buy a house in a year or so and just rent two rooms out. You can get a 200K to 250K house for 1K a month house payment if you can finance it right. I have the credit to do it, so I don't have any worries there. I figure there are going to be many times when I don't have the rooms rented out and not clearing any money per month but I could make it. Once you get two people in there for 450 a pop you basically are living almost for free.

We're going to tomorrow after she gets off work. I'm interested even though it's small. It's a duplex but has a nice sized backyard for our Husky.

Gawd damn that is cheap..both ways.

Just remember to look for apts who allow big dogs. More and more places won't allow it these days.

You are smoking straight crack rock if you think you can get a $250,000 house for $1000/mo. Don't believe everything you hear on the radio. The principle and interest payment on a 30 year fixed mortgage at todays rate of 6.75% will cost you $1621.49. Add another $300-$400 for taxes insurance etc. and your looking at $2000 easy

Heh. You beat me to it.

I dunno, my friend has a 207K house, he put 20K down and he pays 1095 a month. I have 17K in the bank right now that I'm saving up for a down payment in the future. That can't be done? Yeah the insurance and taxes will get ya but he did it pretty well with a credit rating of like 800 or so. Is he just blowing smoke?

Not necessarily, now your talking about a loan of $187K instead of $250K. Still odds are he's in an interest only loan with a payment that low. That or his taxes and insurance aren't included in his mortgage payment. People with down payments are rare these days, everyone wants to just borrow 100% of the agreed price and start making payments. You are smart for saving for a house, believe it or not it's become a thing of the past...

Payment Calculator

Yeah, I really want to get a house and rent two rooms out. I like having roommates anyway, it's fun. I think I'm gonna start lower though at a small little 3 bedroom up in North Overland Park or something. My credit rating is about 770 or so last time I checked. I've been cheating the system since I was 18. I charged my college and financed my truck all through college and my dad just cut me a check every month to up my credit. So it looked like I was paying. I've tried to charge everything since I was 16 years old and I haven't ever paid any finance charges to this day, just pay it off at the end of the month.

Forgive me if this has already been covered somewhere in the thread but why wouldn't you simply renew the contract where you are currently living?

That still seems very low. Back when I had a mortgage in the $170s, my payment was still $1,600*, and I had a pretty good interest rate. I wonder if he's got an ARM or some sort of teaser rate.


* - Including taxes and insurance, and granted your taxes may be lower.

We live with a roomate, she's an idiot and extremely lazy and we want to be closer to our jobs.

Just buy a large constrictor snake, an aquarium with out a top, and a nice vacation package for a weeks stay to anywhere outside of your house.

BUUUUUUUUUUULL SHIIIIIIIIIIIIIIIIIIIIIIT! I call Shenanigans.

You're a crackhead if you think you can finance a 200k house for 1k/month.


It turns out that I just sold my home and am looking into financing and housing in another area now.

Unless you're putting 100k down....you're speaking from your anus.

a 30 year note, with 10-15% down, with the current interest rates around 6.6(don't forget the 3k in closing costs) your payment would be around a grand. (don't forget your taxes and the mortgage insurance they'll sell you on your first home).

I think we could look back 6 months and find the thread in which you were told that situation wouldn't work out.

Someone needs to read the fine print on thier mortgage.

If you are getting a $200-250K house for $1K/month, I guarentee you aren't financing it "right." Furthermore, with the collapse of the subprime market, your "low to no" money down options are out the window.

My house is paid in full, but I still have to put aside ~$400/month for taxes and insurance--and that is without any special assessments. Assuming you purchase a $200K house, you'll want to set aside at least $300/month ($4k/year or 2% of value of home) for basic maintainance. Count in utilities and you're looking at an additional $1000 (Utilities, maintenance, taxes and insurance) on top of your fictional $1k/month financing.

I have $220k financed on 5.5% and the mortage payment is $1100.

However, there is more to your monthly payment than just the mortage like insurance, taxes, etc... Our monthly payment ends up being just over $1500 after you add in all of the escrow payments.

I don't understand why anyone would pay rent, unless you were only planning to stay in a location temporarily. We looked at apartments in 01, but bought a house in KC, Raytown schools for $74k. That was in 01, and when we moved in '05 we sold it for $101k.

When you own, you are paying the mortage on your own property and will walk away with the difference when you sell.

When you rent, you are paying the landlords mortage, and you leave with nothing.

That's just it; you financed when rates were lower. The average rate today on a 30 year fixed is 6.33%; how that translates:

$200K = $1241.86/month
$225K = $1397.09/month
$250K = $1552.32/month

This is why everyone is calling BS on the $1K/month figure for a $200-250K home.