When you buy your first house?

Wait, do you own a 360 and are you really 20?

 

I would say make money with your money, then buy a house. Live cheap for awhile and then after you have a fair amount of money coming in every month go out and lookfor a good home. I wouldn't buy a huge house right off the bat, I have one now and it is really holding me back. So I'm moving soon to smaller digs, still big enough for what I need and I can dump more money into business ideas, stock whatever.
Don't live the life untill you can really afford to. Just a lesson I have learned and I'm only 1 1/2 years older than you.

 

Did your Dad buy the car? Sorry but it sounds unbelievable.

 

Loaded question.
There are a lot of variables to deal with.
Income
Low market prices vs high
Availability
are you going to be there for more than 5 years
Do you want to invest or start a business {or another money pit}

There must be hundreds of questions you could ask yourself.

 

Who cares?

 

With the questions asked and the employment I say BS as well. Do I rent or buy? How much house can I afford? Yeah right, you have a 2k a month car payment and could finance a Ferrari yet not sure how to buy a house.

 

Most people would find a 20 yr old owning a 360 unbelievable. So I guess most people care.

 

Bully for you, what your grandfather told you is true. As far as the trust fund thing, why does everyone have the class-envy bug? Even if the car was given to you, as long as you properly appreciate it, that's all that's important. I know plenty of guys that bought their own Ferraris and they were purchased merely as an extension of their undeveloped genitals. They have no passion or appreciation for the marque.

FORZA FERRARI !! Keep plugging away brother !!

 

You don't have to justify anything to anyone, man. That's what I hate about ************* and why I never post read or post there. On the few times that I do go there, I'll read a thread in which someone has posted, "here's my 996 Turbo" and a dozen people will post responses like, "I hate you" or "you are too young to appreciate that car" or "I bet it's not even yours" or "Porsche sucks" or something equally stupid. Give me a break. It's obviously unusual for a 20 year old to have a 360, but I don't think Ferrarichat should descend to the level where you have to give your family history and a synopsis of your personal life. mighty, I'm sure your question was totally innocent, but I just feel bad that F360@20 felt like he had to legitimize his ownership by telling us some personal information.

 

DITTO !! Jealousy is such an ugly thing to behold !!!

 

If you own a 360, you probably have a circle or a couple of friends that are on this board. Ask them (the ones with high post counts) to vouch for you).

 

I could care less if a 20 year old owns a Ferrari. I think it would be great but don't come in and BS about it. Get real, he comes in with these questions, says he owns his own business and then says he wants to move out of his town. Get real. Nice pic in the profile, looks like it came from a magazine. If I am wrong, then I am an ass but I think its BS

 

Exactly. People in many forums profess to love cars but jump on almost anyone that owns one. I find Ferrarichat to be the best automotive forum because people actualy know a thing or two about the cars themselves, and care less about the owners. By contrast, other forums, especially *************, rarely provide anything at all stimulating besides new pictures of prototypes / spy shots. But seriously, every response is about two words on that forum - either something like "I hate Maybach" or "looks great" or something equally uninteresting. We should talk about the cars! not the social milieu in which they are enjoyed

 

After seeing some of his other posts, I'd have to guess he inherited a bunch of money and is trying to figure out what to do with it. Looks like he already bought a 360, lost $125k in the stock market, and is now looking for some help buying a home.

My advice would be to only buy as much house as you need. Do you need an $800,000 house with 5 bedrooms, 5 1/2 baths, 2 acre yard, 4 car garage, etc? At 21, probably not. Unless you're planning on getting married and popping out 4 kids in the next 3 years, the space will be wasted. You also need to realize that a huge house will have huge utility bills... and unless you don't mind a big empty home, it'll have to be furnished and decorated. You could easily spend another $100k on furniture, lighting, blinds, paint, etc.

As for how much of a down payment to make, that's up for debate. Most people will tell you to never put down more than 20% (the amount needed to avoid mortage insurance..) while the Rich Dad Poor Dad crowd will tell you to pay it off as quickly as possible.

Now for some short anecdotes.. a friend of mine inherited a few hundred thousand at 21, then proceeded to blow it all and has been fighting off collectors and ultimately filed for bankruptcy at 25. She had absolutely no clue what to do with all that money, but finally sold her house to pay off all of her debt, but had to move back home with her mom. Another friend inherited a similar amount at 23, lived in a cheap apartment for a while and drove a Ford Aspire. She also used the money to pay for law school, invested a huge amount in the stock market, then a few years after working as a successful attorney, put 20% down on a great home. She's doing really well now because she invested her money in real estate, the stock market, and herself.

Just find your direction and take things slowly...

-R

edit: about 20 posts popped up during the time I spent typing that, so yeah.. if you have a trust fund, you're probably set. But it sounds like the business is doing well too, so focus on growing that instead of looking for huge homes...live moderately now, retire early.

 

Get real, he is 20, said he has a trust fund but no access as yet has lost 125k in the stock market has 150k in the bank to borrow against for his Ferrari, and then apparently another 100k to put down on a house. And at 20 he must have graduated from high school 3 or 4 years ago. Man, you must have been busy!

 

I know as I'm typing this I should not expend the calories to do so, however, I have to ask: are you for REAL? Give me a break, do you feel so inadequate in your own life that this kid should get his "circle of friends" to vouch for him to YOU? Who the **** ARE YOU? Oh, and make sure they have a HIGH POST COUNT, that's definately a sign of integrity and intelligence that can never be questioned.

LOL, F360@20, I am truly sorry you had to learn at such a TENDER young age, if you did not already realize, that some people have their heads up their asses !! Keep up the good work !!

 

Don't worry about it. You don't have to justify anything to anyone.

As for the original topic of this thread, I too am thinking of buying my first place this spring or summer. The way I see it is that as long as you can afford the down payment, it's definitely better to buy than rent. Renting, as far as I'm concerned, is the equivalent of flushing your money down a toilet - paying a mortgage without having anything to show for if at the end. So, I always think it's better to buy than rent. I agree that for someone in your position it's better to start small and let your money work for you elsewhere. As long as you're paying money for something that you actually own and you can sell later, you're in a better position than if you kept renting.