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When you buy your first house?

Discussion in 'Other Off Topic Forum' started by F360@20, Feb 8, 2004.

  1. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    I was just reading the thread on the housing market thread. I was just curious when you go to buy your first house do you start small and work your way up or can you just go big if you can?

    lets say you had $100,000 for a down would you put that on maybe a older house that is selling for $300,000? (In Cali that does not get you much)

    Or would you take it and put it down on a house that is selling maybe for $800,000?

    Does it really matter what you choose?
    One of my uncales made all of his money in real estate. (And alot of it)
    He has some of the nicest houses Ive ever seen but when I ask him for advice he just tells me Ishould not buy a house yet???? Why If I have the money to buy a house would it be better to get started sooner in life?
     
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  3. mighty

    mighty Karting

    Nov 2, 2003
    231
    Wait, do you own a 360 and are you really 20?
     
  4. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Yep, and well im almost 21 now.
     
  5. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,732
    Nova Scotia Canada
    Full Name:
    Neil
    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.
     
  6. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Yea, I understand what your saying and I agree. I do want to get out of the town I live in now thow! I hate it here. So that is why Im tring ot decide to rent or buy or what I should do?
     
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  8. mighty

    mighty Karting

    Nov 2, 2003
    231
    Did your Dad buy the car? Sorry but it sounds unbelievable.
     
  9. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,732
    Nova Scotia Canada
    Full Name:
    Neil
    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.
     
  10. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,732
    Nova Scotia Canada
    Full Name:
    Neil
    Who cares?
     
  11. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Did my daddy buy my car? haha NOPE

    My dad does not want anything to do with me. Never meet him in my life. Or in other words I was a mistake.
    Yes, I do have a very large trust fund, but I do not get to touch that till later in life. (So no daddys money does not come into effect)

    Yes, i bought my own Ferrari so what who cares, I figured stuff out younger then most people what can I say?

    Started a company that provides and delievers the best.

    My grandfather was very very succuessfull with his company one of the largest in the U.S. When I started out he was very proud of me. I asked him how to I become succuessfull he told me one thing -
    You are only as good as your Name.
     
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  13. Juice It

    Juice It F1 Rookie

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff

    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.
     
  14. mighty

    mighty Karting

    Nov 2, 2003
    231
    Most people would find a 20 yr old owning a 360 unbelievable. So I guess most people care.
     
  15. tifosi69

    tifosi69 Formula 3

    Dec 23, 2003
    1,671
    Atlanta, Ga.
    Full Name:
    Al-Al Cool J
    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 !!
     
  16. zjpj

    zjpj F1 Veteran

    Nov 4, 2003
    5,938
    USA
    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.
     
  17. tifosi69

    tifosi69 Formula 3

    Dec 23, 2003
    1,671
    Atlanta, Ga.
    Full Name:
    Al-Al Cool J
    DITTO !! Jealousy is such an ugly thing to behold !!!
     
  18. PeterS

    PeterS Three Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    38,422
    95370
    Full Name:
    PeterS
    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).
     
  19. Juice It

    Juice It F1 Rookie

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff

    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
     
  20. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Wow hold up everyone you guys starting your periods or something?

    First off I did not ask HOW TO BUY a house. I asked merely if you bought a house what would be better for you as investment. (Learn to read) And ya who cares I bought a F car before a house. I stepped with my right foot before my left?? Whats the issue..... was it a bad decsion on my part...hmm yea I would say investment wise yea. O and my paments are not 2gs a month. I borrowed against money in the bank. So every month I pay however much or little I wish, ontop of the fee for borrowing the money from the bank. Aka a secure Loan.

    And if you want to cry some more keep coming Im here all day.
     
  21. zjpj

    zjpj F1 Veteran

    Nov 4, 2003
    5,938
    USA
    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
     
  22. Robin

    Robin F1 Rookie

    Nov 1, 2003
    2,893
    Arlington, VA
    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.
     
  23. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Hey, thanks for everyone who understands. I know I have not been here for that long. But I dont say stupied things or get in peoples way. I stay low and just ask for adivce when needed. Just because Im young does not mean I know EVERYTHING. What I am trying to say is I do not like to argue over stuff like this. Its dumb
     
  24. Juice It

    Juice It F1 Rookie

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff
    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!
     
  25. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    Thanks Robin, that is all I was asking.
     
  26. tifosi69

    tifosi69 Formula 3

    Dec 23, 2003
    1,671
    Atlanta, Ga.
    Full Name:
    Al-Al Cool J
    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 !!
     
  27. zjpj

    zjpj F1 Veteran

    Nov 4, 2003
    5,938
    USA

    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.
     
  28. F360@20

    F360@20 Karting

    Nov 24, 2003
    244
    San Diego
    ok jeff here you go again-

    I never said I had 100k to put on a house. I just threw a number out. You assume to much AGAIN.

    The 125k I lost in the market is from my trust fund. Every month a get a big enevolpe in the mail telling me what my money is doing. Part of my trust fund is in stocks. So they send me a list of stocks that they say or think will do good, So I can give advice on what I would like it to go into.(you following this so far) So the money that is in stocks and bonds HAS to stay there no matter what. WEll the market has not done to well and I lost alot of it. Hence why I said I do not like the stock market because if it crashed I could do nothing I am not allowed to pull it out it has to stay and try and recover.

    And as far as the borrowing goes, if you new about concert sound and lighting you would know how much money is in it. If you are good.
     

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