Forum
»
200k saved, looking to buy a 325k house, wut do? finance brahs GTFIH (98k reps)
05-21-2019, 04:39 PM
-
#31
- adamsz
- Spoon Pic Connoisseur
-
- adamsz
- Spoon Pic Connoisseur
- Join Date: Jul 2010
- Location: Portland, Oregon, United States
- Posts: 24,762
- Rep Power: 207854
-
-
Originally Posted By DrWilliam⏩
My thought it is would either be half my paycheck going towards paying rent or half of it going towards a mortgage which would allow me to simultaneously build good equity, especially here in Portland.I'd be hesitant to buy that expensive of a house making only $2500 a month. Why not look for something smaller? I wouldn't want half of my paycheck going to a mortgage
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:42 PM
-
#32
- DrWilliam
- Registered User
-
- DrWilliam
- Registered User
- Join Date: Apr 2013
- Location: United States
- Age: 38
- Posts: 11,544
- Rep Power: 0
-
-
Originally Posted By adamsz⏩
Trust me I'm definitely all for real estate equity, I own 4 houses, but you also want to do that when you have plenty of money for reserves. If an unexpected repair comes up you could be in a bad position.My thought it is would either be half my paycheck going towards paying rent or half of it going towards a mortgage which would allow me to simultaneously build good equity, especially here in Portland.
Personally I would rent something small, invest that $200k and continue to advance your career until you can cover a mortgage with only 30% of your take home. I think you would be over leveraged otherwise.
Developing a good skill set and using that to make money will almost always be your main driver in wealth building. Eventually you can have enough in investments to where you don't have to make a lot of money from a job / skill set but that time isn't now.
05-21-2019, 04:46 PM
-
#33
05-21-2019, 04:48 PM
-
#34
- adamsz
- Spoon Pic Connoisseur
-
- adamsz
- Spoon Pic Connoisseur
- Join Date: Jul 2010
- Location: Portland, Oregon, United States
- Posts: 24,762
- Rep Power: 207854
-
-
Originally Posted By DrWilliam⏩
I appreciate the explanation and advice, it definitely does make sense.Trust me I'm definitely all for real estate equity, I own 4 houses, but you also want to do that when you have plenty of money for reserves. If an unexpected repair comes up you could be in a bad position.
Personally I would rent something small, invest that $200k and continue to advance your career until you can cover a mortgage with only 30% of your take home. I think you would be over leveraged otherwise.
Developing a good skill set and using that to make money will almost always be your main driver in wealth building. Eventually you can have enough in investments to where you don't have to make a lot of money from a job / skill set but that time isn't now.
Personally I would rent something small, invest that $200k and continue to advance your career until you can cover a mortgage with only 30% of your take home. I think you would be over leveraged otherwise.
Developing a good skill set and using that to make money will almost always be your main driver in wealth building. Eventually you can have enough in investments to where you don't have to make a lot of money from a job / skill set but that time isn't now.
One thing I didn't mention in the OP is I have 15k in my checking account which I didn't include in that 200k figure. I have 10k as kind of an emergency fund then 5k that I just haven't really done anything with. By the time I sell the house and move out I'd have another 2500 or so saved up from the next couple paychecks.
Thinking about it though if I do buy a house in the low 300k range it will likely need about 5-10k worth of work if I want to make it nice.
I do also get a couple grand in bonuses every year which I didn't include in my stated take home pay.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:52 PM
-
#35
- solidus2k3
- Registered User
-
- solidus2k3
- Registered User
- Join Date: Jun 2003
- Location: rofl land
- Age: 38
- Posts: 41,584
- Rep Power: 123781
-
-
why are you sitting on so much cash? great job savings btw
<HTC>
05-21-2019, 04:54 PM
-
#36
- DrWilliam
- Registered User
-
- DrWilliam
- Registered User
- Join Date: Apr 2013
- Location: United States
- Age: 38
- Posts: 11,544
- Rep Power: 0
-
-
Originally Posted By adamsz⏩
Are there any triplexes or fourplexes in Portland? Another option could be to finance one of those, live in one unit and rent the others outI appreciate the explanation and advice, it definitely does make sense.
One thing I didn't mention in the OP is I have 15k in my checking account which I didn't include in that 200k figure. I have 10k as kind of an emergency fund then 5k that I just haven't really done anything with. By the time I sell the house and move out I'd have another 2500 or so saved up from the next couple paychecks.
Thinking about it though if I do buy a house in the low 300k range it will likely need about 5-10k worth of work if I want to make it nice.
I do also get a couple grand in bonuses every year which I didn't include in my stated take home pay.
One thing I didn't mention in the OP is I have 15k in my checking account which I didn't include in that 200k figure. I have 10k as kind of an emergency fund then 5k that I just haven't really done anything with. By the time I sell the house and move out I'd have another 2500 or so saved up from the next couple paychecks.
Thinking about it though if I do buy a house in the low 300k range it will likely need about 5-10k worth of work if I want to make it nice.
I do also get a couple grand in bonuses every year which I didn't include in my stated take home pay.
05-21-2019, 04:54 PM
-
#37
- PisseninMisc
- Registered User
-
- PisseninMisc
- Registered User
- Join Date: Mar 2015
- Age: 40
- Posts: 16,596
- Rep Power: 141961
-
-
Do you have a family? Why live in a house if you can barely afford it?
If the bank allows you to actually finance it, go with option 1, rent out the house breaking even or maybe even a little income stream. Move 5 mins from work in a 1 bed apartment and invest the difference.
If the bank allows you to actually finance it, go with option 1, rent out the house breaking even or maybe even a little income stream. Move 5 mins from work in a 1 bed apartment and invest the difference.
Originally Posted By DrWilliam⏩
Or this ^ but I doubt you can afford more than a duplex based on the numbers. However I'm a fan of investing a little further away than where you want to live. Nicer neighborhoods are more expensive to get into, but if you know the area you can buy something a few miles outside of the currently expensive neighborhoods. If you know development is going to continue, you have a better chance of increasing property values in the future. I think that should work for Portland although I'm not familiar with the market tbh.Are there any triplexes or fourplexes in Portland? Another option could be to finance one of those, live in one unit and rent the others out
*** Dawn Patrol Crew ***
Rustle me = get repped
05-21-2019, 04:55 PM
-
#38
05-21-2019, 04:56 PM
-
#39
- adamsz
- Spoon Pic Connoisseur
-
- adamsz
- Spoon Pic Connoisseur
- Join Date: Jul 2010
- Location: Portland, Oregon, United States
- Posts: 24,762
- Rep Power: 207854
-
-
Originally Posted By DrWilliam⏩
not many, Portland has insanely strict zoning laws in the city and most chit is zoned for single family residential units. It is good in terms of real estate values rising though because there's such a low supply of housing inventory (one of the lowest in the nation). Any decent tri or fourplexes are gonna be in the 800K+ range at a bare minimum.Are there any triplexes or fourplexes in Portland? Another option could be to finance one of those, live in one unit and rent the others out
Originally Posted By PisseninMisc⏩
No family.Do you have a family? Why live in a house if you can barely afford it?
If the bank allows you to actually finance it, go with option 1, rent out the house breaking even or maybe even a little income stream. Move 5 mins from work in a 1 bed apartment and invest the difference.
Or this ^ but I doubt you can afford more than a duplex based on the numbers. However I'm a fan of investing a little further away than where you want to live. Nicer neighborhoods are more expensive to get into, but if you know the area you can buy something a few miles outside of the currently expensive neighborhoods. If you know development is going to continue, you have a better chance of increasing property values in the future. I think that should work for Portland although I'm not familiar with the market tbh.
If the bank allows you to actually finance it, go with option 1, rent out the house breaking even or maybe even a little income stream. Move 5 mins from work in a 1 bed apartment and invest the difference.
Or this ^ but I doubt you can afford more than a duplex based on the numbers. However I'm a fan of investing a little further away than where you want to live. Nicer neighborhoods are more expensive to get into, but if you know the area you can buy something a few miles outside of the currently expensive neighborhoods. If you know development is going to continue, you have a better chance of increasing property values in the future. I think that should work for Portland although I'm not familiar with the market tbh.
In the 5.5 years I've lived in my current house the property value has more than doubled. Portland has set city limits (can't expand outward like say LA), super strict zoning laws, and one of the lowest housing supplies in the nation. Real estate values will only continue to rise. So my thought is why not move somewhere some what more desirable and basically do the same thing I did here in the last 5.5 years, but over say a 10 year time line.
Originally Posted By Slyrz⏩
all of this is contingent on me selling my current house. I didn't say I have 200k right now anywhere in the OP. One of my best friends from high school who I trust is an extremely sucessful realtor here and we looked at comps a month back and they were all in the 240-270k range.This is one of those threads where OP presents a false problem to show off their assets, ignore certain questions in the thread, and then ultimately disappear.
What questions have I ignored?
edit: i did say 200k saved in the title, which is misleading I'll admit. It's more just for the premise of the thread.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:57 PM
-
#40
- DrWilliam
- Registered User
-
- DrWilliam
- Registered User
- Join Date: Apr 2013
- Location: United States
- Age: 38
- Posts: 11,544
- Rep Power: 0
-
-
Originally Posted By adamsz⏩
Yikes. In that case I'd go for roommates to subsidize your mortgage.not many, Portland has insanely strict zoning laws in the city and most chit is zoned for single family residential units. It is good in terms of real estate values rising though because there's such a low supply of housing inventory (one of the lowest in the nation). Any decent tri or fourplexes are gonna be in the 800K+ range at a bare minimum.
05-21-2019, 04:58 PM
-
#41
05-21-2019, 05:04 PM
-
#42
- ErnieMccracken
- Join Date: Nov 2013
- Posts: 100,062
- Rep Power: 330290
-
-
If you are unhappy with cubecel or tradie life, you have options right now worth considering...
05-21-2019, 05:09 PM
-
#43
- IsLifeRealLife
- Registered User
-
- IsLifeRealLife
- Registered User
- Join Date: Nov 2011
- Posts: 11,396
- Rep Power: 14520
-
-
If it were me I would put 100k down on a 30 year mortgage and get a roommate. That way, if you really really really hate hating a roommate you can afford to pay the full $1500 a month to not have one. Then you still have 100k to invest/keep as emergency fund and do repairs on the house. It is the more safer option and leaves you with more directions imo.
Big Baller Brand Crew
05-21-2019, 05:11 PM
-
#44
- skinnybig2
- Registered User
-
- skinnybig2
- Registered User
- Join Date: Nov 2013
- Posts: 3,620
- Rep Power: 5467
-
-
Selling right now would be smart as the market is high.
I don't think you should buy right now though. You are talking about paying top dollar and you don't have a lot of income. You would probably be better off selling, putting your money in the bank and renting a studio in an area that isn't quite so costly.
I don't think you should buy right now though. You are talking about paying top dollar and you don't have a lot of income. You would probably be better off selling, putting your money in the bank and renting a studio in an area that isn't quite so costly.
Finally green! Green green greeeeeeeeen!
05-21-2019, 05:12 PM
-
#45
- PisseninMisc
- Registered User
-
- PisseninMisc
- Registered User
- Join Date: Mar 2015
- Age: 40
- Posts: 16,596
- Rep Power: 141961
-
-
Originally Posted By adamsz⏩
Invest based on development and population change, not zoning laws. Laws can be changed. I live in LA and laws change here all the time, don't see why it wouldn't be true for portland.not many, Portland has insanely strict zoning laws in the city and most chit is zoned for single family residential units. It is good in terms of real estate values rising though because there's such a low supply of housing inventory (one of the lowest in the nation). Any decent tri or fourplexes are gonna be in the 800K+ range at a bare minimum
No family.
In the 5.5 years I've lived in my current house the property value has more than doubled. Portland has set city limits (can't expand outward like say LA), super strict zoning laws, and one of the lowest housing supplies in the nation. Real estate values will only continue to rise. So my thought is why not move somewhere some what more desirable and basically do the same thing I did here in the last 5.5 years, but over say a 10 year time line.
all of this is contingent on me selling my current house. I didn't say I have 200k right now anywhere in the OP. One of my best friends from high school who I trust is an extremely sucessful realtor here and we looked at comps a month back and they were all in the 240-270k range.
What questions have I ignored?
edit: i did say 200k saved in the title, which is misleading I'll admit. It's more just for the premise of the thread.
No family.
In the 5.5 years I've lived in my current house the property value has more than doubled. Portland has set city limits (can't expand outward like say LA), super strict zoning laws, and one of the lowest housing supplies in the nation. Real estate values will only continue to rise. So my thought is why not move somewhere some what more desirable and basically do the same thing I did here in the last 5.5 years, but over say a 10 year time line.
all of this is contingent on me selling my current house. I didn't say I have 200k right now anywhere in the OP. One of my best friends from high school who I trust is an extremely sucessful realtor here and we looked at comps a month back and they were all in the 240-270k range.
What questions have I ignored?
edit: i did say 200k saved in the title, which is misleading I'll admit. It's more just for the premise of the thread.
The smart move is understanding which way the population will grow and investing in that direction. There are plenty of unexpected situations though. Take the example of LA. Had friends invest near the new stadium in chitty neighborhoods that would go up in value due to new development. Plenty of the area is zoned for multi-family too. Sounds good right? But wait, now they're talking about re-zoning the area and applying strict rent control to avoid gentrifying the neighborhoods.
All I can say is do your research and don't depend too much on existing laws. Good luck mane.
*** Dawn Patrol Crew ***
Rustle me = get repped
05-21-2019, 05:17 PM
-
#46
- PatheticPeter
- Registered User
-
- PatheticPeter
- Registered User
- Join Date: Mar 2014
- Age: 23
- Posts: 8,624
- Rep Power: 39163
-
-
I wont repeat whats already been said.
But why do you keep repeating that real estate values will only continue to rise? That seems to be the only point youre really sure about. I mean 2009 was just 10 yrs ago where people saw values of their houses go down by 90 percent sometimes.
Sure historically real estate ( single home buying)is a great idea, but definitely not a "safe" investment.
Why dont you calm down a little, and not let the money burn a hole in your pocket.
But why do you keep repeating that real estate values will only continue to rise? That seems to be the only point youre really sure about. I mean 2009 was just 10 yrs ago where people saw values of their houses go down by 90 percent sometimes.
Sure historically real estate ( single home buying)is a great idea, but definitely not a "safe" investment.
Why dont you calm down a little, and not let the money burn a hole in your pocket.
05-21-2019, 05:21 PM
-
#47
- Godfrd824
- Join Date: Oct 2008
- Location: DevilMayRage's Head, Rent Free
- Posts: 57,240
- Subscribers: 2
- Rep Power: 383141
-
-
Put down the bare minimum, invest the rest.
When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home.
05-21-2019, 05:21 PM
-
#48
- guest89
- Forever aBOARD
-
- guest89
- Forever aBOARD
- Join Date: Sep 2003
- Location: United States
- Posts: 41,691
- Rep Power: 169649
-
-
In my opinion, you don't earn enough money to buy a home in that price range. I'm sure most financial experts would agree. You'd really be better off putting your 200K in a S&P 500 fund, renting and just saving as much money as possible. Everything you are describing is a recipe for you to end up losing your house/everything you own due to a financial hardship.
Whatever choice you make I'd say make sure you can save at least $500.00 per month after all other expenses.
Whatever choice you make I'd say make sure you can save at least $500.00 per month after all other expenses.
05-21-2019, 05:24 PM
-
#49
- DrunkonMilk
- Registered User
-
- DrunkonMilk
- Registered User
- Join Date: Oct 2012
- Location: San Diego, California, United States
- Age: 38
- Posts: 1,934
- Rep Power: 2715
-
-
I would go with option #4 and get a roommate. I would take the remaining money and look for another potential investment property.
http://forum.obnoxiousbrutes.com/showthread.php?t=159810801
05-21-2019, 05:29 PM
-
#50
- cyran22
- Registered User
-
- cyran22
- Registered User
- Join Date: Aug 2011
- Age: 37
- Posts: 102
- Rep Power: 938
-
-
Keep living frugally like you're doing, rent, and invest the money in simple index funds for a few more years while your income hopefully increases and you save more money.
I like investing my money in a Roth IRA so I have the option of pulling out any contributions for say house down payment.
I like investing my money in a Roth IRA so I have the option of pulling out any contributions for say house down payment.
05-21-2019, 05:34 PM
-
#51
1. Sorry but you can't afford a 300k house on that poverty income. Get an apartment or condo
2. If your take home pay is 2500 and a $1300 mortgage payment would leave you with nothing to invest, that means you're spending $1200 a month on other stuff. What are you spending all that money on?
3. Housing markets don't usually go up forever. What did it do in 2008?
2. If your take home pay is 2500 and a $1300 mortgage payment would leave you with nothing to invest, that means you're spending $1200 a month on other stuff. What are you spending all that money on?
3. Housing markets don't usually go up forever. What did it do in 2008?
05-21-2019, 05:37 PM
-
#52
- UknowWho11
- My turn is now
-
- UknowWho11
- My turn is now
- Join Date: Feb 2019
- Posts: 4,091
- Rep Power: 17408
-
-
lol at spending 320k in a house
I would buy a 100k sports car and live in a rented place happy for the rest of my life
100% srs
I would buy a 100k sports car and live in a rented place happy for the rest of my life
100% srs
"If not me, then who? If not now, then when?"
On the road to CEO 50k/month
1989-2011 Forever mirin'
*HTC crew* *Married crew*
05-21-2019, 05:37 PM
-
#53
- adamsz
- Spoon Pic Connoisseur
-
- adamsz
- Spoon Pic Connoisseur
- Join Date: Jul 2010
- Location: Portland, Oregon, United States
- Posts: 24,762
- Rep Power: 207854
-
-
This stupid fuking site keeps redirecting me to a "page not found" error page when I try to reply to this thread on desktop. Dunno wtf is going on so mobile really quick to write this
Anyways lots of great advice ITT and lots for me to consider. I really appreciate everyone's responses so far. Will rep more people off spread tomorrow.
Anyways lots of great advice ITT and lots for me to consider. I really appreciate everyone's responses so far. Will rep more people off spread tomorrow.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 05:45 PM
-
#54
- LinuxJon
- Join Date: Apr 2014
- Location: California, United States
- Posts: 49,073
- Rep Power: 325966
-
-
Do not get a 15 year mortgage, do not put near $200k down
Being locked into a higher payment is a VERY bad idea if you have a low income. You can easily pay the extra toward principle. Yeah your rate is a half point higher, but that's not worth the huge risk you're taking with a mortgage payment that's 1/2 your monthly income with no savings. First time you're out of work, you're gonna end up in default.
Put 20% down and put the rest in a conservative investment account. I'd even go so far as to say place it in something indexed that cannot lose value. Getting between 1-6% per year on the cash somewhere that cannot decrease in value while paying 4.3% interest on the home is way, way better than being cash poor and praying you never are between jobs for 3 months.
Being locked into a higher payment is a VERY bad idea if you have a low income. You can easily pay the extra toward principle. Yeah your rate is a half point higher, but that's not worth the huge risk you're taking with a mortgage payment that's 1/2 your monthly income with no savings. First time you're out of work, you're gonna end up in default.
Put 20% down and put the rest in a conservative investment account. I'd even go so far as to say place it in something indexed that cannot lose value. Getting between 1-6% per year on the cash somewhere that cannot decrease in value while paying 4.3% interest on the home is way, way better than being cash poor and praying you never are between jobs for 3 months.
480s / 370b / 495d / 235 x 2 SOHP
Trump 2020
DeSantis 2024
Catbrah 2032
Misc Firearms Crew
Misc Wristwatch Crew
Will sell wife's foot pics for watch/gun money crew
Definitely not a fed crew
05-21-2019, 05:47 PM
-
#55
Selling now would be a good idea. Buying now probably not unless you just want a house to live in long-term.
This is an asymmetric market, meaning the downside is much bigger than then upside. Real estate metrics are coming in at negative both month-over-month and year-over-year. We're talking existing home sales, building permits, mortgage applications. We can pair that with higher inventories. This is all points to a slowdown. Even as wage growth has ticked up and bond traders are hammering the long end of the yield curve down (which is another ominous indicator) to keep rates historically low. The consumer is tapped out at the tail end of the business cycle. Prices are too high so investors won't see yield opportunities. And even with supply constraints, prices are starting to plateau.
If you could buckle down for a couple years, live frugally, take classes, and invest in something safe, you might see good opportunities at the end of those years. If recession happens, you get some good deals (housing does not go up forever). If everything bucks the trend and some unseen reflation impulse happens, I don't think you will have missed much price inflation. Just buy in then.
This is an asymmetric market, meaning the downside is much bigger than then upside. Real estate metrics are coming in at negative both month-over-month and year-over-year. We're talking existing home sales, building permits, mortgage applications. We can pair that with higher inventories. This is all points to a slowdown. Even as wage growth has ticked up and bond traders are hammering the long end of the yield curve down (which is another ominous indicator) to keep rates historically low. The consumer is tapped out at the tail end of the business cycle. Prices are too high so investors won't see yield opportunities. And even with supply constraints, prices are starting to plateau.
If you could buckle down for a couple years, live frugally, take classes, and invest in something safe, you might see good opportunities at the end of those years. If recession happens, you get some good deals (housing does not go up forever). If everything bucks the trend and some unseen reflation impulse happens, I don't think you will have missed much price inflation. Just buy in then.
05-21-2019, 06:02 PM
-
#56
05-21-2019, 06:04 PM
-
#57
- RidiculousPrice
- Banned
-
- RidiculousPrice
- Banned
- Join Date: May 2019
- Age: 56
- Posts: 121
- Rep Power: 0
-
-
Put down 20% to avoid PMI, get 30yr fixed, invest the rest in index funds like S&P 500 & set up acct to auto-reinvest dividends in same. Set, forget, comeback in a few years to thnk me.
05-21-2019, 06:06 PM
-
#58
05-21-2019, 06:07 PM
-
#59
Originally Posted By Halfway⏩
im with ya all the way, I do understand the opportunity cost but there’s also something about having no mortgageI hate having a mortgage payment, and hate the idea of paying the bank chitloads of frontloaded interest. If it were up to me I'd have put down 100% but my wife didn't want that
Dallas Cowboys
Lifted for 30 years
Ass > tits
No Debt Crew
05-21-2019, 06:07 PM
-
#60
- RidiculousPrice
- Banned
-
- RidiculousPrice
- Banned
- Join Date: May 2019
- Age: 56
- Posts: 121
- Rep Power: 0
-
-
Originally Posted By skinnybig2⏩
lol @ trying to time the marketSelling right now would be smart as the market is high.
I don't think you should buy right now though. You are talking about paying top dollar and you don't have a lot of income. You would probably be better off selling, putting your money in the bank and renting a studio in an area that isn't quite so costly.
I don't think you should buy right now though. You are talking about paying top dollar and you don't have a lot of income. You would probably be better off selling, putting your money in the bank and renting a studio in an area that isn't quite so costly.
this guy fux!
Spoiler!
(goats)
Bookmarks
-
- Digg
-
- del.icio.us
-
- StumbleUpon
-
-
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts