It's also worth mentioning the more difficult to calculate intangibles of neighborhood. I rent a place for very little money in a neighborhood where, if I bought, could expect to pay upwards of $350,000 for the house. I'm living in a neighborhood I love that would otherwise be far outside my means.

 

Amen, neighbor! :lol:

Clyde, I understand your point, but if you don't have $20k saved up, you shouldn't be looking at houses in that price range. That's the type of idiotic behavior that got the housing industry in the mess it's in today in the first place.

 

No argument. However, when someone says you can buy for less than rent it may be assuming that you do have $20k+. That's my point.

You would pay more in rent than a mortgage payment most of the time. Landlords aren't in business to lose money.

 

But that's where mobility enters the equation again. The neighborhood I like when I'm 27 and single isn't necessarily the neighborhood I'll like when I'm 37 and married with a kid.

 

Also, like I said, I couldn't even begin to afford that house. I couldn't touch it with the amount of money I'm making right now. I could buy, but in a neighborhood with fewer amenities and more people with stabbing tendencies.

No argument. However, when someone says you can buy for less than rent it may be assuming that you do have $20k+. That's my point.

 

It depends on your situation. Mine currently, I'm 25, single, almost 3 years removed from college and in the market for my first house. While I have the $20k saved up for a downpayment, I know that I have no need for a house in that price range when I can get one for considerably less that allows me to live well within my means. Could I afford it? Yeah, but there's no reason for maxing yourself out. Like HT said, renting that same house is going to cost you more monthly than having a mortgage on it will.

I love the people who think 10% of $200K is "very little". :lol:

 

If you're looking at houses in that price range, you'd better have at least that much saved up if you want to realistically be able to survive. That's my point. If your looking and spending within your means the 10% factor shouldn't be a major hinderance.

But that's where mobility enters the equation again. The neighborhood I like when I'm 27 and single isn't necessarily the neighborhood I'll like when I'm 37 and married with a kid.

 

Also, like I said, I couldn't even begin to afford that house. I couldn't touch it with the amount of money I'm making right now. I could buy, but in a neighborhood with fewer amenities and more people with stabbing tendencies.

 

In this case yes that would be a good decision. But the guy stated 100% of the time it is. Which is just completely absurd.

I think there is some mass confusion about what I was saying. First a 1000 sqft apartment isn't going to be compareable to a $200,000 or more house. I said all things being equal. I'm talking about buying a $100,000 or less house.

Keep in mind that today buying requires a good down payment which means that money is not available for investments. It also prevents you from having cash available for other purchases or hobbies.

 

I believe there are still loans available for zero down payment or very little.

OK, since most that disagree with me are living in Louisville I just did a search for rental houses and houses for sale. These results are in Jeffersontown. The rental is just north of Charlie Vettiner Park and the for sale is just south so they are pretty close together.

 

The rental is 1410sqft 2 story, 17 years old, 3 bed, 2 bath for $1195/month

The for sale is 1450sqft 2 story, 5 years old, 2 bed, 3 bath (seems weird so could be backwards) for $148,500. If you took out a 30 year mortgage on the full amount your payment would be $708/month at 4%.

OK, since most that disagree with me are living in Louisville I just did a search for rental houses and houses for sale. These results are in Jeffersontown. The rental is just north of Charlie Vettiner Park and the for sale is just south so they are pretty close together.

 

The rental is 1410sqft 2 story, 17 years old, 3 bed, 2 bath for $1195/month

The for sale is 1450sqft 2 story, 5 years old, 2 bed, 3 bath (seems weird so could be backwards) for $148,500. If you took out a 30 year mortgage on the full amount your payment would be $708/month at 4%.

 

I could rent my house for just under double what I pay per month on my mortgage. :thumb: Adding in property tax(125/month) and Insurance($60/month) and the home owner is still coming out ahead. 1200 to 900. 300 extra per month that can be set aside for repairs. You pay my mortgage and I have $3,600 saved up in 1 year for repairs. This is assuming you have renters and in this economy it's not hard to get them.

^ Who would pay $1200/month to live in ODJ? (No offense to any J-Towners.) The subtleties of neighborhood life here in Louisville really prevent all things from being equal.

^ Who would pay $1200/month to live in ODJ? (No offense to any J-Towners.) The subtleties of neighborhood life here in Louisville really prevent all things from being equal.

I'm not very familiar with that area I am from NKY but that's not a bad price for a family looking for a place to rent.

I'm a city kid and -- at least to me -- J-Town is REALLY FAR AWAY. I'd spend $300 more on gas just in the first month, I'd bet.

I'm not very familiar with that area I am from NKY but that's not a bad price for a family looking for a place to rent.

Jtown is more of a suburb. If you were coming West on 64 into Louisville area it would be the first exit past the Gene Snyder. Go south just a 3-4 miles.

I'm a city kid and -- at least to me -- J-Town is REALLY FAR AWAY. I'd spend $300 more on gas just in the first month, I'd bet.

What is your zip code, I can look for comparisons in your area as well.