house buying abilities
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- vwsung18t0
i will have money down. it will be enough for 5-10% of the total price. i was thinking about buying a house that will be a little difficult to pay the mortgage, like not eating, but getting a housemate to make it more comfortable or pay off the mortgage quicker so that i wouldn't be paying as much interest.
- tkmeister0
5-10% down is kinda low. i'd do 10-20% range for a manhattan condo. hell, many co-op in manhattan will require 25% down.
where you planning on buying?
- material-10
20% down and you won't need to pay mortgage insurance in most cases
- vwsung18t0
not manhattan, long island. out in east end.
- -sputnik-0
yeah, in addition to the 30 year fixed i forgot to mention that 20% (or as close to that as you can get) is important
- vwsung18t0
the kind of house i'm looking at, with 20% down, would take around 63% of my paycheck for mortgage payments. is that high?
- ********0
extra payments on your house are the same as investing at your mortgage rate
- -sputnik-0
right on, rand. even an extra couple hundred a month is well worth it, so even more reason to find a place you can afford comfortably.
and then there are furnishing and improvement expenses!
- vwsung18t0
i was thinking of paying for furnishing, food, utility, etc with whatever i make with freelancing on the side.
- HumanMale0
Fucking hell, if my mortgage was only 25% of my monthly wage I'd be laughing!!!
- material-10
mine about 33% before freelance
- tkmeister0
63% of your paycheeck? that sounds pretty high.
also, you should check the appreciation on properties around your area. i know in nyc, it increases about 10-15% every year.
check this site.
http://www.zillow.com/
- material-10
63%? NOT SURE IF YOU'RE GOING QUALIFY
- vwsung18t0
yeah, that's why i'm thinking about getting a housemate. and if it decides to move out, i can still make the payments even though it'll be 63% of my paycheck until i get another roommate. hopefully i will be making more money by then.
- nosaj0
My account told me one of the best investments you can make is to buy the most expensive house you can and pay it off over the longest period of time possible. I haven't given this advice enough thought yet...
- vwsung18t0
i talked to a real estate agent awhile ago and i showed zillow to him and he said that most of the prices are inflated. very few houses actually sell for what zillow says it's worth. his clients get mad that they can't sell for as much as zillow says. the house i was looking at was 75k more on zillow than on mls website.
- vwsung18t0
i hear that a lot too nosaj. low down payment actually works for you too unless you plan on living in that house forever.
- nosaj0
Plus (in Canada) if it's your primary residence there are no Capital Gains when you go to sell. 100% of the profit goes to you. Since there is no tax, making $40,000 on resale is like making $65,000+ more in salary over that same period of time.
- tkmeister0
yeah, zillow is slightly inflated. you should check with a bank to see what they will require to get your loan approved. so you have a clear picture of what you can afford.
i am not sure you can qualify for loan if you'll be paying 63% of your monthly paycheck.