need help. buy house, condo, or townhome?

nascarphenom · Jan 11, 2008

I am 24 and starting to look into building up some equity. My lease is up at the end of March for rent, and I am looking to move onto buying.

I live in Richmond Va. What are your suggestions to a young lad like myself? I am single and I work 9-8 weekdays and 9-6 on Saturday...so I think maintaining a home would be tough as hell...so my initial lean is towards townhome. Whats the norm for % down? Trying to keep a mortgage under 1100, if that sounds reasonable

Like I said, I am trying to build up equity. What would be my best ROI 3 years down the road?

I appreciate responses. More the merrier!:toast:

Ichiban · Jan 11, 2008

I should start by saying, I am no expert. I do, however, understand numbers, and if you think you will be out of your place in the next few years, I would not buy a place. You can probably rent for 500/month or less...take that extra 600 a month and invest it. I would bet that in 3 years you will have more than you would've had in equity. The first 3 years of your loan, you will barely pay off any principle at all...if you do decide to buy, i would put down the least amount possible, and once again, invest the "other" money you would have otherwise put down. Just my $.02.

Hitman26 · Jan 11, 2008

Save up until you can put at least 20% down. Then you need to either get a 30 or 15 year fixed interest rate loan (preferably 15). Then your mortgage payments can't be over a 1/4th of your monthly take home pay. All of this means you probably be looking at a home that cost quite a bit less than you were hoping for.

Follow all of these rules and you are well on your way to becoming wealthy as you get older.

RoofTop · Jan 11, 2008

Call a bank in your area and see if they have any properties that they have foreclosed on.

UoweDucks · Jan 12, 2008

nascarphenom said:
I am 24 and starting to look into building up some equity. My lease is up at the end of March for rent, and I am looking to move onto buying.

I live in Richmond Va. What are your suggestions to a young lad like myself? I am single and I work 9-8 weekdays and 9-6 on Saturday...so I think maintaining a home would be tough as hell...so my initial lean is towards townhome. Whats the norm for % down? Trying to keep a mortgage under 1100, if that sounds reasonable

Like I said, I am trying to build up equity. What would be my best ROI 3 years down the road?

I appreciate responses. More the merrier!:toast:

Town homes don't appreciate much and depending on where you live there could be an abundance of supply which means it would be tough to unload in a few years when you want to settle down a bit. Rent for now and force yourself to save like a mother. As for what to do with your savings my recommendation would be to invest it. If you are looking 3 years out for using the money then averaging into the market should work out very well for you IMO.

Good luck.

Whoson1st · Jan 12, 2008

Ichiban said:
I should start by saying, I am no expert. I do, however, understand numbers, and if you think you will be out of your place in the next few years, I would not buy a place. You can probably rent for 500/month or less...take that extra 600 a month and invest it. I would bet that in 3 years you will have more than you would've had in equity. The first 3 years of your loan, you will barely pay off any principle at all...if you do decide to buy, i would put down the least amount possible, and once again, invest the "other" money you would have otherwise put down. Just my $.02.

Rent for $500 /month? Good apt/neighboorhood? I'M MOVING TO NEBRASKA IF THIS IS WHERE YOU ARE TALKING ABOUT!