Okay so here we are in '08 and i'm going to be moving out on my own!!!! Yeah!!!!

So I've been seriously thinking (for like all of '07) to go the buying/owning route...most preferably a townhouse since it will be just myself moving and I think that they are really cute for single people. It's like having an apartment that you are actually owning. The only thing is that i'm scared to death about owning, especially with all these foreclosure rates climbing up high. I don't want to move out only to have to foreclose because I got something I can't afford and have to end up moving right back home.

But the flip side to that are those darn Homeowner's Association fees you must pay that will take care of the "maintanence free" lawn around your area...and then you can hear the people next door. Not to mention the down payment and closing cost funds, as well as fees for an agent (if I decide to use one). And also if I want to have a gathering with friends and family, where will they park?

As for a house, if I were to get one, i'd only get like a nice size rancher house with like 3 bedrooms, a kitchen, a den, and living room. Maybe a garage but it's not a necessity. And no homeowner's association fees are needed. Plus if i have a party everyone will have somewhere to park.

The flip side to this is that again the down payment and closing costs along with an agent fee if I use one.

And as far as the apartment goes, I wouldn't have to worry about a down payment or closing costs, and I would be able to pay for my furniture in full, so no furniture bill will exist which would be perfect.

But with an apartment your money is going to the landlord and is basically being wasted. Plus you will be able to hear people upstairs, downstairs or beside you. And you aren't owning anything.

So which route should I go as a single professional????

House.

House

or a condo that you own and can resell in an up-and-coming part of town.



The housing crisis will not last forever, which means, you'll start to recoup ROI in the next few years.


If you own a home for 5 years, it will make you so much money compared to throwing rent away on an apartment for 5 years.


My house was bought in 2001. The price has more than doubled, even with the housing slump and prices falling. That means that I've gotten 100% return on investment. There aren't many stocks out there that can offer you that so predictably.

Townhouse. You can always sell it later.

If I could afford to own I would. I simply can't in the places I'm wiling to live.
If you can afford it, do not pay rent!!
Look for free or low-cost home buying seminars at a local community college. They can usually offer great advice and answer all the questions you have.

CarrieMpls said:

Glad you said that because I was inquiring about attending a free homeowner's class that my state housing and development department is offering this month. I just have to call to register and keep that day open for the class. I'm going to start writing down some questions that I have that will help ease my fear of owning.

I say house if you can afford it

I swore off apartment living many moons ago, for many reasons, but part of it was because I could no longer tolerate living below, above or next to inconsiderate, selfish bastards.

violator said:

Hmm well thanks for the insight.

Foreclosure is not a serious concern as long as you make sure you a) don't buy more house than you can afford or b) do some kind of funky "interest only" mortgage (which is generally how people buy more house than they can afford). Make sure the home values are relatively stable where you live (ie, that there's no real estate "bubble") and don't buy unless you plan to live there for awhile. You want to make sure you have time to build some equity before selling or refinancing.

I live in a townhouse condo and rarely have issues with noise. But that's because my place was actually built as a condo, rather than as a rental property that was later converted. This can make a huge difference. Builders will often add features like extra soundproofing when they know people are buying, rather than renting. In other words: don't buy a conversion property if you can help it.

Don't be lured in by a super-duper low condo fee. Sellers often advertise low initial fees to spur sales. Later, when the units are sold and the management is turned over to a condo board, the board finds that the fees being collected are insufficient to actually maintain the property -- and is forced to raise the dues, often dramatically. (Trust me -- as a former condo board president, I know whenceof I speak on this.)

Yeah, the fees are a pain, but at least the maintenance of your home is covered. (Unless the board decides to undertake additional projects, in which case there may be an assessment. Research this -- find out if they've assessed in the past, and how often. Your lender should be all over this, as well.)

If you opt to buy a house, you need to make sure you can save enough on your own to cover maintenance and improvements -- or buy things like lawnmowers or snowblowers. Cuz you're on your own for everything.

If your employment is stable and you plan to stay where you are for awhile, ownership is definitely the way to go. Nothing is a better investment over the long term than a home. And unlike a 401K (which you should also have), you can actually live in it while it increases in value.

I am currently waiting for a move in date for my own flat.
I am a little scared of being on my own for the first time in years but it will be mine, all mine. No more landlord and I can decorate how I like.
It's not in the greatest area but I know I'm not there forever, time flies and hopefully I will slowly be able to climb that ladder.

Go for it, you'll be pleased you did

House is the best investment but it's the most work. Apartment is zero investment, but it's the least work.

I have a condo, which is expensive compared to an apartment, cheaper than a house, and doesn't require me to install a new roof. But it won't go up in value like a house.

violator said:

A-men to that! I live in a condo that I own, BUT at one time they were apartments. I have a bitch who lives below me who is mean and bitches about EVERYTHING and seems to think it is her business to boss everybody around. I also share a wall with the lady next to me, but she is very nice. Plus there are people directly across the hall from me.

I DEFINITELY recommend a house, hands down. If I had it to do all over again, I would have bought a house. Sure, it's a lot work, but it's so nice to have your own back yard, your own four walls, and to not have to share with an idiot or two.

Thanks for all of the advice everybody, keep'em coming!!!!

violator said:

nothing like smelling other peoples cooking

I lived in an Apartment, I lived in a House. Never a townhouse. I guess I never thought about a townhouse. But I don't really care either way, just as long as theres a roof over my head in an liveable envoirment. You know?
[Edited 1/3/08 21:24pm]

Genesia said:

well I have a question for you....why are townhouses so much more expensive than a regular house? I have been trying to figure that out for the longest. I would love a townhouse, but they are so darn expensive.

Rent a House until you're ready for your own home. You don't have to deal with the apartment/condo/townhouse problems of everyone above/next or below you, plus you get all the perks of renting, no repairs, maintenance taken care of by landlord, etc. We're renting a house right now, until the market looks a little better. Much more privacy, just gotta do the yard work, but love the cookouts!

I am almost 49 years old. I've owned my own home since I was 24. And then, just yesterday, I read this:

"A home is not an investment, it is a necessity."

That struck me like a ton of bricks.

My 25 years of home ownership has shown me that statement is exactly correct. If you can afford a home, that is nice. But you can do just as well financially, if not better, if you rent and invest the savings intelligently.

So, my advice is do what makes you happy inside. And I never thought I'd say this, but you do not have to ultimately own a home to have financial security.

yes, I agree with Qestionofu rent until you're ready to buy or see if you can do an option to buy which is even better. Most folks don't factor in up keep and home maintenance when they purchase a home. Especially if you find yourself having to replace a big ticket item like the central air unit or even window units... it's not cheap.

missfee said:

They certainly needn't be -- and they aren't in the city I live in.

It's all about location and amenities. If you're looking in a neighborhood where the condos are more expensive, it's probably a more fashionable area or the condos in question come with additional amenities (heated parking, a pool or clubhouse, that kind of thing).

Make sure you're doing an apples to apples comparison.