Life advice (buying a house)

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Hello all need some advice. I am currently 22 yesrs old and just started making 17$ an hr at my new job. Anyways im looking at buying a house in Russell MA for 98k. My question is can i buy the house and have somewhat of a life aswell? I know some people have houses but have no life due to having no money/ not budgeting right. I have a good amount saved up but would like to save up a bit more. I am in no rush to buy i am just at a point in my life where i have my car a motorcycle, tons of tools and id like to have my own space. Also when moving how doses the gun laws work. Currently on a restricted ltc for hunting and targetting. Im pretty sure Russell is alot more lax then springfield is. Any advice would be appreciated
 
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Mortgage, insurance, property tax, water, electricity, heat if not electric, maintenance and repairs, food, car insurance, gas for car, cell phone. Can you cover all those? If not the answer is no. Notice how there isn’t any cable or internet. Those aren’t necessities.
 

Al458

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First find a mortgage calculator (The Absolute Best Online Mortgage Calculator) to play around with numbers to give you an idea of what your mortgage would look like. Like others said theres not much to go on. Could someone afford a 100 grand house on 17 an hr, sure they could, but ones lifestyle could easily make that impossible. Buying a house is one of the biggest decisions you will make in your life and it could go really well or could end up really bad if your not careful, there will always be houses to buy so just make sure you go over every detail to make sure you arent hurting yourself and dont rush it, if it doesnt make sense now, keep looking and keep saving and you will get there
 

mwalsh9152

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I applaud you for wanting to make that step, but as has been said, we need more info. First, what do you have to put down? Then work a mortgage calculator and see what your mortgage will cost you. Then factor in all utilities and taxes. See if that leaves you with enough to live comfortably on.

If you feel it doesn't, set yourself on a strict budget and put away as much money as you can.
 

mikelawtown

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A buddy of mine‘s kid just bought a house at 22 he paid 200,000 in his mortgage is 1200 a month 98,000 I would think that’s pretty doable
Just think 98,000 mortgage is cheaper than rent when you’re ready to move out
 

FPrice

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Another thing to consider is whether you are prepared to stay in one place long enough for a house purchase to be worth it.

At 22 you still have a lot of life, and life changes ahead of you.

Are you in a location where you will be happy for a number of years? Are you secure enough in your job to do it?

LOTS of questions to ask yourself and provide some real answers.
 
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You're basically making ~$35k and probably paying $5k in taxes (really rough math here). That's $2500/mo after tax. About $2200/yr in property taxes, that's $185/mo. Heat, electric, and hot water - let's call that $115/mo. Let's say no down payment, 30yr fixed @ 4.75% with no PMI = $511/mo. Let's say insurance is $89/mo tomake the math easy.

Right there you're down to $1600/mo. Then subtract gas for your car ($200/mo), groceries ($200/mo), car insurance ($100/mo)... I'd suggest you start thinking about retirement as early as possible, maybe $100/mo you put away? That leaves you with $1000/mo for yourself, which isn't really as much as it sounds - go out with some buddies, drop $100; car needs a new starter, drop $150; various shit adds up quickly.

I'd say it's possible but would require patience and self-discipline. Also, don't go solely with my random numbers here - do the math on your own.
 

pastera

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Like kalash posted, it will change your lifestyle. $17/hr is not one income home owner territory unless you are very disciplined.
Write out a complete budget and document every penny you spend for a month down to a pack of gum.
Once that is done, sit down and run the numbers being realistic about what you are willing to give up.
You will also need to be meticulous on pre-offer inspecting a home - you won't be able to dump 20k into the place for repair and a 98k home is going to need some TLC.
 

VetteGirlMA

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One of my neighbors kids moved out and bought their own home in Palmer and they probably make the same amount that you do and about the same age and he seems to be doing well. It's really what matters to you. If you can swing it more power to you. Think of it this way. If you buy that house now and live in it until it's paid off and continuously improve it over the years, then by age 52 you will own it outright and have a house that is worth more than what you paid for it. You would have 13 years without a mortgage before retirement. That's a pretty huge carrot dangling out there. But as others have pointed out some home repairs can easily cost hundreds if not thousands so you need to balance what's important. I know people who live for their homes. They live in beautiful homes, but that's about it. The insides are pretty empty. Some people choose more modest homes but end up doing more things in life. A 98k home is not a budget buster though and there are plenty of first time home buyer programs out there. Good luck in whatever way you decide.

PS: If it's any consolation here is a small regret story from me. Many years ago when I was about your age, but out of college I came across a piece of land for sale in Rhode Island. It was across the street from the beach with beach access but the property had no certifications and when I inquired I was told it would take years to build on the land. That piece of land was being offered for $6500. That was the price for living across the street from the beach. I passed on it because of all of the soil testing and other requirements. It would be years before I could do anything. Instead I bought myself a Lotus sports car. I drove around in that and now years later that car is long gone, who knows where it is, but the property is still there only today it has a house on it. So someone bought that land and was willing to be patient. The only consolation is that years later I did manage to buy a beach front home.
 

atmay

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17/hr is going to be tough, even at a price as low as $98k.

I spent $85k on my house, and didn’t do so until I was making $28/hr or so.

Don’t forget that buying isn’t like renting - the upfront costs aren’t just first, last, and security.

With a tiny ( i.e. 3%) down payment, you’re probably still looking at ~$10k cash outlay at closing.
 

Roland Deschain

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I think it's doable. You just need to sit down and run the numbers, .I bought a three family when I was 23, and it set me up very well. You'll have to make some sacrifices, but you can easily live in it for 5 years, and then when you are more financially stable, move out and rent it out, and make your next move. At that price, I think it will be cheaper than renting... Just making sure that you got a quality home inspection, and there are no major issues with the house.
 

Rockrivr1

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Ask yourself how good are you at budgeting your money. If the answer is not very good, then you'll need to step up your game in this area significantly. Buying a house comes with a lot of commitments, and at times, unexpected expenses. To me I'd say do it if you can swing all of your bills. Nothing feels better then coming home to your own house with nobody telling you what you can and can't do. Good luck in your decision.
 

42!

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I've always pushed my housing costs just a little. It was always doable, but it left little room for fun and saving for retirement (which you can't start too early). When you're young you have a tendency not to see the reality of the long term. Then I had a few years where I changed jobs twice, with some unemployment in between. I kept my head above water but it was not fun and it will have a long term impact. The surprises are what will get you.

My point is that stuff happens and the closer you are to the line the harder it will be to weather the storm. You've got lots of time to buy a house, save up and buy when you can do it without draining you savings, and your income is enough to pay the unexpected bills.

kalash, where do you get a 30yr fixed with nothing down and no PMI? seriously, I want to know.

Also, I've heard it said that you should have 6 months living expenses (including housing) saved up. I think it should be a year.
 
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If you can make some overtime as well, you should definitely take the overtime and buy the house at under $100k. Not only will you have your own space, it will appreciate in value and the money you put into it will be as sound an investment as anything else you can do. Russell is near enough a steady economic engine - Westfield State- and Springfield.
 
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The trick for you is to remain objective. Not easy to do. You will be house poor. Based on my semi informed number crunching, of your sitch. It is doable, and you will be broke.
 

zboys

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Its def doable, its all about discipline and responsibility.
Talk to a local bank vs. a mortgage co. A mortgage co. wont care about feeding yourself after paying the mortgage, a good banker will ask those questions and keep it real.
 
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This is largely dependent on your own level of responsibility. Take an honest assessment of your estimated bills for EVERYTHING you will NEED to pay. DO NOT base your income on anything but the hours you're guaranteed to get, OT is not always going to be there. When OT is there, SAVE! Things can go sideways quickly and you should have money saved just in case. I see it in people at my work who get themselves into a mountain of debt for their toys or to keep up with the joneses then OT goes away and you know they'really nit doing very well. F the joneses, they're not paying your bills. SIDE NOTE: STAY AS DEBT FREE AS POSSIBLE.
 
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Hello all need some advice. I am currently 22 yesrs old and just started making 17$ an hr at my new job. Anyways im looking at buying a house in Russell MA for 98k. My question is can i buy the house and have somewhat of a life aswell? I know some people have houses but have no life due to having no money/ not budgeting right. I have a good amount saved up but would like to save up a bit more. I am in no rush to buy i am just at a point in my life where i have my car a motorcycle, tons of tools and id like to have my own space. Also when moving how doses the gun laws work. Currently on a restricted ltc for hunting and targetting. Im pretty sure Russell is alot more lax then springfield is. Any advice would be appreciated
When I was 22 years old $17 per hour would have been like a million bucks to me, but times have changed. That $17 bucks an hour after taxes and health insurance isn't going to be $17 per hour. So, when all is said and done you could be looking at $12 bucks an hour or even less. With a mortgage, property taxes, homeowners insurance, heat and electric to name just some of your expense. And of course there's the house itself. Any homeowner will tell you unless your home is brand new you can run into some expensive problems, plumbing, electrical, oil or gas burner. A buddy of mine bought a home many years ago, a home that passed inspection with flying colors. Less that a year later the oil burner died, shortly after that the roof began to leak. After spending several thousand dollars and suffering major financial problems, he still doesn't have two nickels to rub together. My advice to you is to wait. Hey ! Who knows ? Maybe you'll meet someone, now you have two incomes. Just in case you were wondering, I am an old guy, so I have pretty much seen it all.
 

Rob Boudrie

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Also when moving how doses the gun laws work.
For ways to get an upgrade:
1. Wait for the LTC to expire and re-apply in your new town
2. Convince the issuing authority of your existing LTC to upgrade
3. Convince the issuing authority of your existing LTC to expire it early so you can apply in new town
4. Get a court order (yeah, right..... not likely since the first circus rules the 2A does not apply outside the home)
 

xtry51

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A lot of good advice here. Personally I think the location long term is a big factor. It's not that you can't sell a house and move, it's that buying and selling a house is not devoid of it's own costs and time. You get to pick the date you buy a house. You don't get to pick a date to sell it. The buyers do that and you're at the mercy of a market that doesn't exist yet.

Being young you need to really decide if you're responsible enough to keep a house and realize the burden doesn't disappear if you lose your job or some other life event happens. Are you capable of saving money? Given your age is this where you want to be for at least 5 years?
 
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snax

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Wait until next year. The next RE bloodbath like 08-09 is coming. You may get that 98K house for 85.
Better yet, condos usually drop hard and fast. You may be able to get a 130K condo for 85, and in 5-7 years sell it an turn a small profit, at that point, you may be married and the wife would be nagging you to move into a house so she can pop out a few babies.
 

Jason Flare

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Step 1:

Starting immediately keep a piece of paper and a pencil with you and write down the amount of every expenditure throughout the day.

If you buy a coffee at Cumby’s write down $1.00 for coffee. (Or whatever the amount is.)

If you buy a lock washer at a hardware store and it’s $00.15, write it down.

Know where every penny of your money is going.

OP, it’s great to see you asking these questions.
 

Mark from MA

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Hello all need some advice. I am currently 22 yesrs old and just started making 17$ an hr at my new job. Anyways im looking at buying a house in Russell MA for 98k. My question is can i buy the house and have somewhat of a life aswell? I know some people have houses but have no life due to having no money/ not budgeting right. I have a good amount saved up but would like to save up a bit more. I am in no rush to buy i am just at a point in my life where i have my car a motorcycle, tons of tools and id like to have my own space. Also when moving how doses the gun laws work. Currently on a restricted ltc for hunting and targetting. Im pretty sure Russell is alot more lax then springfield is. Any advice would be appreciated
Life advice. Don't live in MA. Or the Northeast for that matter. Had I left MA 20 years ago and bought real estate, I would have gotten a lot more for my money, odds are my property would be valued way higher, and overall, I would have paid a lot less taxes.

If I had to do it all over again, I would have moved South or West. Those regions have the greatest growth prospects in the future and odds are your real estate purchase will gain in value. In Russell, MA....it will likely stay very flat. or negative. Flee this state while you are young and unencumbered.

When buying a house your tax levy gets more considerable, for the house your looking at, it may not be alot right now...say 2K, but in 10 years that will be 4K, no matter how the real estate market does.....consider that on average taxes in the southern states depending on where you live are about 1/3 to 1/2 of MA taxes. So in ten years you'll be paying what you are paying in MA today. The average real estate prices are lower as well.

Many will tell you that the pay is less....that depends where you live down south as well, a lot of people down there are doing very well, and economy is booming and income is on the rise. And that restricted LTC...throw it in the trash...all you need is a drivers license or state ID to own a gun, and many states are open carry or must issue.
 

drgrant

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A ton of advice here is good, also one more thing... that "play money" you spoke of earlier? You're going to need to kiss some of that goodbye up front every paycheck in a savings account to at least have a few grand floating around for what I call "house bullshit emergencies. " Leak in your roof in the middle of winter? Pipe fails? Furnace/heat etc fails? etc, etc, ad nauseam. There's no landlord to call and bitch at when something like that happens, because now you are the
landlord.
If things are in good order you can be lulled into a false sense of security, too, but it's good to have a cushion there.

Also plan on staying away from leechy broads and producing children for awhile. Either of those will pretty much wreck everything financially.

-Mike
 

Mark from MA

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Wait until next year. The next RE bloodbath like 08-09 is coming. You may get that 98K house for 85.
Better yet, condos usually drop hard and fast. You may be able to get a 130K condo for 85, and in 5-7 years sell it an turn a small profit, at that point, you may be married and the wife would be nagging you to move into a house so she can pop out a few babies.
Though, I'm not sure of a bloodbath...I think there will definately be a correction. Its already starting to happen.

Condo's drop hard and fast, but there are also monthly fees associated with them, along with taxes. They can be a good investment if you are willing to sit on them for 5 years.
 

Mark from MA

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A ton of advice here is good, also one more thing... that "play money" you spoke of earlier? You're going to need to kiss some of that goodbye up front every paycheck in a savings account to at least have a few grand floating around for what I call "house bullshit emergencies. " Leak in your roof in the middle of winter? Pipe fails? Furnace/heat etc fails? etc, etc, ad nauseam. There's no landlord to call and bitch at when something like that happens, because now you are the
landlord.
If things are in good order you can be lulled into a false sense of security, too, but it's good to have a cushion there.

Also plan on staying away from leechy broads and producing children for awhile. Either of those will pretty much wreck everything financially.

-Mike
100% true. If you house is move in ready you still need to figure like 1-2% of the 98k a year for basic upkeep. If you pay people consider 2-4% yearly or more.

If your house needs work, you can easily break the budget if something major F's up like a well or septic, furnace, or roof.

Also don't forget....your the one clearing snow, mowing, and landscaping (need a snowblower,mower or tractor to move shxt) All this adds up.
 
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