OT - Buying a House

[ctchamps]

So to clear some stuff up. I want to decide what’s the better call for the next 5-ish years.

Buying a single family home?

Buying a condo?

Wait a year, rent, and see what the new tax implications do to the market? At the expense of the growing interest rate?

Renting?

Selling my Audi?

I’m trying to make good financial decisions now, so that in 5 years I can buy a house that I really want to live in.

Put some money on UConn at 350:1.

 

[polycom]

The only reason to rent a house is if you are unsure you are staying in the area (read: state) for more than a year or two. The rent will be almost as much as a mortgage and for a couple couple more you can build equity.

This math doesn't add up. When you rent all you have is rent, when you own you have to factor in mortgage, taxes, upkeep, maintenance

 

[Husky25]

what does the actual monthly number look like when you factor in all the costs you have to do for maintenance and upkeep though?

I think it's a bigger difference than most think it is.

Maintenance and upkeep costs are largely passed through to the renter already.

 

[Husky25]

This math doesn't add up. When you rent all you have is rent, when you own you have to factor in mortgage, taxes, upkeep, maintenance

Can't build equity when you rent. Long-term, your balance sheet is more important than your income statement.

 

[polycom]

Can't build equity when you rent. Long-term, your balance sheet is more important than your income statement.

You said "a year or two"

 

[uconndogs]

Buying in down markets can be a real opportunity. Of course, there is a difference between down and diving. I would think that real estate in Connecticut in areas with good sustainability (schools, employment options, infrastructure, etc.) might very well turn out to be a good investment if you have a 10 year investment horizon.

 

[Waquoit]

Can't build equity when you rent. Long-term, your balance sheet is more important than your income statement.

Invest the difference?

 

[Husky25]

You said "a year or two"

Yes. IMO, if one is reasonably sure they will be making another major move within a year or two, mobility is worth far more. Selling a house is arduous and expensive. Even at a rock bottom interest rate, the built up equity after 24 months wouldn't cover half the realtor commission, all other things being equal.

 

[Husky25]

Invest the difference?

Read the post above the one you quoted.

 

[whaler11]

If you buy a house in Connecticut you are buying a share of the state retiree debacle.

When the music stops, you hold the bag.

Whatever hypothetical equity is wishcasted has that anchor tied to it.

 

[huskiesnyc]

@CTBasketball If I were you I would definitely reach out to @GemParty and he’ll give you some good recommendations. He is a wealth of knowledge and has a real estate network all over the US (and beyond I think). He will be able to match your wish list with a strong agent in the local areas you want to live. I live in Brooklyn and he helped me buy an investment property in CT in 2015. It was the exact type of investment I was looking for at the time and so far it couldn’t have gone any smoother. He’s my go to real estate guy for any future purchases and I def recommend you drop him a note.

PS- @GemParty loves his Huskies, too

 

[SubbaBub]

Are you a hedge fund guy or a self employed genius?

Either way, teach me your ways.

Work hard, find something you are good at that other people businesses will pay you to do, get a little lucky, and pay yourself first and you will eventually get there. My monthly nut includes minimum savings based on retirement goals and emergency fund. Though to be honest they are one in the same at this point in my life. Younger me would keep it in the event of job change or absorb another major expense without resorting to debt. Now it just goes to the investment account, even though I still have the auto transfer set up all these years later. I earn enough now to not worry about that stuff but it took more than a few years to get there.

 

[SubbaBub]

If you buy a house in Connecticut you are buying a share of the state retiree debacle.

When the music stops, you hold the bag.

Whatever hypothetical equity is wishcasted has that anchor tied to it.

This is not wrong. CT will have to raise taxes to cover these costs unless they want to end up like Kansas but I've said it before there are few places where it is better to earn a living, even if you have a regular job.

If you can't hack it, then leave. There are still too many people living here.

 

[whaler11]

This is not wrong. CT will have to raise taxes to cover these costs unless they want to end up like Kansas but I've said it before there are few places where it is better to earn a living, even if you have a regular job.

If you can't hack it, then leave. There are still too many people living here.

Obviously if your income supports it and you can’t carry the income elsewhere it’s a different equation.

But if that’s the case just pick where you want to live.

 

[SubbaBub]

Obviously if your income supports it and you can’t carry the income elsewhere it’s a different equation.

But if that’s the case just pick where you want to live.

It a friendly reminder to all who visit a UConn board, whine how horrible CT is, and extoll the virtues of places with far lower standards of living like South Carolina.

 

[the Q]

Work hard, find something you are good at that other people businesses will pay you to do, get a little lucky, and pay yourself first and you will eventually get there. My monthly nut includes minimum savings based on retirement goals and emergency fund. Though to be honest they are one in the same at this point in my life. Younger me would keep it in the event of job change or absorb another major expense without resorting to debt. Now it just goes to the investment account, even though I still have the auto transfer set up all these years later. I earn enough now to not worry about that stuff but it took more than a few years to get there.

I'm just asking cause you're talking about (assuming at least a 1k difference between your 2 numbers in the previously quoted post) 180k per year. And I'm assuming that's after taxes since we are talking about living expenses.

 

[SubbaBub]

I'm just asking cause you're talking about (assuming at least a 1k difference between your 2 numbers in the previously quoted post) 180k per year. And I'm assuming that's after taxes since we are talking about living expenses.

That's what comes out of the bank, so yes it is after taxes and no it isn't a 1k buffer. That is what most people get wrong. Even you pay yourself first so your savings is funded, a 1k surplus above basic needs will not work out long term. It's still better then 80% of the people but expenses do vary. If you are cutting it that close at least use your fully loaded expense number. Otherwise you will be eating into your savings too often.


Somebody referenced FIRE earlier, that is a trendy millennial term for Financial Independence and Retire Early. It usually requires a hard leash on spending and saving close to 50% of your take home. It's a bit extreme in my view but if you can live like that, more power to you. There are countless blogs about it.

It used to be called living within your means or the millionaire next door.

And yes, I climbed the income ladder out of debt but even as a youngster, I tried to avoid debt wherever possible.

Even when I was broke I tried like heck to not carry balances or over borrow.

 

[superjohn]

It a friendly reminder to all who visit a UConn board, whine how horrible CT is, and extoll the virtues of places with far lower standards of living like South Carolina.

Connecticut is a great place for raising a family if you make a lot of money and a great place to leave when your kids are on their own and you retire.

 

[Whtdmd]

In CT. I want to stay under $250 because I want this to be more of a starter home...taxes scare me.

So far I’ve been looking in Newington, West Hartford, Southington, Farmingtom, and Berlin. Wanna stay close but the market has been dry.

Does anyone live in Wolcott, Plainville, Meriden, or Bristol? What’s it like there I may expand my search by a few more towns.

I actually live in Windsor before moving to WHartford. For your price, Windsor is a good deal. Okay school system, safe streets, very diverse and all the houses are occupied. My daughter has swim meets at Loomis Chafee. The sports in the Windsor area are top notch. Very active local community

 

[Fishy]

How does this turn into an 11-page thread?

Find a house you like that you can afford and buy it.

 

[superjohn]

How does this turn into an 11-page thread?

Find a house you like that you can afford and buy it.

It's the boneryard, you can only talk so much about pizza.

 

[sledog]

If you buy a house in Connecticut you are buying a share of the state retiree debacle.

When the music stops, you hold the bag.

Whatever hypothetical equity is wishcasted has that anchor tied to it.

Similar in NJ. Interestingly, the head of state senate, a Dem, today called the new gov, a Dem, a nut job in that the state couldn't afford all his new programs. The new gov is a former Goldie guy, and should know better. What's that tell you??? As I've said befor, NJ and CT (according to news) are in a race to the bottom - stay tuned - and get out while u can.

 

[MattMang23]

How does this turn into an 11-page thread?

Find a house you like that you can afford and buy it.

Would you rather no one came to this site to post? Don't answer that question...

 

[Fishy]

Would you rather no one came to this site to post? Don't answer that question...

You should all just come here to silently and passively read my posts.

All the other posts just get in the way.

 

[Hoophound]

As an old person I feel some responsibility to your generation.

Buying a house in Connecticut in 2018 comes with a negative expected value.

Unless you’ve got a spouse and kids combined with two solid well paying jobs do not invest in a house in Connecticut.

If you’ve got a spouse and children buy in a top 15 school system, that will limit your losses and you’ll get some ROI from the schools.

If you aren’t married and aren’t making incredible money get the hell out of here.

There will be a time when the market in CT comes back. I think most young people would be wise to wait for signs of life in the CT economy before buying a house. We are near the end of this economic cycle (a good cycle even though Ct isn’t seeing the prosperity). During the next recession, the CT market should get even worse. That will be the time to buy. I am hopeful that as CT continues to work through the economic messes that face it, there will be light at the end of the tunnel in 4-7 years. For now, I think this kid should rent. There is just no benefit to buying a house in CT that you don’t want to live in for many years.

If I was buying in the 250k range up there I’d look for an updated , older farmhouse or cottage type home 0n 1 or more acres in a place like Ellington, Somers, Suffield, Portland, East Hampton, Marlborough, East Granby/Granby, Barkhamsted etc. Those houses will always have some appeal for the land and character. I’d plan on enjoying my house and land but not the bar and restaurant scene in town. You’d have to drive 15-20 minutes for a lot of options but each town usually has a few spots for drinks/food and watching a game. Build a firepit, join a softball league, play in the town men’s basketball league, golf, fish etc. If you make it big, all of those towns have beautiful, more expensive homes to upgrade to.

Otherwise, rent and live where the action is. Do not buy an ugly shoe box in an ugly town. That’s how a lifetime of living in an ugly shoebox in an ugly town begins.