Peezy's Black Magic 2013

Some argue renting is cheaper than buying: http://onecentatatime.com/should-i-buy-or-should-i-rent-a-calculated-approach/

The logic is something like you can save the extra money per month that comes with home ownership, and buy a bunch of gold or something, then in 15-30 years you will have made more money in your pocket than if you actually bought a house.

Of course, you have to be very strict with saving your money and this probably doesn't work for everyone's lifestyle as well as it being very variable on housing market conditions over 30yrs vs some other investment, or if the government decides to confiscate all your gold or the investments you have made go down the tubes .. but then you can make the argument that same thing can happen with home ownership if you buy at the wrong time - many people found this out first hand when the housing market crashed.

In a nutshell, some people don't have problems renting for their whole life and find it more convenient.
 
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With the way real estate is, the cost of renting, etc. my suggestion is squatting.

There's some prime real estate out there that's not being utilized, and at a great price. Free!

My other advise is to move yearly from one tourist destination to another. My couch demands still stand either way.

-Steve
 
Warning: more unsolicited advice ahead.

I could bore you to death with the tax implications of buying vs renting... What adding $100 a month to a mortgage payment monthly does in the long run... But I won't. Buying usually helps your effective tax rate. Renting usually hurts it.

The cost of living index is a tricky thing. It's a nice tool to compare areas, but I would take it with a grain of salt.

Mandi nailed it. Trailer park people are brilliant. And they go round the outside round the outside round the outside.
 
This thread is relevant to my interests. Kayla and I are hoping to buy sometime soon. We are hoping we can pull something off in a 12-18 month time frame, but we will have to see how things play out. Housing prices are indeed no joke in NJ.

I've been reading and researching for months and some of the points vlkslvr and others bring up are on point. The up front costs are daunting, but the earnings potential in the NYC area are hard to beat. No one can tell you what it is right for you guys, but do make sure you are happy with the area. The price of housing doesn't matter if you aren't going to be happy there.
 
mandi said:
Anyway, I learned all about that in school and you are not able to make profit on your house when you sell it (it's like the smallest percentage ever that basically equates to nothing.) So it's great if you want to live there forever... but that never usually happens.
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When I moved to NJ, I bought in the low income program since my wife didn't have a job yet and the as soon as she did, we were well over qualified for the program. While you aren't going to make a ton, it is a good first step and gave us the ability to own a place and save mula for the next home as our mortgage and taxes was 1/2 the cost of renting a similar unit. It was the only way we could have purchased something at the time and in a 2 year period we made a profit that made it worth it. Note that they are no relator fees when it is sold, so you don't take that hit like a normal house would, this is also who real estate school isn't going to favor this option. In any case, it is a shit ton of paper work and waiting and a lot of things out of your control. We lucked out and lived in Brandon Farms in Pennington, so for us it worked out.
 
Wow, I really don't know where to start. I rode my bike 33 miles, half of it on dirt, and I get no response from that; but once I mention I may move, the thread goes crazy. Glad to see some peoples reading! I love reading all the input and information you have, as I'm still a young buck and I don't know enough about real estate and stuff like that.

A Place To Call Home
We have lived on our own for 3 years in a one bedroom apartment and know we could make that work. I know I could rent forever, but I don't think that is the best option in that case. I think I used the cost of living as a bad example of moving; I agree that most of the things you will be buying will be the same price. The difference is the extra in taxes. Maybe I'm not looking into this deep enough;

House A: 2000's construction house (hell, could be new at this price), 3br, 2 bath, 2 car garage, community swimming pool:

$159,000 with taxes around $1,500

House B: Built in 1970's, ranch, windows falling apart = $200,000 with taxes around $6,500

The mortgage rate will be the same, the gasoline will be the same, but that looks like a $5,000 a year savings, Plus a house I don't have to invest into for up to 10 years. Lets not look at the $41,000 price difference in the house itself (Lets say $1,300 a year savings), is that not true?

Lets face it, I have a great job and work for a great company, but I don't have a college fund for my future kids, and I'm sure no one at my age does. We don't have 1%er jobs. I live comfortably as of now and get by just fine. I could easily find a job with the same income I currently make now anywhere else. Fact. From what I think, I could essentially make $6,300 less than I do now and live the same life I could live here in New Jersey as I could in North Carolina. I would have a nicer house and less money out of pocket to pay for it.

I've also thought about the schooling. Where we would be able to purchase a house in NJ; Franklin, Manville, New Brunswick, The schools suck. Maybe they suck in NJ and are blue ribbon somewhere else. I also think a blue ribbon school isn't going to make my future offspring a Albert Einstein while he is in Kindergarden. I would say we have at least 5-8 years to figure out school issues. At the same time, I don't want to buy a house and say "we are moving in 10 years, don't unpack your shit".

Also, We wouldn't be flying blind down south, We would have an in from a family member for possible employment. I have no doubt I could make the same amount of money down south as I do here.

I would love to reply to each response but I think it is too taxing (pun?) and I would have another 3 post blog update. We can continue the discussion though.

Okay, Bikes. Believe it or not; Mandi and I rode bikes yesterday. I hit up Mike (IRideBikes) and AL. They are about a stones throw across Old York Rd from my place, so I figured we would link up. We hit CR at 6 and ran into Glenn in the lot. One thing was standing out; Al is going to rip it. Insanely strong up and downhill on that rigid SS. Was a great group ride where everyone rode in the front at some point. Both Mandi and I had a moment of firsts, we both cleaned sections we haven't in the past. SCORE!

http://connect.garmin.com/activity/299523597

Man, my MTB doesn't climb like my road bike. I wouldn't say I got soft on the MTB, but I forgot how much of an effort CR is in climbing 😛

We chatted in the parking lot until it was dark about Blue, CX and other fun things. Found out AL was a Honda man like I was back in the day. How bout that. Talked Mike into racing Blue, I think. I think I may race too :hmmm:

I happened to have my cheeseburger socks on at Five Guys:
14DCEDD8-C268-4B81-B434-30E70E6074DB-24823-00001A31EB397DD3_zps4c7b0757.jpg
 
I like house A... If your planning on kids in the future consider schooling as well... Didn't mean to scare you but just saying
 
You make all valid points and the grass is always greener on the other side. It all comes down to what you think is the best course and what makes you happy.

However, you didn't take tax deductions of the property taxes into account as well as mortgage interest difference between the higher mortgage and lower one. In any case, it is scary as hell. I can tell you for certain, don't count on moving in 5-8 years because when the market falls out and your underwater, that becomes much less of an option.
 
stb222 said:
However, you didn't take tax deductions of the property taxes into account as well as mortgage interest difference between the higher mortgage and lower one. In any case, it is scary as hell. I can tell you for certain, don't count on moving in 5-8 years because when the market falls out and your underwater, that becomes much less of an option.
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This is what I don't know and don't understand. We plan on buying something in the next year or so.
 
pearl said:
but I don't have a college fund for my future kids, and I'm sure no one at my age does.
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HAHAHAHAHA! that made me laugh. I've been paying down my own student loans for the last ten years and have like another ten years to go until I'm off the hook.

My future kids are going to pay for their own damn college just like I did.
 
pearl said:
This is what I don't know and don't understand. We plan on buying something in the next year or so.
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Definitely look into the tax implications and make a real comparison between the overall tax burdens you will be facing. If property taxes are one of your big drivers, make sure you are doing a fair comparison. The tax code is totally biased towards married folks who own a house and have kids. One of the main arguments to buying over renting is the tax advantanges. This is one of my big motivators to buy. The kid thing can wait 😛
 
Unsolicited advice Pearl.

None of this - house - location - schools - etc matters if your earning potential is limited. I'm not saying it is. I'm just saying you can't save your way to prosperity or even comfort.

You have to throw everything you got NOW into your career. I'll be radical for a second. Forget about bikes forget about having kids or buying a house. Focus on making money. Thank me later.
 
Really good input Ilya. My mind is kinda blown, as that is really where I am right now, but never really had it laid out so concisely. Finding the patience as you work toward the payoff is the tough part. Thanks for that.

/thread jack.
 
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