Author Topic: Am I losing out by not buying a house (means to yet no idea where I want to live  (Read 703 times)

zoochadookdook

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Hi all,

I moved right before Covid last year. Sold my house where I'd been 4 years (grew up in the area for 20 prior) and moved accross the country for work. Since then I've had a hard time feeling like anywhere is "home" per se. My family is back where I came from and I go visit most holidays.

I'm already up on my first year apartment lease and am currently relocating. It drives me crazy I can't get a reasonably sized kitchen/such under 1200. I'm wondering if it wouldn't be a bad idea to kill 2 birds with one stone: buy a multifamily or multi unit home (duplex etc) and live in a unit at least temporarily which renting out the others. Obviously home prices are high right now but with the mortgage rates so low and the city I'm in being so aggressive on growth it seems like a good long term hold. This would also give me the positives of home ownership (larger living space, rental property etc) whilst allotting for flexibility should work require me to move/I ever move back to my original home.

My financial situations:

28/single for tax purposes

300k in a taxable brokerage (really hit it well in the stock market buying in at march last year with my old homes equity)

50k in a roth ira

10k liquid

65k income (around 4k take home after hsa contribution/plan)

No debt

Living expenses are:

1100 rent/internet/utilites

gas/insurance $150

food: 300

entertainment: 200

other (random bills seem to pop):150

ira contribution 500



Any insight into this? I'm especially interested in exploring how much is considered smart to leverage when it comes to potential rental real estate. I listen to Dave Ramsey a lot and he's a big proprietor of paying cash for a home - but that's a primary residence long term I believe.



Any resources/advice/ect appreciated.

waltworks

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If you can buy such a place for a reasonable price, sure. If not, no.

-W

ysette9

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It seems you have two things going on: the desire for a nicer personal living situation and the desire for a rental property. Often times those are competing interests. If you want something nicer then it is ok to just rent something nicer if you can afford it. If you want to get into real estate investing then it is important to really educate yourself on the numbers and make sure you are making the decision to buy or not based on cold, hard math. It is easy to get influenced by aesthetics and how you would like living in a space, but donít let that allow you to buy something where the numbers donít add up.

Do you intend to stay at this job or at least in this area for at least the next five years?

The White Coat Investor always says to buy when your personal and financial lives are stable. Is that where you are now?

Malcat

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Based on what you went through and how much life change you have experienced, I wouldn't recommend buying at this point.

I think you should focus on building your best and happiest life, staying flexible, and then when you know how you want your future to look in your new city, consider settling down somewhere that will suit that life for you.

As you said, you made a major move right before covid, you don't even know what living there is really like yet.

zoochadookdook

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Based on what you went through and how much life change you have experienced, I wouldn't recommend buying at this point.

I think you should focus on building your best and happiest life, staying flexible, and then when you know how you want your future to look in your new city, consider settling down somewhere that will suit that life for you.

As you said, you made a major move right before covid, you don't even know what living there is really like yet.

Yeah soooooo

My current apartment/car got shot up in between thanksgiving and christmas. Something like 56 shots fired into my garage (it's a nice area - literally everyone has told me it's a fluke) and I don't want to move again directly so I've just signed another 7 months. I made a youtube video if you feel like seeing the scenario. Either way I've had a bit of a continued crazy 2020.

Lifewise it's a separate focus. I'm going through the motions but the move precovid by a month or 2 has made it a bit difficult. That being said I like business projects to keep me busy. Aside from my 9-5 i've thrown myself into opening a catering business - I have trouble not entering into real estate though as the risk in my taxable brokerage is enough to make one sick. Real estate here is EXPENSIVE - but hey with rates as low as they are - I hate that looking in from the sidelines mentality.

zoochadookdook

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It seems you have two things going on: the desire for a nicer personal living situation and the desire for a rental property. Often times those are competing interests. If you want something nicer then it is ok to just rent something nicer if you can afford it. If you want to get into real estate investing then it is important to really educate yourself on the numbers and make sure you are making the decision to buy or not based on cold, hard math. It is easy to get influenced by aesthetics and how you would like living in a space, but donít let that allow you to buy something where the numbers donít add up.

Do you intend to stay at this job or at least in this area for at least the next five years?

The White Coat Investor always says to buy when your personal and financial lives are stable. Is that where you are now?

I'm trying to differentiate this to be a investment property and not a single family/thought of my actual settling down in an area.

In this case I could advantage it as a residence/rental taxwise in purchasing/depreciating/renting and using it as a living space while I'm here/keep it should I relocate.

I decided yesterday to renew my lease here for the next 7 months - I couldn't find what I have in a similar pricing and I didn't want to pay another 200-400+ a month for a "luxury" unit somewhere else (tack on the time/cost of moving/admin and application fees ect). The floor plan and kitchen and such aren't ideal but i'll be converting the attached garage into more kitchen prep space.  I can absolutely put the nicer personal living space on hold and just segregate it to a potential standalone investment. I was thinking if I reside in one of the units there were extra advantages vs a standalone as well but I have plenty of time to read up on that I suppose.