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If you haven't read the first or second part, here is the link to my second http://www.teamliquid.net/blogs/viewblog.php?id=370997 where you can also find the first one linked as well.
So, when I left off I started banking $300 dollars a week, and putting it into my savings account where it is left untouched. I have been doing this for a few months now (and some things have come up to where money has been taken out) and have saved up about $4,500 dollars.
Here are the options I've been thinking about
1. Renting an apartment:
Pros:
I can move out right away
I can move closer to work to spend less in gas
Freedom to do whatever, whenever
Cons:
The money isn't invested wisely
At the end of the lease, you have nothing to show for it
Once you are out on your own, its difficult to go back to your parents if something happens
2. Moving in with friend:
Pros:
Move out right away
Freedom to do whatever
Someone close that is in a similar situation
Cons:
Could easily get sick of friend and not be friends anymore
Privacy
Not an ideal poon palace
And my final choice - the one that I have decided to go with
3. Buying a foreclosed house
Pros:
Cheap, affordable and easy to own
The market is good for it
Privacy
Its a fucking house
Its a fucking house
Poon palace
Cons:
Huge decision
Cheap price tag usually means something is wrong with the house - needs work
A lot of pressure
To act fast on a good deal, I need to take out a loan
Some major issues that is preventing me right now from getting my own place is job stability. I'm a temp at General Motors - yes I'm full time, but at any moment - without warning, they can lay me off indefinitely. I don't like taking risks like that, but I've done the math, and am willing to accept that I will be fine if I lost my job.
Another one would be that this further cements my decision to not go to school - sure it is possible. But focusing on more that one important thing at once has never been my strong suit. But I'm working on it.
I also haven't established credit, so applying for a loan in this economy without a cosigner is impossible. I have gotten two credit cards since then, and am using them for gas and paying all but $30 on the bill. I don't want to have to ask a family member to cosign on a loan in case something happens, I lose my job, can''t find work, and then their credit is shot or they have to take up payments. However, my step dad, has agreed to cosign for me, which is really awesome. The houses that I'm looking at right now are priced between $20,000-$40,000, and typically go up for auction, so it's possible that lightning may strike and I get a house valued at $50,000 for 1/4 of the value.
I'm still living at home, and have looked at 3 houses the past week, 2 of which needed a new foundation, and the other which needed a new roof. The house that needed a new roof, also had mold damage to the point where it was almost condemned. Yes. I could have gotten that house for DIRT cheap, but I'm looking to move out on my own in the next 9 months. The updates will be a bit less frequent, I may do one about my dieting and exercising. Thanks for reading! If you have any tips, or suggestions, please let me know in a comment below!
 
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I think you should also take into consideration of finding a job in the a worst case scenario. I think the best decision if you want to go buy a house is to do the auction thing and say im only gonna buy the house at this price. which should be extremely cheap like 1/4-1/3 of the value. This way you get a house for really cheap.
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On September 24 2012 11:45 MysteryMeat1 wrote:
I think you should also take into consideration of finding a job in the a worst case scenario. I think the best decision if you want to go buy a house is to do the auction thing and say im only gonna buy the house at this price. which should be extremely cheap like 1/4-1/3 of the value. This way you get a house for really cheap.
Exactly, I'm quite good at math and numbers, and have read a few books on real estate investing - not saying I'm an expert, but I consider myself somewhat informed on how to raise the value of a property without putting too much into it. Finishing the basement, redoing the roof.
If the worst case scenario does come, at the very least, I can rent out the house for $800-1200/month which more than pays for the mortgage. My mortgage payment would be about $300/month - or $600/month when you factor in insurance and property taxes. I can pay that easily. So, I've done my risk analysis, and I believe that this is the best choice for my current situation. What is even better, is that I can OWN my own home, by the age of 21 (I would pay it off asap and keep living like i'm poor until its done).
My goal is to be 21 and a home owner (I'm sure some people's parents are still paying their mortgage well into their 50's), that's money that I would allocate elsewhere. Roth IRA and 401k (which, when hired, my employer matches) - vacations, and education.
General Motors, once I'm hired in, will pay for my schooling up to 5,000 a year. Which is extraordinary.
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I love how prominent 'poon palace' is as a criterion.
I would like to give you advice and I would say something like move in on your own because that's what I'd do or move in with friends as a back-up, but I feel like anything I say would be useless given that I still live with my parents. However, when I move out in a few years or so, I reckon it would be absolutely be balling to live just by myself in an apartment or something for a while by sheer virtue of me being a tad introverted. I imagine you would get over it/get lonely after a while, but depending on who you are, I think it would be awesome to live on your own for a while if you could afford it.
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I think that's amazing to get a home of your own at the age of 21. If University students bought a foreclosed home near their school then they wouldn't have to rent and if they paid 20k, they could save 20k over 4 years for a 10k/8 months education.
I've always wanted to skip that whole "dump money into rent" crap.
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On September 24 2012 19:52 obesechicken13 wrote:
I think that's amazing to get a home of your own at the age of 21. If University students bought a foreclosed home near their school then they wouldn't have to rent and if they paid 20k, they could save 20k over 4 years for a 10k/8 months education.
I've always wanted to skip that whole "dump money into rent" crap.
Yeah paying rent sucks, but I'm in the military and I'm trying to go back to Korea for work again. So I don't mind paying $550 a month for rent lolz. (I also got one month free because of 12 month lease) I get $1362 (not taxed) in housing allowance which doesn't include my (not taxed) food allowance and actual basic pay (taxed).
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OP: Smart thinking about the ROTH IRA/ 401k. Start that shit as early as possible. The earlier you get in the rhythm of setting up your retirement account the less you have to worry about in the future when you finally do stop working. Good luck house/apartment hunting!
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On September 24 2012 13:18 Suc wrote:
I love how prominent 'poon palace' is as a criterion.
I would like to give you advice and I would say something like move in on your own because that's what I'd do or move in with friends as a back-up, but I feel like anything I say would be useless given that I still live with my parents. However, when I move out in a few years or so, I reckon it would be absolutely be balling to live just by myself in an apartment or something for a while by sheer virtue of me being a tad introverted. I imagine you would get over it/get lonely after a while, but depending on who you are, I think it would be awesome to live on your own for a while if you could afford it.
I have a girlfriend of almost 2 years, poon palace is basic requirement! Hahaha, I'm sure you are right, i'm all psyched about it now, but - being a bit introverted as well - the place will get old fast.
On September 24 2012 21:21 Silentness wrote:_____________________
OP: Smart thinking about the ROTH IRA/ 401k. Start that shit as early as possible. The earlier you get in the rhythm of setting up your retirement account the less you have to worry about in the future when you finally do stop working. Good luck house/apartment hunting!
Thanks! I've thought about just taking 1,000 out of my savings, putting it in a roth IRA - and then forget about it. In 30 years or so - i can happily have a heart attack at what the 1,000 has become. All of this seems really weird to me though - I'm 19 - none on my friends have experience doing this. It just feels strange to me sometimes. And I worry about growing up too fast...I guess we'll see what happens, Thanks! Good luck in Korea man
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Why not just move in with your GF? Though I know a guy who did that and then they broke up.
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On September 25 2012 00:40 obesechicken13 wrote:
Why not just move in with your GF? Though I know a guy who did that and then they broke up.
Well, my girlfriend will move in with me, my name will be on everything in case we break up she has to move everything out. I know a guy who was kicked out of the apartment he was staying in with his girlfriend because they broke up and both names were on everything - she got a lawyer, and his name was off the lease - and he was essentially homeless.
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On September 25 2012 04:06 Roonweld wrote:Show nested quote +On September 25 2012 00:40 obesechicken13 wrote:
Why not just move in with your GF? Though I know a guy who did that and then they broke up. Well, my girlfriend will move in with me, my name will be on everything in case we break up she has to move everything out. I know a guy who was kicked out of the apartment he was staying in with his girlfriend because they broke up and both names were on everything - she got a lawyer, and his name was off the lease - and he was essentially homeless.
Yeah. My friend ended up moving out too. He didn't have internet in his new apartment for months. Poor bastard was so productive T_T
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you listed the three most important reasons. Its a fucking house, its a fucking house, and its a poon palace. You know what you have to do my friend.
Most importantly, don't move in with the friend that lives in the anti-poon. I've made that mistake and it really sucks to actually be embarassed to take a girl home..
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EPT
