When did you buy your first house?

[GREENBACK]

I bought my first and only house in 1999. I still live in it. I lived in an apartment for about 6 yrs. while saving to put 20% down. It's 1800 sq. on a slab with a 1 acre wooded lot in the country. I got it for 75k which was a great deal. Previous owner had to move out of state for family reasons and priced it to sell. I'm glad I found it as My mortgage is pretty small and doesn't interfere with my other financial goals. No palace, but I'm happy with it.

[StepRightUp]

I just don't get the idea that paying rent is throwing money down the drain.

You pay money for goods and services. I pay my rent in exchange for living in one of the best cities in the country. I could not afford to buy in this town, so renting allows me to have a quality of life I would otherwise not have if my choices were buying or moving.

A mortgage is debt and with debt comes a huge amount of risk. So while you're paying your mortgage, you're in essence paying the bank for the service of "allowing" you to live in your home. Stop paying that mortgage before it's paid off and see how long the bank allows you to stay there.

I'm surrounded by friends who are buying houses. Some are in great financial shape, others in debt up to their eyeballs. I'm thankful that for right now I do not have that debt over my head.

But first and foremost, when I buy, it will be about improving my quality of life. If buying enables me to do that, AND I can afford to do so, then perhaps I'll make that decision.

But in the meantime, I am paying rent. And I am not throwing away money each month simply because having a place to live is as essential as having food to eat.

[thekid]

I was 30 and my wife was 29 (she already had a condo). We had been working for some 5 years and had saved a considerable cash down.

For us that worked well. We travelled and saved alot before buying the home and were ready to settle down (and financially well prepared) when we did.

[dbstylee]

I was 21 when I bought...made a killing before the market crash in Cali

[hausfrau]

I was 24 and my husband 28 (just 6 months ago LOL)

We really scraped by on the hairs of my chinny chin chin. We had nothing saved. We sold stuff to get the 3.5% FHA down payment. I feel like the whole thing was a miracle!
I know, I know.. we didn't have 20%..

But our principle & interest payment is $475 a month at 4.875%. Homes in my neighborhood rent for at least $1000.

I feel like we made the right decision to buy even though we didn't have 20%. When I go back to work and we have two incomes, I plan to throw my income at the mortgage. We could have the sucker paid off in two or three years!

[hausfrau]

I was 24 and my husband 28 (just 6 months ago LOL)

We really scraped by on the hairs of my chinny chin chin. We had nothing saved. We sold stuff to get the 3.5% FHA down payment. I feel like the whole thing was a miracle!
I know, I know.. we didn't have 20%..

But our principle & interest payment is $475 a month at 4.875%. Homes in my neighborhood rent for at least $1000.

I feel like we made the right decision to buy even though we didn't have 20%. When I go back to work and we have two incomes, I plan to throw my income at the mortgage. We could have the sucker paid off in two or three years!

[mohawkstrip]

The knee jerk reaction of "I must own a home" is troubling - especially considering how many people stretch themselves to the limit with minimal savings and low down payments just so they can say they "own" a home.

Given home maintenance/repairs, insurance, furnishing, energy costs, and lack of mobility, there are many more reasons to rent than people realize. There are also a number of studies showing that if you bank/invest the money you would have put into a mortgage, you can come out ahead by renting.

[jerrycates]

I was able to get my own house... small unit house around 12 yrs ago. It's almost done so I am close to be debt free! I cannot wait for that moment to come!

[investingnoob]

2010, 22yrs old
I bought at a perfect time, got a great deal and $8k first time home buyer.

[Frugal]

When I was 26, and my husband almost 30, we bought our first house. Apartment got to be more expsnsive than a house pmt. We also had to go through a lot to save up for it, including my living at home after college to save money, before I got married.

[mrpaseo]

Let's see, our first and only home was purchased in 1999. My wife and I were 27 y/o. We would have purchased sooner but my job moving me around did not allow. As soon as we could, we searched for four hours before we found the one we wanted... (Yes, four hours)

We paid $89,000 for the home with nothing down (VA Loan). We paid extra every month and hit it hard last year. In December of 2010 we paid off the house. Due to frugal living we managed to pay off the house in 11 years. Originally we were thinking this house was a stepping stone to a larger home in retirement but the neighborhood is great and the area is booming.

Now that the house is paid off, we have been doing some upgrades to the appliances and now we're looking at staying here until we're about 50 before we move to another location... Who knows, we may just stay here for good (Who can beat no mortgage payments?).

I don't think buying a home equates to age... It's the timing and the finances that matter.

Best of luck to all who are thinking about purchasing, already purchased or already paid off the home.

Ray

[jteezie]

Originally Posted by mohawkstrip

The knee jerk reaction of "I must own a home" is troubling - especially considering how many people stretch themselves to the limit with minimal savings and low down payments just so they can say they "own" a home.

Given home maintenance/repairs, insurance, furnishing, energy costs, and lack of mobility, there are many more reasons to rent than people realize. There are also a number of studies showing that if you bank/invest the money you would have put into a mortgage, you can come out ahead by renting.

I tend to agree with these statements. You really should look at the opportunity cost of your decision. Most people are happy just focusing on small wins, but in the bigger picture, buying a house might yield 2% returns a year, but the markets are 8%. Which is better?

However, a house isn't exactly a stock. You buy it as a home. If you plan to stick around for a long time, want to be your own landlord and don't mind paying 2x the value (through interest), then it's worth it.

Personally, I hate the idea of being my own landlord and having to repair anything and I want to mobility offered by renting. Change is an ever persistent part of life especially if one wants to advance in their career. There are tons of other reasons, some minute, some obvious, but the big thing for me is the opportunity cost.

[canada94]

I was 18 when i bought my first house here in the uk, i like to move every couple of years for full tax benefits, and take the equity with me


Kevin

[DebbieL]

Canada94, that would be a very expensive proposition for most people. I'm not sure how it works in the UK, but here in Canada there are many expensive costs associated with buying and selling real estate. I can't see it being worth it to buy here if you are selling again so soon and rebuying. We are currently at the end (I hope) of a stupid, insane housing bubble that has lasted for about 8-9 years, so during that time you could have gotten lucky in that houses were inflating at an insane rate, but that is coming to a screeching halt. For most it just wouldn't make sense to buy when only staying a year or two.

In other words, your method only works in an inflating environment. What happens when prices go down?

[glock35ipsc]

1994, 24 years old. Teeny tiny little 3 bedroom, 1 bath house.

[Frugal]

We had debts when we bought our first home, but it still saved us money over paying rent monthly in an over-priced apartment. Let's just say we were under 40 when we bought our first home. Rent at apt. cost us more than our mortgage pmt. each month here.

[Bob B.]

I was 24, and within two months of turning 25.

[jeffery12]

I bought my house in 2007.. I am very lucky.. yes lucky to having bought it 4 years back. cost has risen like anything.