When did you buy your first house?

[herdjohnson]

Just out of curiosity, when did everyone purchase their first home? I'm 24 (nearly 25) and looking at the math, likely at least 3-4 years away from that purchase (assuming I don't get a huge bump when I finish grad school).

[littleroc02us]

2006, at the height of the housing market. Got a great home but paid to much for it. Wish I knew now, what I know now. The good news is we thought we'd only stay there for a little while to upgrade to something larger, but the more we stay there we don't see us moving for a while because our neigborhood is so great and our place is looking better every year. The housing market where I live is doing pretty well, it's a desirable place. When you do look for a home someday make sure you like the environment, it's very important. We got lucky!

[littleroc02us]

hope all goes well with your goal.

[snafu]

I think buying your 1st residence depends on specific circumstances. DH & I bought our 1st house when DS #1 was nearly one y/o. We both had solid jobs and the government was offering incentives to boost the house building sector jobs.

I suggest you deeply examine why you want to buy a house and the pros & cons of ownership vs renting. Why not list these here for all to discuss?
Once you buy a house you add a new layer of difficulty in moving or flexibility to act on opportunities life throws your way.

[Joan.of.the.Arch]

I was 34, my spouse 40 when we first bought.

You could find that people here bought their first house at any & all ages. I understand the feeling of wondering if it is really doable, or whether you are ahead or behind some average. I do remember while we were renters wondering how others could swing such nice, roomy houses when I knew they had no more income than us. Well, it truly turned out that debt as big as all outdoors was how some people we knew were affording it. A few also had help from parents, it turns out.

[MonkeyMama]

The minute I turned 23.

It's funny, because I will be the first one to say SLOW DOWN and that it takes time to buy a home.

That said, my spouse had an extraordinarily good college situation and saved up for about 5 years. Our income went from $20k combined to $60k, right out of college. We didn't change our lifestyle hardly at all, and saved up 20% down for a condo within a few months. (Added to all the money he saved during college). We "rushed" a bit because owning was far cheaper than renting in our circumstance. Our PITI was probably $1500/month with 8% interest and tax breaks, but the same modest condo in a so-so neighborhood rented for $3000/month. The cheapest apartment we could fine was $1500/month. I had a low rent roommate situation, but was hard to find for the two of us together. He couldn't move in with me, for one. Just to clarify that I am not crazy - renting was more expensive.

If renting was not so expensive in the region we lived in, I never would have seen the point to rush it. Anyone who can rent and save up the money - go for it. It takes time. I'd say it took us almost 6 years to save up the money. We just started very young because we knew housing costs were extremely expensive where we lived.

One piece of advice? When we bought in 1999 everyone was buying like crazy because prices "were rising too fast." They would never be that low again!! Same thing for every year between now and the peak. The irony? People still say the same thing today. Home prices are higher across the board (higher than 1999, 2000, 2001), but people are rushing out saying these prices are the deal of the century. They are NOT. No matter what the year or circumstances, home buyers seem to be equally frantic. Don't fall for it. Buy when you are ready, and no sooner.

People tell me I don't understand because I bought so low.

Actually, we wanted to buy a house. The prices were INSANE and so we gave up. We moved to a lower cost region and bought a nice home in 2001. We never would have paid the peak home prices because we couldn't afford them. Plain and simple. IF we had to wait 10 years for affordable home prices to reappear? So be it. In the city we grew up in? We could never muster more than $260k for a condo. It would have had to do if we insisted on not moving. Houses still cost $500k there on the low end - we STILL can't afford that. We probably never can. WE are okay with that.

Sorry for the novel.

[herdjohnson]

There are several reasons I'd like to buy a home. For one, I'm living in Lexington, KY. I LOVE this city, don't get me wrong, but I was born and raised in rural WV, and in apt living I really miss having a yard.

One of the other main reasons is one I'm sure a lot of people experience, but renting feels like throwing money down the drain. Thousands of dollars out of the bank account and gone forever with nothing to show for it.

I'd also just like to be able to alter the home; build a deck, remodel the basement, etc... I know that's not cheap, but it could be gradual. I'm also aware this isn't a great reason to make a major purchase like a house, but I figure I may as well be honest about it.

And thanks for sharing, but I meant more at what age. Sorry, I should have been more specific.

[BuckyBadger]

I managed to buy a condo when I was 23 and starting my first year of grad school. I was only able to do it, though, because my father loaned me the down payment and, I think (hard to remember), co-signed for me. It was an inexpensive two bedroom condo and we got a great rate and I always had a roommate who's rent paid for practically the whole mortgage payment.

I went into the sciences so I was paid a stipend for my work as a research assistant so I could afford the monthly payments and paid my father back, with interest, when the condo was sold. Also, I had a ready supply of roommates available from the incoming students in my program.

So the short answer is, when I was 23, but the long answer includes the fact that I was very lucky to be able to do it when I did.

[bjl584]

I was 26 in 2004 when I bought my first house. I lived with my Dad after I got out of college, so I managed to be sitting on about $46K in cash when I finally bought my house and moved out.

[herdjohnson]

Originally Posted by MonkeyMama

The minute I turned 23.

It's funny, because I will be the first one to say SLOW DOWN and that it takes time to buy a home.

That said, my spouse had an extraordinarily good college situation and saved up for about 5 years. Our income went from $20k combined to $60k, right out of college. We didn't change our lifestyle hardly at all, and saved up 20% down for a condo within a few months. (Added to all the money he saved during college). We "rushed" a bit because owning was far cheaper than renting in our circumstance. Our PITI was probably $1500/month with 8% interest and tax breaks, but the same modest condo in a so-so neighborhood rented for $3000/month. The cheapest apartment we could fine was $1500/month. I had a low rent roommate situation, but was hard to find for the two of us together. He couldn't move in with me, for one. Just to clarify that I am not crazy - renting was more expensive.

If renting was not so expensive in the region we lived in, I never would have seen the point to rush it. Anyone who can rent and save up the money - go for it. It takes time. I'd say it took us almost 6 years to save up the money. We just started very young because we knew housing costs were extremely expensive where we lived.

One piece of advice? When we bought in 1999 everyone was buying like crazy because prices "were rising too fast." They would never be that low again!! Same thing for every year between now and the peak. The irony? People still say the same thing today. Home prices are higher across the board (higher than 1999, 2000, 2001), but people are rushing out saying these prices are the deal of the century. They are NOT. No matter what the year or circumstances, home buyers seem to be equally frantic. Don't fall for it. Buy when you are ready, and no sooner.

People tell me I don't understand because I bought so low.

Actually, we wanted to buy a house. The prices were INSANE and so we gave up. We moved to a lower cost region and bought a nice home in 2001. We never would have paid the peak home prices because we couldn't afford them. Plain and simple. IF we had to wait 10 years for affordable home prices to reappear? So be it. In the city we grew up in? We could never muster more than $260k for a condo. It would have had to do if we insisted on not moving. Houses still cost $500k there on the low end - we STILL can't afford that. We probably never can. WE are okay with that.

Sorry for the novel.

Don't be sorry at all, that's great information! I know I shouldn't rush, but it's just so much fun getting online and looking at all that's out there. I realize a lot of the same stuff will be there when I actually have my down-payment ready, but it makes me anxious!

[herdjohnson]

My dad offered to loan me the downpayment (especially when they were offering the 8K tax incentive), but I didn't want to juggle two home loans. Looking back I probably should've taken advantage of that.

[Slug]

I think 2003. That would've made me 29. I think we paid $176k for that with 10% down. 5 years and 2 houses later we're in a home that costs twice that. I can promise you that trend will not continue!

[troyw]

Originally Posted by herdjohnson

Just out of curiosity, when did everyone purchase their first home? I'm 24 (nearly 25) and looking at the math, likely at least 3-4 years away from that purchase (assuming I don't get a huge bump when I finish grad school).

We built our first house in 2005 at the ripe old age of 25. We sold that house 1.5 years later and just built our second house in 2009....we plan on staying in this one a little longer than the first.

[littleroc02us]

Originally Posted by herdjohnson

One of the other main reasons is one I'm sure a lot of people experience, but renting feels like throwing money down the drain. Thousands of dollars out of the bank account and gone forever with nothing to show for it.

You have to remember that you also throw thousands of dollars away each year when you pay interest on your mortgage even if you can deduct it from your taxes. Until you hold onto the property for many years you won't see the principal payment larger then the interest payment. Just something to keep in mind.

[herdjohnson]

Originally Posted by littleroc02us

You have to remember that you also throw thousands of dollars away each year when you pay interest on your mortgage even if you can deduct it from your taxes. Until you hold onto the property for many years you won't see the principal payment larger then the interest payment. Just something to keep in mind.

Oh I completely understand. But something is better than nothing.

[littleroc02us]

Originally Posted by herdjohnson

Oh I completely understand. But something is better than nothing.

I agree, I did it also...

[herdjohnson]

Originally Posted by Joan.of.the.Arch

I was 34, my spouse 40 when we first bought.

You could find that people here bought their first house at any & all ages. I understand the feeling of wondering if it is really doable, or whether you are ahead or behind some average. I do remember while we were renters wondering how others could swing such nice, roomy houses when I knew they had no more income than us. Well, it truly turned out that debt as big as all outdoors was how some people we knew were affording it. A few also had help from parents, it turns out.

Somehow I missed this post. You're explaining how I feel exactly. COUPLES who don't make as much as I do are BUILDING homes. Just wondering what I was doing wrong.

[cypher1]

May of 09, so at 28. Also got the 8k credit for first time buyer, but that wasn't the reason for buying. Almost bought one 6 months earlier, but the deal fell through. Glad I waited, and qualified for that deal.

[Redraidernurse]

We bought out house when we were 23 (we are 25 now). We both graduated college with no debt at age 21 and worked for 2 years to save up a 20% down payment, while simultaneously having an EF and maxing out our Roths each year. Our house (3 bed, 2 bath) is really more space than 2 adults and a baby need but it was a HUD home so we jumped on it for a good price.

That said, if we had debt upon graduating college (whether it be a car, student loan, etc) we would have waited to buy a house and paid off our debts first.

[MonkeyMama]

Originally Posted by Redraidernurse

That said, if we had debt upon graduating college (whether it be a car, student loan, etc) we would have waited to buy a house and paid off our debts first.

I agree - we had no debts when we bought our home.