Is this a crazy idea?

[ParNone]

Hi Amy,

I think it's a very good idea to own vs rent, as Cookiebaker pointed, renting is just throwing money. However, you need to approach it very logically. Make sure you're getting a house you can afford. House ownership is not something you should just wing. You need to know what you're getting into. So first step, make out a detailed monthly budget.

Taxes and Insurance (Based on value of house and location this can be quite varied. I pay about $500 a month. Ask your parents what they pay to get somewhat of an estimate. They probably pay more then you would and this is a category that's best to estimate high in, because it'll go up every year.)

Utilities ( I pay about $350/mo in the 3 summer mos for Electric, Gas, Water and Phone and approx $250/mo the rest of the year. Utah may be completely opposite though, since you're dealing with cold vs heat. Again ask your parents to get an estimate).

Transportation (Not sure if you have a car. If you do put down car payment, gas, insurance, licenses, maintenance. If not, put any fees for buses or such).

Does the neighborhood have any yearly community fees? Find out from your parents. Put that down.

Food and essentials. Basically your grocery bill that would include not only food, but cleaning products, toilet paper, toothpaste, etc. I avg about $350 a month.

Dog Things like food, vet bills, etc.

Entertainment Things like Cable TV, Dining, Movies, Outings with Nebo, etc. You may can cut back on things like this, but be realistic, cuz you're not going to want to give up all fun things in your life.

Clothes

Those are just some ideas off the top of my head. You know yourself best, so add any expense you usually incur too. Now figure out your monthly income, including the roommate rent, subtract all the expenses from it. Do you have any money left over? If not, can you swing a cheaper home. Make sure you've figured out the house payment by a 30 year loan too, that'll give you cheaper monthly payments.

If you go the roommate route. Spell out everything up front with the roommate, so there's no misunderstandings and get at least a month's rent up front. Put it aside and don't touch it. So if they move out suddenly that gives you at least a month to find another roommate.

While you're at your parents, save, save, save. When I got a house 15 years ago, I had $15,000 saved from living with my parents and sister. 5000 for down payment. 5000 for new house things, like Refrig, Washer/Dryer, Lawn Equipment, Furniture, etc and 5000 for emergencies.

Also I agree with Micki. Go back to College if you can. That lil' piece of paper means a lot. Silly as it may seem. Since you're great at art and computers. Maybe go for Grahpic Design. My artist friend, Judes, did that and she loved it. You'll have to soldier through English, Math and History, etc. But once you get to the grahpics classes you'll be having a blast.


Par...

[LKPike]

here its common to rent the extra bedrooms too

if you wouldnt mind sharing the house with more people, itd be a good way to pay for your house with reasonable prices.

[new mom to a veiled]

Just like anything, there are pro's and con's. You are young, I would go back to school and find a career that you like. Then look at buying. I lived in a condo town home and when I bought my house what an eye opener!!! If you are lucky family & friends will give you furniture, dishes, etc. Don't forget about cutting the grass etc. Owning a home is a huge time investment also. Make sure the home is inspected before purchase for potential problems, ie may need new roof or windows in a year or two. Don't forget about your property taxes, insurance, and general up keep. I do agree that owning is better that renting, however living at home can be a major advantage until you can get some $$ in your pocket. Best of luck on whatever you decide

[beeniesmom]

Originally posted by Chica
You are young and I think you should stay put and go to school and get your degree in whatever you want. Then get a job. My sister did that first. Second, she bought a house because her income could afford it very well. Third, she met someone and they married and bought a bigger house and rented out my sisters house. Anyway your career should come first.

Great advice.
I did the above and it worked for me.

[wolf_Q]

Thanks for the advice everyone. Just for the record I do have close to 15k in the bank so I'd have money or emergencies, repairs, etc. unless it's something extreme.

I have thought about renting out other rooms (have another friend in mind) but I'm paranoid with who as it'd have to be somebody I'd trust with my pets (as in not letting Nebo run out the front door!)

My parents house is like less than a block away I could borrow lawn supplies and such. I'm sure they'd help with some things, but they aren't ones to hand out money easily...they won't help me pay for college at all.

My friend really wants me to do it but she's been paying rent and living away from home for several years, it's not a huge difference to her...plus it wouldn't be her name on the loan anyway.

I'd have to look into what the total cost per month would be. It's not likely I will do it, I think I'm too big of a chicken to jump into a huge thing like this. Just wanted to get some other points of views and opinions. It's not that bad living here, just frustrating as I'd like some independence plus I'd really love to get more pets which they will not allow.