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[BigToque]

So my friend (who is only 18) is getting $50,000 because his dad died. He tells me he's gonna buy a cheap $35,000 house (in his area) and move out of his step-dad's house. He is going to buy the house outright and his friend is going to live with him and they are going to split the bills (heating, electricity, water, food, cable, phone, etc...)

He says if his friend moves out then he'll just get another part-time job to help pay the bills. He's going to do this as well as go to university (which is being funded by way of student loans). He also says if something happens, he'll just take out a loan to help pay for some stuff.

I tried telling him just how stupid an idea it was, but he didn't seem very receptive. If he wants an inexpensive house in his area, he's looking at like 40-50,000 at the bottom end of the houses. 35,000 will only get him a sh!t house in the worst part of the city. (crime/violence/gangs/etc)

Say some things to help me out here...

 

[stev0]

tell him that if he moves out he supports himself (assuming that he lives with his dad, eats his dads food, ect...) and why would he move out to live in a sh1t hole if he can just stay with his step dad.

 

[Looney]

Man, $35k house? Really, i didn't even know houses went that cheap, and this is in CDN dollars?

You're right, that is a bad idea.

 

[N8Magic]

35K? Canadian?

Are you serious? That is waaaaaaaaaaaaay cheap. You couldn't buy a piece of land and a pup tent for 35K in Southern Ontario!

 

[BigToque]

<< why would he move out to live in a sh1t hole if he can just stay with his step dad. >>



1) because he hates his step-dad
2) he doesn't realize he's only going to be able to afford a sh!thole

btw, just so you guys know, these values are in Canadian currency. $35,000 CDN is only $22,200 USD

 

[BigFatCow]

OMG...i didnt even know houses were that cheap..maybe he can get a trailer.

 

[loup garou]

Has he ever heard of this thing called.....rent? WTF does he want to buy a house, when he could rent a place that would be much nicer?

 

[BigToque]

I need to tell him some things that will scare him away from this idea...

cost of house
cost of yearly taxes
cost of insurance
cost of bills
cost of keeping the house maintained
cost of food
working 2 jobs
going to uiversity
having to pay back student loans
having to pay interest on the student loans
no money to do ANYTHING with friends


what else is there... there is just no way he can afford to do this! he'll be in poverty!

 

[BoberFett]

Sounds like a good idea to me.

 

[BigToque]

<< Has he ever heard of this thing called.....rent? WTF does he want to buy a house, when he could rent a place that would be much nicer? >>



his responceto this question:

Why would I want to pay more per month for an appartment, when I can have my own house, do whatever I want to do, listen to my music as loud as I want, etc...

 

[BoberFett]

Damn, what a bunch of pussies. Grow up.

<< Oh dear me! It costs money to live! I'd better stay with mommy and daddy to protect me! >>

 

[BigToque]

<< Damn, what a bunch of pussies. Grow up.

<< Oh dear me! It costs money to live! I'd better stay with mommy and daddy to protect me! >> >>



stfu man, there is s huge difference between moving out and living in an appartment then there is when you try to buy a fscking house in the worst part of the city, and then having no money to live on. Especially when you are 18 years old.

If he did this he would end up collecting welfare and be costing you more tax money to feed him. It would be in your best interest to help me to convince him to either stay at home or find an appartment.

 

[Looney]

Yeah, if he doesn't mind living with cockroaches and rats, i guess he has a point. Well, let him have a look around, and talk to some real estate agents... just make sure he doesn't buy a house on impulse. I'm sure he'll come to his senses once he sees what is available for that kind of price, and all the taxes and insurance that is required.

 

[N8Magic]

<< Damn, what a bunch of pussies. Grow up.

<< Oh dear me! It costs money to live! I'd better stay with mommy and daddy to protect me! >>

>>



I completely agree.

I would buy a house for $35,000 tomorrow if I could find one that is livable for that price.

A $35,000 mortgage is pocket change, and will be WAY less than any reasonable place to rent. Not to mention that he is building equity when he makes his monthly payments towards the house, rather than throwing it away renting.

 

[N8Magic]

BTW, check this out:

$40,000 mortgage (enough to keep him out of the sh!tholes)
3.6% 1 year fixed rate
15 year amortization period
$1,000/yr property tax
$25/mo. insurance
================================
$396.25 per month, inclusive.

I don't know of many apartments that you can rent for that cheap.

 

[BigToque]

<< I would buy a house for $35,000 tomorrow if I could find one that is livable for that price >>



I;m sure you've heard what its like to live in some of the run down places in Los Angeles or Chicago right? (like south-central or something like that)... well thats what a similar area you will live in for $35,000.

(its not as bad as those places cause there are much fewer people, but it is the worst part of Winnipeg. Also, Winnipeg has earned the title of the "Detroit" of Canada for violent crime)

 

[BigToque]

N8Magic,

when I said 40-50, I basically pulled those numbers out of my ass... The area he lives in, in the poor section of an expensive area. I would imagine to get a house similar to what he's living in now (which is what he wants) he's looking at like ~70,000 (most houses in the area go for about 90-120)

 

[loup garou]

LOL, where do you people live? Seriously, I couldn't find a house for $22k USD in a neighborhood where I wouldn't get killed in New Orleans. Actually, I don't think I could find a $22k property AT ALL.

N8Magic: 4 of my friends and I rented a 6 bedroom house for $1500/month TOTAL ($300/each) in one of the nicest neighborhoods in New Orleans.

Maybe things are different in Canada, but if he were here, the smart thing to do would be to get together a few friends, rent a big place and put most of the money into savings, except for a bit in checking to use for rent, etc.

 

[Nightfall]

My wife and I bought a house last year. Our house was not cheap, but we did buy a brand new one in a nice suburb. We had a $20,000 down payment and a $200,000 house. I guess it just depends on what you can afford. I would recommend getting a nice house, and using part of the $50,000 for a down payment. Save 1/2 of it for other odds and ends you have to buy when you get a house (tools, materials, lawn mower, etc.).

 

[BigToque]

<< My wife and I bought a house last year. Our house was not cheap, but we did buy a brand new one in a nice suburb. We had a $20,000 down payment and a $200,000 house. I guess it just depends on what you can afford. I would recommend getting a nice house, and using part of the $50,000 for a down payment. Save 1/2 of it for other odds and ends you have to buy when you get a house (tools, materials, lawn mower, etc.). >>



How old are you though? How much does your job pay you? Any previous debt when you put down the down payment?

My friend is 18, he's in university full time, he works a job that pays just over min. wage, he will be $20,000 debt from student loans when he graduates, which he will start to pay interest on after graduation.

There is no way in hell he can afford a house. There is a reason why most people dont buy houses until they are financially ready to buy a house.

 

[Tominator]

<< So my friend (who is only 18) is getting $50,000 because his dad died. >>



Proof that idiots breed. Anyone that gives an 18 year old access to any large amount of money is an idiot!

If he has 50 grand how the hell does he qualify for financial aid?

 

[Jfur]

OMG, you can buy a house for 35k!!!!!!!

 

[BigToque]

<< Proof that idiots breed. Anyone that gives an 18 year old access to any large amount of money is an idiot! >>



Well it was insurance money and its going to his son. I don't really know how its all working out. I'm sure his dad would want him to save it or invest it or something.



<< If he has 50 grand how the hell does he qualify for financial aid? >>



He doesn't have the money yet. He will soon enough though. I guess he won't be getting anymore student loans though (I didn't even think of that). Thats another thing to scare him off now, since he wont be able to afford to finish school.

 

[Tominator]

He should immediately contact a Certified Financial Planner and try to sheild it from the taxes which might be a high as 40%! He needs professional advice!

 

[BigToque]

<< He should immediately contact a Certified Financial Planner and try to sheild it from the taxes which might be a high as 40%! He needs professional advice! >>



You can get taxed on insurance money? holy geez...

maybe I should let him get taxed... I mean if he loses half of the money he wont be able to afford to move out and my problem will be solved