I blew 90% of my savings on my place.

[kamikaze27]

Originally posted by: her209

Originally posted by: MrDudeMan
i certainly wouldnt have wasted that much on a down payment.

Personally, $40k on a $400k place is low. Isn't 20% of the purchase price consider a standard down payment amount?

20% is standard, but if the bank evals the property, and picks up an uptrend, i.e. if I break loose, they can repo and get better ROI

 

[bennylong]

Originally posted by: nutxo

Originally posted by: kamikaze27
I just bought an apartment in the CBD as part live/invest. Quite expensive for me nearly $400k (which I forked out $40k dep, but its drained me out so much so that I'm now riding a scooter to work).

Did I budget wrong? I spent 90% of my savings on the house deposit, and 10% leftover for unforseen. But now I dont have a car, and I used to own 3 (I love my rides), and now I'm 33.

I have a better place than all my colleagues, but they have slick rides.

Am I "living?"

Sometimes when it rains, I take the sub back or hitch a ride. To buy or not to buy.
I dont even open YACT's anymore.
<sigh>

Good thing you bought right now before the real estate crash when values go down or you would have lost a bundle.. oh, wait....

So you're saying now is not the time to buy RE?

 

[erub]

Originally posted by: kamikaze27

Originally posted by: KLin
What's the CBD?

Central Business District

Central Business District of what city? Is that supposed to be intuitevely obvious? If you're another arrogant new yorker or cali who thinks the world revolves around you, fall off a cliff..kthxbye

 

[masterxfob]

a nice house is always nice and retains its value, a nice car is soon outdated and worth a fraction of the purchase cost. besides, in a couple of years, you'll be able to buy a nice car and still have that nice house

 

[masterxfob]

Originally posted by: erub

Originally posted by: kamikaze27

Originally posted by: KLin
What's the CBD?

Central Business District

Central Business District of what city? Is that supposed to be intuitevely obvious? If you're another arrogant new yorker or cali who thinks the world revolves around you, fall off a cliff..kthxbye

maybe he's a secret agent and can't reveal his location. so if you're another need to know it all gossip mongrel, die in a fire... kthxbye

 

[Rubycon]

Screw cars - you avoid all the road rage and insurance, maintenance, etc.

 

[FallenHero]

Originally posted by: KillerCharlie
If APARTMENTS (condos) are that expensive here by the time I'm ready to buy, I'm moving to the midwest.

dont bother. They arent much better around here either.

 

[kamikaze27]

Originally posted by: masterxfob

Originally posted by: erub

Originally posted by: kamikaze27

Originally posted by: KLin
What's the CBD?

Central Business District

Central Business District of what city? Is that supposed to be intuitevely obvious? If you're another arrogant new yorker or cali who thinks the world revolves around you, fall off a cliff..kthxbye

maybe he's a secret agent and can't reveal his location. so if you're another need to know it all gossip mongrel, die in a fire... kthxbye

Yes, how streetsmart of you to ID that I'm an arrogant snob, so arrogant that I gotta check my dues with fellow ATOT's.
No, you were close, but I actually own a surfing shop on top of a mountain, and I sell boogieboards and kthxbye t-shirts.

 

[UNCjigga]

Three words - home equity loan?

 

[SampSon]

Actually, that's 10%. 10% is standard but there are many people who've been buying homes by taking out a loan for 80% of the purchase price and doing a second for the remaining 20%. So basically it's 100% financed. Personally, I think it's rather reckless of the lenders and I wouldn't be surprised if it comes back to bite them in the ass.

I put 20% down on my home when I bought it.

20% down is the standard, not 10%. Mabey just a typo?

There is plenty of creative financing out there today. Some way more "creative" and potentially dangerous than others. The sub-prime higher risk lending for housing will hurt lending institutions in the near future, but they plan and put aside funds for that. They are also knowingly delving into higher risk ventures for the higher profits.

Most home buyers don't come to the table with 20% cash ready to put down on the house. That's just not very realistic anymore in the housing markets today, even in very modest ones. It's also not the best financial decision for most people. With the many loan programs out there the cash they have in hand can be better spent other places.

 

[Legendary]

A New Yorker would call it Midtown or Downtown, my guess is you're either from Cali or NZ.

 

[doze]

Assuming you may only need a car a few times a month you may be better off renting as needed for a while. You can get a compact or midsize car for $20~30 a day, and many places have weekend specials on the nicer vehicles.

 

[Mardeth]

A 360k mortage? Wow...

 

[FreshCrabLegs]

Originally posted by: Mardeth
A 360k mortage? Wow...

I'd be lucky if I can find a place for that price. Zillow, anyone?

 

[b0mbrman]

Originally posted by: MrDudeMan
i certainly wouldnt have wasted that much on a down payment.

It's not wasted as he simply traded $40k in cash for $40k in equity.

"Tied up" might be a better phrase

 

[KnickNut3]

Originally posted by: Legendary
A New Yorker would call it Midtown or Downtown, my guess is you're either from Cali or NZ.

My guess is Sydney.

 

[Imported]

I'm confused.. why do you need such a large down payment for an apartment?

 

[b0mbrman]

Originally posted by: Legendary
A New Yorker would call it Midtown or Downtown, my guess is you're either from Cali or NZ.

I'm a Californian and have never heard the acronym CBD

 

[MrDudeMan]

Originally posted by: b0mbrman

Originally posted by: MrDudeMan
i certainly wouldnt have wasted that much on a down payment.

It's not wasted as he simply traded $40k in cash for $40k in equity.

"Tied up" might be a better phrase

what he wasted is the ability to make money with that 40k somewhere else while his home appreciates. again, i wouldnt have wasted 40k on a down payment. people say its standard to put 20% down, but i would still never do it. i actually bought a house last month and put 0% down on purpose even though i had 10% in hand. i will easily make a lot more with that 10% by investing it elsewhere than i would have if it were just sitting there collecting dust in my "equity"...some people dont want to take the risk, and thats fine, but i am willing and able so it absolutely made no sense to tie up that much money.

 

[RbSX]

If 40k is 90% of your savings at 33 you are wrong at looking at buying an apartment as being a problem, but your whole savings scheme as an issue.

 

[oboeguy]

Originally posted by: MS Dawn
Screw cars - you avoid all the road rage and insurance, maintenance, etc.

+MF+ "nice ride", gimme a break. Waste of dough.

 

[MichaelD]

Originally posted by: RyanSengara
If 40k is 90% of your savings at 33 you are wrong at looking at buying an apartment as being a problem, but your whole savings scheme as an issue.

Not everyone starts saving 99% of their paycheck at 21 years old. :roll: Some folks don't make that much to begin with and/or have a family to support, possibly big bills to pay from past financial indescretions. Some folks also have been on their own since they were 18 years old and didn't have the benefit of living at home until they had graduated college, gotten a good job AND have already been at said good job (with no bills to pay) for several years.

I think the percentage of people that actually HAVE been on their own since an early age, AND have totally done the right thing with their money is very, very low.

I think many people on this forum have a snot-nosed attitude towards anyone over 30 that:

a) Owes a single dime on credit cards
b) Doesn't own their vehicle outright
c) Doesn't contribute at least 45.432% of their GDP towards savings

And said "Many People" have a lot to learn about the real world.

That said, I think the OP was a bit rash in selling ALL of his vehicles. Public transportation sucks, big time. No two ways about it. Plus, not having a car at ALL severly limits your social life and ability to do simple things...like food shopping. Ever try getting frozen food home on the bus during August? It's not pretty.

But, I do think he made a good choice buying his apartment/condo/whatever. It's an investment and will only do him good down the line.

I'm no financial wizard, but common sense says, the more you put DOWN up front on a loan, the LESS you wind up paying over the life of the loan, and/or the faster you get it paid off.

Those of you that argue "BUT he could've put down just $20K and invested the other $20K in a no-load blah-blah with a green stamp discount of blahblah and wrote it off on his Form2342 at the end of the year" are just blowing smoke and making mountains out of molehills.

He put down a LOT up front, therefore will pay LESS over the life of the loan.

THAT said, I do not think it was smart of him to deplete his "Emergency Fund." Leaving yourself broke is never a good idea/.

 

[bennylong]

Originally posted by: MichaelD

Originally posted by: RyanSengara
If 40k is 90% of your savings at 33 you are wrong at looking at buying an apartment as being a problem, but your whole savings scheme as an issue.

Not everyone starts saving 99% of their paycheck at 21 years old. :roll: Some folks don't make that much to begin with and/or have a family to support, possibly big bills to pay from past financial indescretions. Some folks also have been on their own since they were 18 years old and didn't have the benefit of living at home until they had graduated college, gotten a good job AND have already been at said good job (with no bills to pay) for several years.

I think the percentage of people that actually HAVE been on their own since an early age, AND have totally done the right thing with their money is very, very low.

I think many people on this forum have a snot-nosed attitude towards anyone over 30 that:

a) Owes a single dime on credit cards
b) Doesn't own their vehicle outright
c) Doesn't contribute at least 45.432% of their GDP towards savings

And said "Many People" have a lot to learn about the real world.

That said, I think the OP was a bit rash in selling ALL of his vehicles. Public transportation sucks, big time. No two ways about it. Plus, not having a car at ALL severly limits your social life and ability to do simple things...like food shopping. Ever try getting frozen food home on the bus during August? It's not pretty.

But, I do think he made a good choice buying his apartment/condo/whatever. It's an investment and will only do him good down the line.

I'm no financial wizard, but common sense says, the more you put DOWN up front on a loan, the LESS you wind up paying over the life of the loan, and/or the faster you get it paid off.

Those of you that argue "BUT he could've put down just $20K and invested the other $20K in a no-load blah-blah with a green stamp discount of blahblah and wrote it off on his Form2342 at the end of the year" are just blowing smoke and making mountains out of molehills.

He put down a LOT up front, therefore will pay LESS over the life of the loan.

THAT said, I do not think it was smart of him to deplete his "Emergency Fund." Leaving yourself broke is never a good idea/.

Don't forget, if you don't make over $100k, you're also a loser according to ATOT.

 

[Fritzo]

Damn...I have a big house and only paid $225K for it built new :shocked:

I think you overspent.

 

[iversonyin]

Originally posted by: Fritzo
Damn...I have a big house and only paid $225K for it built new :shocked:

I think you overspent.

Location, Location, Location