An apartment here is $800 to 900 bucks minimum, this is for a usual 2 bedroom apartment in the south. Mortgage payments would be about $1500 if I can get a broker to approve me.
An apartment here is $800 to 900 bucks minimum, this is for a usual 2 bedroom apartment in the south. Mortgage payments would be about $1500 if I can get a broker to approve me.
SearchMaster
Diamond Member
- Jun 6, 2002
- 7,791
- 114
- 106
From the sound of things, I think you're going to be very successful in life. So whether you're buying at 18 or at 21 won't make that much difference in the long run. Rent a place with some friends, and have some fun. You will get burned out if you don't have some fun at that age - trust me on this one. And if you buy a place and sublet to friends, you won't have nearly as much fun.
Still a bit shenzy.
If you had listed 1 maybe 2 extra thing you do on the side(while going to school and not to mention you have no place of your own), it might be believable.
But when you listed income from 8 sources, while going to school, its hard to believe.
Especially when you said you're never home much and sleep on the sofa...where are you doing all this work to earn those incomes ??
If you had listed 1 maybe 2 extra thing you do on the side(while going to school and not to mention you have no place of your own), it might be believable.
But when you listed income from 8 sources, while going to school, its hard to believe.
Especially when you said you're never home much and sleep on the sofa...where are you doing all this work to earn those incomes ??
Where do you do all your side businesses ??? At the library ??
Smells like a shen, must be a shen.
You're not going to get $1500/month payments unless its interest only.
And if you're buying a $350,000 house on a interest only mortgage, you're the one thats not really smart.
Lets do the math here.
Rent $800/month
Interest only loan $1500/month
For you to break even after 3 years, you either would have to find someone to rent from you for the other $700/month OR hope that your house appreciate $700 per month.
Not to mention, there is alot of extra cost involving in owning a house.(closing cost, repair bills, property taxes, home insurance)
I wish I had your buisiness drive.
Wage slave life for me I'm afraid, congrats to you for an apparantly excellent work ethic and energy. I'd get a house in Calgary cause I don't think there are going to get any cheaper anytime soon! Just the apreciation of the house should pay off any legal fees and associated ones if you are in it for a yr or two and have to sell.
Real estate is 'usually' a sound investment but don't become house poor lving to pay off the house month to month. There are a lot of costs associated with a house a roomate at your age to help shoulder the burden wouldn't be a bad idea cause now you have insurance costs maintenance costs, yes you will have to buy a lawn mower as I told my brother who just bought his first house in Jan. You don't own it, it owns you.
Me, back sore from staining the deck and fence all weekend!
Wage slave life for me I'm afraid, congrats to you for an apparantly excellent work ethic and energy. I'd get a house in Calgary cause I don't think there are going to get any cheaper anytime soon! Just the apreciation of the house should pay off any legal fees and associated ones if you are in it for a yr or two and have to sell.
Real estate is 'usually' a sound investment but don't become house poor lving to pay off the house month to month. There are a lot of costs associated with a house a roomate at your age to help shoulder the burden wouldn't be a bad idea cause now you have insurance costs maintenance costs, yes you will have to buy a lawn mower as I told my brother who just bought his first house in Jan. You don't own it, it owns you.
Me, back sore from staining the deck and fence all weekend!
What is a shen? Also I am at school the majority of the time. It is where I do most of my web work as I have a laptop.
All of your opinions are considered so its not like I am absolutely set on this. As for having someone rent a room from me, I have my best friend that is willing to rent for $600 so I would have extra money laying around.
My calculation:
$350,000 - 20% @ 5.75% intrest over 25 years is $1761.50/mo
property taxes might be $300/mo
utilities would be < $500/mo
There are so many flaws with the things you've said.
Forget the fact that I think you making $7K-$10K a month is a big shen...cause it is
I've just going to focus on you trying to buy a $350K house at 18 if you actually have the money.
- Buying a house is a very wise investment but at 18 with no stable income, you're gonna fall flat on your @ss if you can't sustain that type of income.
- Being burden with about $2500 per month is alot(alot) for anyone, even more with an 18 yr old.
- I highly doubt anyone is going to give you 5.75% with a your type of credit.
Your problem isn't the income or age - it is the lack of verifiable, stable income. If you put a lot down, you should be able to get a mortgage. However, you are still looking at places that are too expensive.
Also, I assume you are paying taxes on that $7-10k? Otherwise it's going to make it an awful lot harder to convince a bank that you are making that much.
You should be looking in the $200k range and trying to put $40-50k down. That is a lot more reasonable.
Also, I assume you are paying taxes on that $7-10k? Otherwise it's going to make it an awful lot harder to convince a bank that you are making that much.
You should be looking in the $200k range and trying to put $40-50k down. That is a lot more reasonable.
it's pretty unlikely a broker will approve your mortgage application.
no matter how much you make there are a few uncertainties.
1. you are only 18 with average credit
2. you are and will be in school for the next 4+ years (?)
3. your income doesn't qualify as stable income, it fluctuates
if you indeed make that much a month, it's not a big deal for you to rent your own place, only $800 as you said.
save all the excess money and buy a house when you are done with school.
no matter how much you make there are a few uncertainties.
1. you are only 18 with average credit
2. you are and will be in school for the next 4+ years (?)
3. your income doesn't qualify as stable income, it fluctuates
if you indeed make that much a month, it's not a big deal for you to rent your own place, only $800 as you said.
save all the excess money and buy a house when you are done with school.
I wish you people understand the logic between rent vs own before you think renting is just money out the window.
Let me demonstrate once again if owning a $350000 for an 18 yr old is worth it.
Rent:
He said renting a 2 bedroom is $800-900 so if hes to get a roomate, he'll pay $450.
If he gets a 2 bedroom and not get a roommate, then hes an idiot and we stop here.
$450x 36 months = $16,200.
Own:
If he can come up with $70K for a $350K house then thats a $280K loan.
The monthly for that is about $2100-$2200 including property tax and insurance but he does get some tax relief so lets call it an even $2000 per month.
$2000x 36 = $72,000
Looking at the table the priciple paid for 36 months is $12,000
So lets say he does get a roommate to pay $600 a month, thats $21600.
$72000- $12000- 21600 = $38400
Thats $22K more than if he had rent.
Basically, the house has to appreciate $22K for him to break even which is very likely.
BUt there is alot more risks and more responsilibities of owning a house, especially even more for an 18 yr old.
There is so much more responsibilties in owning a house that I don't think alot of 18 yr old can handle.
All I'm saying is before you say renting is just throwing away money, you have to look at the scenario vs owning before thinking so.
LOL I wonder if you declare this on your income tax T4's, I think the government would be pretty interested.
Stability is a very good point. If you look at it in perspective, I have been doing this business for the past 6 months with no problems however, if something were to fail I would be in a tight situation.
I was planning to have some money saved up as well for this type of situation (if it were to ever happen). 25% down plus I would have 20k in savings just for backup... does that sound alright?
Getting approved though is going to be hard... I would obviously need to find the right broker.
If the business did ever fail, my current job could cover the monthly payment but nothing more.
They would deduct like crazy.
I was planning to have some money saved up as well for this type of situation (if it were to ever happen). 25% down plus I would have 20k in savings just for backup... does that sound alright?
Getting approved though is going to be hard... I would obviously need to find the right broker.
If the business did ever fail, my current job could cover the monthly payment but nothing more.
They would deduct like crazy.
Where is the programming part of this that you were speaking of. God I hope you dont mean HTML. What software are you selling, whats your website, whats your normal job, whats your ebay account name?
Shut me up, yea right.
Programming is what I am taking in school right now. It has very little to do with the money I make right now but my web design makes enough for it to be considered a business, along with the maintenance.
My normal job is at the Calgary Health Region. I maintain and run their computers, my friend's dad gave me the job because he knew that I have skills with comps and a lot of experience in the area. This isn't a full time job but obviously when I get out of school I would have a wider job opportunity.
But please stay on topic, I just want to know anyone that has actually done this, its a big step and I want to know my possibilities.
Programming is what I am taking in school right now. It has very little to do with the money I make right now but my web design makes enough for it to be considered a business, along with the maintenance.
My normal job is at the Calgary Health Region. I maintain and run their computers, my friend's dad gave me the job because he knew that I have skills with comps and a lot of experience in the area. This isn't a full time job but obviously when I get out of school I would have a wider job opportunity.
But please stay on topic, I just want to know anyone that has actually done this, its a big step and I want to know my possibilities.
PowerEngineer
Diamond Member
- Oct 22, 2001
- 3,566
- 736
- 136
I'm really surprised that you would want to tie yourself up to a house right now. How about saving for college instead? Just my two cents (Canadian)....
yea I really don't know, its like I want it but then I'm not 100% sure. Everyone seems to think its hard to maintain and that is starting to freak me out. I really don't want to rent though, my mooom has been renting for like 25 years and has gotten nothing out of it. You know how it is...
Right now I have about 30k saved so its either I put it all towards school and look like a poor kid for another 4-5 year or save up another 30k and buy the house and somehow try and fund school on top...
Right now I have about 30k saved so its either I put it all towards school and look like a poor kid for another 4-5 year or save up another 30k and buy the house and somehow try and fund school on top...
Get a broker, and see if you can do a buy-back for 25%. That will avoid CMHC insurance costs, but may also help sway your bank. Granted, 18 is a very early age for the most part, so the bank may dismiss it on principle.
xgsound
Golden Member
- Jan 22, 2002
- 1,374
- 8
- 81
Just in case there is really something to this... All mortgage companies will need 2 years minimum of income tax records for self employed persons of any age. There will be many barriers to getting a mortgage at your age, but you don't need to let that stop you.
Don't count on getting one, but investigate it. You can't be in a hurry because that always costs you money.
If you're currently sleeping on a couch, a 1 bedroom apartment will seem like a castle. In this castle YOU will be the king. It will also allow you to not be in a hurry. You will also be able to bank the difference between the rent and whatever house expenses would be. The closer you get to 50% down, the more likely you will be accepted for a mortgage if you still want one. Did I say don't be in a hurry? When they finally accept you, demand a lower interest rate and a 10 or 15 year mortgage.
An apartment will allow you to take your time and get a good deal. Living below your means allows you to add to your bank account every week. Since you say you're 18, I'd say the likelyhood that you'll change your mind about the things you want in the next 10 years (or for that matter 10 minutes) is well above 90%. If you do, a barrel full of money in the bank won't hurt in achieving your new goals.
While you're waiting perhaps this "housing bubble" will burst and house prices will plummet. I understand you're in a rush, but I can't say this enough. Don't be in a hurry,it always cost you money.
Jim
Don't count on getting one, but investigate it. You can't be in a hurry because that always costs you money.
If you're currently sleeping on a couch, a 1 bedroom apartment will seem like a castle. In this castle YOU will be the king. It will also allow you to not be in a hurry. You will also be able to bank the difference between the rent and whatever house expenses would be. The closer you get to 50% down, the more likely you will be accepted for a mortgage if you still want one. Did I say don't be in a hurry? When they finally accept you, demand a lower interest rate and a 10 or 15 year mortgage.
An apartment will allow you to take your time and get a good deal. Living below your means allows you to add to your bank account every week. Since you say you're 18, I'd say the likelyhood that you'll change your mind about the things you want in the next 10 years (or for that matter 10 minutes) is well above 90%. If you do, a barrel full of money in the bank won't hurt in achieving your new goals.
While you're waiting perhaps this "housing bubble" will burst and house prices will plummet. I understand you're in a rush, but I can't say this enough. Don't be in a hurry,it always cost you money.
Jim
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