Why buy a house that costs........... (to rent, mortgage, buying a house)

[neekah18]

Ok I was watching one of my favorite shows on HGTV called MY FIRST PLACE. A couple was buying their first home and had a budget of $300k-350k. They bought a home that needed work and eventually paid $340k for everything. Their mortgage would be about $2500 a month and the wife said I will have to take on a second job just to pay the mortgage. Is that normal???? Why would a person do that?? It's your first home and u won't be able to enjoy it!!!

I plan on buying my first home in a couple of years and I wouldn't even think of buying a house where I would have to work 2 jobs as a necessity just to make my mortgage.

What is wrong with people?? Then she said because they bought a 3 bedroom hopefully they will have kids. Great then she will work 3 jobs!!!

[Lillietta]

To some people the be-all and end-all of their lives is a "dream house."

[kimchee]

Why's the mortgage so high?

340K mortgage, assuming she puts down zero, is $2,149.03 on a 6.5% rate.

Sounds like she's WAY in over her head here. And she has to factor in cost to repair/renovate the place too? Geesh! Another case of living beyond your means. Hasn't this woman been reading about the mortgage fiasco? She's just contributing more to the problem.

[syncmaster]

Ditto what Lillietta and kimchee said.

[neekah18]

Originally Posted by kimchee

Why's the mortgage so high?

340K mortgage, assuming she puts down zero, is $2,149.03 on a 6.5% rate.

Sounds like she's WAY in over her head here. And she has to factor in cost to repair/renovate the place too? Geesh! Another case of living beyond your means. Hasn't this woman been reading about the mortgage fiasco? She's just contributing more to the problem.

From what I read she had 2 mortgages and I think she had some money down. Her mortgage was very close to $2500. She also had a husband and he was working too. I almost fell over when she said she would have to take a second job. Also if a person is approved for $300k do they have to buy a home for $300k??? I would think that would be the maximum you would want to spend so why not look at homes for about $225-250k?

[ottomobeale]

It is their first place. Needing work, it may well be the cheapest around.

Remember one fact: With a family, renting often makes sense financially, BUT, it almost always sucks.

I rent. It sucks. My college edumacation tells me renting makes dollars sense but I DESPISE renting. I do it because my wife takes care of the kids and, even with 2 jobs the cash flow just is not there for at least a year. I work in NJ so houses are NOT cheap.

I hate it... I live a very nomadic existence... All my stuff is in boxes. I know not making a jump to overextend on a depeciating asset makes dollars sense.

[regarese]

And some people are willing to buy something that will put them in a tight situation for a little bit but they have what they want. Our house is one that we will never have to move out of. It is not a mansion and was not super expensive, but the first couple of years is a little bit of an adjustment and the budget is a little tight. However, we bought it knowing that our salaries would increase while our mortgage would not.

A lot of people buying their first home are also not used to paying for everything so the "I'm going to have to work 2 jobs" may have just been a little exaggeration regarding the big difference between renting and owning.

[metro1026]

I've never rented. I have friends who rent. I never want to rent because it seems like all your money is just going away. Too much of my money goes away into gas, car, food, etc. I'd rather buy something so it feels like my money is going into a good investment and GROWING. Rather than pissing it into the wind on renting.

[joe moving]

kim brings up a great point. Who was doing the math over there?

[neekah18]

No idea I just saw the numbers posted on the screen.