- GoldenHas donated $ to the upkeep of GPL
Home ownership is not for everyone. I bought my first house when I was 21. I had a dog that I refused to get rid of and couldn’t find a place to rent to me with it, so I just bought a house. I have always been a jack of all trades, master of none, so the maintenance and stuff like that didn’t bother me. To me, it was way better than paying rent. Back then you could finance 100% of your home (80% of the sale price for your mortgage, 20% home equity loan to avoid PMI). I bought my first 4 houses that way. My first house, I paid $27,000 for, sold it 2 years later for $56,000 after 2 days on the market. My next house I bought for $107k and sold it 10 months later (relocation for work) for $126,000 after 1 day on the market. I have been lucky for sure. My 3rd house was a buyout for a relocation again in 2007 right when the market started to fall. I got lucky getting out of that one when I did. It sold 7 months later for $50k less than I got for it. Then I moved to Fargo and the housing market is not like anywhere else. Home values have never dropped and most recently there was a shortage and people were selling for $30k-$50k over market value. Just dumb. It has stabilized now, but a house down the street from me sold 2 years ago for $279k, then was sold 9 months later for $319k.
As for the 20% down mentality, while I understand where DX is coming from, I wholeheartedly DISAGREE with that. Its all about debt to income ratio and when you move around for work, you often don’t have 20% to put down. On a $200,000 house, who has $40k laying around? Not many people. First time home owners might be a little different, but the blanket statement is a bit antiquated.