Im 19 and Im trying to decide what to do with my money. Right now I have about $10,000 just chilling in my savings. I was pretty set on moving out and buying a town house around my neighborhood. Ive been looking for months, but to no avail. I finally recently won on one I like, and it finally hit me. Am I doing this too fast?

I loved my s2000 and I really miss it. One day, the naughty side of me decided to go to my local Honda dealer where I keep seeing this CPO red ap2 for sale. Great price. I just wanted to see it, Trying to resist being talked into buying it. Long story short, of all people, the salesman says this to me (After I told him I really wanted it, but couldn't because Im buying a house): "Why are you rushing into obligations and stress that you don't even need at your young age?" I'm sure that line was just a sales tactic for me to buy that car, but that really did get me thinking...

I dont think Id be to stressed. I make good money for my age, Im a lead technician for Sprint and Im going to school as well.

I dont know, tell me what you think guys, am I rushing this too fast? Should I just buy another sports car and enjoy my youth? Am I too young to think about mortgage when I get older...?

 

Ok, this may sound harsh, but:

What's a man who has a good job and a future (in school) doing listening to a used car salesman for life advice?

Do what you want man. I wish I had the ability to buy property at 19. As SOON as I had the ability I did and I made a shit ton of money off of it.

 

The market is down, interest rates are down, and there are huge incentives to be a first time home buyer right now. If you're in a position to buy a first house right now you'd be nuts not to do it.

There's an $8000 tax credit right now for anyone qualifying who buys their first home. Let me say that again, you will save $8000 in taxes if you qualify and buy your first home while this program is still running.

Remember also that the interest from your mortgage is tax deductible. If you're in say the 25% tax bracket and your mortgage is $2000/mo (nearly 100% interest in the first year) it'll save you $6000 on taxes in your first year, assuming you're itemizing deductions.

Get into the property ladder now, it's a golden opportunity.

 

$10,000 will get you neither a condo, nor an S2000.



Buying property while you're still in school doesn't strike me as a wise idea. What's going to happen after you graduate and you get a job offer in another city?

I know I'm in the minority here, but I think financing a car as frivolous as the S2000 isn't a wise idea either.

It won't be any fun, but I'd recommend minimizing your expenses and continuing to save until you graduate from school and can better forecast the next few years of your life.

 

Nor an M3 or a Cayman S like you were asking about before...

 

0 down got me my first house.

 

He could be looking at a nice townhouse on 10 mile road in Detroit...

Seriously, $10k is enough to get past 95%LTV on a decent condo depending where you live. Yeah, it'll get you a shitty mortgage, but rates right now are ridiculous, there's big tax incentives, and assuming he lives there until he finishes school in 3+ years he's likely to make good capitol gains.

I say if you can buy a place with that down payment that gets you a mortgage that you can afford and isn't drastically different (in terms of monthly costs) than renting in the same neighborhood for a comparable place, there's no good reason not to.

 

Where do you live? In some places, $10,000 can actually be a 10% downpayment on a house, while in other places, it's nothing.

 

[QUOTE=i_heart_my_DB8,Dec 16 2009, 02:14 PM] $10,000 will get you neither a condo, nor an S2000.



Buying property while you're still in school doesn't strike me as a wise idea.

 

Yes that was the dreaming retarded side of me. At one point I actually really wanted to dump all my savings and trade in my car.