This seems like a really weird and silly thing to say, but ah well. I think that when I move out, I'd like to do it into something that I can own, like a house or condo or something. I don't have huge requirements, but I would like something that would be worth going home to. And I don't want to kill myself to try and pay it off.
Do other people think that I am nuts for thinking about buying something like a house? Or do people just alway think that I am nuts? It's hard to tell...
I just feel that it's getting to be that time to actually move out of my folks house into something of my own.
Listening to: Jefferson Airplane - Don't You Want Somebody to Love
Honestly, I would rent first. You don't have the down payment or the steady job to own a place quite yet. Unless you find a cosigner, you probably won't be able to get a mortgage.
ReplyDeleteBesides, there are a lot of benefits to renting a place rather than buying. Some people see buying a home as a good investment, but it's actually a poor one (read The Wealthy Barber for reasons why). Besides, owning a home is much more expensive, more maintenance, which equals more hassle. Renting to start will be a much smaller jump from home and easier to handle.
On your jump out, make sure you account for all of your expenses. Some rents include hydro and water, some do not. Don't forget to count cable, phone, internet, parking in your budget. These can all add up and surprise you later.
Some people fear putting their money into the black hole of "renting" but it's actually much less risk than owning and it lets you stay flexible. You can move a lot easier (after a year on a lease you usually go month to month afterwards, with 60 days notice) than owning and try out different places or neighborhoods to find out what you like.
Ask your parents about all of the expenses they have to pay for their place, and them up and compare it to renting a modest place for a few years. The difference in cost may surprise you.
Just move out!!!
ReplyDeleteSeriously though. Once you move out, you will realize that you like it. I'm sure of that. But watch out for those expenses. Many people who have never lived alone fail to see how expensive it can be to support yourself. You'll come to love no-name brand stuff in no time.
Provided you are able to keep working, you should be able to support yourself no problem. There are some nice places for pretty cheap in this city. Rental rates are down, so you should take advantage.
Also, if you come to my building, and tell them I sent you, and you move in here, I get $50. So, yeah, this would be a wonderful place for you to live. :P
I think that you should have moved out 4 years ago, freeloader.
ReplyDeleteHow do you plan to get enough money to buy a residence? They aren't as cheap as you think. I'd love to move into a condo, but they are expense. You can ask Aleks, as his gfriend just bought one for the two of them. I'm sure he'll be spending quite some time to pay her back.
I think that you should rent first too. If you want to buy, then you'll be saving for the next 2 years to do so. At least if you rent, you'll get to take your first step into Manhood in a month. Many people consider getting married at our age (the crazy guys and barbie-doll gals anyway), and you're still living with ma and pa. I'm going to start calling you Jimmy soon, if you don't get going. Haha.
Just something interesting not EXACTLY related to your situation...
ReplyDeleteMy folks bought a condo in Kanata about 5 years ago "for" my brother. Long story short, my parents took out a mortgage and my brother pays them rent equal to the mortgage payments. This sort of avoids the "rent black hole" concept and my bro gets a decent place to live close to work.
Plus, the value of the condo has almost doubled since they bought it, and they're now kicking themselves for not buying two... (I'm kicking them too)!
Anyhoo, I'm not saying you should ask your folks to buy you a condo (hee hee), but it's just a good idea I thought I'd share...
As for your situation Jim, ask around about roomies. Moving out on your own doesn't have to mean literally living by yourself. You and two friends in a 3-bedroon apartment is mucho cheaper than just you in a 1-bedroom or bachelor...
Having said that, I don't think there's any shame in staying at home for a little while, while you get yourself on your feet. If there are things that you want for your future that you need to save up for (ie. a house), you will get there much faster not paying for room and board. There's a difference between doing that and "mooching" because you're just plain lazy. If you're able to get ahead of the game by not moving out right away, more power to ya!
hee hee... thanks for the advice.
ReplyDeleteBut most of you made one assumption: that if I live at home I will not be paying room and board, insurance, ... I'm actually surprised that I have not yet, but I think that I will be paying in less than a month.
Now, if my folks want to charge me something that is about what I would be paying for a place in the city, I'd definally move out. I don't spent too much time at home anyways since I am always in the city (or at least not at home).
This goes back to my older discussion about living at work vs. home.
http://www.beernut.ca/jim/archives/001595.html
Updated url
Deletehttp://j-i-m-s.blogspot.com/2004/05/living-at-work.html
The thing that I forgot about back when I was comparing renting and buying was property taxes, which you don't have to pay for if you rent ... it's not just the mortgage payment.
ReplyDeleteAlso, if your stove breaks, you pay for it. If your furnace breaks, you pay for it. And on and on. You need some float money to pay for breakages, leaks, insurance (fire, flood, theft, etc).
"If there are things that you want for your future that you need to save up for (ie. a house), you will get there much faster not paying for room and board. There's a difference between doing that and "mooching" because you're just plain lazy."
ReplyDeleteI have an improved idea - live with your parents and save up until you can affort a mansion, a pool, and a Ferrari. It may take you 40 more years, but hey, you'll be living the lifestyle of the rich and famous once you do move out.
"If you're able to get ahead of the game by not moving out right away, more power to ya!"
Hahaha!
21 maybe, but i think that being ~24 and still living at home is getting a little lame, especially since you have a full-time job. Does your mom still do your laundry? Cook your meals? Wipe your ass? I think that she already has a husband if she needs someone to do that stuff for ;)
That's a great point, Scott. Jim, you should get married! :P haha
ReplyDeleteI guess it's a matter of choice really. You will definitely save money faster if you stay with your folks, but on the other hand there is something really appealing in living by yourself: you can bring friends and girlfriend(s) (or boyfriends if you're person of that orientation) whenever you want, walk totally naked in your own place like all normal people do, watch as much TV as you want and don't want, and many other little things that you cannot do if you're at your parents' place.
ReplyDeleteAleks: good point there, but Jim just one warning: once you get that freedom, you'll never want to go back. :D
ReplyDeleteThat includes walking around naked. ;)
I also vote that Jim gets married! Let's make it democratic.
ReplyDeleteI'm another one voting for Jim getting married. But, while we're at it. I think Scott should get married too. I mean, he's been with TL for what? like 6 years. Time to make a commitment there.
ReplyDeleteOne thing to think about in the renting vs. buying argument is where you're going to be moving to and the associated costs of each.
ReplyDeleteIe, renting is more expensive the closer you get to downtown, whereas I could probably get a decently-sized bungalo in Kanata for a few hundred dollars more a month than I'm paying in rent right now.
You guys might disagree with me, but one thing that I would definitely recommend is living on your own (as opposed to with a bunch of roommates) at least for a little while. If this was four years ago, then yeah, you'd prettymuch have to have roommates just due to the costs. The reason I'm saying this is just to be out on your own and be able to define your own personal space without other people constantly being in it.
Scott: You're right about one thing, that getting married is democratic. But it's a democracy of two.
ReplyDeleteThe decision to get married is not democratic of two. It's a dictatorship. And you know which side represents Hitler in the decision.
ReplyDeleteAnd, Kibbee, i think that you should get married. You act like you are anyway.
ReplyDeleteBrooohahahahahahahha!
Man, I worried for you if you think that a relationship with someone would have a role of "Hitler".
ReplyDeleteUnless the other role is Franklin D. Roosevelt and Hitler is getting spanked. Not that I know about that kind of thing...
ReplyDeleteRyan, I really did *NOT* need that picture in my head..
ReplyDelete(Make it stop!!!)
In my opinion, if you're interested in moving out and you expect to have roommates in a rental situation, then you might as well buy. You can buy a house with 5% down, although you would probably need a cosigner (but relatives are great for that if they trust you).
ReplyDeleteYou get roommates and they pay your mortgage for you. Depending on how many roommates you want, their rent payments can be enough to pay all your bills and you live there for free or very cheap. I paid $200 month in "rent" to myself to cover the monthly difference in mortgage and bills from what my roommates' payments didn't cover.
Get a 3 or 5 year term mortgage, sell the house at the end of that time, and you'll have a profit from the house appreciating in value, plus what your roommates have paid down on the mortgage for you. Use that profit to fund your next, totally on your own, living arrangement.
It's easy to sell a house in Ottawa these days, and it should remain so for the next couple years, so you don't really lack flexibility there. And as for houses being a poor investment ... I bought my first house at 20, had it for 3 years, and sold it last year within 3 days of it being on the market for a 40k profit. And hell yes I'm bragging, but it's really not that hard. I'm buying my next house this week.
It's a huge responsibility, but if you don't mind that then it doesn't matter. If you purchase a newer home, you have little to worry about furnaces breaking down or new roofs in the few years you'll own the house.
Of course, if you're not interested in having roommates at all, then it's probably a better idea to rent at this point.