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Personal Finances / Buying or Selling a Home


Subject:  Re: How did you do it? Date:  11/29/2000  4:22 PM
Author:  brewer12345 Number:  15415 of 128887

Hah hah hah! You say your 1 br is 800sf? My 2 br is 800sf!

Anyway, if I were in your shoes, I would skip it. The debt load you are carrying is too high for comfort (although it wouldn't bother most lenders) and you really need a sizable downpayment. However, the biggest reason I would pass if I were you is that the real estate market is too high and you are likely to be sitting on a loss if you buy now. Rent goes down when the market does; mortgage payments don't. I'm in a different area than you (NYC), but when I bought my condo 2 years ago, real estate prices were OK for the area I was interested in. Since then, prices are up 80%. If I were looking now, there is no way I would buy in this market.

How did my wife and I save up? We relocated from Cleveland to NYC. We weren't making it in Cleveland (crappy job market) and we had about $200 in our checking account and two cars with loans. We ended up living in my parents' house for about 20 months (lots of fun as a married couple, I assure you). While we were there we sold one of the cars, found OK jobs, and saved like crazy. When we had enough cash for the downpayment, we started looking, but it took a few months for us to find the right place and complete the transaction, so we ended up saving a few extra grand which turned out to be really necessary. If we hadn't been living rent free with my parents, there is no way it would have happened so quickly.

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