Green Eyed Saving Diva?!
I always feel a tinge of jealousy when my friends talk about going house shopping or looking at properties. However, my friends that are property owners are also married (and much more settled than I am). Some of my single friends have gone house/condo shopping, but no one has taken the plunge...yet.
I received a text message from one of my friends on Friday that she had big news and would call me this weekend. Within the first few seconds of the conversation, she blurted it out that she had bought a house. She is moving to a new area for residency and decided to purchase a house instead of renting. She only put down $2,000 for a down payment and predicts to spend another $3,000 for closing costs. She purchased the house for $135,000 and expects her monthly mortgage to be about $880.
I feel like I've been wasting my time saving for my down payment. I realize that I'm not ready to purchase a home because I don't know where I'll be in the fall. I still have not made up my mind about which graduate program I'm going to attend (leaning toward a school in the South). I also know that I won't be able to afford a home on a graduate student's stipend. However, I'm feeling left behind in the race to become an adult.
15 comments:
I feel left behind too.
I don't think you have been wasting time at all! Especially if you are planning on going to graduate school, buying a house before you have a steady job and career where you will stay in one place for a while is a silly idea. Maybe you don't need $30,000, but if you continue to save until you are out of graduate school and ready for a home, even a $10,000 down payment will be so worth it when you only have a $500 dollar mortgage or maybe only a 20 year instead of a 30!
Sometimes I feel the way you do...but then I remember that I've been given a different set of cards than many people. I don't have a family that can hand over property for example. I keep plugging away at saving money though day dreaming about the day when I will be able to buy some property.
You'll get there, lady, we're just working at a different pace than other people. I can really empathize with feeling left behind, I can only say that I take comfort in knowing that it's just different for everyone.
My friend's family is looking at buying another property for his sister to live in during college, and then they'll consider gifting it to my friend as a starter home. Jealous? Yeah, a little. At the same time, I know that he does not want to have to walk to his parents' tune to get that house. I also know that that's a great example his parents are setting for me. I look forward to being that financially secure, someday. And I'll do it on my own terms. That's something we can be proud of.
Don't feel behind! You are going to graduate school which is a fantastic thing many people only dream about. Who cares if that means you postpone buying a home for a couple of extra years?
Besides, odds are that home prices will be exactly where they are today when you graduate from grad school anyway (if not lower in some areas), so really you are not losing ground at all.
Buying a home is only a good idea if you're willing to lose some of your flexibility and freedom to pick up and move, take a new job offer, or take a lower salary for a cool new job that comes your way.
I own my own condo, but sometimes I miss that freedom. Buying a house is like marriage in a way. The grass always seems a little greener no matter which side you're on. Enjoy the free life while you can. :)
I'm dying to purchase a home too! Unfortunately, I live, work and go to grad school in New York City, and I am definitely NOT going to buy a home there. So, like you, I'm not quite sure where I'm going to be in the next couple years so must wait before jumping on the house-buying wagon. Hang in there, it'll happen soon enough. At least that's what I keep telling myself!
You know that I've been reading your blog for SO long now, and you've always amazed me with how committed you are to your goals.
We all go about life in our different ways, and you'll eventually become a home owner, but you will do it at your own pace.
Sometimes it's hard to keep that in mind when we see our friends going off, getting married, starting families, buying houses, etc. ... I always get that "left behind" feeling ... but I know that eventually, I'll get there too. So just enjoy the journey there! :)
Kind of cheesy, yes. But I believe in you.
I thought long and hard about full time grad school, and one thing I recall reading was that most grad students will feel "behind" compared to their peers. But so what?
My goals are different--I want to save cash in case I want to buy a home, but I really have no desire to get tied down just yet.
But sometimes I feel behind too. All my close high school friends are married. Few have houses yet, but they are just around the corner. It is weird.
You will get there. When you are done with grad school, you will have the freedom to purchase wherever it is your heart desires!
I am going to sound like Debbie Downer, but I just have to say this... Because you save for a down-payment and because you're responsible, you'll never have to worry about owning more to the bank than your home is worth. If everyone was as responsible as you are, we wouldn't be in this mortgage mess....
Besides, you're young and have a great career ahead of you. Do you really want to be tied to one place and not being able to move to another city/state if the opportunity arises?
I'm also impressed at how focused you are on this goal.
But mathematically it's often not that great of a goal. My rent barely covers the taxes, the condo fees, and the lost interest on the locked-in cash. That's just the way it works in my city.
I think about this often. I'm the only one at work that doesn't own a house--sometimes I feel like they are way ahead of me. But I'm also the only one who doesn't talk about crap like hardwood floors and water heaters and other things I don't care about all the time.
I think you're being super mature with waiting. You have a great plan (graduate school, saving for a down payment) and it's all going to pay off for you in the end. How many young women go out there now with a $30,000 down payment? I bet the banks can count on one hand the number that do......
Hang in there!!
if it makes you feel better, buying a condo was one of the worst decisions i've ever made. :)
i see it like the rush to get married - it's such a big decision, you can't give in to peer pressure!
I feel the same way! My friends are all settling down and buying homes and I'm not sure where I'll be in a year or two. I want to buy a place, but buying in the area where I live is so expensive. Meanwhile, my rent is skyrocketing.
Saving for a home is a smart move, though. You don't need to buy a home now. One day you'll prob want to buy one. The more money you have for a down payment, the better. So there's nothing wrong with saving now!
Wow housing is cheap where your friend lives! I could afford that if I didn't live in San Francisco.
Our goals are different among friends. We can only focus on what is best and let the rest come with time. Good luck with school!
Are you able to say which state in the South? Georgia?
The timing may not be right now, but keep saving that money. You will need it in the future.
Best Wishes,
D4L
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