Wants to buy a house?
Brothers girlfriend wants to buy a house. She said it would cheaper than paying rent. I said you have to fix everything, and she said yes, true, but rent in our area would be at least 700-800 for a decent place that is 2 beds one bathroom.
That there was a house that was 75,000 in a good area. There was another house for 120,000, and it was cute with a nice kitchen, garage, and yard. 1 1/2 baths.
She is not doing nothing right away, but her bank is going to talk to her about her overpayment, credit card, and what she needs to do get a house. She said her friend got a house that was 120000 with no money down, and this payments are just under 900, it's a 3 bed, 1 bath, with a garage, big yard. Its just a little out dated.
Explain why she thinks this is a good idea.
- Elaine MLv 71 month ago
I went from an apartment to buying a house on my own. $5,000 down, mortgage was $149 a month. Plus I had a car payment I was making as well. My income that year, part time, was $22,000. The bank was ok with it.
- ?Lv 71 month ago
Because she understands that in the end, she has equity in the home. She can sell and get money back, as opposed to renting, where you cannot. There honestly are not too many things that go massively wrong with homes on a regular basis. The maintenance is not crazy.
- A HunchLv 71 month ago
It doesn't matter why "she" thinks it's a good deal (I wouldn't in her shoes), if she doesn't have a job, the bank is not going to agree with her and the conversation will be very short.
Rent in your area is $800 and you don't have to pay for maintenance.
A property for $900 where you have to pay for maintenance/repairs and you lose flexibility = is not the same cost.
To afford a $900 a month house payment, she needs to be earning at least $2700 a month.
- MaxiLv 71 month ago
Only she can explain........... and she sounds clueless so don't expect to get an answer that is logical!
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- ScottLv 71 month ago
The main reason is you are building equity which you can never do in a rental.