How do you buy a house by saving?
Given the current house market, I have a feeling that the raise in TC cannot exceed the increase of house price. How does everyone manage to do it?
What is your TC and how many years have you been working?
Take stock of your expenses as well. Look for a balance between commute (how far can you commute) and housing needs (how big of a house do you really need).
You afford a house get investing. Saving just means losing 2% a year.
Your tc should be increasing faster than the housing market especially in this engineer market.
Your comp would have to increase by 292k a year to match the market...https://www.bloomberg.com/news/articles/2018-04-09/home-values-are-rising-by-800-a-day-in-san-jose
In Seattle, hot places grow 15-20% every year. Not sure who can get a raise like that. Maybe super star
You only need to put a down payment which is 20% of the cost of the house. I saved and bought. My TC was almost laughable compared to the numbers being thrown out here. Be patient. If an amazon employee is complaining of not being able to buy a house then you must have just joined the workforce. Look at the competition around you. Do you think you can outbid their rsu comp and fuck you money?
Bought a townhouse 3 yrs ago and sold it last year to get a single family house
Bought my first house in not so great area but bought for under $150k 12 years ago. After a few years, my TC and stock awards allowed me to buy a 2nd home close to $500k. Sold it, rented it the 1st one after living there a few years and bought house #3 for close to $1M with down payment entirely on stocks. Rinse repeat. I am not rich by any means but live well.
Decent moves for being on H1B for life.
In general, think outside the box and question whatever preconceived notions you have about the properties you scratch off your list. We just bought a fixer-upper in First Hill that needed about $45K worth of work. It’s in a co-op building, so it was restricted to owner-occupied buyers (great thing). The purchase price plus rehab costs are about 75% of the after repair (market) value, so we were able to add 25% of equity by taking on the project. This is just one example and it’s not everyone’s cup of tea but think outside the box and be willing to take a chance on something ‘different.’
Sounds really interesting. Where do I start to get this info? Like estimate of value for rehab?
Buy one that you can afford now. Hope that the value continues to rise. Sell this one in 3 years. Make that extra cash plus the savings you generated in 3 years on your income and use part of these funds for a dp on a better house.
This! You can’t compare your first house to what your parents have now, that if nice, they’ve probably worked on for now. You also need to think about commuting until you can sell and get something better. Always start with the worst (or at least NOT best) house on the block, fix it up a bit and then move up and on.