Should I buy this house?

IBM
lonely gir

IBM

PRE
Blue Origin
lonely girmore
Nov 14, 2018 46 Comments

I'm 25 and have 150k in liquid cash saved. I'm wanting to buy a house priced at 675 in Orange county. My parents are putting down 200k on the home for me. I would most likely rent out 1 or 2 of the spare bedrooms. My mortgage would probably be close to 3200 a month including taxes. Is this a smart move for me?

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TOP 46 Comments
  • New pqmzy
    Do it before your parents change their minds
    Nov 14, 2018 0
  • Vlocity FTJU
    I wish someone had offered me 200k when I was your age.
    Nov 14, 2018 0
  • Facebook
    jar2018

    Facebook

    PRE
    Apple
    jar2018more
    If your parents are helping, then why not?! Do it!
    Nov 14, 2018 8
    • Facebook
      jar2018

      Facebook

      PRE
      Apple
      jar2018more
      Wow you’re so lucky. Research the area and find out if the house can be rented. I’d put your 150k savings into the house too and have a very cheap monthly payment. Get a 15 yo fixed mortgage and you’ll have a nice place for passive income.
      Nov 14, 2018
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      Why a 15 year fixed?
      Nov 14, 2018
    • Facebook
      jar2018

      Facebook

      PRE
      Apple
      jar2018more
      Cheaper interest rates and it forces you to pay it off by the time you’re 40.
      Nov 14, 2018
    • POWER Engineers / Other
      NtTy44

      POWER Engineers Other

      BIO
      Ruler of my universe.
      NtTy44more
      Definitely 15
      Nov 14, 2018
    • Microsoft / Eng
      Ms67897

      Microsoft Eng

      PRE
      Amazon
      Ms67897more
      I have a 15 year mortgage on my home and I think that was a good decision. You pay way less interest and pay it sooner. If you can afford the payments on 15 year term , I would say go for it.
      Nov 14, 2018
  • Apple Wapple
    Do it bro, not everyone was born with a 200k silver spo*n ):
    Nov 14, 2018 0
  • Intel 1jpy2usd!
    Housing market will crash in the near futures so that means...are you able to hold on to this long enough to get your equity back when you decide to sell? Say ~10 years at least
    Nov 14, 2018 2
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      I'd like to keep it forever and rent it if I can afford it later down the line of course.
      Nov 14, 2018
    • Intel 1jpy2usd!
      Then you have nothing to worry about, short term market fluctuations can really hurt highly leveraged individuals so as a long term holders it won't impact you.
      Nov 14, 2018
  • POWER Engineers / Other
    NtTy44

    POWER Engineers Other

    BIO
    Ruler of my universe.
    NtTy44more
    Can I ask why 675 house? Assuming no cheaper options?
    Nov 14, 2018 4
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      I really like the house. Its priced 675.
      Nov 14, 2018
    • Cornerstone Booolah
      $675k in Orange County is a cheap house.
      Nov 14, 2018
    • POWER Engineers / Other
      NtTy44

      POWER Engineers Other

      BIO
      Ruler of my universe.
      NtTy44more
      I’m in Texas where you can get a 5000 square foot house on two acre lot for that, maybe less.

      Assuming that you think it will appreciate and you won’t be house poor (paying mortgage and insurance without money left for fun) than go for it
      Nov 14, 2018
    • Cornerstone Booolah
      Meh, the whole Texas vs CA thing. Wages are not as high, and the general population far prefers a climate/region like LA or SF. Never a good comparison.

      CA prices are crazy and they always will be.
      Nov 14, 2018
  • Amazon
    AmOrca2019

    Amazon

    PRE
    Amazon, Startup Shell
    AmOrca2019more
    Buy it dude..You will be fine in the long run
    I wish someone had told me when I was your age
    Nov 14, 2018 0
  • Vlocity FTJU
    And how do you know it will crash??
    Nov 14, 2018 2
    • Uber doo
      he's an economist
      Nov 14, 2018
    • Microsoft twkh55
      He has the Intel on the economy
      Nov 14, 2018
  • Vlocity FTJU
    Yes. No brainer.
    Nov 14, 2018 0
  • Intuit FI/RE🚂
    Don’t know if I’d accept 200k from my parents though and be beholden to them. Now you’re putting money in between your relationship with them.
    Nov 14, 2018 2
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      Im beholden to them regardless their my parents.
      Nov 14, 2018
    • Intuit FI/RE🚂
      What if they decide they want/need the money back? Would you sell the house?

      It’s going to be a gray matter, even if it was a gift.
      Nov 22, 2018
  • Lyft / Eng Damn Son
    Economically it’s a solid option to buy. You build equity on the house instead of throwing away money with rent. The trade off for renting is having the freedom to just pick up and move somewhere new if you felt like it. At 25 you might be inclined to move around.
    Nov 14, 2018 0
  • Intuit FI/RE🚂
    A house in OC for 675k? You must mean a cardboard house!
    Nov 14, 2018 3
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      Lol it's decent. far from a 6 bedroom beach front
      Nov 14, 2018
    • Intuit FI/RE🚂
      Seriously though like how many sq ft is this house, what’s the lot size?
      Nov 14, 2018
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      Around 2000 sqft 4 bedrooms a nice size back yard good for entertaining that's why I like it.
      Nov 14, 2018
  • MINDBODY DBte62
    Think of following questions and then plan: if housing crashes, will you be shit scared and want to sell the house or see it through? Latter is better.
    What are other anticipated expenses in coming years? Getting married, etc. can you manage those with remaining savings? The best thing of course is to keep monthly payouts at a minimum by renting, high down payment etc. and like someone said do find out if you’ll be able to find renters or not.
    Nov 14, 2018 2
    • IBM
      lonely gir

      IBM

      PRE
      Blue Origin
      lonely girmore
      OP
      I don't have a girlfriend but i'd like to get married so I guess that means wedding +ring etc. Maybe a new car down the line. I have no debt. Anything else I'm missing? I have 150k saved I might put 10k into the house right away I want to build a new fence. I max out 401k however I do live a nice lifestyle I think i eat out at least once a week.
      Nov 14, 2018
    • MINDBODY DBte62
      Don’t forget an emergency fund.
      Nov 14, 2018
  • Imgur DumpsterFi
    Go it for OP. All the odds are you in your favor from everything you have stated.
    Nov 22, 2018 0
  • Facebook public2
    Yep, consider a nicer one though.
    Nov 14, 2018 0
  • Airbnb jim.hodlen
    wish my parents did that for me when I was your age. instead I made the reverse move😂
    Nov 14, 2018 0
  • Cornerstone Booolah
    It would be foolish not to buy in your situation. Real estate bubbles are driven by overbuilding or overborrowing and you don’t have either one right now.
    Nov 14, 2018 0
  • Microsoft / Product @zzz
    Yes, this is an absolute no Brainer. Go for it.
    Nov 14, 2018 0
  • Google Vdzlw
    Yes especially if you are renting the other rooms and don't mind
    Nov 14, 2018 0
  • Sprint lxCy58
    I wouldn’t tbh, it’s cheaper to rent and home prices are going down. I’d keep saving for now if I were you.
    Nov 14, 2018 0