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9/22/2017 12:11:25 AM
Posted: 4/10/2006 8:43:55 AM EDT
So this friend of mine is buying a house.

A little background, Guy has a decent job, makes maybe 33-35K a year. Not much room for growth besides COL raises and pay increases. Because of...

No college degree (has some classes under his belt but thats it)

Just offered (and they accepted) for a house in the $110K range. (don't gasp, remember we are in oklahoma)

So this guy has a room-mate arrangement right now, where the rent from the roomie helps with the payment.

He also tries to act all superior in the fact that he's making good investments. Even though almost anyone can buy a house/

Is he setting himself up for failure.

I think that the money for the house would be better spent on a college degree, leading to higher wages, leading to a more financially stable future.

Any thoughts?
Link Posted: 4/10/2006 8:47:20 AM EDT
not everyone wants a college education and are happy with what they make and do.

if he isn't over extended finacially, shouldn't be no problem affording the house.
Link Posted: 4/10/2006 8:48:16 AM EDT
Link Posted: 4/10/2006 8:51:15 AM EDT

Originally Posted By hanau:
not everyone wants a college education and are happy with what they make and do.

if he isn't over extended finacially, shouldn't be no problem affording the house.

I realize that it may come off that way, that I'm sounding high and mighty.

I Meant to clarify, that where he works is a highly degreed place. (city gov't office) so if he wants a better job there, (which he likes working at) he will def. need some sort of degree, he got the job he has now (network tech) because of an in he had.

I also wonder about the reliability of having a room mate to help pay the bills...

Of course I can't say anything to him, cause he will get all butt hurt.
Link Posted: 4/10/2006 8:52:36 AM EDT
[Last Edit: 4/10/2006 8:53:14 AM EDT by dolanp]
I'd say he is close to pushing the bounds of what his salary can buy him, but that he can probably cut it if he stays smart. Never get into a house that you couldn't afford all by yourself if you needed to.
Link Posted: 4/10/2006 8:56:46 AM EDT
Home and land are some of the best investments that you can make. I don't see the problem as a housing payment for 110K at 6.25% is $677.29/month on 30 years.
Link Posted: 4/10/2006 8:57:57 AM EDT

lots of variables, but a house in an appreciating market, roommate or tennant in a basement apartment, and a stable city job, sounds like a smart play to me. once he gets a year or so of payments under his belt and feels comfortable, he can still go back to school or take classes.
Link Posted: 4/10/2006 8:59:07 AM EDT
It's not the house that will kill him, it's budgeting for all the utilities and "stuff" you need to go into a house. If he's credit smart, he'll be ok. If he's shaking the money tree from Visa, he'll be screwed in 6 mo.
Link Posted: 4/10/2006 9:02:09 AM EDT

Maybe he's smart enough to cut it, especially if he's frugal in other areas of his life.

I knew a few guys who bought (modest) homes right out of high school (not college) and have done very well ever since. It's not so much how much you make, but how you spend (invest) it.

I can't tell you how many people I know that make big $$ that don't have a pot to piss in or a window to throw it out of.

Link Posted: 4/10/2006 9:02:50 AM EDT
I've seen it work well (former neighbor), but can also spell desaster as well. So many variables.
Link Posted: 4/10/2006 9:03:13 AM EDT

Originally Posted By lordtrader:Although there are some select few that are bright enough and in the right situation to make 6 figures without a college diploma.

I know a bunch doing that right now. No college degree (some with no college) and making 6 figures a year. They aren't tipping the scales with their intelligence, just damn good at what they do.
Link Posted: 4/10/2006 9:03:35 AM EDT
The real liability here is the reliance on the room-mate to make the mortgage payment. If he's going that route he at least needs to get a deposit of some sort from the roomy that he can keep in the bank to assist with payments until he can replace that tenant.

Re the college degree, unless he has a plan of action for the degree or a career path then it would be wasted money right now. Everyone matures at different rates, in the future as the house increases in value he can re-fi and use that money to go to college.
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