For People Who Own Their Own Homes/Property

[KAMALAGRAD]

This is one thing I've been thinking a lot about lately for the future. However, with being six figures in student debt (though at least low six figures) it doesn't seem possible maybe ever.

 

So for people who have been able to buy their own homes how were you abe to do it and how did you get around obstacles like debt?

Edited July 9, 2014 by KAMALAGRAD

[spunky]

This is one thing I've been thinking a lot about lately for the future. However, with being six figures in student debt (though at least low six figures) it doesn't seem possible maybe ever.

 

So for people who have been able to buy their own homes how were you abe to do it and how did you get around obstacles like debt?

 

first of all, sorry to hear about the whole debt thing. this is truly a growing problem that nobody seems to be addressing quickly enough and will blow up on our faces.

 

i own my condo here in downtown Vancouver (Canada). there were two things that helped me out a lot. first,  my undergrad degree is in  STEM area (i did a double-major in Psychology and Mathematics) so I was able to find a work placement right after graduation and before i decided to proceed towards graduate school. i also chose my area wisely because as an undergrad i became very much aware that even professors with PhDs in Psychology are not trained very well in research methods and people in my program in Math/Stats had little interest in helping them out. so i figured that was a very big market where people were doing little incursion. 

 

the second thing i did (along with my husband) was opening an online business on eBay/Amazon. i had been doing this on- and off- as an undergrad so i had already built some reputation on both sites and once i graduated i just pushed myself to become really good at it and that has become my primary source of income. 

 

i think the combination of being self-employed + having and 'in-demand' major helped me save enough money to finally move out of the house we were renting and into our own place. 

 

as of today, i've managed to pay off all my debt (except the one i incur month to month on my credit card, which i always pay in full) and intend to stay that way. 

Edited July 8, 2014 by spunky

[TakeruK]

The people I know who own their homes in grad school have most of the following:

 

1. No student debt

2. Low cost of living area (i.e. low home prices)

3. High stipend (compared to cost of living)

4. Some help/co-investment from family (either having two incomes and/or having parents help with a downpayment etc.)

 

The only thing I have going for me is no debt (thank you Canada) and two incomes as my spouse also works. I don't imagine being able to buy even a townhouse in our hometown (one of the most expensive markets in North America) until our family income at least passes the $70k/year range though. This might happen during my post-doc years, but the transient nature of post-doc might mean it's tough to commit to buying a home. At this point, I think the best plan for me is to wait until we've found a location that we'll stay for at least 4-5 years (grad school was one such scenario but we don't make enough to own a home in this current city!). Meanwhile, we'll just keep trying to save as much as we can (at least there's no debt!).

[AAdAAm]

first of all, sorry to hear about the whole debt thing. this is truly a growing problem that nobody seems to be addressing quickly enough and will blow up on our faces.

 

i own my condo here in downtown Vancouver (Canada). there were two things that helped me out a lot. first,  my undergrad degree is in  STEM area (i did a double-major in Psychology and Mathematics) so I was able to find a work placement right after graduation and before i decided to proceed towards graduate school. i also chose my area wisely because as an undergrad i became very much aware that even professors with PhDs in Psychology are not trained very well in research methods and people in my program in Math/Stats had little interest in helping them out. so i figured that was a very big market where people were doing little incursion. 

 

the second thing i did (along with my husband) was opening an online business on eBay/Amazon. i had been doing this on- and off- as an undergrad so i had already built some reputation on both sites and once i graduated i just pushed myself to become really good at it and that has become my primary source of income. 

 

i think the combination of being self-employed + having and 'in-demand' major helped me save enough money to finally move out of the house we were renting and into our own place. 

 

as of today, i've managed to pay off all my debt (except the one i incur month to month on my credit card, which i always pay in full) and intend to stay that way. 

 

 

Where in downtown are you?

[KAMALAGRAD]

first of all, sorry to hear about the whole debt thing. this is truly a growing problem that nobody seems to be addressing quickly enough and will blow up on our faces.

 

i own my condo here in downtown Vancouver (Canada). there were two things that helped me out a lot. first,  my undergrad degree is in  STEM area (i did a double-major in Psychology and Mathematics) so I was able to find a work placement right after graduation and before i decided to proceed towards graduate school. i also chose my area wisely because as an undergrad i became very much aware that even professors with PhDs in Psychology are not trained very well in research methods and people in my program in Math/Stats had little interest in helping them out. so i figured that was a very big market where people were doing little incursion. 

 

the second thing i did (along with my husband) was opening an online business on eBay/Amazon. i had been doing this on- and off- as an undergrad so i had already built some reputation on both sites and once i graduated i just pushed myself to become really good at it and that has become my primary source of income. 

 

i think the combination of being self-employed + having and 'in-demand' major helped me save enough money to finally move out of the house we were renting and into our own place. 

 

as of today, i've managed to pay off all my debt (except the one i incur month to month on my credit card, which i always pay in full) and intend to stay that way. 

 

Thanks for the reply! Yes, the debt part is pretty bad, but I've been working to get in down and hopefully it won't be impossible to get it down significantly at some point. On the plus side I don't have too  many expenses outside of paying back my loans. Except for rent, which in my area is still way too high, which again goes back to the whole problem of housing oddly enough.

 

The people I know who own their homes in grad school have most of the following:

 

1. No student debt

2. Low cost of living area (i.e. low home prices)

3. High stipend (compared to cost of living)

4. Some help/co-investment from family (either having two incomes and/or having parents help with a downpayment etc.)

 

The only thing I have going for me is no debt (thank you Canada) and two incomes as my spouse also works. I don't imagine being able to buy even a townhouse in our hometown (one of the most expensive markets in North America) until our family income at least passes the $70k/year range though. This might happen during my post-doc years, but the transient nature of post-doc might mean it's tough to commit to buying a home. At this point, I think the best plan for me is to wait until we've found a location that we'll stay for at least 4-5 years (grad school was one such scenario but we don't make enough to own a home in this current city!). Meanwhile, we'll just keep trying to save as much as we can (at least there's no debt!).

 

I already have my master's degree so I have a regular salary rather than a stipend. I've thought about going back to grad school for possibly another degree, but have been off the idea until I get my debt down significantly. As for your four points as I factor my own situation into them.

 

1. Yes, this is the big problem. Way too much student debt at the moment.

 

2. Believe it or not I lived for over a year in NYC (where I went to grad school) and I'd love to go back. That being said I know how ridiculously priced property is there. There are actually good, reasonably priced houses in New Jersey just an hour away though, which I'd be open to exploring more when this pipe dream becomes closer to reality. Some are even under $150 K. I also wouldn't mind just having a condo or something of the kind in NYC (Manhatten is next to impossible to afford anything, but areas of Staten Island and Queens are more reasonable).

 

3. I have a salary, but even that I need to improve on. Right now I'm working on building up experience and hopefully dropping more into my savings as costs permit.

 

4. Really ouf of luck on this one. I don't have any well off relatives who would lend a hand.

 

So all in all I'll have a much harder time being able to buy property than a lot of people, but I'm still hopeful that it will be possible one day.

[spectastic]

I would imagine that journalism is a field that's being hit pretty hard. so I think it's hard to compare your situation to others', considering the industries are so different. If I were you, I'd sit down and really take some time to start making a spreadsheet of all your income and costs, month by month, and project that out to 10 years or so. It's a numbers game. the little things will add up, but 6 figures... that's a lot of money...you know this.... I don't know if you've already done this, but put that debt into that spreadsheet and hit calculate. do you think it'll be worth it to still be paying off student loans 15 years down the road, so that you can have a house sooner? 

[victorydance]

Thinking about possibly buying a condo/studio/one-bedroom apartment if I get accepted into a ph.d. program in a place like South Bend or New Haven. Have about 70K in savings and I have a family member who is willing to match that for an investment. Don't want anything to do with a mortgage whatsoever. The only reason I would do this is because with a stipend and other funding, that would put me at somewhere between 20-30K salary with relatively no living costs which would be great.

[spectastic]

I don't think the OP has 70k in savings, and I don't think journalism would offer anything close to 20k stipend for a graduate program...

 

that's not even considering the local real estate market, which is something I don't wouldn't want to mess with unless i know the ins and outs of that animal. resale value is a big deal.

[spunky]

I don't think the OP has 70k in savings, and I don't think journalism would offer anything close to 20k stipend for a graduate program...

 

i think victorydance is just talking about his/her personal case? 

[spunky]

Thanks for the reply! Yes, the debt part is pretty bad, but I've been working to get in down and hopefully it won't be impossible to get it down significantly at some point. On the plus side I don't have too  many expenses outside of paying back my loans. Except for rent, which in my area is still way too high, which again goes back to the whole problem of housing oddly enough.

 

 

aside from your salary, is there anything else you could see yourself doing that people would pay you for?  your profile says you're in journalism. maybe something with social media/youtube? or even something less glamorous like proofreading other people's work?  diversifying potential sources of income is always a good move, even if it has absolutely nothing to do with your immediate area of expertise. like i found out i'm a good online retailer, even though it has absolutely nothing to do with my degree.

[spunky]

Where in downtown are you?

 

i have no clue what this has to do with the topic we're discussing but i'm in Coal Harbour, assuming you know your way around Vancouver. 

[RunnerGrad]

My husband and I purchased a home several years ago.  These things helped:

 

1.  My first undergraduate degree was entirely paid for through scholarships.  In fact, I was making money going to school!

 

2.  I worked for several years (and built up a bank account) before returning to school for my second undergraduate degree.

 

3.  My husband is an officer in the Canadian Armed Forces, and the extra money he made while he was deployed to Afghanistan basically paid for the bulk of our down payment.  We also cashed in some RRSP's through the Canadian government's first time home buyers' plan to make up the rest of the down payment.

 

4.  We bought a house that was much lower in cost than the total amount the bank had pre-approved us for a mortgage.  We knew what we could afford per month, and it was NOT as much as the bank was willing to lend us.  So we stayed within our means.

 

5.  We bought in a relatively low-cost area (especially compared to big cities like Toronto), in an area that is growing (but is growing wisely, with a clearly defined plan).

 

6.  We live relatively frugally.  We don't have a large TV or home theatre system like many of our peers (we just aren't interested in that sort of thing).  We don't have cable or satellite TV.  We don't have any children, although we do have three rather expensive cats.  We buy as much as our food locally as possible.  For example, we have a freezer full of meat from local farmer's that raise their animals humanely and don't use any antibiotics (except when medically required) or hormones.  So our meat is healthy and cheap.  We buy produce from our local farmer's market.  We don't have terribly expensive hobbies (for example, we both enjoy distance running, which doesn't require a lot of equipment, and I also teach group fitness classes, so I get paid to work out).

 

7.  We do own two cars, but they are both small, fuel-efficient vehicles.  One is an older Honda that is completely paid off.  The other is a newer Honda, but one that gets very good mileage.  So our only debts are our mortgage and the car payment on the newer car.

 

8.  Despite the fact that I'm going into what could be considered a "professional" master's program (so not typically fully funded), I'm receiving enough money in scholarships and awards to cover the cost.

 

So, as you can see, our situation is pretty unique.  It is, however, how we were able to buy a home.  We also did the math, and even taking into account property taxes, maintenance and upkeep costs, etc., our total monthly home ownership costs are still less than what we would be paying if we were renting.  Also, after years of renting, we wanted to own a home.  It's nice being able to make changes and decorate the way you want to.

[Taeyers]

I cheated at home ownership and married someone with no debt (hough mine was relatively low, ~ 15k in student loans and no other debt). I had good credit and some (very small) income at the time, and he had a short credit history but no debt and a good income, so it was a successful combination. Obviously this is not a realistic option for everyone, but just keep in mind that many grads out there who do own homes may not have accomplished that on their own. 

[spunky]

well, the general trend of the sample (N=3) of people who replied to this thread and own their homes shows that we all have a significant other in our lives who contributed to our home-owner status (which TakeruK addresses in point #4).

 

so now we know the secret for future grad students who want to own a home: get married! XD

[Roquentin]

Dual income no kids, no debt. Our rent was set to increase, and we realized that we could get a mortgage for the same as renting, so we went for it. Best decision ever.

[TakeruK]

well, the general trend of the sample (N=3) of people who replied to this thread and own their homes shows that we all have a significant other in our lives who contributed to our home-owner status (which TakeruK addresses in point #4).

 

so now we know the secret for future grad students who want to own a home: get married! XD

 

In general, it's always more affordable to pool resources in order to buy/invest in something! Getting married is maybe the most common way, but in theory, any two or more people can pool resources to cut down on expenses and invest in a house. Although in most places, the laws regarding marriage tend to provide more security that regulates what happens if the partnership breaks down. And to some people, a marriage is a stronger partnership but I don't think that is necessarily true all of the time

[Threeboysmom]

My husband and I did Financial Peace a class offered from Dave Ramsey.  While we were not six figures in debt (not including our home) we definitely had a lot of debt to pay off.   Almost seven years later we are debt free (still paying mortgage) but hope to have that paid off in fifteen years.  My husband completed his MBA and I am starting my masters in  a few weeks which we will be paying for. We live modestly, we are not trying to keep up with the Jones' and that attitude has helped us keep money in the bank.  Good luck to you.

Edited July 18, 2014 by Threeboysmom