Source
r/personalfinance•
Computersoverconsole

Currently 17, when to buy a house?

Housing

So it’s been a few months since I’ve been here, mostly good news from me now. I have doubled my liquid savings and currently have about $9500. I am working as a bus boy still and graduate in late May. I have been accepted into an electricians apprentice helper program which pays $18 an hour until September when I officially join the apprentice where my pay will be bumped to $22. From here to the end of the apprenticeship, my pay will gradually increase all the way to $58 per hour. I plan to keep working as a bus boy making ~$100 per night during this and just stock piling money until my birthday in September. I’d really like to buy a house when I’m 18 and just get it out of the way. I guess my question is, is this viable? Am I stupid? I really don’t know, everything feels like it’s too good to be true right now.

Posted Feb 25, 2019, 6:18 PM UTC

212
bobbybottombracket•

You have some time ahead of you, young grasshopper, but I admire your forethought.

15
fraudster247•

If you have a stable/healthy place to call home for free/very cheap, I'd take advantage of that for as long as possible and just continue of focusing on saving and look into more investment/retirement options for the long term. Your time is going to be pretty well taken up by work that a new home is going to be ever more to take on, and theres no rush to do that. I'd wait till you are more settled in to your career and make sure you like it, before making a commitment like a mortgage. Especially so if your current living accommodations are fine, less so if u are being forced out or in an unhealthy environment.

Good on you for being well ahead of the game and planning your future responsibly.

5
ComputersoverconsoleOP•

I love my mom and have no problem staying with her but I’m in south jersey and would be doing an hour commute each way to philly every day.

2
fraudster247•

These are important details to include if you are looking for advice.

I cant recommend buying a house in a new area at such a young age, nor am I really sure it's going to be possible, given lack of employment history and credit. You are likely relegated to renting while you build that. Find a cheap place to live then, maybe even consider roommates or if you know anyone in that area. Give it a few years to build up savings, and focus on other long term investments and your career. Owning a home is no joke, I'd wait till you are in more of a settled in phase of your life, rather than transitioning. Good luck

5
ps2sunvalley•

I live in Philly, you’re not going to be able to get a great house with a $10-15k downpayment making $18/hr.

My advice: get a fuel efficient car and commute until you’re at least done with the apprenticeship, at which point you might want to move to a different city or you have saved 20% of a down payment which for a house in Philly is probably going to be $45k or so based on Zillow.com’s median price for the city... keep in mind that’s median. There are a lot of undesirable houses/neighborhoods that drive that down.

1
Wide_Ocelot•

Your life is going to change quite a bit in the coming years. A house that seems great now might feel like a big mistake in the not-too-distant future. Can you rent for a year or two while you work up to the end of your apprenticeship? You might end up taking a job further from Philly and then you'll have a house to sell - which is extremely stressful.

You're doing all the right things to build a great life for yourself! There really isn't an urgency to buy a house at 18!

3
Nguyendot•

It depends how much of a house you’re looking to buy. A $100k house on that plan is easy, $500k probably not. If you plan on mortgaging any of it they will look at your past two years income. That might be your limiting factor unless you’re paying cash.

2
ComputersoverconsoleOP•

100k is about what I’m looking for. :) A row house in southeast philly what I’m looking for so I should be able to get something nice with that.

1
ps2sunvalley•

Do you know what a $100k house in southeast Philly is actually like?

3
ComputersoverconsoleOP•

Yeah, I’ve looked at the houses there. They are rather similar to the neighborhoods and house I live in now. So no problem there, I don’t like living in nice areas ig it’s a subconscious thing.

1
ComputersoverconsoleOP•

No, the apprenticeship is going to be my program. :) no debt and a great career is what I’m looking for so this is exactly it chief. Edit: oof this was supposed to be a response to the man asking if I was going to college lmao

1
jscottou•

Are you planning to go to college? If yes, cool. If no, AWESOME. it sounds like you have a plan in place and have goals in mind.

Proud of you, young stranger.

I went to college and now I'm stuck renting because my student loan payments are so high.

0