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Originally Posted by Aggie03 Quick summary:
My wife and I will be relocating to Dallas this summer where I will be picking up a few more ratings and then instructing to build some time. She has a pretty nice job lined up and we would both like to stay in the DFW area longterm if possible, but at the same time, I recognize that it may not be possible as I work my way up the aviation ladder. The real issue is if we should plan on renting until I have a potential longterm position or if it would be better to just buy the house (first time homeowner) and then try hard to find work in the area or somewhere that I could commute to. Is this a doomed plan? I would really like to buy a house, but at the same time I don't want to handicap my career because of it.
I don't know how much information I can expect on this topic, but surely some other people have faced a similar situation. Any thoughts? Tips? Thanks in advance. |
I would be careful about buying a house before you are ready. My wife and I lived in apartments until we were 28. Of course I worked for 4 different aviation companies between the age of 21 and 28 which required alot of moving...each was necessary to fly in a bigger and more complex outfit. If you have to sell a house to accept a new move...it will really weigh you down.
Having said that...here's my formula. I think whenever you buy a house...you should have the financial ability to sell it tomorrow if circumstances dictate. A conventional mortgage amortized over 30 years with little or no money down...can financially kill you if you have to leave within 5 years or so.
Here's my advice to "young'uns" when they ask about buying a house. First make sure you have enough cash to make a 20% down payment. Secondly amortize the loan for no more than 15 years. Third, ensure that after the transaction that you still have enough of an emergency fund to last 3 to 6 months. (Being in aviation, as unstable as it is, I feel more comfortable with a larger emergency fund. I keep about 18 months worth of living expenses in mine.)
Until you can reach the above criteria...I would live as cheaply as you can...renting as cheaply as you can...eating alot of peanut butter and spaghetti...piling cash in your savings account to reach the above criteria. At one time, my wife and I lived in the upper level of a fourplex that cost $375 per month. But we were stashing away money at a great clip. It was definitely worth the temporary sacrifice. Do it while you're young...and like a popular radio financial commentator would say..."live like no one else so that later on you can live like no one else."
Don't get hoodwincked into buying a house with no money down and long amortized period...this is a recipe for disaster. Unfortunately alot of people are cooking that meal and I theorize down the road...these types of debt arrangements are going to seriously jeopardize the stability of our economy.