How old were you when you bought your first home?

[irvinehomeowner]

So this was inspired by this post:
http://www.talkirvine.com/index.php/topic,13874.msg278890.html#msg278890

I think I bought my first home when I was relatively young. I probably would have bought one a few years earlier but my parents didn't think buying a condo was a good buy so I waited until I could afford an SFR (real SFR, not the Irvine classed detached home or SFH).

Also, this was bought with my own money, no help from the parental units but it was a 5% down (no way I had 20% at that age) and it wasn't in Irvine although the homes I was looking at in Irvine were about the same price range.

I think nowadays, many FCB kids can afford to buy their homes right out of college which is remarkable because I think starter homes today are at a much higher ratio to starting salaries than way back when.

#BeenALongTimeSinceIPostedAPoll

EDIT: Added a qualifier about FCB kids

 

[Bullsback]

I was 29 or so I think.  I don't see how nowadays many could afford to buy homes right out of college. Would be difficult to have the downpayment accumulated, etc, given where current pricing is. Other parts of the country sure, but Irvine / South County,  I find that hard to believe (unless they received significant help or are graduating with a grad degree out of a top college in a top percentile). 

 

[peppy]

Not sure about this one ... at least not in a competitive housing market.

I think nowadays, many can afford to buy their homes right out of college which is remarkable because I think starter homes today are at a much higher ratio to starting salaries than way back when.

 

[irvinebullhousing]

Just turned 30 and a year and half after I married my wife. 20 % down and drained our saving with only exactly 1 month payment for mortgage left in the bank. Bought our true SFH in West Irvine and it was the BEST financial decision we made back in 1999. If memory serve me correctly, everyone was talking and pumps their money in tech stock market. Little if any ever talk about homes or purchase homes those days. West Irvine still rocks.

Back in 1999, there is no requirement for having at least 6 months of saving in the bank that the banker are looking for nowadays. So yes if those just graduated and able to buy a SFH, it is truly amazing accomplishment without help from family.

I never have any help and never ask for help from my family when we made our purchase, so did our second home.

 

[irvinehomeowner]

My assumption was that I was referring to FCB kids, so I edited my original post.

But I do think there are some non-FCBs coming out of college that may have financial help from their families who are buying starter homes.

 

[Irvinecommuter]

I was in my mid-30s... ;D

It is hard to say in other places in the US but I think it will be difficult to afford a house until you are will in your 30s here in SoCal.  College degrees are becoming less and less influential thus requiring graduate studies.  That means more years of schooling and a lot more student debt. 

You also need two incomes nowadays to afford a moderate home and that means finding a mate and getting married (usually).  Not to mention the instability in the job market.

Parents have a lot less to give to their kids because of the lack of pensions and the ups/downs of the stock market and investment portfolios. 

 

[homer_simpson]

I was in my mid-30s... ;D

It is hard to say in other places in the US but I think it will be difficult to afford a house until you are will in your 30s here in SoCal.  College degrees are becoming less and less influential thus requiring graduate studies.  That means more years of schooling and a lot more student debt. 

You also need two incomes nowadays to afford a moderate home and that means finding a mate and getting married (usually).  Not to mention the instability in the job market.

Parents have a lot less to give to their kids because of the lack of pensions and the ups/downs of the stock market and investment portfolios.

Mid 20's... Bought my little condo in Emeryville 

 

[AW]

Back in the old days, much easier to get financing too.
Oh, are you breathing? Approved.

 

[peppy]

I think key is parents helping with the financing of a new home. I've seen this in multiple markets in families of all sorts of backgrounds.

If you are out of college with student debt and no money coming your way from parents, it is very difficult to buy a house in a competitive market (aka area with good schools).

My assumption was that I was referring to FCB kids, so I edited my original post.

But I do think there are some non-FCBs coming out of college that may have financial help from their families who are buying starter homes.

 

[eyephone]

All I got to say: oh well, do what you got to do. If you have to beg for money from your parents, that's on you. That's not my style.

I think key is parents helping with the financing of a new home. I've seen this in multiple markets in families of all sorts of backgrounds.

If you are out of college with student debt and no money coming your way from parents, it is very difficult to buy a house in a competitive market (aka area with good schools).

My assumption was that I was referring to FCB kids, so I edited my original post.

But I do think there are some non-FCBs coming out of college that may have financial help from their families who are buying starter homes.

 

[peppy]

It not so much "begging" for money but the parents willingness to provide the financial aid. Of course, they could have ulterior motives such as being able to dangle that over your head to influence your decisions. In any case, regardless of motive it puts those without help at a disadvantage and makes it more difficult to enter the market.

All I got to say: oh well, do what you got to do. If you have to beg for money from your parents, that's on you. That's not my style.

I think key is parents helping with the financing of a new home. I've seen this in multiple markets in families of all sorts of backgrounds.

If you are out of college with student debt and no money coming your way from parents, it is very difficult to buy a house in a competitive market (aka area with good schools).

My assumption was that I was referring to FCB kids, so I edited my original post.

But I do think there are some non-FCBs coming out of college that may have financial help from their families who are buying starter homes.

 

[socal78]

I waited until I could afford an SFR (real SFR, not the Irvine classed detached home or SFH).

Also, this was bought with my own money, no help from the parental units but it was a 5% down

Hey, not bad for a 12 year old!!

 

[panda]

I bought my first condo when i was 24 years old so i am not sure if this counts as your first home or not.

Before that I rented a two bedroom apartment in West LA (2350 Bentley Ave, LA in the intersection of Pico and Sepulvada... can't believe i still remember that address) working as a Business Consultant for Accenture. I believe my monthly rent back then was $1200 and I split the rent for $600 with my room mate. Something just didn't feel right with dumping money into rent without building any equity for myself with no tax benefits. Back then I was not very smart financially leasing a brand new 3 series Black BMW and paying rent.

I remember I took out the apartment owner for lunch one day and he was telling me that apartments and multi-family are the best investments to own. Even back then I think i was very interested about investing in real estate. I was impressed that this guy was in his mid to late 40s and he was already retired from his investments. He asked me, "What are you doing these days?" I told him that I am currently studying for my GMAT so that i can apply to the Anderson School of Business at UCLA (FEMBA Program), and he told me, "Panda, you don't need to get your MBA!" What you need to become is an entrepreneur and a real estate investor." 

Peppy, I don't blame you as if I was 24 years old today living in Irvine, there is no way I could afford even the smallest 2 bedroom condo. I think the ratio between the median home price / median household income is somewhere around a 7. You gotta do what ever you gotta do to float your boat in Irvine.

It not so much "begging" for money but the parents willingness to provide the financial aid. Of course, they could have ulterior motives such as being able to dangle that over your head to influence your decisions. In any case, regardless of motive it puts those without help at a disadvantage and makes it more difficult to enter the market.

All I got to say: oh well, do what you got to do. If you have to beg for money from your parents, that's on you. That's not my style.

I think key is parents helping with the financing of a new home. I've seen this in multiple markets in families of all sorts of backgrounds.

If you are out of college with student debt and no money coming your way from parents, it is very difficult to buy a house in a competitive market (aka area with good schools).

My assumption was that I was referring to FCB kids, so I edited my original post.

But I do think there are some non-FCBs coming out of college that may have financial help from their families who are buying starter homes.

 

[nosuchreality]

For me it wasn't my age making the determination, it's the larger macro trends.  I was in a similar boat to Panda in 91 after moving here.  '91 to '96 where pretty tough for housing out here, bought in 97.  Rent was comparably cheap and with a reliable roommate even cheaper.

I had a fresh out of college coworker in 97 who was totally gung go on buying and rentals.  He did okay.  Just okay and the rental flows and hassle didn't work out as rosy as he thought, then he became a bubble millionaire I'm sure, since he really fought to hold on.  Have no idea if he overextended or is fat smart and happy with 20 properties bought between 97 and 2005.

 

[AW]

20 properties. Dang. If it's cash flow positive or even flat, and the loans on the properties aren't interest only, by now he should be up by a lot.

 

[panda]

NoSuchRealty,
Congrats on purchasing your primary residence at the bottom of the SoCal housing cycle when the market was just starting to move up in 1997.

There was a 30 month window between 1994 - 1997 where an investor can actually have a positive cash flow with 20% down in an "A" class asset area like Irvine. The CAP rates were the best in those three years, but after 1997, an investor would need to put down more than 20% for his rent to cover all his operating expense. In any case, if your co-worker still owns 20 properties in southern California, that is very impressive! 

 

[dream16]

Just turned 30 and a year and half after I married my wife. 20 % down and drained our saving with only exactly 1 month payment for mortgage left in the bank. Bought our true SFH in West Irvine and it was the BEST financial decision we made back in 1999. If memory serve me correctly, everyone was talking and pumps their money in tech stock market. Little if any ever talk about homes or purchase homes those days. West Irvine still rocks.

Back in 1999, there is no requirement for having at least 6 months of saving in the bank that the banker are looking for nowadays. So yes if those just graduated and able to buy a SFH, it is truly amazing accomplishment without help from family.

I never have any help and never ask for help from my family when we made our purchase, so did our second home.

Congrats, you are a certified millionaire now with that property !

 

[irvinebullhousing]

I still live a very humble life. Never thought about that Million, the house is still working for us.

 

[Lanelgn]

25. It looks that was a pretty good idea.

 

[lnc]

25. It looks that was a pretty good idea.

Overachiever!