Rent vs Buy in Brooklyn>Question Details

Jlopez, Renter in Brooklyn, NY

Just started my first job fr college. Im renting a one bed room apt now, what's your advise regarding real estate wise for a person who just

Asked by Jlopez, Brooklyn, NY Sat Feb 26, 2011

started?

Help the community by answering this question:

Answers

10
Your age is not what matters. The fact that you're in your first job is irrelevant. Scores of people just like you buy real estate every day.

Among the key questions are, do you have enough savings and income and job stability to buy something you want to live in--that is, do you qualify financially? A pre approval letter from a lender, such as your neighborhood bank, will tell you that.

Are you able to commit to staying in one place for the next 5 to 10 years? If not, realize that you may likely lose money on your investment if you have to sell unexpectedly.

Are you comfortable with the investment risk and commitment of owning real estate? It does not sound that way from here, because you are so focused on your life inexperience in your question.

It's a great thing to ask advice, but it's your life to live. Assuming you even have the option to purchase instead of renting, really only you know what's right for you.

Karla Harby VP
Rutenberg Realty NYC
kharby@crrnyc.com
0 votes Thank Flag Link Tue Mar 1, 2011
Thank you guys for the responses. I really appreciate it.


For further clarification, my question was what should be my step in owning a real state considering that I have just starter with my first job? Is it feasible for a young one like me to just rent fist? If so, how long? Is the cost to pay a rent and to pay a mortgage similar? I am aware that there should be at least 20% down payment so I stay away from the additional fee of insurance,

Please advise. Thank you.
0 votes Thank Flag Link Sun Feb 27, 2011
Dear Jlopez:

Your question is a little unclear and I am not sure exactly what you are asking. Please clarify so I can give you a good answer.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Sat Feb 26, 2011
Many good answers here... Definitely do not buy if it will strap you down. You can get roped into buying an expensive condo or coop but if the maintenance is high it will work against you. Only consider it once you have an established comfort level. It is a good investment once who have criteria others here have mentioned. Good Luck!

Regards,

Jack Menashe
http://www.SHERestates.com
0 votes Thank Flag Link Sat Feb 26, 2011
I'd agree with Dale. Concentrate on saving money, and building good credit.
Come up with a budget that includes saving for the future, for a down payment or other aspects of your life

You're young - your needs and wants will most likely change , so I wouldn't rush to buy anything quite yet, even if you do have the money and income to do so. Make sure you're happy with your first job, and that you're secure on that position.

Plan ahead..........it will happen one day!
Best wishes.........
0 votes Thank Flag Link Sat Feb 26, 2011
Pay your bills on time to build credit, Save money and stay on the right side of the law until you are ready to buy instead of rent.
0 votes Thank Flag Link Sat Feb 26, 2011
You can begin by visiting with any qualified loan officer(s), after reviewing your overall financials, a determination on qualification can be made; if you don't yet qualify, he/she may have great suggestions as to what needs to be done in order to qualify in the near future.
0 votes Thank Flag Link Sat Feb 26, 2011
I would make sure you have a budget to live on. Pay yourself 10% for savings. I hope you have a 401k pension plan that does matching. Make sure you have health insurance. Everyone is allowed a once a year credit report from the 3 credit reporting agencies. DO NOT LET ANYONE CHECK YOUR CREDIT FOR ANYTHING INCLUDING A HOUSE. It's NOT time to buy one yet. Go to freecreditreport.com the one you don't pay for. You will pay all 3 agencies to see what your score is which is about $8-15 each but WORTH it!
Try not to open any new credit accounts at once. Get that report first! I'd stay in that apartment for 3-5 years or find another apartmnt or house rental if the one you have is too expensive. It is so CRUCIAL to live below your WANTS and live by your NEEDS instead. The idea is to take time to know what you want and to see how the economy is doing. Don't believe all these reports that the economy is getting better. Trust what YOU SEE and VERIFY! DO NOT GO TO A LENDER....just about EVERYBODY checks YOUR CREDIT REPORT! That puts dings against it lowering your FICO SCORE. NEVER LET ANYONE DO A CREDIT CHECK EXCEPT THE OBVIOUS (rental agreements, life insurance, car insurance, job applications considering you for a job). Have your own on you for your reference only knowing your own 3 credit reports from Equifax, Experian, and Transunion. Make sure when you get them online that you save them to your computer and copy them. After that, in a year later when they are free again (except the scores you need) don't order them at once but stagger them out. Get 1 every 4 monhs until yu have all 3.

I don't know if you have a significant other or not. Whoever you become serious with, KNOW their financial situation by asking them to check into their free credit report with scores for you two to share. You don't want to become burdened down with someone else who's highly in debt. College loans are a GOOD debt but pay them down quickly. Any debts occurred, do NOT pay minimum payments but pay them down as quickly as possible. You can SAVE on finance charges by paying on debts weekly instead of monthly as it saves on those pesky finance charges. If you MUST use a credit card for REAL NEEDS, pay them off as soon as the bill ARRIVES.

ALWAYS HAVE 5 YEAR GOALS and then 10 YEAR GOALS in your career and in your financial affairs. You never know when you are transferred or laid off. It costs to move which is NOT always paid by someone else!Have an account for saving 9 months of living wages in case of job loss. Don't be in a hurry! You didn't get where you are at overnigt. Then YOU CAN NAME YOUR OWN FUTURE.
0 votes Thank Flag Link Sat Feb 26, 2011
It all depends on your business plan what you have mapped out for yourself

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 26, 2011
Step #1 in the purchase of real estate is always to speak to a lender to see if you can qualify for a loan. It's free and will cost you nothing and you will always learn something by doing this. If you can't qualify now the loan officer can give you some tips and suggestions on what to do to be able to qualify. If you can qualify the loan officer will give you an idea of how much you could borrow. If your plans are to be in the area and job you have for 4 or 5 years, or more, then buying a home now is a no-brainer. Prices are way down and interest rates have almost never been better.
0 votes Thank Flag Link Sat Feb 26, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer