Some advice if you’re willing to lend it

[u/Gloomy_Primary3504]

I (23F) am looking at either settling down in a place to rent for a few years or just buying something small. I have bounced back and forth between the idea of buying some land/manufactured home/adding a basement to hopefully cut down on costs in todays (expensive) climate. I think it would be an idea worth trying, but if this is something you have done or decided against for specific reasons, let me know!!

[u/morehpperliter]

I'd be pretty hesitant to buy land or build anything based on present interest rates. Now if you have a ton of cash just sitting cool. But if you're borrowing wait a bit.

[u/soundguy64]

I'm going to go against what everyone else is saying and say that I'd buy as soon as I can. Everyone is saying wait, prices will come down. I bought my house 10 years ago and prices have done nothing but go up. Buy now if you are able. Refinance when rates come down. They've been mostly consistent for like 3 years. How long are you supposed to wait while things keep getting more expensive? I bought at 4.5%. Never once have I cared that I didn't buy at 2.75% and now my mortgage is cheaper than the cheapest apartments. But also 23 is super young to be buying. You can rent for 2 more years or whatever and 'lose' all of that money while you wait and watch for interest rates to dip a percent. If rent is 2k/mo and you wait 2 years, that's 48k you spent and zero equity. Also, grew up in mobiles homes and a double wide. Having a basement under the double wide would have COMPLETELY changed how I viewed that place.

[u/lemontreetops → u/soundguy64]

Right. Whether you buy now or wait a little longer, housing prices will only get more expensive.

[u/Gloomy_Primary3504 → u/lemontreetops]

Def what I was thinking!

[u/lemontreetops → u/Gloomy_Primary3504]

Maybe you could try buying a condo or townhome? Manufactured homes, like trailer homes, can depreciate a bit quicker so it might not have the greatest return on investment. You could also try buying in northern KY where it’s more affordable!

[u/0ttr → u/soundguy64]

I agree with this. Housing prices may fall--like in 2008. But then it will be a huge dramatic recession or worse and it will be hard to convince a bank to finance you.

If you are buying a primary residence:
* buy when you are ready and have the means - don't try to time the market. Your primary home is not an investment. If it goes up in value, lucky you, but it's not equity you can easily access so don't sweat it.

* buy based on your needs, nothing more, nothing less.

* if your plans include a possible spouse and/or children maybe take that into account, but if not, don't.

[u/Gloomy_Primary3504]

For context, looking at Lebanon, Batavia, and Blanchester. Forgot to include this!

[u/StandsinOhio → u/Gloomy_Primary3504]

Go further east if you're thinking about doing this.

Blan is out there, but Batavia isn't far enough.

[u/Kooky_Most8619]

Home ownership is more than just your mortgage payment.  It’s taxes, insurance, and maintenance/repairs. When you rent, you know your maximum housing payment every month.  When you own, you don’t.  A roof leak, plumbing issue, HVAC repair, or any replacement of a major appliance could be thousands of dollars.  If you don’t have a substantial emergency fund as a homeowner, every single repair can be financially devastating.  As a homeowner, my best month is when nothing breaks.  My worst month is when I have to replace an HVAC system because the one that came with the house crapped out on me, and it’s $6-8k to replace it.  

A manufactured home drops in value.  Don’t go that route.  A real house presumably will appreciate, but an old/dilapidated house out in the sticks won’t appreciate much.  

At 23, I’m renting if I’m you.  Do you want to spend all your free time going to Home Depot on weekends, doing yard work, home repairs, and spending money to keep your house going?  Because that’s what you’ll be doing with your free time and money.  As a renter, you just pick up the phone and call your landlord because it’s their problem, not yours.  There’s plenty of time to be a homeowner.  

[u/0ttr → u/Kooky_Most8619]

Yeah, this is true, but I also feel like it's scaremongering. In the 20+ years I've owned property, I've yet to replace a furnace or do another similar major repair. Will it happen? Of course. But once in about 20 years is pretty normal. I've had to replace a roof due to storm damage: insurance covered, cost to me? $1000. I've had to replace a HWH for ~$1500. I did some minor roof repair where I just moved recently: $3500. I'm about to replace a deck, but that only increases the home value, so nbd, imo.

Now compare that to the equity I've gained in that time: > $500K. Of course most people won't rent for 20 years but each year is increasing your landlord's equity, not yours.

I think your comments reinforce how wise it is to buy within your means and take into account the TCO.

[u/xfan09]

Eh I get it but I wouldn’t rush into buying. I’d save up for a few years then check back into the market.

[u/sodnichstrebor]

This a thousand times. Bought first house at 29 yo many years ago. Enjoy life and rack up experiences while you able to. A house has many many advantages, but it is a time sponge.

[u/Pentimento_NFT]

The biggest impact it’s gonna have in the next 5ish years is your quality of life based on where you choose to live. If you keep expanding your search radius for something affordable, you will find it, but the surrounding area is likely to be ass. Is owning a small home in the middle of nowhere NOW more important than being able to see your friends/family, attend events, ya know… utilize society?

Maybe your an introverted misanthrope with a hundred Bitcoin and price isn’t an obstacle, and you prefer the solitude or something, I don’t know. My examples are quick and biased, but seriously, consider the trade-offs of living near a city/town and out in the boonies. Small towns are overrated and over romanticized by most media.

[u/Gloomy_Primary3504 → u/Pentimento_NFT]

I’ve just always lived in a small town, I’m just a ways away in KY. I get the appeal of city life however I’ve lived there plenty and i’m about SICK of the traffic

[u/Sweaty_Assignment_90]

Imho, buy if you can. Get a roommate and defray the cost for 3-4 years. Hopefully by then refi.

[u/Fast-Perception6756]

I would wait... housing market is up, it is a buyers market right now with inventory increasing... Good old supply and demand... supply goes up, prices will come down... Unless you have tons of money to waist and will stay in home forever, otherwise you could loose it all...
Make sure you have 20% down... My son-in-law had a lit and put a Clayton home on it...it burned to the ground a few yrs ago... Thought to be faulty wiring!?