When to buy or build a house (Full Version)

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Redtail -> When to buy or build a house (4/22/2008 1:20:14 PM)

At the moment, I'm finishing my 2nd year of college and I still have 2 more years of college to get my bachelors degree.

So far I haven't a need to take out any loans as I'm paying everything with cash so far. But that also leaves me with very little money in the savings account.

I have college tuition, and then there is the finishing of my commercial license that I need for my career need as a commercial pilot which is around another $20,000.

Ok, not that also does include the possible masters degree I plan on work on after I finish my bachelors but that I can work on a little at a time. But once I get done with college and say I still have not met my goal in getting my commercial license around the same time when you finacially advise me to purchase or build a house?

Does it depend on where I'm at in starting my flying career?
How much money in the savings?

What does it depend on and what do I need?

Thanks!



P31W -> RE: When to buy or build a house (4/22/2008 1:47:43 PM)

www.coeinc.org

See the site above. That belongs to Mike Coe. He is a retired commerical airline pilot. His site is called Christian Oriented Education and it deals with finances.

You will be able to find on his site information that will help you lay out a plan to help you achieve your goals.

You may want to email Mike with specific questions. He's a nice guy.

This is from the site page entitled "about us"

Mike Coe lives in San Clemente, California. Mike has been married for 31 years to his high school sweetheart. Mike and Sue Marie have two children (26 and 21).

In 1987, Mike had accumulated debts totaling nearly $700,000. Through a series of circumstances, he and his wife began searching for help in the area of their finances. After several months, it became clear that God wanted them to get out of debt. They totally surrendered their entire financial lives to God and began their journey towards financial freedom. By learning and applying God’s principles for financial freedom, they were able to become totally debt free within 10 years.

In 1996 Mike founded the non-profit teaching ministry, Christian Oriented Education, Inc. (C.O.E., Inc.). The aim of their ministry is to help Christians understand God’s plan for financial freedom (Colossians 1:28 ), and assist anyone interested in getting their financial house in order.

Mike has been helping people understand the practical and Biblical principles involving money management through seminars, classes, and personal counseling since 1992. From 1993 to 1997 he worked as a part-time counselor and seminar instructor for Dave Ramsey (best selling financial author and syndicated talk show host of “The Dave Ramsey Show”).



peace77 -> RE: When to buy or build a house (4/22/2008 1:52:28 PM)

I would advise you to live as cheaply as you can while you are in college and single.

In your other post, you mentioned moving to the western U.S. -- Definitely wait until after you move.

Wait until you have a full time job and at least 8 months worth of expenses in an emergency fund.
This fund is in case you lose your job, become ill or injured and are unable to work.

In order to buy a house, you will need funds for earnest money, downpayment, and closing costs.
You may also need funds to buy appliances, blinds/drapes, carpet or rugs, furniture, etc.

Your other post mentioned starting your own business. I would suggest that you first work for someone else, save your money, and do charter flights in your off time.

There is no exact figure for what you need. It depends on the cost of living and the cost of homes where you choose to live.

For now, the answer is WAIT.


Peace,
Anne



Redtail -> RE: When to buy or build a house (4/22/2008 3:26:53 PM)

P31W, I greatly appreciate the information.

Anne,

Yes after college I plan on making a living as a charter pilot and if I can make it happen to start my own buisness. But my living will be as a pilot. Charter or missionary pilot.

But I have been planning to fly under another company. Its required.

The second part you talked about is correct and that is also a rather unanwsered part of where I decide to settle down. Alaska I believe has the most flying opportunites as an Bush pilot, so my primary choice has been there but that doesn't rule out others such as Oregon, Washington...western states... where small feeder lines can possibily perform better then airlines. Another question is rather..WHERE...and then HOW to transition?

I suppose the second part would only be answered by traveling once I finish college.

Maybe its not really a big deal, but little things like this gets me to wondering. should know better though I guess in Matthew 6:25-34...



Greatly appreciate the help everyone here can give.



creationtalk -> RE: When to buy or build a house (4/22/2008 4:10:36 PM)

In the case that you have outlined for yourself, I would recommend waiting to buy or build a house until you have an idea of where you might stay. There are a few guidelines that I use:

1) How long do you intend to stay where you are? Although none of us can predict the future, it's one thing if you know or expect to move in a short time than if you expect to stay in the area longterm.

2) What is the cost of home ownership compared to renting (have to include upkeep and insurance in the cost of a home)? If you can own a home for about the same as renting, it might be worthwhile to buy, even if you will be in the area short term--but then you have to add mortgage costs (closing costs, etc) amortized over the time you expect to be in the home and the likelihood that the home will sell when it is time to move into the equation.

3) Do you have special circumstances that make buying a better choice?

For example, when I first moved to the area where I live, I wasn't sure if I would be here for a year or indefinitely. I figured up the cost of buying land and moving my mobile home from my previous location and getting set up and compared that to renting and boarding my horses. This showed that buying land would cost less than renting if I stayed on the property only 2 years and would cost significantly less if I stayed longer. In my case, buying the land was a wise move--that was 12 years ago. I have since built a house and made several improvements. My total costs are around 2/3 the cost of renting a comparable house.



peace77 -> RE: When to buy or build a house (4/22/2008 4:30:40 PM)

When the time is right, you might also consider doing something similar to what John Travolta did in Florida.
His home includes parking for his 727.

There were news articles written about it. I'm sure you could find some of them if you searched the internet.


Anne



Redtail -> RE: When to buy or build a house (4/30/2008 1:19:25 PM)

Yea saw a picture of that jet, thats crazy.

P31W...thats a great finance website for something to get started on.

The 1,2,3 method he talked about works out great. Set up an emergency fund starting out with 5K, and then I still have my checking and savings account but I'm still working on which stocks or funds to invest in for long term finances and retirement.



Psalm22 -> RE: When to buy or build a house (4/30/2008 4:51:12 PM)

quote:

Alaska I believe has the most flying opportunites as an Bush pilot, so my primary choice has been there


I live in Anchorage. Yes, there are a lot of opportunities but be sure to be well informed about the smaller carriers. Flying between some of the towns and villages can be quite the adventure. If you would be based in Anchorage, the cost of living isn't bad. If you would be based out in the Bush, even a major Bush hub like Bethel, it's gets a lot more expensive. Have a good reserve in the bank is a virtual necessity when moving up here.



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