Pfinance

Question: Apartment costs and money management ?

(Posted by: Anny P on 2009-01-15 11:12:30)

I am looking at apartments and my room mate want to make sure that we are not forgetting any costs. We want to be as prepared for as much as we can. I was hoping you could help. First is it smarter to buy a house even if we are younger? Or would it make more since to rent an apartment? I want to live in a safe and nice place and moneys a little tight. Also what are the other expenses that are included in living on your own? And how much do you think to room mates (theres only two of us including me) need to make monthly? And after we get settled and every thing under control we plan on going to a community college to take the basics. Thanks:) Also sorry what I forgot to add: I could always use more tips on whys to get more for my money. Money management tips are always appreciated! Thanks again:)

Posted by: krayzwytie on 2009-01-15, 11:25:56

Do your homework on apartment complexes in your area. Some offer free utilities, while others have lower prices. If you choose one that offers free utilities, you will pay a higher rent, but you will not pay for electricity, water, or gas. Those can be a hassle, especially in mid-winter and mid-summer. Also, take into account any other bills you have, such as car insurance, car note, cable, groceries, and any other commodities, such as internet, phone, etc. You will want to be careful with who you room with, because if your roommate bails on you, you will be responsible for the whole bill. You want to have a trustworthy and responsible roommate. Buying makes more sense than renting, but only if you are stable. If you have a good paying job that you are not afraid of losing, then yeah, buy, but do not depend on someone else to help with the loan. Repairs and all utilities are on you if you buy, too. So probably not a good idea right now. Most young people rent, though, since you never know what might happen. Hope it helps.

Posted by: 9 daughters on 2009-01-15, 11:22:16

You've raised several red flags that would indicate buying is not a good idea for you at this time. Room mates buying a home together; Yikes, a nightmare waiting to happen. Money's tight you say. If you buy you'd better be prepared for a few repairs and unexpected expenses. You're asking what expenses are included in living on your own. A red flag that you don't have enough knowlege and experience yet to risk buying. Aside from the red flags, property values are still falling so waiting could get you a better buy. It always depends on the cost to rent versus the cost to buy too.

Posted by: Brandon J on 2009-01-15, 11:23:52

It's never a good idea to Buy a house with a friend. If one of you could get the loan, the other could pay rent to the owner. But what if something happens to the friendship, could that person make the monthly mortgage payment without someone else living there? Other costs. Deposits on the house/ apartment, deposits on utilities, Monthly Utilities, Cable/ Dish, Phone, Internet, FOOD, entertainment, Commuting costs.