Buying a house in law school?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
User avatar
kalvano
Posts: 11720
Joined: Mon Sep 07, 2009 2:24 am

Re: Buying a house in law school?

Postby kalvano » Tue Dec 21, 2010 11:46 pm

Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.

User avatar
homestyle28
Posts: 2312
Joined: Thu Jun 04, 2009 12:48 pm

Re: Buying a house in law school?

Postby homestyle28 » Wed Dec 22, 2010 9:28 am

kalvano wrote:Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.


Of course, depending on one's preference you might prefer your own repair to the way a landlord might do things.

User avatar
Barbie
Posts: 3746
Joined: Mon Jun 07, 2010 8:51 pm

Re: Buying a house in law school?

Postby Barbie » Wed Dec 22, 2010 9:51 am

Not sure if this has been mentioned- but if buying a house meant you could get instate tuition, do you think it would be a better option? It would save you, say, $15k over 2 years (assuming you didn't get it the first year because it was too late) then would it make more sense? You could be using that 15k to put it INTO something that could provide a return? Just wondering what yall think :D

User avatar
thelaststraw05
Posts: 1028
Joined: Fri Nov 05, 2010 7:47 am

Re: Buying a house in law school?

Postby thelaststraw05 » Wed Dec 22, 2010 9:54 am

Iconoclast wrote:If you have a good handle on all the costs and it still makes financial sense, then great! It is indeed a good market for home buying. I'm skeptical that there will be a positive return in a 3 year period, but if you've done your homework and feel like you'll come out ahead (at the very least, ahead of what you would spend renting) then that's great. I truly hope things work out well for you.

I guess the biggest thing I wanted to get across was that first time homebuyers generally greatly underestimate the true total cost of owning compared to renting, and also tend to underestimate the transactional costs associated with real estate. If you say that you're aware of all this, then I have no reason to doubt you. Maybe someone else contemplating a similar purchase will have their eyes opened. (If it saves just one child....)


Sorry if I over-reacted, I had just been trying to say many of the same things you had earlier:

thelaststraw05 wrote:1) Closing costs can be significant. When I bought closing costs were over $5,000.
2) Your payments for the first several years are primarily interest and reduce the principal of the loan.
3) The seller pays the commission for both the listing agent and the purchasing agent. The amount depends on the state, but is a percentage of the sale price. - For these reasons it is hard to break even if you own a house for a short period of time.


I do know the costs associated as I'm a current homeowner and will be living in my current home through law school. I've planned it out so that I'll be living in my residence for about 7 years - and I suggest that others try to do the same.

User avatar
Lwoods
Posts: 1484
Joined: Wed Oct 13, 2010 7:27 am

Re: Buying a house in law school?

Postby Lwoods » Wed Dec 22, 2010 10:14 am

homestyle28 wrote:
kalvano wrote:Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.


Of course, depending on one's preference you might prefer your own repair to the way a landlord might do things.


When my husband and I moved, we used apartmentratings.com and any other rating site we could find (yahoo, etc.) to get feedback. We moved into a place with a 97% approval rating and have had excellent maintenance when needed (mostly minor stuff... my key got stuck once, a clogged toilet, a clogged bathtub... but our heater also broke and was replaced within hours).
It's definitely important to do your research because there are a lot of crappy rentals / management companies out there.

User avatar
kalvano
Posts: 11720
Joined: Mon Sep 07, 2009 2:24 am

Re: Buying a house in law school?

Postby kalvano » Wed Dec 22, 2010 10:54 am

homestyle28 wrote:
kalvano wrote:Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.


Of course, depending on one's preference you might prefer your own repair to the way a landlord might do things.



Because that's what you'll have plenty of free time for in law school.

User avatar
Iconoclast
Posts: 193
Joined: Wed May 19, 2010 10:10 pm

Re: Buying a house in law school?

Postby Iconoclast » Wed Dec 22, 2010 12:07 pm

Barbie wrote:Not sure if this has been mentioned- but if buying a house meant you could get instate tuition, do you think it would be a better option? It would save you, say, $15k over 2 years (assuming you didn't get it the first year because it was too late) then would it make more sense? You could be using that 15k to put it INTO something that could provide a return? Just wondering what yall think :D


Renting gives you the same access to instate tuition as owning. Residency requirements vary from state to state, but I can't imagine that any that would require you to own instead of renting.

User avatar
Barbie
Posts: 3746
Joined: Mon Jun 07, 2010 8:51 pm

Re: Buying a house in law school?

Postby Barbie » Wed Dec 22, 2010 12:07 pm

Iconoclast wrote:
Barbie wrote:Not sure if this has been mentioned- but if buying a house meant you could get instate tuition, do you think it would be a better option? It would save you, say, $15k over 2 years (assuming you didn't get it the first year because it was too late) then would it make more sense? You could be using that 15k to put it INTO something that could provide a return? Just wondering what yall think :D


Renting gives you the same access to instate tuition as owning. Residency requirements vary from state to state, but I can't imagine that any that would require you to own instead of renting.


Illinois considers on a case-by-case basis, and I was told that purchasing a house proves long-term commitment MUCH more than renting.

User avatar
Iconoclast
Posts: 193
Joined: Wed May 19, 2010 10:10 pm

Re: Buying a house in law school?

Postby Iconoclast » Wed Dec 22, 2010 12:11 pm

Barbie wrote:
Iconoclast wrote:
Barbie wrote:Not sure if this has been mentioned- but if buying a house meant you could get instate tuition, do you think it would be a better option? It would save you, say, $15k over 2 years (assuming you didn't get it the first year because it was too late) then would it make more sense? You could be using that 15k to put it INTO something that could provide a return? Just wondering what yall think :D


Renting gives you the same access to instate tuition as owning. Residency requirements vary from state to state, but I can't imagine that any that would require you to own instead of renting.


Illinois considers on a case-by-case basis, and I was told that purchasing a house proves long-term commitment MUCH more than renting.


Yeah, I could see Illinois denying a citizen their rights because they are too poor to afford to own a home. But here in the US we try to provide equal benefits. If that's true, then add one more reason to stay out of the People's Republik of Chicago and its territories (i.e the rest of the state).

User avatar
ahduth
Posts: 2468
Joined: Wed Sep 29, 2010 10:55 am

Re: Buying a house in law school?

Postby ahduth » Thu Dec 23, 2010 3:20 pm

Iconoclast wrote:Yeah, I could see Illinois denying a citizen their rights because they are too poor to afford to own a home. But here in the US we try to provide equal benefits. If that's true, then add one more reason to stay out of the People's Republik of Chicago and its territories (i.e the rest of the state).


How exactly is in-state tuition a "right" that Illinois is "denying" people? Somehow I thought the University of Illinois was heavily subsidized by Illinois taxpayers. Apparently people who show up, rent an apartment for a couple semesters, then leave once they graduate... have paid their fair share of the bill?

The requirement is rather more subjective and revolves heavily around ties to the state and intent to reside therein. Payment of Illinois income taxes is a crucial factor, although the purchase of a residence would be viewed positively as it demonstrates a commitment to stay in the state.

While you're on the topic of providing equal rights, however, I'd like your advice on something. My understanding is that people who hold mortgages are able to deduct the interest from their taxes? As a renter, I haven't been able to figure out where to find a parallel benefit for me. Do you have any insight into that? I'm assuming I must have just missed it, because here in the US, we try to provide equal benefits.



Edit: Sorry, I had to fix a grammar problem. Baseless right wing noise irritates me for reason, my response ended up a tad incoherent.
Last edited by ahduth on Thu Dec 23, 2010 3:27 pm, edited 1 time in total.

User avatar
homestyle28
Posts: 2312
Joined: Thu Jun 04, 2009 12:48 pm

Re: Buying a house in law school?

Postby homestyle28 » Thu Dec 23, 2010 3:24 pm

kalvano wrote:
homestyle28 wrote:
kalvano wrote:Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.


Of course, depending on one's preference you might prefer your own repair to the way a landlord might do things.



Because that's what you'll have plenty of free time for in law school.


I wasn't suggesting anyone take on re-roofing their house...but fixing a toilet doesn't take much more time than stalking board on TLS.

User avatar
kalvano
Posts: 11720
Joined: Mon Sep 07, 2009 2:24 am

Re: Buying a house in law school?

Postby kalvano » Thu Dec 23, 2010 4:43 pm

homestyle28 wrote:
kalvano wrote:
homestyle28 wrote:
kalvano wrote:Renting won't seem like throwing money away the first time you get a bill for several thousand dollars for some home repair that you didn't see coming.


Of course, depending on one's preference you might prefer your own repair to the way a landlord might do things.



Because that's what you'll have plenty of free time for in law school.


I wasn't suggesting anyone take on re-roofing their house...but fixing a toilet doesn't take much more time than stalking board on TLS.



But fixing a toilet doesn't cost thousands of dollars, either. Unless it's a fucking Mansfield toilet, which is a piece of shit and I'd like to shoot whatever dumbass decided to put them in my house.

Really, my point was that it's pretty easy to see renting as throwing away money, until some ridiculous thing happens that you couldn't possibly have seen coming. Like your garage door folding in on itself and falling off the tracks at 10:31 at night. That was fun.

User avatar
homestyle28
Posts: 2312
Joined: Thu Jun 04, 2009 12:48 pm

Re: Buying a house in law school?

Postby homestyle28 » Fri Dec 24, 2010 1:21 pm

kalvano wrote:Really, my point was that it's pretty easy to see renting as throwing away money, until some ridiculous thing happens that you couldn't possibly have seen coming. Like your garage door folding in on itself and falling off the tracks at 10:31 at night. That was fun.


Awesome...I would hope that renting doesn't come with the anxiety dreams that owning has brought, dreaming about your basement walls collapsing is no good.

User avatar
Iconoclast
Posts: 193
Joined: Wed May 19, 2010 10:10 pm

Re: Buying a house in law school?

Postby Iconoclast » Mon Dec 27, 2010 12:01 pm

ahduth wrote:
Iconoclast wrote:Yeah, I could see Illinois denying a citizen their rights because they are too poor to afford to own a home. But here in the US we try to provide equal benefits. If that's true, then add one more reason to stay out of the People's Republik of Chicago and its territories (i.e the rest of the state).


How exactly is in-state tuition a "right" that Illinois is "denying" people? Somehow I thought the University of Illinois was heavily subsidized by Illinois taxpayers. Apparently people who show up, rent an apartment for a couple semesters, then leave once they graduate... have paid their fair share of the bill?

The requirement is rather more subjective and revolves heavily around ties to the state and intent to reside therein. Payment of Illinois income taxes is a crucial factor, although the purchase of a residence would be viewed positively as it demonstrates a commitment to stay in the state.

While you're on the topic of providing equal rights, however, I'd like your advice on something. My understanding is that people who hold mortgages are able to deduct the interest from their taxes? As a renter, I haven't been able to figure out where to find a parallel benefit for me. Do you have any insight into that? I'm assuming I must have just missed it, because here in the US, we try to provide equal benefits.



Edit: Sorry, I had to fix a grammar problem. Baseless right wing noise irritates me for reason, my response ended up a tad incoherent.


You mad?

I'm about as "right wing" as Bill Clinton, I just took a shot at Chicago because it is a city that, for many reasons, irritates the shit out of me. Must have hit close to home to get you all worked up.

You wanna know the difference between the mortgage interest deduction and the "case by case" residency determination that may or may not be influenced by purchasing a house? There is a f$ckin standard. It's not depending on whether the guy who reads the application got laid last night, hates people with last names that sound like yours, or just got done snorting coke off his desk. It's the same benefit every time, available to everyone who meets the established criterion.

If the rule was: "buy a house, get instate tuition" then fine. But when "buying a house reflects well" then it doesn't mean jack. And that's the problem... a subjective standard that can all too easily be applied inconsistently.

Subjective tests are fine for a lot of thing. Determining if someone has certain residency rights is not one of them. As a matter of fact... that sounds a lot more right wing than my position.

Your turn. Kettle.




Return to “Financial Aid”

Who is online

Users browsing this forum: No registered users and 1 guest