Priorities, degree vs condo

There's something wrong with Spandex?

 

Buy the condo. I fully expect prices in DL to stay flat or even go down in the next couple of years thanks to so much competition in the market. While we may not have hit the absolute bottom in RE prices, we're pretty close and certainly close enough for you to make a good return on your investment.

Check out BA in 4 weeks as a good primer towards CLEPing your way to a degree.

 

I am going to say that in all fairness I don't see why you couldn't accomplish both goals at the same time. I know that others have advised that you should strictly do the condo, and I can with good reason understand that choice and why it would make most realistic sense.

My point is this, however, and I will probably be putting you on the stretch, but I think that it is always good sometimes to be willing to take on more challenges and strive to accomplish goals that sometimes seem impossible or out of your reach. I realize for some that doing one goal at a time is the best way that they know how to deal with challenges.

The reason why I say that you can accomplish both goals is that it would definately be in your best interest to get the condo. The government is giving an incentive to buy one and you definately want to take advantage of that absolutely. In the other sense you have had these two goals to get your own home, and to also get your college degree.

I think that taking on both of them and working toward those goals would be self-fulfilling and that you and your wife would be very happy and proud of yourself for accomplishing two things that have always been an issue for you and that is that you have wanted to complete both of them and get them both out of the way.

I can appreciate and understand why debt would be an issue for you. That is an issue for anyone and it can really impede your ability to get other things in the future. But, in my honest opinion, I think that it would be a great investment for both of these, and if they put you into debt a little bit, it would at least help you to determine whether you want to continue with your small business at home, or if you would rather get into some kind of career and profession. In other words, your self-esteem and confidence level would be lifted and you would feel free to be able to explore other avenues.

I know that there would obviously be stressed involved, and there would be a certain level of uncertainty, but with any kind of goal there is always obstacles that have to be worked out. But, if you let debt get into the way, and time is a precious commodity that you can't ever get back, so if you could get to accomplishing both simultaneously and get both goals completed that would be an important accomplishment.

I am not saying to go into debt and to ignore that there would be more bills and more expectations. But, we all deserve to have a little happiness and to be able to accomplish what we set out to do, and if we deprive ourselves of the ability to do so just because it will cost a little more, or that more is expected than you will miss out on the big picture.

If you want to just do the condo as others have suggested that is fine. It is a great accomplishment. And, if you want to put off going and getting your college degree until afterwards you can do that as well. However, if I could make it work I would do both and the longer you put off one goal the more likely it is that you may not in fact do both. Not saying you wouldn't, but I just think that both could be accomplished.

If you're worried about debt, you have 6 months from the time you graduate before you have to start paying on your loans. Perhaps that's something you can think about. I'm not advocating going into debt and making your life a mess. But, I would at least like to point out another perspective and that is that you might be able to accomplish both.

 

Those are all very good points, and I can see your side of the issue. But I would counter with the fact that it is very difficult to attend school, especially a demanding graduate school, when you are stressed with financial matters. Too much debt could cause other financial crises, as well. If a person can handle that much stress, then I suppose that I would not argue with such a decision. For me, however, the overabundance of debt would be a big distraction. If you are young, there is no reason why you couldn't wait a few years to get a degree.

 

I vote condo. There is a great sense of satisfaction in being a homeowner, and you sound very resourceful. Buy it, and continue taking CLEP, DANTES, FEMAS, and whatever else is cheap that you can do one a time. You don't have to stop going to school that way. To hell with student loans! I never had one.

Abner

 

I agree; student loans suck. I'm paying for my current degree out-of-pocket.

 

I may very well be in the minority here. I don't see anything wrong with getting the condo right now, but if there was a means to make it work where both goals could be accomplished simultaneously than I would go that route. But, that's just me.

I understand that debt can be a burden and cause stress. I don't have any issue with them just getting the condo, but if I could accomplish both at the same time I would. Both goals are investments, and that's how I think we all have to look at it.

In addition, with the rising costs of tuition, etc., that is another issue that you need to keep in mind as well. I'm just simply trying to point out another perspective and to give a different take on the matter.

 

I agree, both at once would be really great. Unfortunately, most of us could not pull it off. You might be made out of tougher stuff than most people, especially me.

 

If there are no kids now but might be later, I vote the degree, fastest and cheapest way possible. Both would be better, of course.

Phillip

 

You know, I want to do both, but I really make so little money right now, the business has fizzled, and this has been an awful month, my tax return blows (like 200 bucks), and the damn car. Debt scares the crap out of me, I'm not a particularly good test taker. I moved out when I was sixteen and learned that I'm a one step at a time kind of guy most of the time, when I take on too much I generally end up with less getting done, even on a day to day basis. I'm not especially good at handling stress. I'm 21, btw and so is my wife. I also consider myself over cautious, so I could easily miscalculate what we really are capable of...maybe we could do both, but it's risky. I see too many people going under around me and if I bungled and wasted our money I would never forgive myself.

Right now I'm examining every expense in our life, I'm switching cell phone service to cricket today (I hope), I will likely take the full coverage off my car, see if there is an out on my bad qwest contract (40/mo for really poor 1.5mbps), and try to cut a deal with my apartment complex for signing a short lease. The problem is I'm usually pretty good at not screwing up in the 1st place so there won't be too much to gain by adjusting things (and there is risk there too, especially with insurance, but I no longer value my car highly enough to pay this anymore). May cut expenses by $75 or something, but it's a start.

I really want to do both, and I agree w/philosophy that if I do not do it soon the likelihood of it ever happening diminishes greatly.

Thanks for the advice I will prioritize the condo, but I will continue to investigate doing both.

 

At age 21 I would recommend not buying real estate (condo or other home) - it limits your choices when a great job opportunity arises beyond commuting distance. I used apartments for many years and moved from good job to better job to even better job - experience I gained working for several companies really paid off. I realise you may have family or other reasons to stay in a given area but a few years away would not hurt.

 

A degree is an investment. A condo is an expense.

 

You are not only a smart young man, but you are street smart. You know yourself better than anyone.

I bought my first PUD (Planned Urban Development) years ago when there was a REALLY bad real estate bust. The PUD is really cool because it is a cross between a townhome and single family home. The only joining wall is from the garage, and they have a backyard. I had it for two years, it went up in value, and I bought my house in a high price area of CA. I was a little bit older than you when I bought my PUD, then later my house.

Moral of the story? I don't really know. I do know that at that time I was not really sure what I wanted to do as far as career. Could have been different if I took out a loan for $40-$100k+ and ended up with debt.? Maybe, but I think I still would have been unsure, and I know some of the dudes that did take out those kind of debts are still paying on some. Because of that, they have been locked out of the housing market in the O.C.

The fact is many people are rethinking going into huge debts for a degree. Jobs just don't pay as much as they used, and just having a degree doesn't cut it. Here is what I am saying, buy the condo (the market will rebound and you will make money), and keep testing via CLEP, DANTES, FEMA, whatever! Nobody is saying you have to quit school, and you DON'T have to take out debt. Plus, many cc's have great programs for people that are low income, especially under this administration.

Now, before everybody gets there chonies up in bunch, I am not saying "Don't get a degree", I am saying "Get a degree while still living your life". And you know what? Here is another thing. Some people like to say "Gee, I like to make a lot of money". But you know what? most work long hours and are hardly home, so they don't really have time to enjoy it. Me? I get off at 5pm, do my school work, go the gym, go to dinner with my beautiful wife, do martial arts, whatever! I am not killing myself for a title, and I still own a home and drive an MBZ with CA chromed rims. And I did it "Pay as you go". We need to start going back to the lock box approach. Everybody made fun of the guy that used to say that, but this country had a surplus with that approach.

You and I are a lot alike Ricky.

Vaya con dios hermanito,

Abner

 

Go for the condo. There are millions of people with degrees that are out of work. Having one is not as important as having a roof over your head. Should you decide to go back to school at some point, consider a career diploma in a specific field that you like, Once you land a job, ask your employer to flip the bill for a degree.

 

Get the degree, get a job that pays well, buy the house you want. That's the investment route.

Take your current income, carve out enough for your condo, then hang on. That's the expense route.

The degree can make you more money. The condo cannot.

I'd recommend investing in your future, if you have confidence it can pay off.

 

Maslow's hierarchy of needs suggests that you buy the condo:

http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs

However, since you already have a safe place to live I suggest that Rich is correct and that you should believe in yourself and invest in your future.

 

Go to MIT!

That's a great guide to life! They should display it with the food pyramid in schools.

Still, you can almost have it all without upsetting the hierarchy. MIT's free courseware library has about a full college curriculum. They give you video lectures, from real MIT classes, syllabi and assignments...everything the MIT kids get or 40k per year. With MIT + CLEP + DANTES + GRE and Excelsior or TESC or COSC you can have a 1st class education. There are some really great professors. You can see why they made it to the top! My guess is that's it's hard to become a tenured math or computer science prof there!

Anyway, a good plan is to download the curriculum guides for degree programs that interest you from one of the big three along with their guides to credit by examination. Then, take the coures by MIT courseware to prep for the tests that fit the curriculum. Save a few bucks a week until you have enough for the enrollment fee and then submit your test scores all at once. You can probably be very close to a nice technology/math/science degree for VERY cheap. Moreover, you can start now for free, so you can have your home and still self-actualize and keep Maslow happy!

http://ocw.mit.edu/OcwWeb/web/home/home/index.htm

 

Not on Long Island or in Manhattan...

 

This topic probably should be in the "off Topic" section.

If you are still planning on buying a condo make sure you account for homeownrs fees, real estate taxes, compare utilities with what you pay in an appartment, and finally make sure you get a fixed rate mortgage (I know quite a few people who have been burned with adjustable or other types of loans).

I bought a condo (near the beach in So. Cal) for $110K in 1981 in a prestigous area with great schools and after ten years sold it for what I paid for it. My HOA fees and taxes were about equal to renting an apartment. The price did rise a few years after the sale to almost $200K (asking price) but is now back to $150K (now the buildings, pools, etc are aging).

 

You can't live on a piece of parchment paper. But, you can live in a condo.