HELP Fellow DPers! Recent College Graduate Debating on Whether to Buy a House or Not!?!Submitted by RonPaulio on Wed, 04/06/2011 - 15:44
Hey DP family.
I am a 23 year old college graduate who is currently toying with the idea of buying a house.
First of all let me fill you in on my situation.
I have been living with my parents in their suburban home in Jacksonville, Florida since I graduated with my finance degree from FSU back in December of last year. I have been working for my father's business during this time and have been saving a lot. I make 500 a week after taxes and have managed to save over 3100 dollars of which I have been storing 100% in physical silver. I have just gotten confirmation that I have been hired to a very prominent mutual fund in town where my salary will be 600-700 dollars after taxes starting in June.
I may sound alarmist but the reason I want purchase a rural home is that I fully believe that we are going to have a full blown dollar crisis and that it will bring chaos and disruption on an unprecedent scale with food shortages, power outtages, and civil unrest. The suburban house my family currently lives in would be no place to weather this shiz-storm. The structure of my house provides a poor defense and the neighborhood is full of ignorant sheeple who wouldn't think twice to burn down a house to get another meal in their stomach.
I live about 20 minutes away from a very rural part of Florida where there are dozens if not hundreds of rural, secluded houses for sale. A lot of these houses are foreclosures or being sold at auction for pennies on the dollar. I mean I am talking a 3 bed 2 bath house on an acre + of land for way under 100k. My plan would be to liquidate my silver holdings as a down payment and finance (with a fixed rate of course) one of these rural homes in order to fority it and be able to start growing my own food. I am not too worried about liquidating my small silver position because my parents have a lot, and I mean A LOT, of physical gold and silver bullion that we bought back in 09 along with preservable food, water, and general supplies.
Now I know the argument that housing prices still have another 20% percent decline ahead and I do believe that they do, but what I'm worried about is rising interest rates. If interest rates start rising significantly in May or June, it will be difficult for me to finance a large portion of the home. I plan to go to the FHA and get a 4-5% fixed rate loan if I can (since the FHA doesn't have any significant lending standards or barriers I figure this is possible). And I know that silver is heading to the stratosphere in the near-medium term and that my silver holdings will skyrocket in value. But silver isn't worth anything if you cannot defend it as well as support yourself. My family also already has thousands upon thousands in physical gold in silver as it is.
So what do you think? Is this plan plausible? Is there a better way to finance? Should I even bother with a down payment and settle for a higher interest rate if I can? Is there anything I have not accounted for?
I really do appreciate that input guys, thanks ahead of time.