Is it impossible to buy a house in cash if you work part time?

I have always dreamed of buying my own house in cash. I would save up and never touch the money. My parents were happy when I decided to go into the medical field, but after a few days, I was diagnosed with a debilitating illness. My parents said I can stay at home. I am looking for work at home jobs and I want

I have always dreamed of buying my own house in cash. I would save up and never touch the money. My parents were happy when I decided to go into the medical field, but after a few days, I was diagnosed with a debilitating illness. My parents said I can stay at home. I am looking for work at home jobs and I want something therapeutic. I stumbled on one where I am mentoring children who have a 3 percent chance of going to college and really need help in their life. It's part time and only pays 10 an hour. It is very rewarding it seems. Yet my dad said I will never reach my dream and I will be tied to a mortgage forever. Can someone please help?

Best Answer:

MsBittner: Are your parents willing to support you forever, paying for everything you need and some of what you want even though you work part time?

For purposes of argument, let's say they are. And let's say you work 20 hours a week, never more, never less, except for two weeks off every year because I sure like working with round numbers. And let's not worry about taxes just now.

20 hours x $10 an hour = $200 a week.
50 weeks x $200 = $10,000 a year earned

What does a small house in good condition, in a decent neighborhood, cost where you live? I've seen adequate houses for as little as $60,000 in small towns, and similar houses in cities and nearby suburbs for $180,000. And of course a city like New York, LA, San Francisco, etc. you're talking more like $600,000 for that same small house.

Next up, how will you buy the things a house needs? You've got to have furniture, linens, food, utilities, transportation, probably a cell phone and internet. Even if you own your house free and clear, can you do all that on $800 a month–while paying your school taxes and property taxes as a home owner, plus invisible necessities like insurance on the house, a car if you drive, and health insurance? Many people cannot.

Other answer:

MsBittner:
are your parents shalling to support you forever, paying for everything you need and some of what you want even though you work part time?

for purposes of argument, let's say they are… and let's say you work 20 hours a week, never more, never less, except for two weeks off every year 'cause i sure like working with round numbers… and let's not worry about taxes just now…

20 hours x $10 an hour = $200 a week…
50 weeks x $200 = $10,000 a year earned

what does a small house in good condition, in a decent neighborhood, cost where you live? i've seen adequate houses for as little as $60,000 in small towns, and similar houses in cities and nearby suburbs for $180,000… and of course a city like new york, la, san francisco, etc… you're talking more like $600,000 for that same small house…

next up, how shall you buy the things a house needs? you've got to have furniture, linens, food, utilities, transportation, probably a cell phone and internet… even if you own your house free and clear, can you do all that on $800 a month–while paying your school taxes and property taxes as a home owner, plus invisible necessities like insurance on the house, a car if you drive, and health insurance? numerous people cannot…

Elaine:
You do the math. Assume a 40 hour week with no deductions in salary, and no rent other living expenses at the moment. @$10/ h you are earning $400/w. You can calculate your total yearly income.
Let us say you can purchase a completely furnished house in mint condition for $10000. Then it would take you 25 weeks. Now you have to consider things such as property taxes, utility bills, house insurance. Then there are grocery bills and other expenses. Keep in mind that the above scenario doesn't include income taxes, land transfer taxes. lawyer's fees, cost for registering land deed,etc.
All of the above is a nice fantasy quite removed from reality. The price of a house depends on the location, the size and condition of the house. The municipality sets the property and education taxes based on various types of assessments. Utility rates are set by the suppliers and it doesn't matter if these utilities are privately owned companies or publicly owned. Some municipalities charge separately for garbage collection and others include it in property tax.
Now you have your house but you need to replace the roof. Replacing a roof costs anywhere from $5000 -$10000. @ $10.h you can easily calculate the number of hours it would take for a roof. Keep in mind the other expenses like taxes are ongoing, so if your property taxes are, and we'll be really charitable $100/y you need to work 10 hours for the taxes alone.
BUT it's nice to dream. Now back to reality.
Where I live the average cost of a house is $600000 and the property taxes are about $5000+ per year. Garbage collection and water, and utilities are billed separately. Overnight street parking permits are at least $50/m. Next year property taxes will be increased by 2%-3%, water and garbage by 2%. Land transfer taxes are about 2% of the selling price of a home and are paid by the buyer.
Based on this information and your salary of $10/h you tell me how long it would take you to pay cash for my house.
Judy:
I don't know how you could save up enough to buy a house for cash, even with the free living arrangements your parents are providing.
David:
It is an unrealistic and inappropriate goal, especially w/o an earnings history.

Rarely do people own their own home, and those that do paid it off over 15 or 30 years. Let the record prove that very, very few people even own their own home, let alone pay cash for one. Silly to think so, and have shown no means or process or method by which this could be accomplished (children's dreams).

Even if you had the cash, it would be a dead investment financially. Silly, not financially sound.

You have lumped together two separate things: owning a home worth X amount, and earning X amount. This is not rational, but even so, you have not yet even determined the X amount! Silly, childish.

Any bank will recognize deposits in their bank as an earnings history and loan you the money to buy a house. EVERYONE does this, first you earn the money and establish savings and additional earnings for down payment for a house, then you know how much you can borrow.

So why are you the exception? You're being silly and childish w/o reason. It is a long-term goal for us all to own our own house or pay it off. But first, you must get one. Meet reality and get one any way you can.

If you still want to pay cash for a house, look into buying foreclosed and repossessed properties and fix them up. Every city I've seen has a bad part, and you can get a dump for $10,000 (probably worth $20,000 or $30,000 with a little paint and hard work).

Impossible? Not at all. If you can't make an extra $10,000 in a year you're a dreamer.

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