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I clawed my way completely out of debt before buying a home. I rented about 7 years and didn't have to deal with all the costs of first time ownership(can be substantial). It's tempting to go for it and get the dream home but be aware that it's more than a monthly payment. I would personally get rid of as much debt as possible. I think you'll be glad you did.
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"Those who can't remember the past are condemmed to repeat it".- George Santayana. -
I was in a similar situation about 3 years ago and decided to buy a house and I don’t regret this decision. For us, the mortgage interest deduction was an important consideration as this was / is our only major deduction come tax time. As long as you live below your means and can allocate money towards the loan repayment after purchasing a house, I don’t see an issue in buying the house. If you buy a house, how long do you think it will take to pay off the student loans? We focused on paying off the high interest student loans first and knocked these off in the first 3 years after school. Most of our remaining balance is at 2.65%, which we are in no hurry to pay off.Comment
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With that new house also comes those expenses that you think you can do without and can wait a year or two. Them BAM! You are out one weekend and all of a sudden have a new couch or curtains or something like that. The first year of home ownership is more costly than you anticipate b/c of some of these expenses. While you may say you can fight the temptation, your "dream house" needs blinds or a few new rugs, etc... and you do spend more than you will want.Comment
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Yeah my initial plan was to stay with my dad (what he wants us to do) for a year after the wedding and then buy. We should have $80,000 then...I was going to put that towards a $300k home...then I started to think that I can wipe out a LOT of debt with it...Comment
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I guess I get impatient because I am only living off of about $100 (after rent) out of each paycheck and I am sending the rest to savings...and it is difficult. No frills...no new clothes...no new makeup...living off what I have in stock in the pantry...using as little gas as possible...eating out once a month...and I end up just thinking, ENOUGH already...can't I just put 10% down a get a nice, modest home?!
But I guess not. I could free up some money and save less...but I know that stashing $2,000 a month into my ING account on my $50,000 salary is a really great thing to do...and I don't want to stop doing that.
SO...I for now I will just dream of houses and find different ways to make extra money here and there.Comment
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I'm hearing some frustration and self-deprivation in your post. You might find yourself a lot happier if you doubled your disposable income to $200 and decreased your savings to $1,900/month. That would have an inconsequential effect on the savings total but would let you ease up the purse strings a lot and live a little more. Something to think about.Originally posted by ScrimpAndSave View PostSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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I 100% agree. Use the extra money to go on a nice date with your Fiance every other week or something.Originally posted by disneysteve View PostComment
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I agree as well. It's like that old 38 special song, "if you cling too tightly, you're gonna lose control"...Comment
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Yeah I guess so. I don't know. I am afraid it is going to make my home purchase further away if I spend anything on myself. The best that I could afford right now would end up being something like this:
MLS
Which is DEFINITELY be a "starter" home...not one I would want to live in for more than 5 yrs.Comment
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Dream homes come with dream expenses filled with dream furniture and pay dream taxes.
You shouldnt sacrifice the all of your now for the future.Comment
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Well...my dream home is pretty modest. I'm really not looking for anything huge or brand new. I would just like to have a garage and at least 1.5 baths.Comment
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I'm sure you've posted about this before, but is there a reason you need to save $80K for a $175K house? I mean, not that it isn't great to put down 40% but if you are chomping at the bit now, maybe you are being too aggressive. I would think 20% plus closing costs and a few thousand for furniture, etc, would be enough. That would probably be closer to $45K.Comment
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No no...I am saying that if I bought NOW I can afford something that is $175k. If I save $80,000...I would look for a place that is between $250k-$300kish.Comment
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don't rent; buy a house that has payments that will be in the $600-800 p/month range. make it a "fixer upper". use your downtime to repaint, landscape, and put in good/decent floors. this will make you at least $15,000 on a $70,000 home (which gives you a 2 bed/2 bath brick home in the south with a yard!). Sell the house once most of the college loans are payed off. Buy a better house (repeat previous steps if you want to get even better home).
Renting is a waste of money when payments on something that you can own and resell are equivalent.Comment
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