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Took the plunge and closed our our first house last week!

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  • Took the plunge and closed our our first house last week!

    We spent the first weekend cleaning. So far we are loving our new place. We lucked out, the sellers were extremely organized and left us leftover paint, chalking, etc. and labeled everything for us. They also left a HUGE shopping bag full of manuals for everything in the house that we haven't had time to go through yet. It is a very well maintained house. Yeah!

    Closing costs were about $18271 which we accounted for already.

    Even though this house needs a minimal of work, there's still a LOT to do! Lol.

    And I can see why new home owners get in so much trouble charging everything on credit cards and spending waaaaay too much money.

    I'm getting sucked in myself on the spending spree and really shocked at how much money I've been spending JUST in the last 10 days after closing on the house. We have the money but I honestly never spent so much on consumer goods (except for a car) in such a short period of time! I'm going to have heart papitations when I write checks out to pay off all our credit bills in full when they come in. But right now it seems like we are tossing money in the thousands here and there like confetti. Lol.

    Furniture: $17,000 (family room, bkft area, master BR, DR & LR all done)
    W/D: $ 2400 (front loaders, 4.5 cf capacity with pedestals)
    From Sellers: $ 800 (aquabot, 2 lawn mowers, shopvac & some furniture 4 bsmt)

    Total: $20,200

    That's it for now except maybe a snow blower soon.

    Here's where the money is coming from:

    We orginally budgeted $35K for furniture and home repairs/improvements but wanted to spread it over the next few years at around $2500/mth with an additional $500/mth coming from our monthly budget for a total of $3k/mth.

    We "justified" spending so much $$$$ all at once, aside from the convenience of getting it all done at once with the following additional funds.

    $ 9000 DH's parents gave this $ as a gift the day of the closing for furnishings
    $ 5000 I got my consulting fee the week of closing (not incl. in inc. budget)
    $ 3232 Just got Fed/State tax return refund this week (filed 10/15)
    $17,232 Funds I didn't account for previously in my $35K budgeted figure

    So, in actuality we are "only" spending the net $3K ($2500+$500) I had orginally budgeted for per month.

    In addition, we will be getting:
    $8000 New home buyer credit that we will either get next year or sooner if I amend our 2008 returns.

    So, even though it seems we already blew more than half of our furniture/home improvement fund of $35k in less than 2 weeks, in reality we will still have about $5000 on TOP of the original $35K we had budgeted for.

    It still seems a bit painful. But once these bills are paid for, we should still be on track and in good shape. But I am a whole lot more empathic to those that go crazy and spend like there is no tomorrow when they get a new house. It is really hard to resist the impulse even though I am normally a frugal person. I'm just lucky that I had do have the funds on hand. Many people don't and won't realize the damage they did until they have to pay the bills!
    Last edited by graceful; 11-13-2009, 01:19 PM.

  • #2
    How do you get the credit for 2009 in 2008 if you amend your taxes? Isn't it when you purchase so the credit would be for 2009?

    Houses are always expensive, though not as expensive as pets. And I spent a small fortune this year on home repairs, half expected, the other half irrationally and probably we shouldn't but it is nice.
    LivingAlmostLarge Blog

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    • #3
      Congrats on the new place!

      That's what scares me about buying our first house. It's not just the downpayment and closing costs—you need to outfit that new place! In laws bought a fixer upper and have already taken out a HELOC to update several rooms.

      When the time comes for me, my goal is to have probably 50% of the purchase price in cash for downpayment and closing costs plus initial expenditures.

      Comment


      • #4
        Congratulations on your new house! May you feel well-sheltered, content, and comfortable in it. Enjoy the patterns of light and shadow cast through its windows. Enjoy sweeping those floors that now belong to you. Enjoy snow blowing your very own driveway and walkways. Enjoy taking care of the place that takes care of you!

        Originally posted by elessar78 View Post
        C
        That's what scares me about buying our first house. It's not just the downpayment and closing costs—you need to outfit that new place! In laws bought a fixer upper and have already taken out a HELOC to update several rooms.

        When the time comes for me, my goal is to have probably 50% of the purchase price in cash for downpayment and closing costs plus initial expenditures.
        Well, you might not need to outfit the new place. When we bought our house, it did not even occur to us that we could go buy furniture, curtains, rugs, etc. I was so used to making do with whatever. So the most I did was to remove the mustard-color, foiled & flocked, giant fleur-de-lis wallpaper, then move in to a house to which little had been done in decades. We lived with some aesthetic atrocities on the walls and floors for years before removing them in favor of something, newer, cleaner, and more to our liking. Funny, my big splurge upon moving in was a set of six matching mugs -- and not from the thrift store, by gosh. I thought I was living high to do that. Ha-ha, my own particular version of young and ignorant worked to my advantage over time.
        "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

        "It is easier to build strong children than to repair broken men." --Frederick Douglass

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        • #5
          Joan me too! I still haven't finished furnishing our house. We have the same $100 dinner table and set of 4 chairs from selling our old place. Cheap and easy.

          New couch, but our old one was cheap too. New bed but the back was killing my DH. These were all one big annual purchase. For the most part our furniture is from when we first meet, and quite a few hand me downs from my old roommates.
          LivingAlmostLarge Blog

          Comment


          • #6
            Sounds like you are in good shape. It's always more expensive than you think it will be.

            I've seen lots of people in big new houses, but no furnture, drapes, etc. It's sad really and shows they were not prepared or can't really afford their home.

            Sounds like you had a plan and it's work out. Congrats. As you settle in, the stress will turn into enjoyment.

            Comment


            • #7
              Originally posted by elessar78 View Post
              Congrats on the new place!

              That's what scares me about buying our first house. It's not just the downpayment and closing costs—you need to outfit that new place! In laws bought a fixer upper and have already taken out a HELOC to update several rooms.

              When the time comes for me, my goal is to have probably 50% of the purchase price in cash for downpayment and closing costs plus initial expenditures.
              A new home is as expensive as you make it. (Totally agreed with Joan).

              We didn't have any large cash outlays with 2 home purchases. They were both "move-in ready." The second home was twice as big - but you don't have to furnish it the day you move in. I'd be surprised if we spent $5k over 10 years, personally. Hand-me-downs, gifts, and a lot of used purchases for furnitures, yard tools and appliances. & I am still amazed how "filled to the brim" our house feels, anyway. It happens in a blink. One day your house is half empty, and the next day you are sending piles of stuff to charity.

              To OP - Congrats!!!!

              Comment


              • #8
                Originally posted by wincrasher View Post

                I've seen lots of people in big new houses, but no furnture, drapes, etc. It's sad really and shows they were not prepared or can't really afford their home.
                To be fair - this explains a lot of folks in the housing boom.

                But, I think that is an unfair assumption. Some people just have other priorities.

                We moved into a half-empty home. You wouldn't know it by looking at it today.

                Your post brings up a funny thought. Is the reason that friends and relatives were so generous with hand-me-downs, that they thought we were broke? The thought is kind of funny. We actually got some hand-me-downs we didn't want, but were kind of forced on us. We had reserved 2 rooms for future children, etc. Wouldn't have made sense to fill them up and then have nowhere to put the furniture, etc. Just stuff like that. In the end, the house filled up in a flash (about 2 years?) when filling it with furniture was never much of a priority. We kind of knew it would happen that way though. We wanted a bigger house for the long run. IT didn't have to be fully furnished the day we moved in. Though we had the cash to buy all-new furniture, for the entire house, if that was our priority.

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                • #9
                  Originally posted by LivingAlmostLarge View Post
                  How do you get the credit for 2009 in 2008 if you amend your taxes? Isn't it when you purchase so the credit would be for 2009?

                  Houses are always expensive, though not as expensive as pets. And I spent a small fortune this year on home repairs, half expected, the other half irrationally and probably we shouldn't but it is nice.

                  From irs.gov


                  "First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options."

                  Here's the link:

                  First-Time Homebuyer Credit

                  Filed my 2008 taxes on 10/15/09. The closing didn't happen before then. So, I can amend it or wait until 2010 when I file my 2009. Haven't decided yet...

                  Comment


                  • #10
                    Thanks everyone for your well-wishes!

                    Originally posted by elessar78 View Post
                    Congrats on the new place!

                    That's what scares me about buying our first house. It's not just the downpayment and closing costs—you need to outfit that new place! In laws bought a fixer upper and have already taken out a HELOC to update several rooms.

                    When the time comes for me, my goal is to have probably 50% of the purchase price in cash for downpayment and closing costs plus initial expenditures.
                    A good plan! It's the same one we followed!

                    Originally posted by Joan.of.the.Arch View Post
                    Congratulations on your new house! May you feel well-sheltered, content, and comfortable in it. Enjoy the patterns of light and shadow cast through its windows. Enjoy sweeping those floors that now belong to you. Enjoy snow blowing your very own driveway and walkways. Enjoy taking care of the place that takes care of you!



                    Well, you might not need to outfit the new place. When we bought our house, it did not even occur to us that we could go buy furniture, curtains, rugs, etc. I was so used to making do with whatever. So the most I did was to remove the mustard-color, foiled & flocked, giant fleur-de-lis wallpaper, then move in to a house to which little had been done in decades. We lived with some aesthetic atrocities on the walls and floors for years before removing them in favor of something, newer, cleaner, and more to our liking. Funny, my big splurge upon moving in was a set of six matching mugs -- and not from the thrift store, by gosh. I thought I was living high to do that. Ha-ha, my own particular version of young and ignorant worked to my advantage over time.
                    Originally posted by LivingAlmostLarge View Post
                    Joan me too! I still haven't finished furnishing our house. We have the same $100 dinner table and set of 4 chairs from selling our old place. Cheap and easy.

                    New couch, but our old one was cheap too. New bed but the back was killing my DH. These were all one big annual purchase. For the most part our furniture is from when we first meet, and quite a few hand me downs from my old roommates.
                    Originally posted by MonkeyMama View Post
                    A new home is as expensive as you make it. (Totally agreed with Joan).

                    We didn't have any large cash outlays with 2 home purchases. They were both "move-in ready." The second home was twice as big - but you don't have to furnish it the day you move in. I'd be surprised if we spent $5k over 10 years, personally. Hand-me-downs, gifts, and a lot of used purchases for furnitures, yard tools and appliances. & I am still amazed how "filled to the brim" our house feels, anyway. It happens in a blink. One day your house is half empty, and the next day you are sending piles of stuff to charity.

                    To OP - Congrats!!!!

                    I totally hear you all!!! Pretty much all our furniture are hand me downs - except for our bed and a bunk bed we purchased for the kids a few years ago. Their mattresses were hand me downs from DH's parent's house.

                    My parent's home is totally furnished with hand me downs. Everything is "eclectic" and mismatched. We lived in 2-3 places prior and EVERYTHING came with us. My childhood dressers (those formica cubes popular in the 70's) are stacked to the ceiling in my parents bedroom. Can't have enough storage in NYC.

                    I got a lot of furniture that my tenants left behind that were really nice. Then when my in-laws moved out of state, we got more stuff. It's gotten to the point where our entire apartment and my parents are fullfilled with stuff. We had a hard time saying no to good used stuff. I no longer take in new "hand me down" stuff because there just isn't any room. I ask around to see if anyone wants and if no takers, leave it for the "sidewalk recyclers."

                    Nothing is "worth" moving to the new place since we pretty got free and since nothing matches. Some we can discard after being worn totally out and others we could eventually pass on to tenants that don't have much stuff.

                    We saved and saved for the "future" and this is our "dream" house that we were lucky to get as our first house at the same time. We made a pack that nothing would come into the house that we didn't want to stay permanently because we knew that we were the type of people that NEVER throw anything out that have any life in it. LOL.

                    I thought we would add things gradually but I guess it didn't work out that way!

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                    • #11
                      Graceful - I don't think you have to justify yourself. To be clear - I wasn't aiming my comments at you. I just think it's important for people to know that you don't have to walk into home ownership with a pile of bills. It's more some of the comments that I wanted to respond to.

                      Sorry for hijacking the conversation a bit - I truly meant "congratulations" to you!

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