Shold we buy this or not?

[LivingAlmostLarge]

According to your past posts with the 40% savings rate of $190k and $120/$70k split you are basically saving your wife's income.

But on a $120k income and $2600 mortgage it's 26% of income to house. Not terrible but if you are used to more flexibility it could be a shift.

What's the biggest difference between where you are now and moving? Bigger condo = more costs. Why is the HOA $0?

[snafu]

The numbers say you can afford this house and I point out the asking price is not necessarily the selling price. Purchasing a house is a totally capitalistic procedure. The seller is free to ask any price they wish. The buyer's agent must be instructed to negotiate the lowest possible price for their client. Even more critical is your negotiation for the lowest possible mortgage interest rate and best terms with a broker, bank or Credit Union.

I hope you understand that there are huge costs associated with buying, over and above the negotiated price. Since a house is an illiquid asset, will you commit to stay there a minimum of 5 years? Do you understand how the mortgage amotorization table works? This is not a simple interest loan, it's front loaded. The sum paid to principal is paltry unless you plan to make extra payment directly to principal. Your monthly payments include property taxes, interest and insurance at minimum. As an owner, you are responsible for every repair, minor to major without knowing what lurks behind the walls.

I support your decision to buy a house and suggest we can likely help answer questions.

[nilsandiego]

Currently we r renting a condo and this place is SFH.

According to your past posts with the 40% savings rate of $190k and $120/$70k split you are basically saving your wife's income.

But on a $120k income and $2600 mortgage it's 26% of income to house. Not terrible but if you are used to more flexibility it could be a shift.

What's the biggest difference between where you are now and moving? Bigger condo = more costs. Why is the HOA $0?

[nilsandiego]

This SFH is listed @520k and we have negotiated $502.5k as final price.i agree with extra home maintenance expenses and that's why we r ignoring potential tax saving which would run close to 5k for first few years exactly bcz of front loaded interest scenario and hopefully that 5k on average should be good enough for relatively young home for upkeep.

I am asking my broker for 2 loan 250k + 100k . Reason behind is I can go aggressive on paying off $100k loan with extra payment in next few years and after that 250k loan can be more manageable.

About non liquid asset that's the painful part as we r still gripping with 150k liquid being stick in place which is not easy to withdrawn.

The numbers say you can afford this house and I point out the asking price is not necessarily the selling price. Purchasing a house is a totally capitalistic procedure. The seller is free to ask any price they wish. The buyer's agent must be instructed to negotiate the lowest possible price for their client. Even more critical is your negotiation for the lowest possible mortgage interest rate and best terms with a broker, bank or Credit Union.

I hope you understand that there are huge costs associated with buying, over and above the negotiated price. Since a house is an illiquid asset, will you commit to stay there a minimum of 5 years? Do you understand how the mortgage amotorization table works? This is not a simple interest loan, it's front loaded. The sum paid to principal is paltry unless you plan to make extra payment directly to principal. Your monthly payments include property taxes, interest and insurance at minimum. As an owner, you are responsible for every repair, minor to major without knowing what lurks behind the walls.

I support your decision to buy a house and suggest we can likely help answer questions.

[LivingAlmostLarge]

I think it's doable. We do the same thing on one income numberwise. Now it's tight because we budget less around $5k versus $6.1k. But seems like a reasonable move. Closer to work, SFH versus condo. Did you sell your condo?

[nilsandiego]

I think it's doable. We do the same thing on one income numberwise. Now it's tight because we budget less around $5k versus $6.1k. But seems like a reasonable move. Closer to work, SFH versus condo. Did you sell your condo?

We never owned condo. Last year we were debating and it didn't work out.