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Started By
Message
re: Can I afford a home?
Posted on 1/5/16 at 8:56 am to LSUFanHouston
Posted on 1/5/16 at 8:56 am to LSUFanHouston
quote:
You would probably cut back on that 1500/month you are saving, but if you could find a 200K house, take 40K from that 65K of savings to put down 20 percent, make the seller pay closing costs, and you would have a debt on house of 160K.
My initial PITI when we bought a new house last year, borrowing 170K, is like $1125/month. This was for a 30 year 3.75 percent fixed loan, no mortgage insurance, but paying 400/month for taxes and homeowners insurance.
Not to mention all of the fun costs of homeownership like fixing things. But you have a 10K emergency fund, would still have 25K in savings/other investments, and would still be able to save money.
So then the question is... do you want to do this? 725/month is great for rent and you are saving like crazy. No kids, no spouse, no ties holding you down. If a job offer comes that would make you pick up and move, you could do so easily while renting. Plus if/when you get married and have kids, you will have different ideas about what you want.
Now, you could buy now, and sell later on if the market is great, or turn this house into rental prop. That's not for everyone.
Depending on where you live, I think some areas are becoming overheated and if interest rates tick up some more, values may start to taper off.
I agree with all of this. Nice post
0
Posted on 1/5/16 at 9:05 am to danilo
If you're eventually planning on getting married you might consider buying a nice 1/2 - 2 acre lot in an area where prices are appreciating. That way if you meet the potential Mrs. Danilo you can have that clean slate selected for her to build her dream home and raise little Danilos. At 29 you'd probably be considering that in the next few years if ever.
But in short you can afford a house pretty easily in my opinion. What's the 5 year growth of your income look like?
But in short you can afford a house pretty easily in my opinion. What's the 5 year growth of your income look like?
Posted on 1/5/16 at 9:13 am to LSUFanHouston
You bought in Metairie, I presume?
In in OP's shoes but younger and have slightly more net worth. I don't want to buy a house in the suburbs yet at my age bc I have that dreadful shite to look forward to for the vast majority of my life most likely. I don't particularly want to afford what a decent house in Orleans would cost until my salary significantly increases if personal financial doomsday were to come soon for whatever reason. For selfish reasons, I'm hoping the Orleans market crashes soon bc I'm having a hard time justifying $300/sqft in neighborhoods I'd like to live.
Though like lynx says, enjoyment in life shouldn't come at the expense of incessant savings. Finding the balance between financial safety & doing things you want to do is a difficult balance to find for most.
In in OP's shoes but younger and have slightly more net worth. I don't want to buy a house in the suburbs yet at my age bc I have that dreadful shite to look forward to for the vast majority of my life most likely. I don't particularly want to afford what a decent house in Orleans would cost until my salary significantly increases if personal financial doomsday were to come soon for whatever reason. For selfish reasons, I'm hoping the Orleans market crashes soon bc I'm having a hard time justifying $300/sqft in neighborhoods I'd like to live.
Though like lynx says, enjoyment in life shouldn't come at the expense of incessant savings. Finding the balance between financial safety & doing things you want to do is a difficult balance to find for most.
Posted on 1/5/16 at 9:24 am to Louie T
quote:
You bought in Metairie, I presume?
Actually St. Bernard Parish
Parts of Orleans Parish are out of control. I know a lot of people who live there who are pushing that 33 percent home debt ratio. You go in their house and they are sitting on camp chairs and eating at a folding table because they can't afford dining room furniture.
I hope they got fixed rate mortgages. If they were buying with adjustable and the rates creep up, it could be a problem (but that might be just what you need as a buyer!)
It is a hard balance to find. Most of us spend every day trying to find it. You want to never have to worry about money, but you also want to be able to enjoy it.
Posted on 1/5/16 at 9:34 am to LSUFanHouston
Mentioning furnishings for a house is key as well. First-time homebuyers often have no earthly idea how costly it can be to furnish a 3 bedroom house without buying Walmart furniture.
Not as big of a problem for me as I won't be getting married or having children soon so I'm entirely fine with an 800 foot house/condo; shite on having to clean anything much bigger than that also. The costs associated with filling out and heating/cooling a 2000 sqft house comes as a shock to many moving from 1000 sqft apartments.
Not as big of a problem for me as I won't be getting married or having children soon so I'm entirely fine with an 800 foot house/condo; shite on having to clean anything much bigger than that also. The costs associated with filling out and heating/cooling a 2000 sqft house comes as a shock to many moving from 1000 sqft apartments.
Posted on 1/5/16 at 9:35 am to danilo
Question, danilo. At what age and salary did you start contributing and investing?
This post was edited on 1/5/16 at 9:36 am
Posted on 1/5/16 at 11:04 am to Louie T
quote:
Mentioning furnishings for a house is key as well. First-time homebuyers often have no earthly idea how costly it can be to furnish a 3 bedroom house without buying Walmart furniture.
Not as big of a problem for me as I won't be getting married or having children soon so I'm entirely fine with an 800 foot house/condo; shite on having to clean anything much bigger than that also. The costs associated with filling out and heating/cooling a 2000 sqft house comes as a shock to many moving from 1000 sqft apartments.
I can believe this. I bought new living and bedroom stuff for my apartment and it was around $4K...and that's for only two rooms [to be clear, everything was replaced]. Outfitting an entire new home could easily be $10K+.
Posted on 1/5/16 at 11:09 am to lynxcat
quote:
I can believe this. I bought new living and bedroom stuff for my apartment and it was around $4K...and that's for only two rooms [to be clear, everything was replaced]. Outfitting an entire new home could easily be $10K+.
There is such a wide range in prices and quality for this stuff. Plus how much you use it and wear and tear.
We replaced all of our furniture after Katrina and it's moved twice. We replaced the sofa and love seat about a year ago and we replaced the fridge about 3 years ago. We've replaced the washer and dryer about 2 years ago. We replaced the bed and box spring only in the master bedroom last fall. We refinished our table last summer.
All of the new stuff was undoubtably an upgrade over the older stuff. We can afford better stuff now.
You could go to Ikea and Big Lots and furnish a house real cheap, especially if the stuff won't be used much, for a few years and then replace when you are in a better spot.
Posted on 1/5/16 at 11:16 am to LSUFanHouston
quote:
You could go to Ikea and Big Lots and furnish a house real cheap, especially if the stuff won't be used much, for a few years and then replace when you are in a better spot.
I basically took this approach. I got relatively nice stuff but I am not paying $4K for a West Elm couch any time soon.
Posted on 1/5/16 at 11:16 am to danilo
quote:
Current rent: 725/month
You can certainly make a house payment around that amount.
Posted on 1/5/16 at 12:03 pm to kywildcatfanone
Of course you could.
I just want to commend you on having 125k in savings at age 29 with a current salary of 65k
I just want to commend you on having 125k in savings at age 29 with a current salary of 65k
Posted on 1/5/16 at 12:44 pm to barry
quote:
I just want to commend you on having 125k in savings at age 29 with a current salary of 65k
Doable without student loans and living in an affordable city.
Most of my friends that live in Memphis have $400/month rent in a 3br house in a good area of town. Jealousy
This post was edited on 1/5/16 at 1:20 pm
Posted on 1/5/16 at 12:46 pm to lynxcat
quote:
Doable without student loans and living in an affordable city
Yea, I'm 32 and have a little more savings that he has but much smaller compared to my salary. Then I remembered i have a wife and two kids under 6
Posted on 1/5/16 at 12:54 pm to barry
quote:
Yea, I'm 32 and have a little more savings that he has but much smaller compared to my salary. Then I remembered i have a wife and two kids under 6
You would likely have 300k if it weren't for those loved ones
Posted on 1/5/16 at 1:04 pm to barry
Thank you TOPS & schollies
Posted on 1/5/16 at 1:05 pm to lynxcat
Were you B4 in Memphis?
Posted on 1/5/16 at 1:18 pm to Louie T
quote:
Were you B4 in Memphis?
Technically, yes, but I traveled and was never in the office.
Posted on 1/5/16 at 1:49 pm to SG_Geaux
probably $150-180k house depending on downpayment.
Posted on 1/5/16 at 1:56 pm to LSUFanHouston
Absurd thread.
Can't handle this board anymore.
You could easily afford a 200k home if you could put up 10-20%.
Can't handle this board anymore.
You could easily afford a 200k home if you could put up 10-20%.
Posted on 1/5/16 at 5:55 pm to STLhog
(no message)
This post was edited on 6/25/17 at 7:42 pm
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