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Started By
Message
Home buying advice
Posted on 6/16/21 at 1:12 pm
Posted on 6/16/21 at 1:12 pm
Fiancé and I have been looking for a house forever. Finally found one. Newly renovated, perfect location, etc. $220,000
Background: I’m supporting myself while in school until next August. When I graduate I’ll be making 70-80K.
Fiancé salary: $45K after tax/retirement/insurance, etc.
Fiancé also has a 4 year old. His school is $500 a month.
Her car note: $330 0% interest
Student loans: $150 a month
Grocery/gas: ~$550 a month
No rent, so she’s got about $50,000 saved up.
She’s basically going to be paying mortgage, etc. herself until I graduate. Am I wrong in thinking this house is not affordable right now? She keeps pointing to her savings, but it would just make me nervous being stretched that thin on her salary. If I was working now I think it would be doable, but that’s not the case.
Looking for advice from much more financially savvy people than myself.
Background: I’m supporting myself while in school until next August. When I graduate I’ll be making 70-80K.
Fiancé salary: $45K after tax/retirement/insurance, etc.
Fiancé also has a 4 year old. His school is $500 a month.
Her car note: $330 0% interest
Student loans: $150 a month
Grocery/gas: ~$550 a month
No rent, so she’s got about $50,000 saved up.
She’s basically going to be paying mortgage, etc. herself until I graduate. Am I wrong in thinking this house is not affordable right now? She keeps pointing to her savings, but it would just make me nervous being stretched that thin on her salary. If I was working now I think it would be doable, but that’s not the case.
Looking for advice from much more financially savvy people than myself.
11
Posted on 6/16/21 at 1:26 pm to HermanBoone
quote:
Fiancé salary: $45K after tax/retirement/insurance, etc.
Wait, is her salary $45k, or is her take home after all taxes and other deductions/contributions $45k?
ETA: If you don't HAVE to buy a house now, why in the world would you choose to with the market being as crazy as it is? Keep saving and wait it out.
This post was edited on 6/16/21 at 1:28 pm
Posted on 6/16/21 at 1:27 pm to HermanBoone
quote:
Newly renovated, perfect location, etc. $220,000
where the hell is this deal
Posted on 6/16/21 at 1:28 pm to HermanBoone
She can't afford it long term by herself and you aren't married or employed yet. Seems high risk on her part to me.
Call me old fashioned, I don't understand the idea of buying a home together before marriage.
Call me old fashioned, I don't understand the idea of buying a home together before marriage.
Posted on 6/16/21 at 1:28 pm to HermanBoone
That leaves $2,220/month before mortgage and the housing market is overpriced AF right now. You COULD technically afford it but on thin ice and your equity will go down when the market cools. I'd keep renting for now, just my $0.02.
Posted on 6/16/21 at 1:29 pm to Chucktown_Badger
quote:
Wait, is her salary $45k, or is her take home after all taxes and other deductions/contributions $45k
Take home after everything is deducted.
Posted on 6/16/21 at 1:35 pm to HermanBoone
So $3,750 monthly cash take home
Minus like $1,300/month from car note, gas, school, strident loans leaving you around $2,500 cash flow every month?
With a down payment the house with insurance and taxes in Louisiana isn't going to be much more than $1k/month.
What is your rent payment?
She's presumably making more than 100k, you can afford a 220k house
Minus like $1,300/month from car note, gas, school, strident loans leaving you around $2,500 cash flow every month?
With a down payment the house with insurance and taxes in Louisiana isn't going to be much more than $1k/month.
What is your rent payment?
She's presumably making more than 100k, you can afford a 220k house
This post was edited on 6/16/21 at 1:36 pm
Posted on 6/16/21 at 1:48 pm to HermanBoone
quote:Do you already have a signed employment contract? If not, and if the job market turns out next year to be better in another city, owning this home would not be good ... at all.
When I graduate I’ll be making 70-80K.
Posted on 6/16/21 at 1:49 pm to HermanBoone
Don't buy a house until you both have paying jobs.
Is the 4 year old going to go to private school?
How many more kids will you have?
Figure out the private school tuition costs BEFORE you buy a house.
Also, I don't recommend having a house in both of your names before you are married. If you are not married yet, any house should be in just one person's name and it should be considered "their" house not "our" house until the marriage license is signed.
Is the 4 year old going to go to private school?
How many more kids will you have?
Figure out the private school tuition costs BEFORE you buy a house.
Also, I don't recommend having a house in both of your names before you are married. If you are not married yet, any house should be in just one person's name and it should be considered "their" house not "our" house until the marriage license is signed.
This post was edited on 6/16/21 at 1:56 pm
Posted on 6/16/21 at 1:49 pm to Mingo Was His NameO
No rent. Moved back with her parents after graduation to save money, so she has about 50K saved up…and she’s ready to gtf out of her parents house. We get married early next year as well.
And right we figured it to be about $1,100 or so total a month.
She doesn’t make 100K. Take home after deductions/taxes was 45k which makes me think it would stretch her thin.
Idk maybe I’m too cheap with my money. The crazy housing market right now makes me nervous as well.
And right we figured it to be about $1,100 or so total a month.
She doesn’t make 100K. Take home after deductions/taxes was 45k which makes me think it would stretch her thin.
Idk maybe I’m too cheap with my money. The crazy housing market right now makes me nervous as well.
This post was edited on 6/16/21 at 1:51 pm
Posted on 6/16/21 at 1:51 pm to NC_Tigah
quote:
Do you already have a signed employment contract? If not, and if the job market turns out next year to be better in another city, owning this home would not be good ... at all.
This is a really good point. And with the market and a likely correction coming, they could very quickly be upside down in that thing.
This post was edited on 6/16/21 at 1:53 pm
Posted on 6/16/21 at 1:52 pm to HermanBoone
quote:
She doesn’t make 100K. Take home after deductions/taxes was 45k which makes me think it would stretch her thin.
It's got to be pretty close if retirement contributions and health care are apart of those deductions.
Either way, I'm not telling you it's a good idea for her to buy the house with so much changing in the next year, I'm just telling you she can afford it.
With the expenses you laid out, she's still have rpughly 1,200 cash flow after bills and mortgage are paid.
This post was edited on 6/16/21 at 1:54 pm
Posted on 6/16/21 at 2:04 pm to HermanBoone
As previous poster mentioned, this home will be an anchor. Do you both plan to stay put?
Buying a first home, moving in, unexpected expenses of setting up first home, planning wedding, getting married, finishing college, hunting for first real job and all that with a 4 year old in tow sounds like a lot for anyone to handle and recipe for stress and friction. Add the costs of maintenance and risk of a major repair. I would slow down and take things a step at a time.
There is something to be gained by renting your first home as a couple and learning what you really want/need before purchasing.
Buying a first home, moving in, unexpected expenses of setting up first home, planning wedding, getting married, finishing college, hunting for first real job and all that with a 4 year old in tow sounds like a lot for anyone to handle and recipe for stress and friction. Add the costs of maintenance and risk of a major repair. I would slow down and take things a step at a time.
There is something to be gained by renting your first home as a couple and learning what you really want/need before purchasing.
Posted on 6/16/21 at 2:05 pm to rocket31
quote:
quote:
Newly renovated, perfect location, etc. $220,000
where the hell is this deal
I'm gonna go with Kenner
Posted on 6/16/21 at 2:06 pm to footballdude
quote:
Also, I don't recommend having a house in both of your names before you are married. If you are not married yet, any house should be in just one person's name and it should be considered "their" house not "our" house until the marriage license is signed.
Yes the house will be in her name. I’m thinking renting would be our best option until we can find a place to settle and/or the housing market corrects itself.
Posted on 6/16/21 at 2:08 pm to TorchtheFlyingTiger
quote:
TorchtheFlyingTiger
Thanks for that. I think you’re absolutely right.
Thanks everybody else for the responses as well. We’ve been having this conversation for days now, and outside input helps a lot.
Posted on 6/16/21 at 2:09 pm to HermanBoone
quote:
so she’s got about $50,000 saved up.
That must be nice
Posted on 6/16/21 at 2:09 pm to Chucktown_Badger
quote:
If you don't HAVE to buy a house now, why in the world would you choose to with the market being as crazy as it is? Keep saving and wait it out.
This is my opinion. That 220,000 house will be back down to 170-180 when the correction happens. Maybe even less.
Posted on 6/16/21 at 2:09 pm to HermanBoone
Man if your able to stay with the parents keep doing it, keep stacking the money. You can rent if you want to but if you want something decent your gonna be pretty much paying a mortgage
Posted on 6/16/21 at 2:11 pm to kengel2
quote:
quote:
If you don't HAVE to buy a house now, why in the world would you choose to with the market being as crazy as it is? Keep saving and wait it out.
This is my opinion. That 220,000 house will be back down to 170-180 when the correction happens. Maybe even less.
False, a renovated house for 220 won't even reach a week on the market. Supply and demand, unless of course it is in a completely shite area lol
This post was edited on 6/16/21 at 2:12 pm
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