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Started By
Message
Buying vs Renting .
Posted on 8/6/16 at 8:37 pm
Posted on 8/6/16 at 8:37 pm
Long story as short as possible :
Scheduled to close this month on first home .
Current cash to put in bank each month after bills aka "savings" (2500$)
Expected cash to put into bank each month after bills with mortgage etc . (1700$)
Current cash in bank 60k .. No
Other assets .
Expected cash after closing : 48k .
Question .. Is 1700$ a month still good to be putting away each month ? This includes a few hundred set aside for emergency repairs .
House is 13 years old , AC, water heater , furnace replaced last year , all appliances including washer dryer fridge etc staying .
I can continue to rent and keep saving 2500 a month .. Question is , I don't have investments , assets , etc .. It's just going into savings .
Is it time to put it in a house ? Then 1700$ each month to savings .
Scheduled to close this month on first home .
Current cash to put in bank each month after bills aka "savings" (2500$)
Expected cash to put into bank each month after bills with mortgage etc . (1700$)
Current cash in bank 60k .. No
Other assets .
Expected cash after closing : 48k .
Question .. Is 1700$ a month still good to be putting away each month ? This includes a few hundred set aside for emergency repairs .
House is 13 years old , AC, water heater , furnace replaced last year , all appliances including washer dryer fridge etc staying .
I can continue to rent and keep saving 2500 a month .. Question is , I don't have investments , assets , etc .. It's just going into savings .
Is it time to put it in a house ? Then 1700$ each month to savings .
5
Posted on 8/6/16 at 9:00 pm to BearCrocs
I didn't follow any of that. Bottom line is that if it floats, flies, or fricks, you're better off renting it.
Posted on 8/6/16 at 9:02 pm to BearCrocs
Is this a humble brag thread that you are banking 1700 a month extra?
Posted on 8/6/16 at 9:19 pm to HailToTheChiz
Non humble brag , just looking for advice
Posted on 8/6/16 at 9:26 pm to BearCrocs
How long you plan on staying in the house?
Eta
I just realized you said you are closing on the house at the end of this month...having second thoughts or what?
Eta
I just realized you said you are closing on the house at the end of this month...having second thoughts or what?
This post was edited on 8/6/16 at 9:28 pm
Posted on 8/6/16 at 9:27 pm to HailToTheChiz
Five years minimum .
Posted on 8/6/16 at 9:29 pm to BearCrocs
Go for the house. Sounds like you have plenty of money to start investments if you need to
Posted on 8/6/16 at 9:33 pm to BearCrocs
How old are you with 60K in assets out of curiosity?
I'd go for the house since you plan to stay for awhile and have good cash flow as long as you aren't significantly underestimating costs.
I'd go for the house since you plan to stay for awhile and have good cash flow as long as you aren't significantly underestimating costs.
Posted on 8/6/16 at 10:00 pm to GoldenD
I'm 28 .
Posted on 8/6/16 at 10:13 pm to BearCrocs
Why so much cash and no retirement funds? If you can still bank $1,700/mo in savings and already have $48k after closing, I'd keep banking half, maybe less, and start investing in a Roth IRA and other retirement type accounts.
Only 'issue' I see is if appliances are original or not, and the roof- it could last another 15-20 years, or it could have to be replaced in 5 years.
Otherwise, if it's a stable or up & coming neighborhood, I think go for it.
Only 'issue' I see is if appliances are original or not, and the roof- it could last another 15-20 years, or it could have to be replaced in 5 years.
Otherwise, if it's a stable or up & coming neighborhood, I think go for it.
Posted on 8/7/16 at 7:05 am to BearCrocs
I'd say you're in a pretty good financial place at 28 given the provided info. It's time to start putting some money into retirement though. At $1700/mo extra you could easily swing putting into a 401K up to employer match (at a minimum) and fully funding a Roth IRA at $5500/yr. With 48K after closing, moving and furnishing the house you'll still have a large chunk of money for an emergency fund.
Posted on 8/7/16 at 7:31 am to GoldenD
Thanks for the advice . Employer doesn't offer any sort of retirement , 401k etc .
Options ?
Options ?
Posted on 8/7/16 at 9:00 am to BearCrocs
I'd recommend getting started with a Roth IRA, vanguard is the general suggestion due to their low fees and plentiful options. With the cash you have Id say go ahead and fund the entire 2016 $5500 contribution at once. If you're unfamiliar with a Roth IRA. It is an "Individual retirement account" that grows tax free. With that $5500 you'll have a variety of things you can invest in. If you want to keep it hands off, then just put it in an index fund and forget about it. Once you're ready to commit to doing this many people here can help steer you in the right direction on which index fund to invest in given your risk tolerance and goals.
Posted on 8/7/16 at 9:32 am to BearCrocs
quote:
Buying vs Renting .
quote:Isn't it a little late to be asking your question? Or, are you considering backing out of the purchase?
Scheduled to close this month on first home .
Posted on 8/7/16 at 10:03 am to GoldenD
Thank you for your help. Greatly appreciated
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