Buying a house— push the budget or no?

posted 2 weeks ago in The Lounge
Post # 17
Member
6454 posts
Bee Keeper

bouviebee :  $10k/year isn’t a huge buffer, but it’s not bad either. Particularly since it doesn’t take into account your SO’s contribution once he moves in (is that soon?). How long until the car is paid off? Could you do lawn care yourself? Cut some restaurants, cable, and the gym? Are you in a stable job with fairly predictable raises? What I’m getting as is whether or not it’s likely that the budget will get more breathing room in the next year or two. If yes then, for me, it’s worth the initial stretch to make sure you’re in a safe neighborhood with good resale value. If no then I would probably wait to buy rather than buy in an unsafe area. 

Post # 18
Member
4018 posts
Honey bee
  • Wedding: January 2017

 I understand that you’re basing the purchase on your income alone but your SO is going to be living with you the majority of the tjme it seems so can’t they pay for up.to half of the monthly costs? That way you can save money for emergency repairs, taxes, etc. If he’s wanting to live in the costlier area because of his late return from work then he should definitely be helping you pay.i would go cheaper if he’s not going to lighten the burden of a.costler home.for you.

Post # 19
Member
175 posts
Blushing bee
  • Wedding: May 2012

How long till your SO moves in?
No way would I do it if I only had $10k extra/year. You coudln’t afford movie tickets, birthday or Christmas gifts, decorating the house, all those things. We bought a 3 year old house in great condition, and we had to spend $3k+ just the first 2 months alone fixing a few things, like the dishwasher was utter crap, laundry vent needed professional cleaning, etc. if you don’t have them already, you’ll need yard tools like a lawn mower, or shovels/snow blowers… 

do you have emergency savings in case your car dies, or you got laid off? 

Post # 20
Member
45 posts
Newbee

I don’t know where you are looking but in most of the United States prices have risen dramatically in the past five years and I see another HOUSING BUBBLE coming, The prices may actually go down because under the new tax law it is difficult to deduct your mortgage interest for many people. I would wait and rent for awhile and take your time looking around. When you see the house your really want you will know. I would save a little more money. Could you wait until you are actually ready to get married to buy a house if it is not too far away? Don’t forget with houses there are unexpected repairs and other expenses. It is not easy  to cover all housing costs with one income and I don’t think you are finding the house your really want just yet. 

 

Post # 22
Member
1111 posts
Bumble bee
  • Wedding: September 2017

RealtorBee here! I don’t have much to add about your price dilemma, you need to do what you’re comfortable with. With good neighborhood comes a premium price.

 

What I am confused about is why you aren’t adding him to the loan now and you plan to re-fi in a few years. You do realize that rates are going UP right? And it will cost thousands to re-fi. If he’s got good credit now, his credit and income may even help bring your interest rate down. Please don’t bank on refinancing because again, rates are going up. 

Post # 24
Member
50 posts
Worker bee
  • Wedding: October 2019

I would buy a house in the better location! For yes safety, I want to be able to take my dog on a walk at night and not worry, but also resale value. You can change and update a house but you can’t move it. Homes in desirable areas will always be worth more especially if there was a housing downturn.

I wouldn’t stress so much about affording it on one income. It’s possible. Which is great in case something unforeseen happened, but you arnt going to be paying for your lifestyle on one income. You will not be house poor! You are planning a life together and although it’s great to be mindful of the worst case scenario I wouldn’t base my housing decision on the worst case actually happening! Both of your salaries should increase in the long run as should the value of your home.

Post # 26
Member
6454 posts
Bee Keeper

bouviebee :  in that case go for the better neighborhood. You have a “tenant” as it were and that will defray the costs and give you better resale value. But as another bee said above don’t count on refinancing since the rates have been going up. 

Post # 28
Member
14777 posts
Honey Beekeeper
  • Wedding: June 2011

I don’t really see going for the 300-350k range as a “stretch”. Yes, it’s a stretch if it were you alone, but it’s doable AND with a 10k buffer, which isn’t too bad at all.  Now with your SO’s (possibly future husband and being a dual income household) income, which is about the same as yours in the picture as well, that is more than comfortable and hardly a stretch anymore.  I’d say that range is very comfortable and wouldn’t sacrafice location for it.  Plus, your pay should be increasing in the future, making only more affordable.  We did the same when buying a house… we were very conservative, wanted to be able to afford it on just one salary i f need be and made about the same at the time.  I think our numbers came out so that on one salary, there was zero left over (calcuated with maxed out 401k, so we always could reduce that as a last resort), but we had an entire other salary so it made it very comfortable.  That was 8 years ago and since then our income has almost doubled and the house is very affordable.

Post # 29
Member
1111 posts
Bumble bee
  • Wedding: September 2017

bouviebee :  Fair enough. I totally understand that from a legal standpoint. I just didn’t want you to assume that you could always refinance for a lower rate. Good luck to you both! 

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