- 2 years ago
- Wedding: May 2016
I know usually the answer is No, but hear me out….
So for the past year we have been trying to find a house in specifically 2 neighborhoods, my in-laws, who we are very close to and help us take care of our baby, live there. The problem is everyone else seems to want to live there too since it is in a great school district, walking distance to grocery stores, parks, starbucks, a lake, restaurants, etc. it is a highly desired central neighborhood in the city. In the past 2 years, developers have recognized this, bought all the old homes they could and have rebuilt $ million + homes in their place . As a result prices there continue to soar. It also feels like houses dont come on the market very often there.
My husband and I are typically frugal and budgeted for home buying accordingly. Right now there is only 1 house on the market in that neighborhood – it is exactly what we have been looking for, but is it is priced at the very top of our budget, i.e. it will be around 27% of our monthly take home pay (after taxes, insurance, etc but before retirement), we ideally wanted to be more at 25% of our monthly take home. I should mention we also currently don’t have any debt, we pay off our credit cards every month, cars paid for, no student loans, etc.
The house is dated but well taken care of with new roof, newish HVAC, waterproofed basement, new driveway, etc so we can move right in.
We had originally planned to wait and see what the Spring market brings but we have found that there has already been 2nd showings to other buyers for that house, and the seller is not very open to budging on price since they are just empty nesters and arent in any rush. We have also heard of additional homes set to come on the market in march, that will be priced 100K over this house (the houses bought by the flippers) so we’re worried waiting will just bring more buyers and higher prices.
I know we will be very happy in this home and we are certainly tired of living in purgatory in a tiny apartment (my mother will be coming soon to stay with us too for ~6 months), but are nervous about such a big purchase.
So what are your thought Beautiful Bees? Gamble on what the spring market may bring? (we are okay with lower priced fixer uppers since then we could make it our own) orrr buy this house since 27-28% of take home isnt as risky as we worry it is?
TLDR: Buy well kept dated home in highly desired neighborhood at top of budget with prices climbing fast & steep before spring market or wait for spring market at risk of being priced out