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November 6, 2007 at 7:39 PM #10830November 6, 2007 at 8:38 PM #96466
NotCranky
Participant“The argument is something like you guys are young and your incomes are increasing so max out on a home in a nice area and after struggling for the first few years your income will go up and the payment will be easy.”
Yeah besides that the more expensive they are the faster they appreciate! Just kidding.
I would take that advice with a grain of salt but am looking forward to seeing other opinions. If the people giving you the advice are going to pay for your house, if you can’t, you might consider taking it..
November 6, 2007 at 8:38 PM #96527NotCranky
Participant“The argument is something like you guys are young and your incomes are increasing so max out on a home in a nice area and after struggling for the first few years your income will go up and the payment will be easy.”
Yeah besides that the more expensive they are the faster they appreciate! Just kidding.
I would take that advice with a grain of salt but am looking forward to seeing other opinions. If the people giving you the advice are going to pay for your house, if you can’t, you might consider taking it..
November 6, 2007 at 8:38 PM #96537NotCranky
Participant“The argument is something like you guys are young and your incomes are increasing so max out on a home in a nice area and after struggling for the first few years your income will go up and the payment will be easy.”
Yeah besides that the more expensive they are the faster they appreciate! Just kidding.
I would take that advice with a grain of salt but am looking forward to seeing other opinions. If the people giving you the advice are going to pay for your house, if you can’t, you might consider taking it..
November 6, 2007 at 8:38 PM #96545NotCranky
Participant“The argument is something like you guys are young and your incomes are increasing so max out on a home in a nice area and after struggling for the first few years your income will go up and the payment will be easy.”
Yeah besides that the more expensive they are the faster they appreciate! Just kidding.
I would take that advice with a grain of salt but am looking forward to seeing other opinions. If the people giving you the advice are going to pay for your house, if you can’t, you might consider taking it..
November 6, 2007 at 9:18 PM #96486Eugene
ParticipantIt’s obviously a bad idea to stretch yourself and count on future salary raises to bail you out. But that’s not your situation. With 140K pretax income you should have no problem making payments on a 500k or even a 600k house.
November 6, 2007 at 9:18 PM #96547Eugene
ParticipantIt’s obviously a bad idea to stretch yourself and count on future salary raises to bail you out. But that’s not your situation. With 140K pretax income you should have no problem making payments on a 500k or even a 600k house.
November 6, 2007 at 9:18 PM #96557Eugene
ParticipantIt’s obviously a bad idea to stretch yourself and count on future salary raises to bail you out. But that’s not your situation. With 140K pretax income you should have no problem making payments on a 500k or even a 600k house.
November 6, 2007 at 9:18 PM #96564Eugene
ParticipantIt’s obviously a bad idea to stretch yourself and count on future salary raises to bail you out. But that’s not your situation. With 140K pretax income you should have no problem making payments on a 500k or even a 600k house.
November 6, 2007 at 9:41 PM #96494an
ParticipantIF housing is cyclical and IF you buy it at the bottom or when it start to trend up, I think I will stretch a little to buy. Obviously, stretch for me might be very different than stretching for other since I max out my 401k and Roth. Stretching for me would be only saving 500-1000 month in cash after all expenses instead of $2k/month. Those people do make a good point though. If you’re young and you believe your salary will go up not only because of inflation but because you advance in your career, what you think is a stretch now might not be a stretch in 5 years. That’s just my 2 cents.
November 6, 2007 at 9:41 PM #96555an
ParticipantIF housing is cyclical and IF you buy it at the bottom or when it start to trend up, I think I will stretch a little to buy. Obviously, stretch for me might be very different than stretching for other since I max out my 401k and Roth. Stretching for me would be only saving 500-1000 month in cash after all expenses instead of $2k/month. Those people do make a good point though. If you’re young and you believe your salary will go up not only because of inflation but because you advance in your career, what you think is a stretch now might not be a stretch in 5 years. That’s just my 2 cents.
November 6, 2007 at 9:41 PM #96565an
ParticipantIF housing is cyclical and IF you buy it at the bottom or when it start to trend up, I think I will stretch a little to buy. Obviously, stretch for me might be very different than stretching for other since I max out my 401k and Roth. Stretching for me would be only saving 500-1000 month in cash after all expenses instead of $2k/month. Those people do make a good point though. If you’re young and you believe your salary will go up not only because of inflation but because you advance in your career, what you think is a stretch now might not be a stretch in 5 years. That’s just my 2 cents.
November 6, 2007 at 9:41 PM #96572an
ParticipantIF housing is cyclical and IF you buy it at the bottom or when it start to trend up, I think I will stretch a little to buy. Obviously, stretch for me might be very different than stretching for other since I max out my 401k and Roth. Stretching for me would be only saving 500-1000 month in cash after all expenses instead of $2k/month. Those people do make a good point though. If you’re young and you believe your salary will go up not only because of inflation but because you advance in your career, what you think is a stretch now might not be a stretch in 5 years. That’s just my 2 cents.
November 6, 2007 at 10:09 PM #96510kev374
Participantmaxing out your purchasing power is a horrible idea. You are taking into account the IDEAL scenario, that is really bad planning. Whoever told you this is a novice.
You should always account for stuff like job loss, emergency maintainence on the property, unanticipated expenses etc. that can eat into your budget. If you spend everything on the mortgage you will end up using credit cards and you know where that leads! Not a good road.
People have stretched to the max and now are losing their homes because of it.
November 6, 2007 at 10:09 PM #96571kev374
Participantmaxing out your purchasing power is a horrible idea. You are taking into account the IDEAL scenario, that is really bad planning. Whoever told you this is a novice.
You should always account for stuff like job loss, emergency maintainence on the property, unanticipated expenses etc. that can eat into your budget. If you spend everything on the mortgage you will end up using credit cards and you know where that leads! Not a good road.
People have stretched to the max and now are losing their homes because of it.
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