I’m not trying to talk myself into buying it. However, I have to admit…given where prices WERE… 325k-350k for this house is not bad given the current prices…of course it may go down even more.
I’m not fooling myself into thinking I can afford it. I earn about $140k/year…full gov’t benefits, plus a pension system that would put most 401k plans to shame. I have a student loan that sucks up a good $1000/month….and one car payment. Other than that, my only expenses are the wife and two kids. I drive a POS to work and back. but do have a nice new family car for the wife/kids. it’s safe reliable..but it was a splurge…but i’m sure my ONE car payment is probably less than most of my co-workers who both drive 3 series BMWs or Lexus’.
so affording a $3000/month nut is not a stretch. I did it for several years on my last house when i was earning less than I do now.
I focus on the rent/buy pricing b/c if it is honestly cheaper to buy or the same – then it makes sense. Sure, i could maybe ride the market out and get more for my money…but while we all predict prices will go down…no one knows for sure..and no one knows how much.
i would NEVER buy this house if the prices were far more expensive than renting. that’s why i never bought here in this area when i moved here…renting was FAR cheaper than buying. now that prices have come down,t hat margin/gap is shrinking..and renting..while perhaps a bit cheaper. is by no means a HUGE savings.
100% financing and all costs comes to:
$2200-2300 for the mortgage.
$600 property taxes
$150 HOA
$150 insurance
$100 Gardner
Total = $3200-3300.
Tax savings is roughly $700-800/month.
$300/month to principle.
Net costs come out to roughly $2000ish. Rent cost $1800.
so i’m paying an extra $200.
there won’t be many if any trips to home depot on a brand new home that has every upgrade you need already in it. it’s totally done. i’m sure my wife could find a thing to do here or there…what wife wouldn’t.. but it needs no “projects”.
bottom line – i just want advice. it seems like a good deal..but again, that’s all relative.
