How shall we buy our first house?

[Scarlett]

[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
[/quote]

I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.

[jstoesz]

[quote=AN][quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]
Please tell me, what’s more expensive, renting a cabin and share w/ a group of friends or the lift tickets, boards, boots, bindings, jacket, pants, etc. Even if you don’t have to rent a place, how much does it cost to buy the gear and getting lift tickets at a nice mountain?[/quote]

When you live near a resort, you buy a 300 dollar pass and ski as much or as little as the conditions prompt you to go… or if are up for it, backcountry is free…except for gear of course. Now if you only go twice a year, the lift tickets and rentals bite no matter what.

[jstoesz]

[quote=AN][quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]
Please tell me, what’s more expensive, renting a cabin and share w/ a group of friends or the lift tickets, boards, boots, bindings, jacket, pants, etc. Even if you don’t have to rent a place, how much does it cost to buy the gear and getting lift tickets at a nice mountain?[/quote]

When you live near a resort, you buy a 300 dollar pass and ski as much or as little as the conditions prompt you to go… or if are up for it, backcountry is free…except for gear of course. Now if you only go twice a year, the lift tickets and rentals bite no matter what.

[jstoesz]

[quote=AN][quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]
Please tell me, what’s more expensive, renting a cabin and share w/ a group of friends or the lift tickets, boards, boots, bindings, jacket, pants, etc. Even if you don’t have to rent a place, how much does it cost to buy the gear and getting lift tickets at a nice mountain?[/quote]

When you live near a resort, you buy a 300 dollar pass and ski as much or as little as the conditions prompt you to go… or if are up for it, backcountry is free…except for gear of course. Now if you only go twice a year, the lift tickets and rentals bite no matter what.

[jstoesz]

[quote=AN][quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]
Please tell me, what’s more expensive, renting a cabin and share w/ a group of friends or the lift tickets, boards, boots, bindings, jacket, pants, etc. Even if you don’t have to rent a place, how much does it cost to buy the gear and getting lift tickets at a nice mountain?[/quote]

When you live near a resort, you buy a 300 dollar pass and ski as much or as little as the conditions prompt you to go… or if are up for it, backcountry is free…except for gear of course. Now if you only go twice a year, the lift tickets and rentals bite no matter what.

[jstoesz]

[quote=AN][quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]
Please tell me, what’s more expensive, renting a cabin and share w/ a group of friends or the lift tickets, boards, boots, bindings, jacket, pants, etc. Even if you don’t have to rent a place, how much does it cost to buy the gear and getting lift tickets at a nice mountain?[/quote]

When you live near a resort, you buy a 300 dollar pass and ski as much or as little as the conditions prompt you to go… or if are up for it, backcountry is free…except for gear of course. Now if you only go twice a year, the lift tickets and rentals bite no matter what.

[(former)FormerSanDiegan]

[quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.

[(former)FormerSanDiegan]

[quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.

[(former)FormerSanDiegan]

[quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.

[(former)FormerSanDiegan]

[quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.

[(former)FormerSanDiegan]

[quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.

[bearishgurl]

[quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]

hijack: I plan on living in town in South Tahoe on the free bus line to Heavenly. A season pass purchased the previous summer is $359. Of course, you take your chances with an early purchase that it will be a bad season. But with the lift-ticket prices of today, $359 = only 4 days of skiing. It would have to be a REALLY bad year not to be able to get in at least 4 full days of skiing! A multi-resort season pass issued by Vail Resorts (purchased the previous summer) is about $599. This will get you unlimited lift privileges at Heavenly, Vail, Beaver Creek, Breckenridge, Keystone and Northstar at Tahoe. Colorado very rarely has bad ski seasons and the Vail Resort pass is a GREAT deal if you can afford to travel! That’s enough resorts for anyone to ski in any season :=]

The biggest expenses of skiing in order of amount are: lodging, per-diem food (if eating at restaurants on the mtn or otherwise), lift tix, convenient parking and locker rental midway (if packing lunch). $8-$10 day lockers can be rented by the season for about $100 (or about $150 for ski-length lockers).

A “local” residing at South Tahoe pays $359 season for a season lift pass plus locker rental of their choice :=)

There are quite a few 40-55 year-old SFR’s there, situated on 6K to 14K lots right in town that are currently listed for $175K to $350K.

[end of hijack]

[bearishgurl]

[quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]

hijack: I plan on living in town in South Tahoe on the free bus line to Heavenly. A season pass purchased the previous summer is $359. Of course, you take your chances with an early purchase that it will be a bad season. But with the lift-ticket prices of today, $359 = only 4 days of skiing. It would have to be a REALLY bad year not to be able to get in at least 4 full days of skiing! A multi-resort season pass issued by Vail Resorts (purchased the previous summer) is about $599. This will get you unlimited lift privileges at Heavenly, Vail, Beaver Creek, Breckenridge, Keystone and Northstar at Tahoe. Colorado very rarely has bad ski seasons and the Vail Resort pass is a GREAT deal if you can afford to travel! That’s enough resorts for anyone to ski in any season :=]

The biggest expenses of skiing in order of amount are: lodging, per-diem food (if eating at restaurants on the mtn or otherwise), lift tix, convenient parking and locker rental midway (if packing lunch). $8-$10 day lockers can be rented by the season for about $100 (or about $150 for ski-length lockers).

A “local” residing at South Tahoe pays $359 season for a season lift pass plus locker rental of their choice :=)

There are quite a few 40-55 year-old SFR’s there, situated on 6K to 14K lots right in town that are currently listed for $175K to $350K.

[end of hijack]

[bearishgurl]

[quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]

hijack: I plan on living in town in South Tahoe on the free bus line to Heavenly. A season pass purchased the previous summer is $359. Of course, you take your chances with an early purchase that it will be a bad season. But with the lift-ticket prices of today, $359 = only 4 days of skiing. It would have to be a REALLY bad year not to be able to get in at least 4 full days of skiing! A multi-resort season pass issued by Vail Resorts (purchased the previous summer) is about $599. This will get you unlimited lift privileges at Heavenly, Vail, Beaver Creek, Breckenridge, Keystone and Northstar at Tahoe. Colorado very rarely has bad ski seasons and the Vail Resort pass is a GREAT deal if you can afford to travel! That’s enough resorts for anyone to ski in any season :=]

The biggest expenses of skiing in order of amount are: lodging, per-diem food (if eating at restaurants on the mtn or otherwise), lift tix, convenient parking and locker rental midway (if packing lunch). $8-$10 day lockers can be rented by the season for about $100 (or about $150 for ski-length lockers).

A “local” residing at South Tahoe pays $359 season for a season lift pass plus locker rental of their choice :=)

There are quite a few 40-55 year-old SFR’s there, situated on 6K to 14K lots right in town that are currently listed for $175K to $350K.

[end of hijack]

[bearishgurl]

[quote=captcha][quote=AN]Snowboarding/skiing is not a cheap sport…[/quote]
Unless you live 30 minutes from a resort :)[/quote]

hijack: I plan on living in town in South Tahoe on the free bus line to Heavenly. A season pass purchased the previous summer is $359. Of course, you take your chances with an early purchase that it will be a bad season. But with the lift-ticket prices of today, $359 = only 4 days of skiing. It would have to be a REALLY bad year not to be able to get in at least 4 full days of skiing! A multi-resort season pass issued by Vail Resorts (purchased the previous summer) is about $599. This will get you unlimited lift privileges at Heavenly, Vail, Beaver Creek, Breckenridge, Keystone and Northstar at Tahoe. Colorado very rarely has bad ski seasons and the Vail Resort pass is a GREAT deal if you can afford to travel! That’s enough resorts for anyone to ski in any season :=]

The biggest expenses of skiing in order of amount are: lodging, per-diem food (if eating at restaurants on the mtn or otherwise), lift tix, convenient parking and locker rental midway (if packing lunch). $8-$10 day lockers can be rented by the season for about $100 (or about $150 for ski-length lockers).

A “local” residing at South Tahoe pays $359 season for a season lift pass plus locker rental of their choice :=)

There are quite a few 40-55 year-old SFR’s there, situated on 6K to 14K lots right in town that are currently listed for $175K to $350K.

[end of hijack]

[Author]

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