Is $300,000 too expensive for someone with a salary of $50,000? (Denver: foreclose, rental)

[Kibbiekat]

Originally Posted by the3Ds

Oh!

When I read the post, I thought they were responding to the last part of the OP's thread asking if they are looking in the right price range...not answering "yes" to her question which is the title of the thread. My bad. First step to getting help is admitting you have a problem!

no problem. Maybe I wasn't clear.

[KCtoDenver]

Not unless you buy a real fixer-upper and plan to turn it for a profit. You are probably young. This is your time to be investing in yourselves and planning for rainy days.

This mortgage on your income would put you on the brink of disaster if you lose your income. Plus, you will have little to nothing to be putting into a ROTH or any other sort of investment plan. Or, for that matter, to even enjoy all Denver has to offer.

Good luck

[LisaCACO]

given the way the market is now, I'd rent too before buying. that's what we did when we moved from CA 3 years ago. Everyone suggested we'd just "love" a certain area based on where my husband was working, our income, lifestyle, etc. rented there and knew from the first week that I was not buying a home there. it was fine, just no way was it for me. that year was great because it gave me time to figure out what I hated about that place and talk to folks about what I wanted, visit areas, etc. nothing like actually being here. And if you don't have kids, or if your kids are under the age of 5, you can do that. it's harder if your kids are school age.

[CuriousLindsey]

Thanks for all the replies!

Just to clarify a few points you all brought up:
1. We do plan to rent at least for 6-12 months to get an idea of where we would want to buy.
2. The $50,000 salary is net, not gross.
3. That was only my husband's salary. I would be getting a job, I just have no idea how much I would be making. We wanted to try to make it on one salary just in case one of us was without a job for some reason. So, there would be a second salary that we would pretty much be putting entirely into savings, so we could dip into that if need be.

[David Aguilar]

If you want to breathe, total mortgage/taxes/PMI/etc payment shouldn't exceed $1041.67.

[crazyme4878]

I didn't read all the posts. Did someone mention the heating bills? Moving from Baton Rouge to Denver will be a huge difference in temperature and depending on the insulation and heat source, it could be very expensive. Just a FYI for figuring out your expenses.

[EscapeCalifornia]

Originally Posted by crazyme4878

I didn't read all the posts. Did someone mention the heating bills? Moving from Baton Rouge to Denver will be a huge difference in temperature and depending on the insulation and heat source, it could be very expensive. Just a FYI for figuring out your expenses.

But they won't need nearly as much air conditioning in the summer.

[David Aguilar]

Originally Posted by EscapeCalifornia

But they won't need nearly as much air conditioning in the summer.

I never had an electric (including heat and A/C) bill over $150 (2200 sq ft house). I think the fear of high heat bills here is grossly overstated.

[Bob from down south]

Don't forget to include in your planning the very real likelihood that taxes of all kinds and at all levels will be going up--perhaps dramatically--to pay for our government's irresponsible borrowing binge. Do a budget, and if there isn't enough money to cover a doubling of all the taxes you pay, you could well find yourself not just house-poor, but among the foreclosed and forelorn.

Also, as far too many have discovered, you need a cash emergency fund of at least six months expenses--INCLUDING six months of house payments (the full meal deal--PITI+HOA). Owning a home isnt such a great deal when you get pink-slipped and don't even have enough cash on hand to pay the mortgage for 90 days while looking for a new job. A Notice Of Default isn't the kind of document you want framed in the front hall along with junior's soccer team photos...

Debt is Dangerous

[Kibbiekat]

Originally Posted by crazyme4878

I didn't read all the posts. Did someone mention the heating bills? Moving from Baton Rouge to Denver will be a huge difference in temperature and depending on the insulation and heat source, it could be very expensive. Just a FYI for figuring out your expenses.

Originally Posted by EscapeCalifornia

But they won't need nearly as much air conditioning in the summer.

Originally Posted by David Aguilar

I never had an electric (including heat and A/C) bill over $150 (2200 sq ft house). I think the fear of high heat bills here is grossly overstated.

In my experience, the water bill goes up in the summer, and the utility bill goes down. Opposite in the winter. They kind of even each other out.