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i don't know much about pros/cons of putting 20% down vs. like 5% down. but for me, if i cannot put 20% down then i'm not doing it.
but we each take home about $3600/month... so thats $7200 total
so... 7200 minus 1000 property taxes minus 1500-1900 mortgage minus 500 for utilities... that's $3800 left... then there's other bills like cable, car payments, etc.
whereas right now we rent and its $950 each. so sometimes i feel like we should just keep renting.
That would be a lot of etc... You're fine with a $400k-500k house. I agree that you should put down the full 20% though.
i don't know much about pros/cons of putting 20% down vs. like 5% down. but for me, if i cannot put 20% down then i'm not doing it.
but we each take home about $3600/month... so thats $7200 total
so... 7200 minus 1000 property taxes minus 1500-1900 mortgage minus 500 for utilities... that's $3800 left... then there's other bills like cable, car payments, etc.
whereas right now we rent and its $950 each. so sometimes i feel like we should just keep renting.
1900 is pretty good for rent. If your goal is to save as much money as possible, then you go for the cheapest living option. I dont know the size of your rental, but there are things obviously in home ownership that are outside your calculation.
1. 1500-1900 Mortgage of which some 1500 in the first year (and then decrease slowly over 30 yrs) will be deductible as mortgage interest
2. 12k will be deductible as property taxes
3. Dont forget maintenance -- You need to budget for repairs, so lets say 300 per month
4. Home owners insurance -- maybe $150 per month
5. Landscaping (Do it yourself or hire someone)? If hiring, maybe 130 per month
6. Also remember, of the 1500-1900 you are paying, some of that will be principal, so it is indeed something that you are saving as you are paying down your loan.
7. Homes on average increase in value
I think it is hard to compare the two unless you are comparing the exact same place as a rental and a purchase, but if you compare your entire cost of home ownership, it IS definitely more expensive, but it is your own.
1900 is pretty good for rent. If your goal is to save as much money as possible, then you go for the cheapest living option. I dont know the size of your rental, but there are things obviously in home ownership that are outside your calculation.
1. 1500-1900 Mortgage of which some 1500 in the first year (and then decrease slowly over 30 yrs) will be deductible as mortgage interest
2. 12k will be deductible as property taxes
3. Dont forget maintenance -- You need to budget for repairs, so lets say 300 per month
4. Home owners insurance -- maybe $150 per month
5. Landscaping (Do it yourself or hire someone)? If hiring, maybe 130 per month
6. Also remember, of the 1500-1900 you are paying, some of that will be principal, so it is indeed something that you are saving as you are paying down your loan.
7. Homes on average increase in value
I think it is hard to compare the two unless you are comparing the exact same place as a rental and a purchase, but if you compare your entire cost of home ownership, it IS definitely more expensive, but it is your own.
It is your own and you build equity. There's also piece of mind for your living situation. It is forced savings. If you rent, then make sure you invest the money saved by renting. If you just spend the savings, then it's pointless. You're saving nothing for retirement. You have piece of mind and more in control of living expenses as you're subject to rate increases or being kicked out by your landlord for whatever reason.
There is no way a banker (or anyone in a similar industry) making 200k is buying an apartment in the city large enough for a family.
They're renting, they have no kids, they're not married, or they have 1 kid. Go around Battery Park City and you'll see.
Quote:
Originally Posted by newmommyq
"Out East" aka the Hamptons are just one of the burbs where people are buying their weekend homes. Connecticut and upstate NY are also common. Many people don't like the scene out East and there are other options.
Those are not suburbs of NYC and are not suitable as bedroom communities for a commuter.
i don't know much about pros/cons of putting 20% down vs. like 5% down. but for me, if i cannot put 20% down then i'm not doing it.
but we each take home about $3600/month... so thats $7200 total
so... 7200 minus 1000 property taxes minus 1500-1900 mortgage minus 500 for utilities... that's $3800 left... then there's other bills like cable, car payments, etc.
whereas right now we rent and its $950 each. so sometimes i feel like we should just keep renting.
It is very easy to get caught up in the "let's keep saving" ideal but at some point you need to start paying attention to the market. For us, in 1997 I got the sense the market was about to start creeping up and another year of savings wasn't going to bring us a better house, it would just be a down payment on the same house, and we'd be spending more money for it.
Pay attention to the market, and to interest rates. You are better off buying while money is cheap. You have savings for 20% down and a nice cushion.
And honestly "I can get a lot more house elsewhere" may be true, but unless you are truly thinking of making that leap, it's not worth making yourself crazy over it. Unless you really think you might move in the next few years, the time to buy is now.
1900 is pretty good for rent. If your goal is to save as much money as possible, then you go for the cheapest living option. I dont know the size of your rental, but there are things obviously in home ownership that are outside your calculation.
1. 1500-1900 Mortgage of which some 1500 in the first year (and then decrease slowly over 30 yrs) will be deductible as mortgage interest
2. 12k will be deductible as property taxes
3. Dont forget maintenance -- You need to budget for repairs, so lets say 300 per month
4. Home owners insurance -- maybe $150 per month
5. Landscaping (Do it yourself or hire someone)? If hiring, maybe 130 per month
6. Also remember, of the 1500-1900 you are paying, some of that will be principal, so it is indeed something that you are saving as you are paying down your loan.
7. Homes on average increase in value
I think it is hard to compare the two unless you are comparing the exact same place as a rental and a purchase, but if you compare your entire cost of home ownership, it IS definitely more expensive, but it is your own.
yeah, i definitely see your point. and i agree. but i guess in relation to the OP - i was saying that my boyfriend and i both make around 80k, and even the math for us is intimidating (as shown above in your 7 points)... doable, yes, but still intimidating.... whereas i see people owning houses with much less and i wonder how it's possible.. i just wonder - are they living paycheck to paycheck? like the couple i know who lives in bethpage and the wife stays home, and they have 3 kids, and the father is a counselor at a school. i don't know, it just does not compute for me.
So many variables to try and decipher how folks do it. I know some that got 125k as a down payment for a wedding gift. Others bought back when market was alot cheaper. Others have a lot of cc debt.
Keep in mind anyone working with the schools more than likely dont have to put their own money into a 401k plan like most people do. That alone can be 800-1000 a month saved.
yeah, i definitely see your point. and i agree. but i guess in relation to the OP - i was saying that my boyfriend and i both make around 80k, and even the math for us is intimidating (as shown above in your 7 points)... doable, yes, but still intimidating.... whereas i see people owning houses with much less and i wonder how it's possible.. i just wonder - are they living paycheck to paycheck? like the couple i know who lives in bethpage and the wife stays home, and they have 3 kids, and the father is a counselor at a school. i don't know, it just does not compute for me.
yeah, i definitely see your point. and i agree. but i guess in relation to the OP - i was saying that my boyfriend and i both make around 80k, and even the math for us is intimidating (as shown above in your 7 points)... doable, yes, but still intimidating.... whereas i see people owning houses with much less and i wonder how it's possible.. i just wonder - are they living paycheck to paycheck? like the couple i know who lives in bethpage and the wife stays home, and they have 3 kids, and the father is a counselor at a school. i don't know, it just does not compute for me.
People have a different tolerance for debt / savings. Simple as that.
Is it possible for someone to buy a $400k house on a $90k salary and $5% down? Yes. They may just barely get approved for that. Will they have savings for vacations, dinners, nice cars, retirement? Probably not. But, they are physically in the house nonetheless, and live there.
Probably by taking home over 100K (AFTER TAXES) by way of household. Of course some folks make much more than that here on Long Island. And some make less than that.
People have a different tolerance for debt / savings. Simple as that.
Is it possible for someone to buy a $400k house on a $90k salary and $5% down? Yes. They may just barely get approved for that. Will they have savings for vacations, dinners, nice cars, retirement? Probably not. But, they are physically in the house nonetheless, and live there.
The x factor is what one puts down as down payment and debts owed. The mortgage amount and criteria does not fluctuate much, it's assets and liabilities.cant justifty by what one does for a living and how much is earned, because you can make a million a year and spend $2 million a year...which does the banks no good.
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