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Probably can be amortized over, say, 10 years. 30k amortized over 10 years is 250/month, which is pretty substantial. I don't know if I agree with the other expenses in that long list though - if you had time to read it, can you offer a critique?
I do think that a larger house will come with higher utilities especially if you are going from apartment to house. Add in the cost and time of maintenance and possible hoa and you could easily be looking at 400-800 more a month.
The problem with amortizing over 10 years is that lots of people move before the 10 year mark, a 5 year timeframe raises the monthly cost to 500.00, people ignore the transaction cost
I do think that a larger house will come with higher utilities especially if you are going from apartment to house. Add in the cost and time of maintenance and possible hoa and you could easily be looking at 400-800 more a month.
The problem with amortizing over 10 years is that lots of people move before the 10 year mark, a 5 year timeframe raises the monthly cost to 500.00, people ignore the transaction cost
Well, we know from the original post that HOA fee is 250 per month, so there's that.
The amortization period depends on how long the OP plans to stay in the same property. I think the average duration is around 7 years, and since the OP is staying at the same place to raise the kid for the long run, I assumed 10 years. Of course, only the OP knows how long he plans to stay.
ncole1's list covers way more than just these expenses though. Was wondering if you'd consider the other expenses reasonable.
The problem with amortizing over 10 years is that lots of people move before the 10 year mark, a 5 year timeframe raises the monthly cost to 500.00, people ignore the transaction cost
People ignore a lot of things. I linked to this calculator earlier. It takes into account all the relevant factors and it is very easy to do "what if?". One thing it does seem to be missing though, is the time the house may be vacant before you are able to sell it.
I am a single father. Should I buy a 3 bed room townhouse for $500k? HOA is $250 a month. I have zero debt, no alimony or child support payment and my 3 year old daughter goes to daycare for $800 a month until kindergarten. My income is $115k, with about $6k monthly take home after tax and 401k contribution. I have $200k cash and plan to put down a 25% for down payment. Property tax is 1.1%. Am I stretching?
I live in OC, CA and home price is crazy here. Of the $6k take home, $2.5k goes to housing with tax, Hoa, and mortgage payment.
I would go for it, if that is what you want to do.
Well, by this logic, no one ever shows anything - there are always assumptions of some sort - even in mathematics there are axioms.
Care to explain what you think is more reasonable and why?
I think no one can predict the future and that applies to renters as well. Do you automatically include an extra 250 in your calculations for the two months rent that you'd have to pay if you broke a least and say that your real rent is $1750 on a $1500 monthly rental? What about including another $3000 every year for the potential cost of a move if your landlord decides not to renew your lease? So look, now your $1500 per month rental is effectively $2000 per month if you are going to look at things that way.
Yes, there are costs associated with ownership and there are risks of unexpected expenses at times. But that's the case with rentals as well.
I think no one can predict the future and that applies to renters as well. Do you automatically include an extra 250 in your calculations for the two months rent that you'd have to pay if you broke a least and say that your real rent is $1750 on a $1500 monthly rental? What about including another $3000 every year for the potential cost of a move if your landlord decides not to renew your lease? So look, now your $1500 per month rental is effectively $2000 per month if you are going to look at things that way.
Yes, there are costs associated with ownership and there are risks of unexpected expenses at times. But that's the case with rentals as well.
Except it's very unlikely that you will end up moving every year, whereas by contrast once the homeowner is stuck in an expensive commute the expenses continue piling up.
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