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Just went under contract on a house/property that we love. Its well within our budget and actually a bit below our already fairly conservative goal. One of the more modest homes in a VERY ritzy neighborhood. We'll be paying ~23% of net for PITI+HOA initially since we are only putting 10% down (debated waiting to save 20%, but I think its the better financial move to lock in now rather than risk future rate hikes - we have the option to recast if we decide we want to lower our monthly payments down the line). We put a big chunk into retirement already (15% with a 10% match) so that 23% is even better than it looks. Even with a VERY liberal budget accounting for increased costs of home ownership, we're not even in the ballpark of needing to spend what we earn. So financially, I think we did pretty well.
The part that scares me - we're in an area that is expanding rapidly and prices are soaring. Except we're not buying in that area. We're the sort to prioritize space and tranquility. We're getting a mid-large plot of land about 25 minutes outside downtown (we're in a small city, so 25 minutes is considered "really far"). We love the house and the property. My concern is that from a "location, location, location" standpoint - this was a bad move. IF we decided to move down the line - we may be missing the opportunity to get good appreciation. No kids right now, but if we did have 1-2, the school district is mediocre for elementary/middle school and downright terrible for high school. Privates are an option, but obviously a big added expense. We could get sick of the commute. Our jobs are quite stable/secure (at least to the extent any job is these days), but obviously anything can happen.
Are these just normal "is this the right move" jitters before making such a major purchase or are we doing something really stupid?
Sounds like normal jitters to me. As long as you plan on staying there for a while then it's fine and I wouldn't worry about whether or not it's a good "investment". If you're thinking you might end up moving again in the next few years then it's more worth considering.
I think what you are experiencing is normal. Many home buyers question their action when they go under contract. Sounds like you've done the math and the numbers are where you want, and expect, for them to be.. that's good!
You don't have kids yet and even if you started down that path *right* now you will have 5-6 years (starting school year of 2023 if they are born after Sept 1 in many districts) before needing to make a decision about schools.
It's hard to predict what the market will be like five years out. Five years ago we were at the bottom of our housing market.. it was a great time to buy (and we did!).
What you've described doesn't really sound like a bad investment to me. You've simply decided on a house that will provide returns in satisfaction in your home and surroundings.
Buying a house that you don't like in a location that isn't a priority and stretching your finances to the limit to do so... that sounds like a bad investment!
No.
Not going to be miserably tied to a product that isn't financially sound. Not only it cost money, money.. Time too is money.
I think any purchase decision must be compared with alternatives, e.g. renting as well as other purchase options. Renting essentially ties you to a product (rental housing) that tends to just go up and up faster than a mortgage payment would.
I didn't read the bad school part. I wouldn't do it.
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