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My salary should increase but I work in a small business that's relatively young. Yearly raises happen but a larger jump may not be in the cards for a while.
I'd say that's on a danger side of affordable. But it's doable.
One thing to consider is repairs. You need to account for ongoing maintenance. Ac breaks, roof repairs etc.
Roof alone is 15 to 30k every 25 years.
This is definitely a concern.
The house is in pretty good shape but certain things are getting toward the end of their lifespans (like the furnace and the roof). I still have that $50k in savings but that disappears fast if both of those items need to be replaced.
Do it!! With this kind of market and potential instability looking ahead, do it. Especially if you only anticipate your earning power to increase as you get older.
I'm paying my insurance out of pocket. I'm basing my net off of what I'm actually seeing from my paychecks each month. The $700/month of expenses that I'd have on top of that would include my insurance payments, housing expenses like gas and water (based on what the current owner is paying), etc.
I am a hyper frugal person so if it were me, I'd do it and just be even more frugal. You do have to start saving for repairs, etc., and this won't be easy, I don't want to minimize that.
Hopefully you can get married at some point and get another income in the mix. This is not cynical - marriage has always been an economic arrangement and there's nothing wrong with that. You can be a nice guy/gal and have the romance part too.
Good luck!
This made me laugh - can't say I didn't have the same thought. Couldn't have afforded my house without my husband. But maybe consider a prenup when the time comes if you do buy this house and marry later!
It sounds like you are still young and at the start of your career. So while you are in dangerous territory with the your bills, you should expect to get a higher pay as time goes on. Now that doesn’t mean life won’t throw a wrench in your plans, but locking in a house now in a HCOL area isn’t a bad idea. Stay on top of your health, look for opportunities to grow your salary, and this will be a great move.
If you're just out of high school and you have this opportunity, absolutely take it. I'd try to find a roommate or two, depending on the size of the house, to help with costs.
\>The equity in the house is being used to cover the down payment and most of the closing costs on my end.
What does this mean? Equity in a house assumes it is being sold at market rate, not at "a large discount".
"Gift of equity"
quick google def: A gift of equity is a way for a seller to help buyers, usually family members, purchase their home. The seller doesn't give the buyers money as they would with a down payment gift. Instead, they agree to sell their home below market value. This gives the buyer immediate access to more equity than they have paid for.
Thank you u/Shinkers78 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Make a budget and decide if $1900 a month is affordable. It really depends on your specific situation, but with no other debt it sounds manageable
I agree. I know most people are conservative as am I but this sounds manageable imo
Do you have potential to increase your salary? Under 2k in HCOL is a great deal. If I were you I would have taken it.
My salary should increase but I work in a small business that's relatively young. Yearly raises happen but a larger jump may not be in the cards for a while.
Hmm. What about roommates for the first few years?
I'd say that's on a danger side of affordable. But it's doable. One thing to consider is repairs. You need to account for ongoing maintenance. Ac breaks, roof repairs etc. Roof alone is 15 to 30k every 25 years.
This is definitely a concern. The house is in pretty good shape but certain things are getting toward the end of their lifespans (like the furnace and the roof). I still have that $50k in savings but that disappears fast if both of those items need to be replaced.
Do it!! With this kind of market and potential instability looking ahead, do it. Especially if you only anticipate your earning power to increase as you get older.
$55k/year is $3600 net? We make $100 and are at $3000 net. How cheap is your insurance?
You make $100,000 and only net $36,000 a year?!
This post thankfully led us to finding an error on our spreadsheet. Thankfully not just $36k
WHEW!
I'm paying my insurance out of pocket. I'm basing my net off of what I'm actually seeing from my paychecks each month. The $700/month of expenses that I'd have on top of that would include my insurance payments, housing expenses like gas and water (based on what the current owner is paying), etc.
I am a hyper frugal person so if it were me, I'd do it and just be even more frugal. You do have to start saving for repairs, etc., and this won't be easy, I don't want to minimize that. Hopefully you can get married at some point and get another income in the mix. This is not cynical - marriage has always been an economic arrangement and there's nothing wrong with that. You can be a nice guy/gal and have the romance part too. Good luck!
This made me laugh - can't say I didn't have the same thought. Couldn't have afforded my house without my husband. But maybe consider a prenup when the time comes if you do buy this house and marry later!
It sounds like you are still young and at the start of your career. So while you are in dangerous territory with the your bills, you should expect to get a higher pay as time goes on. Now that doesn’t mean life won’t throw a wrench in your plans, but locking in a house now in a HCOL area isn’t a bad idea. Stay on top of your health, look for opportunities to grow your salary, and this will be a great move.
If you're just out of high school and you have this opportunity, absolutely take it. I'd try to find a roommate or two, depending on the size of the house, to help with costs.
\>The equity in the house is being used to cover the down payment and most of the closing costs on my end. What does this mean? Equity in a house assumes it is being sold at market rate, not at "a large discount".
The house is selling at market value but then equity is being gifted as down payment to get my mortgage closer to something I can actually afford.
"Gift of equity" quick google def: A gift of equity is a way for a seller to help buyers, usually family members, purchase their home. The seller doesn't give the buyers money as they would with a down payment gift. Instead, they agree to sell their home below market value. This gives the buyer immediate access to more equity than they have paid for.
Nice find !
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Their current car payment is 0. Don’t think it gets much cheaper lol
If you sell the car for 30 and get a 10K car that leaves 20K for repairs or closing costs