Should I buy this house?
I'm considering buying a house closer to where I work. It's 125,000. After everything is paid monthly i'll have about $200 - $400 dollars left over. I'll have to tighten the belt a lot but I feel I can make this work. I have no debt (paid off my student loan a few months ago), and only have a modest debt on my Credit Cards that probably totals about $150 monthly as reoccurring subscriptions for cell phone use and sling TV and car insurance.
Also, after hurricane Florence, I've been living with my parents and it is time to move out again.
So here's my question, should I guy this house with so little left over or wait for something a little cheaper?
so after all my monthly bills are paid, i'll have about $400 left over. Currently I have about $7,000 in savings, and I'll have to buy a fridge, washer and dryer.
I already qualified.
but like someone already pointed out, I'll only have about $400 dollars left over.
- BLv 75 months ago
no, you need to pay off your credit card debt and stop using that as an expensive way to finance your living. only then should you consider buying a place.
- Raymond L.Lv 45 months ago
Two things I have noticed here,
1. $125,000 for a house is cheap, I live in western Oregon
2. it doesn't sound like you have much of a down payment to keep your payments down.
If you can put 20% down you get the best rates plus avoid mortgage insurance.
- Const. KingLv 75 months ago
Go for it if you like the house. You could always get a part time job for a while if things were tough. If you wait that house might be $250,000 next year. There used to be a saying he who hesitates loses.
- 5 months ago
No try should not
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- SlumlordLv 75 months ago
Cutting it really tight but if you think you can do it then go ahead. Also the fridge, washer and dryer typiucally come with the house. If they aren't there then you can ask the buyer to give you a credit since this is unusual.
- linkus86Lv 75 months ago
Regardless of how much money you have left over each month, you need some savings to serve as a safety net to cover the curve balls life throws at you that cost money that you can't plan for on a monthly basis. Thus saving more now is in your best interest.
- ron hLv 75 months ago
I dunno anything about your RE market, but in most places, you can't find a house for less than the one you're looking at. I think you need a better job AND need to pay off the CC debt. It's GREAT that your student debt is done.
- JudyLv 75 months ago
You would probably not even be approved for a mortgage if yoou'd be cutting it that close.
- EvaLv 75 months ago
Do you have enough for utilities, taxes, insurance, and repairs? Do you have enough saved to live on for at least 6 months if you were to lose your job? Do you have enough money saved for a down payment? If the answer to any of these is no, you're not ready to buy a house.
- Anonymous5 months ago
With only $400/month disposable income, you can't afford to maintain this house. I wouldn't do it unless you expect significant increase in your income or plan to take in a roommate.
You're already balancing on thin ice with less than $5k/year in disposable income. A root canal is $1500. A car repair could be $1000. What if you are asked to be in someone's wedding or have to travel for a funeral?
The first couple years of home ownership is nothing but buying stuff. You'll need a lawn mower. And a ladder. And tools. And you'll want table and chairs for the backyard. And doormats. And garbage/recycling cans. And a BBQ. And after the first couple years when you finally think you're done buying stuff, then the repairs begin. The sewer has tree roots in it or the snow rips the gutters off the house or the deck boards are rotting or your skylight starts leaking or your AC goes kaput.
I just don't see how you can afford to live on $400/month disposable income. And if you're not already contributing significantly to a retirement plan, that's where the $400 should be going.
What will you do if you break your leg skiing or snowboarding and can't work for two months?