| Would it be wise to buy a house with my current budget? |
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Busyman
New Member
Cash: $ 1.55
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Joined: 06 Jul 2005
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| Would it be wise to buy a house with my current budget? |
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I am trying to make the decision to invest in a house with the $620 a month that I am spending on an apartment right now. Would it be a good idea or should I avoid the hassle by staying in a rental property? Will any hidden costs put me over my budget?
Personal Loans and Payday Loans
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Wed Jul 06, 2005 1:37 pm |
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xboxundone
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IT depends on where you live and what taxes you are subject to. I would say if you can get a home in an area you like for that amount then why would you want to keep renting...
Some things to take into account:
Mortgage will include your payment, your interest payment, you taxes and insurance... IF you don't have 20% to put down also PMI. If you can find something that will fit into 620 a month then go for it.
Do keep in mind with home you may have to buy fridge, washer, dryer, also you utility bills maybe higher especially if you get a home bigger than you apt. You also have yard upkeep costs whether you do it or someone else lawn has to be mowed etc....
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Wed Jul 06, 2005 3:59 pm |
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efflandt
Senior Member
Cash: $ 80.45
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Joined: 25 Apr 2005
Location: Elgin, IL USA
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You may want to read through this http://biz.yahoo.com/pfg/e10buyrent/
There are expenses besides the loan that can add up. I purchased a fairly modest home a few years ago for $157k (w/appliances) at slightly more than 20% down at a time when I had been paying $800/mo apt. rent (heat & water included).
In March I refinanced down to 20 yrs @ $869/mo.
Property tax and insurance $360/mo.
Gas at a fixed annual rate would be about $80/mo vs. actual cost/mo.
Electricity is a bit higher, water/sewer is about $15/mo.
Telephone/DSL is unchanged.
Will need complete tear off and shingle replacement within a few years, along with new gutters.
Some day we may have special tax assessment for curbs/sidewalks.
If you get a condo or townhome there will be association fees to take care of yardwork, maint., etc.
But some of your expenses will remain fixed (if you get a fixed rate loan) and you will build equity, vs. rising rent that you never recover. And owning a place can lower retirement costs and/or give you something to fall back on if you have not planned well enough.
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Wed Jul 06, 2005 6:37 pm |
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