American Rage
11-21-2010, 03:36 PM
I will be purchasing my first home soon.
Originally, I'd plan to live where I'm at a little longer, and save a bunch of money. I figured a year from now I'd have a nice chunk of change to put down on a home. Unfortunately, I suspect that the mortgage rates will soon rise. And that fact tells me it might be cheaper to move on a home now.
The problem is that I can't decide how much home to buy. I can purchase a small to medium brick home in my area for between 75-100K. Or I can wait for the right home to come along in the 90-110K range, 6-10 miles away, and live on an acre where I could grow my own food and have my own water, if necessary. Note I would be 10-16 miles away from work in a vehicle that averages 16 mpg in the city.
I make $36k a year, but I only take home $1950 after all taxes, insurance payments and retirement funds are met, and the college loans are paid for. I have no car payment and no credit card debt. I'm single and have no child support payments. I'm also very frugal.
Do you think I can swing a payment of $800-900 for home, insurance, tax, and mortgage insurance premium? (Actually, if I buy a home for 80% or less of its actual value, I won't have to pay an mip saving me around a $100 a month.)
How about when inflation hits?
Naturally, my fuel costs will rise, and I'll have to have a riding mower as well, plus the additional house payments and such. But I'd at least own land enough for a garden and a chicken coop if things get that bad.
Still, it seems like a lot of money to me. And I keep telling myself that I'm investing in a home instead of a bank. On the other hand, I could get a smaller city home, without the land, and use the extra cash to stockpile cans forever.
What say you? I need some honest advice.
Cheaper home means more cash for cans vs. more expensive home with a water well, garden and coop potential ?
I'm leaning toward the garden and coop knowing that regardless of which home I purchase, I lose it if I lose my job. But first, I need to convince myself that I can in fact pay for the larger home when utilities "skyrocket." Even then, in the country home a woodburning stove is entirely feasible once the money is saved.
Rage
Originally, I'd plan to live where I'm at a little longer, and save a bunch of money. I figured a year from now I'd have a nice chunk of change to put down on a home. Unfortunately, I suspect that the mortgage rates will soon rise. And that fact tells me it might be cheaper to move on a home now.
The problem is that I can't decide how much home to buy. I can purchase a small to medium brick home in my area for between 75-100K. Or I can wait for the right home to come along in the 90-110K range, 6-10 miles away, and live on an acre where I could grow my own food and have my own water, if necessary. Note I would be 10-16 miles away from work in a vehicle that averages 16 mpg in the city.
I make $36k a year, but I only take home $1950 after all taxes, insurance payments and retirement funds are met, and the college loans are paid for. I have no car payment and no credit card debt. I'm single and have no child support payments. I'm also very frugal.
Do you think I can swing a payment of $800-900 for home, insurance, tax, and mortgage insurance premium? (Actually, if I buy a home for 80% or less of its actual value, I won't have to pay an mip saving me around a $100 a month.)
How about when inflation hits?
Naturally, my fuel costs will rise, and I'll have to have a riding mower as well, plus the additional house payments and such. But I'd at least own land enough for a garden and a chicken coop if things get that bad.
Still, it seems like a lot of money to me. And I keep telling myself that I'm investing in a home instead of a bank. On the other hand, I could get a smaller city home, without the land, and use the extra cash to stockpile cans forever.
What say you? I need some honest advice.
Cheaper home means more cash for cans vs. more expensive home with a water well, garden and coop potential ?
I'm leaning toward the garden and coop knowing that regardless of which home I purchase, I lose it if I lose my job. But first, I need to convince myself that I can in fact pay for the larger home when utilities "skyrocket." Even then, in the country home a woodburning stove is entirely feasible once the money is saved.
Rage