Breaking down and buy a house, Must appologize

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msparks

msparks

Joined
Jun 11, 2002
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3,354
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Clarksville, Tennessee
Hi boys and girls,

Just wanted to let you know I'm buying my first "solo" home. I've bought 3 in the past but that was a married man with dual incomes. This time it's just me.

Anyhow on the apology, I had said in the past that you should buy a house with a 15 year fixed with no more than 1/4th your take home pay. This is if you subscribe to the Dave Ramsey method of debt and house buying.

Well I'm not going to be doing that. I'm buying a $123000 house that will be with a 30 year fixed mortgage. Heck the payment will be about 32% of my gross pay. But I feel that this calculated risk will work out in my favor so I can pay it off in 15 years anyhow.

In the next 15 years my income will increase, in the next 15 years I will have more money to put towards the house. In the next 15 years I will continue to be debt free and will increase my net worth. So I can see this working.

If you have a comment on my madness please feel free.
 
I see no problem with a longer mortage. You can always make extra payments if you are able. Sounds like a plan to me.
smile.gif
 
Sometimers you've got to take a bigger stretch, suck it up and move your life onwards. I am not trying to be nosy, but don't you think that you may become a 'dual income man' again sometime in the future?

Not to compare, but I bought a $280k house solo with a 30 year mortgage. Right now, Im about as stretched out as I care to be. Ive reduced my retirement savings quite a bit (but still save more than enough to get full match), and don't have much discretionary income - but I'm 26, so Im not worried. Also, Ill be married in June and my wife will be working as a doctor of PT. We will then be able to more than aggessively pay off our house, and then the issues will be irelevant. Thus my questions about you being a dual income home again sometime. I doubt that youll have an issue regardless.

But, despite me being stretched, buying a house that was a bit much was the right move. I reduced my commute from 35 miles of roads hated to 8 miles that I love, and can easily go running or workout in the mornings, have nice parks nearby, etc. They say that saving is so important. OK, Ill but that, my parents always trained me to be VERY frugal. That is why I was able to buy a house... but saving bucks is only one part of the equation. Quality of life, IMO, is the other. I was miserable before, and am totally happy now. M
So, not about me, but I hear what youre saying. However, based upon everything that ive read on here, I can gather that you are a very discipined person with a good saving and payoff regimen. You even hint on it in your OP here. So, what is the problem? If you were happy and satisfied before, you obviously wouldnt have been looking to buy a house. You are obviously making steps in the right direction, and so long as you keep to a plan, keep moving in the right direction, and keep a good head on your shoulders, smart decisions (even if theyre against some 'advisor's' advice) geneally payoff twofold in the end all, even if not entirely in monetary means...

Good luck!

JMH
 
Quote:

but don't you think that you may become a 'dual income man' again sometime in the future?

Click to expand...

I think he is smarter than that.
Even though I am happily married...I can't envision ever taking the plunge a second time. I believe I have felt that way since my children were pretty much grown at the age of 45 (for me)
 
Where the heck are these under $500K homes I keep reading about? $123K wouldn't buy tiny condo in a 400 mile radius or add an outhouse on my current outhouse.

No need to apologize. You done good. What interest rate?
 
Around here $123,000 gets you alot; I mean a lot.

Good luck on that endeavour. FWIW, an ex girlfriend of mine had 75% of her money going to her mortgage and still supported a child. Completely doable.
 
Quote:

Quote:

but don't you think that you may become a 'dual income man' again sometime in the future?

Click to expand...

I think he is smarter than that.
Even though I am happily married...I can't envision ever taking the plunge a second time. I believe I have felt that way since my children were pretty much grown at the age of 45 (for me)

Click to expand...
I think he is smarter than that.
Even though I am happily married...I can't envision ever taking the plunge a second time. I believe I have felt that way since my children were pretty much grown at the age of 45 (for me)



Hey thanks for the complement. Really, buying this house is taking consideration that I have my daughter (14 years) and she will be gone in about 5 years. After that this house, all 1150 sq/ft will be all I need. If I need more, I can see myself buying something in a warmer climate for winters here in TN. (Lets say Puerto Rico) or something like that.

Anyhow I'm pretty confident that this will be my last credit purchase. That is the game plan.

The way that I see it in terms of paying off. 123000/15 is only $8200 per year. Maybe the first 3-5 years I'll have to put that amount or close, but after that I'll be able to put less since more of my priciple will be going towards the loan, so then I'll start putting a little towards retirement.

Speaking of that, what the heck is up with retirement, I really have no plans to ever retire. I'll keep earning money until the day that I die. I already figured out I don't have to do manual labor for it, so I'll keep on my course of building up business, increasing net worth and following my own path. Will see how it works out.
 
$125k doesn't even buy you dirt around here, literally the lots cost more then that. apartment rent here costs more then your house payment will be!

I don't think I could stand to rent anything ever again.
 
[quote After that this house, all 1150 sq/ft will be all I need.



Smaller and more heat/cooling efficient is the coming (actually present) paradigm. We have about 1500 sq ft. for the 2 of us. But we really only heat/cool about 700 sq. ft. And really we spend most of you time in 400 ft.addition that is maintained at very comfortable temps. Duting the winter we really only heat our bedroom very minimally at night. During summer we cool only the area of the house where we are.

To me an ideal house for us would be a super efficient house of less than 10000 sq. ft.
 
For all those complaining about home prices, Move.

I can't sell a less-than-10 year old 2400 sf log home in Northeast Alabama. It's priced at $160,000 and has been on the market 11 months.


The closest neighbor is 200 feet away, not 10, he will be the only one due to the terrain. Nobody will build around the house.
 
Quote:


Buying a house is one of the best financial decisions you can make for the long run.

Click to expand...

I think you might find a lot of financial gurus that disagree. This investment carries with it a long period of paying interest instead of earning it in a possibly better financial investment venue. Also it requires lots of fixed expenses such as insurance, taxes, constant repairs, utilities....on and on. And ultimately if you are successful you probably will die with this "investment"..to be used by your heirs.

I think its fine to own a home (if that's what you want) but again..it might not be the best investment in town.

This guy explains it pretty good:
can_eng_edition.jpg
 
Al, one needs a roof over their heads. If you are going to pay for it, you might as well buy it. It will cost a little more but at least you know that it is yours.

RE is a good investment when you buy during depressed times, such as now, and sell during the boom times like a couple of years ago. Then, again, the regions where 123k houses exist are not the places where you are going to see a lot of appreciation. The costs of maintaining the RE and the selling costs will negate any gains.

MSPARKS, don't worry about the mortgage term. Mortgage means 'loan till death' so whatever the term, you are OK
smile.gif
 
You've got to live somewhere, and who really wants to live in an apartment or share walls with someone else? From what I can tell, it's not like you bought a house that is excessive in any way. Doesn't sound like a bad move to me.
 
Quote:


For all those complaining about home prices, Move.

I can't sell a less-than-10 year old 2400 sf log home in Northeast Alabama


Click to expand...

For those complaining about not being able to sell a house, lower the price.
 
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