HOME  |  MESSAGE BOARD  |  LINKS  |  CONTACT


           Post New Message
Message  
Author  
Date  
Buying a house - Affordability    RD   11/06/2018 07:41 PM  

My salary is 120 k and my wife is not working. We are looking at buying a house in the 400k range. Is this something we can afford? How much do you think will be overall cost of house ownership? We are now happy in a 2 Bed Apartment paying a $1500 rental. I'm scared if I'll lose peace of mind if I buy a house. Suggestions and recommendations are welcome.

Reply

Re: Buying a house - Affordability    Helper    11/06/2018 08:17 PM  

Hi I think your earning good. I would suggest up to 300k is good enough dont spend too much. Make sure you have a down payment cash available.

Reply

Re: Buying a house - Affordability    AB   11/06/2018 08:18 PM  

How much you are trying to do down payment?
There is close to 5% closing cost and misc expense.
If you put 50k additional your loan will be will be 350k. EMI could be be around $2700 including taxes.
value wise this is not bad as around 900$ will go to principal and will save tax and things like that. Overall value wise your expenditure might end up 1600$ which is close to what you pay rent.

Value and cost is different !!
You may need to think whether you can meet payment of 2700 per month for house only! You may also have some maintenance cost but that depends!

120k salary is boarder line. Depends how much you get in hand and what money you have right now!

Hope this helps!


Reply

Re: Re: Buying a house - Affordability    desi   11/07/2018 04:24 AM  

You did not mention your city...

Reply

Re: Re: Buying a house - Affordability    Thought   11/07/2018 07:18 PM  

(at) AB you are right but what about maintenance cost, insurance, ownership costs for own house? It's not definitely worthy for the salary of 120k... don't loose peace of mind

Reply

Re: Re: Re: Buying a house - Affordability    AB   11/07/2018 10:38 PM  

Maintenance cost is bit more than rented house especially for initial years ! However what I feel is rented house has maintenance too, every 11 months when we change home/flat owner charge tenant + renewal cost + increase in rent and things like that. Long run I do not think much difference with either !

I do agree that 120k is really boarder line for 400k house but it depends how much down payment one can afford and what money comes in hand!

Having said all these, Living in a rented house and own house is way different and not comparable!


Reply



www.ctdesi.com Copyright 2005-2023 All Rights reserved. This site has details and links to advertisements, events, links, messages posted by users. The users need to verify the correctness of such information and ctdesi.com do not guarantee the correctness of the content. The risk of using this content remains with the user.
Please read our Privacy Policy Send any comments to: Contact