Comments on: Reworking My Savings Goal And Thinking About Buying A House

By: Mortgage Monkey

Mortgage Monkey — Mon, 04 Aug 2008 14:46:10 +0000

I think that’s a great idea, and you’re right, if you can’t afford to get the $2000 away a month then at least you’ll know you can’t afford to spend that on a mortgage! To answer your other question – I do set goals – I don’t always reach them, but I do set them

By: Fen

Fen — Tue, 08 Jul 2008 20:56:35 +0000

I am definitely a goal-setter, and for quite some time now my goal is to have $1.2 million in retirement savings, not including my home.

Your goal sounds great. I saved for many years while living in my sister’s basement. I was able to put down about 45% on a $209,999 home (now valued at about $395K). I’m thankful i was able to put down that much becus it means less pressure on me (still single) to take high-paying jobs if i don’t like them. My principal is just $775 a month but i’ve been prepaying ever since I bought it 13 years ago am down to a $71k balance.

you can do it too!

By: Moneymonk

Moneymonk — Mon, 07 Jul 2008 18:07:29 +0000

It all depends on your income. If you have enough to sacrifice for 12 months

go for it!!

By: Sam

Sam — Mon, 07 Jul 2008 13:11:20 +0000

I think your plan is great, it is similar to Dave’s “Drive Free” plan. It is great that you are doing the research on housing prices, sub-divisions, etc. I would continue your research and keep track of sales, number of days on the market, listing vs. sales prices, etc. for houses or communities that you are interested in.

Even if you decide to stay in your current situation you will be no worse off and will have a bunch of money in the bank.

By: Amy

Amy — Mon, 07 Jul 2008 11:21:35 +0000

Is your housing currently paid for in full by your employer? If so, I can see how you were able to get out of debt. I think you did work hard at it, but you gotta admit if there is no housing payment to deal with- it is ALOT easier. I would save money for a house, but what is the rush? As others have mentioned keep in mind of all the “little” extras of owning a house i.e maintenance, rising taxes etc. Just don’t rush into it because you feel pressure to be a “homeowner”. Sounds like you have a good thing going and you do live in a house currently vs an apartment.
Nothing is wrong with the kids sharing a room-really. I wish I could pile away the money like you but we have a $1700.00 mtg pymt, one income(husband) I’m in school and a baby on the way. We live very frugal and get no help whatsoever from family or friends. I guess the grass is always greener. You got a good thing going just think it through.

By: ME

ME — Sun, 06 Jul 2008 12:49:07 +0000

Don’t forget that with a house you are responsible for the house maintenance, property taxes, insurance, pest control, and yard maintenance. Also, depending on the square footage, your electric and/or heating may be higher than the apartment that you are currently living in.

Just make sure that you can afford all of this. If your payments end up being less the the 2000.00 that you are saving, you can put the remainder towards the above mentioned responsibilities.

By: NCN

NCN — Sat, 05 Jul 2008 14:19:17 +0000

@Elaine.. I agree, we don’t ‘need’ a house w/ three bedrooms… but, it would be nice, so we are preparing, just in case that’s what we decide to do. We can stay here, or, if we find a house that we like and fits w/ in our budget, we can make a purchase. This is an ‘experiment’ to see what we could afford… I’d hardly call it a case of ‘affluenza’..

By: Elaine Peterson

Elaine Peterson — Sat, 05 Jul 2008 13:49:35 +0000

You are falling into the trap…. Just because you have three kids doesn’t mean they each need their own bedroom for goodness sakes! I personally think it’s foolish to give up your free house before you have to. You are catching a case of “affluenza”.

By: Curious Cat Investing Blog

Curious Cat Investing Blog — Thu, 03 Jul 2008 21:02:08 +0000

This is a great plan. It is what I suggest people do. You are even doing extra (if you pay rent). Anyway for people that do pay rent, if they are looking at buying I suggest figuring out a reasonable estimate of monthly payments. Then subtract their rent and save the rest (so $2,000 say – current rent of $1,200 = $800/mo.). Saving that proves you can afford the $2,000 rate. And in fact this is really above what you need (since you will get a tax break… But it is a good estimate to get started. And I suggest targeting 20% down too.

By: NCN

NCN — Thu, 03 Jul 2008 14:23:06 +0000

@mppaul3 – I actually have a very good FICO score…