looking for input

[lamalama567]

Just looking for some input from others on my situation and make sure I am headed down the right path. I am a little inexperienced at 27 so looking to see what some people with experience would do.

W-2 from my Job- $60k last year, just received raise bumping up to $76k. After tax take home has been about $4,360. I have been with this employer for 8 years.
Minimum Withdrawal from an Inherited IRA - $6k / year
Credit score - 775

Checking / savings - $112k
IRA with work - $27k (contribute 3% which is the max they match)
Inherited IRA (blue chips, dividend etfs, corp bonds) - $332k (has been earning about $30k/year)
4 land lots paid off (estimated valued $50k)
no credit card debt
no student loans
car payment $319/month, loan balance $12k. Car worth $15k.

Basically my question is about my housing situation. I am looking to sell my small 2/2.5 condo and buy a single family home that I can grow into without having to purchase something larger in 5 years. Looking to have my significant other move in and eventually start a family.

Current mortgage balance $69k, appraised at $95k.
Monthly payment - $805 / month including tax, hoa, everything.

Looking to sell my current condo and purchase a house for roughly $290-300k putting 20% down.
With interest rates low, I feel this is the time to strike.

I was pre qualified up to $350k with putting 20% down. Just wanted to see if $290-300k was too high of a price range for me or if I should be looking at something less expensive?

[lorraineb]

You look like you have your finances is good order. Congrats on that. Personally, I think you are going about it the wrong way (I think most people do) where you should be looking for houses that meet your needs first. If you get approved for $350k, you are likely to buy a house in that range (because they will always look better than the $250k houses when compared side by side). The key is really knowing what you need in the house and maybe you can find something for much less. Maybe not, but it seems like a better way to approach it to me.

[riverwed070707]

Just looking for some input from others on my situation and make sure I am headed down the right path. I am a little inexperienced at 27 so looking to see what some people with experience would do.

W-2 from my Job- $60k last year, just received raise bumping up to $76k. After tax take home has been about $4,360. I have been with this employer for 8 years.
Minimum Withdrawal from an Inherited IRA - $6k / year
Credit score - 775

Checking / savings - $112k
IRA with work - $27k (contribute 3% which is the max they match)
Inherited IRA (blue chips, dividend etfs, corp bonds) - $332k (has been earning about $30k/year)
4 land lots paid off (estimated valued $50k)
no credit card debt
no student loans
car payment $319/month, loan balance $12k. Car worth $15k.

Basically my question is about my housing situation. I am looking to sell my small 2/2.5 condo and buy a single family home that I can grow into without having to purchase something larger in 5 years. Looking to have my significant other move in and eventually start a family.

Current mortgage balance $69k, appraised at $95k.
Monthly payment - $805 / month including tax, hoa, everything.

Looking to sell my current condo and purchase a house for roughly $290-300k putting 20% down.
With interest rates low, I feel this is the time to strike.

I was pre qualified up to $350k with putting 20% down. Just wanted to see if $290-300k was too high of a price range for me or if I should be looking at something less expensive?

I definitely would not purchase something that expensive. IMO you should be looking at taking out a mortgage of no more than $200k, which means a house under $240k.

Given your unique situation with the inheritance, I won't prod you about why you're contributing so little to retirement but generally speaking, you should really boost that up to 15%, excluding company match.

[riverwed070707]

You look like you have your finances is good order. Congrats on that. Personally, I think you are going about it the wrong way (I think most people do) where you should be looking for houses that meet your needs first. If you get approved for $350k, you are likely to buy a house in that range (because they will always look better than the $250k houses when compared side by side). The key is really knowing what you need in the house and maybe you can find something for much less. Maybe not, but it seems like a better way to approach it to me.

Totally agree. If you say you aren't going to spend more than $240k and so you start looking at houses that start at $240k, you will no doubt find something you like but who is to say if you started looking at houses at $160k you couldn't also find something you like and then you've saved thousands of dollars and could potentially have a paid off home in a matter of years. Sit down and list your needs first, then your wants and start looking for houses that meet your requirements. Its not about how much you *can* spend.

[lamalama567]

Totally agree. If you say you aren't going to spend more than $240k and so you start looking at houses that start at $240k, you will no doubt find something you like but who is to say if you started looking at houses at $160k you couldn't also find something you like and then you've saved thousands of dollars and could potentially have a paid off home in a matter of years. Sit down and list your needs first, then your wants and start looking for houses that meet your requirements. Its not about how much you *can* spend.

When I first started looking, I was looking at home for $150-200k... Being in South Florida, I could find nothing but a project home that needed a lot of work. I was not thrown off by a home that needed work because I know any house will need work. My only issue is finding a home in a nice community that will be safe and a good place to raise a family... Unfortunately, to find a home in a nice, safe, family oriented community has a low end price range of $250-$290k. The difference being home at $250k needing more work from the get-go than the homes at $290k.

[MonkeyMama]

I will disagree with the others. Being in a very expensive market and dowsizing to a "medium" market around 2001 it was hard to decide on what we could afford. We put our cut off at $300k, in the end. We were both working, but wanted to easily afford on single income of $50k. Might sound like a lot, but were used to stretching much further just to pay our rent.

We ended up buying our "forever" house at around age 25, for $300k. Why? Because we didn't want to move later. Because we easily could with our lower-cost move. We also started in a condo, and I think that buys perspective. (Shows you are willing to live in a smaller space, so have probably thought through more than average).

Given your income, crazy low interest rates, and your assets, I think you will be just fine. This does not even factor income of SO. What's the point of such a nice inheritance if you can't utilize it to live where you want to live? IT seems to me you are being quite prudent given the circumstances. You could probably make do with less, but the point is you don't really have a *need* to. We didn't do things the hard way because we didn't have to. IF we had to, we would have. That's really the long and the short of it.

[siggy_freud]

I will disagree with the others. Being in a very expensive market and dowsizing to a "medium" market around 2001 it was hard to decide on what we could afford. We put our cut off at $300k, in the end. We were both working, but wanted to easily afford on single income of $50k. Might sound like a lot, but were used to stretching much further just to pay our rent.

We ended up buying our "forever" house at around age 25, for $300k. Why? Because we didn't want to move later. Because we easily could with our lower-cost move. We also started in a condo, and I think that buys perspective. (Shows you are willing to live in a smaller space, so have probably thought through more than average).

Given your income, crazy low interest rates, and your assets, I think you will be just fine. This does not even factor income of SO. What's the point of such a nice inheritance if you can't utilize it to live where you want to live? IT seems to me you are being quite prudent given the circumstances. You could probably make do with less, but the point is you don't really have a *need* to. We didn't do things the hard way because we didn't have to. IF we had to, we would have. That's really the long and the short of it.

I agree with this. I just finished house shopping in my area before electing to build, and was really disappointed to see what there was in terms of inventory. It's just not there now. I starting in the 180-200k range, and ended up building a great home for 250k that will give me the garage I want for my hobbies, and will give me and the GF plenty of room. It's more than we need, but we couldn't find that good middle ground of space but with the other options we wanted.

I think with your situation go for what you want within the budget you laid out. I think we sometimes forget WHY we're saving. Saving for the sake of saving provides you nothing in the end. Buy the house you want and know you can afford, add a few income-earning years to your life from happiness, and relax .

[lamalama567]

please delete this thread.

[bjl584]

please delete this thread.

Why do you want it deleted?