trinity32244

January 16, 2008

Posted by trinity32244

At 24 years old my wife and I are stretching ourselves to get into a really good deal on a house. Only $250 left after all bills. Good decision or not

We are stretching ourselves to get into this house that has almost $95,000 in equity but we are worried because we are stretching ourselves so thin to get into it. My logic is to suffer through a year or two and reap the benefits from there on after but is $250 in extras at the end of the month to risky? I have options for side jobs to get us out of a jam if need be on occasion but worried about the marital strain being so tight on money for 2 years.

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Jr2inla

January 17, 2008

Posted by Jr2inla

5 stars ( 1 rating )

That seems extremely tight - I purchased a new home in Nov 06. Month 2 we had a plumbing blowout that cost $3,800 that could not be pinned on the prior owner for various reasons. A good section of the front yard needed to be excavated to repair - heavy equipment etc...not something to be handled on our own or by friends. We were prepared for this type of situation - but that's what you take on when you decide to become a homeowner. If we only had a few hundred left over after bills, we could not have repaired and it would have been a disaster.

Second - if you're that tight on income to expenses, and you have a variable/adjustable rate in your mortgage(s), you could be in for a steep climb in mortgage payments if interest rates fluctuate - if you're unable to pay, default on the loan, foreforeclosure and/or bankruptcy.

Comments

  1. trinity32244: The house is in our dream location and is borderline our dream house. I am very conservative by nature. I know its tight but I also think it is do-able. I am at a point where it is a "no guts no glory" mentality but am worried still. I do average a bare minimum!!! of one side job every 1.5 months that will pay from 500-1500 dollars but is not budgeted in and sometime up to 3 side jobs in a month. I know it is not a great decision but is it to the point where I am crazy or just being risky.Thanks
  2. trinity32244: Also I have been in construction my whole and can build a house from the ground up so if in a jam really only need raw materials and I can fix it. Just giving you a little more info to better asses the situation. I know its risky but really want to know if it has crossed the line into being a crazy situation to put myself and family in or just a risky situation?

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itsjoe67

March 07, 2008

Posted by itsjoe67

4 stars ( 1 rating )

Too many factors - especially with the housing market the way it is. However, quick answer... Use your options now and bring in extra money now. Before you need to due to a "Jam" Your marriage will benefit not only from less financial stress, but you will have more options when it comes to spending quality time together.

Comments

  1. bahellman: The housing market has certainly changed in the last several months.

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inthemoney

March 11, 2008

Posted by inthemoney

4 stars ( 1 rating )

It's great to find a good deal.

To make these kinds of decisions, you must put in considerations several things:

1. Discuss with one another and make absolutely sure that both of you agree to make things work if this doesn't pan out
2. the unexpected life events that may creep up such as, loss of job, disability, death, a disaster, etc...
3. think about your risk tolerance

Have you work out with a planner on looking at your assets, liabilities, cash flow, NET income?

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