Author Topic: To buy or not to by...the age old question.  (Read 1001 times)

Adventureswept

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To buy or not to by...the age old question.
« on: February 20, 2017, 02:01:31 PM »
So now that I've read every post on the forum about house buying I wanted to gain even more insight from this wonderful community.

I'm pondering the idea of potentially buying a house in about a year and need insights on whether this would be a badass move or the wrong choice.

The Facts:
Husband and I are: 26 and 24 (We've been married 4 years)
Down Payment: We could do at least $50,000, probably more if we kicked things up this year.
We have 0 debt
We have 10,000 in an emergency fund, 10,000 in a wealth building stash at Vanguard, about 50,000 in retirement at this moment (none of this would be touched for the down payment or too buy the house. We also wouldn't stop funding these funds in order to buy a house).
Income: 65k, but ever rising!

We currently pay: $1065 in rent, but that number increases about $60 ever year.

With the jobs we have and our location (beautiful and sunny Orlando, Florida) we could make at least a 5 year commitment to a house with a good chance of staying longer.

The Math:
We would be paying: 63,900 in rent if it never increased, we never moved apartment complex's and our family never wore us down about getting a second bedroom (They are VERY upset we live in Orlando, Florida and don't have a room to spare).
Currently we save: 300 per paycheck (bi-weekly) for a house so that's another $39,000 we can throw at the house
With the $50,000 down payment, $63,900 in rent savings, and using the money we currently pool to save for a house we would have a $150,000 house paid off by the time we were 30.

Seems like the math makes this an option we should consider but we are very wary of buying a house and getting ourselves into the too much house/money sucking situation a lot of people find themselves in. Any thoughts/experiences are much appreciated.

swashbucklinstache

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Re: To buy or not to by...the age old question.
« Reply #1 on: February 20, 2017, 05:46:08 PM »
The first place to start on the numbers is the NYT rent vs. buy calculator. Take that for a whirl if you haven't already! But realistically if the numbers are close, at your age the biggest "downside" to buying is lack of flexibility to move to find better opportunities. At your income, assuming your income is growing as you're early in your career, looking at $150,000 house you've not really got a whole lot to lose in that department (as far as predictable losses) if you're looking at a 5 year commitment.

Now if Florida is going to be underwater in 10 years, or your future flood insurance might be priced as if it were, might be a different story...

waltworks

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Re: To buy or not to by...the age old question.
« Reply #2 on: February 20, 2017, 07:17:01 PM »
NYT calculator (using default numbers and $150k purchase price/5 years) says you are way better off buying a place.

That's not the end of the story, but it sounds like you guys are ready and there are some fringe benefits (unless you don't *want* the family staying with you!)

I'd say do it.

-W

rothwem

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Re: To buy or not to by...the age old question.
« Reply #3 on: February 21, 2017, 09:17:11 AM »
(They are VERY upset we live in Orlando, Florida and don't have a room to spare).

Ha, sounds like a perfect reason NOT to buy a house!