Heya,
I am very new to the forum and maybe I am asking an age-old question that has been asked umpteen times.
This is going to be my first home and we are excited about it.
Events and Timeline:
- Bought a small land lot in 2018 (at the peak), since then the prices have fallen down by 10% to rise briefly and now the Coronavirus is putting the downward pressure.
- In the midst, I lost my job, was job hunting for 3 months to join a company that got acquired by another.
- My wife was offered a job to be rescinded in this environment.
Financial Situation:
- Thanks to the fantastic advice all over the forum, we have been saving and spending less for the last 4 years.
- We do not have any credit card, car or other loans
- No land loan
- As we both were out of the job we kind of used our emergency and my focus has been to build that again. This time we are trying to get it to 6 months at least.
Our land is not big but good enough to build a small home. We were thinking of 2 storey but it will be costing us 40K more and we are thinking of dropping that idea to save money.
Our monthly income: 6K (After tax)
Monthly Expenses: 2K
Expected EMI (for 15 years) (double storey): 2K
Expected EMI (for 15 years) (single storey): 1.8K
Looking for the following advice?
- Given that home build prices do not change much, is it advisable to wait further, I am renting now. (Rent: 1K)
- Should I build a small home for now? (right now we have 1 child but we have been thinking to add 1)
- What was the experience for people who bought/build their first home during 2008/2009?
- I do not like debt so 15 years but I could increase the loan term to 30 years and go for a bigger home.
Note: We do not plan to build another home for us, this is it.
Thank you all for the guidance!