Hello members,
This is your typical buy vs rent question. We are a family of 3 - me, wife, and a 3 year old.
We've been renting for quite a few years and home ownership never appealed to me until rents
started going up recently. Doing my numbers, am of the opinion that perhaps the time has come to buy.
I would like your input and see if am on the right track (affordability plus buying over renting).
* House hold income: Somewhere between 150K to 170K depending on the year.
* No car debt, no credit card debt, no student loan
* Credit score almost 800 for both of us
* That gives us an interest rate of 4.0% or 4.125%, where I avoid the origination fee.
* Current rent - $1119 for a 2 bed 2 bath, about 1200 Sqft. Rent has gone up from $865 to $1119 in the last two years and I dont see it slowing down, the area is bubbling.
* Proposed house price - $280,000. Down payment 20% to avoid mortgage insurance. Monthly P&I works to $1,085 ($770 I and $315 P), which is lower than my rent. But I am aware home-ownership comes with other costs like Taxes and higher insurance.
* Property Taxes ~ $3,000/yr or $250/month.
* Home Insurance ~ $100/month.
Footnotes:
1) The numbers seem to make sense to me and make me think now is the time to buy.
2) We live in the South so general cost of living is not a big burden and we are semi-mustachian.
3) Not too badass but no chickens either.
4) Also, am aware that maintenance costs need to be factored in but at the same
time I am not accounting for any reduction in my taxes either (in spite of interest plus property taxes).
5) It's a 4 bed 3 bath house, so almost double our current living conditions.
Would love your input.