We are buying a house. Should we?

Discussion in 'Everything Else' started by Anne120, Aug 25, 2016.

  1. Anne120

    Anne120 Member

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    Hi,
    Hi everyone, It's been long 10 years we are together. Last year we tied the knot and made it legal. Our life is moving forward very happily. I need a little advice. She wants to get settled. Currently, we are living in a rented apartment. She wants to buy a house in the suburbs. She is dominant in our relationship and she has been taking major decisions in our lives. I'm happy that she does. But this time, I'm a little concerned as we are not having enough savings to buy a house. She tells that we will be a complete family once we move to our own home. We were seeing different houses around in the past week. She wants to buy on the mortgage. We are going to see a mortgage broker on Monday. The cost of the houses around here is around 350k. Earlier, I used the mortgage calculator of the broker's site to check the payment we need. With will have to pay 3k monthly into the mortgage for a period of15 yrs. She tells me our combined salary can manage it. But, we will have only very little for savings. She is the marketing head of a firm. She is expecting a promotion soon. I'm but thinking it's too soon. I'm 29 and she is 30. What are your thoughts? Should I convince her to rethink? If I'm so adamant, she has canceled some plans.
    Need help.
     
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  2. Bluenote

    Bluenote Well-Known Member

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    Talk to a financial planner.

    Don't buy a house where you have no savings.

    Understand that there will be significant additional expenses to owning a home- maintainence, repairs, equipment like snow blowers, lawn mowers, tools.
     
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  3. Anne120

    Anne120 Member

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    We have accounted the additional expenses. But, I fear unexpected expenses. But, she is sure she will be promoted in 4 months time.
     
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  4. Bluenote

    Bluenote Well-Known Member

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    I stick by my opinion to talk to a financial planner.

    I am not sure why you would buy on a 15 year mortgage and not a longer 20 or 30 year. Longer time would lower your payment.

    There is no such thing as a 'sure' promotion. I don't doubt that your wife is very good at her job and worthy of promoting. But companies can be jerks and good people get treated poorly, not promoted, shortchanged on raises, etc... all the time. Sad but true.

    In a 15 year span (or 20 or 30) you will most likely face some kind of hardship. One (or both) of you could get sick, get laid off, have to help care for a sick family member, etc... Many things are beyond your control (illness, economic recession, companies merging and cutting staff, etc...)

    You need to have a significant financial buffer to weather these hardships. Having no savings and spending to the max on a house is the opposite of having a financial buffer.

    Perhaps you would be better off building up some savings, buying a condo, having lower payments, building equity in it. Then a few years down the road you can sell the condo and use the equity from it to buy a house. But again, discuss this with a financial planner before making any decisions.
     
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  5. Anne120

    Anne120 Member

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    Thanks, buddies. She is more convinced to wait a little bit more. Anyway, We are seeing a financial planner tomorrow.
     
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