Friday, January 16, 2009

HELP: Settle this Argument

Me and Leah have been going 'round and 'round about our housing situation for the past few weeks/past month.

Here is our problem: Leah wants a house and I don't think we can afford it.

I make about $25,000 and Leah makes slightly more than that. We pay $590 a month in rent right now. Right now, we have a lease that lasts until August. In August we BOTH want a new place--our current place is beginning to become a dump (bad neighbors, shitty landlord, etc.). I want more space, so does Leah.

Leah thinks we should get a house--I feel that with our low income, it would be stupid to OWN a home (she forgets that beside paying for a mortgage we will also have to pay property taxes, repairs, etc.). I argue that home ownership is more costly than she realizes.

I want us to get a home, but feel that neither of us is ready (i.e. makes enough money). I frankly, don't feel like I have a very reliable job either (did I mention that last week's paycheck was initially rejected by my bank?). I want a better situation for both of us before entering into true adulthood--home ownership.

Leah wants more puppies and a baby, things I've told her we can't have till we get a house.

Am I being crazy here? Or am I correct thinking we're not ready for this yet...

15 comments:

Lrgblueeyes said...

There are some more factors, we both have good credit scores, a small but sizable savings, would get benefits by being 1st time home buyers, we are planning to be in the St. Louis area the next 4-5 years and have permanent jobs. The apartment we are in now is poorly insulated so we are paying the same as Jason's Mom does to heat her 3 bdrm home to heat our 2 bdrm apt.
Im not saying we should buy a 200,000 dollar home, im talking about 1/2 that or less. I think housing prices are dropping and will be dropping more. I think us buying a home in August would be a good idea.

Jason said...

For the record: Leah wanted me to make this post.

Jason said...

P.S. keep dreaming Leah...keep dreaming.

Lrgblueeyes said...

And if Jason wanted to get a different job even if it was a crappy $10 security job somewhere, he would then make at least 20,000 and I would still make what im making.

Lrgblueeyes said...

oh and i just did the math at 6 % we could get a 100,000$ home for a monthly mortgage of $606

Jason said...

Ugh. Maff. Why do you have to bring Maff into everything...

Lrgblueeyes said...

I would bring in Science to if I could

Jason said...

I thought the point of this post was to see what OTHER people thought...

Erica said...

I dunno, I could go either way. Though if you do own a home, at least your money will be going into something, rather than out the window.
I think you two should go to a homebuyers class, they do have them.

Jimu said...

sadly I think that is just what the situation needs jason. math math and more math.

I would house hunt.
figure out what kind of house you want. and then figure out if that is more than you can afford. if it is, then maybe you should wait.

conversly figure out what you can afford and then look at houses in that price range. if they are too crappy for what you want, wait..

but I will say this. Right now, in the market the way that it is, your money will go MUCH MUCH further than it would 2 years ago. or than it probably will 2 to 4 years from now.

If you could swing it, (as in can afford it and all the bagage that comes with it,) I would say do it. because it would be ideal now.

jason, are you sure that you just want to be more stable? or is it fear of the step into adulthood.

Steven Francis Murphy said...

I've been having this same argument with my parents. I have a VA Loan I can draw upon, housing prices are low, etc.

But the main reason I hold off all tie to job stability, relatively low pay and six week or longer income gaps which are a hazard of adjunct life.

I'd argue in favor of a house if one was in a secure job with a steady promotion track. I do not see that being the case onboard the Battlestar Limemonkey or the Blue Eye Death Star.

I'd counsel against it. There is no telling just how much worse this economy will get. If you get locked into a house and can't find a job, you'll be worse off than you are now.

Respects,
Murph
On the Outer Marches

Terri said...

Mt two cents--I began househunting as a single parent in the early 90's. Took me 5 years of macaroni & cheese and Ramen to scrape together the down payment (10%). My house payment was scarcely larger than the rent on my 3 bedroom apartment in Hickman Mills. In Lee's Summit, I felt my children had a higher quality of life.

I have a young niece who married last spring. She and her new husband recently bought a townhome (a compromise?) at #35,000 off the initial asking price. She is still in school, but works full time. His employment history is fairly erratic. A townhome might eliminate some of the yard work, etc.

Jason said...

I have a job Jimu, I'm not sure how much more adult I can possibly be.

Jimu said...

kids and a house...
oh and a dog.

(aka all the things leah wants once you guys have a house)

Lrgblueeyes said...

Just to let people know, this is not a fight we are having its a friendly argument neither of us are angry or heated in any way. I know some of you called me and was concerned we were fighting. We are not, just trying to see every angle to this huge decision.
I think a town home might be a good idea, although I did want a little bit of a yard. But its all about compromise.
Murph I thank you for the support since I do have a secure job with a steady promotion track. The Blue Eye Death Star is working at Washington University Med School as a Research Assistant.