sick of debt
02-21-2009, 07:18 PM
Well, we have been renting a trilevel condo for almost a year for $1800. We filed for BK (chapter 7) in Sept and discharged in Dec 08. With all that said and done, we have sat back and realized we are paying a lot for rent. Granted we do have a lot of space, however we are just throwing the money away. I am just having one of those days today and trying to make right choices after BK. My in-laws are willing to finance a house for us, as long as we have a down payment. SOOOOO, the point of this thread is---should we move to an apartment for $1000-1100????? Less space but significant savings. All things considered-less heat, less electricity etc. Any thoughts???? We have 2 children.
Yes, move to a smaller place.
dingdong
02-21-2009, 07:33 PM
Have you tried pricing homes in your area with the sq footage you need to see what a mortgage payment would be like, including insurance, cost of repairs that may come up and prop taxes to see if you can afford a home?
If you take that payment and take the ratio of house payment to income and it falls within ( I think the financial advisors say your housing costs should not be more than 30% of your income) your means, and you should have at least two months of housing payments in reserves ( I believe that is what lenders want anyway, I could be wrong) than purchasing a home would probably work for you.
IF you look at giving up a little luxury for a couple of years to building equity in a home of your own( by moving to a cheaper place), than I think investing in a home vs paying someone elses mortgage is a good decision. You have to remember, unforseen housing expenses can come along that you will be liable to take care of as a home owner that you are not liable for as a renter.
I have been listening / reading that the housing market may continue to decline until 2012, but who really knows?
I moved into a cheaper home to try and do the same thing, less ammenities, smaller, but 500.00 less per month. My kids are fine with it, you can make a home wherever you are and kids adapt, they just want their parents around, happy and healthy and stress free.
