I am not going to buy a house right now. I don't even want to. It's not really affordable when you factor in repairs, scholarship rules explicitly forbid it, and my goals involve moving in the near future. Still, I page through the real estate ads and wonder what I'll be able to afford when I do buy. It can't hurt to consider what income would be necessary for the lifestyle to which I aspire.
I looked up the price of a house down the street from my parents. It's a tiny two bedroom one bath with only 728 square feet of living space, and it isn't a fabulous place despite a decent sized lot. It wouldn't be suitable for a big family, but it could be great for a single person and a dog or two. The list price is $75,000. My parents think that's ridiculously high, and they may well be right. However, if I drained almost all of my savings, I could make a 20% down payment. Even with a 7% interest rate, the payments on a thirty year mortgage would be slightly less than I pay in rent right now. Barring another real estate boom in the next few years, buying a home in my area on a single teacher's salary a few years from now seems pretty feasible. That may not be what I decide to do with my life, but it's nifty to know that I could.
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3 comments:
Wow, $75,000 to own? That's cheap. Out here in the Bay Area, everything is so much more expensive. My boyfriend and I were just discussing home ownership (for the future) and joking about how when we want to own, we will have to move. But that's probably true, and I'm sad about it.
It's nice to know that in the future you'll be able to afford to at least maintain your lifestyle and own a home.
Yeah, living in a rural state in the middle of the country does have its advantages.
My house cost $63,000 (I also live in a rural area) and it's just under 500 sf. Really small, but my mortgage is way less than any area rents.
Best decision I ever made.
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