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I work in a desirable suburb in PA, terrific schools, hip downtown, hot housing market. My wife and I have been watching houses fly off the market, 18 months into house search, itching to start having kids (1 or 2). Our lease expires in July, and we're watching interest rates climb.

After getting smitten at an open house, shot out an $365,000 offer on a $385,000. Accepted.

The day before inspection, we are having doubts we can afford it.

  • Monthly net income is $7,000 (I make 100K, wife 12k-15k)
  • Monthly PITI is $2581 (37% of net income, 28% gross)
  • Monthly utilities+internet+warranty are $834
  • PITI+Utilities are $3,415 (48% of net)
  • Monthly Expenses/Debt are $2495
  • Home+Utilities+Expenses are $5910 (84% of net)

We are still looking at walking away with about $1100 every month, but we expect our first child will eat up a big chunk of that. EDIT: Wife works from home, so minimal childcare costs.

Because wife works at home, we wanted to invest in a nice office and school district. Being in town will lower my commuting costs significantly.

The more affordable areas around us have crappy schools or way higher taxes. The house is move-in ready, but needs cosmetic updating. Over time, we think we can add value, even though values are high right now.

Is investing in a strong community worth holding this high of an income/PITI ratio? Thanks in advance.



Submitted May 13, 2018 at 04:45PM by TheArchitect_7 https://ift.tt/2IFRvZl

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