Hi reddit,
I'm hoping to buy a house within the next 5 years. Currently my financial situation is as follows:
• $40,000 of student loan debt, have tackled 20% of original amount in a year (started at $53,000 in December 2015); on track to pay off by 2020. Rates range from 3.4-6.8%, using avalanche method. I pay $500/month towards my loans, and family contributes $250/month. My monthly payment under IBR is around $150. My student loans are currently paid ahead to January 2018. My highest interest rate loan is slated to be paid off by July 2017.
• $11,000 on car note, 2% interest rate. On track to pay off within 4 years. I pay $226/month for my car.
• $1,900/month income.
• I will be making an additional $5,000 before taxes this summer due to extra work I am picking up over the summer. This money will be used strictly for savings and aggressively paying down student loan debt. This brings up my bi-weekly paychecks from about $950 to $1,500 bi-weekly for a two month period. I did this last year, and lived off of my regular $950 bi-weekly income (with an occasional personal splurge), and used my additional pay strictly for extra loan payments and savings.
• I do not have to pay rent. Housing and utilities are covered by my job. I am contracted with this job until summer 2022 (though not a "stay here or face penalty" contract; people in my role are allowed to remain in it up to six years), but may leave at some point during 2021 to move home for work.
• Monthly expenses are: $80/month for health insurance, $70/month into a mandatory pension plan (no 401K), $15/month for a mandatory union fee, $250/month on food for one person (including eating out and groceries), less than $100 on gas, and $100 or less a week for "fun" expenses. I also pay $116/month for car insurance, but this will be down to $70/month starting this month. I also have a $10/month Netflix membership. These are my only regular expenses.
• Total expenses per month (including my regular student loan payments): $1,377
• Total savings per month: $400-$500/month
• Total at the end of the month out: $1,767-$1,867
• Total left over: $23-$123
• I currently have $5,250 in a .75% APY account. It gains around $3 of interest each month; not a lot, but good for where I’m at right now!
Within the next five years, my student loan debt should be eliminated, as will my car note; I will still be keeping my current vehicle, as long as something catastrophic doesn't happen. I would also be moving back home permanently, where I could find a good sized home for $250,000. Property taxes are manageable in the areas I'm looking, as are utility costs. I have a lot of people in my family good at construction (like my dad; loves taking on renovation projects!), landscaping (my cousin often does great work for various family members for free or deep discounts), and other specialties, so maintenance and renovation costs would be reasonable. I would also be making close to $50k-$60k at minimum. If I am able to keep up my savings goals, my savings should be close to $45,000 or more by 2022 (not factoring in interest, bonuses, or unexpected windfalls), pending no emergencies.
Am I being too ambitious? Or, could home ownership be a possibility for me?
Submitted May 02, 2017 at 02:04AM by iwannabuyahouse1 http://ift.tt/2qsLOlt
