I'm a software supporter/developer living in Nashville, Tenn. If you know anything about Nashville, it's growing like a cancer and house prices are SOARING with no slow down in sight; in the last 4 years, home values have increased 37%. I'm currently renting for $1430 (and that's going up) outside the city and commuting a combined 2 hours a day on a good traffic day, so I want to get into the market closer to work before I'm priced out, and have always wanted to own property in the area.
Me: Unmarried male, 27
Occupation: FT in IT, making around $90k with great benefits
Pre-qualified: $350,000 7/1 ARM-FTHB with 3% down, no PMI (local Credit Union and superb credit)
Other financials: $10k liquid cash, $6k health savings, $20k in 401k, <$5k left on a car loan.
I plan to always have a room mate (for most years my SO while not away at grad school) to contribute around $500 or more in rent. I've budgeted all my expenses to the penny and all the math says that, while I'll be without a cash windfall for a year, I can afford it.
… but I'm afraid to make the commitment still. $350k is a little below average for a comparable house in Nashville but is still so much money. I feel like I've done my research but my gut says don't do it. The only cheaper areas in the county limits are known for stray bullets flying through windows.
I'm looking at new construction or recently renovated, so in theory my immediate repairs costs would be at a minimum.
What do you think, PF? Am I crazy for wanting to do this or just letting my nerves get to me?
EDIT>> Thank you everyone for the very succinct answers. I believe I either need to look elsewhere or forgo my purchasing plans all together for a while.
Submitted May 10, 2017 at 03:28PM by iTim314 http://ift.tt/2q3QEI4
