Hi All, first time poster here:
I am a 30 y/o technology sales account manager. My partner is a union engineer at a regional utility company. My family recently offered to help my partner and I purchase our first home by giving us an interest free loan for $100k (this would go towards our down payment). This is a "pay us back regularly, but don't fret if you miss a payment" kind of loan.
Having a hard time deciding whether it is a good time to buy right now-especially considering the possibility of a global energy crisis that could preempt another economic/housing crash.
Here is our current financial situation:
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Salary 1 (me): 60k base, unlimited commission (not guaranteed)
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Hourly 2 (partner): 120k base + OT totaling around 160k + pension, guaranteed $5/hour pay raises every year.
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Total Income: $220k pre-tax
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Assets: Enough in bank accounts, investments, and 401k to cover 12+ months of housing payments at time of purchase.
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Debt: $305/mo car payment, $7500 left
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The Loan: 4.0%, approximately $4800/mo (Mortgage, interest, property tax, HOA all included), 30 year fixed rate
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The House: Single family home in a new community, to be completed and ready for move-in a year from now.
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We will be renting at least 1 room to a friend at $800-$1000 a month, 1 additional room can be rented out as well
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Taxes filed separately
I am currently on a job hunt that could potentially boost my commission earnings. Our projected pre-tax income at that point would be a combined $260k to $280k.
Luckily, my family has offered additional financial assistance in case we need help making payments. But I don't want to rely on them for this.
All the talk of another recession coming in the next year or two has me worried. Housing value will inevitably drop, but will interest rates rise to the point where a loan on a cheaper house becomes juts as much of a burden?
Wanted to check with all of you and get your ideas on whether this is:
1) A good idea
2) Financially feasible
Submitted July 24, 2017 at 12:51PM by sauberc1 http://ift.tt/2gXj8k4
