Hi everyone,
I'm considering purchasing a condo in the next few months before my current lease ends (it ends at the end of August) and am curious to hear everyone's opinions on whether or not I can afford this condo. Below I've listed out some of the details about the property I am interested in as well as my current financial situation.
Details about condo:
- 2 bed / 1 bad, 760 sq ft, additional storage room outside of unit, 1 parking place, water & internet included in HOA, includes washer dryer, modern kitchen, nice hardwoods
- List Price: $180,000
- Down payment: $10,000
- HOA payment: $259/mo
- The mortgage banker I have been working been working with estimated the mortgage payment to $1,158 including $50/mo for insurance & $74/mo for PMI
- Total Estimated Monthly Payment: $1,417
Details about my finances:
- 85k salary (take home monthly pay, after 401k deductions & health insurance, etc = $4,450) (I expect a 10-20k raise in September, but am not banking on this)
- Essentially totally passive side-hustle that brings in around $300-500 a month in profit (didn't report this to bank, as I don't consider it entirely reliable) (have another thing that's starting to turn some small money as well, but it's negligible atm)
- Almost 25 years old
- No debt
- 401k - 17k - I contribute $750 a month
- Emergency Savings - 16.5k
- Stocks - 5.3k
- My current rent is $621
- All other monthly expenses: ~$1,500
- I use to keep a very detailed budget about my expenses but then I decided it wasn't worth it the hassle as I immediately move 1k from each paycheck into savings, which I have done every month since making this salary, so I can essentially save at least an additional 2k each month
- I work from home, or travel for work so I don't have high commute / gasoline costs
- I have a girlfriend, but we don't live together, wouldn't for atleast another year or two
My Plan:
I want to take the 5.3k from my stocks and an additional 5k from my expected 2k savings a month or from my emergency fund to fund the 10k downpayment depending on when I would make an offer. I want to try and avoid paying rent and the mortgage as much as possible, but I don't know how much longer the unit would last.
Homes in my city are easily 400k+ for a small, outdated home and I really don't have any desire to lock my self up with half a million dollars in debt, not that I could afford that at the moment, and I like enjoy minimalism & apartment living so I don't want a giant house. So a 180k unit sounds like a good deal to me and it's in a very nice and urban area and maybe 15 minutes to the mountain biking trails as well which is a really big plus for me
Please let me know your thoughts, I'm very interested in FIRE one day.
Submitted May 30, 2019 at 10:42PM by Buffett_Goes_OTM http://bit.ly/2QCnR8J
