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-   -   Ae you house poor? Do you regret it? (http://www.diaperswappers.com/forum/showthread.php?t=1478748)

theonenonlymrssmith 01-06-2013 09:17 PM

Hubby and I have fallen head over heals for a property that's pushing the budget. If he gets approved for it, we're definitely making an offer. Here's our reasoning:
Besides a car payment, we have no other debt related bills. So we feel we can put a little extra towards our dream home.
DH has 2 guaranteed raises coming up after he has been at his job for a year and his job is EXTREMELY secure.
The mortgage is only 100$ more a month than the apartment we have been renting.
We really don't "do" anything besides stay at home. We don't enjoy eating out, going to the movies shopping etc so we don't need/use and entertainment fund. we like Home and nature, the house is on 3 acres in the mountains. It is absolutely heaven on earth.

My question is, are you house poor? What was your reasoning for becoming house poor, and do you regret it?


Excuse typos, I'm mobile and nursing a squimery toddler!

TeachinAuntie 01-06-2013 09:23 PM

Re: Ae you house poor? Do you regret it?
 
We're "house poor" but not in the way you describe.

We bought a house we could "afford" but we overpaid. We are upside down in our mortgage now that the market crashed (we've been here almost 7 years) and we will never be able to get out of our "starter house" that we have now outgrown as a family.

Technically the appraisal is only about $35K under what we paid/owe but the actual neighborhood comps are more like $70-80K under. :( And we have a balloon payment coming due in 8 years that there is just no way we can save enough for.

We DO have other debt (thanks to life happening) and so we live on a very strict budget to be able to pay our bills, even though DH makes "good money" and from the outside looking in we "shouldn't be poor."

If we knew then what we know now, NO, we wouldn't have bought a house at that point in time....of course buying a house was step 1 to starting a family for us & if we hadn't bought then who knows when we would have!

theonenonlymrssmith 01-06-2013 09:25 PM

Quote:

Originally Posted by TeachinAuntie
We're "house poor" but not in the way you describe.

We bought a house we could "afford" but we overpaid. We are upside down in our mortgage now that the market crashed (we've been here almost 7 years) and we will never be able to get out of our "starter house" that we have now outgrown as a family.

Technically the appraisal is only about $35K under what we paid/owe but the actual neighborhood comps are more like $70-80K under. :( And we have a balloon payment coming due in 8 years that there is just no way we can save enough for.

We DO have other debt (thanks to life happening) and so we live on a very strict budget to be able to pay our bills, even though DH makes "good money" and from the outside looking in we "shouldn't be poor."

If we knew then what we know now, NO, we wouldn't have bought a house at that point in time....of course buying a house was step 1 to starting a family for us & if we hadn't bought then who knows when we would have!

What is a "baloon payment?"

jam's mum 01-06-2013 09:27 PM

Re: Ae you house poor? Do you regret it?
 
Yes, in that we have much, much less disposable income than we did before. But, we do love the house we're in, it hasn't needed much work (had to have the basement resealed, but that's it), and we're still getting by. So I do sometimes wonder if it was wise, but I don't actually regret the purchase.

KaleidoscopeEyes 01-06-2013 09:28 PM

Re: Ae you house poor? Do you regret it?
 
if the mortgage includes taxes and ins and is only $100 more a month i say go for it.

ulawolf 01-06-2013 09:29 PM

Having been house poor before I would never do it again. No matter if it was my dream home.

theonenonlymrssmith 01-06-2013 09:30 PM

Quote:

Originally Posted by KaleidoscopeEyes
if the mortgage includes taxes and ins and is only $100 more a month i say go for it.

Yup! Everything is included. :-)

igotmywings 01-06-2013 09:32 PM

Re: Ae you house poor? Do you regret it?
 
honestly if its only $100 more per month then your apartment I would go for it. BUT are the utility bills going to be about the same? I only say that because our utility bill in our apartment was way different then our utility bill in our house. PLUS does the $100 extra include escrow? (meaning taxes and insurance on the home).

WE aren't house poor. We bought our house when the market crashed. I like traveling. I like making memories with my family and going to the aquariums and zoos and parks and etc etch (however, I do not like eating out and stuff). Now, Would I be happy if we could not do that in my home? sure. Buuuut given the option I would not be house poor.

igotmywings 01-06-2013 09:35 PM

Re: Ae you house poor? Do you regret it?
 
Quote:

Originally Posted by theonenonlymrssmith (Post 16124402)
What is a "baloon payment?"



Meaning Shes making non amortizing payments right now. She has a 10 year mortgage (i don't really know how long only throwing out figures) that in 10 years a large sum lets say 30K will be due and she has to pay it all then. OR refinance now (which is hard in this market). Typically when you take out a mortgage and its set to amortize in 10 years that last payment you pay is to pay it off completely and usually pretty small (like around your normal payment). I do not recommend having a balloon loan.

misskira 01-06-2013 09:35 PM

Re: Ae you house poor? Do you regret it?
 
Quote:

Originally Posted by KaleidoscopeEyes (Post 16124418)
if the mortgage includes taxes and ins and is only $100 more a month i say go for it.

I agree!


We aren't house poor, but we don't love our house. We bought it when dh was making bank at a job that was supposed to be permanent. We were only supposed to live here temporarily and then it would be a rental. It didn't work out that way. We would be house poor if we didn't refinance last year. Now, even with taxes and insurance included, its cheaper than renting an apartment. My student loans do make us poor though. That's why we don't move.

Eta: we are living frugally on one income until I return to teaching. We felt the boys needed me home this year and last year. When we are dual income again, we will be doing better. Especially since we've learned to be frugal on one income.


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