Should I move to a cheaper apartment to save money?

Question

Current stats:
Rent-$535
Water/Trash-$30
Electric-$70
Required Rental Insurance-$20
TOTAL:$655 per month/$7860 per year

Stats for different apt:
Rent-$430
Water/Trash-Included
Electric-$70(smaller place,no icemaker or dishwasher to use,window AC/heating units so we can use better climate control,but washer/dryer connections which we don't have now)
Rental Insurance-not required
TOTAL:$500 per month/$6000 per year

We're currently living in an apartment that is as much as we're willing to pay for an apartment.It's nice,but not one of the overly pretty brand-new complexes in town.The next one bedroom apts up from this one cost $700-900.One step lower that we'd be willing to live in(not drug infested,rundown)would be the apt for $430.We're wanting to save to buy a house hopefully in the next 5 years. Question:Is the $1860 savings per year worth moving to a slightly smaller apartment & going through all the stresses(financially,mentally,physically) of a move?

Answer 1

Yes, it will be worth it in the end because by the end of 5 yrs. you will have had enough money saved for the closing cost of buying your own home. Go for it.

Answer 2

Contrary to what the previous answer says, there are many Loan Offices out there that will give you a loan based on little or no credit. What credit will do for you is just get you more money for your downpayment and a lower interest rate. In regards to your downpayment, you can also get 100% financing. There are many programs out there that can help you. As a matter of opinion though, you might be better off trying to save at least 5%. This way your interest rates will be lower. As far as the move goes, that would be up to you and your fiancee. Do you both think that you could deal with living in a smaller space for a few years to get the money for a downpayment. If you think that you can deal, then I say go for it. The only thing that I would suggest is that you DO keep your rental insurance.

Answer 3

yes, I think the new appt. would help you to save money for your new house and with the AC/heat included it will be more comfortable in the summer and winter! I would def. jump in and try it out, no use paying for the extra space.

Answer 4

Yes.