I am torn between two situations...
My husband and I found a wonderful litle townhome, and we have already figured out that payments and everything, and they will be about 1000 per month!
OR---we can downsize our apartment now which is 1000 per month and get a tiny one bedroom for like 850 per month!
The problem is- we dont have TOO much money!
I going to be getting a part time job soon though.....so, that might help a little bit!
What should I do?
2007-08-22 08:55:52 · 6 answers · asked by Nicole S 1 in Business & Finance ➔ Renting & Real Estate
If you are buying, go with the townhouse. If you are renting, downsize and save your money to buy a home.
2007-08-22 09:00:51 · answer #1 · answered by Suzy 5 · 0⤊ 1⤋
Honestly, it depends on how much money you have at your disposal. If you are currently paying $1000 for your apartment and are financially comfortable, then the townhouse may be an option. Just make sure that the $1000 a month that you are expecting it to cost invcludes insurance and taxes. Also, make sure that this still leaves you with money somewhere for any appliances or maintenance issues that may come up in the future (esp since most apartments cover that kind of stuff as part of the lease).
If all of that is not going to work with your finances, downsize to the smaller apartment so you can save and be more stable next time you look at buying.
2007-08-22 16:09:47 · answer #2 · answered by teel2624 4 · 0⤊ 0⤋
It depends on how long you think you'll live there. If you plan to be there for a few years (2+), you are probably better off purchasing the townhome and making mortgage payments, building equity and getting a tax write-off.
If you think you will move again soon (1-2 years) renting a smaller place and saving $$ to put toward a down payment on a home is probably the better route to go. The cost of purchasing a home then selling it so you can buy something bigger in a year or two gets expensive. Just add up the realtor fees, mortgage application fees, moving expenses, etc.
There are some good calculators on Yahoo! Finance in the "personal finance" section that can help you see how much it will cost to have a mortgage, how long it will take to save for a down-payment, etc.
Good luck!
2007-08-22 16:11:41 · answer #3 · answered by Mel M 6 · 0⤊ 0⤋
Does the payments on the townhouse include taxes? Very important because they can add hundreds to your monthly costs. Open up an Excel spreadsheet and figure out all your costs both ways. Remember for the house to add a budget for repairs, insurance, increase in utilities etc. This will help you see your financial situation in both situations, and help you decide as to which you can more easily afford. Include all expenses from insurance, to food, to gas etc Everyone's is different, depending on spending habits, needs, bills etc. If you do not have Excel go to Openoffice.org and download open office which is almost the exact replica of Microsoft office but it is free.
2007-08-22 18:34:30 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
if i were you i probably would consider downsizing and renting until i know that the funds will keep coming because the job is secure you don't want to get the townhouse just to possibly loose it don't rush into something that is huge like home buying
2007-08-23 00:10:39 · answer #5 · answered by chyna doll_2 2 · 0⤊ 0⤋
get the tiny one b/c if you can't pay the rent you will be evicted
2007-08-22 16:30:14 · answer #6 · answered by VOLLEYBALLY 4 · 0⤊ 0⤋