Buy or rent with these stats?

SAP / Other
five oh 3

Go to company page SAP Other

 five oh 3
Mar 17 33 Comments

We have about 44K in savings (includes emergency fund)
Monthly net income around 9.5K

Looking to buy a house in Colorado ~650K with a 5% down payment. According to redfin the estimated monthly payment will be 3.5K

Houses for rent in this area go from 1.7k to 2.3k.

As additional info, we have a baby on the way due later in the year. We've moved around a bit the last few years and are looking to settle down.

I ran some simple numbers and it looks like after mortgage, utilities, food etc we should have about 2k left a month. I know people live on less, but it still feels pretty tight. Wondering if we should rent to save more for a bigger down payment, or just try to find a cheaper house (won't be that much cheaper here, but we could reduce the mortgage payment to about 2.8k-3k/mo)

Input is appreciated. Thanks!

TC ~200K

#housing #mortgage

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 TOP 33 Comments
  • Honestly if your job is stable and you’re pretty good about not overspending in other areas, go for it. I bought a condo east of Seattle last summer with 10% down. It was roughly 380k and it’s worth 450k now. On paper I made 70k, renting I would’ve lost 40k roughly for the year. That same 40k went in as a down payment instead and has now turned into 120k+ on paper.

    I’m not a big shopper or anything though, and my income is 250k/yr. Solo.
    Mar 17 2
    • Let’s not forget I’d be looking at a fat rent increase this year if I didn’t own, instead I pay this low $1850/month mortgage vs $2.5-3k for an apartment.
      Mar 17
    • SAP / Other
      five oh 3

      Go to company page SAP Other

       five oh 3
      OP
      Yeah that's a good point and one that's been nagging me. Renting vs building equity. Thank you for the input
      Mar 17
  • If 44K is your total savings, definitely rent. Focus on saving aggressively.
    Mar 17 5
    • Amazon
      yaHm15

      Go to company page Amazon

      yaHm15
      I would wait for a few months maybe? It’s risky prices could go up but at least you will have more savings. Also most lenders look for reserves in case you lose your job or something like that you should still be able to make mortgage payments
      Mar 17
    • Would consider waiting, you don’t have a huge nest egg to rely on if things go wrong. Having a baby in the picture and unsure about the finances could be troublesome. Nothing wrong with waiting; don’t rush to buy a home. Save up and see what new opportunities come when your more ready.
      Mar 18
  • Amazon
    aDVY80

    Go to company page Amazon

    aDVY80
    It’ll be tight, but if you think you’ll be there a while and the house is the one, I’d do it. We’re adaptable species. The peace of mind of owning your home is worth it.
    Mar 17 0
  • Square
    cIhb85

    Go to company page Square

    cIhb85
    If you can get rent for half the mortgage I recommend renting. Owning your house has a lot more cost than just mortgage. Repairs eat into your budget too. 2k is too tight for any emergency should that occur
    Mar 17 0
  • Freddie Mac / Mgmt
    eatDaRich

    Go to company page Freddie Mac Mgmt

     eatDaRich
    What’s your YOE? No advice just nosy.
    Mar 17 4