Bought house in 2018, did I overspend at the height of real estate boom?
can you evaluate my housing cost+financial situation please? scared I spent too much since I bought it at 24 yrs old when I didn't know much about personal finance.. did i make dumb decisions per month: $3503 (mortgage + utilities) the breakdowns- mortgage (principal/interest/prop taxes)=3243 gas+electric=125 water=50 garbage=25 wifi=60 the house is 3 bed 2 bath (also has garage converted into inlaw unit to house my grandma) 1100 sq ft on a 5.5k sq ft lot I also get $1375 per month from my relatives who I house here. 3503-1375=$2128/mo i think $810 goes toward principal and $500 mortgage interest deduction/mo, and 2128-1310=$818 don't think i should count this as 818 in my budgeting or else it'll make me too overconfident, so I'll use $2128 this is a house in the East Bay of the bay area.. BART train ride to SF is around 27 minutes not counting wait-time and delays was buying this house dumb or should I just have rented and invested in stocks? Edit: Forgot to mention: 660k home, 20% down payment, zillow/redfin/realtor.com suggests my county's home prices remained neutral in the past year 210k TC
Realtor
Lol how much did you pay for the house. That's probably the most important thing missing.
This
Forgot to mention: 660k home, 20% down payment, zillow/redfin/realtor.com suggests my county's home prices remained neutral in the past year 210k TC
If you're living in it, it doesnt matter. Most real estate cycles are roughly 18 years. I think everyone here has PTSD from 2008, not every recession has a direct impact on housing. If the broader stock market starts going down and US GDP growth begins to slow, it doesnt mean that home prices will magically tank over night.
Yup this, you'll live in the house for long enough it won't matter. Your other option is throwing out 4k a month on rent
What op should be worried about the most is the current interest rate environment. The United States has never had a low rate environment like post 08, which fed the real estate boom. So as much as a cycle is on average 18 years, there is a lot of decency bias in that.
You shared nothing about your financial situation like your TC. $2K housing cost sounds low. You would’ve spent more than that for renting.
Forgot to mention: 660k home, 20% down payment, zillow/redfin/realtor.com suggests my county's home prices remained neutral in the past year 210k TC
Real estate and stocks are always at their peak. That’s why you invest in them. If they were cheap more often than expensive, they’d be terrible investments
Fair statement 👌
You're fine.
You can’t predict the future so how could you (or anyone) know this? As millennials inherit boomer money real estate will become even more competitive in my opinion but no one knows.
They say a lot of the housing market will open up in the next 10-20 years as boomers die, downsize, or sell their houses and move into assisted living facilities. I wonder how that will play out on prices
As someone working in the RE Development space and whose background is in RE, I think this largely depends on your goals and time horizon. Are you planning on staying there a while? If so, this doesn’t really matter and you’ll probably end up fine. Will you NEED to sell your home for cash in 2-5 years? If so (life is unpredictable, I know) you may be in a tough spot but it’s not like it cannot be solved somehow. All in all, if you feel comfortable with your financial situation and don’t overleverage yourself to support a lifestyle you can barley (or can’t) afford, you’ll end up fine. When you hear of all the 08 horror stories, it’s a lot of people who got into financial turmoil from either getting laid off and/ or overspending.
congrats, 660k for 3/2 in east bay is good deal!!! watch the appreciation value.
@OP What is your house valued at now?
Chill.. there was cool down so it's meh