Submitted by alonelyoaktree t3_1272k0d in personalfinance
Hi! We are in the process of searching for a home a in a HCOL area. We have a young child and really want to put down roots where we currently live. We honestly, want to live in this area forever if we can and so homebuying makes sense in this case.
However, as you could expect, home prices are insane. For a 50 year old starter home with 3 bed 2 bath 1400sqft we are looking at 750K.
Even with putting 20% down, which we intend to do, our mortgage with all other housing expenses included (besides utilities) would be 50% of our take home pay.
Based on a detailed budget I put together on anticipated expenses, we would only be saving $1000 in cash monthly 😬.
That being said, I based all these numbers off our base wages. Fortunately, I am in a field of work where OT is basically unlimited. I will have the opportunity to make an extra $1000net per OT shift. Of course a few of these shifts a month would drastically change our financial situation but I didn't want to rely on them.
I also have a pension through my job which may help reduce the amount of money needed for retirement because alot of our savings are trapped in the house equity.
Am I insane for even considering this a possibility for us?