I might be broke tomorrow UPDATE
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I might be broke tomorrow UPDATE
| Sun, 07-13-2008 - 8:01pm |
OK girls I did it! I put in the offer. It is a lot of money and the difficulty is that as it stands I would have some savings left but only about 4 months salary and then IRAS and that is with my Dad's help which I am going to take him up on. I feel slightly vulnerable taking help from him. It has been literally 15 years since I asked him for money for anything so it feels weird but he is being very insistent and wants me to have a safety net.
I guess I will have a response to the offer tomorrow at some point although I dont know - sometimes it takes longer? I know she was calling the realtor as I left the house to let him know I had submitted the offer but I dont know that he was around to receive it. Anyhow, if he wants to go up any more I will be dipping into those savings. Not sure how I feel about that but I know it makes me feel shaky.
Luckliy the mortgage is only 500 more than rent and that is actually just fine with us. We have been renting for 3 years in this 2 bedroom in a very expensive part of town so thats why there isnt much difference. It isnt like we are going twice as much which is what I did when I bought my first house after renting a one bedroom for a few years. So we will still be able to save a few thousand at least every month to replenish savings or to help fix up each month. I have thought about that and think we will be fine as long as we are careful. Also I cranked the numbers and I could actually buy and afford the house on my own even if something happened to SYB and I. and I dont even like writing it so you can imagine how it felt to think it through.
The two other houses I saw were nothing to sniff at compared to this one but mostly that is about style. They all need some work I guess and it is clear I am going to paying about the price I am offering to get the space I need in the neighborhood I like along with getting it livable and planning reno down the road. I just loved the period built ins etc in the one I made the offer for. It just made me feel good and I honestly think it reminds me of Paris or Europe and I did live there five years so that makes sense. I also thought today long and hard about the fact that when I bought my second home years ago after the separation/divorce I bought in a lesser neighborhood to save money and it was a new townhome in a community, very plain and simple. The house was safe and solid but it did nothing for me spiritually. And since I work at home I think that is an issue for me. I moved to the city partially because I need more action around me and stimulation. It helps me work and feel good. So I think the house has to have these things about it too and the one I bid on tonight does so that is great.
And I figure if this one doesnt work out, at least I am getting more and more a sense of what I want and need!
So - sorry to drag this on but throw more good wishes my way. I need every single one of them and I have a feeling tomorrow might be a big day over here!
I guess I will have a response to the offer tomorrow at some point although I dont know - sometimes it takes longer? I know she was calling the realtor as I left the house to let him know I had submitted the offer but I dont know that he was around to receive it. Anyhow, if he wants to go up any more I will be dipping into those savings. Not sure how I feel about that but I know it makes me feel shaky.
Luckliy the mortgage is only 500 more than rent and that is actually just fine with us. We have been renting for 3 years in this 2 bedroom in a very expensive part of town so thats why there isnt much difference. It isnt like we are going twice as much which is what I did when I bought my first house after renting a one bedroom for a few years. So we will still be able to save a few thousand at least every month to replenish savings or to help fix up each month. I have thought about that and think we will be fine as long as we are careful. Also I cranked the numbers and I could actually buy and afford the house on my own even if something happened to SYB and I. and I dont even like writing it so you can imagine how it felt to think it through.
The two other houses I saw were nothing to sniff at compared to this one but mostly that is about style. They all need some work I guess and it is clear I am going to paying about the price I am offering to get the space I need in the neighborhood I like along with getting it livable and planning reno down the road. I just loved the period built ins etc in the one I made the offer for. It just made me feel good and I honestly think it reminds me of Paris or Europe and I did live there five years so that makes sense. I also thought today long and hard about the fact that when I bought my second home years ago after the separation/divorce I bought in a lesser neighborhood to save money and it was a new townhome in a community, very plain and simple. The house was safe and solid but it did nothing for me spiritually. And since I work at home I think that is an issue for me. I moved to the city partially because I need more action around me and stimulation. It helps me work and feel good. So I think the house has to have these things about it too and the one I bid on tonight does so that is great.
And I figure if this one doesnt work out, at least I am getting more and more a sense of what I want and need!
So - sorry to drag this on but throw more good wishes my way. I need every single one of them and I have a feeling tomorrow might be a big day over here!



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However you divide up the pie (who pays for what), I just hope you keep your eye on the bottom-line value of the house!
Good point Soonee!
I would never overextend myself for a house payment- that's why I comfortably pay someone else's mortgage LOL! My rent is really low for this area, and I have the full basement of a house, full yard, washer/ dryer access and utilities are included. If I bought a place, all I would be able to look at is a condo apartment in an old building, my mortgage payment ALONE would be twice my rent amount and then adding everything else on top of that- I'll stay where I am for now :)
Soonee- Good point.
Alison- I was interested to hear you are "happily" renting. I'm having real trouble getting my head around the fact I'm renting. Dad always brought us up to believe buying was the thing to do- I bought a unit at 21 & my sister built a house at 20! I have started looking into property settlement, so have been looking around at properties. To buy where I want to (I have always lived close to the city) I'm going to end up with a mortgage more expensive than the rent I'm paying. I'm really unsure what to do but feel very uncomfortable with renting long term. Then If I DO continue to rent how do I invest the money from my settlement? And that means I will lose some of the government benefits I receive (I get rent assistance & cheap medical stuff)...... It's all too hard! I would be interested to hear how you & others have dealt with this.
CL of
~ Aussie & Kiwi Mums ~
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Tracy
My concern now is only that I not spend all of my savings to get in the house. I dont like the idea of having no cash reserves and I have really never lived that way before. The mortgage payment wont change at this point because my loan amount is stopped at a certain number and I know I will be up at that number. Our rate is done and the mortgage payment is calculated from that - its really coming up with the difference between the loan amount and what he wants. We have 50000 in savings that are already going to this - the thought of spending more will leave us living in a way we have never had to which is without a safety net and I am struggling with seeing my Dad as a temporary safety net or just moving on if the owner wont budge!!
We can save anywhere from 3-5 grand a month living as we are now ( very frugally!) and that number wont go down TOO much either so we can build back quickly but what if something happens in the first month? I guess then I call dear old Dad? That is hard for me to swallow. I have been on my own since I was fifteen and I havent really asked for money or needed help like that. I asked him today point blank whether he would and he said of course and sounded find with it - so it is just my head that needs to change or think this through....
Edited 7/16/2008 9:14 pm ET by citylife74
CL of
~ Aussie & Kiwi Mums ~
Email me!
Tracy
Good point - look at the bottom line and don't overpay!! I just love the diversity of expertise we have here on our board.
I was just thinking after reading city's report of looking at the comps and knowing how the market is right now - it must not be easy for buyers or sellers in this market.
City, you are doing good and we are rooting for you - and I hope you do end up getting a good deal!!
I think everyone is watching this thread with fingers crossed - I know I keep checking in to see how City is doing!!
Lol- well where I live housing is expensive, but not the highest in the area (I'm in BC, Canada).
A two bedroom apartment in a building here is typically rents starting at $950 a month plus utilities. If you get a suite in a house you're looking at more. My rent is lower than that and I have utilities included.
A mortgage for the minimum mortgage I would need for a place here is about $1500 a month- almost double my rent. And that doesn't take in taxes or repairs or utilities. At least here if my fridge dies, I call my landlady and she replaces it- I don't have to come up with another $500 for a used fridge.
As I'm paying a monthly amount for buying the company I own- my money is very tight. I would LOVE to say, like City, that I was able to save 3-5 grand a month- but sadly I don't even MAKE that kind of money! I am paycheque to paycheque and no savings at all for now- but I'm working hard and that will change over time.
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