Re: About to buy a house
yeah me and my GF are moving into an apartment this weekend and her dad was going on and on and on about how we should buy a house and that we're "throwing money away" by renting. Blah blah blah.
I tried to explain to him that I'm not ready for a house yet, I don't want the responsibility, I don't have a down payment, I don't know where I'd want to live, and me and her aren't even MARRIED yet. lol.
He's like "buy a house--you're building equity". Well I ran the numbers and a $140,000 loan at 7% for 30 years yield about a $950/mo payment (of which only $120 goes to the principal. $830 to interest).
Yeah...nice "equity". We're moving into an apartment for $730/mo. right now which means we're paying $220/mo. less (of which will go to our future equity, as we are saving right now).
not to mention a large downpayment in the future will mean we pay less to the bank (AND if we wait 5 years it means we'll have a 5-year newer house than if we buy today).
This all coming from a guy who just invested thousands of dollars into remodelling his 30-year old home.
I wish I could tell him what I really think. But I just say "I'm not ready for the responsibility yet."
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