Re: Looking to Buy my first House, Need some Help/Tips
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Seriously, look into a one-bedroom apartment for a year. Your kid won't need his own room for awhile.
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Isn't this just throwing money out of the window?
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No, it depends on a number of factors. He's out the equity he would have had from paying a mortgage instead of rent. Have you looked at the pay-off schedule for a 30 year mortgage (as an example)? The equity is disgustingly tiny in the first year, especially if he's only putting 5% down!
And that doesn't account for the property taxes, water bill, higher utility bill, etc, etc he'll get from owning.
Also, in lots of markets these days, the rental market is cheaper for the same housing stock than is owning, don't know if that's the case in Galveston. And he'll be able to make a much more informed (+EV) decision about where to buy after he's lived in the city for a year.
No, it's not just throwing money away.
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