Purchasing a home is an emotional roller coaster I did not know I was signing up for. Pictures are deceptive. Realtors are worse than pot lot used car salesmen from the 70s. Literally everything in my price range is tiny or horrifically abused. And then, if I find one I like I get snaked by some cash-offer from a flipper. It’s been a legitimate nightmare.
That being said, I’ve found a home, got it under contract, and I think we’re going to be able to close on the 31st. It’s a cute little place I’d previously put an offer on… why previously?
So I put money down on this 3 bedroom, 1.5 bath tri-level, 1500 sq ft, and then we get to the inspection and I’m told the roof and the sewer are shot. So we cancelled the transaction, because I’m not a god damn fool. Sewer work is insanely expensive and I’m not about to get involved with that. Well, the owner brought in another inspector and the sewer is apparently fine. My inspector was just a moron. Who knew? Not me. He seemed knowledgeable and he’s certified. But whatever. I watched the videos and the sewer is, in fact, fine. The owner agreed to replace the roof and gutters by closing, and we put the contract back together.
It’s a cute little place. Addi gets her own half bath, which I think she’ll like. We’re going to put a 3/4 bath in the sub-level, where Chris and I will have our master bedroom. I get my own room for an office/studio/alone time place. The inside is really cute, and the outside is okay. The place needs a good coat of paint, I’m gonna need a new fence for sure, and I have some other work outside to do because of how it sits, but in general it’s a good house, and I hope we can make it a home.
Both Chris and I are worried about how we’re going to be together. I’m worried my crazy will act up and he’ll freak out when I freak out. He’s worried I’ll get mad when his depression acts up and he can’t DO anything because it’s all overwhelming… but we’ve been doing a week on and off since Addi started going to her mom’s for a week at a time, and we’ve been pretty good at dealing with each other. When I have an office to retreat to and we’re not living out of my house in boxes, I think it’ll be even better. Yesterday I had a particularly bad day, and even though he’s staying with me and our space in the house is limited, Chris asked me if I needed space. I don’t know what he’d have done if I said yes, but he had some kind of plan lined up. Lol. So… I think it’s going to be okay.
My biggest worry has been Addi and how we will work together. I don’t fancy myself “good with kids,” but lots of other people think I’m pretty good. I just treat them like I would other people, which isn’t how most adults treat kids. I think it’s going to be okay, though. I loaded her up and took her out to Bren & Shaunna’s to play with Michael on Saturday, and she was a great kid for me. Ate lunch and everything. We had a good time. When I dropped her back off with her grandparents, I asked for a hug, like always, but this time she said yes and I got one. Then, as I was leaving, I got a second one. It’s been almost a YEAR, but she finally admits to liking me enough to hug me. So that’s good. That makes me feel so much better about everything. I also told Chris how we’re going to handle meal times, because I really don’t have the patience for the way it’s being handled currently. Imma teach her how to make quesadillas and wraps, as well as keep Life cereal on hand. She can eat what we make, she can eat cereal, she can make her own tortilla and microwave based meal, or she can go to her room for dinner time. I don’t care which, but I feel like it’s important to empower her to make the decision to eat, even if it’s not what I made. So she’ll have options. Chris thinks it’s a good idea. I think it’s a good option for a kid who’s been spoiled. It ends the food war with a treaty, but it also acknowledges that she’s a person with thoughts, and that I value those thoughts. Also, when she figures out I don’t keep snack food in the house, she’s gonna get hungry… currently she raids the kitchen at night when everyone is asleep… her grandparents keep a LOT of food in the house… I don’t, because of my binging habit. So… adventures.
Addi and Michael were born one day apart, so since Michael’s friends are all gone for the summer, if I get the house in decent shape we decided to have a joint party in the backyard. BBQ, maybe a bounce house… invite Michael’s friends and I think I’ll ask Chris to invite Isis and Seth (Addi’s mom’s bf’s kids). Just something small, but fun for the kids. Hopefully we’ll have the house in order by then.
Well, I guess that’s all for me. It’s been rough, but I think it’s going to be okay.
Teh Prophet Lushpuppy 
The example in this post is very simplistic. Once you take into account mortgage payments, insurance, property taxes, and maintenance, it’s easy to figure out you’ll have more money at the end of the month if you rent rather than buy. What you do with that money is the real question.
Assuming you’re renting and saving some money – if you invested $20k on an S&P 500 ETF in January 2009 and then put another $1000 every month into the same ETF, right now you’d be sitting on around $300k – more than doubling all the money you put in. In short, you invested $144k and now you have $300k, minus capital gains tax and whatnot.
By contrast, to those $308k you made selling your house, you need to subtract 10 years worth of interest payments, insurance, property tax, and maintenance costs – all the clogged pipes, broken appliances, wall re-paintings, and maybe even replacing the roof. I don’t know exactly how much that would leave you with, but I’m sure it’s a very significant dent…sell my home austin
What example are we talking about here? Cuz I don’t think I’ve put an example of anything in this post… but let’s investigate.
I’m in Colorado. The area I’m trying to buy a home in is not a high class area, but no one gets shot, which is an improvement over about 6 minutes north. A two bedroom apartment that isn’t in the “hood” here starts at $1390 before renters insurance. Also, I have 4 cats and a dog, and the bf is bringing a dog, so even if I wanted to rent, I couldn’t with even the most luxurious of pet deposits. But let’s say I could.
So… most people I know my age are making $19/hr. That’s $3040 gross pay a month. Federal takes 8.84%, State is 3.82%, and Local is 0.07%, FICA 7.65%… That leaves you with $2421 for the month before deductions for health insurance, medical, dental, 401K, life insurance… whatever. If you take out my current pre and post tax deducts, you end up at $2266. So, if you’re renting a 2 bedroom, you’re now down to $876. Utilities are rarely included in rent out here, so Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft Apartment is $76 (numbeo), and no one lives without internet so that’s another $60ish… so you’re down to $740. Then there’s gas for work… we’ll assume a tank a week, which is saying you work close to home in Colorado traffic. That’s roughly $37 for a 14 gallon car. Then you need renter’s insurance, at $22 a month if you’re lucky enough to get a low enough rate. Then there’s food. My household will be 2 adults and 1 small child under 10… that’s 175 for the kid and roughly 250 per adult if you’re moderately thrifty but not making everyone eat ramen. So that leaves… $6 for savings, dog expenses, and anything else that pops up.
That’s without childcare, copays, or anything else. Pretty strict budget. That didn’t calculate moving costs, or the fact that annually the prices keep rising, while home owners might have to throw money into maintenance, their mortgage payment remains static. I’ve lived in the same home for 13 years and always paid less in living expense than my friends who have rented. That’s factoring in my maintenance costs and the random large expenses that pop up when you own a home, like roof replacement. Most of those renters are ending up having to get roommates, even in two-income households, or move in with parents, rent rooms instead of apartments, etc. And none of them are able to have pets.
When considering if you want to lease or buy, you have to consider ALL the variables, which varies by economic location. If I were to want to live in what anyone would consider a “nice” neighborhood… well, I don’t make $19/hr (thankfully I make more) but I still can’t afford to even dream about it.
I’m glad you explained that real estate agents need to be confident so they can give assurance to their clients. My sister and her husband both work full time, so they want to hire a real estate agent to help them find their dream home soon. I’ll pass along this info so they know what qualities to look for when evaluating potential real estate agents to hire!