My SO and I have a child and want to live in the best school
district here, because all the others are pretty bad to the point
its gone viral on Reddit for how bad its schools and bullying
issues are. I grew up here so I know even more.
However, like many homes in really good school districts, they
are the most expensive in the entire area. These homes average
500k. But there is a home that has been on the market for a few
weeks that we took a look at and really really like. It’s 320k and
walking distance to both our jobs.
Thing is, I’m only 2 years out of college and am 28, so I have
some savings, but not a ton. I’ve also been maxing individual 401k
which I won’t use towards a home. Here are the numbers:
Salary: 101k combined
Savings: 10k (2k/month average)
Roth IRA contributions I can pull: 6k
Been debt free for almost a year
We were thinking of making an offer on the home that includes
fees. And we’d be eligible for a 3% down payment loan. I know
that’s not a lot and PMI is a thing, but I feel like this will be
the last time a home this close to our jobs and in the school
district we want will be available at this price.
Also, our current rent is 1550 and is going to go up to 1700+
when the lease is up in September. If we leave now, we’d pay 1500
to break the lease and likely lose our 1500 deposit with that.
Is this a sound decision? Buying a home is such a stressful idea
because we are really picky on the location and I want to continue
pursuing FIRE. I feel like since my savings rate equals the likely
monthly payment, including taxes insurance, we would be in the
clear. But I usually scare myself away from anything that comes off
like FOMO. So… I don’t know.