Since my last post toward the beginning of April, my net worth has actually gone down a bit. How is this possible? Big changes.
We started looking into rental options for when I have to move this summer. With the dog, there isn’t a whole lot of decent stuff out there. I don’t want to move over the state line, and have to deal with all the license and registration and voting changes again, only to change it again in a few years (I’m a bit of a homer, and plan on being in my home state long term, and knew that when we’d buy, we’d buy here). Most anything moderately acceptable to me was over $1000–generally with nothing included. In the past when I’ve paid rent I’ve lived with roommates, and we’ve split the cost of a 2 or 3 bedroom. At most I was paying $675 plus utilities. It’s a big difference to pay another $300 a month yourself, plus not having someone to split the utilities with. I don’t know how anyone successfully pays down student loans while living in an apartment (in this area anyway) by themselves.
Getting a roommate isn’t an option for me, because my boyfriend is moving in with me. He’ll be finishing his masters, so in year 1 I’ll be paying most of the day to day expenses. We’ve talked at length about things, and as soon as he’s working post-graduation, virtually all of his check will be going towards my student loans.
Which leaves us with where we are now. Despite my first mortgage (student loans), we looked into getting a second. We didn’t think we were really seriously looking, and I was getting really frustrated, but then we found The House. All taxes and insurance considered, it should be at most $1,400 a month. That’s a ton of money–but really only $300 a month more than I’d be paying in a rental. And it has a second unit, which we’ll be renting to my mom. We’re planning on setting aside as much of the rent as possible for any house-related emergencies, and not relying on it to pay the mortgage. This means I’ll have to get serious about being frugal, but I think it can be done.
Part of me says that we aren’t ready, and I should get in a better debt position before we jump into the house. But I also know that regardless of whether I’m paying rent or a mortgage over the next year, the amount will be high enough that we won’t make that much debt progress anyway. And while houses come on the market all the time, we really feel that this house is the right one for us. It’s very old, and has a lot of character. It has a cute little second unit that, while maybe not right for everyone, is actually pretty perfect for my mom. It has a fireplace, which we weren’t expecting to find in a two family. The really big thing for me though is the location–less than five miles to the train (my overall commute is going to be cut in half–squeee!), less than a half mile to the local bike path, a short walk from places where we can get ice cream or drinks, and multiple family members within a few miles. I don’t know how many kids we’ll have, but there’s certainly room for one or two so we won’t have to sell or move once we start a family. I’m really very excited and can’t wait to move now.
Long story short: my net worth hasn’t budged, because of a $3,500 house deposit, and $350 home inspection. Closing is scheduled for June.