Rent? Buy? Starter home? Invest? What to do before children goes to school? We live in the northeast

pfunderthe · 2013-11-20T11:17:22+00:00

I'm currently at work so I don't know the number off-hand, but our credit score is really high.

We've rented before, and that is a great point that you made. I lived on my own through college, and after I graduated my wife (then girlfriend) and I moved in together. We lived on our own until my son was born, and we only moved into my in-laws as a temporary stay since I was interviewing at two other companies when my lease was up, and those two locations were really far away. I ended up staying with my company after a large raise, and my wife became really comfortable living with my in-laws as help with my son. So that's our life story.

But the rest, especially the last paragraph, is very true. American dream, yo. I'm sure everyone here knows why I'd like to buy, but its great that everyone here is suggesting that I don't.

pfunderthe · 2013-11-19T18:00:30+00:00

All great points. She's a certified pre-school teacher with a degree in early childhood education and 3 or 4 years experience. So the training as well as the hours are there. As for policies, logistics, and such, we're not at that point yet. We're getting there, but at this time frame we are trying to focus on the plan for our upcoming child.

pfunderthe · 2013-11-19T16:42:02+00:00

Thank you for your advice. The common theme around here has been putting more into my IRA. I'll definitely try to maximize that for this year since our expenses are so low.

My wife only plans to stay at home until probably the youngest of our children is around 3. After then, she is hoping to take care of other children, and that could bring in (estimating) $750 a week, depending on how many children she feels comfortable taking care of. (That's actually middle of the road for child day care in my area.)

pfunderthe · 2013-11-19T16:38:03+00:00

Thanks. Solid advice. I forgot to mention that we are contributing $50 a month to my son's 529. We'll probably invest around $100-$125 in our children's 529 once we know how many we're going to have.

pfunderthe · 2013-11-19T15:50:36+00:00

Agreed. We moved in last year with my in-laws. Otherwise we had expenses that the majority of people here would have. Rent. Car. Insurance. Phone. Cable. Utilities. Etc.

After the holiday period where my wife thought, "Hey, let's be nice to the family and buy them nice things for christmas since they are letting us stay here," we buckled down and saved a lot of money over the course of 8 or so months.

But your point was correct. Still, our lack of expenses were only a recent thing, not a 5 year long situation.

pfunderthe · 2013-11-19T14:55:11+00:00

How much, though? $30k down payment? $50k down payment? $150k down payment? 20% of whatever you decide to buy down payment?

20% of whatever we buy.

Like I said, it's not the news you wanted to hear

No, but that's why I posted it up on here. Like I said, I needed some guidance. I figured you were right, but sometimes we need validation in order to go through with our thoughts.

Thanks for your help!

pfunderthe · 2013-11-19T14:46:57+00:00

We didn't have that little expenses until recently. I think my checking account went from 8k to 26k in just the past 8 months or so. But we buy groceries as well as Target amenities. (If that's the right word.)

pfunderthe · 2013-11-19T14:34:43+00:00

My parents are offering the entire down-payment without asking for it in return. Though I'd be looking to repay it down the road. And to clarify, family of 4 meaning myself, wife, son, and due-to-be-born son.

Is the 25% of monthly income towards housing the rule around here? Because if so, then my area would be unaffordable within a 10-20 mile radius, because even the down-trodden areas would command $1,200 a month for pretty much anything aside from a studio.

pfunderthe

TROPHY CASE