In the previous post, I concluded that I would buy a house at the $125,000 price point.
In the previous post, I said my income table was idealized. Ideally, I could find and afford a house between $63,000 and $80.000, but finding a house is more than setting a price.
In the case of $63,000, I can afford a fixer upper, but the repair work needed would double the cost of the house.
I could go for a condo, but paying HOA fees on top of a mortgage is a deal breaker.
A move-in ready house in my area would run about $125,000. This seem to line up with my earlier note on fixer-uppers, so this is the number I'm looking at going forward.
The next question is: how much home can I afford?
It's good advice to only buy a house if you plan on living in it for at least five years.
Since I live in a high property tax state, I'm looking at three times my income for a house price.
So my price will be triple my five-year average income.
| If I buy in... | 2020 | 2021 |
|---|---|---|
| 2020 | ---------- | $43,356.94 |
| 2019 | $32,408.00 | $32,408.00 |
| 2018 | $24,224.00 | $24,224.00 |
| 2017 | $17,349.00 | $17,349.00 |
| 2016 | $16,014.00 | $16,014.00 |
| 2015 | $14,362.00 | ---------- |
| Average | $20,871.40 | $26,670.39 |
| Home Price | $62,614.20 | $80,010.87 |
| 20% Down Payment | $12,522.84 | $16,002.17 |
I think it's most important to have a clear "why" for buying a house.
The best reason I have is my want for independence. Even as often as I talk smack about college, it did give me that taste of personal freedom.
Also, I turned 30 this year. There are many personal milestones (e.g. getting married, having children) I would feel uncomfortable reaching in either parent's home.
Hey, everybody! My name is Kyle, and I'm ready to go head-first into an exciting new phase of adult life.
Without further ado, welcome to...
THE HOUSE OF KYLE!!!
Well, that's where a picture of my house would be, if I had one!
Anyways, this blog (and eventual web comic) will be a record of my road to buying my first home. Hopefully it will inspire you!
