Assuming you're doing a 30 year fixed mortgage your mortgage plus your property taxes and insurance will maybe be around $800/mo or so. So after 2 years you'll have $19,200 in those payments plus your down payment and say you want to sell for whatever reason. If you pay a realtor to sell you pay a x% to the realtor... I don't think you'll see any of that back and chances are you'll get a check for less than your down payment back when you sell. I'm not saying buying a house is bad and it sounds like you bought in an in demand area but in my opinion buying a house is a major risk... especially since your $20k or so in payments probably only paid your note down a couple grand in those first two years. That doesn't matter as you'll start paying more towards principle as time goes on but buying a house in my opinion is really a bet on weather wall street will stick or not... and I'm sure it will... even if there's another crash. Just my $.02. I remember my first mortgage payment and I'm like what... $50 towards principle and $xxxx to interest! Now lending to people who buy houses who have good credit and buy into the system... that's low risk even with this super low interest rates on mortgages... because they're not really that low. How much of your first years mortgage payments will go to principle and how much will go to interest. Buying a house is a long term play. You bought good it sounds like and chances are if you get in trouble financially or the market crashes you can easily rent it out and possibly be cash flow positive.
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Originally Posted by rb25s13vert
Im 34y/o and closing on my first house on the 8th of Oct. the way i look at it is this. To me buying a house is in essence like a savings account, your basically paying yourself, only you cant touch the money untill you sell your house. houses more so than cars are an investment. we all know this. i bought a 1900sf 3bd/2bt house for 156k it has an additional 600sf unfinshed attic that i plan on making into a kind of mother in law suite this will caost me around 3-5k as im handy and will do most of the work myself. i figure it should raise the value substantially. not to mention the area is typically going up about 2% annually anyways. and it sits in a golf community with the community pool about one block away. anyways, if your renting your basically just throwing money in the trash. thats my outlook on it.
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