HappyJaguar

HappyJaguar t1_jadifl9 wrote

I wouldn't consider a new construction a reason for it not to need fixes. If you get a fresh lemon, it's still a lemon. I think this is an option for you, but might result in it being your main financial commitment for a long time. If interest rates keep going up there's a decent chance you go underwater while still being unable to move for a better deal.

Or it might work out great.

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HappyJaguar t1_jadc1w2 wrote

Well, if you've got to move out anyway, I'd look at this option along with whatever other options you have in the area. Definitely start on this now before getting forced to move out as buying a house can take months.

Assuming you're single and putting some money into retirement, I'd guess your take home is ~55-65k, so this would be somewhere around 40% of that. I'd check your accounts to see if you're currently saving >$1000 in cash, and see if you can afford to make several $1000+ fixes to the townhouse and still have an emergency fund after you make the $80k down payment.

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HappyJaguar t1_jad6939 wrote

Something I feel is poorly understood is the rate of doubling at different percentage growth rates and real vs. nominal growth. 3% will double in ~24 years, 7% in ~10 years, 10% in 7 years, etc. My mother was so happy to lock in a 3% lifetime annuity since it was "guaranteed", while we had 3.8% inflation average over the last 100 years - it still hurts.

I'd also recommend going over what an amortization schedule schedule is specifically in regards to a mortgage, to see the total cost of a loan vs. just the principal.

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