I loathe and despise my upstairs neighbours. (Do not ask me why I use the UK spelling for neighbours. I have no idea, but it’s something I’ve always done without thinking. It’s probably the same part of my brain that says “Bahhston” instead of “Boston”, and ”jahb” instead of “job,” despite being born and raised in Southern California. I’m a mess.) It’s not just because they’re loud, or because I’m certain they stole my phone last year. It’s that they’re just plain disrespectful of other people. They thunder up and down the stairs at all hours of the day and night. We’re not talking just 8am or 10pm, we’re talking 3 or 4 or even 5 in the morning. They vacuum the house at around 4am. They routinely have loud parties until the middle of the night, paying no attention to the warnings from apartment security or even the city police asking them to keep the noise level down. They NEVER say excuse me when they smash into you going up or down the stairs in front of the building. Either you get out of their way, or you get pushed. That’s just how it is. They’re rude and inconsiderate, and they make me not want to be home.
When Jason and I decided to get divorced, I toyed with the idea of moving into a slightly smaller apartment and saving some money. But the pros of staying where I am vastly outweighed the cons. Yeah, my neighbours suck, and I pay a lot more in rent than I could if I moved. But, I live 9 miles from work, right in the center of all my friends and family, and the hundred or two I’d save in rent would be quickly used up in the extra gas I’d use to get to work if I moved farther. So I decided to sign my lease for another year. And now, before my original lease has even expired, I’m regretting it.
I want a house. I’ve wanted one for a very long time. I want a yard for Mia to run in. I want the ability to have walls of color, rather than the plain white of apartment living. I want the silence that comes with no one living above me. I even want the stress of doing my own repairs and not having a maintenance staff to do them for me. I want to have kids, sooner rather than later, and I want a comfortable home for them to grow up in. If I bought a house right now, I’d pay about the same (or even less) as I pay for my rent. It seems like a no brainer, right? Why pay the same for rent as I could for a house? Well, for one, I have zero down payment. The savings I had went to legal fees and reducing the debt I got saddled with in the divorce. I know there are financing programs available for people with no down payment, but it would be SO much easier if I had one. Sadly, I don’t see that happening any time soon. However, with the way the housing market is right now, I don’t want to wait a year for my lease to be up before I buy a house. Heck, if I’m being honest, I don’t want to wait a month before buying a house. It’s something I was quietly researching before Jason and I officially decided we were through (since I knew it was just a matter of time), and now I have (virtually) nothing stopping me from doing it.
Sunday night on the way home from the river, Donald and I stopped by his sister’s house, and it was all I could do to keep my jaw from shattering on the newly poured concrete. It’s massive. Intimidatingly so. And the view is incredible. My apartment would fit in their pool. I’m not even kidding. I spent most of the rest of the way home trying not to cry (or at least trying not to let him see me crying) because I know I’ll never be able to afford that kind of house. I was so overcome with irrational jealousy, it was unbelievable. But the more I thought about it, the more I came to realize that I don’t want a house that big. Yes, it’s gorgeous and the view is phenomenal, and if someone handed it to me mortgage free, I’d snatch it up in a heartbeat. But no house that I’ve ever dreamed of, sketched out, or even drawn in CAD has ever been that big. I want a house that feels cozy, but has enough room for all the people and furniture in it. I want a house that looks lived in, not one out of Architectural Digest. I don’t need 4000 square feet of space, and would be perfectly comfortable with 1500.
I know they always say the grass is always greener on the other side, and maybe that’s true. Maybe I’ll hate owning a home and having to do my own repairs. Maybe I’ll have crappy next door neighbours who throw loud parties until the wee hours of the morning. But I’m really ready to risk it.
If I were you I’d start researching some of the better “no money down” financing options. There are still some good ones out there – ones that don’t charge ridiculous rates or surprise you with some huge balloon payment a few years down the road. As you said, you’d be paying the same for an apartment, so why not start building some equity in a house. This is of course as long as you’re sure you won’t move for at least 3 (or is it 5? it’s some magical number) and you could be approved for a good mortgage rate.
I’m with you on home sizes. Our house is actually too big for me. I feel like I can’t complain, not even on my own blog, because seriously – who complains out their house being too big? But part of me misses apartment living. I loved the coziness and efficiency of it. I’d love a 1500-2000 sq. ft. house. But I know that as we add more kids the house will feel more full and JP and I have said that even if I love the firm and make partner and someday bring home a 7 figure salary, we’d never buy a bigger house. Vacation home in Colorado, nice car, horse ranch in the hill country – maybe, but I have absolutely no desire for a bigger home than we need.
Good luck on your foray into home ownership. It’s exciting!
Having a house has its advantages but it is actually quite a bit more expensive than renting. You have to look at additional expenses like PMI, insurance, property taxes, homeowners association fees, yard equipment, pool maintence if you have one, higher utility bills, etc. Don’t even get me started on yard work and home repairs. We spent $800+ dollars on replacing our hot water heater a few months ago, $400.00 on the A/C last fall, $75.00 on the garbage disposal, etc. A new house would probably be better but ours was only 9 years old when we bought it. I have a feeling the house prices are going to keep dropping too. But you have to do what works for you. Breaking a lease isn’t all that expensive or you could try subletting if you get anxious to get into a house.
Hate to come in on the negative side, but contrary to an earlier comment, 100% financing is going to be very difficult to come by for a while, especially for a first time home buyer. 100% and 80/20s are a big factor in what caused the mortgage meltdown, right up there with stated income. Even prime lenders are too nervous now to give out 100%. You’re looking at at least 5% down if you have amazing credit, and at least 20% if you don’t.
The upside (for you) is that we still haven’t hit the bottom, so you still have time to save up. Our house is worth $100k less than what it appraised for less than a year ago, and still dropping =(