Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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@rowshkex wrote:

$500-600/month extra is a lot of money for us where we stand. We’re aiming at a house probably higher up than most people would in our situation since our income will change drastically after a few years, not to mention the potential for kids.

I don’t want to sound preachy, but don’t underestimate how much having kids will add to your future expenses. For some reason, Minnesota has some of the most expensive child care in the nation. If you have 2 kids in full-time daycare, it’s almost like having a second mortgage payment. Suddenly that mortgage payment you used to be able to comfortably afford doesn’t look so affordable anymore.

I would also be conservative in your future income potential. I don’t know what you are planning on doing for a living, but it’s been my observation that people (especially younger folks) tend to overestimate how much they will be making right out of college. Unless you’ll be a doctor, engineer, or some other highly compensated profession, you probably won’t be making as much money right out of college as you thought you would.

It’s always a good idea to buy less than you can afford. You can always upgrade in the future as your needs and income change. It’s much harder to downgrade, especially if the housing market takes another nose dive. As someone who bought a house in 2006, at what turned out to be the peak of the market, I can speak from experience. We were fortunate to get out of an underwater mortgage relatively unscathed, but those were a scary few years.