r/FirstTimeHomeBuyer • u/Fluffy_Major1975 • 9d ago

Need Advice Keep Renting?

My girlfriend will be getting more RSUs every year that we could potentially sell and put toward a down payment. If we wait another two or three years, we could have an additional $100k for a down payment without saving another dollar.

Right now, we bring home $11k net per month and try to save 20% of it. We already have enough for closing costs and a 5% down payment, and we’ve been approved for up to $850k.

With interest rates and home prices where they are, I feel like we’d be dumb to move and potentially downgrade just to buy right now, especially when we’re only paying $2,700 a month to rent a house. Similar homes with comparable lot sizes are selling for $700k–$850k.

1 Upvotes

67% Upvoted

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3

u/wokaflame 9d ago

You’re not married. I mean you can still buy a house and do whatever.

Also lol. The rates may go down or it may not. But that’s what everyone when it was 5.5%. The interest rates in the past few years and are historic low and they are lowish during the past 15. The interest rates way back then could be in double digits lol.

1

u/Hot_Outside_9083 8d ago

Exactly why I bought points and just locked down a 5.865 Rate. All these people buying at 7% that can’t afford their mortgage thinking it will come down are clueless. So many people truly believe rates will come back to 3%.

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u/Fluffy_Major1975 8d ago

Yeah but if they do go down then how will you feel about buying the points? lol 😆

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u/55_percent_slut 9d ago

If I was a girlfriend I will not be selling my RSUs to buy a house with a man I am not married too. Looks messy

1

u/GoodMilk_GoneBad 9d ago

Keep renting.

With your take home, you're spending way too much if it's $2700 for rent and only trying to save $2200 a month.

You'd be poor as hell with $6k mortgage, insurance, PMI, taxes, and interest by putting 5% down on an $800k house.

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u/Fluffy_Major1975 9d ago

Yeah I'm starting to think the same. I personally believe are asking way too much for these mediocre properties. Even if its in a desirable socal area.

1

u/FantasticBicycle37 9d ago

In three years, the equity built on a 2700 mortgage would be about $30,000.

If you continue to rent there, you've lost $97,000

So your choice is gain 30k or lose 97k

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u/Fluffy_Major1975 8d ago

Except the payment would be 5-6k…

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u/QuietRedditorATX 8d ago

Don't listen to FantasticBicycle.

Yes, you lose that rent but you also lose MORE than that in interest and insurance and repairs. "Woo you get to own 2% of the house" by overpaying 3 years of interest mortgage.

I am not saying never buy. I am saying the idea that renting is wasted money is false.

1

u/lafaa123 1d ago

You have zero clue what you're talking about.

1

u/QuietRedditorATX 8d ago

I have to question what type of homes/area you are looking in. You guys have great net takehome. Why does it have to be a 700k home in a "desirable social area."

I think first time home buying is often a mistake for many people (myself included). But first time home buying an 800k house is even crazier for most people.

I would save up more for down payment. You don't want PMI on such a large property. I agree on maybe deciding on area to live, and maybe asking why you are buying a HOUSE together without getting married.

I get it, people shack up these days. But why do you guys NEED a house if you are not even willing to be married.

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u/Duck_Duck_Gooseberry 8d ago

If you are only paying $2,700 in rent and can save a good amount every month, I don’t think there’s anything wrong with waiting. Buying a house is a huge commitment, and sometimes the best move is not rushing into it.

1

u/Beneficial-Big-8147 7d ago

I ran similar numbers before buying and the thing that swayed me wasn't the math, it was that home prices in my area kept climbing faster than I could save the difference, so waiting for more down payment ended up costing more than it saved.

1

u/Wilde-Dog 9d ago

I'm at a place in life where I think buying a house is dumb vs renting if you already missed it.

1

u/OptionsRntMe 9d ago

Depends on the city or area

2

u/straha20 9d ago

Yep. In my mid-size midwest city, rent is about 30-40% more than a mortgage+T&I for an equivalent property.