Wow, buyer’s remorse hit me big-time last night, and I haven’t even had the home inspection yet. (Next Thursday.)
I was making a budget and, well, I don’t think I plugged the numbers in exactly right, because I scared the hell out of myself and thought I had no money left over after paying the bills. Today, I’ve come to realize that I probably don’t spend $400 a month on food (I’m single and I cook most of my meals), even factoring in the kosher requirements. And not every month will have a gas bill like last month. In fact, I save money on every Monday holiday, because I don’t have to drive up to NorVA if there’s no staff meeting. There are a few Monday holidays coming up soon, thankfully.
I was also thinking it’s time to sell my Jeep. I love it, but I bought it when gas was a buck and a quarter a gallon. Or maybe even less. For the twenty years prior, I had Ford Escorts and a Datsun 310, all cars that got about 25/30 mpg. Now, instead of dumping my Jeep in a panic, I think I’m going to wait until I’m in my new home and the new budget kicks in. If I have to, my plan is to possibly trade in the Jeep for a car with better mileage, but one that still makes me feel safe driving on the highway every week, like a Rav4. Or maybe buy a cheap used high-mileage vehicle for the trips up to NorVA and keep my Jeep for tooling around Richmond. I really do love my Jeep. I also like the sturdiness factor. It’s pretty solid, and if I do (God forbid) get into a crash, it will protect me far better than one of those little 40 mpg tin cans.
Anyway, there are a ton of things I can do to cut costs. Now that I have more storage space, I can buy those bulk items from Costco. I can make a regular pasta night (I tend to be more carnivorous and like meat for dinner most nights). I already usually bring lunch to work on Mondays instead of ordering out. There are a ton of things you can do to cut costs. There’s also more income: I might finally get ads for my weblog, though I’ve been reluctant to go that way so far. I’m thinking I might get back into freelance proofreading. That’s pretty easy work that I can do at home, and the pay is decent. I wonder if I still have contacts at Tor.
The other thing I realized is that everyone cuts costs for their first home. Most of them do it with two incomes, but hey—I’ve been on my own for a long time now. I think I can handle this, too.
Five weeks left. Only five more weeks of annoying noise, kids who ride their bikes in the middle of the street and get annoyed with you when you beep at them to move over. Five more weeks of maintenance workers ignoring your calls. Five more weeks of hiding my laptop every time I go out for fear of a break-in while I’m gone.
I can’t wait.
Personally, I wouldn’t buy a home yet since the home market isn’t supposed to hit bottom until 2009, or even 2010. I think home prices will stabilize for a while before they go up. So unless you can buy a house real cheap (on auction from a bank, say), I wouldn’t buy now. Otherwise, you’ll end up with an upended mortgage where you owe more than the house is worth. Then if you sell it, it’s a short sale.
I disagree, with thinking like that it never would be a good time to buy. The market around here in the greater Richmond metro area was never particularly hyperactive. Housing was experienced a minor correction (we’re talking a thousand). An upended mortgage is very unlikely. The basic rule of thumb of staying at least three years to offset the closing costs still holds.
I’ll assume the Jeep is paid for; in which case, it is unlikely you could save enough by getting a more economical car to make a monthly car payment.
Unless you have the cash to pay for the more economical car, it’s likely not worth it.
I developed an excel spreadsheet that illustrates the cost/benefit, which I will email you if you wish.
It’s in no way sexy, but I’ve got a ’99 escort that I only paid $3500 for 4 years ago, and they’re easily had for that price and less now. It’s a Mazda 323 powertrain, and can easily do 200,000 miles. With manual 5-speed it’ll do mid-upper 20s in the city and 30+ mpg on the highway. Has dual front airbags. And the 1.6 liter 5-speed is actually zippy to drive. If you have a trustworthy mechanic and any luck at all, it’s a great bargain/strategy. Check Consumer Reports best used car buys. I think the 97 thru 2000 escorts all are especially trustworthy. Just a thought. No big car note necessary for this kind of strategy.
Jack
Mark, when you find the home that makes you go, “Wow, I want to live in THIS place” the second you walk in, you buy it.
Richmond prices aren’t going to drop much more, particularly in the condo type and area I want to live.
And, well, read my post. NFW am I staying in this craphole for three more years. And it’s pointless to move to another apartment and pay someone else rent. Why should I?
And oh yeah—a mortgage lender whose father lives in the complex I want to buy told me I got a great price on the condo. I think I’ll take his word for it, as he lives—and lends—in the area. And he has no dog in this fight, because I’m not using him.
Jack, I had an Escort. Two of them, actually. They’re sturdier than they look, too.
But again, I’m going to settle into the new home first, see how the new budget shakes out, and go from there.
Tom, yes, it’s paid for. I was thinking of trading it in for a VERY inexpensive car that gets better gas mileage and paying the difference. But again, I’m going to wait a bit.
Sounds really exiting. I’m happy for you! Ford Foci are pretty good. I have a 9 year old Honda and and a 14 year old Chevy Blazer that still runs great (It oughta since we’ve replaced every bloody part in the thing). We’re thinking of getting a new truck, but we’ll probably keep the Blazer just to haul mulch and stuff. I don’t want to give her up!
“When you find the home that makes you go, ‘Wow, I want to live in THIS place’ the second you walk in, you buy it.”
It really is that simple. I did that myself. And yes, I fretted for days before the closing that I’d gotten in over my head, or worse.
I’m approaching the fifth anniversary here at Surlywood, and I’m still persuaded that it was the right move. I think things will work out just as well for you.
If the condo requires some fixing up (and they all do) you can save money by doing some things yourself. I’ll never understand why people pay someone to paint their houses – especially the interior.
And the jeep may come in handy during the fix-up/move-in stage. Hang on to it – not so good to make so many major changes all at once.
Can we interest you in at least retiring to Israel?