What is your opinion of our financial future?

A

alexandra l

New member
My husband and I recently got married he is in the navy seals and I just graduated college with a masters in communications. We make just over $70,000/year. We are moving to san diego and are thinking about using the military great first time home buyers assistance loan to purchase a condo under $100,000 instead of paying around $1,000/month in rent... BUT we have a combined debt of $100,000 in personal/student loans (failed business/school) we have started paying off our debt like crazy and living very frugally (which actually isn't bad!) this was my plan and give me your opinion: do you think it wise to purchase a condo if mortgage payments would be in the $600/month range ... Throwing all monthly income (besides housing cost and bare minimum to get by) so about $5,000/month for two years to get the loan down... Then tackle the home loan and be out of debt in 5 years and own our own place. This may involve working an extra job on my part or getting a higher paying job when I move but I'm ok with that. (This also does not include my husbands signing bonus of around $30,000 from the navy) opinions, ideas, suggestions?
 
Dear Alexandra,

Buying a real estate property is always a wise move. In the long run, you will build equity. It can also be a good tax shelter. As long as you are not buying an over priced property. If you have extra cash laying around, invest it instead as down payment. The potential return can help in mortgage payment and your other personal loan payments. Look for a property that has built in equity on it like foreclosures or short sale properties. After a year or two, you can get equity loan to consolidate all your personal loans. This equity loan become tax deductible and you might get a better tax refund every year that you can applied to the capital of your loans. Invest before buying property to be sure that interest alone of your investment can take care the mortgage payments. Your family will grow and you need to be around for your family. God Bless.
 
You and your husband should find out what resources are available to you since you are a military family. Do you receive a housing allowance?How long are you going to be stationed in San Diego? It might take a while for you to find a job. It sounds like you have a lot of debt you need to take care of before you try to purchase a home. You might find the web site listed below helpful.
 
Back
Top