There is a house nearby that has gone up for sale. From the mls pictures, I like it a lot. If I was in the market, I'd for sure look at it. It is listed for $60000 less than ours was listed at 3 years ago. It's also smaller but I've changed a lot in the last 3 years and the smaller size makes sense now.
I emailed the link to D and asked him if he'd be interested in moving. The answer was no. He has moved enough time in his life that he would be happy never moving again.
Then I started to think about housing in terms of cost per person occupying. When I divided our house purchase price by 2, the number that came up was less than what it would cost if we were to be buying homes separately in today's market.
Sure, I can find a house/apartment/town home/condo that costs half of what our house cost but would I want to live in the area where these homes would be found? So I concluded that we are doing OK with respect to cost per person housing.
Now, let's say our house cost $700000 and the 2 way split would come to $350000. I'm pretty sure I would think long and hard about taking on a solo mortgage for that amount. I know D would as well. Even if we could afford it, I'm thinking of how that level of debt would impact cash flow and lifestyle.
Following this logic a bit further, wouldn't it be prudent for couples to think about this when entering the housing market? Or better yet, spend double what the lowest earner can afford?
We bought a lot less than the bank thought we could "afford", and a lower percentage of our income than the experts say you should spend on housing. Our house is smaller and simpler than many of our friends/colleagues, but we could swing the similarly small payment if one of us couldn't work, a very real possibility over the course of our lifetimes (working with injured people really changes your perspectives I think!)
ReplyDeleteHi psychsarah!
ReplyDeleteI feel you have been really really wise in that decision. We did too and I would go even lower now. More security and peace of mind that way.
Definitly agree with you about the insights you gain working with injured people. Minor or major disability can happen to anyone, when you least expect it.