Reply to How much savings/income do we need to consider buying?

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[quote=Anonymous]We are in a very similar situation. Expecting in February, HHI is 98K and we've been saving for a downpayment. By the time the baby comes we'll have about 30K in our house fund in addition to emergency savings. Also have retirement at 13 and 12 percent (that's with matching contributions). We've recently realized that we will have to rent for another year or two while we deal with daycare costs (which may take some dipping into our house fund) and figure out where we even want to live.

OP something you said stood out to me--that you've noticed that most people who post on here own there own home. That's true and the more I read the more I sometimes start to get down about our financial situation and lack of home ownership. We're both passionate about our jobs but spent years in grad school and we work in low-paying fields. However, then I remember that there's no rule that says you need to own a house by the time you have a kid. Most people here earn far more than I ever will, but I also see a lot of "we took on too big of a mortgage" or "we're struggling on 200K/year" posts. Your rent is high so maybe buying a house would be a good move for you, but my guess is you are looking in a similar price range to us and without a larger downpayment you may still be facing a large mortgage. There's also the hidden costs of homebuying to consider--all of my friends who own told me they were shocked at how much additional money they spent fixing minor things on the house, painting, and furnishing the place when transitioning from apartment to house.

Based on your numbers, I'd say maybe you should wait 1-2 years before buying. You could rent someplace cheaper, and in a few years the daycare costs will go down slightly as your child moves from infant to toddler. [/quote]

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