Assess My Home Purchase Decision?
- on the verge of buying a house for 545k
- make 70k per year (sole income earner)
- 200k+ credit line
- excellent credit (700+ score)
- absolutely no debts
I will put 300k down. Have some other savings as well (16k in savings, and 25k+ in other investments).
Why did I decide to take up a big mortgage?
- loved the house, it is brand new
- 3100+ sq feet
- in a growing suburb of Toronto
- there are two golf courses being built in the community, one of which is in front of the house and provides a spectacular view (the other is a 5 minute walk away)
- it is surrounded by houses that are 1 mil+ (this house is one of the cheapest ones in the area)
- school nearby, community fitness center being built
So what I want to know is, was this a wise decision? I plan on staying in this house for at least 10 years.
This depends a lot on your life style (wife?, kids?, do you tithe?, love to travel?).
If you don’t spend/waste a lot of money then $245k debt on a home where you have more than 50% equity is perfectly fine.
looks good on paper. Have a local realtor research the area, make sure it is growing in value, not flat or declining.