I have set up my newly-updated Save-O-Meters (see right sidebar). Retirement savings now rest at around $11,400 (breaking the five-figure barrier… it’s like the 4-minute mile!). Emergency saving is at $5,600. Down payment is currently ZERO (which is ironic because this blog is supposed to document my journey toward home ownership… well, I never said the journey will be quick & easy).
My parents might be looking to buy a condo. I went to see a place with them – it’s pretty nice: detached condo, recent construction, gated entry, close to main streets, 3 bedrooms, 3 bathrooms, a tiny plot of land in the back where they can plant an herb garden, and a large 2-car garage with storage space. It’s listed for around $650,000, but has been on the market for a while. Mom said they might be able to negotiate it down to $610,000. That’s probably on the high end of their budget, but we’ll see how it goes.
Welcome back, Wanda! You’ve been missed.
Congrats on breaking the 5-figure mark. Now, if I could only break the 4-minute mile mark…Nope, not gonna happen.
Good luck to your parents.
I’ve said it before, but I’m really excited about you focusing your blog on saving up for a down payment in such an expensive real estate market, like I am.
I’m not sure how it works, but in the USA, can you borrow from your retirement money (tax free) without penalty for a “first time home buyer’s plan”?
Wow! I couldn’t imagine having to spend $600k for a condo….I hope to spend around $150k when I save enough for the 20% down payment.
In the US you can withdraw from a Roth IRA (tax free) for a first home purchase. You may also be able to take a loan from your 401(k), but that option will depend on your employer. I don’t think that you can borrow from other types of retirement accounts, like regular IRAs or the government employee plans. Someone please correct me if I’m wrong.
sounds a little pricey. where is it?
I keep having moments of “Very proud” when I receive my bank account statement (25k in savings). And then I realize that even living in the ghetto in the middle of nowhere, California, I have exactly enough to purchase a…nothing. I have what, a 5% downpayment? Poo.
If I weren’t getting free rent, currently, I’d be gone.
Hey! Where can I find the code for those save-o-meters?? Also, congrats on your progress. I’m trying to get on the ball again myself after a very spend-y August. I am so excited for when my 401k breaks 5 figures…which should be in less than a year. Keep up the good work!
I think in the current environment, it’s smart as a buyer to negotiate hard, and stick to the guns.
Dong, I think as a buyer it’s even smarter to have enough money to pay for a house before you even try to buy one. But maybe that’s just me.