After month after month of updates we finally closed on our new home on Friday, January 18, 2013. It seems I provided some type of update every 6 or so weeks :
- My House is on the Market in March
- Housing Update in April
- 5 Months Later Housing Update
- December 5th Home Update
- My First Post Written Not Owning my Home
The Finances of My New Home
In my December 5th housing update I provided all the reasons I liked and disliked the home but never really talked about the finances of the home. Readers of this blog vary so some of these numbers are going to seems completely amazing or completely 100% crazy, but they are what they are in the market I live:
- Asking Price $500,000
- Negotiated $485,000 (3% reduction which seemed to be in line with the market)
- Put down 20% as to avoid PMI – I think it is DAMN admirable that The Wife and I were able to do this
- Received a 3.375% 30 Year Fixed – Hell yea!
- Taxes are about $11,000
With homeowner’s insurance my home fixed costs increased from about $2,100/mo to $2,900/mo. A significant increase, but The Wife and I knew that it was coming. While we aren’t house poor as our cash flow can sustain it, the move has absolutely shifted a lot of our assets from liquid to illiquid. I thought my days of trying to horde cash were over…they aren’t. As one could imagine this financial move decimated what was our long term savings/emergency fund. I have a particular number in mind that I would like in cash, but I am not going to stay hyper focused on it. Just save what I can while investing what I want and when I hit the number I’ll stop putting anything into the cash account.
The “only” thing we are doing to the house right now are:
- New Carpets in the Den, 3 bedrooms and basement
- Painting the bedrooms and the den
- Replacing the stove to match the rest of the kitchen
I am pretty sure that when all is said and done my net worth will have decreased dramatically from closing costs, taxes, fees, the above changes which I wouldn’t feel the need to account for in my net worth statement, etc. Obviously, life is more than just a net worth statement just going to be hard starting the new year in such a hole. Notwithstanding the current and short term pain of the dollars and cents I am very happy for The Wife and I. The home is beautiful and something we can grow into and best yet we didn’t get sucked into the whole buying more than we can afford, or buying a project that I knew we would never complete.
Cheers to the end of housing posts!