Replying to Avatar Laser

If purchasing a house negatively impacts savings, then renting is preferred in order to focus on saving.
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Parallel Structures 5mo ago

So many are mortgage poor. Hard to get out of that. Only buy if it makes sense. It shouldn't require all your savings, nor all your income.

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Laser 5mo ago

IMHO if it threatens more than 15-20% of savings than you can't afford it.

Not in these times.

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Parallel Structures 5mo ago

We had to get creative. Using an interest free private loan for a portion of it. We co-bought.

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Corban 5mo ago

When you say 15-20% of savings, are you referring to the total cost of the house, or some combination of a down payment, renovations, and the resulting monthly payment?

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Laser 5mo ago

My heuristic is house cost + 50% of house cost for improvements / completion of lifestyle goal.

Monthly payment after should be competitive with renting. Ideally better.

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Corban 5mo ago

Gotcha, makes sense to me.