Are you down with the down payment? Now that I’m debt free, I have only one objective with my discretionary income. Save it. Even though I’m coming to realize renting isn’t really that bad, I imagine one day Girl Ninja and I would like to buy a house. Being that we probably wont be buying for about 3-5 years, we probably need to have some kind of “down payment” plan written out. If you didn’t already know, I love plans!
Yeah that’s right. One Hundred Thousand Dollars. That’s a lot of freakin money, but with a little discipline and a lot of focus we should be able to reach that goal in the next five or so years.
So why $100,000? Your guess is as good as mine. Probably because it’s a nice clean looking number and substantial enough it will hopefully afford us many options. One thing is for sure, just because we saved $100,000 doesn’t mean we have to put all $100,000 down. Our actual down payment will be based off things like the loans interest rate, price of home, and what stage of life we are in (how many kids we have,condition of our vehicles, how long we plan to stay, etc). Shoot, maybe we will decide to only put down $20K and keep the remaining $80K for important things like flat screen tvs vacations.
Unlike the majority of my other goals, this one is pretty flexible. If we find a great house, in a great spot, for a great price, I won’t have a problem contemplating buying it. Even if we only have $40,000 in the bank.
I love these types of goals because they can ebb and flow with our lifestyle. Heck, who knows? Maybe we will reach the $100,000 threshold and continue lovin’ the flexibility of the renters lifestyle. Maybe that $100K will become $150K or $200K. It’s all about fluidity baby!
How much did you have saved up when you bought your first place? If you haven’t bought a place yet, do you have a goal number? Are you determining your down payment by a fixed $$$ amount or by a percentage? Anyone have no desire to ever own a place because they’d have to give up the flexibility of renting?