‘I really want the privacy of a SFH’: I am torn between renting a more expensive single-family home for privacy or saving money by sticking to an apartment. What should I do?

Hi Money Minder,

Let me lay out our financial deets:

Savings:

$140k cash at a sweet 4.5% interest rate

Retirement: I’ve got $40k in the bank, and my wife’s pension is holding it down

After taxes, retirement, and insurance, the wifey and I are bringing home $9,300 a month.

I’ve got a $11k loan on my ride at 3.99% and a $9k student loan at 3%.

I’m aiming to rack up $160k in savings and clear all my debts in 14 months. Easy peasy.

Then, I’m eyeing a $90k down payment plus closing costs for a home in the $460-480k range. We could jump on it now, but I wanna be debt-free first.

Here’s the sitch. Our lease is up in December. We’re both 25. The landlord’s selling, so we gotta bounce regardless.

I’m thinking about renting a single-family house just to see what it’s like. Yeah, I know utilities will sting, and yard work will be a thing.

But that’s what I’m after. I wanna get a taste of house renting and get my hands dirty with some yard work. I’ve been mansion-apartment-shack my whole life, and I’m craving the privacy of a single-family pad. No shared walls, baby!

Based on my calculations, we can swing a $2200 rent payment instead of $17-1800. Just tell me if I’m being a financial wild child here.

Thanks for the help, Money Minder!

It sounds like you have a clear financial plan in place, which is impressive for your age. Your intention to save 160k liquid and become debt-free in 14 months demonstrates a strong commitment to financial health. Waiting to purchase a home until you have achieved this goal is a wise decision, as it will alleviate potential financial strain and provide you with a more secure foundation for homeownership.

Your desire to experience living in a single-family home before making a long-term commitment is entirely understandable and smart. Renting a SFH will give you a taste of the responsibilities and costs associated with this type of living arrangement. It’s important to factor in anticipated expenses like higher utilities and yard maintenance into your budget when considering the $2200 monthly rent payment. Additionally, having the privacy of a SFH and no shared walls may greatly improve your quality of life.

Make sure to evaluate your current spending and budget carefully to ensure that a $2200 rent payment aligns with your overall financial goals. It may be helpful to create a detailed budget that includes all expenses related to renting a SFH to get a comprehensive view of your financial situation. Taking a pragmatic approach and considering all possible outcomes will set you up for success in transitioning to this new living arrangement.

In conclusion, it’s great that you have a clear vision for your financial future and are being mindful of your decisions. Renting a SFH to understand the lifestyle and responsibilities associated with it is a valuable step before committing to homeownership. Stay focused on your goals, continue to save and eliminate debt, and make informed financial decisions that align with your long-term objectives.