Sunday, March 19, 2017

The $20,000 Down Payment Goal

First, a little history.  Back in 2005, my husband and I purchased our first home as newlyweds, a 2 bedroom, 1 1/2 bath condo.  It is approximately 980 sq. ft. in the wonderful city that I grew up in. Location is great, right next to a wonderful park, close to shopping and restaurants.

Fast forward 12 years and 2 kids later, and we are still living in this same condo.

Three years ago, the condo next door to us went up for sale and we decided to purchase it.  This worked out great for us.  Our condo, being an end unit, only has 1 attached neighbor and we now get to decide who that neighbor is.  As an investment, it's done ok.  Profit wise, we make a little on it but that money goes into our repair fund that covers repairs for both units. So it isn't a huge source of income, but we are building equity and the value of the condos has gone up around $10,000 each from what we paid for them so that's a plus.

Two years ago, I decided we needed a bigger home.  We've remodeled our condo as much as we can to maximize the space we have.  But 980 sq. ft. is just not enough room for our little family. So we saved up a little over $5,000 towards a down payment and planned to tap into the equity on our rental condo for the remainder of the down payment towards the purchase of a bigger condo for our family.

We were so close to putting an offer in but took a step back and realized the condo we were looking at really wasn't for us.  And unfortunately in our area, it's very hard to find a 3 bedroom condo so the pickin's are slim.  We decided to spend the $5,000 we had saved to remodel our bathrooms.  And trust me, they needed it.  The bathrooms were the original bathrooms from when the condos were first built in the 80s and used as apartments.

But the itch is back and the need for a larger home has always been there.  And now we are starting over saving for a down payment.  So far, I've managed to set aside $565 in the last couple of months.

The goal? Save $20,000 for a down payment.  (Only $19,435 to go!  Hey, I'm thinking positive here.)
The deadline? December 2018.
The Plan? Good question.  That's what I need to figure out.  Stay Tuned.

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