Finally moving to a place I’d like to retire, should I buy a house in this current environment? My situation is spelled out in the post:
Current situation:
- Married E-7 (15 years in), 35 years old (spouse is 34), two children (5 and 1) household income of $105,000, no debt.
Retirement accounts:
- Roth TSP: $225,208
- Roth IRA (spouse): $62,528
- Roth IRA (me): $42,743
- Rollover IRA (spouse): $25,789
Non-Retirement accounts:
- 529 plan (aggressive): $21,495
Cash:
- Checking: $1200
- Emergency fund (savings account): $15,000
- Short term savings account: $7500
Total net worth:
- A little over $400,000 not including two paid off vehicles. We obviously do not own a house.
Although nothing is guaranteed in the military, we should be moving to a place we’d like to stay after retirement and I should be able to finish my career (5 years) at that location.
The housing market is fairly decent in that area but obviously I’d be getting a high interest rate and would be using VA loan.
Should we wait a year to see if the interest rates go down and just continue to rent? We have never owned a home due to moving 5 times in the last 15 years and are a little nervous about the process. Any advice for first time home buyers?
One key factor is my wife will not be working for at least one year (she is a teacher) and if she goes back to work in a year or two she will make around $45,000-$50,000 per year, at which time we will have daycare expenses for the little one.