Thread: Should I buy a house when I might only make 44k a year in the future?

Hi,

Right now, my husband and I make about 59k a year. But my job is laying us off in a year, and worse case, we would only make $44k a year. (If I have to take a large pay cut)
The houses we're looking at are 150k at a 4.5% interest rate (Oregon) And the payment would be under $1100 a month. (Including taxes and insurance and all).

We figure that we will immediately build a mother in law suite, so we can rent it as it's own separate apartment, for about $500 rent, which would really lower our payment. Also, with tax deductions, we would get about $13k or more a year back for owning.

But, is it stupid to buy a house when we know I will lose my job in a year or two?

Thanks for answering =)

It is not stupid and you are smart to consider your future income BEFORE you become burdened with a mortgage. Have you filled out a loan application? I'd not spill the beans that you are getting laid off next year. Have the lender base your "borrowing power" on the 44k. Good Luck!

No, you shouldn't buy a job if you're getting laid off. You should be looking for another secure job now then buy a house when you are more comfortable.

If you rent out an apartment, even in your home, you have to pay taxes on the rental income (but there are deductions you can take too). You should consult a tax advisor before doing this. This may even affect taxes paid when you sell the house too.