Currently my spouse and I rent a small apartment. Eventually we'd like to expand the family, and a one bedroom rental won't cut it forever - even if we continue renting we'll be expanding to a detached single family home eventually. In our area the rent ratios work out to about 16, which is under the cut for buying being a better financial decision over the long haul - i. e. I don't think it'd be economically an awful decision to buy (NYT calculator shows 10 years at the current prices and rents for buying to make sense). I've also read enough of the rental propagandists to know that home ownership isn't the best way to grow my money. My reasons for wanting to own are the intangibles: knowing we aren't going to have to move due to a landlord, being able to modify the place to our own liking, and that intangible sense of "this is mine" (even when it's the bank's for a while).
The things we do have:
- Around (at or over) a 30% down payment depending on purchase price, and we won't be under 30%
- Closing costs separate from that fund
- Around 1% of the home value in reserve for emergency repairs separate from those funds
- A six month emergency fund separate
- A fund to replace an ailing car that will probably die before we can save up after this expense
At some point in the year or so after the purchase we plan to have enough saved up to pay down the principal and change our monthly payment somewhat, but not significantly.
So it seems like we've got the financial ducks in a row. We can continue to fully fund our retirement accounts and make the monthly payments (PITI). The only hesitation we have is that we can't make our payments comfortably on one income alone - it'd be over 30% of one income to do so, by just a bit. So neither of us can completely stop working, although the second income does not need to be large.
Are we missing any important financial data about this step? Should we be concerned about job loss (even though no signs of it are imminent for either of us)?