Spot The Speculator #61a - "We have friends who recently bought a place because “they didn’t want to waste money on rent”. They put 7% down, and a month later bought a car. Now on a tight budget."

“We have friends who recently bought a place because “they didn’t want to waste money on rent” Even after we told them the pros and cons of renting. They put 7% down, and a month later bought a car.
Dad has decent paying job, mom is stay at home mom, similar household income as my wife, who does not work at the moment, and I.
Originally our friend’s wife told my wife their monthly budget for food was 1200 a month. Which we thought was tight for a family of 3. Turns out we misunderstood, 1200 a month includes utilities, cell phone bills, internet (no cable), and who knows what else.
This was a shocker to us. Sure you can do it, but to have such a tight budget and the majority of money going to your mortgage is it really worth it? What if the dad loses his job?
Sure, some can say if you have our mentality you will never own anything. But before, even if you lost your job, you would probably have a safety net of savings. But with today’s prices, most new families are maxed when they buy in, and have no ability to save anything. All the eggs in one basket.”
- 4SlicesOfCheese VREAA 16 Oct 2011 10:18am