Why I'm not buying a house right now

I've been in a sad tired mood all morning... so i decided to run some housing perspective numbers based off the govenments California First time home buyers program... (to depress me more)

Assuming you have no debt, Make 43,000.00 a year
They will give you a 30 year fixed mortage at 7.0% interest. Lets say you pay closing costs and a 3% down payment (just the min)
The maximum price you can afford: $178,264.00

• Mortage Payment: 1186, Property Taxes: 186, Hazzard insurance: 45, PMI (cause you put 3% down): 126

Monthly Estimate to own your home: $1,543.00

A Before tax income of 43,000.00 divided by 12 months is $3,583.33 a month.

• Monthly Gross Pay $3,583.33
• Federal Withholding $547.83
• Social Security $222.17
• Medicare $51.96
• California $128.89
• CA SDI $28.67
  
  Net Pay $2,603.81

now lets take that pretty mortage payment, property taxes, etc... out of that new amount. $1,060.81 left lets run the numbers with my budget--- for necessities only and this is for an apartment... not a house...

Groceries (120.00) Laundry (20.00) Water (16.00) Gasoline and car repairs (140) Car insurance (96.00) Electricity (45.00) Cell (55.00) Household (25.00) Fun (50.00)

493.81 left

No savings for emergencies yet, no retirement savings yet... AND NO HOME OWNERS ASSOCIATION DUES!!!!!!! That seems to close to comfort for the average american when HOA's are aroun 200-300 bucks a pop.

Now, lets run my numbers...

Monthly, Come January I should net 2,536.88 A month after taxes, etc (assuming the calculatorI used was right with the state and fed taxes that would come out).

Take out the Mortgage payment (1543.00) and I have 993.88 a month left...

Groceries (120.00) Laundry (20.00) Water (16.00) Gasoline and car repairs (140) Car insurance (96.00) Electricity (45.00) Cell (55.00) Household (25.00) Fun (50.00)

426.88 a month... Throw in a 300 HOA because the only thing I could afford would be a condo with a sell price that low... and i'm down to 126.88 a month. ----No Emergency fund savings, no equake insurance, no monthly retirement savings...

Now I'd have 2 extra paychecks to set aside for retirement -- but not enought to max out a roth mind ya... and yes I would have the option of overtime occassionally... But i'd be one house repair (and yes that would be a fixer upper condo for the price which equals repairs....) from raiding emergency funds.

Now some would be quick to point out the tax perks (like writting off the Interest on the home...) 12,421.11 in the first year alone... which is quiet nice... But i wouldn't see that money until the following year when tax rebate time came around. 126.88 and all the hidden costs of homeownership is NOT enough to swing in on a "deal." Especially when that deal would stop all kinds of retirement saving.

Nope, this gurl is RENTING and saving more money and waiting for 20% DP and a standard 30 year fixed at no more the 5.5% interest WITHOUT buying points... (i could qualify for that easy with the 20% DP). I won't pay PMI.