tl;dr : My sister wants to buy a condo that is out of her capability. And it is causing pains in the family.
I (31M) have an older sister (33F) who works as a teller in a bank. She makes $2600 a month and take home is 1900. I used to live with my parents but i bought my own place and moved out. We live in a city next to Boston.
She has history of making bad financial decisions, like racking up thousand dollars of credit card debt while living with my parents (now paid off after not paying rent to my parents for a while), and bought a brand-new car instead of a second hand car and not driving it much (8k miles after 3 years). She is bad at planning things in general. She has no savings herself and her reason was, she helps out with the groceries at home and pays rent to my parents. She also shops a lot. Her sole entertainment is to watch TV and shop. The only thing she does in weekends is to shop at costco and various places. She also has emotional issues. She would get upset at a lot of things and start fights with family easily.
My parents have 70k of savings. My parents' rent is 1350 for two beds. I used to live in the living room before i moved out.
I work in software and I make 8000 dollars a month. Take home is 5000.
I bought my own 1-bed condo and moved out. My sister and parents are still renting an apartment. My sister and dad were not happy that i bought 1-bed condo instead of buying a bigger one and live with her and my parents. My reason was, we fight all the time, my parents both fight often themselves. My sister hates my dad and never has a good relationship with him. I never really talk to my sister much because she always ends up fighting with me.
She is single and she said she does not want to find a boyfriend and wants to remain single forever.
During the pandemic, she wants to buy a 2-bed condo with the low interest rates. Of course i objected to the idea. Her take-home is 1900. The condo (or condos in my area) is typically 260k to 280k. She wants to use most of my parents' saving as down payment. And the mortgage payment is 1500 that does not include utilities. The condo has 500 dollars condo management fee (included in the 1500 dollars mortgage payment). So after paying mortgage she has 400 dollars left. She also has a car that is paid off. Her monthly car insurance is 160 dollars after she had an at-fault accident two years ago. So this 400 dollars will be used for food, utility, car insurance, internet, mobile phones, everything.
Her reason to justify buying the condo is, she will live with my parents and my parents are retiring. My parents have 600 dollars social security income a month. The reason it is so low is, they are immigrants and only worked here for a short period of time. And the 600 dollars can help out my sister's mortgage and expenses.
She does not want to get a roommate and rent a place because she hates having a roommate and wants to have a place for herself. And she wants to have her own place when she retires. That is a problem because her income won't support it, or at least in my area.
Since my parents are retiring, my sister will be the sole borrower for the mortgage. She said she talked to a bank that is willing to lend her the 200k. That sounds suspicious because it seems a really high risk mortgage. I asked my bank who i had the mortgage with. The loan officer said she will definitely need a guarantor. And of course i don't want to be her guarantor.
My mom is on my side. We agree that for her income the condo is too high risk for her. I told my mom that i will help with their rent after i pay off my condo and they don't need to worry about it. And my sister will have trouble paying for the mortgage when my parents aren't there to support her. We think my sister would be a lot better off renting a place and getting a roommate.
My sister's reason is, she will be frugal to hell and she really wants her own place.
We are trying to convince her it is a really bad idea. She refuses to listen to any reasoning. Another issue is, my sister has emotion control issues and she has breakdown often. My mother is so scared of her that my mother just wants to do what she wants and give her the savings as down-payment.
I think if she really buys a place i would move to Cali and don't need to deal with them anymore. She for some reasons expects i am never gonna get a girlfriend and start my family. She expects i can bail her out because of my income level.
I seriously doubt if a bank would lend money to her for the condo. But she said she got a per-authorization for it. Although i have never seen it.
Any inputs would he appreciated.
Submitted August 02, 2021 at 03:20PM by pleasantmuscle41 https://ift.tt/3foG4EI
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