Should I Back Out of New Build Because of Corona ?????

[Stephen Foltin]

Hey all, Hope everyone is staying safe out there. Well, my current situation is I own a condo with my fiancé (wedding pushed back to next year), and in January we decided to purchase a new build Townhouse in South Charlotte (Hadley, Ainslie Downs St.) that is scheduled to be completed end of June. We plan on renting the condo and moving into the townhouse once it is completed. The purchase price is $355,000 and we have already put down $10,000 for down payment (non-refundable). My question is should we go through with the sale? This townhouse is in a development that is toward the end of completion, which started in 2018, 90 or so are completed and are occupied while the remaining 20-30 units are being built. We recently noticed that another townhouse with the exact same stats as ours (4 bedroom 3.5 bath) in the same development is being sold for $320k. So my question is should we back out, as the exact same property only two years older is being sold for 10% less? My current thought is to wait until we get to the appraisal but even then, if it appraises for a little less the builders do not have to come down to the appraisal price. It is only $10k I would be losing and I would actually be saving money if I could get the same house in the same development for 10% less, not to mention the fall that could be coming to the housing market due to Corona. I am kind of undecided on what to do, any thoughts and help is much appreciated! Thank you, Stephen.

[Joe Splitrock]

@Stephen Foltin  

Based on the numbers you shared, you are overpaying for this property by at least $35,000. More importantly, you are spending way more on your personal residence than you need at this point in your life. It is fine to want nice things, but just be clear these are wants, not needs. You are chasing a high end life style. You could alternately invest and pursue financial freedom.  

My advice is walk away from the deal and ask for your money back. Wait six months and you will find better deals. Look for a (used) house that can be a rental in the future or buy a plex and live in one unit as you rent the others for cash flow. 

Of course, I am giving you financial advice. Ask your friends and family and they will probably tell you to buy the new house, which is emotional advice. 

I realize my response is likely to offend you, but please know I am trying to help. Choices you make when you are younger determine your life style when you are older.