I’m pretty young and don’t think it would be wise for me to buy yet; especially with my credit needing repair. The homes in my area are around $320k to $400k, and my TC is about $150k this year. Wanting to get others thoughts on this and what age they decided to buy. Age: 21 Location: Boston market (live in New Hampshire area currently, looking towards North Andover or Haverhill)
You didn’t tell your age or location. This app is anonymous. Open up
Updated op
First house at 25 in Austin. About 500k. We wanted more space and a nice backyard. We had good credit and 16% down.
Did you get hit with PMI since you didn’t put 20%?
Yes, but it’s only 39$ a month. And we’re overpaying on our principle by $200. Once you hit 20% paid on principle they will take it off. Also we didn’t have to keep our property tax in escrow which saves us some money too. Bought in January for 4.375% rate.
Where the fk are you finding houses for 320k to 400k in boston?
Not in Boston, that’s where I work but about 45 minutes outside the city.
Oh. I see. I would say if you are gonna buy, dont buy old houses the upkeep is gonna kill you
How long do you plan on staying there?
Not sure yet, my family lives down south. I’d say another 3 years or so.
Dont buy if u are just gonna stay for 3 years. Maybe if the house is in a hot zone where u can rent it out very easy
Save at least 20%. Buy in area you can rent it out. If you have to move, you can always have an option to rent it
Fix your credit first.
Owning a house has many hidden costs. The maintenance costs are high, and you’d probably have to spend many weekends fixing something in the house. I wouldn’t buy a house at your age. Invest in other alternative.
Like girls and blows
21 is early, no rush yet. Fix your credit up, pay down any debts, and then invest whatever you have for a down payment already (after building an emergency fund) in something that will at least keep up with inflation and save aggressively. I suggest building a budget for a hypothetical property in your target price range. Take what it would cost you monthly in mortgage/taxes/insurance/maintenance, subtract your current rent, and put *at least* the difference into savings each month. This gets you comfortable with the financial realities of owning a home, and helps you build a bigger down payment and nest egg. Do this for next 3-5 years and you should be in really good shape to buy whenever you decide where you want to be for a while. Don't purchase a home you'll be in for under 5 years, unless you plan to convert it to a rental when you move.
In your 20’s your best investment is in yourself. Masters/executive education, international travels that brings your more cultural knowledge, etc. if you make a commitment with mortgage, you wouldn’t be able to quit a job that you don’t like, or for taking an MBA for example
Don’t buy until you need to e.g. have a daughter who wants her own bathroom. Real estate is not an investment; it is a depreciating asset.
Interesting, I’ve heard the opposite typically but I can understand buying at the top of the market wouldn’t be a good idea. 🤷🏻♂️ Why do you say it’s not an investment?
Bad advice here about appreciation. Renter spotted