I've got a guy at work asking pretty much the same questions. Since I have to work with him, I don't advise him not to go forward with his plans, currently looking at buying a $400k house with a 7ish percent mortgage. He's a junior software engineer, similar age. However, hope you don't mind me advising you, same as I would him, to not do it. Obviously hind sight is 20/20. It might all work out fine. Clearly if you were to argue that with rents so high, you may as well buy something, but that doesn't seem to apply to you currently. The other way to go with that is to buy something big and rent out to roommates.
Problem is that you don't know what you don't know. You have to live through these things. Interest rates are very high. Property valuations are very high. A genius would probably sit back on the sidelines waiting for both of those to die down and then make their move. Not too many of us are geniuses, but you could try timing it better.
This guy at work doesn't comprehend closing costs, PMI, etc. He hears the facts, but doesn't grasp the reality. Each time you buy, sell, refinance or decide you might take out a 2nd mortgage, you are hit with those ridiculous closing costs. There is no incentive to "write off" the interest anymore. The standard deduction is too high. Housing is just a living expense, and as others say it will never end what you are spending on your house. (But at least you have control).
At my current age, I am done moving around. A house suits me. You may want to move for greener pastures. Selling is a pain.
Yes, building up your nest egg in BH style is the way to go. Incurring debt, not so much.
Problem is that you don't know what you don't know. You have to live through these things. Interest rates are very high. Property valuations are very high. A genius would probably sit back on the sidelines waiting for both of those to die down and then make their move. Not too many of us are geniuses, but you could try timing it better.
This guy at work doesn't comprehend closing costs, PMI, etc. He hears the facts, but doesn't grasp the reality. Each time you buy, sell, refinance or decide you might take out a 2nd mortgage, you are hit with those ridiculous closing costs. There is no incentive to "write off" the interest anymore. The standard deduction is too high. Housing is just a living expense, and as others say it will never end what you are spending on your house. (But at least you have control).
At my current age, I am done moving around. A house suits me. You may want to move for greener pastures. Selling is a pain.
Yes, building up your nest egg in BH style is the way to go. Incurring debt, not so much.
Statistics: Posted by Dude2 — Tue Aug 13, 2024 5:24 am