Hello, I’m a 23m and I make 80.3k a year good job, no car payment just insurance and my rent is all in all 1452 for a 2b 1b (basement condo). I really can’t decide on what to do. My current place depresses me but it’s a great deal and a house seems essentially unaffordable or a risky investment right now. I’ve seen a place to rent that’s the same size but in a fancy building but around 1750 toured it and it’s good. I just can’t decide, I keep going back to this fishbowl analogy I was told where I should always keep my costs small whenever my income grows. I have really good credit and rent history I could probably take on the extra rent but I’m just questioning my finances. My spending habits are not terrible and I put a good chunk into retirement. Is sucking it up and keeping my deal even possibly negating into a cheaper rent a good choice.
House or renting options
byu/Lost_Statistician_29 inpersonalfinance
Posted by Lost_Statistician_29
4 Comments
Do you have student loan debt? What is your monthly take home pay?
Depends on location on how risky buying is.
Need a lot more info from you to help.
Why do you want to buy a house? Home ownership is extremely expensive.
Do you plan to stay at that home for 10+ years?
What happens if you get married, have kids, etc? What is your plan for that?
Renting comes with flexibility (and no massive surprises expenses) that doesn’t show up on the balance sheet but is a valuable asset nonetheless.
If you just want to know if you can afford a $1750/mo place on your current income and info given, the answer is probabaly yes.
You can afford the more expensive apartment. Whether a nicer apartment is worth the extra cash is really a question of personal priorities. No stranger on the internet can tell you whether you’ll be happier in the new place.